1. Institute of Customer Service Customer service - in a class of its own Business Systems (UK) Ltd – annual conference 23 November 2010 Jo Causon – chief executive

2. introducing the Institute of Customer Service We are: independent, not-for-profit membership organisation over 300 organisational members 70% from private, 30% from public and third sectors more than 7,000 individual memberships We aim: to lead customer performance and professionalism to be the first port of call for all issues around customer service We provide: advice, research, professional networks, products and services, awards, national occupational standards, continual professional development and conferences including National Customer Service Week

3. the renaissance of customer service customer service a critical element of business performance a key driver of profit changing relationship between organisations and their customers –customers now hold the power future of customer service –changing attitudes of we, the consumer –challenges brought by technology –changing business models –changing employee engagement…

4. what are the key priorities for customers? overall quality of product / service provided friendliness of staff handling problems and complaints speed of service helpfulness of staff handling enquiries being treated as a valued customer competence of staff ease of doing business with being kept informed

5. characteristics of organisations that deliver world class service deal with problems and queries deliver on the promise make it easy to do business with go the extra mile continually looking at ways to innovate create customer strategy, service delivery and the right culture

6. product development product and service delivery customer relationships - social media - visible, instant feedback the role of technology

7. shift from transactions to relationships move away from one-way mass marketing to customer personalisation, narrow segmentation two-way communications - what products customer would value most at any given time in B-2-B world – focus on maximising value of long-term relationship, not sales about building relationships

8. the direct impact of an engaged workforce 70% of engaged employees have a good understanding of how to meet customer needs as opposed to only 17% of disengaged employees (CIPD) engaged employees generate 43% more revenue (Hay Group) engaged employees: 2.7 sick days per year. Disengaged employees: 6.2 (Gallup) engaged employees are 87% less likely to leave (Corporate Leadership Council)

9. the direct impact of an engaged workforce 67% of engaged advocate their organisations; only 3% of the disengaged do (Gallup) 9 out of 10 of key barriers to successful change, people related (PWC)

10. why does service matter? £15.3 bn - the cost of poor customer service to UK economy annually business abandoned and lost to entire industry - £5.2bn customer churn and defections - £ 10.1bn £248 average annual value of each customer relationship lost 73% of consumers have ended a relationship due to poor customer service consumers aged 27-43 most likely to switch one in four people have left a financial services company or utility provider in the last year following poor customer service Source: Genesys – The Cost of Poor Customer Service: September 2009

11. we have all become more demanding customers/clients/people more willing to complain - 2001 - 50% people were willing to complain about poor service -2006 - that figure had risen to 60% -2010 – now 75% consumers prepared to complain more sceptical reputations hard-won but easily lost ‘generation Y’ discerning, influential consumers – people power challenge/opportunity of using new technology Principal source: ICS National complaints culture survey 2006

12. more willing to complain- more able to do so more disposed to tell others about bad experiences - 81% - 2001 -89 % - 2006 -90% - 2010 more able to do so growth of social media -as consumers we can draw down information more easily -seek tailored solutions both offline and online tell the world when something goes wrong – not just our friends need to look beyond traditional measures of customer satisfaction

13. why does world class service really matter now? economic climate UK a service economy renaissance for customer service – feedback is immediate and visible clear ROI benefits DNA - Impact on culture people and processes shortage of skills - keeping the best clear link between performance of individuals, organisations and UK Plc - service is the differentiator

14. UK customer satisfaction levels

15. loyalty index

16. UKCSI: the top performers John Lewis (88) Waitrose (88) Lloyds Pharmacy (86) SAGA Holidays (86) Virgin Holidays (85) Marriott (85) Marks & Spencer (food) (85) Boots (84) First Direct (84) Marks & Spencer (84)

17. what are they doing to get these results? professionalism commitment to staff genuinely empowering listening building service cultures engaging and championing creating customer strategy, service delivery and the right culture

18. bottom line impact of good customer service top box customer satisfaction 2x likely to renew/stay 3x likely to recommend 24% higher net profit margin 71% higher profit per employee

19. the challenge is to do more with less increased demands come against the backdrop of a recession greater stress among the public falling morale among staff important we encourage and build customer focus –led from the top –programmes built with a core focus on service –each customer is an individual and needs to be treated as such –key is to help staff make the right judgement each time

20. lessons learned customer management is fast becoming a strategic boardroom issue only sustainable competitive advantage customer feedback is immediate and highly visible consumers have the power to shape image as never before strong service leadership is crucial greater empowerment and support for staff

21. Thank you Jo Causon Institute of Customer Service