1 Designing a Customer Service Strategy JF -TANZANIA
2 Overview of the PresentationACCION’s approach Objectives Systematic process Value proposition Customer Service Strategy Defining “good” service Key operational components Implementation plan Expected outcomes
3 Objectives Design, develop & implement a customer service strategy, with two distinct components; To develop a organizational culture oriented around the client – internal as well as external To focus strategy on the most attractive customer segments Integrate and institutionalize the strategy Harmonize the service strategy with the sales & marketing efforts, as well as operations area Integrate the customer service function and consolidate the organizational structure Design, develop & implement a customer service strategy, with two distinct components; To develop a organizational culture oriented around the client – internal as well as external. Basic tenet of all customer service: if you do not treat your “internal clients” (i.e. Your staff) well, you can never expect them to deliver quality customer serivce to the external client To focus strategy on the most attractive customer segments Integrate and institutionalize the strategy Harmonize the service strategy with the sales & marketing efforts of both SogeSol AND SogeBank Consolidate the organizational structure & integrate the customer service function into SogeSol.
4 Developing a Service Strategy: Systematic ProcessPhase 1: Analysis & Preparation Phase 2: Design & Development Phase 3: Pilot Test Phase 4: Roll Out & Transfer Analyze the situation: Diagram & revise processes to define baseline situation Collect information on the competition & industry standards Gather client information (data mining &/or primary research) Analyze information & develop benchmarks Prepare proposal & form working group Develop the strategy: Determine the relevant segments Review the degree of alignment of the offer & competitive advantages Define areas of improvement & strategies by segment Analyze cost- benefit of technological support (help desks, 800 #s etc) Define new processes and objectives Prioritize activities Implement Pilot: Establish pilot parameters Finalize budget Establish operational requirements Test tools Prepare pilot site Train personnel Implement pilot Supervise & monitor Adjust strategy Define conclusions Integrate strategy in the institution Define strategic & operational implications Develop support materials Establish an action plan by region Train personnel Modify / upgrade systems Implement roll out Define follow up and monitoring plan Establecer los términos de referencia Evaluar las propuestas y elegir la firma Desarrollar el cronograma y presupuesto
5 Phased ImplementationMo 1 Mo 2 Mo 5 Mo 6 Mo 7 Mo 3 Mo 4 Analysis & Preparation Design of Strategy Pilot Test Análisis – trabajos anteriores; raw data Transfer & Roll Out Evaluation & Follow up
6 ACCION’s value added Specialized “Marketing & Product Development” Unit Systematized process for developing a customer Service Strategy based on: Best practices in the microfinance industry Innovations in the corporate sector (CRM, balanced scorecard etc.) Segmentation, based on: “Attractive” clients (loyalty, risk, cost, mission etc.) Profile & performance of clients (“data mining”) Needs y preferences (qualitative research) Institutional focus: integrated approach to service Specialized “Marketing & Product Development” Unit Systemmatized process for developing a customer Service Strategy based on: Best practices in the microfinance industry Innovations in the corporate sector (CRM, balanced scorecard etc.) Segmentation, based on: “Attractive” clients (loyalty, risk, cost, mission etc.) – poverty, rural. Attractive based on priorities of institution Profile & performance of clients (“data mining”) Needs y preferences (qualitative research) – though first two techniques are more quantitaitve, also use qualitative approach Institutional focus: integrated approach to service – throughout entire institution; touches all areas
7 Customer Service Strategy: ComponentsCustomer Service Objectives: Institutional Vision Definition of “Customer Service” and Goals Priorities from view of clients– internal & external Industry norms and benchmarks Conduct Competitive Audit and Analysis Key Elements of the Strategy Analysis of research results (market & institution) Areas identified that require change Implementation Roadmap Prioritized recommendation for changes Outline timing and major deliverables
8 Loyalty Strategy Loyalty Segmentation Institution CompetitionCustomer Service Processes & policies Personnel / HR Treatment/ Information Channels Product Development Product Place Promotion Price Image Positioing Competitive Advantage
