Benefits of a Customer Centered Organization - Essay Example

? MARKETING MANAGEMENT: CARE al Affiliation) Contents Executive Summary 3 Introduction 4 Benefits of a Centered Organization 4 Developing Customer Understanding 4 Identification of Complaints and Resolution 5 Understanding of consumer Purchasing Behavior 5 Benchmark for Analyzing Employee Performance 6 Creation of Customer Loyalty 6 Sustained Business Growth 7 Formulation and Implementation of a Customer Care Strategy 8 Formulation of an Action List 11 Creation of a Customer Charter 11 Professional skills and Competencies 12 Importance of Training and Development 16 Objectives and Methods of Training and Development 16 Statement of Objectives and Action Plan 17 Action Plan for Implementation 18 Recruitment 18 Review of Employee Performance 19 Formulation of Personal Development Plans 19 Emotional Intelligence (EQ) 19 Conclusion 20 Bibliography 21 Executive Summary At the core of every successful company, customer care plays a central role in its marketing management plan. This is in recognition that it develops relationships with clients and consequently leads to creation of a loyal and committed customer base. To this end, businesses that seek to increase profitability; efforts should be dedicated in creating customer loyalty, trust and commitment to goods and services. This is in recognition that customer loyalty ensures constant consumption of goods and services. In addition, the customers become promotional ambassadors of the business to other potential customers. Furthermore, the customers provide critical feedback on the services and goods. This enable the business to develop innovations aimed at improving goods and services. To this end, the report will intricately delve into the benefits of a customer care centered organization. Moreover, the report will demonstrate how the benefits could be applied to a hypothetical organization and its key customers. In addition, an intricate explanation on the implementation of an excellent customer care strategy will be critically analyzed. Furthermore, the report will look into the importance of training and development for excellent customer care service for both managers and customers. Consequently, the objectives of training and development schemes will be established as well as the best methods for initiation. Lastly, the report will establish a statement of objectives for a training and development program as well as outlining an action plan for implementation. Introduction The core aims of customer care are to ensure customer satisfaction and building relationships. Evidently, customer satisfaction pertains to the effective management of the customers’ perceptions and delivering a positive environment for conducting business with the clients (Cooke, 2008). Consequently, there are pertinent questions at the core of an effective customer care plan. This includes the levels of etiquette and professionalism of the staff, products and services that meet the clients’ expectations, and timely delivery of promised services and goods (Brown, 2010). Incidentally, customer satisfaction is tied to the building of mutual relationships with the clients. To this end, the business relationship is centered on understanding the customer needs and expectations. Furthermore, it is critical for the business to go over and beyond the stipulated expectations of the client. Moreover, the centrality of an effective communication plan with the customer is critical in the building of relationships. This pertains to keeping a constant communication schedule with the client that does not assume or take them for granted. Furthermore, it is essential to incorporate a complaint procedure for the clients as well as compensation plan for resolving controversial issues that touch on the products and services. In addition, the customer care plan strategy needs to consider loyalty schemes and administration of surveys focusing on customer satisfaction. Benefits of a Customer Centered Organization Developing Customer Understanding The key to ensuring the delivery of good service is creation of customer understanding. A customer centered organization stands the benefit of boosting customer understanding. To this end, quality customer care involves not only understanding the customers’ needs, but also anticipating them and going beyond their expectations (Bee & Roland, 1999). Consequently, the attribute of attentiveness is critical whenever communication is done with the customers. In application to an individual business, there are several ways of boosting customer understanding. For example, the staff should view the business from the perspective of the customer. This will aid in predicting the customers’ expectations and fulfilling them beforehand. Evidently, the business needs to take a clear perspective look on the areas where customer contact is experienced. For example, phone calls, meetings, deliveries, visits and correspondence. Identification of Complaints and Resolution Incidentally, the thoughts feelings and perceptions evoked from the customers result to an assessment of the customers’ needs (Newby & McManus, 2002). Moreover, the business is able to identify the major areas of complaints by the clients. In application to an individual business, the common complaint raised by customers relates to slow and late delivery of service. To this end, improvement in the timely delivery of service is essential for ensuring retention of customers. Understanding of consumer Purchasing Behavior A customer care system assists the business to understand the purchasing behavior of consumers. Evidently, the customer care system is