Business systems (uk) ltd – annual conference 2010, jo causon
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Transcript of Business systems (uk) ltd – annual conference 2010, jo causon
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Institute of Customer Service
Customer service - in a class of its own
Business Systems (UK) Ltd – annual conference 23 November 2010
Jo Causon – chief executive
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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
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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…
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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
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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
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• product development
• product and service delivery
• customer relationships- social media- visible, instant feedback
the role of technology
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• 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
about building relationships
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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)
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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)
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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
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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
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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
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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
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UK customer satisfaction levels
75.6
80.280.280.0
79.377.477.2
76.775.3
72.372.272.1
70.069.6
77.777.276.9
75.3
50 55 60 65 70 75 80 85 90 95 100
UKCSI
Retail (food)Services
Retail (non-food)Tourism
AutomotiveFinance (insurance)
LeisureFinance (banks)
TransportTelecommunications
Public Services (local)Public Services (national)
Utilities
Northern IrelandScotland
WalesEngland
Jul-10Jan-10
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loyalty index
76.2
84.583.9
79.779.1
77.877.2
76.174.4
73.873.072.8
71.766.1
79.678.0
77.175.8
50 55 60 65 70 75 80 85 90 95 100
Overall
Retail (food)Retail (non-food)
LeisureServicesTourism
AutomotivePublic Services (local)
Public Services (national)Finance (insurance)
Finance (banks)Transport
TelecommunicationsUtilities
Northern IrelandScotland
WalesEngland
Jul-10
Jan-10
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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)
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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
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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
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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
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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
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Thank you
Jo CausonInstitute of Customer Service