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Customer Care - Philosophy and Models
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Greetings!! Hello and welcome to the latest issue of e-Quality
Digest, your guide to educative information. In markets where products
and prices of goods appear similar, what sets your company from
that of your competitor?
The answer is customer care as Leo Burnett quote’s "What
helps people, helps business." But, customer care can only
be a philosophy, never a rigid formula. It is important for the
company to understand how customers see ‘effective service’.
The quality of the customer care rendered by the organisation can
help it stand apart from the competition. This issue of quality
digest details the same. Hope you enjoy reading it!
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"Customer Advocacy and Intimacy:What must be Paid Attention to?"
by
Professor Mohamed Zairi
Juran Chair in TQM
Director of The European Centre for TQM
Dean of The eTQM College in Dubai
It is highly unlikely that the theme on the ‘customer’ will ever be dated or superseded by something else. What seems to be apparent is that we are stressing on the same things that have been mentioned over the last twenty years or so. Customer satisfaction, for instance, is still valid and pertinent, so is the area of customer complaints, customer loyalty, retention, etc. It is however important to remember that we are covering the same points of emphasis but we are covering new ground. As we continue to move into the era of knowledge-based value added, the meaning of the aforementioned areas will change calling for different degrees of emphasis.
Most texts cover the major critical factors of customer care, customer centricity, customer loyalty and retention, pretty well. For instance, it is accepted widely that the following factors are core pre-requisites for modern competitiveness:
- Defining customers at the heart of corporate strategy – This is really what was found to make a difference between World Class organisations and the rest. When a strategy is defined in terms of customer needs and wants, its execution will produce the right results which invariably are measured in terms of customer impact;
- Developing a customer centric culture – The customer has got to resonate in all employees minds and has to be an integrate value with everything else that shape the organisational culture. Serving customers must be understood, accepted and driven from a behavioural mindset and not as an imposition;
- Designing a customer oriented work climate – The concept of teamwork is very powerful if it is driven by common goals and shared values. Teams create extraordinary contributions and much higher impact on the customer if the driving force is customer needs and wants;
- Managing Through Process Orientation – Processes by definition has to start with the Voice of the Customer. The various tasks and activities that ensue will be merely a translation of various customer needs and wants. Processes represent the best means by which customer satisfaction can be achieved. They represent the disciplined approach that can guarantee, quality, consistency, agility and effectiveness;
- Delivering The Right Results – The previous points on strategy, customer-based objectives and process orientation will, together, call for a measurement approach that tracks value, optimisation and impact on the customer. It is often the case that process-based work will have a blend of measurement (leading and lagging) and a balanced perspective.
The aforementioned synthesis is, as stated, previously, a well-argued recipe, which was found to lead to successful outcomes. Most organisations that enjoy a leadership position in their respective competitive markets, will strongly argue that they practice widely and systematically the various points covered hitherto. What may not be apparent from the aforementioned analysis are however aspects that deal with the ‘heart’ and ‘soul’ factors, which really can make the difference in a modern business context. These have been referred to broadly as: Advocacy & Intimacy Factors.
Advocacy Factors
Advocacy factors are the key driving forces that ensure that the customer is and will remain the ‘raison d’etre’ of the organisation. These can be classified as: Commitment, concurrence, culture, communication, consistency, care.
- Commitment – Senior Management must ensure that the real purpose of the organisations’ they lead must be the customer. They have to demonstrate constancy of purpose and lead with vision and a clear direction;
- Concurrence – Creating a consensus through corporate alignment and goal congruence is an important task for senior executives, in order to mobilise the various energies and so as to impact positively on the customer;
- Culture – Shaping the right culture that unites and integrates is a must. This can be done through the strong and continuous emphasis on values and their articulation at all levels;
- Communication – At the heart of customer advocacy is effective communication. There are so many different approaches, formal and informal that can remind people on the importance of the customer;
- Consistency – Here, operational excellence will play a key role. Consistency delivers customer satisfaction and prevents customer complaints. It is the fluctuations in service delivery and variations from expectation that often cause problems;
- Care – Care is the proof that the organisation is serious about building a long-term relationship with the customer. External advocacy is often a strong signal about the intent, discipline, and commitment of the organisation to serve its customers and to keep them happy and satisfied.
Intimacy Factors
Intimacy factors on the other hand, are those factors that work beyond satisfaction. They are those that deal with intrinsic aspects that mean a lot to the customer not just from the ‘physical aspects’ of the existing relationship. Intimacy factors deal with the emotional side of the customer.