beneficial in collecting and synthesizing information related to their purchasing behavior. By applying this precinct to an individual business, a database detailing the customer relationship management (CRM) is pertinent to understanding the customers’ needs (Peppers & Rogers, 2000). The customer relationship management database contains critical information pertaining to customer preferences, and behavior. Consequently, it assists in enhancing the satisfaction of customers and retention. Benchmark for Analyzing Employee Performance The CRM will enable the business to establish the patterns of customer consumption while making orders, as well as providing a benchmark for analyzing personal performance. Consequently, the gaps in the quality of customer care service can be established and improved. Creation of Customer Loyalty Effective customer care service also involves the building and maintenance of customer loyalty. To this end, customer loyalty programs or schemes provide an exemplary solution towards retention of customers. This is in recognition of the high cost of attracting new clients compared to retaining past clients that consequently increase the bottom line profit margins. In reference to an individual business seeking to increase customer loyalty, the business management needs to identify and reward the exemplary customers (Applegarth & Posner, 2005). To this end, the loyalty scheme within the customer care department offers an avenue to incentivize and reward the highly esteemed customers. The loyalty schemes thus exhibit a number of potential benefits to the business. Foremost, the loyalty awards enable the business staff to devote attention to the valued customers and enhance customer satisfaction paradigms (Applegarth & Posner, 2005). As a result, the loyal customers extend their gratitude by increasing their purchasing powers and cash flow to the business is increased. In addition, the loyalty schemes allow the business to extend the order times for services by the customers. Furthermore, loyalty schemes provide the business with extra clients who act as goodwill ambassadors for the business. It is of essence to note that endorsement of products and services form loyal customers have a more powerful and profound effects to other potential customers. To this end, they save the business from marketing costs. In devising a customer loyalty scheme, the business needs to consider rewards which will make the customer feel appreciated as well as ensuring profitability in the long run. To this end, the loyalty scheme needs to be devised in tandem with specific goals in mind. Examples of goals here include whether the business wants to inspire the customer to increase their spending or if they want to repeat business. Sustained Business Growth It is critical for the business to maintain a customer care experience. This will ensure that the business profitability does not suffer in the long run (marketingdonut.co.uk, 2009). There are three core business factors in relation to customer care that eventually stimulates or maintains business growth. In reference to an individual employing organization, communication is among the core factors that ensures business growth. Evidently, it involves the appropriate communication channels with customers, updating them on the current happenings as well as managing customer expectations (Hayes & Dredge, 1998). Furthermore, the customer care staff should also consider the choice of words used in communicating with customers. Incidentally, pre-recorded customer care call messages can determine whether the customers will maintain loyalty to the company or abandon it. For example, pre recorded messages such as ‘ hold on until the next customer care assistant attends to you, you’re an important client to us’; can elicit different emotions to the customers. To this end, the customer may react cynically by questioning why he or she has to be on hold on if they are important? Moreover, they may reason why there is not enough customer care support staff to deal with calls. Staff members and other stakeholders of businesses need to be kept abreast of customers services. It is critical for the business managers to discuss the internal challenges with other staff members in order to formulate solutions for improving the customer experience. Evidently, such discussions revolve around creating possible scenarios in the event of unveiling a new product or service. To this end, contingency plans that take into consideration the customer experience can be developed beforehand (marketingdonut.co.uk, 2009). Another important factor to consider is the first impression. This pertains to the initial call resolution rates, that are often plagued by the challenge of handling an increase of customer queries. To this end, the issues raised by the customers, risk being ignored in the event of trying to resolve internal issues. However, it is critical to always maintain quality customer experience above all other internal issues (Cooke, 2008). Formulation and Implementation of a Customer Care Strategy In the event of trying to improve customer service, one pertinent department relates to customer care. To this end, an organization should incorporate key steps in setting up a customer care program. The first step pertains to learning all the customer needs, wants and desires. In effect, the organization can employ a variety of tactics in the learning process such as online customer surveys, and also phone call interview sessions between prospective client and the business (Cooke, 2008). Evidently this is a feedback system in which the organization devices a variety of modes for making the