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Jo Causon – chief executive

Jo Causon – chief executive. Customer service - in a class of its own Business Systems (UK) Ltd – annual conference 23 November 2010. introducing the Institute of Customer Service . We are: independent, not-for-profit membership organisation over 300 organisational members

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Jo Causon – chief executive

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  1. Jo Causon – chief executive Customer service - in a class of its own Business Systems (UK) Ltd – annual conference 23 November 2010

  2. introducing the Institute of Customer Service We are: • independent, not-for-profit membership organisation • over 300 organisational members • 70% from private, 30% from public and third sectors • more than 7,000 individual memberships We aim: • to lead customer performance and professionalism • to be the first port of call for all issues around customer service We provide: • advice, research, professional networks, products and services, awards, national occupational standards, continual professional development and conferences • including National Customer Service Week

  3. the renaissance of customer service • customer service a critical element of business performance • a key driver of profit • changing  relationship between organisations and their customers • customers  now hold the power • future of customer service  • changing attitudes of we, the consumer • challenges brought by technology • changing business models • changing employee engagement…

  4. what are the key priorities for customers? • overall quality of product / service provided • friendliness of staff • handling problems and complaints • speed of service • helpfulness of staff • handling enquiries • being treated as a valued customer • competence of staff • ease of doing business with • being kept informed

  5. characteristics of organisations that deliver world class service • deal with problems and queries • deliver on the promise • make it easy to do business with • go the extra mile • continually looking at ways to innovate • create customer strategy, service delivery and the right culture

  6. the role of technology product development product and service delivery customer relationships - social media - visible, instant feedback

  7. about building relationships shift from transactions to relationships move away from one-way mass marketing to customer personalisation, narrow segmentation two-way communications - what products customer would value most at any given time in B-2-B world – focus on maximising value of long-term relationship, not sales

  8. the direct impact of an engaged workforce • 70% of engaged employees have a good understanding of how to meet customer needs as opposed to only 17% of disengaged employees (CIPD) • engaged employees generate 43% more revenue (Hay Group) • engaged employees: 2.7 sick days per year. Disengaged employees: 6.2 (Gallup) • engaged employees are 87% less likely to leave (Corporate Leadership Council)

  9. the direct impact of an engaged workforce • 67% of engaged advocate their organisations; only 3% of the disengaged do (Gallup) • 9 out of 10 of key barriers to successful change, people related (PWC)

  10. why does service matter? • £15.3 bn - the cost of poor customer service to UK economy annually • business abandoned and lost to entire industry - £5.2bn • customer churn and defections - £ 10.1bn • £248 average annual value of each customer relationship lost • 73% of consumers have ended a relationship due to poor customer service • consumers aged 27-43 most likely to switch • one in four people have left a financial services company or utility provider in the last year following poor customer service Source: Genesys – The Cost of Poor Customer Service: September 2009

  11. we have all become more demanding • customers/clients/people more willing to complain - 2001 - 50% people were willing to complain about poor service • 2006 - that figure had risen to 60% • 2010 – now 75% consumers prepared to complain • more sceptical • reputations hard-won but easily lost • ‘generation Y’ discerning, influential consumers – people power • challenge/opportunity of using new technology Principal source: ICS National complaints culture survey 2006

  12. more willing to complain- more able to do so • more disposed to tell others about bad experiences - 81% - 2001 • 89 % - 2006 • 90% - 2010 • more able to do so • growth of social media • as consumers we can draw down information more easily • seek tailored solutions both offline and online • tell the world when something goes wrong – not just our friends • need to look beyond traditional measures of customer satisfaction

  13. why does world class service really matter now? • economic climate • UK a service economy • renaissance for customer service – feedback is immediate and visible • clear ROI benefits • DNA - Impact on culture people and processes • shortage of skills - keeping the best • clear link between performance of individuals, organisations and UK Plc - service is the differentiator

  14. UK customer satisfaction levels

  15. loyalty index

  16. UKCSI: the top performers • John Lewis (88) • Waitrose (88) • Lloyds Pharmacy (86) • SAGA Holidays (86) • Virgin Holidays (85) • Marriott (85) • Marks & Spencer (food) (85) • Boots (84) • First Direct (84) • Marks & Spencer (84)

  17. what are they doing to get these results? • professionalism • commitment to staff • genuinely empowering • listening • building service cultures • engaging and championing • creating customer strategy, service delivery and the right culture

  18. bottom line impact of good customer service • top box customer satisfaction • 2x likely to renew/stay • 3x likely to recommend • 24% higher net profit margin • 71% higher profit per employee

  19. the challenge is to do more with less • increased demands come against the backdrop of a recession • greater stress among the public • falling morale among staff • important we encourage and build customer focus • led from the top • programmes built with a core focus on service • each customer is an individual and needs to be treated as such • key is to help staff make the right judgement each time

  20. lessons learned • customer management is fast becoming a strategic boardroom issue • only sustainable competitive advantage • customer feedback is immediate and highly visible • consumers have the power to shape image as never before • strong service leadership is crucial • greater empowerment and support for staff

  21. Thank youJo CausonInstitute of Customer Service

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