Customer Management Excellence : Successful Strategies From Service Leaders

CRM today is much like BPR in the 1990s. It is the strategy of the 21st century. Everyone is jumping on the bandwagon, but few are doing it in a way that will reap long-term benefits. And while billions are being spent worldwide, as yet there is not one case study of a true CRM focused company that is achieving major business success. Why? Three years ago Quest Media introduced the National Customer Service Awards. The philosophy was to research, recognise and reward organisations that were pushing the barriers of customer management to new limits. Written by the editor of Customer Management magazine, this book draws on Quest's research to reflect the current thinking behind today's front-runners in the customer management field. The authors challenge accepted thought processes and give realistic timeframes for implementing the innovative thinking that will produce tomorrow's Customer Management Excellence. \* An 'all you need to know about customer management' handbook - draws on the authors' vast experience to help unravel this complex topic \* Provides case studies and examples of organisations that are award-winners in their innovative customer management techniques \* Includes a glossary of terms and checklists to help readers benchmark their own progress in implementing successful customer management @TeamLiB 1 CUSTOMER MANAGEMENT EXCELLENCE 1 CONTENTS 5 INTRODUCTION 10 EFFECTING CHANGE 11 CUSTOMER RETENTION 12 USE ALL AVAILABLE DATA 12 MEASUREMENT 13 COMMUNICATION STRATEGIES 14 TRAINING 15 PART I 5 Chapter 1 - EVALUATING A CUSTOMER-CENTRIC APPROACH 20 GENERIC OVERVIEW 21 ARE YOU PRICE-, PRODUCT- OR CUSTOMER- DRIVEN? 22 TRANSITION TOWARDS CUSTOMER FOCUS 25 DIFFERENTIATION THROUGH SERVICE 26 WHAT CUSTOMER SERVICE EXCELLENCE MEANS TO AN ORGANISATION 28 READINESS CHECKLIST 28 Case study: Unipath 29 Case study: London Borough of Newham 31 Chapter 2 - ENTER THE CUSTOMER SERVICE DIRECTOR 34 INTRODUCING THE ROLE OF THE CUSTOMER DIRECTOR 35 CUSTOMER ELEMENTS OF A COMMERCIAL BUSINESS 36 HOW DO SERVICE PERSONNEL KEEP TOUCH WITH THE CHANGING CORPORATE STRUCTURE? 37 WHAT MAKES CUSTOMERS IMPORTANT ENOUGH TO HAVE A DIRECTOR? 38 READINESS CHECKLIST 39 Case study: Sun Life Financial of Canada 40 Case study: Legal & General Assurance Society 42 Chapter 3 - RECOGNISING THE CULTURAL NEEDS OF A SERVICE OPERATION 44 RECOGNISING THE CULTURE WITHIN DIFFERENT ORGANISATIONS 45 MARRYING A CULTURE OF PROFIT TO A SERVICE EXCELLENCE ETHIC 46 UNDERGOING A CULTURAL CHANGE 48 CHANGE MANAGEMENT ISSUES 49 TOP-DOWN APPROACH TO SERVICE CULTURE 50 READINESS CHECKLIST 52 Case study: Thames Water Utilities 53 Case study: The Royal Bank of Scotland 54 Chapter 4 - THE SHIFT FROM CALL CENTRE TO CONTACT CENTRE 56 THE EMERGING MULTICHANNEL CALL CENTRES 58 MANAGING CHANGE WHILE MAINTAINING SERVICE LEVELS 60 MULTITASKING CSRS AND KEEPING STAFF ON-MESSAGE 61 LINKING THE DATA WITH THE REST OF THE ENTERPRISE 64 READINESS CHECKLIST 65 Case study: Loop Customer Management 66 Case study: Newcastle City Council 68 PART II 7 Chapter 5 - DEALING WITH LIFETIME VALUES 72 CALCULATING CUSTOMER LIFETIME VALUES 73 LTV IS A KEY REQUISITE TO REALISE THE FULL CUSTOMER VALUE 77 EMERGING TRENDS IN LTV MEASUREMENT 78 IS LTV BEING REALISED BY COMPANIES AND IF SO, HOW? 79 READINESS CHECKLIST 80 Case study: Carpetright 81 Case study: Zurich Financial Services 83 Chapter 6 - HOW TO DEAL WITH UNPROFITABLE CUSTOMERS 86 EVALUATING YOUR CUSTOMERS隆炉 VALUE, SEGMENT BY SEGMENT 87 HOW TO DIFFERENTIATE THE SERVICE OFFERING TO YOUR TOP 10 PER CENT 90 SHOULD YOU CONTINUE TO SERVE UNPROFITABLE CUSTOMERS? 91 HOW TO OFFLOAD THE CUSTOMERS THAT COST YOU MONEY 92 CREATING A KNOWLEDGE- BASE ABOUT SERIAL COMPLAINERS 93 READINESS CHECKLIST 94 Case study: Hilton plc 95 Case study: Vauxhall Motors 97 Chapter 7 - COMPLAINT ( FEEDBACK) MANAGEMENT 100 PROACTIVELY MANAGING COMPLAINTS 101 PREDICTING SERVICE SHORTFALLS TO REDUCE COMPLAINTS 103 ESTABLISHING TRANSPARENCY IN TERMS OF ORGANISATIONAL CULTURE 105 WHEN TO TELL THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT . . . 