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					Technologies and Processes to Optimize Contact

      Customer-Oriented Methodologies




                 Nari Kannan
                    Ajira
              nkannan@ajira.com
    Customer Service Perspectives!




2
                                  Agenda

       Customer service optimization methodologies
       Traditional methods
           Drawbacks
       Customer-focused methods
           Why customer focused methods
           Methods
              Service Blueprinting
              Poka Yoke Methods
              Quality Function Deployment for Services
              Non-value Added Analysis

3      Conclusions
               Customer Service Optimization

       Balancing needs of customers with
        organizational resources
           People
           Skills
           Time, Seasonality
       Traditional methods
           Acceptable wait-times based on skill level
           Interactive Voice Response
           Voice Recognition
           Work Force Optimization
           Escalation
4
           Drawbacks of Traditional Methods

       Focused on the organization, not the
        customer
       Forces customers into non-value adding (for
        them) activities
       Forces customers to do activities that are
        ideally done internally in the company
       Produces re-work and customer
        dissatisfaction sometimes
       Frustrated customers “drop out” - may be lost
        forever
5
                   Customer Focused Methods

       Characteristics of Customer Focused Methods
           Focuses on customer needs
           Eliminates non-value added activities
           Eliminates mistakes reducing rework
           Leverages technology to provide 24/7 self-service
            options
           Designs service after taking into account precise
            customer needs
           Service infrastructure does not dictate service
            process
6              “Tail does not wag the dog”
                 Customer Focused Methods

       Some Caveats
           Subject is too vast, this is just a sampler
           List not exhaustive
           Each method deserves a full course, here it is only
            a sampling
           Half-hearted implementation more disastrous than
            none!
           Organizational culture key to successful
            implementation of these methods

7
                 Customer Focused Methods

       Sampling of Customer Focused Methods
           Service Blueprinting
           Poka Yoke Methods in Service
           Quality Function Deployment in Service
           Non Value Added Analysis




8
                         Service Blue-Printing – What is it?

                                                                                      Customer Leaves with Video
          Customer Enters




                                                                                        Customer Receives Video
             Customer                 Customer                Customer Decides on
                                                                                            and Either Change or
                                                                   Payment Form
       Reviews Selections        Decides on Selection                                       Credit Receipt to sign



    Line of Visibility                               Got It                               Signed Credit Receipt


                                    Clerk Receives             Clerk Receives Cash
                                          Request                    or Credit Card
                                                                                         Clerk Gives Customer the
                                                                                             Video, Change or for a
                                                                                             Credit Transaction, the
                                                                                                   card and the
                                                                                              transaction document
                                                              Clerk Makes Change                   to be signed
                                 Clerk Retrieves Video
                                                                    or Processes
                                                                     Credit Card




9                        Service Blueprint of a Customer Renting a Video
                   Why Service Blue-Printing?

        Identify customer touch points clearly
        Uncover potential customer service system
         shortfalls
            “Fail-points” Identified
        Use as process documentation and training
         tool
        Analyze process for speeding up service
            Identify customer value adding steps Vs non-value
             adding steps
        Plan fail-safe procedures for “Fail-points”
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                          Uses of
         Service Blue-Printing in Customer Service

        Capture and analyze multi-media customer
         touch points
            Voice, IVR, Voice Recognition, Text Chat and E-
             Mail
        Banking – Teller Operations
            Multiple services by same person
        Telecom – Services and Support
            Value added services cross-sell/upsell
        E-Government
            Web-based 24/7 Web Touch points
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     Poka Yoke – What is it?




12
                    Poka Yoke – What is it?

        Poka Yoke is “Mistake Proofing”
        Typical customer service mistakes:
            Doing work not requested
            Work completed in the wrong order
            Failure to acknowledge the customer
            Failure to listen to the customer
            Failure to remember the steps in the service
             process
            Failure to follow system flow
            Failure to follow instructions
13
                         Poka Yoke Methods

        Mistake proof systems and procedures
            “Be More Careful next time” Not very effective in highly
             repetitive processes
            Designing in Fail Safety in Software & Paper Processes is
             the right way!
        Training and Obsessive Adherence Checking for
         Processes
        Mistake proof Customer End and Server End of
         customer service
            IVR and Voice Recognition at Customer End
            ALL the necessary information at the Server End when the
             customer is on the phone or on chat!
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                            Uses of
                 Poka Yoke in Customer Service

        Front-office Customer Service Activities
            Server Errors
                Task – Work not requested
                Treatment – Failure to acknowledge the customer
                Tangibles – Failure to read documents
            Customer Errors
               Preparation - Failure to understand role in the transaction
              Encounter – Failure to remember steps in service process
              Resolution – Failure to execute post-encounter actions
             (Chase and Stewart, 1994)
        Back-office Customer Service Activities
            Similar to manufacturing – Mistake proof process
15
     Nature of Customer Requirements




16    Kano Analysis of Customer Requirements
     What is QFD? – House of Quality




17
                  House of Quality Components

        Customer Requirements (HOWs)
            Service Characteristics required by Customer
        Technical Requirements (WHATs)
            Service Features derived from requirements
        Planning Matrix
            Relative Importance of Customer Requirements
        Interrelationship Matrix
            Interrelationships between Requirements and Features
        Technical Correlation (Roof) Matrix
            Technical Requirements that Support or Impede each other
        Technical Priorities, Benchmarks and Targets
            The Plan!
18
                              Uses of
                      QFD in Customer Service

        Non-reactive design of services
            Competition does not set the agenda, customer does
        Very useful in the Indian context
            Language, cultural differences, local business practices
             dictate design of services
            Very different from Europe or the U.S – homogeneity within
             each country
        Systematic gathering of requirements leads to
         innovative services
            fill hitherto un-served or under-served needs
        Systematic customer-led prioritization leads to sane
19       ordering of service roll-outs
     What is Non-Value Added Analysis?




20
             Non-Value Added Analysis Methods

        NVA analysis identifies process steps that do
         not add value directly to the customer
        Process steps could be:
            Value-Adding Steps – Paint Cabinet
            Non-Value Adding Steps – Calculate Invoice
            Mandatory Steps – Building Code Inspection
        Eliminate non-value adding steps
        Shorten value adding steps and mandatory
         steps
21
                              Uses of
             Non Value Added Analysis in Customer Service


        Eliminate process steps reducing cycle time
        De-sequence process steps after analysis
             Use of technology – Web, Phone/IVR, Voice
              Recognition
             Example - College applications online - process
              steps can be completed in any sequence
        Sometimes competition will force companies
         to do NVA analysis
         –    Online mortgage loans Vs traditional lenders
         –    Online loan processing cycles are about half or
              less that of traditional lenders
22
                             Conclusions

        Traditional Customer Service Optimization
         methods focus on the Organization
        Customer-focused methods
            make it easy for the customer to do business with
             you!
            look at your processes from the customers’ point of
             view – why should they care?
            are more efficient and effective because of higher
             quality, less re-work and increased satisfaction
        Organizational commitment is key
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posted:2/23/2010
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