Introduction To The Customer Service Framework
Introduction To The Customer Service Framework
Introduction To The Customer Service Framework
Framework
Slide 1: Introduction to the Customer Service
Framework
Slide 2: Course Overview
An organization’s customer service framework is essential for providing great products and services to its customers.
As a supply chain professional, you should understand the customer service framework for your organization. It helps
you recognize the importance of customer service to your organization as well as the essential contribution you can
make when working with your customers. Every organization has a different customer service framework, and it is
important to identify the typical aspects of such a framework. This includes the elements needed to ensure that
customers’ needs and expectations are identified, met, and if possible, exceeded.
Identify how core, augmented, and excellent levels of service are perceived by customers.
Identify the strategic importance of excellent service in building and enhancing a company’s reputation and
brand.
Identify the main components of an effective customer service strategy as part of a company’s customer
service framework.
Recognize how relationships with customers are effectively managed through customer-focused service
providers and processes.
Service is provided at various stages during a customer’s relationship with an organization. In addition, service is
provided at different points during a customer transaction, such as before, during, and after a purchase. In some
cases, if a service is being provided to an internal customer, this could be before, during, or after the task. The
service might be provided by different means—by a person, such as a customer orders assistant or a logistics
operator, or by automated systems, such as websites or automated telephone response systems.
Service characteristics are the elements that make up the service provided to customers and can be categorized into
elements—reliability, assurance, tangibles, empathy, and responsiveness—which are well-established requirements
for an organization that delivers services to its customers.
Customer-focused organizations define their service personality by identifying the specific service characteristics they
provide. Service personality is an identifiable set of service characteristics that defines how one company’s service
provision is different from that of its competitors. Customers can then recognize the specific service personality
offered by the organization they are dealing with. A passion for customer service and going the extra mile not only
makes the experience of working with customers enjoyable but also leads to increased customer loyalty. Loyal
customers, in turn, lead to business success.
Core Service
Core service describes the basic service characteristics that you need to provide to customers. While core service
might satisfy customers, it is unlikely to do so for long.
For example, a no-frills airline offers the lowest-priced tickets in the market. Although it provides the core service at
the lowest price—by cutting back on in-flight meals and entertainment—competition from other airlines offering the
same core service will soon encourage it to develop ways of exceeding customers’ expectations beyond its low-price
strategy.
Augmented Service
Augmented service refers to meeting and trying to exceed customers’ expectations every time a customer interaction
takes place.
For example, a car dealership renovated its showrooms and implemented a customer service training program for its
sales and administrative staff. This gave it an edge over other local dealerships, and it was able to increase its share
of the local new car market by attracting and keeping customers.
Excellent Service
Excellent service is what a customer-focused organization aims for. This means your organization is maximizing its
chances of being the market leader, constantly innovating to find new ways of exceeding customer expectations.
For example, the owner of a successful London restaurant, located in the theater district of the city, is a theater fan
himself. He adorns the inside of the restaurant with props from local theaters to give diners a unique atmosphere. In
addition, the owner runs a highly effective training and coaching system for his staff, enabling them to give customers
great service as well as great food. Customers from all over the world come back every time they visit London or go
to the theater. It has become a market leader through its innovative delivery of excellent customer service.
Service Personality
The organization has a well-defined personality that defines the way it delivers service and interacts with its
customers.
Service Culture
There is a culture embodied in the organization’s people that focuses on providing excellent service to both internal
and external customers. Leaders and managers are committed to the service culture. They communicate the
organization’s vision, values, and continuous improvement methods to employees. Employees understand their own
role in supporting the service culture.
Committed Staff
Employees are well-motivated, have a can-do attitude, enjoy working as a team, and support their internal
customers. Professional relationships exist throughout the organization, with high levels of trust, openness, and a no-
blame culture, which encourages continuous improvement.
Customer-Focused Systems
Systems and processes are designed around customers, whether internal or external. There are six fundamental
systems: communication systems; systems for listening to customers and employees; training systems; appraisal,
reward, and recognition systems; performance measurement systems; and service recovery systems.
B2B customers tend to have different expectations from B2C customers because the nature of the relationships is
different. In B2C, although customers develop loyalty toward particular companies’ brands, it is not similar to the two-
way business relationship that exists in B2B. B2B relationships are frequently based on contracts, partnerships, or
alliances between the customer and the supplier.
