Sunday, 31 August 2014

Is "Pain - Free" The New Excellent?

“Sue them!” I recently advised one of my clients who has a constant complaint about the service levels from his bank. After listening to his latest ‘Agony Aunt’ lamentations that I thought I‘d just about had enough of, I felt that indeed it was time to take action. The bank handles his organization’s account which in my view qualifies him as a priority customer based on the transaction levels and amounts.

In this particular instance the bank’s money wiring system had some ‘technical’ problem that had taken two days to sort out. This had grossly interfered with his ability to wire salaries to his staff in the region. And him being CEO of a company that’s takes pride in honouring payment dates, was loathe to explain to his people that a technical hitch would delay their pay. The only practicable solution necessitated that he and his finance officer, go into the bank, withdraw the entire amount and deposit each staff’s salary individually into their accounts to ensure these were immediately reflected.

Listening to his annoyed proclamations, mulling over the inconvenience of abandoning our strategy session and the thought of the impending exercise that involved him spending a significant amount of time in the banking hall undertaking manual tasks to achieve the desired objective – I was quite appalled. I requested him to compute the man-hours he had already spent following up with the bank and the hours that would be spent in the bank both by himself and his finance officer and to nicely ring that up and send it to the bank with a letter from his lawyer.  All this would have been completed by the automatic click of technology, and is the reason for which he signed up for the automatic salary transfer system.

What for me what the wringer, the straw that broke the camel’s back, was that all this back and forth, discussions being held and his interaction with the bank over this matter was through the bank’s call center. One would have imagined that this kind of malfunction from a bank of high repute would have his phone inundated with calls from the bank manager or some other such important person in the bank’s pecking order apologizing profusely for the problem and seeking to see how best to make good. This call center experience involved during many instances, an auto response informing him that all the call center agents were busy at the time and that they would get to him ‘as soon as possible’.  He’d made several attempts to get through with the calls truncating mid the waiting period. His frustration was palpable.

I wondered out loud to myself and to him – who exactly should be responsible for bearing the costs of these calls? Doesn’t it behoove a service provider who offers a help desk or call center service for clients, to have some software that identifies incoming calls, how long the person has been on hold and the specific customer profile of the caller? This would then enable an auto response for priority level customers that the provider would get back to them and then have an agent actually do so?

In my then very justice seeking and indignation on his behalf demanded that he compute as well the cumulative time he’d spent making calls including the attempted calls to the bank, and the opportunity cost based on other important things he’d have been doing at the time, ring up that bill as well and serve it hot right along with the earlier billing in the letter the lawyer was going to submit.

Why would we as service providers not provide systems and processes that are customer centric and that focus on providing a smooth, hustle free experience for our customers? Customers are very simple people. All they want is quality, consistency and practical solutions for their needs. That’s all. They do not need bells and frills and belly dancers sent to titillate their senses – ok ok once in a while they’d love that too – but not as a typical occurrence daily…..

 Customers stay loyal to organizations who serve up pain free processes. So much so that pain-free is the new ‘excellent’.  We are so used to problems,  used to things that don’t work,  used to false promises and ‘technical  hitches’ such that when what should actually be the norm happens, we record it in our ‘excellent’ rating scale.

So given that the bar isn’t set so far beyond reach in terms of eliciting customer loyalty, doesn’t it follow that we should at the very least ease our customers’ pain? Because soon enough their  pain will be painful enough to have them ‘monetize’ their pain levels and the legal ‘pain’ that will follow  will not be well worth the pain of having not eliminated the original pain in the first place.


Here’s wishing you and your customers a pain- free week ahead J

Wednesday, 6 August 2014

Customer Service Investment - Capex or Opex?

Excellent Customer Service, the much touted ‘must –have’ that every organization desires attributed to them, and every leader irrespective of profession or economic orientation is anxious to have as one of their achieved deliverables, is indeed just that – a ‘must-have’.  But beyond being a nice item on the organization or leadership wish list, what sort of investment are organizations ready and willing to make to transform this dream into reality?

A recent 2013 research study by The Institute of Customer Service in Kenya on ‘The State of Customer Service in Kenya’ reveals that ‘whereas leadership within organizations are cognizant of the need for superior customer service as a brand differentiator, the actual tangible investment in customer service is negligible and in want of corporate commitment in the form of budgets, structures, goals, systems, capabilities and robust assessment methods’.

Where then does customer service investment fall in the finance sheets of an organisation? Who is responsible for the budget creation and implementation of the budget action plans? Who is kept awake at night thinking about the next best way to delight the customer? And most importantly what sort of investment is Customer Service? Does it fall in the Opex budget and form a line entry for operational costs to keep things moving, or does it fall in the Capex budget as a heavy investment required to provide an input into the business for which return on investment will be reaped over time?

Stephen Walden – Senior Head of Consulting and Research at Beyond Philosophy, indicates that the biggest challenge facing the customer service industry is how to link Customer Experience to financial value. The leadership of most organisations demand a demonstration of the return on investment before any customer experience programs pass budget stage or if in place, get implementation approval.

How does one create a distinct equation between a brand’s emotional engagement with customers and an upward spike in the organisation’s bottom line? Is this an achievable KPI that can be tangibly tied to customer experience activities? Whatever one’s line of business, whatever one’s leadership style, whatever sector of the economy an organisation lies, the undeniable common denominator is that customers drive business. And the direct spin off of that, is that happy customers drive business further and faster. Happy customers in this context are customers that are emotionally aligned to the brand and are unshakably loyal to it. Creating this level of emotional engagement demands delivery of delightful customer experiences, having consistent quality of products and services, having the organisation’s ear to the ground to anticipate, meet and exceed customer expectations and most importantly, acknowledging service failure if and when it does happen and instituting make good and service recovery mechanisms diligently. This is the not-so-secret formula to business success.


Does all of the above require proper strategy, planning and execution? Does investment in customer service excellence require assiduous budgeting and resource allocation? If indeed business and personal success is a key objective, then the big debate should revolve around if customer service is an operational cost given its now apparent importance as an ingrained element for every day success, or if it is a capital expenditure, planned and planted to reap sustained benefits over time. I leave this crucial debate to all you professionals. Do let me know the outcome of your discussions.....