Retaining customers in today's economic climate
Achieving customer service, loyalty and retention - today
For some time, ‘fit for purpose’ has been a key business mantra. In the current economic climate, you could add ‘fit for our time’.
Using the ‘fitness’ metaphor implies some form of on-going corporate training programme in order to keep individuals’ skills sharp and organisations supple. So, while formal training is one of the first budgets to suffer in an economic downturn, organisations need to continue to remain competitive – gaining and keeping customers – and thus they need to develop training programmes where the accent is placed less on formal learning and more on ‘learning smarter’. This means building an organisation’s performance and competitiveness by gaining ‘employee engagement’.
Alistair Morrison, managing director of organisation development specialist, Echelon, explained: “Employee engagement is a deeper commitment to the success of the organisation than mere ‘employee motivation’. We have found that employee engagement is built on effective internal communication – especially in today’s economic climate, which is characterised by change and uncertainty.”
Key drivers to change include:
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Customer service: the challenge of meeting continually shifting expectations and calibrating the organisation to deliver delight at every customer interface.
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Competition: the continuous need to improve product quality and process productivity, along with the need to reduce costs and time taken to meet customer needs.
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Innovation: the culture of contributing; successfully exploiting new ideas, and having the organisational flexibility to launch new products and services efficiently.
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Regulation: the ability to operate within legal and industry compliance frameworks, adapting to changing regulations.
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Information technology: the introduction and/or refinement of technology to drive and support performance improvement.
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Human resources: the recruitment, development, retention, performance management and support of the organisation’s people.
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Strategy: the transformation of the organisation through acquisition and merger, diversification or consolidation.
“Sustainable success in relation to any of these depends on people and process being closely aligned with strategy and having an adaptability to exploit opportunity,” said Morrison, whose company espouses a four stage cycle of research, design, implement and sustain in relation to business success – defined as retaining and gaining customers through understanding your organisation’s ‘service DNA’.
“Service DNA is what your customers really want from your service and is dependent, in part, on the promises you make to them,” explained Echelon’s director of consulting, Jenny Hill. “What customers want is always specific and easily deliverable - but generally inconsistently applied across the business. But, once staff understand what customers want specifically - and the positive effect consistent delivery of it can have on their jobs and relationships - they willingly embrace its adoption and keep up the good work with the help of simple reminders.”
Hill believes that four ways to create customer loyalty are to:
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Know who your customers are.
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Ensure the service you deliver at all interfaces is consistent, because inconsistency is a key issue in customer defection.
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Understand the specific and frequently unique expectations customers have of your service.
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Keep your product/service fresh – by asking for specific customer feedback.
To deliver this, she said, you must:
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Ensure all functions deliver the same branded experience - as consistency is crucial.
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Train all frontline people and ensure that this is sustained with regular work-based reinforcement – so that commonsense becomes common practice.
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Make customers’ specific and practical expectations into regular internal communications and publish the results.
“You need to get your staff to understand the unique characteristics of the brand promise and delivery that motivate the behaviour of your customers,” added Morrison. “Then you implement the processes, behaviours and motivation in order to deliver a quality customer service experience and sustain the level of service consistently at every point of customer interaction to drive customer retention and advocacy and bottom line performance.”
Since employee communication needs to be planned, kept fresh and provided for each audience in an appropriate ‘voice’, Echelon works with clients to design and implement effective communications programmes that deliver employee engagement. These programmes include a combination of consultancy, internal communications, training, self-paced learning materials and various performance support tools and techniques.
To date, Echelon’s ‘service DNA’ programmes have seen:
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A 40 per cent reduction in complaints in one passenger transport company.
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A 65 per cent increase in compliments sustained throughout 2008 by this same company.
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One NHS Trust - over two years - score significantly better on issues that mattered to patients.
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One Council consistently outperforming the top quartile for customer service performance by seven per cent.
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A 40 per cent increase in customer satisfaction in one logistics company.
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A 37 per cent increase in customer satisfaction in one client form the hotel sector.
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A client in the travel industry achieve 50 per cent lower staff turnover than its industry peers.
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Over 1,000 improvement ideas collected in three months from staff at one organisation in the health sector.
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Clients win National Training Awards, a UK Housing Award as well as other awards.
Echelon’s programme – build around the four stage cycle of research, design, implement and sustain - ensures customers increase their trust in the client’s service because the client’s staff understand what matters to their customers and how to deliver consistently on these key expectations.
“We believe the key to creating and understanding customer loyalty is to develop a forensic insight into customers’ specific expectations and create a branded customer experience that measures needs and gets customers to act as advocates of the service,” Hill said. “These measurements then lead to not only increased customer loyalty but also a reduction in complaints, an increase in compliments, regular service users and, in a competitive job market, reduced staff turnover.”
Echelon, Angles House, 210 Sheen Lane, London SW14 8LB; 020 8274 9965



