1. excellence
customer service
The Official Journal of the Customer Service Institute of Australia
Australian issue # 33
APRIL 08
CSIA- Australia’s Peak Customer Service Association.
Enrol in
Australia’s
only Certified
Customer Service
Manager Course.
Q&A with
Peter Thomas
Head of Customer Care
Nokia Australia
Letter from
Kevin Rudd MP,
Prime Minister
of Australia
Q&A with Mina Karpouzas
at Roses Only
Book Review:
Human Sigma
2. Welcome to the 33rd
edition of Customer Service Excellence!
Featured on this month’s edition of Customer Service Excellence is Peter
Thomas, Head of Customer Care for Nokia Australia. Nokia Care has recently
been certified to the International Customer Service Standard (ICSS). Read
about how Nokia Care’s rigorous mystery shopping program, Nokia Academy
and employee incentive programs have led to its service success!
This issue also features the new Prime Minister’s letter supporting the
Australian Service Excellence Awards. Don’t miss your chance to be a part of
this prestigious event.
Also in the edition is an article that features a study from Dr. Rita Di Mascio of
the University of NSW investigating the wide range of interpretations among
customer service employees.
As always, we seek and welcome your feedback — please email any
contributions or ideas to info@csia.com.au. If you are interested in reviewing a
book and being our guest book reviewer of the month for one of our upcoming
magazines, please let us know.
Happy reading!
Contents
The Customer Service Institute of Australia was established in 1997 to serve the needs of all Australians who work in customer service. Today
it is our nation’s peak customer service body and secretariat for the International Council of Customer Service Organisations. ICSSO is an
international collective of organisations promoting service excellence through the International Customer Service Standard certification program
and the International Service Excellence Awards.
Our members include CEO’s, business owners, government employees and of course customer service professionals. High quality customer
service is universally regarded as imperative for long term business success. To enhance customer service in your organisation join the CSIA.
We are driven by and committed to the development of people, systems and standards to improve customer service.
The CSIA is a not-for-profit company limited by guarantee.
Art Director
Tiffany Mehnert
Editor
Christine Churchill
Contact CSIA
info@csia.com.au
www.csia.com.au
(02) 9386 4477
02
06
10
13
17
21
Letter from Kevin Rudd MP,
Prime Minister of Australia
Q&A with Peter Thomas
Head of Customer Care, Nokia Australia
Q&A with Mina Karpouzas at Roses Only
The Multiple Meanings of Customer Service
BOOK REVIEW: Human Sigma
Customer Caring in the Age of Technology
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1 Briefly describe your position and
role in the company.
My role is Head of Customer Care for Nokia
Australia. Primary responsibility is the
provision of post sales service and support for
Nokia customers in Australia. This includes
assisting consumers to get the most out of
their Nokia device and also to provide
accessible and hassle free repair services
should a Nokia device encounter any
problems. It is vitally important that I ensure
the money invested by Nokia in Customer
Care service delivery is well directed and
provides maximum value in terms of the
customer experience. Nokia recognises that
happy customers are by and large loyal
customers – a well directed Customer Care
investment can be a very profitable investment
medium to long term.
2 How does Nokia
Care use mystery
shopping? How has it
helped you improve your delivery of
service to your customers?
Our Mystery Shopping program is an integral
part of our Customer Service offering. We
want to understand what our customers see,
what they feel and what they hear – we want
to know about their experience so we can
continuously improve our service delivery.
Peter Thomas
Head of Customer Care
Nokia Australia
Q&Awith Nokia Australia’s
Peter Thomas
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When developing the question and observation
set used by the mystery shoppers, we wanted
to encompass all of our standards and
procedures that we have set for our front line
Customer Service team members as well as
gauge how our service delivery is perceived
through the customers’ eyes.
By encouraging and incentivising our team
members to strive for a high Mystery Shop
score, front line personnel naturally maximize
their energy and passion towards every single
‘moment of truth’ interaction.
Since the implementation of the Mystery
Shopper program last year, we have seen a
marked increase in customer satisfaction,
throughout the various assessment channels
that we use.
3What training and development
programs exist to drive customer
service?
All personnel have access to the Nokia Care
Academy, an online development resource,
which aims to demystify the Nokia Care
strategic identity.
Regular training is provided to Nokia Care
Centre branch managers under a continuous
development program which not only focuses
to their customer service skills development
but also to their development as managers
and leaders of a team.
Similarly, Customer Service and Technical
personnel receive regular online and
classroom style training targeting key skills
development. Nokia provides regular new
product introduction and technology training
to ensure employees are always equipped
with the knowledge they need to serve even
the most demanding customer.
