(link - profile in Linkedin). Olga worked in HR, but a few years ago she left for Spain and, as I understand it, she returns to HR only through transfers)))
The article seems not HR-th, but in fact, I will reveal a secret, in the lists of tasks for HR analytics, customer loyalty management is one of the HR tasks. This article is more of an overview, but let's start with something - this is the first article on my blog about the use of HR analytics in customer service.
So,
The quality of customer service is the key goal of the company. In other words, any company strives to make its customers happy. But how can this be achieved? In our analysis, we look at the factors that can affect the effectiveness of the service, and at the very end of the article we provide a complete list of metrics.
We find in the literature that when workers perform well, their customers:
- feel happier
- More positive feedback about the service
- More satisfied
- More frequent visits to the store
- And buy more!
According to the literature, the effectiveness of customer service depends on several factors. They can be divided into 2 categories: individual and organizational.
Individual Factors Affecting Customer Service Effectiveness
First, consider the individual factors that help an employee provide better service.The study notes that restaurant customers believe that the more expensive the dishes, the tastier they are. So subjective perception is everything.
The fact that visitors price the same food differently depending on the price means that more often than not, the customer experience is more important than the product itself.
The customer experience is born from the unique interaction between customer and employee. Employees strive to fulfill any desire of the client, because they know that when the client feels like a king, he spends more money.
According to the literature, the personality of the employee is an important factor in improving the customer experience.
Character traits such as conscientiousness and extroversion affect the effectiveness of the service. Conscientious people are organized, reliable, responsible and diligent. They usually do what is expected of them.
Extroverts are sociable, talkative and energetic. When interacting with others (customers), they are very active.
In other words, at equal conditions a more conscientious and open worker will provide a better experience for the customer.
Organizational Factors Affecting Customer Service Effectiveness
An article by Ployhart, Iddekinge & Mackenzie (2011) notes that organizational factors affect customer satisfaction with service levels.
The easiest way to improve service efficiency is to create an appropriate “service climate”.
A service climate is an organizational environment that evaluates, encourages and rewards quality service delivery. Such a climate contributes to the development of employees and the improvement of the quality of services.
A study by Ployhart et al. (2011) showed that stores with a higher service climate have higher service quality scores. In this case, the climate level was determined based on the ratings of the restaurant workers (see below).
The second factor is perceived autonomy. The higher the influence of the employee in decision-making, the higher his efficiency.
The reasons can be numerous. More self-reliant workers are more likely to feel responsible and therefore more self-confident. In addition, autonomy can lead to greater decision-making freedom, which in turn allows the worker to resolve problems more quickly.
Interestingly, in the same study (the object of the study is restaurants), staff training did not affect the improvement in service levels.
The participation of employees in training does not necessarily mean that they will gain knowledge or apply new skills in their work.
There is also no additional remuneration for top-level service.
So why is service efficiency so important?
The effectiveness of customer service in the store was determined by how happy the customer is and how often he will come to the store. In other words, the higher the service efficiency, the higher the customer satisfaction and loyalty (Ployhart et al., 2011).
Combining the 2 previous models, we get a comprehensive customer service performance model:
The same study highlights other interesting points.
The assessment of the level of service also depends on the age and gender of the client. The older the clients, the more moderate their assessments. At the same time, women are more likely to be satisfied with the service and are ready to return to the restaurant and recommend it to their friends (high satisfaction and loyalty).
Customer Service Performance Metrics
We propose to evaluate the quality of service according to the metrics mentioned in this article. The following 10 criteria (metrics) can serve as indicators of customer satisfaction.
1. Extraversion
Extraversion is the first major factor in the "big five" personality factors. Extroverts are outgoing, talkative, energetic and persuasive. They are also more likely to strive for excellence. Research has shown that extroverts are more successful at work and have higher (individual) customer service scores compared to introverts.
