Four Customer Service Strategies: Which One is for You?


Customer service strategies cover the gamut from seeing customers as a necessary evil to the concept on which this book is based, branded customer service. Summarized in table 1 are four strategic customer service options.

Table 1: Customer service strategies

STRATEGY

SERVICE

ORGANIZATIONAL BEHAVIOR

TARGETED OUTCOMES

LIKELY RESULTS

CUSTOMER SERVICE AS A COST

Seen as not necessary, extraneous

Seen as a short-term transaction

Policy: Don't trust either customers or staff

Rules: Make no exceptions

Approach: Take care of the organization first, customers second

Training: Extremely limited; technical or product training when necessary

Management: Short-term focus; quick fixes for all problems

Highest possible margins for each transaction

Customers buy on price and availability

Staff stay based on salary levels

Engagement with company is very low

Organization operates as a commodity

CUSTOMER SERVICE AS A NECESSITY

Required because competitors are offering it

Seen as a cost, rather than a marketing investment

Policy: Be nice to customers

Rules: Limited empowerment of staff

Approach: Do what is necessary to keep the customers but no more

Training: Generic customer training for frontline staff; "smile training"

Management: Short-term focus; reaction about customer problems

Avoid noticeable customer dissatisfaction

Satisfied but not loyal customers

Aim for zero filing of complaints

Fewer lost customers

Repeat business based on prices, availability, and customer inertia

Engagement with company is low

Organization operates as a commodity

CUSTOMER SERVICE AS A COMPETITIVE ADVANTAGE

Seen as a strategic measure to develop business

Policy: Exceed customer expectations

Rules: Staff empowered to take care of customers

Approach: Delight, knock socks off, create raving fans, customers for a lifetime

Training: Packaged training with titles simitar to the ones above

Management: Longer-term focus; direct involvement with customer service issues

Delighted customers

High customer survey scores

Bonuses awarded based on survey scores

Enhanced reputation for service

Staff more likely to stay

High levels of repeat business if product is solid

Engagement with company is positive

CUSTOMER SERVICE AS AN ESSENTIAL LIVING EXPRESSION OF THE BRAND

Seen as a vital aspect of the organization

Seen as the brand in action

Policy: Every touch point reflects the brand

Rules: Brand promise reflected in internal policies and procedures

Approach: Service delivery that is on-brand

Training: Tailored brand education for everyone

Management: Long-term focus; management involved in every phase of on-brand service

Brand is integrated into total organizational culture

Aim for reinforcement of brand messages among customers and staff

High percentage of engaged customers who become brand advocates

Engaged and empowered staff; feel like they own the brand

Customers feel emotional connection to company

Increased brand equity; higher profits

Why is it that more companies don't implement a complete branded service strategy? Lack of awareness is certainly a factor for many. However, part of the explanation is that creating an environment where on-brand service is offered to customers requires managers to authentically value and respect their service providers. Frankly, this respect isn't always present. A branded approach toward service must also acknowledge and value the dynamic, human exchange that is the essence of an interaction between customers and service providers. They would like to believe that their service strategy is at least at a competitive level. But their implementation in terms of how they treat their own staff is at a "cost" level. They fool themselves. But the public isn't fooled.

Another reason more companies do not implement a branded service strategy is that many service providers see their interaction with customers as a battle. If you listen to people within organizations talk about their customers, you hear name-calling, see rule implementation that demonstrates a lack of trust, or experience the fear many companies have precisely because they know customers are a necessity. As a result, they don't fully implement strategies based on creating cooperation between customers and staff by delivering what has been promised. They don't understand that this is the most direct way to win trust, support, and loyalty.

But probably the most realistic answer for many is that the phone keeps ringing and people get distracted. They are simply too busy handling day-to-day operational requirements of their business to engage in a branded service strategy that requires time and attention. Branding your customer service starts with a conscious decision to pursue this service strategy, and then it requires ongoing attention. It isn't done accidentally.




Branded Customer Service(c) The New Competitive Edge
Branded Customer Service: The New Competitive Edge
ISBN: 1576752984
EAN: 2147483647
Year: 2006
Pages: 134

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