B2C customers are primarily concerned about the price of the product, its reliability and quality, and the level of
service provided. Purchasing from a supplier with an attractive and identifiable brand is also desirable. In contrast,
many B2B relationships imply a wider and more complex set of customer expectations, reflecting the need of the
customer for a relationship that is reliable and profitable in the longer term.
To understand and meet B2B customers’ expectations, six key actions should be taken to improve the business
relationship and build customer loyalty:
Focus-group interviews.
Customer evaluation interviews by telephone.
Feedback from social media.
Informal feedback from discussions with customers.
Information from service recovery processes, such as information from complaints showing where breakdowns
occurred and what could be done to improve services.
Customer satisfaction questionnaires.
It is important to base customer satisfaction measures on the customer’s actual experiences and perceptions.
Relying solely on customers’ responses to closed questions set by the organization does not provide a sufficiently
accurate picture of the positive and negative interactions experienced by the customer. A complete picture should be
sought, using methods such as customer journey mapping, where each of the key transactions on the customer’s
journey is checked for a positive or negative experience.
Gap analysis uses interviews or questionnaires to capture employees’ views on customer expectations. These are
compared to the views of customers on the service they actually receive. The differences or gaps identify where the
organization needs to improve. In a similar way, the expectations of managers and staff can be compared, showing
the gaps between the planned provision of customer service and the service that is actually delivered. Gaps could
lead to staff training, perhaps to resolve customer service problems more quickly, or to bring staff closer to their
customers.
The gap analysis tool uses performance scores to measure customer satisfaction, and these scores can be used to
benchmark performance.
Define the service profit chain and its relevance to business success.
Identify how companies are considering service excellence as a high priority.
Recognize how service excellence integrates with companies’ other strategic objectives.
Recognize the risks of failing to focus on customer service.
Identify the different ways in which you can maintain your organization’s focus on customers.
The service profit chain allows managers and employees to focus on internal results so they can meet and exceed
external customers’ expectations. This establishes a great reputation for the organization in the eyes of its
customers, which in turn leads to business success. The organization’s customer service strategy ensures that
employees are valued by managers and colleagues. They are given the support and opportunity to develop the skills
they need to deliver excellent service to customers.
However, precisely because customers want to receive service as good as the very best they have already
experienced, there tends to be a gap between the service that customers expect and what they actually experience.
Consequently, delivering the highest standard of service is not always simple and straightforward. The constantly
rising expectations of customers combined with the difficulty many companies experience in successfully
implementing their service improvement plans means that service excellence stays constantly at or near the top of
the agenda when identifying corporate objectives.
Companies could justifiably ask, “Do we need a separate strategy for customer service, or can the achievement of
service-related objectives be included in overall strategic planning?” The answer is that a customer service strategy
should not be entirely separate from companies’ other strategies. Rather, it should integrate with all the businesses’
top-level plans.
However, it can be useful for a company to consider, discuss, and then publish its plan for customer service as a
distinct exercise; communicate to managers, employees, and other stakeholders the need to pay particular attention
to service standards; and focus more on the customer experience than in the past. Whether separate or integrated,
the customer service strategy describes what the business will do in order to meet its objectives and become
excellent at customer service.
It is important to remember that the same principles apply to internal customers. If you lose the trust or confidence of
your colleagues—your internal customers—then you are damaging that strong linkage between excellent internal
service and excellent external customer service.
Face-to-face
By telephone
Through your website
By e-mail
Define the service profit chain and its relevance to business success.
Identify how companies are considering service excellence as a high priority.
Recognize how service excellence integrates with companies’ other strategic objectives.
Recognize the risks of failing to focus on customer service.
Identify the different ways in which you can maintain your organization’s focus on customers.
Corporate Objectives
Since the customer service strategy is the statement of what will be done to meet corporate objectives, those
objectives should be clearly stated. The objectives themselves not only provide the starting point for the strategy but
also act to motivate the organization’s people around a common sense of purpose. It is clearly very important that the
corporate objectives are made real for all employees, and through discussion, work allocation, and target setting,
everyone can recognize their own contribution toward achieving the objectives.
Environment
Because businesses have to compete or meet regulatory objectives, the external environment in which they operate
needs to be understood. Changing external factors, such as the economy, the competitive landscape, legislation, and
consumer needs, all need to be assessed when developing a strategy. For customer service, in particular, the
changing wants, needs, and expectations of customers represent an important part of the environment.
