Monday, May 19, 2008

Best Service Is No Service - book review

I have recently finished a very interesting book called "The Best Service Is No Service: How to Liberate Your Customers from Customer Service, Keep Them Happy, and Control Costs" by Bill Price and David Jaffe.

The premise is in the title. Basically they are saying that the way to please customers is to give them what they want right first time so they never have to call the call centre and access the Service Department. They are also very keen on Self-Service. They want companies to provide as much of their offering via the web or IVR (Interactive Voice Response) systems. The book has lots of examples of good and bad cases.

The case that made me laugh was the bank who thought that higher value customers should be given a more personal service. They provided an automated telephone system for lower rated customers to find out their balance but the high value customers were recognised and routed to a call centre agent every time. Obviously people with a lot of money don't want to do thinks quickly and easily they would rather have to talk to someone every time!

The parts about having a system that doesn't generate failure demand I agreed with wholeheartedly, but the over emphasis on self service was a bit strong. They tried to balance it out to say that call centre agents should be able to teach callers how to use the web or phone systems and that you shouldn't have channel wars where the web team and the call centre team try to out do each other. They also said you should make your company easier to contact at the same time as putting more functions onto self service.

Personally I like self service and as long as it is backed up by reliable internal processes such that things go right and I don't have to call a company to get things fixed all the time, then it is a good thing. I just wouldn't want anyone to read this book and then throw everything up on their web site without fixing the broken processes first.

Two more things, they love Amazon. And there is also a weird bit where they draw a Pareto chart for the amount of failure demand for each type (they call failure demand "dumb contacts") then they suggest attaching the cost of resolution. So it ends up that the call type that is 18th in the list for number of calls is the one to tackle first because the cost x quantity calculation is greater for that type of call. I would always start with the problem that is causing the most problem for the customers. And to be fair in the rest of the book they are very customer focused, just in this little section do the authors have their head turned by internal cost saving.

All in all, worth a read for some good ideas, but keep you wits about you and analyse for yourself what it being said.

Best,

Rob

Monday, May 12, 2008

The Customer Sets the Ideal Value

When we consider customer value, we should be aware that this can be quite a subtle concept and that it can vary for the same customer at different times.

The customer sets the ideal value.

We should be familiar with this. If the customer wants it fast, then get it to him as fast as possible. If the customer wants it cheap then do it. The internal workings of a company mean nothing to the customer. They really don't care about targets for Average Handle Time for calls in a call centre or utilisation of servers or the cost of desk space. They just want the service or product they asked for at the right time and price.

But we should wait a moment before throwing our processes and our system on their heads to give the customer what they want. Ideal value is a changeable thing even for the same customer.

When doing a bit of DIY, trying to level a floor in my flat, I sawed through a central heating pipe. What was my ideal value for the service from the plumber? GET HERE NOW! I have my finger on the pipe and the water is going through the ceiling below.

Last month I phoned the same plumber to get my boiler serviced. Ideal value? Convenience of the appointment. I am home Tuesday, but not Wednesday and could do Thursday morning.

Most of the times I buy a book from Amazon I like the free delivery option. I don't care that it takes a few more days to get here. It is a book. What is the rush? Ideal value? Low cost of shipping.

But the other day I had to buy a birthday present at very short notice. (I didn't forget, I just couldn't think of anything until the last minute!) So I ordered from Amazon and was happy to pay the extra for the next day guaranteed delivery. Ideal value? Don't look like a chump with no birthday present to give.

So we need to revise our statement above and say:

The customer sets the ideal value at the time of request.

This is a reminder that your system needs to be able to absorb variety and standardised work will interfere with that.

Best,

Rob