2. Conscientiousness
Conscientiousness is the second of the “big five” personality factors that is directly related to the achievement highest efficiency in service. Conscientious employees are reliable, responsible, hardworking and purposeful. In addition, conscientiousness plays a leading role in assessing labor productivity in general.
The three remaining factors (openness, friendliness, and emotionality) were not associated with higher service scores.
3. Cognitive abilities
Employee cognitive ability is another indicator of high customer satisfaction. Workers with higher levels of cognitive ability (often measured in IQ) tend to provide better services (Ployhart et al., 2011).
People with strong cognitive abilities will learn faster, absorb more information and analyze it effectively. Therefore, cognition is our third most important service performance metric. Moreover, a visual criterion (proxy) for this metric will be the level of education of the employee.
4. Personnel training
Learning accelerates the acquisition of specific knowledge (Hatch & Dyer, 2004). It aims to improve skills. It has been noted that a more experienced worker provides better service (Ployhart et al., 2011). However, this statement does not apply to all professions. Workers in low-complexity jobs (such as waitering) benefit less from training than workers in more complex jobs.
5. Actual work experience
Actual work experience is another metric to measure service performance, as more experienced workers are better trained and therefore provide best service(Ployhart et al., 2011). For example, typical mistake for a beginner, when a waiter, trying to hold a tray, knocks it over a client with all its contents, can lead to a deterioration in customer experience and a decrease in satisfaction with the service.
6. Service climate
The internal climate of the company is an important factor influencing employee behavior. When an organization has the capacity to deliver quality service, employees know that they are expected to provide superior service and will be rewarded. Working in such a climate brings the best results. It has been proven that the service climate affects the quality of service and the level of customer satisfaction. Climate measurement can easily be done in the form of a survey of workers using a short scale in the questionnaire. An example question for a scale might be: "Does the restaurant measure and record the quality of your work and service?"
7. Local competition
Service efficiency is also affected by local competition. Local can be called competition between several restaurants located at some distance from each other. With a high level of local competition, customer satisfaction improves, service quality is rated higher, and customers return to the restaurant more often.
This is due to the fact that in a highly competitive environment, companies are doing everything possible to improve the level of service.
8. Individual service performance indicators
This metric reflects the quality of service provided by the employee. This indicator can be measured by asking the question: “Are you ready to recommend the service of (employee name) to a friend or colleague?” or using a 360-degree feedback form that asks the client to rate the level of service provided by the employee.
The individual service performance indicator is an output variable dependent on the variables mentioned in paragraphs. 1-7.
9. Team service performance indicators
The effectiveness of teamwork depends on the effectiveness of servicing each employee. A study by Liao & Chang (2014) notes that if an individual store has an above-average individual performance score (item 8), it outperforms the other stores in the example.
In other words, individual service performance indicators affect the bottom-up effect on team performance.
10. Customer satisfaction
Customer satisfaction is one of the most important metrics in evaluating service effectiveness. All previous metrics are just a premise high level customer satisfaction. Satisfaction is measured in various ways. More and more often we express satisfaction by putting a smiley or like.
11. Customer loyalty
Customer loyalty reflects the likelihood that a customer will return to you or recommend you to others. It is interconnected with financial result: Return customers spend more than first-time customers.
Loyalty is measured in a very simple way: by registering the customer's purchase history in a program (for example, a booking system). Having such systems in place can also help improve the quality of the customer experience. For example, most tanning salons record their clients' tanning intensity and duration so they can offer the best service based on their history. Another option is to offer (scannable) loyalty cards.
KPI- key indicators performance of a company or department. The number of KPIs may vary depending on the chosen strategy and is limited only by the imagination of the head of the company. But there are those KPIs that are “universal” for any service department.
How to choose performance indicators for a service?
For example, if the service in the company is considered only as an auxiliary unit, then it makes sense to set such indicators as NPS (customer satisfaction index), response time to a client request, time for a service engineer to leave, time to solve a customer’s problem as the main KPIs. technical support and when leaving the place.