There are also well established relationships
between Nokia Care Centre employees and
members of the Nokia Retail Team. Through
those relationships, issue resolution for Nokia
retail partners is a coordinated approach and
the Nokia Care Centre employees also have
access to an accessible knowledge resource
which is critical in such a fast passed
technology environment.
4What management techniques are
used, describe the best aspects of
employee relations and the managerial
style of the company?
Services at all Nokia Care Centres are
delivered by Nokia’s strategic partner,
Fone Care. Fone Care operates exclusively
for Nokia and is therefore able to benefit
from Nokia’s broad resources in the areas
of personnel management, training and
development.
One aspect of personnel management which
has the greatest impact is the employee
incentive programs. All personnel, both
Q&A WITH PETER THOMAS …continued
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technical and non-technical are incentivised
to outperform against challenging targets
derived from Nokia business objectives.
Team members receive continuous
communications on the progress of the
business via daily Support Office Bulletins
which are the primary communication resource.
The management style of the company is
relaxed and open. Whilst there are guidelines
and procedures in place to ensure efficient
running of the business, our team are
encouraged to innovate and try new ideas
to delight or surprise customers.
5Has the workforce been involved in
developing strategies for success?
What areas were identified by
employees to improve the company’s
operations? Is the workforce committed
to excellence?
u All employees were engaged in the
development of the charter.
u In May, senior management from Nokia
and Fone Care will embark on a national
Roadshow to share the vision for the future
and seek feedback and input from Nokia Care
Centre team members.
u Nokia Care’s certification to the
International Customer Service Standard was
very early in the piece communicated as a
collective goal which each and every
individual within the business could influence
and support in some way. Team members
were immediately motivated by such a
tangible and achievable goal for the business.
u Inclusion of regional managers in
review meetings between Nokia and Fone
Care – provide ground level feedback
and perspective on decisions regarding
direction and process changes that will
impact centre teams
6Can you explain Nokia Care’s new
Plus 1 – Connectivity role? Why
did Nokia Care feel this role was
necessary? How do you think this will
improve service?
Feedback from customers via various
channels identified the need for a higher level
Q&A WITH PETER THOMAS …continued
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of data and connectivity support to be offered.
Customers also wanted that support to be in
person rather than over the phone. As a result,
the Connectivity role was established to
extend the level of support provided already
within our Nokia Care Centres.
Care team members with a higher than
average understanding of mobile connectivity
and technology were identified and trained to
act as the main points of contact for highly
technical customer issues.
Initially scoped to offer training and support
for Nokia PC-Suite related issues, the role
has now expanded to include everything
from data backup support, Bluetooth support
and Wi-Fi connectivity right down to simple
menu navigation. We have now expanded
into offering one-on-one appointments, and
will soon be launching evening training
sessions for customers who want to learn
more about the features and capabilities
of their Nokia device.
7How does Nokia Care recognise
and reward in relation to Customer
Service?
We have a number of awards that we present
to our employees throughout the year, with
prizes and certification sent out to the team
member. Team members are also recognised
via mention in daily Bulletins and various
events throughout the year. Awards are
achieved by scoring well on a Mystery Shop,
by colleague nominations or by receiving
positive feedback from our customers.
8What systems and processes
exist to promote ongoing
Customer Service improvement
across Nokia Care?
The mindset of Nokia Care’s Customer
Service is that we need to be constantly
improving to remain a leader and innovator
in our industry.
Every single piece of feedback we receive
from Customers and the Care Team is used
in scoping our processes and procedures.
By using efficient communication channels
to disseminate information from the central
Support Office to the Nokia Care Centres,
we can ensure a consistent nation-wide
commitment and improvement to the highest
levels Customer Service.
It is also critically important that Nokia Care’s
front line touchpoints have a cooperative
relationship. Much time and effort is spent
developing relationships and sharing
information between Nokia Care Centre teams
and the team at the Nokia Careline.
Very key to customer delight is the
empowerment of front line personnel to
resolve issues. The Nokia Care Centre team
are fully empowered to make decisions at
that critical “moment of truth”.
Q&A WITH PETER THOMAS …continued
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It’s that time again, where the top organisations
in Australia are competing to achieve one of
the coveted Australian Service Excellence
Awards and a shot at becoming the Best of
the Best 2007/08.
The National Australian Service Excellence
Awards dinner is one of the most prestigious
industry events and attended by industry
leaders from across the country. This event is
an excellent opportunity for attendees to rub
shoulders with the top organisations and leaders
in the industry. Not to mention it is the perfect
time for winners to showcase their newly
acquired trophies and success!
