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Jo Causon – chief executive. Customer service - in a class of its own Business Systems (UK) Ltd – annual conference 23 November 2010. introducing the Institute of Customer Service . We are: independent, not-for-profit membership organisation over 300 organisational members

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Jo causon chief executive l.jpg

Jo Causon – chief executive

Customer service - in a class of its own

Business Systems (UK) Ltd – annual conference

23 November 2010


Introducing the institute of customer service l.jpg
introducing the Institute of Customer Service

We are:

  • independent, not-for-profit membership organisation

  • over 300 organisational members

  • 70% from private, 30% from public and third sectors

  • more than 7,000 individual memberships

    We aim:

  • to lead customer performance and professionalism

  • to be the first port of call for all issues around customer service

    We provide:

  • advice, research, professional networks, products and services, awards, national occupational standards, continual professional development and conferences

  • including National Customer Service Week


The renaissance of customer service l.jpg
the renaissance of customer service

  • customer service a critical element of business performance

  • a key driver of profit

  • changing  relationship between organisations and their customers

    • customers  now hold the power

  • future of customer service 

    • changing attitudes of we, the consumer

    • challenges brought by technology

    • changing business models

    • changing employee engagement…


What are the key priorities for customers l.jpg
what are the key priorities for customers?

  • overall quality of product / service provided

  • friendliness of staff

  • handling problems and complaints

  • speed of service

  • helpfulness of staff

  • handling enquiries

  • being treated as a valued customer

  • competence of staff

  • ease of doing business with

  • being kept informed


Characteristics of organisations that deliver world class service l.jpg
characteristics of organisations that deliver world class service

  • deal with problems and queries

  • deliver on the promise

  • make it easy to do business with

  • go the extra mile

  • continually looking at ways to innovate

  • create customer strategy, service delivery and the right culture


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the role of technology service

product development

product and service delivery

customer relationships

- social media

- visible, instant feedback


About building relationships l.jpg

about building relationships service

shift from transactions to relationships

move away from one-way mass marketing

to customer personalisation, narrow segmentation

two-way communications

- what products customer would value most at any given time

in B-2-B world

– focus on maximising value of long-term relationship, not sales


The direct impact of an engaged workforce l.jpg
the direct impact of an engaged workforce service

  • 70% of engaged employees have a good understanding of how to meet customer needs as opposed to only 17% of disengaged employees (CIPD)

  • engaged employees generate 43% more revenue (Hay Group)

  • engaged employees: 2.7 sick days per year. Disengaged employees: 6.2 (Gallup)

  • engaged employees are 87% less likely to leave

    (Corporate Leadership Council)


The direct impact of an engaged workforce9 l.jpg
the direct impact of an engaged workforce service

  • 67% of engaged advocate their organisations; only 3% of the disengaged do (Gallup)

  • 9 out of 10 of key barriers to successful change, people related (PWC)


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why does service matter? service

  • £15.3 bn - the cost of poor customer service to UK economy annually

    • business abandoned and lost to entire industry - £5.2bn

    • customer churn and defections - £ 10.1bn

  • £248 average annual value of each customer relationship lost

  • 73% of consumers have ended a relationship due to poor customer service

    • consumers aged 27-43 most likely to switch

  • one in four people have left a financial services company or utility provider in the last year following poor customer service

  • Source: Genesys – The Cost of Poor Customer Service: September 2009


    We have all become more demanding l.jpg
    we have all become more demanding service

    • customers/clients/people more willing to complain

      - 2001 - 50% people were willing to complain about poor service

      • 2006 - that figure had risen to 60%

      • 2010 – now 75% consumers prepared to complain

    • more sceptical

    • reputations hard-won but easily lost

    • ‘generation Y’ discerning, influential consumers – people power

    • challenge/opportunity of using new technology

    Principal source: ICS National complaints culture survey 2006


    More willing to complain more able to do so l.jpg
    more willing to complain- more able to do so service

    • more disposed to tell others about bad experiences

      - 81% - 2001

      • 89 % - 2006

      • 90% - 2010

  • more able to do so

  • growth of social media

    • as consumers we can draw down information more easily

    • seek tailored solutions both offline and online

  • tell the world when something goes wrong – not just our friends

  • need to look beyond traditional measures of customer satisfaction


  • Why does world class service really matter now l.jpg
    why does world class service servicereally matter now?

    • economic climate

    • UK a service economy

    • renaissance for customer service – feedback is immediate and visible

    • clear ROI benefits

    • DNA - Impact on culture people and processes

    • shortage of skills - keeping the best

    • clear link between performance of individuals, organisations and UK Plc - service is the differentiator



    Loyalty index l.jpg
    loyalty index service


    Ukcsi the top performers l.jpg
    UKCSI: the top performers service

    • John Lewis (88)

    • Waitrose (88)

    • Lloyds Pharmacy (86)

    • SAGA Holidays (86)

    • Virgin Holidays (85)

    • Marriott (85)

    • Marks & Spencer (food) (85)

    • Boots (84)

    • First Direct (84)

    • Marks & Spencer (84)


    What are they doing to get these results l.jpg
    what are they doing to get these results? service

    • professionalism

    • commitment to staff

    • genuinely empowering

    • listening

    • building service cultures

    • engaging and championing

    • creating customer strategy, service delivery and the right culture


    Bottom line impact of good customer service l.jpg
    bottom line impact of good customer service service

    • top box customer satisfaction

    • 2x likely to renew/stay

    • 3x likely to recommend

    • 24% higher net profit margin

    • 71% higher profit per employee


    The challenge is to do more with less l.jpg
    the challenge is to do more with less service

    • increased demands come against the backdrop of a recession

    • greater stress among the public

    • falling morale among staff

    • important we encourage and build customer focus

      • led from the top

      • programmes built with a core focus on service

      • each customer is an individual and needs to be treated as such

      • key is to help staff make the right judgement each time


    Lessons learned l.jpg
    lessons learned service

    • customer management is fast becoming a strategic boardroom issue

    • only sustainable competitive advantage

    • customer feedback is immediate and highly visible

    • consumers have the power to shape image as never before

    • strong service leadership is crucial

    • greater empowerment and support for staff


    Thank you jo causon institute of customer service l.jpg
    Thank you serviceJo CausonInstitute of Customer Service