Managing Customer Service
Topic 1 Developing a Customer Service Strategy Strategy, Business Environment & Vision 1
Customer Service Aims • Develop and sustain a reputa0on for service excellence by crea0ng a customer service strategy • Understand the key stages instrumental when developing a customer service strategy • Understand the key external influences, including the main opportuni0es and threats, for your business • Assess the internal strengths and weaknesses of your business
The Service Excellence Model Deliver the Promise
Go the Extra Mile
Service Excellence
Provide the Personal Touch
Service Excellence
Resolve Problems Well
The Service Excellence Model ReputaBon for Service Excellence Committed staff
A service culture
A service personality
Easy to do business with
Financial benefits
Customerfocussed systems
Professor Robert Johnston, “ Service Excellence = Reputation = Profit : Developing and sustai ning a reputation for service excellence ” , Institute of Customer Service, 2001
The Strategy Process AcBvity 1: To do: • Produce a graphically annotated illustra0on of how you would define strategy
The Strategy Process Customer Service Strategy
Big Red Strategy Bus
Defining Strategy Defining Strategy: • ‘Strategic planning...involves concurrently integra0ng planning and management...the proac&ve approach of planning should be intertwined with the, frequent reac0ve reality of management’ [Source: Hall and Page 1999 cited in Mason, 2003, p. 74]
Defining Strategy Defining Strategy: • What business strategy is all about is, in a word, compe&&ve advantage...The sole purpose of strategic planning is to enable a company to gain, as efficiently as possible, a sustainable edge over its compe0tors. Corporate strategy thus implies an aJempt to alter a company’s strength rela0ve to that of its compe0tors in the most efficient way’ [Source: Grant, 1993, p. 11]
Defining Strategy Defining Strategy: • ‘The principal concern [with compeBBve advantage] is to avoid doing the same thing, on the same baIle ground, as the compeJJon...the aim is to aIain a compeJJve situaJon in which your company can: (a) gain a rela0ve advantage through measures its compe0tors will find hard to follow and (b) extend that advantage further’ [Source: Ohmae, 1982]
Defining Strategy Key Elements in Strategic Planning: • Environmental Analysis: anJcipaJon of short and long-‐term changes in the operaJonal environment • Resource Analysis: understanding of the significance of the site’s physical and human resource base to successful ongoing environmental adaptaJon • AspiraBon Analysis: idenJficaJon of the aspiraJons and interests of the major stakeholders in the desJnaJon or tourism development [Source: Hall,2000, pp. 37; 75]
Defining Strategy Key Elements in Strategic Planning: • Environmental Analysis: understanding and an0cipa0on of short and long-‐term changes in the opera0onal environment influencing service excellence • Resource Analysis: understanding of the significance of the site’s physical and human resource base to successful ongoing environmental adaptaJon • AspiraBon Analysis: idenJficaJon of the aspiraJons and interests of the major stakeholders in the desJnaJon or tourism development [Source: Hall,2000, pp. 37; 75]
Defining Strategy Key Elements in Strategic Planning: • Environmental Analysis: understanding and an0cipa0on of short and long-‐term changes in the opera0onal environment influencing service excellence • Resource Analysis: understanding of the organisa0ons’ physical, financial, opera0onal and human resource base and its ability to deliver service excellence • AspiraBon Analysis: idenJficaJon of the aspiraJons and interests of the major stakeholders in the desJnaJon or tourism development [Source: Hall,2000, pp. 37; 75]
Defining Strategy Key Elements in Strategic Planning: • Environmental Analysis: understanding and an0cipa0on of short and long-‐term changes in the opera0onal environment influencing service excellence • Resource Analysis: understanding of the organisa0ons’ physical, financial, opera0onal and human resource base and its ability to deliver service excellence • AspiraBon Analysis: iden0fica0on of the aspira0ons and interests of the major stakeholders involved in the delivery of service experience [Source: Adapted from Hall,2000, pp. 37; 75]
Defining Strategy AcBvity 2: IdenBfy: • What are the benefits of a clearly defined customer service strategy?
Defining Strategy AcBvity 3: IdenBfy: • What are the key quesJons to consider when developing a customer service strategy?
Customer Service Aims • Develop and sustain a reputa0on for service excellence by crea0ng a customer service strategy • Recognise the value and significance of customer service strategies • Understand the key stages instrumental when developing a customer service strategy • Understand the key external influences, including the main opportuni0es and threats, for your business • Assess the internal strengths and weaknesses of your business
The Strategy Process The Stages of Strategy What is it we want?
Stage 1 Mission and goals
Where are we now? Competitors External environment Internal environment
Where do we want to go? Market penetration Greater customer focus
How do we get there?
Stage 2 Analysis of business situation (SWOT)
Market research Market characteristics
Stage 3 Objectives
Quality service Product development
Stage 4 Strategy
How are we doing?
Stage 5 Monitoring and evaluation Source: Adapted from Cooper, 1993
The Strategy Process The Stages of Strategy
Where are we now? Competitors External environment Internal environment
Stage 2 Analysis of business situation (SWOT)
Market research Market characteristics
Source: Adapted from Cooper, 1993
Defining Strategy AcBvity 4: The External Environment To do : • Conduct a PESTLE analysis to highlight key factors influencing the customer service environment
Welcome Management – p. 19
Quality as a Management Tool Increasing Customer Expectations POTENTIAL AUGMENTED EXPECTED Excellence gap
CORE
Market Leadership gap
High
Levels of service
The Experience Economy
The Experience Economy
The Experience Economy
Entertainment ‘to sense’ • • •
Improves the par0cipant's mood/ experience absorbed through senses Par0cipa0on can be passive and/or ac0ve Can be added to other realms to improve experien0al quality
The Experience Economy
EducaBon ‘to learn’ • • •
Expands par0cipant's knowledge and/or skills Par0cipa0on is ac0ve Can be fused with educa0on to create "edutainment."
