Customer Service Excellence

Some Useful Tools

Terry PilcherBCS Management Services

CambridgeshireUnited Kingdon

Business Excellence

Customer Service ExcellenceBenchmarking

Who is the Customer

The first step towards finding out what ourbusiness is, is to raise the question: 'Who is the

customer? - the actual customer and the potentialcustomer? Where are they? How do they buy?

How can they be reached?

Peter F Drucker

Segmentation

Segmentation

Subdividing people with distinctive shared needsand characteristics into reachable groups, based on 3dimension:

1. Who they are ?2. What they do ?3. How they think and feel ?

Some areas where we apply segmentationStrategy/ PolicyEvidenced based policies and strategiesTargeting resourceIdentify new people needs

DeliveryPlanning number and nature of delivery solutionsIdentifying special needsPlanning for different ‘customer journeys’

CommunicationC&M targeting and media choiceInsight and proposition developmentDeveloping effective message

Ways to Segment People

Use & Behaviour, e.g.FrequencyPlaceTimeOccasionExtent of use e.g. heavy, lightPersistency e.g. loyalChannels used for contact

Lifestyle, e.g.Holidays taken abroadMultiple/holiday homesLodgers/rental incomeWhat money is spent on

Media Consumption e.g.Internet and digital usageTV channels, radio, pressWhere most info comes fromHow information is absorbedWhat media engage themAccess to media

Demographics, e.g.GenderEthnicityFamilyAge and life stageHousehold type/ compositionEducationIncome and social classBenefits claimants/non-claimantsWorking statusPhysical statusUrban vs. ruralPostcode & regionMobilityMoving frequencyHouse ownership

Needs, Benefits,

Motivations, e.g.Need convenience, need reliability,need support etc.Beliefs, desires, wantsDeep-seated drivers e.g. love,belonging, praise, securityLoves & hates

Attitudes & Beliefs, e.g.In generalGovernment specific e.g. to ourbrands, servicesBalance between time, cost,convenienceTo value and money

Influencers e.g.Authority figures, e.g.accountants, solicitors, taxinspectorsParents, friends, peersRole modelsCommunity influences

Ways to Segment Business

Use & Behaviour, e.g.

FrequencyPlaceTimeOccasionExtent of use e.g. heavy, lightPersistency e.g. loyal

Activities, e.g.

Membership of trade bodiesLobbying activitiesHow profits are distributed

Media Consumption e.g.

Where most info comes fromInternet and digital usageHow information is processedAccess to media

Economic/demographic

Turnover of businessNumber of employeesMarket sectorArea of business activityLevel of profitabilityGeographical locationNumber of sites/locationsPrivate or limited

Needs, Benefits, Motivations, e.g.

Need convenience, need reliability, needsupport etc.Beliefs, desires, wantsLoves & hates

Attitudes & Beliefs, e.g.

In generalGovernment specific e.g. to our brands,servicesTo value and money

Influencers e.g.

Authority figures, e.g. police, taxinspectorsCommunity influencesKey shareholdersMedia

Segmentation – Success (1)

There is some form of segmentation to guide a bettercustomer experience

Segmentation is fit for purpose - investment in it is adequatefor the business

Segmentation is actionable – people in each segment canbe reached

It’s clear who needs considering separately- who has verydifferent needs etc

Segmentation – Success (2)

Segments can be quantified -it’s clear who’s most importantin achieving aims

Segmentation is workable- it’s not so complex and granularit can’t be applied

Segments have been properly prioritised to guide resourceallocation

Key measures -e.g. customer satisfaction - are at segmentlevel

Insight

InsightWhat compels people to act, think & feel as

they do?

Deep truth is based on behavior, experiences,attitude,emotions or beliefs.

Is it relevant to your task?

Does it ring true with people?

Will people act differently as a result of applying it.

Possible Insight Questions

What are people's basic motivations?Difference between heavy and light use?How do people think things work in this area?What do people love and hate?What are the triggers, life stage, an event etc.What stops people doing things?Who are the influencers.What is your relationship with influencers?When, where, how & why do things happen?

Insight Transformation

a. Collect important pieces of data andinformation.

b. Group data to understand what information istelling us.

c. Move to insight – the deeper underlyingthought.

Successful Model

Multiple/best sources have been used- formal research & informal ‘closeness’

Customers are seen in ‘3D’- who they are, what they do, and why they do it

There is real understanding and insight - capable of achieving change needed

There is customer focus - insight guides decision making, strategies, actions

Insight guides the whole customer experience to make it as good as it can be

There is insight for important customer groups

Journey Mapping

Journey Mapping

The process of tracking and

describing all the experiences that customers have as they

encounter a service or set of services, taking into account not

only what happens to them, but also their responses to their

experiences.

Questions?

Do you have gaps in your understanding of the experiencethat customers undergo at the moment?

Would it help you to have high impact feedback to challengeconventional thinking?

Do you have intractable policy challenges – where you keeptrying things but without getting anywhere?

Do you need to convince colleagues in other functions aboutthe importance of a customer-focused approach?

Use of Journey Mapping

Understanding the reality of people’s lives

Facilitating inter- and cross- departmental working

Designing and overhauling systems and processes

Making decisions

Will it help?

Are there lots ofways customers canaccess orexperience yourservice?

Is the serviceoffered to a widerange of people?

Do pressures toreduce coststhreaten to affectthe customerexperience in anadverse way?

Are you incurringextra coststhrough higherror rates oravoidablecontacts?

Are there advances intechnology or commsthat are likely to affectthe way customerswant to interact withyou?

Are you seeing a shiftin the balance ofchannels used?

Will it help?

Is there is a high orrising number ofcustomer complaints?

Are you asking a lotfrom your customers?(What’s it costingthem in terms of timeor money, and dothey accept this?)

Do you deal withparticularly vulnerable orat-risk groups?

Is this an issue that leadsto emotional or heatedexchanges withcustomers?

Do you deal with issueswhere the cost of failurecan be catastrophic?

Journey Mapping

C o m b in e b o t ha p p r o a c h e s fo r

in c r e m e n t a l b e n e f i t

M a p s s t e p s in ap r o c e s s – a ls o k n o w na s p r o c e s s m a p p in g .Id e n t i f i e s w h e r e t oa c t t o m a k e t h ee x p e r ie n c e a s e a s y ,p le a s a n t a n de f f i c i e n t a sp o s s ib le

Q u a l i t a t i v e ,f o c u s e d o ne m o t io n a l in s ig h t st o t e l l a s t o r y w i t hp a s s io n a n d n a r r a t i v e .P o w e r f u l w a y o fe n g a g in g s t a f f a n dc u s t o m e r s

A l lo w s y o u t oq u a n t i f y t h ee f f e c t o fc h a n g e s a n dc o n t r ib u t e tob u s in e s sc a s e s

M e a s u r e sh o w w e l lt h e e x p e r ie n c eis d e l i v e r e d ;l in k s t o c u s t o m e rs a t i s f a c t io n ,m e t r i c s & t r a c k in g

Success?

The business thinks in terms of customer ‘journey’- not justa point in time

There is recognition of when journey thinking is right forcustomers

Journey maps start and end at a relevant point

The right type of journey has been applied- e.g.understanding vs. efficiency

Success?If methods used are informal e.g. using frontline

staff, they are fit for purpose

Customer Journey thinking has been appliede.g. to improve the experience

The right people have contributed e.g. staff tohelp engagement with customers

Customer satisfaction along the ‘journey’ ismeasured in some way & actioned

Questions?

Terry PilcherBCS Management Services

CambridgeshireUnited Kingdon

BCSMgt@aol.comBCSManagementServices.com