- As a leader, you face many choices when deciding
where and how to improve service.
And the possibilities multiply when analyzing
customer data from sources that range from
social posts to surveys to operational metrics.
So, which issues do you tackle first?
We found there are eight possible factors to consider
when prioritizing customer initiatives.
They include safety.
Johnson & Johnson's fast recall of Tylenol
following suspicions of product tampering
and GM's sluggish response to ignition switch failures
are two dramatic historical examples of different
ways that service played out.
If customer safety is involved,
the issue should be top priority.
Frequency, how often does the issue occur?
Many software programs now wisely warn users
when cap lock is on as they're entering their passwords.
That simple solution has reduced a world of frustrations.
Magnitude, whether frequent or not, the magnitude
of an issue that potentially impacts customers
should be considered.
And timing.
Some issues significantly impact customers, but can wait.
Others need to be handled now.
And even of a more modest impact should be priority.
Customer segment.
This could be tricky because every customer is important,
but most businesses decide it makes sense
to take care of their most loyal customers.
An airline executive once told me they'll hold
a jumbo jet at the gate if they need to
to ensure a top-tier customer makes her connection.
Prevention.
The bedrock principle of effective customer service
is resolving problems before they happen
or before they become larger.
Utilities getting billing questions begin putting graphs
of usage and trends right on customer invoices.
Brand impact.
You want to prioritize actions that protect your brand.
An example is providing effective training
for all employees who directly engage with customers.
When negative videos or recorded calls go viral,
it's too late to argue that hey, that employee was new
or that interaction really doesn't represent
the organization's values.
Finally, strategy is an important consideration.
A bio-tech firm recently added chat capabilities
to key parts of their website where potential
customers were investigating services.
Conversion rates immediately jumped upward.
Determining priorities also involves weighing
customer interests with financial or productivity questions.
But the good news, these interests often
complement each other.
Andy Penn, CEO of the Australian telecom firm Telstra,
recently noted, "Look at where your worst customer
experience is and you'll find an area to improve
productivity and efficiency.
And when you provide better service,
you actually spend less money."
He's right.
In recognizing this, Telstra moved away from
managing handling time of customer interactions
to instead focusing on resolving issues
the first time around, whatever that takes.
In the end, determining what actions to take
can be as much of an art as a science.
This is an area that requires good leadership judgment.
But considering all eight criteria, not just going
after the squeaky wheels, leads to much better decisions.