process easy and suitable for the customers. Upon learning the customers’ wants, an organization needs to demonstrate an understanding of the issues raised. This can be through the storing of purchase information on the customer relationship management data system. Moreover, the business can also readjust their production lines to produce products and services which conform to the customer needs. The third process entails the design of systems which are convenient to the customers. Examples of system designs here include fast delivery and easy ordering procedures. The benefit of such extra design systems is the increase in company revenue since they can be offered at an extra fee which customers will gladly pay since it is part of addressing their needs (Hayes & Dredge, 1998). The fourth process entails the setting up of comprehensive service standards. To this end, the customer charter detailing key competencies and skills is a pertinent guideline in the setting of standards (Cooke, 2008). Moreover, the standards should stipulate the company’s customer assistance benchmarks. In addition, setting up of standards should provide a means of training the staff in meeting the customer needs. The fifth precinct in setting up the customer care program is the obligation of keeping promises set to customers. In addition, it also involves anticipating and exceeding the expectation of the customers (Newby & McManus, 2002). Moreover, the business should be ready to provide prior information pertaining to foreseeable changes or warnings. The organization should equally ensure that all employees are knowledgeable concerning their roles in customer satisfaction. Moreover, the organization should also explore ways of motivating the employees by offering incentives and rewards. This will motivate the employees towards ensuring that clients get quality customer care service. The constant and regular customer contact constitutes the seventh factor in setting up a customer care program. The various modes of regular contact can be done through personalized emails and letters. Moreover, the business needs to express appreciation to their faithful clients as well as providing useful information to them. The provision of easy contact methods for the client in contacting the customer service desk is equally pertinent (Cooke, 2008). To this end, the organization should provide free or cheap and easily accessible contact details. This includes could include contact details for the manager, or customer service department. In addition, the contact procedure should allow for fast and timely response to the emails or phone call made by the customers. The customer care program should also provide for the delegation of authority for the face to face customer service staff (Cooke, 2008). To this end, it is critical to grant customer service staff the authority of response to all the client’s needs. However, the responses should be in compliance to the company rules and regulations. As a result, the customer service staffs are able to independently make decisions and address the problems raised by customers. The incorporation of a procedure for prompt and effective handling of complaints raised by the customers is equally important. This is in recognition that failure to address problems raised by the customers elicits a bad impression of the customer service. In addition, the organization stands the risk of losing customers if issues raised are not resolved amicably. Moreover, the resolution of complaints may provide vital information concerning how the business should realign its products and services. The customer service plan also needs to include a record keeping system for the clients (Hayes & Dredge, 1998). This mostly relates to the storage of all clientele contacts for future reference. To this end, the customer contacts can be used to improve the understanding of customer needs and requirements. Consequently, products, services and operations can be realigned towards improving the customer service. The update of contemporary technology systems for use in the communication process is another pertinent factor in the customer service plan. For example, the personal customer interactive employees need to be equipped with technology that enhances access to information for relating to the customers’ needs (Mackay, 2010). The analysis of profitability margins is an essential factor in the customer care program. It involves an investigation of the profitability levels among the different customer groups and market segments. To this end, the customers that contribute the most towards the company’s profitability should be accorded the superior customer care. Over and above this, the customer care program should provide extras to the most valued and loyal customers. Examples of such extras include loyalty bonuses, entertainment, and first choice consideration on special offers as well as service help lines. Formulation of an Action List Evidently, an excellent customer care strategy requires a succinct action plan. To this end, the action plan contains pertinent information regarding the customer charter which evaluates whether employees are responding to the client needs. Moreover, the action plan details the professional skills and competencies required of each employee. To this end, the subsequent sections offers further explanations on the action list. Creation of a Customer Charter The customer charter is essential in checking that the business is responding to the customers’ needs (Bee & Roland, 1999). To this end, the customer charter provides a checklist from which the business can evaluate customer care performance. Evidently, the customer