Low cost ways of keeping both customers satisfied and margins up (summary)

Companies endeavouring to make their operations as efficient as possible in order to provide customers with top quality service have found it beneficial to invest time and energy measuring customer satisfaction. What even enlightened companies seem to find difficult is to consider the activities as an integrated whole and to ensure that the customer values what is provided. This article will discuss the importance of integrating the customer into the operation and commends the desire to understand customer service experiences, and how to cost effectively provide exactly what the customer really wants through intimate process cost knowledge.

Many companies use customer satisfaction surveys, but are cautious about trying to cater to un-voiced needs, yet a lack of real customer knowledge is beginning to jeopardise the loyalty of customers when they observe what appears to be a “don’t care” attitude.

Exploring these issues with companies highlights that measuring appears problematic because there is little or no accurate, relevant information as to the real cost of delivering/not delivering a given service. Poor insight into what the customer really values means that the cost/value equation is rarely properly addressed, companies either money is wasted on services that are not required or services that would provide differentiation from competitors are not provided.

Businesses need to have detailed and accurate information on the customer and their own processes, but often systems are not joined up effectively so correlating data becomes virtually impossible. Problems arise also from lack of customer knowledge within the business functions of Sales, Service, Marketing and certain parts of the back office that directly interface with the customer – exacerbated by the fact that the different departments are often unaware of what each other is doing and almost vie with each other for ownership of the customer.

Businesses must be seen for what they are – multi-faceted (see figure 1). The customer may be able to interface at numerous points with the business, but does not want to struggle through the silos and challenges of a supplier with disjointed processes.

Figure 1

Companies realising the need to face the customer competently across the whole business have undertaken a number of actions to ensure the customer perceives a culture that cares and really is interested in solving problems. What is important is to realise why these actions are necessary, because at their heart they are very basic - but often overlooked. These actions are:

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