This year’s application and submission
deadline is 31st May, 2008. Don’t wait to get
your submission started! Start today!
The awards are ‘strongly supported’ by
Australia’s new Prime Minister, the Honourable
Kevin Rudd MP. The Prime Minister believes that
‘in a tough and competitive global economy,
service excellence is critical for Australia’s future
competitiveness and success’ and the
important role the awards and the Customer
Service Institute of Australia play in ‘recognising
the efforts of many talented customer service
individuals and organisations’.
2007/2008 Australian
Service Excellence Awards
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The Customer Service Institute of Australia recently received an Australian Service
Excellence Awards message from Prime Minister Kevin Rudd. For many years, the former
Prime Minister John Howard had supported the Australian Service Excellence Awards and
congratulated nominated individuals and organisations for their commitment to service
excellence.
CSIA is very proud to receive such recognition on behalf of our members from the highest
office in the land and believes the Prime Minister sending us this message so early in his
first term demonstrates an ongoing commitment from the Australian government to
Service Excellence.
CSIA works very hard to gain visibility for its work amongst state and federal government
and have been delighted by the bi-partisan support we have received from state and
federal governments over the last eleven years.
We thank the Prime Minister for his message and wish him and his government all the
best for a successful term in office.
Prime Minister Rudd sends message of
Congratulations to CSIA Award nominees!
A Tradition of Prime
Ministerial Support
In 2001, the then Prime Minister John
Howard demonstrated his support for
Service Excellence in Australia and the
Customer Service Institute of Australia’s
Australian Service Excellence Awards.
This support reinforced CSIA’s position
as Australia’s peak Customer Service
body and provided significant
recognition of the tremendous efforts
of Australia’s Customer Focused
individuals and organisations.
CSIA works very hard to gain visibility
for its work amongst state and federal
government and have been delighted
by the bi-partisan support we have
received from state and federal
governments over the last eleven years.
MESSAGE: AUSTRALIAN SERVICE EXCELLENCE AWARDS
I commend the Customer Service Institute of Australia for organising the
Australian Service Excellence Awards.
Excellence in the provision of customer service is critical to the success of
Australian business in the global trading environment and, therefore, to the
continued reputation and prosperity of the nation as a whole.
Through showcasing organisations and individuals that have demonstrated
excellence in the realm of customer service, the Awards serve an important
role in promoting the highest standards of professionalism and responsiveness
within the Australian business community.
I congratulate those organisations that have been nominated for recognition
in the Awards and applaud each of those Australian enterprises striving for
customer service excellence.
John Howard
PRIME MINISTER
CANBERRA
9. CUSTOMER SERVICE EXCELLENCE
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PRIME MINISTER
CANBERRA
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ABOUT THE AWARDS
The CSIA Australian Service Excellence
Awards showcase achievement in Customer
Service. Reaching the finals and winning
an award illustrates the high standards of
management, training and commitment
to excellence within those organisations.
Customer Service is an essential factor in
maintaining an organisation’s competitive
edge in the marketplace. Many organisations
are placing greater emphasis on developing a
customer service culture and making it a
strategic priority.
State-based Awards are conducted in New
South Wales/ACT, Victoria, Queensland, South
Australia/Tasmania and Western Australia.
State winners in each category automatically
qualify for the National Awards program. The
criteria for the Australian Service Excellence
Awards is based on the International
Customer Service Standard (ICSS), which
provides a comprehensive and practical
framework to assist organisations to
consistently deliver high levels of service.
AIM OF THE AWARDS
u To recognise excellence, best practice
and innovation in customer service and to
highlight their importance in today’s business
climate.
u To promote customer service as a
profession and to improve the level of its
practitioners’ professionalism through
assessment, accred-itation, certification and
recognition. Thus improving the pride,
motivation and self-esteem of customer
service professionals.
u To promote the International Customer
Service Standard (including customer
charters), which will help organisations
develop and sustain a customer ethos
through improve-ments to the design,
delivery, quality and effectiveness of customer
service strategies, policies and systems.
u To improve knowledge of the components
of customer service excellence.
For additional information about this year’s awards or the International Customer Service
Standard (ICSS) simply contact CSIA on (02) 9386 4477 or email us at info@csia.com.au.
2007/2008 Australian Service Excellence Awards
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QWhat is your current role at
Roses Only?
I recently took on the role of National Call
Centre Manager, heading the call centre in
our Sydney office.
I have a team of 13 Consultants, which also
grows to 30 consultants during our peak
periods. I also have a Team Leader,
Supervisor, Internet Consultants, dispatch
officer and indirect control of the production
and our fleet of contract drivers.