charter commences with personal customer care evaluation sheet. Examples of questions here include; if a staff member arrives at work or to the clients premises on time, if a staff member knows the names of regular customers, if a staff member exhibits a desire to assist customers and also if a staff member greets customers warmly and confidently. Moreover, the customer charter should outline the personal or professional skill and competencies required for effective customer care service (Mackay, 2010). Professional skills and Competencies Within the precincts of the customer charter, there are essential skills that epitomize efficient customer care. This includes active listening and response to the clients’ needs, moods or feelings. Moreover, the staff member is able to create empathy with the client’s needs and consequently satisfy his/her needs. Creating an air of importance for the client is equally and essential skill. This can be accomplished through expression of courtesy to the client, advancing compliments, and expressing concern to their needs (Peppers & Rogers, 2000). Moreover, staff member need to develop the character of inquisitiveness and offering to assist the customer. Evidently, this involves initiating conversation, creating interest and reassessing if a client is uncertain or overwhelmed by goods or services offered. Providing of acknowledgement to the client is equally an important personal skill. This generally involves dedicating full attention to the client, applying the clients name into use whenever possible, adapting to the pace or mood set by the client whenever feedbacks are advanced. The staff member should also be efficient in clarifying details by advancing all pertinent information clearly, getting all the facts raised by the customer correctly and effectively asking questions. The customer care staff should equally adopt the skill of exceeding the expectations and demands of customers. This requires going an extra mile in solving the customer problems, proposing additional services and generally taking an extra step in assisting the client’s needs. The ascertaining of customer satisfaction is another fundamental skill. It involves, asking, checking, re-asking and counter checking that the customers’ needs are meet before bidding them goodbye (Brown, 2010). An innate knowledge of the job or service engaged is pertinent to efficient customer care service. To this end, staff member are expected to have an in-depth understanding of the services and products advanced to customers. Moreover, the staff should be properly groomed, undergo constant retraining, and ensure that all material related to the job are available. Provision of follow of customer information and call back is equally another pertinent skill. As a result, a person is expected to maintain constant information feedback with the client, and updating other workers on pertinent customer needs. To this end, the key skills outlined can be applied in the appraisal or evaluation of workers within the organization. Evidently, workers can apply the personal skill table outline to evaluate areas in need of improvement when handling customers. Moreover, they could be equally applied as part of the selection methods when recruiting new personnel. In recognition that personal skill reflects on what each staff member needs to know, another vital component known as competencies also needs to be assessed. The competencies simply outline the levels of behavior needed for efficient customer care service. Foremost, a person needs to be sufficiently competent in communication. It is important to note that communication encompasses two paradigms. The first one is to competently articulate verbal and written communication in simple language that avoids unnecessary jargon. The other precinct of communication relates to active listen and advancing relevant questions for understanding the customer needs and desires. The exhibition of customer sensitivity is another vital competency. As a result, the staff member should be able to show concern to the customer’s point of view or needs. The competency of being sympathetic is equally essential since it involves an understanding of the customer’s desires, needs and wants. Empathy as a competence revolves around keeping in sync with the customers’ feelings pertaining to defined sets of business circumstances. For example, it involves understanding the frustrations or resentment of customers when they are compelled to return faulty products. Moreover, a worker needs to employ decisiveness in action by the workers involves fast decision making on issues concerning the client needs. The workers also need to be energetic by being attentive, alert and playing a leading role in addressing customer needs (Brown, 2010). Flexibility as an attribute involves the ability to promptly change an approach, style or action in satisfying the customers’ needs, disposition or personality. However, the worker must still adhere to the company’s rules, regulations and standards while adapting to the customers’ needs. Integrity as virtue among the workers enables employees to exhibit honesty and ethical values when serving customers. A worker that exhibits integrity is also immune from making false promises to clients and strives to impress colleagues, customers and the company. The initiative competence in a worker is evident when he or she persistently strives to meet and exceed the expectations of customers. The competence in the job knowledge is equally pertinent. This is because the worker is able to exhibit an innate knowledge of the organizations services, products and policy regarding customer care. Motivation