There is no single metric against which to benchmark the performance of your customer service organization. It’s like flying a plane—you can’t do it by just looking at your altitude settings. This means that most organizations use a balanced scorecard approach, which includes a set of competing metrics that balance the cost of operations against satisfaction measures. For industries with strict policy regulations, like healthcare, insurance, or financial services, adherence to regulatory compliance is yet another metric that is added to the list.
The set of metrics that you choose also depends on your audience. Customer service managers need real-time, granular operational data. Yet your executive management team needs high-level data about key performance indicators (KPIs) that track outcomes of customer service programs.
So where should you begin when choosing metrics? It’s best to start by understanding the value proposition of your company. For example, do you compete on customer experience, where satisfaction measures are of primary importance, or do you compete on cost, where efficiency and productivity measures are most important?
Once you understand your value proposition, choose the high-level KPIs that support your company’s objectives. These metrics are the ones that you will report to executive management and include overall cost, revenue, compliance, and satisfaction scores. Next, choose the operational metrics for your organization that link to each of these KPIs and support your brand. For example, if you compete on cost, handle time and speed of answer will become your primary metrics. However, if you are focused on maximizing customer lifetime value, first contact resolution will rise to the top.
In customer service organizations, collaboration should take place around cases and content, and should involve not only collaboration between customers and customer service agents, but internal collaboration within the enterprise. Internal collaboration has quantifiable benefits as measured by increased organizational productivity and efficiency. For cases, collaboration helps increase first contact resolution, decrease handle times and increase customer satisfaction. For content, collaboration helps evolve content to be more relevant, accurate, complete, and in line with customer demand. Some of the technologies that help foster collaboration around cases and content include:
Presence indicators, instant messaging, and video chat. These allow customer service agents to connect in real time with subject-matter experts, supervisors, managers, or other agents having the necessary skills to help resolve a question.
Collaborative workspaces. These allow agents and subject-matter experts to share documents and logs about the customer issue, the troubleshooting process, and the results in real time.
Activity streams. These allow agents and subject-matter experts to subscribe to a case and receive notifications of all changes and additions to a case.
Remote support. This allows customer service agents to invite subject-matter experts and specialty agents to troubleshoot software or hardware with a customer.
SugarCRM was kind enough to invite me to its analyst day and conference — a three-day event packed with product, strategy, customer, and partner information. The firm’s focus was clearly on its momentum into the enterprise. Here are my thoughts:
The CRM market still has room to grow. Sugar used IDC’s numbers to project CRM market growth: $18.74 billion for 2012, $19.97 billion for 2013, and $21.37 billion for 2014. Even though CRM vendor solutions are mature, the CRM market has not stagnated.
The SugarCRM 6.5 product. Today, SugarCRM has 1 million users, has seen 11 million downloads, is used by 80,000 organizations, and has 350 partners on five continents supporting the product. Its newest release focuses on usability and performance enhancements. It offers simplified navigation, an enhanced UI design, a new search framework with integrated full-text search, new calendaring and scheduling capabilities, IBM platform support, and deeper integration with third-party apps. Although the product lacks advanced social features and robust analytics, it does provide solid, well-rounded CRM capabilities.
The open source focus. Open source is more than a movement. It provides results by allowing its 30,000-large developer ecosystem to evolve the product in line with customer demand. “Open” is also part of Sugar’s culture — for example, pricing is readily available on its website, and you can try the product for free.
Empowering customer service agents with relevant, complete, and accurate answers to customer questions remains one of the major challenges in contact centers today. The past 10 years have seen efficiency and productivity gains squeezed out of the mechanics of routing and queueing a call to the right agent pool, screen-popping the customer information to the agent’s desktop, case management, and workforce optimization. Less attention has been placed on allowing agents to access information and informally collaborate with one another. Its no wonder that more than 70% of the time of an average call is spent locating the right information for the customer.
In many contact centers, content is created by groups of authors who are disconnected from the day-to-day conversations that agents are having with customers and who are unfamiliar with the language and terms that customers use. All content follows the same basic create-edit-publish cycle, irrespective of its usefulness in answering customer questions.