My responsibility involves leading, managing,
coaching, motivating and more importantly
be an advocate in continuous improvement
strategies that can improve our service
offering to our customers, both internal
and external.
QHow long have you been in Customer
Service?
Being the best really matters to me, which
is why I have over 15years of experience in
the field of managing and leading customer
service centres, for a variety of industry
leaders.
I have “service” running through my blood,
therefore I enjoy working with people in
instilling “a customer comes first” strategy.
Our staff play a very critical role in the
success of a business therefore involving
them in the key decision process is important
as they ultimately make it happen.
Customers are our livelihood therefore every
business should be constantly looking at way
to improve the experience and the key touch
points of their organisation.
We have our own call centre customer motto
and this is defined as follows:
“the call is in our hands, therefore we
have the power to make that experience
the best one”.
QWhy did you decide to enroll in the
Certified Customer Service Manager
course (CCSM) / Diploma of Business?
I looked at a number of courses prior to the
CCSM and there was nothing that provided
the level of insight.
The CCSM qualification included a very broad
insight into all key areas of responsibility of
that of a Customer Service Manager.
It was also flexible and allowed me to work
at my own pace, therefore enabling me to
complete this diploma in under 12 months.
The information was also practical and real
which enabled one to impart with more
Q&A with
Mina Karpouzas
at Roses Only
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Q&A…continued
knowledge and perhaps a different look into
how things can be viewed.
QDo you feel that the CCSM course
was valuable?
Absolutely valuable. The CCSM course is an
accredited course.
Companies whom I have closely worked
with have regarded this as an essential
qualification for undertaking the role, coupled
with my 15 years of experience gave me more
recognition.
QHow did the CCSM course
improve your skills as a Customer
Service Leader?
A good leader should always look at ways to
improve themselves.
The CCSM qualification is unique in that it
looks at providing a better experience on
every aspect of the business and how to
further improve and empower your people in
every department of your organisation. It is
a must for every aspiring Customer Service
Manager or Manager who hasn’t had that
formal training.
QHas having this qualification assisted
in the progression of your customer
service career?
I am finally recognised as a qualified service
professional thanks to the CCSM qualification.
The role which I have today, which heads the
national call centre and operations of Roses
Only, has made this possible.
I am now looking at ways to further my
education but the CCSM has certainly made
this possible for both my career and for my
personal element.
QWould you recommend the CCSM
course to others?
Roses Only will be venturing into
Accreditation and training packages for
frontline and the CCSM course will be chosen
for my supervisors and team leaders.
I have no hesitation in referring this course
to other organisations whom I have close
contact with.
I am a big believer in that your return on
investment is your people and every
improvement you make should encompass
the customer and the way in which the
experience can be improved.
The CCSM qualification is unique in that it looks at providing
a better experience on every aspect of the business and
how to further improve and empower your people in every
department of your organisation.
The Certified Customer Service Manager (CCSM) program includes a workbook, lectures,
assignments and an assessment. The successful completion of the initial course leads to the
awarding of the CCSM (Level I) and a nationally accredited Certificate IV in Frontline
Management, Customer Contact. Graduates can progress, as Mina did, to the CCSM
(Advanced) and receive a Diploma of Business under the Australian Qualifications Framework.
13. 10 years and going strong
A Grand History
of service excellence
CSIA Celebrate 10 years as
Australia’s Leading Customer
Service Body!
Some Organisations
talk about excellence
in customer service.
CSIA Members prove it!
If you want to be sure your organisation is delivering on its’ service promise
and promote your commitment to service excellence, contact CSIA
www.csia.com.au, info@csia.com.au or phone 02 9386 4477.
Limited
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MULTIPLE
MEANINGSOF CUSTOMER SERVICE
THE
WHAT DO FRONTLINE STAFF THINK ‘CUSTOMER SERVICE’ MEANS?
A study by Dr Rita Di Mascio, of the University of NSW, has found a surprisingly
wide range of interpretations among customer service employees.
BY MIKE JACOBSON
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D
Dr Di Mascio’s study was conducted in two
phases. The first phase involved in-depth
interviews, ranging from 40-60 minutes, with
30 frontline employees from a variety of retail
industries (eg. fast food, clothing, electrical
appliances, footwear). Participants were
asked what ‘customer service’ and
‘competent customer service representative’
meant to them.