Service Concept
The service concept, which everyone in the business needs to be committed to, and which customers also need to
recognize and find attractive, helps the organization to focus on the value it provides to customers. A service concept
that is distinctive from competitors can provide that value, but it must be achievable and capable of being delivered
day-to-day.
Performance Objectives
Well-thought-out performance objectives are vital. They translate the strategy into activities on the ground, enabling
teams and individuals to focus on the services they provide day to day, confident that, if they achieve these
objectives, it will help the business to be successful.
Operation
At the customer interface, it is people, processes, and technology that are used to deliver excellent service to
customers, so these resources must be consistently deployed in the right combination and at the right times to
achieve the strategy’s aims. Businesses that spend time and effort refining their processes and ensuring that
employees can apply them successfully have a great chance of making the strategy a reality.
Identify the need for skilled and motivated staff when delivering excellent external and internal customer
service.
Identify the different pressures that many professionals face when acting as service providers.
Identify the multiple roles a supply chain professional plays while interacting with a customer.
Recognize the importance of having effective processes in place.
List the benefits and guidelines for working in teams to simplify service for customers.
Recognize the importance of having a committed team.
Customer-focused service providers require well-thought-out systems and processes that have been designed to
make it as simple and straightforward as possible for the customer to complete their business. In addition, employees
must be sufficiently skilled and knowledgeable to perform the processes effectively while being aware of the need to
listen and become close to their customers.
Many service providers face dual pressures: pressure to perform and meet targets within the organization
(organizational pressures) and pressure from their customers (customer pressures).
Complete a task.
Comply with processes.
Manage within existing resources.
Meet targets.
Achieve high performance (as measured by reward and appraisal systems).
Given the dual pressures, service providers need to cope with issues, such as:
Staying motivated.
Being clear on their roles and responsibilities.
Maintaining good relationships with both internal and external customers.
Managing stress.
Order taker—The frontline staff that forms the interface between the external customer and the organization.
Advice giver—The customer often looks for his or her valuable knowledge and advice as to what is particularly
good or what is not worth purchasing.
Image maker—As a service provider, he or she delivers the brand, especially in a B2B organization.
Service deliverer—The customer-facing staff that may be the first and final point of contact for customers.
Problem solver—Most often, the most effective point of service recovery is at the point of delivery. Many
informal problems and complaints are dealt with here.
Trainer and coach—Customer-facing employees must be able to deal with both competent and less competent
customers, and sometimes inexperienced customers. Many customers need confidence building and coaching
to ensure a good service experience.
For example, a sales representative in a B2B organization who is taking orders from customers might perform a
number of processes in a range of situations. These might include:
Team synergy—The skills and experience of the team working in unison are greater than the sum of its parts.
This can produce a more effective response to demands for innovation and customer service.
Team communication—As teams work together to develop clear goals and to improve the processes that they
use, they also tend to develop better communication, which allows them to respond more effectively to
customer needs.
Building trust in the team—As team members work together—overcoming challenges, finding new ways to do
things, and solving problems—people tend to build trust in one another, and in others’ skills and knowledge.
Motivated teams—The team working closely together leads not only to high performance delivering excellent
service but also to teams in which individuals enjoy their work and become highly motivated. This is a route to
a great service personality and to going the extra mile for customers.
A committed team has real benefits for an organization, its employees, and its customers. It:
Allows everyone to pull together, both for the organization and for the customer.
Ensures better knowledge of others’ job roles.
Promotes enjoyment of working with and supporting others.
Encourages increased involvement, job satisfaction, and motivation.
Supports excellent service for internal customers.
Promotes collaboration to meet deadlines or to solve problems.
Ensures better communication between people, functions, and departments.
Identify the need for skilled and motivated staff when delivering excellent external and internal customer
service.
Identify the different pressures that many professionals face when acting as service providers.
Identify the multiple roles a supply chain professional plays while interacting with a customer.
Recognize the importance of having effective processes in place.
List the benefits and guidelines for working in teams to simplify service for customers.
Recognize the importance of having a committed team.
Identify how core, augmented, and excellent levels of service are perceived by customers.
Recognize the strategic importance of excellent service in building and enhancing a company’s reputation and
brand.
Identify the main components of an effective customer service strategy as part of a company’s customer
service framework.
Recognize how relationships with customers are effectively managed through customer-focused service
providers and processes.