Customer Service As A Profit Center.
I have a peer group colleague who is the president of a dental insurance company. Over the last five years his company has experienced triple-digit growth. He attributes their success in large part to the high level of customer/member service they deliver to their participating dentists and insured individuals. He and his team developed a hiring and compensation model to support their objective of driving profits through positive customer interactions. He views it as an important part of their marketing efforts.
There is evidence that others are beginning to recognize the same thing. Look at what is happening with online retailers.
Internet Retailer recently released a study that reveals almost 60% of online retailers will add more customer service reps this year, and they will attract and keep them through better pay and better perks.
“The web retailers that are going to turn their customer service center from an average one into a great one are spending the time and money to give motivated reps a clear career path and a chance to advance,” says James Dickie, managing director of CSO Insights, a customer service research and benchmarking firm.
These companies are also enhancing web-based tools that customers can use to get answers when and how they want them. Aberdeen Group research director of customer management David Boulanger believes that “customers like being in charge of their own shopping experience and conducting business on their terms.
“By committing more resources to web-based customer service and taking better care of their best people, retailers have an excellent opportunity to turn their call center into a profit center,” says Boulanger.
From my perspective, every company has some form of a call center. If you are direct marketer, it’s a standard function. But, for others it may come through an account staff, or something as simple as the person who answers your phone.
If we’re going to sustain success, it has to start and end with how our customers feel about their interactions with us.
Examine your enterprise and look at how you handle customer service. Where does that function fit into your profit hierarchy?