Dr Di Mascio says that the participants’
responses about their understanding of
customer service could be divided into three
distinct categories: a ‘win-win’ view, in which
the employee formed a mutually beneficial
relationship with the customer based on
problem-solving; an ‘efficiency’ view, involving
giving customers what they want, efficiently
and courteously; and a ‘means’ view in which
customer service was a means to an end,
where the ‘end’ was an immediate objective,
such as a sales quota.
A mobile phone retailer with a ‘win-win’ view
of customer service responded: “Customer
service is all about resolving customer needs.
Having said that, there’s always one or two of
those customers that you think there’s no way
in the world you can help. But at the end of
the day, good customer service means you’re
going one step further for the customer. So
you look into it a bit deeper, find out what’s
behind what they’re asking, and hopefully find
a solution to make that customer happy. This
way they know they can trust you to look after
them, not take advantage of them. You can
start to get a friendship relationship going,
which hopefully brings more business down
the track.”
A café worker with an ‘efficiency’ view of
customer service said: “Customer service is
serving customers as quick as we can,
because customers don’t want to wait in a
long queue. We just want to serve them
whatever they ask for quickly. But we still
have to be nice to them, despite the fact that
we’re run off our feet. For example, when
they’re ordering coffee we can’t say ‘hey, you
– it’s ready’. Instead, when they order we take
down their names, and when their order’s
ready we call out their name and say ‘your
coffee – or whatever – is ready’. It’s more civil
this way because we’re using their name. We
get to know them, too.”
A category gift store employee in the ‘means’
category, said: “Customer service means
satisfying enough of their needs to make a
sale. That’s all you want – a sale – because
it’s impossible to satisfy all of their needs.”
Dr Di Mascio says that the three views of
customer service also varied in their
perceptions of the main task while providing
customer service; the role of the service
provider and customer; and how the quality of
service was assessed.
“Service providers with a ‘win-win’ view saw
their task as establishing an atmosphere in
which they could find out what customers
actually need, thereby solving customers’
‘real’ problems. They perceived themselves as
resources that customers could use to solve
their problems, not being customer ‘slaves’
but needing customer respect to establish a
satisfying relationship.
“They saw customers as unique, each with
different needs, and being able to make their
own decisions when given the right
information. These providers thought that
their customers were the best judges of
service quality.
“Conversely, service providers with a ‘means’
view saw their task as managing customers
and making customers think they are friends.
This is related to seeing customers as
‘malleable’, and that service providers can
influence their behavior. These providers
THE MULTIPLE MEANINGS OF CUSTOMER SERVICE…continued
Universal ‘one size fits all’
training programs might
be disseminating definitions
of customer service that
could be inappropriate for
some business types.
Dr Rita Di Mascio
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grouped customers into categories requiring
different service approaches. They saw
themselves like actors, able to invoke different
ways of relating to these different groups of
customers.
“They judged customer service as good when
the service provider was able to achieve his/
her objectives by influencing the customer.”
“Finally, ‘efficiency’ category service providers
saw their task as ensuring that company
procedures were always followed in word and
action, irrespective of customer behavior.
Consequently, they were prepared to tolerate
rude customers because they are ‘The
Customer’. Another point of difference was
that they saw all customers as wanting the
same style of service (eg. same degree of
politeness). They saw themselves as having to
hide real feelings, such as anger, and being of
most use to customers when they could
answer their questions.
“These providers thought that good customer
service was achieved by following customer
procedures to make customers happy.”
Dr Di Mascio says that the second phase of
the study verified the three views of customer
service in a quantitative survey of 346 retail
customer service representatives. This survey
also asked respondents for their gender and
length of experience working in customer
service; the industry they worked in; whether
they had sales quotas to meet; and
perceptions of their own competence and
customer orientation.
She says that this data showed:
u ‘means’ category respondents were most
likely to have sales quotas to meet;
u in order of employee competence, the
categories were ranked ‘win-win’ (most),
‘means’ and ‘efficiency’;
u in order of customer orientation, the order
was ‘win-win’, ‘efficiency’ and ‘means’.
Dr Di Mascio says that her study has
ramifications for customer service employee
recruiting.
“Different businesses have different ways of
relating to customers. For instance, fast food
outlet customers generally want their food to
be served as quickly as possible. In that
context, customer service means giving
customers what they want efficiently and
courteously, so frontline staff in this industry
should have an ‘efficiency’ view of customer
service. People with a ‘win-win’ view are likely
to become frustrated and leave.
“A ‘win-win’ view of customer service is more
appropriate for personal banking staff, for
instance. They need to establish relationships
with customers, and suggest products to
solve their customers’ problems.”
Dr Di Mascio adds that her study also raises
staff training issues.