There are a number of firms that we watch closely at Forrester because they stand out for sustained innovation. Behind the technology giants like Google and Apple, there are a number of established firms that are using technology to adapt rapidly and successfully to changing customer behaviour and needs. One of them is Commonwealth Bank of Australia. Over the past four to five years CommBank has introduced a series of digital innovations to serve its customers better including:
Finest Online. In the course of its "Finest Online" project from 2007 to 2009, CommonwealthBank of Australia redesigned its NetBank Internet banking service with the objectives of building an excellent customer experience and driving online sales. The bank implemented new content and functionality to support the customer journey and integrated new secure site sales processes with in-person channels and the bank's multichannel customer relationship management (CRM) system. The two-year, cross-organizational project boosted online sales, increased customer satisfaction, and improved the bank's image. (Forrester clients can read our case study.)
We live in a world of increasing complexity: an increasing number of communication channels, an explosion of social data, the intertwining of sales, marketing, and customer service activities, and a growing amount of information and data that customer service agents need to answer customer questions. These issues complicate the challenge of being able to provide customers the service that is in line with their expectations — service that keeps customers loyal to your brand yet that can be delivered at a cost that makes sense for your business.
Being able to deliver the right customer service involves:
A good knowledge program is one of the foundational elements of a good service experience. Many informational requests can be easily handled using a simple FAQ, which deflects calls from your contact center and keeps your customers satisfied with relevant answers. Agent knowledge that is the same across communication channels guarantees that your customers receive consistent and accurate answers.
But getting your arms around your knowledge assets and maintaining them is hard work. I use a six-step best-practice framework to get you going with knowledge management:
Align the organization for success. To be successful, you need an executive sponsor who will fund your knowledge program and allocate resources to the effort. You also need to put together a project team, follow proper project management practices, and define a rollout and adoption strategy.
Design a framework for knowledge management. Knowledge base content must be easy to find and use. Before starting to create content, you need to determine usage roles, content sources (i.e., what content lives inside the knowledge base and what content lives outside of it but is accessible via knowledge base searches), content standards, and information architecture and localization requirements.
We all know that the gap between a customer’s expectations and the service they receive is huge. Customers are increasingly knowledgeable about products and demand value-added, personalized service. Businesses struggle with understanding which initiatives will move the needle in a positive direction and are thus worth investing in. Here is the second tip in my 10-part blog series on how to master the service experience.
Step 2: Is your customer service aligned with your company brand?
Meeting the needs of your customers are important. However, it’s just as important to stay true to your brand and design a service experience that supports your value proposition. Customers need to know what your company represents — which is especially important in the message-cluttered social media world that we live in — and have this brand reinforced every time they interact with you during the sales process, and for every interaction after the initial sale.
These companies have aligned their service offering to help reinforce their brand with their customers:
Apple. Its products are high-style and priced at a premium. Apple’s customer service is very much in line with its brand. The firm delivers customer service on the customer’s terms — you can arrange a phone call with an Apple Expert who specializes in your exact question and can talk with them now or later at your convenience. They’ll even call you. You can email Apple or browse its extensive knowledge base.
The statistics that salesforce.com broadcast at Dreamforce last week are impressive: a $2.2 billion annual run rate; 104,000 customers; and 35 billion transactions per quarter (see Benioff's keynote slides here). The conference was attended by 40,000 users, with a further 35,000 joining online. Salesforce.com’s cloud messaging is mature and no longer a focal point. However, what was most interesting from a customer service/CRM standpoint was the focus on the “social customer” and the way that CRM applications need to adapt to accommodate them.
Traditionally, CRM software has been anything but focused on the customer. It has been positioned as software aimed at the business user to increase their productivity and efficiency as they interact with customers, clients, and sales prospects.
Salesforce.com’s new CRM messaging spotlights the customer and the way that customers interact today using the new social channels and loose social processes to research and select products to purchase and get answers to their questions. Customers are also company employees and want to use these channels to collaborate with other employees at work in the same way they use these channels in their personal lives. This means that these social channels and processes need to also extend inside the enterprise. Check out salesforce.com’s interaction map for the social customer: