Q&A with St.George Bank Limited - Customer Service Institute of ...

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In building a business case, the champions need to capture all tangible benefits that the company would obtain from implementing the program and then place a defensible monetary value on these benefits in terms of annual savings to the organisation. The goal of the business case is to ensure that the project delivers value greater than the corporate hurdle rate for capital investments. Developing Project Metrics One of the crucial elements of the project charter in the defining phase of a service improvement project is the selection of project metrics. Project metrics selected should reflect the voice of the customer (customer needs), as well as ensure that the internal metrics selected by the organisation are achieved. Metrics selected should be simple, straightforward and meaningful. Metrics selected should create a common language among diverse team members. When drafting metrics for a particular project one should consider how the metrics are connected and related to key business metrics. Typically there is no one metric that fits all the requirements for a particular situation. The first step is to identify the actual costs that are created by bad service. There are two types of costs that can be attributed to ‘Bad Service’: Visible Cost of Bad Service These include the cost of complaints handling, Ombudsman issues and compensation, rework, cost of incorrect invoicing, commission paid to sales people for services later cancelled or compensated, absenteeism and staff attrition, poor ‘word of mouth’ requiring increased defensive advertising resulting in higher customer acquisition costs, etc. Invisible Cost of Bad Service Examples of invisible costs of bad service are multiple contacts and hand-offs to deal with a single issue or complaint driving increased Customer Service FTE, Hidden Activities to deal with poor service problems, lost sales due to lack of confidence in company service standards and ability to meet requirements, lost revenue based the lifetime value of the customer when ‘churn’ is caused by service issues, etc. When organisations start identifying, tracking and measuring both the visible and invisible costs of bad service then they can begin to justify the cost of service improvement projects to deal with these issues. The most common approach used by teams is to understand the size of the prize or total cost of bad service including both visible and invisible. For each project the team will brainstorm metrics, and finally decide what metrics can help them achieve better performance. The team then reviews these metrics with executive management to ensure that they are in synergy with the overall strategy of the business, and an interactive approach may be utilised. Care should be exercised in determining what is measured. Metrics should be based on what, in fact, needs to be measured to improve the process, rather than what fits the current measurement system. Metrics need to be scrutinised from the value they add in understanding a process. Balanced Scorecard Approach To Metrics The Customer Service Institute of Australia advocate the use of a Balanced Scorecard type of approach for the selection of project metrics as a method for ensuring that the project meets both customer and business needs. The Balanced Scorecard approach includes both financial and nonfinancial metrics, as well as lagging and leading measures across the four areas or perspectives: Financial, Customer Service, Operational Processes, and Learning and Growth. Lagging measures are those that are measured at the end of an event, while CUSTOMER SERVICE EXECELLENCE THE MONTHLY MAGAZINE OF THE CUSTOMER SERVICE INSTITUTE OF AUSTRALIA 7
leading measures are measures that help achieve the objectives and are measured upstream of the event. Most Balanced Scorecard metrics are based on brainstorming, however the approach of brainstorming can have limited success in establishing sound metrics that have a good balance between lagging and leading measures. While establishing the right metrics to consider it is vital to decide on the benefits, financial and otherwise, of your organisation’s service improvement program and resulting Customer Service Management System, the total cost of the implementation of a customer service management system requires financial justification. From the identified savings the total cost of the system (implementation, training, measurement of financials, additional headcount to manage the system, annual maintenance etc.) needs to be subtracted to obtain the Average Return per annum, remembering savings made will be ongoing and usually increased over time as the CSIA’s customer service management system becomes more effective and improvements continue. A well framed ‘request for budget’ that addresses bottom-up operational needs and top-down management requirements, along with well quantified financial justification will go a long way in satisfying all relevant stakeholders to approve the funding for the Customer Service Management System. Financial Justification: What is the financial return from the system Total annual savings from a national customer service management system • Total cost recovery savings • Total savings from reduced rework • Total savings from reduced complaints and less escalation • Total savings from better tracking • Total savings from more accurate information from more knowledgeable staff • Total savings from improved equipment utilisation • Total savings from less expedited and incorrectly routed freight • Total savings from reduced complaints and ombudsman or Ministerial issues • Total savings from reduced credit notes, discounts & compensation • Total savings from reduced inspections • Total savings from reduced FTE and staffing turnover CUSTOMER SERVICE EXECELLENCE THE MONTHLY MAGAZINE OF THE CUSTOMER SERVICE INSTITUTE OF AUSTRALIA 8
Page 1 and 2: customer service excellence The Off
Page 3 and 4: St.George Bank Limited Antoine Casg
Page 5 and 6: St.George Bank Limited…continued
Page 7 and 8: Service Manager Service M anager St
Page 9 and 10: New 100% Government Funding for CSI
Page 11 and 12: u Develop and assess the success of
Page 13 and 14: *Terms and Conditions based on the
Page 15 and 16: Certied Customer Service Manager Co
Page 17 and 18: Winning back lost custom and reputa
Page 19 and 20: A little considered factor in justi
Page 21: The diagram below provides a framew
Page 25 and 26: A Key Tool in CSIA’s Methodology
Page 27 and 28: Many times projects actually report
Page 29: I just wanted to drive home that po

Q&A with St.George Bank Limited - Customer Service Institute of ...

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