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Capture
Market Share with Seamless Service
The
American Customer Service Index recently released fourth quarter results.
The good news is the index is at its highest overall level since 1995.
Does this mean that the focus on customers is finally successful? Only if
you think a score of 74 out of a possible 100 is acceptable. At best, it
is a C grade; at worst, it is a C minus.
One
would think that the billions of dollars spent on customer service
initiatives from customer relationship management (CRM) to loyalty
programs would result in a much higher grade. The primary problem is that
companies are addressing service issues from their perspective. They
should be focused on understanding and fulfilling their customers’ needs
and wants.
Admittedly, it is much easier to seek pricing and technology solutions
than it is to identify and resolve service issues. Low price leaders
capture market share quickly. They also lose it unless they can continue
to offer low prices or convince customers that there is another reason to
remain loyal. Technology promises immediate resolution of service
challenges. Sometimes the cure is worse than the disease.
For
example, customers complain that it takes too long to receive their
orders. Instead of seeking an internal solution by identifying and
eliminating constraints, companies offer the customer real-time order
status information. The only time that the order status matters to the
customer is when the company is not fulfilling their promise.
Customers want seamless service. They want to place an order and know that
it will arrive when (or before) promised. If an order is delayed, they
want to be notified as quickly as possible. They do not want to remember
that the order was due two days ago, log on to the website and navigate to
an order status report.
Tomorrow’s market share belongs to the companies that offer seamless
service. Ironically, improving service often reduces costs and increases
productivity. Some tips to get you started:
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Identify the worst customer service issue in your company and work to
eliminate it. Then move to the next issue and continue until you have
seamless service.
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Always utilize internal resources before seeking external solutions. It
will empower your employees, improve your service and reduce your costs.
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Strive for consistency in all areas of your business. Start with
consistency between marketing and operations. This means that the
fulfillment will always meet or exceed the promise.
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Set
realistic goals and reward your team when they are met. Goals give
purpose; rewards encourage repeat performance.
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Think from your customers’ perspective when implementing solutions.
Inspiring customers to act is challenging. (Ask any marketing director.)
If any solution requires an increase in customers’ actions, then seek
alternatives. The objective is to minimize customers’ involvement in the
service process.
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