The Hill Group The Hill Group
 
 
   

External Service Quality Standards: A key to keeping your customers and winning those of your competitors.

         Steve Ezar, Consultant

Well done is better than well said.
-Benjamin Franklin
 

As Mr. Franklin articulates, actions do speak louder than words.  In the world of customer service it is critical how the customer is treated throughout their shopping experience, not the intent behind the company’s quality slogan.  The challenge becomes how to transform the customer service strategy into exceptional customer service.  

A mechanism to ingrain the desired customer service behavior is through implementing a standardization process that distills the company’s customer service values into specific actions for all employees to internalize.  Standardizing the customer service process provides employees with a clear understanding of expectations, and it also provides more macro-level benefits to the organization such as:  

  • Branding Opportunities
  • Cost Savings
  • Competitiveness

Branding Opportunities  

At first glance it may seem to be a large leap from the customer service department to the marketing department and how can a customer service standard affect company/product branding?  It is not as far of a leap as you think!  

For example, two market leaders in very different sectors that base their corporate branding on customer service are Nordstroms and Disney.  Nordstrom’s prides itself on their employee’s zealot-like drive for outstanding customer service.  Nordstrom’s management has established a standard set of procedure on how to interact with customers including the sales person coming from behind the counter and thanking the customer for shopping at Nordstroms as they are handed their purchases.  This seemingly small detail could make the difference in brand recognition between Nordstroms and other retailers, enabling Nordstrom to position themselves and their prices at a premium level.  

Disney requires extensive employee training to understand “the Disney Way” of providing a consistent guest experience.  Disney training is so extensive that the “actors” or employees must stay in character the entire time they are in the public view, ensuring that they do not diminish the fantasy that is created.  This emersion into the Disney culture instills on the “actors” that they must create a unique experience for the park guests, which leaves them looking forward to their next trip to Disney World.  

A customer’s experience is growing more important and marketers are leveraging that importance as a way to drive the attention of consumers to their brand.  However, if a company is going to undertake a customer-focused brand strategy then there must be a system in place that assures delivery of that promised level of quality.  It is the standardization of that process that enables the organization to rally around a single set of customer-focused actions that contribute to a competitive advantage.  

Cost Savings  

External service quality standards not only benefit an organization from a branding perspective, but they also contribute to the company’s bottom line.   A standards approach can reduce a company’s cost through customer retention, process efficiencies, and reduced training and education costs.  

The common-knowledge approach to sales and marketing is that it is “cheaper to keep a customer than it is to get a new one” is fundamental to why a consistent, high quality customer experience is critical.  If a customer receives that consistency with every interaction the probability increases that they will become a recurring customer.  The assurance that the experience will be consistent is based on the foundational values and actions that are embedded into the customer service standard.  

Process efficiencies drive lower cost per transaction and are developed over time as the best practices become evident and are integrated into the customer service standard.  As customer satisfaction increases, the number of customer complaints that require attention will decrease, further reducing the cost of non-value added activities. 

Training and education costs will be reduced through standardization of the customer service process.  When a proven process is implemented and documented in a company’s standard the cost of training a new employee is minimized due to efficiencies in the training process and stability of the customer service process.  The standard imparts a certain level of employee interchangeability, providing a common level of training and performance expectations.  

Competitiveness  

In an increasingly competitive market, companies in all sectors have to leverage every corporate competency to maintain and preferably grow market share.  The hyper-competitiveness of a global market makes it difficult to compete on price or even product quality alone, shifting the advantage to the company whose customers have the best experience.  

Many companies who transplant their customer service organization overseas have been faced with this issue of balancing cost effectiveness and customer service quality.  Organizations that correctly manage the quality of an overseas customer service department will receive the market benefit of repeat customers and customers defecting from competitors.  The key to retaining a repeatable process is through effective training in which both the training system and the customer service process are developed with a standardization methodology.  

The Process Drives the Results  

A customer’s experience needs to be good, but also requires consistency.  The organization’s service quality cannot depend on the luck of hiring a person with a pension for customer service or the chance that an unhappy customer happens to talk to a good manager.   It needs to rest on a proven system that guarantees an expected level of quality on a consistent basis.  There will always be the stars that provide over and above service, but it is the standards-driven consistency that will keep customers satisfied.  Remember, a low price may get a customer in the door, but their experience will bring them back.

For additional information, please feel free to email me at sezar@hillgroupinc.com.


Insight and Innovation Home

These materials have been prepared for educational and information purposes only. They are not consulting advice or opinions on any specific matters. Transmission of the information is not intended to create, and receipt does not constitute, a consultant-client relationship between The Hill Group, Inc. and any recipient of this material. Readers should not act upon this information without seeking professional advice.