“Some training programs for sales and service
staff teach step-by-step processes to achieve
customer service excellence, or ways to get
customers to say ‘yes’, irrespective of the
type of business. Universal ‘one size fits all’
training programs might be disseminating
views of customer service that could be
inappropriate for some business types.
“Worse, naturally competent customer service
staff (ie. those with a ‘win-win’ definition) who
are compelled by their employers to attend
such training courses may actually become
de-skilled.”
The findings of Dr Di Mascio’s study were
published in a research paper, “Whose
version of customer service am I getting?”,
which was presented at the Academy of
Marketing Science Conference in Florida, USA.
Dr Rita Di Mascio is a lecturer in Marketing at the University of NSW. She researches issues
related to service management. She can be contacted at r.dimascio@unsw.edu.au.
THE MULTIPLE MEANINGS OF CUSTOMER SERVICE…continued
17. The Customer Service Institute of Australia
is currently taking applications for its two day
Certified Customer Service Manager Course
(CCSM). Some additional course work is
required.
The CSIA has worked with leading
organisations to develop a training,
assessment and certification program leading
to Australia’s first and only formal nationally
recognised “Certified Customer Service
Manager” designation.
Organisations can now benefit from qualified
service professionals.
The course includes a workbook and a two
day workshop followed by an assessment.
By meeting Government criteria certain
candidates may attract incentives of up
to $4,000.
For more information
Phone: 02 9386 4477
info@csia.com.au
www.csia.com.au
Ser
vice Mana
ger
Cert
ified Custo
mer
CSIA
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Like it or not the Digital world
is here to stay. The wonderful world of
technology is impacting every area of our lives
personal and business. Internet usage is
doubling every 100 days! Technology has
sped up time, shortened distance, and
connected us globally in real time in a way
never before possible.
Technology in the business-to-business
sector is giving us the opportunities to provide
value like speed, convenience, information,
two-way dialog to our customers and
prospects alike in a manner that is effective
and efficient. Customers are letting us know
that, in many cases, they prefer self-service!
Many are actually delighted that they can now
track their own packages, book their own
airline tickets, and configure their own
customized computer systems. The customer
is empowered to finally get it their way, when
and how and where they want it. Many are fed
up with the poor service they have received in
the past and now take charge of the service
themselves — a trend that portends danger if
we don’t discover how we can understand
these customers and give them what they
want before our competitors do. And, then,
keep them engaged and loyal. It’s a tall order.
We are all on untested ground and have no
proven models to follow (although the early
arrival of Amazon.com seemed to set the
standards for many.) Used well, today’s
technology will broaden our ability to get
closer and stay closer to our customers, and
build a bridge of knowledge and understanding.
Used poorly (“For the accounting department
dial one, for the productions department dial
two, for sales dial three”) it will build walls that
will push our customers right into the arms of
our competitors.
CUSTOMER CARING
IN THE
Age of
Technology
BY JOANNA BRANDI
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While many think of technology only as
“internet,” the technologies our businesses
use to touch or alienate our customers
include database, telephony, EDI, bar
coding, point of sale systems, and of course,
internet and extranet applications like e-mail
and websites.
A few of my columns put forth some ideas
on how to employ your technology to get
closer to your customers and provide the
personalized, customized, “high touch” level
of service that is most likely to engender
loyalty in today’s rapidly changing world.
(Sorry — no guarantees here — your
customer is changing every day.)
Since most businesses, small and large,
employ some form of database to manage
their customers and prospects, I will begin
with some ideas on using your database to
get closer to your customer. Herewith a few
of those ideas:
Celebrate. While most people suggest that
capturing and remembering birthdays is a
good idea (I do too) so few people actually
do it. Why not remember your customer with
a more significant date each year — like the
anniversary of the day you started doing
business together. Record the date in your
database and celebrate the relationship with
a card, a call, a gift.
Be specific. The emerging SOHO market
has very different needs then corporate
America. How might you fill them?
(Sometimes the toughest part of leaving a
corporate job is that you can’t call the IS
department for help any more!) What value-
add support systems can you provide for your
small office, home office business clients?
What needs do they have that others don’t —
pay close attention to this emerging sector
and step in to fill unfilled needs.
Identify the role. Decision Maker,
Influencer, Buyer, Specifier — in B-T-B a
person often has many roles, depending on
the product they are buying. Can you design
your database to be flexible enough to
understand the particular role one places in
the purchasing process? Once you do that,
direct your communications to the values and
benefits that matter to that person in the role
they are playing.