Intimacy factors cover aspects, which one could refer to as ‘pull’ instead of ‘push’ aspects. These may be related to the brand itself, the way the customer perceives the relationship. Some of the aspects that can support in the delivery of customer intimacy, include:
- Empathy – Standard relationships, which are based on transactions, will not reach this level of closeness. Empathy can only become viable is there is true integration with customers thoughts, needs, wants, perceptions, plans and feelings;
- Enlightenment – This is the true measure of closeness and common understanding. When we know precisely who the customer really is and what they want in specific terms, what they value most and what will excite them;
- Emotional Quality – Work on a quality dimension that goes beyond the physical attributes of products and services and create an attachment to the ‘brand’ by fulfilling a new set of needs, which are the ones that deliver loyalty and retention.
In summary, the customer remains as important as he ever was and we will continue to place emphasis on the same language, covering satisfaction, complaints resolution, loyalty and retention etc. The only difference however is that the new dimensions to bear in mind, for a total customer centric approach are factors which relate to intimacy and advocacy.
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A decade ago, customer care was essentially viewed as
a “bolt-on” department. It was a corporate apologist
not included in product development, manufacturing, operations
or sales. In the past, whenever a customer was dissatisfied
with a product or a service and complained of the same, the
feedback was shunted into the complaints process, perhaps
never to surface again.
Customer-Care for survival
In present scenario, where products and prices of goods appear
similar, what sets your company apart from that of your competitor?
Un-debatably, it is superior quality and effective customer
care and service. Any company that neglects this important
aspect will face irate customers and invite their wrath. Over
a period of time, the business may even have to close down.
The Global Network, in its report, Preparing Now For the
Next Decade: A Preview of Emerging Trends, has identified
customer service as the Number 1 problem. Such is the role
of customer care in business survival. The rule for continued
existence is simple, care for your customers or perish.
Few Philosophies of Customer-Care/Service
Dr Christopher Lovelock, a distinguished Professor
of Service Management at Harvard Business School uses an equation
to explain customer service:
"PRODUCT + SERVICE = COMPETITIVE
ADVANTAGE"
(The ‘Service’ in the equation refers to customer
service and care)
Tom Peter (considered a leading management
guru by the Fortune, The Economist and The Business
Week), reports that customers are not influenced by the
price of a product or a service anymore. Low- cost suppliers
aren't the most competitive companies. Customer care has by
far surpassed both price and image marketing.
A Customer Focus Survey conducted by the Forum Corporation
(a worldwide leader in corporate learning, has assisted many
fortune 1000 clients to combat their problems) states that
customer service includes the entire experience of a customer
with a company. Research conducted by Texas A&M University,
the forum has found that service quality includes five factors:
- Reliability – It implies providing
the customer pleasing, well mannered and informed service
consistently.
- Assurance -
The technique to build confidence in the customer about
the representative’s ability and competence to take
the required action.
- Empathy –
The caring attitude of self-identification with another
person’s feelings and situation.
- Responsiveness – It refers to the
“will-do” attitude and enthusiasm to go that
extra mile, resulting in effective customer care.
- Tangibles – This aspect of customer
care deals with the customer’s image of the organisation
and its representatives.
The research also found that the most important factors for
customer satisfaction were empathy, reliability, responsiveness
and assurance, in that order. Tangible factors and cost didn't
affect service quality and customer perception much.
Interaction – The building Blocks of Customer-Care
Model
When it comes to customer care, interaction is the key word.
Customer satisfaction depends on the exchanges between an
organisation and its customers. The communications can be
in the form of queries, feedback, or complaints. Excellent
customer-care representatives are essential for providing
good customer-care experience to the customers.
Training representatives on the art of evoking the feeling
that they are always gaining something valuable in customers
is vital. The organisation can prepare a list of probable
queries, and ways to handle them. It is also essential to
empower sales reps with tools necessary to solve certain problems
instantly.
A company has to thus understand how customers see ‘effective
service’. It helps them better to understand customers
and build business around them. For customers, valuable care
consists of:
- Valuable use of time : Simple product
presentation followed by logical answers to customer queries
will ensure that customers visit the company again.
- Taking responsibility : The customer-care
rep should be good enough to accept failure (in product
or service) and should tactfully arrive at an answer that
would satisfy the customer.
- Understanding customer
requirements : The organisation’s representative
should be quick to understand the customer needs, and be
aware of financial and other constraints of customers.
- Problem-solving abilities : The customer
care rep should be tactful and customer-friendly in handling
any contingency that could arise before or after the sale.
He should solve problems such that the customers would be
satisfied.
Customer-Care Model
Quality On-Line, Inc, has developed a successful customer
care model. This model establishes a blueprint to efficiently
handle the various interactions that take place between the
customer and the organisation. The model also seeks to continuously
improve the organisation so as to provide enhanced customer
care to its customers.
The process consists of four steps: Concern
– Address – Refine
– Evaluate.
- Concern : The foremost principle to be
adopted while interacting with the customer is to listen
and understand the underlying issues. A complete awareness
and appropriate definition of the query is essential. The
customer care rep should display a genuine empathy for customer
concerns.
