Many organisations in Singapore and across the globe have embarked on service enhancement initiatives in one form or another in the past 15 to 20 years.
While some have tasted success, there are also many whom I know of who question the returns of enhancing service delivery within an organisation. Some will, undoubtedly, be more willing to focus on the product range and upgrading, while others believe that the battleground can be won with pricing. The objective of this article, of course, is not to dwell on the product nor price topics, but the question of: are there tangible returns to the organisation from a customer-service enhancement? Let’s examine this by comparing several industries.
We will start with the Retail, Food & Beverage and Tourism industries. I think the answer for these sectors come across more acceptable than most: Service enhancement will wage tangible returns, especially if, with today’s competitive landscape, minute differences exist in products and pricing. If an edge is needed, the service difference could tip the scales. Consider the customers’ perspective, all else being the same, “where would you, the customer, take your business to? Would you frequent an outlet that makes you feel good, exceed your expectations, make recommendations and even know your name, or one out of convenience?”
It’s not going to provide a perfect hit on a scale out of 10, but if we can get the customer to return 6 or 7 times, it will provide a significant opportunities to close a (any) deal. It’s about generating revenue, rather than keeping note of costs.
Let’s also consider the Financial Services, Electronics and Manufacturing industries. I say this through my observations having had the pleasure of working with some organisations in these sectors: The real results only materialise if the team, across the spectrum within the organisation, understands the impetus to embrace service enhancement. More often than not, significant improvements and results are difficult to achieve due to a lack of belief in this strategic move. ‘Lip service’ would of course, translate to superficial results. But consider this; if a Financial Institution representative is able to assure you of the circumstances of your transaction, if a sales representative is able to ‘walk’ you through as you purchase your new laptop and if a manufacturing organisation staff listened to your query and provided polished replies – just where do you imagine yourself, as a customer, will purchase your next investment product and electronic gadget? Which brand of foodstuff will you place your faith at in your next visit to the store? What does your ‘brand’ of service offer?
I would also like to propose examining industries with little to no competition. Organisations that enjoy a monopoly in the marketplace (however rare that may be), even statutory boards would be included in this category. There is an increased level of awareness and initiative to enhance service delivery within these organisations as well. Are there returns to be had under such circumstances? I’ve had several opportune moments recently to discuss this matter with some friends. It simply translates to indirect results. That means if you wish to measure the returns, it should be a spin-off effect from the service enhancement.
Make no mistake; being monopolistic has its perks. If we consider the different levels of service we can provide, such organisations can afford to do a little less than the best due to a lack of competition. But enhancing the service delivery could essentially translate to more delighted customers who pay their bills to you on time, customers who would be open to the idea of buying other range of products and services from your organisation and it would also mean, less complaints and returned goods (cost-saving measures).
The bottom-line question for you to consider is: If your organisation is not making a concerted effort to enhance service delivery, how great is the risk of falling behind the competition – as they ramp up their service delivery to customers?
Article by Louie Tai, Senior Consultant with Training Edge International .
Email : louie.tai@trainingedgeasia.com
Website : www.trainingedgeasia.com
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