as competence for customer care suffices in a worker through desire to fulfill the customer needs during service (McMillan, 2010). Moreover, it involves an inborn contentment in meeting the job requirements of customer care service. Another key competence is persuasiveness. In this case, customer care relating to the sales department requires sufficient convincing of the customer to purchase the company’s goods and services. In addition, the worker should be able to convince the customers in accepting proposed solutions to problems. The customer care expert needs to be sufficiently competent in the character of resilience. This is in recognition that the handling of customers requires on to be patient and tactful. This is because customers tend to be unpredictable when it comes to individual priorities. To this end, a person needs to be able to bear the pressures and resolve each customer problem amicably. The ability to dispense judgment is also a pertinent competence area for a customer care staff. Evidently, this involves the proper use of relevant information available to find solution to the customers’ problems. Moreover, they need to exhibit independence in thinking when seeking ways to meet the customer needs. The ability to make a significant impact is also an indispensable competency area. This involves the ability to present a neat physical appearance, exhibiting a strong bearing and making an exceptional impression and service to the customer. In addition to this, the worker needs to exhibit timely follow up competencies. This pertains to the ability to deliver on promises kept to the customer as well as exuding timely feedback regarding customer needs. Furthermore, the element of being decisive is also a critical competency attribute for the customer care expert. It involves the taking of swift action and decisions that offer solutions to the client’s needs. Moreover, decisiveness involves the acceptance of responsibility and avoiding the placing of blame on others. The ability to exhibit standard also qualifies as another benchmark for competence. Evidently, the customer care expert should exhibit knowledge of personal and business standards that are needed in guaranteeing quality customer care service. To this end, the detailed information pertaining to the customer charter provides sufficient guidelines for quality customer care to the staff members of an organization. Moreover, it enables the business to recruit high potential customer care staff. Furthermore, it acts as a systematic evaluation tool for improving the performance of staff member engaged in customer care. Importance of Training and Development The employees act as a line of contact between clients, prospective and the company. Consequently, the employees overall performance in customer service is critical for the success and growth of a business. To this end, it is important to ensure that every person in the organizational chain is included. This is because it will aid in the enhancement of attitudes, knowledge and skills essential for excellent customer service. Furthermore, training and development aids in the flexibility of organizations as well as increasing customer orientation and proactivity in the event of strong competition (McMillan, 2010). In addition, training and development acts as a pertinent motivational tool for the employees of the organization. Furthermore training and development helps to foster teamwork that will guarantee continuous quality of customer care service. Objectives and Methods of Training and Development Exemplary organizations utilize information drawn from customers in order to define the objectives of training and development. This aids in the maintenance of the organization’s core focus. To this end, customer service is determined by the feedbacks and preferences from the customers. Consequently, it is only through the inquiry of customer opinions that organizations can ascertain the customers’ preferences and evaluate the performance of business (Cooke, 2008). Thus, the art of active listening to customer needs and preferences is a vital component of training and development. Furthermore, the art of listening aids in the identification of customer expectations in service delivery. To this end, the methods for achieving training and development need to take several pertinent issues into consideration. These include the expected type of learning, the preferred learning mode for the trainees, the previous experiences in development and training, the duration of training, the costs involved, level of involvement required and the work environment. Consequently, the methods of training and development can take several forms. These include telling and showing of the trainees through lectures, demonstrations, programmed learning, videos, webcasts, podcasts as well as DVD’s (McMillan, 2010). The second method involves the sharing of knowledge through workshops, discussions, group instructions, e-learning, or webcasts and podcasts. The third method entails experience sharing of experience and discussion through role playing, exercise, simulation, job shadowing, business games and case studies. The fourth method involves skills and understanding through mentoring, open learning, personal coaching, NVQs, computer based training, e-learning and work experience (Bee & Roland, 1999). Statement of Objectives and Action Plan To this end for a hypothetical employing organization, a detailed statement of objectives in relation to training and development are succinctly elaborated. Foremost, pertains to the improvement of the relationship between customer and employees. Second are the organization, delivery