- Address
: The next step is to address and resolve the customer
concerns. Clear internal and external communication is
required for this purpose. Customer’s suggestions
and expectations should be considered for effective interaction.
- Refine : After satisfactory customer
interaction, the information and outcome derived from such
communications should be reviewed and analysed. Any scope
for improvement in the organisation’s product/service/process
should be refined. This would ensure an environment of continuous
improvement of customer service in the organisation.
- Evaluate :
A thorough appraisal and evaluation of the organisation’s
customer care efforts is conducted periodically. Continuous
improvement schemes are introduced to perk-up the customer’s
interaction experiences. This enables the organisation
to render “caring” care to the organisation’s
most valuable assets, its customers.
The quality of the customer service that the organisation
renders distinguishes it from its competition. As relationships
are more valuable than price and delivery standards, fostering
them by providing effective customer care is critical. A strong
customer relationship also helps resolve problems in a friendly-environment
thus positively impacting the business.
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As a customer, calling any business today - be it
an insurer, a financial service agent, or an airline service,
odds are that you would be directed to the company’s
website or automated telephonic assistance and asked to fend
for yourself. Where is Customer Care?
The lost Era of “High Touch” Philosophy
Customer Care! Is the era of care long gone? The fascination
of organisations with customer care management seems to be
disappearing steadily and rapidly. What has happened to the
emphasis on service? The lost art of customer care needs to
be re-discovered, and soon.
One cannot imagine care without the human touch. Machines
and technology however seem to have replaced the human element
in care management. What was once considered as “High
Touch” philosophy has transformed itself into “High
Tech” philosophy.
Customers care – Not extinct, yet
The art of customer care has not been completely wiped out.
Some organisations still recognise the benefits and payback
of the “human touch” caring attitude. They exhibit
the customer satisfaction and profitability resulting from
following customer-care viewpoints. These organisations set
examples and lessons for the rest of the corporate world to
emulate.
Lessons
Strategies for effective and efficient customer-care
:
- Build an unbeatable bundle of products and services.
Take a cue from Amazon.com: Want to keep/retain
your customers? Give them what they want without leaving
your premises. The company may have started selling books, but
today, surfers stay in online store for greeting cards music,
videos, tools, toys, software, and with the zShops' initiative,
shop in as many small, independently-owned stores as the
company can cram into cyberspace.
- Give
your customers an incentive to come back. Be it
a gift, a discount, special financing, or a chance to win what's
behind Curtain #1, customers come back for incentives. McDonald's
cashed in on the Beanie Baby craze by offering a series
of specially designed Teenie Beanies with its Happy Meals
for kids. The promotion generated so much business that
the burger giant ran it repeatedly.
- Empower your people; back up initiative.
At the Ritz-Carlton every employee is informally
allotted USD 2000 to solve specific customer complaints.
After a goof-up in a room-service order, waiters can make
amends by serving a dessert – compliments of
the management. Not only does this lighten the mood of the
diners, but also wins the hotel goodwill!
- Stand behind your
work and reap the rewards of trust. If your customers
don't trust you, they won't come back. If they do, you can
survive the rough seas. There is only one maker of refillable
lighters left in the U.S., the Zippo Manufacturing Company.
What makes Zippo so special? The simple, unequivocal lifetime
warranty: "It works or we fix it free."
- Support good works and your customers will support
you. Doing well by doing good is a powerful loyalty builder.
- Show your appreciation to every
customer. Take the time to appreciate customers
who give you business. Thoughtfulness counts!
- Know your trophy customers and treat them best
of all. If the Pareto Principle runs true at your
company, you will find that the top 20% of your customers
contribute 80% of sales. Japan's Oura Oil treated
its trophy customers as service station royalty. Customers
who purchase over 5,000 gallons of gas per year get a special
club card entitling them to plenty of extra services, such
as free windshield wiper fluid, whenever they refuel.
- Make it easier to
buy from you than your competitor. UPS
realised 'convenience was king' in a busy world. It created
an elegant overnight package for customers, like mortgage
lenders, who sent lots of documents that required signatures
and return shipping. The company made a reusable envelope,
so the recipient could simply sign the papers and ship
them back in the same package - via UPS, of course.
- Go and get 'em. The Country Christmas
Tree Farm in Sebastopol, CA, knew that it was tough
to earn the loyalty of customers. This was especially
so of customers who only came in once every year, so it
sent a 'thank you' note with a twist. Buy your Xmas
tree from them and a thank you note arrives the following
Thanksgiving…along with details about this year's
tree.
- Find
out what your customers want and give it to them.
LISTEN! Worcester, MA's Fallon Clinic began focusing on
customer complaints, and found out that many of them centred
on the department's doctors. Interpersonal skills training
for the staff resulted in reducing patient complaint levels
by almost two-thirds.