9 Customer Service: External client prioritiesAccessibility: Appropriate product terms (loan amounts & terms, interest rates) Policies are flexible & reflect client needs Speed of Service Rapid renewals Shorter wait time for disbursement Service at bank is prompt (lines, cashiers) 3. Customer Treatment: Staff is friendly, respectful, patient Staff pays personal attention to you Overall service is prompt 4. Preferential Programs: Reduced commissions &/or automatic renewals for good clients Completion of promise/meeting expectations (of benefits for long-term customers) Source: survey research
10 What is “Good Customer Service”?External Client Information and Access: Information: clear, complete, understandable service terms: transparent, straight- forward Flexible policies, feasible requirements & products that meets their needs Treatment: Staff: trustworthy & honest Staff: friendly, respectful, patient & accessible (personalized service) Staff: effective, helpful & able to answer questions Service: prompt & punctual Preferential programs Internal Client Information: Information: full disclosure; no surprises Clear, established communication channels Treatment: Respect: Authority (to make decisions & adjustments) Responsibility, but also support (tools, training, vehicles, budget etc.) Recognition carrots as well as sticks Qualitative as well as $ Reciprocity Source: focus group research Support: tools, training, budget (for tranpsortation), vehicles
11 Customer Service Strategy: Key ElementsKey Elements of Customer Service Strategy: Analysis of research results – institution, market & industry Areas requiring change Prioritized recommendation for changes These elements include: Delivery Channels: consistency across touch points Policies & procedures: changes needed to support goals Operations: processes and procedures to modify Human Resources: organizational changes required Technology: systems and data needed Communications: supporting materials and information to communicate internally & externally
12 Strategy Framework Market ResearchUnderstand client profile & preferences Market Research Leadership Customer service vision Identify institutional capacity / competency to meet client needs Map customer experience (touchpoints, moments of truth etc) Client-centric culture Service Benchmarks Internal Clients Job satisfaction Environment of innovation & feedback Good “fit” between skills & responsibilities Empowerment Plan de Satisfacción del Cliente Key strategy components: Problem solving Complaint management Post sale support Training Communication channels Policies & processes Products Feed back Ooperations Human Resources Communication – Internal & external Technology Loyalty, preference, retention & referrals
13 Framework: Alignment Successful StrategiesProfile & preferences of target market Competitive advantages of the institution Successful Strategies
14 Example: Delivery ChannelsPossible Solutions Training Training to review customer service philosophy & responses Create service model: brand promise Branches need to be more effective at service delivery More accessible branches More information outside & inside branch Explore new channels Hiring & Performance Create incentives for loan officers to speed up service (such as same-day renewals/approvals) Incorporate customer service functions into job requirements (attitude, profile, etc) Incentives / rewards for good service (e.g. Incorporate treatment ‘score’ into cashier performance review) Monitor customer treatment across branches Current Situation Speed / Ease of Service Disbursement wait time too long Service hours prevents punctual client payments Branch locations are not easily located branches do not designate “client service area” nor steps of process Treatment Lack of respect shown by cashiers / unfriendly Calls put on hold or deferred
15 Customer Service ManualCustomer Feedback Loop Customer Experience Evaluation (analysis of “end-to- end” customer experience) Customer Handling Procedures: Routing; escalation etc based on nature of inquiry; type of client etc. Customer Knowledge Management Plan information collected on clients Reports generated etc Loyalty Programs: recognition, rewards
16 Customer Service Strategy: Road Map for ImplementationNext Steps for Implementation: Prioritize Maximize value for the client Determine feasibility and strategic importance Conduct a cost-benefit analysis Define Areas involved Staff Functional areas Outline responsibilities & timeline Establish Road Map and key deliverables Estimate Available Budget
17 Customer Service Strategy: PrioritizationPriority for the client based on perceived value LOW MED HIGH PHASE II I PHASE III Cost & Complexity of Implementation Phase I: Phase II: Phase III: > 2004
18 Desired Outcomes Develop a customer-focused orientation throughout the organization Increase satisfaction among existing customers Improve loyalty of customers, especially most “attractive” Improve overall service performance and competency across regions Demonstrate consistency across all service channels Enhance image and competitive standing in the market Attract and convert new customers via good service