Many organisations believe they are doing all the right things but results show that their
customer-related performance is not improving as they would like. The right senior
executives are accountable and have responsibilities for the customer written into their
personal objectives but corporate results show that accountability is not translated fast
enough into action. Consistently delivering measurable improvements in customer
management processes, week by week, is not happening.
Our experience of working with customers, as well as results from Budd’s Fast+Simple™
2005 senior executive survey tells us there are four reasons why companies can’t fix
things:
- too many one-off projects open and competing for resources
- lack of a proper, consistent, end-to-end tracking process within companies
- lack of a cross-organisational focus and consequent issues prioritisation
- not able to drive internal change effectively, despite good in-house skills.
Change is not always complicated but it is invariably hard to do successfully – and may
require outside help.
Many organisations have a strong customer-focus, and a ‘can-do’ culture. They have
excellent analytical skills, Six Sigma quality projects running in the organisation, use lean
tools to improve processes - but still encounter problems, because they don’t have a
proper cross-organisational tracking process in place. Six Sigma and lean tools are
optimised for manufacturing not for customer services. Projects can become overly
detailed and result in analysis that leads up blind allies. Companies struggle to find the ‘helicopter’ view of operational and project priorities.
Success requires focus, good internal communications and speed to drive actions that
improve the impact to the customer. Opening the communication channels to define contact codes in
the right way or providing objectivity in helping to engage senior executives in
accountabilities are just two of the benefits of outside help. For example, it took one
company five quarters to get from prototype to kicking projects off, on their own. That’s
why you need outside focus and help.
Companies who are delivering successful customer experiences are able to:
- hear the customers’ frustrations and ideas
- focus projects according to these customers’ priorities
- actually make a difference to the way they operate
Amazon is an outstanding example of a company who designed a continuous tracking
process (known as Skyline) that has enabled the company to improve customer service
innovation, cost reduction and competitive advantage, whilst massively growing
customer volumes. Other companies in Europe, USA and Australia have followed
Amazon’s lead and proved that Skyline is an effective way to address the underlying root
causes and drivers of service demand across the business, cut OPEX and grow revenues.
Examples |
Benefits from using Skyline process |
Large online
retailer |
- 22% per year reduction in contacts per order
- Typical corporate IRR was >200%, equivalent to ~9 month payback
|
Large online
bill payment
company |
- Has kept Customer Service headcount flat over past 2 years while number
of customers has more than doubled
- 50% reduction in contacts per customer, saving tens of millions
|
Source: “How do customers get Fast+Simple experiences from companies like Amazon and what
can you learn from that?, Budd 2005 report, download free at www.fastandsimple.org
The key differentiator for these companies is their ability to “close the loop” between
voice of the customer, programmes and operations, as outlined in the graphic below.

In 2005, it’s rare for companies to get beyond first base in demand analysis. They still find
it hard to put in place processes which continually sense and improve
customer frustrations and remove costly service needs. And drive great product and
service development opportunities back into the business.
There is a right way to do things, for right first time – and there is a right way to capture
and classify codes and a right way to eliminate what is a waste of time.
If you have a business problem that you can’t fix, you may need help, because either
you haven’t the right components in place or you have the components but they don’t
glue together. In either case, you can’t achieve the desired changes.
To see if this process
would benefit your company, check out the list below
|
- Good understanding of the contact processes
- The right listening posts in place – including for customer self service
|
|
- Customer contact reporting reflects ‘Why?’ not ‘What?’
- Contact analysis/contact centre assessment as well as code restructuring and improvement processes
- Analysis beyond reporting, the ability to dig more efficiently and quickly
into the reason for codes going up or down (which customer segment,
which product segment, which call centre site)
|
|
- Readily modify agent applications to match new coding systems
- Understand agent interface and overlaps with existing contact handling and CTI applications
|
|
- Wide enough vision on collaboration across the business
- Understand new data and the importance of simulation
|
|
- Can set the right goals to win
- Change management programmes
- Know how to get collaborative action on the results
|
|
- Identify the differences between the processes you have, expect and actually need
- Can make what you want compatible with what you have (or need to discard).
- Have the right tracking process in place to drive the value you want from
what you’re doing
|
|
If you know what’s wrong but can’t fix it yet, look for capabilities that you can’t replicate
in-house and expertise that can deliver those critical pieces that will save you time – and
probably money. The ability to close the loop is an opportunity to differentiate your
offering. As services and products get more complex - and more vital to doing business
and staying in touch - so the need to address these long standing issues intensifies. To the
winner the spoils!
If you would like to know more - contact Peter Massey, Managing Director of Budd and
co-founder of the LimeBridge international alliance. www.budd.uk.com
© BUDD UK |