Engage the customer. See the web
in combination with your database as a tool
to get even closer. Those companies that
are offering a private web site, or client-only
sites have the opportunity to capture a lot
of information on what is really important
to specific customers. Let the customers
know that this is one of the benefits of their
interacting with you. You understand more
about them and will be able to serve them
better. BTB clients understand the capture of
information and are willing to provide it, if they
know how you are going to use it. Be up-front
and clear about how you will use the client’s
info, and their e-mail addresses. Be sure to
give the client an option to “opt-out” of your
marketing too. It’s a must in our privacy-
concerned times.
CUSTOMER CARING…continued
Can you design your database
to be flexible enough to understand
the particular role one places
in the purchasing process?
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Customer directed marketing is
now possible. Ask how often and how
people want to be contacted — let customers
update their own profiles and let them direct
you. Today’s customers want to have more
control over their relationship with their
suppliers, and they want only that information
that is relevant.
Think “behavior.” What behaviors can
you track with your database that will be
helpful in the future? Get out of thinking only
about transactional information and think
behavioral characteristics. (For instance, I like
to buy things on sale. There are some
catalogs I will never buy from — unless of
course they offer me a sale — why don’t they
see that?)
I put forth my opinion that technology, used
well, broadens our ability to get closer, stay
closer and build loyalty with customers. It
gives us the opportunity to build a bridge
of knowledge and understanding. But, when
we use it poorly it can build walls that push
our customers right into the arms of our
competitors. Witness your own behavior when
one of those automated answer systems tells
you that the wait is 31 minutes after you’ ve
have already been through three sets of
automated choices! So, if bridges are what
you are looking to build, read on.
Continuing the discussion of things you can
do to build your relationship through better
use of your database, I will start with an idea
I call Hot Buttons.
Customers have different buying
motivations. Some people (or whole
companies) must have the newest technology
first, these are the early adapters. Others have
a deep need for security and never stray far
from the brand leader (remember the old
saying No one ever got fired for buying IBM.)
Others need to feel they are smart and need
to know they have made the intelligent
choice. Others may want the more popular
choice. Either way it helps to put your
customers hot buttons in the database so
everyone who touches them has an
opportunity to sell the motivation that matters,
that is, as long as you provide it.
Red Alert. Has your customer ever
complained or voiced a strong concern? Ever
had a problem? How was it resolved and how
quickly? Statistics still bear out the truth that
a customer whose problem is solved on the
spot is very likely to continue to do business
with you again (95% to be exact). So make
sure you have the recovery systems in place
to solve problems. Then go a step further and
make sure the relationship stays fixed.
Cataloger Brad Williams of Garnet Hill tracks
all his customers that have had problems
and follows up on each and every one of them
to make sure the problem was solved
satisfactorily. He then tags the record in the
database, so staff will remember to take extra
CUSTOMER CARING…continued
Today’s customers want to have more
control over their relationship with their
suppliers, and they want only that
information that is relevant.
22. CUSTOMER SERVICE EXCELLENCE
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★★★★
It was only a matter of time before someone
coined the phrase ‘Human Sigma’ as the next
breakthrough that will lead to an
organisation’s success. I was not sure what to
expect when purchased this book however, I
was pleasantly surprised with what I read. For
those who are good with people and are also
good people ‘managers’, much of what is
revealed in this book is not surprising. The
surprising thing; however, is the amount of
research and data that was completed that
supports the idea that engaged employees
are the key to building and maintaining
exceptional customer relationships.
Exceptional customer relationships lead to
what the authors refer to as ‘fully engaged
customers’. And ‘fully engaged customers’
spend more money. Heaps more money.
Human Sigma’s approach to measuring
customer ‘satisfaction’ is similar to that of Fred
Reichheld’s Net Promoter (see The Ultimate
Question book review in the February 2008
edition of Customer Service Excellence)
measurement ‘system’; asking if your customer
is likely to recommend your organisation to
others (i.e. are they an ‘advocate’?).
Fleming and Asplund argue that, while
Reichheld was on the right track, he simply
did not take the question to the next level;
that level being WHY the customer
recommends your organisation. To put it in
their words,
‘... a single item advocacy metric doesn’t tell
you why customers recommend a company.
As a result, it doesn’t give you the intelligence
you need to manage customer touchpionts to
increase the number of these advocates.’
This, of course, makes sense but, one would
wonder, ‘isn’t knowing they will recommend
the organisation enough information?’.