- Infuse words with warmth. A phrase that
is grilled into trainees at the Ritz-Carlton epitomises
the hotel’s image: ‘Elegance without
warmth is arrogance’. When a member of the customer
service team speaks to a customer over the phone, he
first greets him, albeit effusively. In most cases, he feigns
warmth that customers are quick to discern! Genuine
warmth establishes a person, as one who can be trusted to
deliver on a promise.
- Become a customer service champion.
What do Nordstrom, Southwest Airlines,
and Ritz-Carleton Hotels have in common? They are
famous for building their businesses. Their customers come
first! Consumers naturally flock to them. CEOs who are customer
service champs lead these companies. They recognise and
reward employees that cater to customers; and, they brag
about their accomplishments. That’s the catch; you
should that too.
Despite all its flaws and not being able to get there, somewhere
down the line, customer care still reigns supreme. Marketers
are trying tooth and nail to combat technological flaws that
hinder excellent customer care. They seem to rightly remember
that they need to serve customers better and faster!
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| Useful
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What is Customer Care?
This file guides the reader into the world of customer care.
Subjects included are, what is customer care, how to understand
the customers, customer service levels, using customer care
to increase profitability, and dealing with customer complaints.
http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1074301416
Basics of customer service
The best practice to evaluate the customer care feelings is
described in the file. The attributes of empathy, responsiveness,
reliability, assurance and tangibles are considered as the
most vital customer-service qualities.
http://www.krconsulting.com/pdf_archives/pdf/customer%20service%20basics.pdf
All about customer care and relations
The article describes the importance of customer care in any
organisation. It also focuses on the methods which positive
customer experience to the customers and resulting in enhanced
relations.
http://www.bizhelp24.com/marketing/customer_relations_care_1.shtml
How customer centric is your organisation?
This is an interactive means to find out to the extent of customer focus the organisation has achieved. It represents customer centricity approach through a baseball model. It includes a questionnaire to analyse the current stage of centricity in the organisation.
http://www.round.co.uk/cci/default.cfm?fuseaction=survey.surveyHome
Unleashing the supremacy of customer care
How to incorporate the essence of customer-care philosophy
is dealt with in this document. How the organisation can create
an environment and feeling of “care” is summarised.
The role of employees in providing the caring service to the
customers is emphasised on.
http://www.crm2day.com/library/EpFkFVVFZuKdZBsyBR.php
A Glimpse of Customer Care Model in Thanksgiving Dinner
It is an exciting comparison between the thanksgiving dinner
and the customer-care model. The similarity between preparing
for the turkey feast and rendering excellent customer-care
is evident in the article.
http://www.customercarecoach.com/public/thanksgiving.asp
A shining example of excellent customer care
It is a series of three articles, describing Ritz-Carlton’s
paragon position in customer service. The Ritz values are
embodied in an array of principles that include the Credo,
Motto, the Employee Promise, and the 20 Basics.
http://www.expertmagazine.com/artman/publish/article_390.shtml
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| Books
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Strategic
Customer Care: An Evolutionary Approach to Increasing Customer
Value
by Stanley A. Brown
Book Description :
How to successfully apply the principles of customer care
in any company. Most organisations essence unleash power today
recognise the importance of improving customer care—the
need to go beyond traditional customer service and truly manage
customers as assets—but only about 6% apply its principles
effectively. This book fully explains the three stages in
the evolution of customer care.
The
Customer Care and Contact Center Handbook
by Garry Schultz
Book Description :
Customer satisfaction is essential to the success of any and
all businesses. At a time in which technological advances,
cultural changes, and escalating customer expectations have
rendered post-sale customer support more demanding than ever,
the need for exemplary post-sale services is greater than
ever. Ensuring all customer interactions result in satisfaction
is the core target of the customer contact centre.
The
Service Edge: 101 Companies That Profit from Customer Care
by Ron Zemke, Dick Schaaf
Book Description :
Management consultant Zemke and journalist Schaaf have produced
a unique list of the best service organisations in the country.
Before describing their choices, they elaborate upon the fundamental
principles underlying distinctive service. They then present
their selections for the "Service 101" in categories
by industry, ranging from travel, hotels, and health care
to manufacturing, entertainment, and public service.
Customer Care: How to Create an Effective Customer Focus
by Sarah Cook
Book Description :
Demonstrates how to develop a good customer service focus
that is tailored to today's savvy consumers. A guide to developing
a customer-care ethos and motivating staff, gaining commitment,
and ensuring successful results of customer service.
Best
Practices in Customer Service
by Ron Zemke, John A. Woods
Book Description :
A one-stop resource that brings together the wisdom of dozens
of customer service experts who explain & demonstrate
how to implement the best practices available in customer
service.
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Complaints Resolution– the missing piece of the jigsaw
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