The Experience Economy
EstheBc ‘to be there’ • •
Enriches par0cipant through improved design, comfort and beauty of space and furnishings Immersion in the event or environment but having liJle impact on it
The Experience Economy
Escapist ‘to do’ • •
Par0cipa0on tends to be ac0ve Par0cipant tends to be actor in the performance
The Experience Economy The Branded Customer Experience
Profitable growth Branded experience Predictable experience Random experience • Inconsistent • Unintentional
• Consistent • Intentional • Not differentiated • Not valuable
• Consistent • Intentional • Differentiated • Valuable
• The goal
Defining Strategy Understanding Customers: Customers
Internal Customers People working within the same business
Customers External Customers Businesses
Defining Strategy AcBvity 5: Your Customer Groups To do: • Highlight the needs and expectaJons of a specific customer group
Welcome Management – p. 20
Understanding Your Customers 2
1
3 5 4
6
Understanding Your Customers AcBvity 6: Valuing Customer Groups To do: • Highlight the value of different customer groups, and consider how this impacts on your strategy
Welcome Management – p. 21
Understanding Your Customers AcBvity 7: Valuing Customer Groups High
7 4
1 = Business and conference
1
2 = Coach tours
8
3 = Couples
Number of customers
4 = Special interest groups 5 = Families
3
6 = Senior market
5
7 = Short break 8 = Walkers
6 2 Low Low
Profitability
High
Understanding Your Customers Customer Lifecycle:
Understanding Your Customers Value Chain Analysis:
Value Chain for a Scheduled Airline: Quality The Customer Experience
Preparation
Pre-flight
In-flight
Post-Flight
Follow-up
Understanding Your Customers The Student Journey Model:
Understanding Your Customers Customer Segmentation: Arkenford Modelling
Understanding Your Customers Customer Segmentation: Arkenford Modelling
[Tourism South East, 2008]
Understanding Your Customers Customer Segmentation: Arkenford Modelling
[Tourism South East, 2008]
Defining Strategy AcBvity 8: The Internal Environment To do: • Highlight the key elements of an internal resource audit that will influence the development of your customer service strategy
Welcome Management – p. 29
Defining Strategy: SWOT
[Source: Evans et al, 2003, p. 199]
Defining Strategy: SWOT
Defining Strategy: SWOT SWOT Guidelines: • Key points so that an overview is quickly gained • Many points may be relaJve rather than absolute and consequently a maIer of judgement • The SWOT should not concentrate solely on ‘hard facts’ and ‘sober’ factors such as the organisaJonal culture should be included • PrioriJse and combine points • PresentaJon should be specific and realisJc in its assessment • A criJcal and honest evaluaJon of the business is required (that not all businesses do!)
Defining Strategy: SWOT SWOT Guidelines: • Factors that impact on past performance • Factors influencing future performance • DisJncJve competencies -‐ skills/characterisJcs that disJnguish the product from its compeJtors • Key factors for success
Defining Strategy: TOWS
Defining Strategy: TOWS
Defining Strategy The Internal Customer:
• Who you do rely on? • Who relies on you? • What factors influence the nature and effecJveness of the internal customer relaJonship/ environment?
The Strategy Process The Stages of Strategy What is it we want?
Stage 1 Mission and goals
Where are we now? Competitors External environment Internal environment
Stage 2 Analysis of business situation (SWOT)
Market research Market characteristics
Source: Adapted from Cooper, 1993
Mission Statements
Vision v Mission Statements • Vision – desired future posiJon for your organisaJon (future); Inspire • Mission – why you exist (present); it defines the company's business, its objecJves and its approach to reach those objecJves; Inform • The two terms of oYen used interchangeably
Mission Statements
Mission Statements
Mission Statements
Mission Statements AcBvity 9: Mission Statements To do: • Evaluate the mission statements provided: • [a] Can you name the company simply from their mission statement? • [b] What makes an effecJve mission statement? Welcome Management – p. 3
Mission Statements
Mission Statements Writing a Mission Statement:
Evaluate customer feedback • What feedback do you want to hear?
Find the basic values and themes • Look for the common threads by separa0ng out values, words and ideas that keep recurring
Turn the list into a statement • Convert to a simple statement that expresses the company’s commitment to service quality
Don’t forget the employees • Repeat the process but change the focus to employees
Goals, Objectives, Actions WriBng Goals, ObjecBves and AcBons: Goals • General direcJon and focus ObjecBves • A specific statement of intent AcBons • Specific steps to achieve objecJves
Goals, Objectives, Actions WriBng Goals, ObjecBves and AcBons: Key issues IdenBfy individual goals
For each objecBve idenBfy specific acBons
For each goal idenBfy specific objecBves
Goals, Objectives, Actions ObjecBves: Â
Goals, Objectives, Actions ObjecBves: Â
Competency Development
The Strategy Process The Stages of Strategy What is it we want?
Stage 1 Mission and goals
Where are we now? Competitors External environment Internal environment
Where do we want to go? Market penetration Greater customer focus
How do we get there?
Stage 2 Analysis of business situation (SWOT)
Market research Market characteristics
Stage 3 Objectives
Quality service Product development
Stage 4 Strategy
How are we doing?
Stage 5 Monitoring and evaluation Source: Adapted from Cooper, 1993
Learning Outcomes By the end of this session, you should be able to: • Develop and sustain a reputa0on for service excellence by crea0ng a customer service strategy • Understand the key stages instrumental when developing a customer service strategy • Understand the key external influences, including the main opportuni0es and threats, for your business • Assess the internal strengths and weaknesses of your business