and maintenance of efficient customer service. Third pertains to the collaborative teamwork between employees and managers to improve customer service. Fourth concerns the monitoring and providing solutions to problems in customer service. Fifth pertains to the promotion and maintenance of continuous improvement. Sixth pertains to the development of individual employee customer service skills. Seventh pertains to establishment of leadership to teams so as to improve the customer service. Action Plan for Implementation Evidently, the statement if objectives can only suffice through a detailed action plan. Consequently, the subsequent sub sections provide a succinct action plan for the employing organization. Recruitment In the event of looking for exemplary customer care staff, recruitment plays a key part on laying the foundation (McMillan, 2010). To this end, the recruitment process aids in the selection of competent customer care staff that will guarantee successful implementation of the statement of objectives. Evidently, recruitment involves the interview, screening and eventual hiring. Moreover, in order to ascertain the right candidates of the job are hired, specific attributes need to be assessed in the recruitment process. These include; experience, skill, attitude towards people and customers, flexibility, personality, intelligence, resourcefulness, appearance, and communication skills (McMillan, 2010). Review of Employee Performance The central aim of performance review is to ensure that employees are focused towards consistent customer care. To this end, the review of employees occurs through appraising employees on enthusiasm, customer orientation, flexibility, loyalty, technical expertise, and ability of exercising teamwork (Brown, 2010). Formulation of Personal Development Plans The personal development plans should be formulated to assist employees in the outlining of development goals and come up with a strategy of action (Newby & McManus, 2002). Moreover, the personal development plans should be formulated in periodic cycles after every 12 weeks. Evidently, this will assist in keeping track of customer care progress. Emotional Intelligence (EQ) The employees should be subjected to emotional intelligence tests whereby they place themselves in the customer scenario and establish their perspectives. Moreover, the emotion intelligence tests help to determine the emotional temperatures of employees when dealing with clients and device methods of controlling such temperatures. To this end, employees develop a greater understanding of the customer needs due to better relationship with the clients (Cooke, 2008). Reviewing and Refreshing Training and Development. The best performing companies often exercise continuous mentorship, coaching and training of employees and managers. To this end, the refreshing and renewal of training is a an area of priority in achieving the statement of objectives. The process of reviewing and refreshing entails development of employee standards and evaluating the performance of employees through customer focus groups, personal visits, questionnaires and surveys. Moreover, refresher training courses for employees, guideline requirements and checklists are essential methods. The reviewing and refreshing of employee performance aids in the boosting of motivation and morale needed for quality, customer care (Cooke, 2008). Conclusion In the contemporary world, the wide varieties of businesses have continuously adopted innovative ways to increase their competitive advantage. To this end, the essence of customer care service has become increasingly acknowledged. Evidently, an efficient customer care service has grown more pertinent in the attraction of new customers, retention and increasing of profitability margins. Consequently, both managers and subordinate employees are expected to acquire and develop excellent customer service skills and attitudes. Furthermore, by acknowledging that the profitability of businesses depends on customer satisfaction, customer care service has evolved into a mandatory precinct in the business discourse. Bibliography Applegarth, M. & Posner, K., 2005. The call centre customer care pocketbook. Alresford: Management Pocketbooks. Bee, F. & Roland, B., 1999. Customer care. London: Institute of Personnel and Development. Brown, R., 2010. Understanding your customers' real needs | Marketing Donut. [Online] Available at: http://www.marketingdonut.co.uk/marketing/customer-care/understanding- your-customers/understanding-your-customers-real-needs [Accessed 5 11 2012]. Cooke, S., 2008. Customer Care Excellence: How to Create an Effective Customer Focus. Revised ed. London: Kogan Page. Hayes, J. & Dredge, F., 1998. Managing Customer Service. Cornwall: Gower Publishing, Ltd. Mackay, M., 2010. Exceptional customer service | Marketing Donut. [Online] Available at: http://www.marketingdonut.co.uk/marketing/customer-care/customer- service/exceptional-customer-service [Accessed 5 12 2012]. marketingdonut.co.uk, 2009. Customer care | Marketing Donut. [Online] Available at: http://www.marketingdonut.co.uk/marketing/customer-care [Accessed 5 12 2012]. McMillan, A., 2010. The importance of recruiting the right staff | Marketing Donut. [Online] Available at: http://www.marketingdonut.co.uk/marketing/customer-care/understanding- your-customers/the-importance-of-recruiting-the-right-staff [Accessed 5 12 2012]. Newby, T. & McManus, S., 2002. The customer service pocketbook. 2nd ed. Arlesford: Management Pocketbooks. Peppers, D. & Rogers, M., 2000. The one to one manager real-world lessons in customer relationship management. Oxford: Capstone Pub.. Read More