106 ADMITTING YOUR FAILINGS 107 COMMUNICATION AS A TOOL TO DEAL WITH DISGRUNTLED CUSTOMERS 109 READINESS CHECKLIST 111 Case study: Thomas Cook Retail 112 Case study: The Capita Group 114 Chapter 8 - REPUTATION MANAGEMENT 116 EXECUTING EFFECTIVE DAMAGE LIMITATION 117 HOW TO DISTANCE YOURSELF FROM THIRD-PARTY ACTIONS 118 COMMUNICATING WITH CUSTOMERS WHEN YOU ARE POWERLESS 120 HOW COMPANIES ARE ADDRESSING THIRD-PARTY ISSUES 121 THE EMERGENCE OF CUSTOMER UNIONS 122 READINESS CHECKLIST 124 Case study: Travelcare 125 Case study: The Boots Company 127 Chapter 9 - MANAGING EXPECTATION 130 CUSTOMER SERVICE EXCELLENCE INCREASES EXPECTATION 131 CUSTOMER SERVICE EXCELLENCE BECOMES THE NORM 134 SHOULD SERVICE BE PAID FOR TO REDUCE CUSTOMER EXPECTATION? 134 REDUCING EXPECTATION CAN LEAD TO REDUCTION OF CUSTOMER CHURN 135 HOW ORGANISATIONS ARE DEALING WITH CUSTOMER PERCEPTIONS AND CHANGES IN EXPECTATION 137 READINESS CHECKLIST 139 Case study: International Recti.er Company (GB) Ltd 139 Case study: Powergen plc 141 PART III 7 Chapter 10 - EMPOWERING CUSTOMER-FACING STAFF 146 HOW EMPOWERING STAFF IMPACTS ON STAFF RETENTION 147 HOW EMPOWERMENT IMPACTS ON CUSTOMER RETENTION 148 HOW TO EMPOWER STAFF AND TO WHAT LEVEL 150 BUILDING STAFF CONFIDENCE TO ENSURE OWNERSHIP OF COMPLAINTS 151 DEVELOPING A SET OF DISCRETIONARY AWARDS 152 DEFINING EXACTLY HOW LONG THAT 隆庐 EXTRA MILE隆炉 SHOULD BE 154 READINESS CHECKLIST 155 Case study: Currie & Brown 156 Case study: WHSmith 158 Chapter 11 - SERVICE PERSONNEL ADOPTING THE SALES ROLE 160 A SATISFIED COMPLAINER WILL REMAIN LOYAL FOREVER 161 CROSS-SELL AND UP-SELL OPPORTUNITIESWITH A SATISFIED COMPLAINER 163 HOW TO GAIN A 360-DEGREE VIEW OF THE CUSTOMER 164 IDENTIFYING WHEN A CUSTOMER IS SATISFIED 166 INTERDEPARTMENTAL COMMUNICATIONS: INTERNAL COLLABORATION 篓C A VITAL LINK 168 CAN SERVICE PERSONNEL SEE THEMSELVES AS SALES PEOPLE? 169 READINESS CHECKLIST 170 Case study: Siemens Communications 171 Case study: AON Warranty Group 173 Chapter 12 - CARING FOR YOUR CARERS 176 AVOIDING JADEDNESS IN FRONT-LINE STAFF 177 AVOIDING INCONSISTENT SERVICE LEVELS 178 TAKING A MEANINGFUL INTEREST IN YOUR STAFF AND THEIR PROBLEMS 179 PROMOTING OPENNESS AND DISCUSSION IN THE WORKPLACE 181 INCENTIVISING STAFF TO GO THAT 隆庐 EXTRA MILE隆炉 182 ACKNOWLEDGING SERVICE EXCELLENCE THROUGH BENEFITS 183 UNDERSTANDING WHAT MOTIVATES YOUR STAFF AND REWARDING ACCORDINGLY 184 READINESS CHECKLIST 185 Case study: National Westminster Bank 186 Case study: Mid Kent College 188 Chapter 13 - THE FINAL CHAPTER 篓C A SUMMARY 190 THE PROCESS 191 AND THE FINAL WORDS FOR THE DOUBTERS 195 6 Case studies featuring main category winners from National Customer Service Awards 195 BT Cellnet 196 Eurostar UK 198 Midland Mainline 203 Sainsbury's Supermarkets 206 Stannah Stairlifts 209 The Trafford Centre 213 GLOSSARY OF TERMS 218 INDEX 222 0470848537 Customer Management is the essential strategic magazine for senior managers and directors of organisations across all industry sectors striving to achieve excellence in the field of customer service and management. It is read by more senior managers and directors than any other magazine in this space. The role of Customer Management, as the leading publication in its field, is to help set the agenda for its readers. The publication maintains a very much 'how to' approach, as does this book, while at the same time providing thought provoking, leading edge features reflecting best practice, new thinking and trends in this fast moving marketplace. Customer Management is the perfect read, showing the way forward for leaders across all sectors who are striving to develop customer-centric organisations and effectively manage their relationships with customers, both external and internal. This work draws on research to reflect the current thinking behind front-runners in the customer management field. The authors challenge accepted thought processes and give realistic time frames for implementing the innovative thinking that will produce tomorrow's excellence