After much research, Fleming and Asplund
found that, in fact, it is not enough. Their
results indicated that there are three types
of advocates:
1) Non-advocates – ‘less than extremely
likely to recommend’
2) Rational advocates – ‘extremely likely to
recommend but lack a strong emotional bond’
3) Passionate advocates – ‘extremely likely to
recommend and have forged a strong
emotional bond’
It is probably clear from the listing that
your preference would be to have passionate
advocates. But why? Certainly one would
want rational advocates as well as passionate
advocates – both segments indicated their
likeliness to recommend the company to others.
‘emotional advocates delivered significantly
enhanced business outcomes when
compared to their rational counterparts, both
Book Review
Human Sigma
By John H Fleming Ph.D. and John Asplund
Review By Christine Churchill
23. CUSTOMER SERVICE EXCELLENCE
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22
in share of assets and in the net new assets
they invest with the company. Surprisingly,
rational advocates did not differ from the non-
advocates on these key financial measures’
Whilst I expected there to be more spend from
the passionate advocates, the twist was in the
outcome that rational advocates did not differ
from non-advocates. This shows, very strongly,
that the emotional connection and relationships
with customers is of the utmost importance
and should have a significantly higher
emphasis placed on them than, I believe, we
are currently seeing in most organisations.
The way these relationships can form,
develop and grow over time is by ensuring
that team members within the company are
engaged in their role. To actually walk the talk
is to back the statement most organisations
cling to ‘our people are our most valuable
asset’. It certainly sounds like the right thing
to say, but often, it is not reflected in the way
companies are managed. The almighty dollar
and productivity are Numero Uno.
It seems however, that through employee
engagement, dollars will come in at a steadier
and faster pace and that productivity will
increase with an engaged workforce. In fact,
‘...the growth rate of high-engagement
companies was 2.6 times the growth rate of
the low-engagement companies’.
Of course engaged employees sound great,
especially given the current workforce
challenges. It is suggested that there are four
core principals of employee engagement and
those are:
u Manage by outcomes not behaviours
u Liberate don’t legislate
u Engagement is for everyone
u All politics is local (manage engagement
locally – don’t dictate it from the top down)
Once your employees are engaged, they can
build customer relationships and engage your
customers as well. That’s right; customer
engagement was also something that was
measured. Fleming and Asplund break
customer engagement level down into four
groups: fully engaged, engaged, not engaged
and actively disengaged). I was blown away
by the statistics that indicated that ‘customers
who are fully engaged represent an average
23% premium in terms of share of wallet,
profitability ,revenue, and relationship growth
than the average customer’.
It is always good to remember that customers
are ‘people first and customers second’
therefore, emotions (especially pride and
passion) will enter into their buying decision. If
strong emotional attachments are formed and
forged with a company, your can be certain
that many of your customers will become fully
engaged and will increase their spend and will
be one of your company’s largest advocates.
During a Gallup poll conducted in 2000,
it was revealed that there are four dimensions
to a customer’s emotional attachment to a
company:
1) Confidence
2) Integrity
3) Pride
4) Passion
How can you achieve all four of these
emotional touchpoints with a customer? Mess
up. That’s right. It’s all about service recovery.
If there is an area to work on and focus on
with your team, it’s ensuring your organisation’s
service recovery is second to none.
I am certainly not saying that you should
intentionally ‘mess up’, as that would put your
customer’s confidence in your organisation at
risk but, when you do have an opportunity to
recover, do it well!
One of the best examples from the book to
reflect the power of exceptional service
recovery is
‘...a large group of US retail banking
customers, 26% of those who had not
Book Review…continued
24. CUSTOMER SERVICE EXCELLENCE
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recently had a problem were fully engaged
with the bank. But among those customers
who had experienced a problem and were
extremely satisfied with the way the bank
handled it, 51% were not fully engaged with
the bank.’
It just goes to show that a complaint really
can become a gift, leading to exceptional
service recovery by an engaged employee,
which in turn strengthens the emotional bond
between the customer and the organisation,
leading to a fully engaged customer, leading
to Numero Uno – that almighty dollar.
Overall, I thought this book was well done and
took many notes. I would have liked to have
seen more around the actual measurement
tools and implementation. (that’s why it is only
received 4 stars) Human Sigma reassured,
through statistically significant survey results,
that consumers are all emotional spenders
and that we, as organisations and customer
service leaders, must ensure we form
relationships with our customers and to treat
those relationships like gold.
Christine Churchill is an
Executive Director of the
Customer Service Institute of
Australia. She is a graduate of
the University of Delaware
holding a Bachelors in
Business Administration
(Marketing). Christine has over fifteen years
experience in customer service, and her
passion lies in the people; training and
development for all levels of an organisation
helping individuals become the best they can
be for themselves and their organisation.
Book Review…continued
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