These KPIs, in turn, can be set and taken into account both on average and in more detail: for example, the response time of technical support should be different depending on the category of the client or depending on the client’s problem: the equipment is standing, or it works in a limited mode without any options that are important to the client.
If we are talking simply about a request related to the normal operation of the equipment (for example, maintenance), then it is advisable to set other time standards for the response time of technical support. It makes no sense to set the same KPIs for urgent and regular requests, because this will significantly overload the service, require additional resources and costs.
What might KPIs look like in terms of response time to requests?
For example, you specify that in the event of a critical equipment failure, which entails a stop in the production of a client, his request must be processed within 4 hours. It is clear that there are peak service loads, but on average for 70-80% of applications this requirement must be met. For requests related to normal operation, the processing time of the application can be 3-4 days.
KPI for the time of departure of a service engineer in case of an emergency stop of the equipment can be set, for example, as 2 days in 70% of cases. At the same time, during normal operation ( Maintenance, customer training, etc.) the time of departure can be 4-5 days or more - by agreement with the client.
KPI requirements are determined by the market and market standards. It makes no sense to set minimum deadlines if competitors solve the same tasks for weeks. To get a "wow - effect" your KPI should be 20-30% higher than the standards of competitors at a comparable price.
Of course, if the company does not consider money for the service, then it is possible to recruit such a number of employees that will provide 100% KPI fulfillment even during peak periods. But at the same time, some employees will simply not be involved part of the time. This affects costs, your marginal profit and, as a result, the price that you can offer the customer and the competitiveness of the company as a whole.
KPI for service loading
For an objective assessment of the service load and the optimal costs that your strategy implies (the highest quality, the lowest price, or average indicators when targeting a specific market segment), you need to set a KPI for service load.
IN foreign companies such an indicator is called Utilization and is defined as the ratio of productive hours / available hours (productive hours / available hours). Available hours are the planned working hours for each employee, taking into account vacations, holidays, and weekends. You can take in a certain time period, for example - a month. Productive hours are the time spent directly on solving customer problems. TO productive hours do not include education (training) and illness. You can independently evaluate the load of your service in the presence of statistics. It is best to take statistics on a monthly basis for 2-3 years, then you can assess the impact of seasonality on the operation of the service.
Is your service efficient?
But by themselves, in the context of one company, these data are not sufficient. To understand how effectively your service works, you need to have an idea of the “normal” KPI values \u200b\u200bfor the service departments of other companies. Someone considers a "normal" load of 45-50%, others - 80-90%. Managers see only external manifestations: people are working, there is constant fuss in the service, so everything is fine, no more loading is possible. Or vice versa, if everything is quiet and calm in the service, then people are underperforming, so you need to add tasks to them and reduce salary costs. These are extremely erroneous assumptions. The fact is that there is productive time - aimed directly at solving current problems and unproductive, which, in fact, goes to preparatory work, is lost.
If the service KPIs are set correctly, then the work proceeds according to the pipeline principle, without fuss and noise, with a minimum percentage of unproductive time. If KPIs are set incorrectly (or absent at all), then bottlenecks and overloads periodically appear in the chain of interaction between people and departments.
It can be seen as the movement of a car in a traffic jam: someone slowed down, everyone else slowed down behind him. Then he accelerated - everyone else accelerated. "Ragged" mode of operation leads to peak overloads. This problem is often tried to be solved by taking additional employees. But, firstly, these are additional costs. Secondly, additional employees are more often taken by those who ask, and not by those who really need it.
As a result, nothing changes drastically, it’s just that in one department employees drink tea with cookies, and in another they rush like stung, grabbing 10 projects at the same time and not having time in the end anywhere (here you need to understand that during overloads, when people are often forced to switch from one task to another, up to 20% of the time is additionally spent just remembering the initial and current data for each task, the so-called "learning curve").
The problem is solved, first of all, by optimizing business processes and setting “normal” KPIs for each functional unit - from an individual employee to a division and the company as a whole. But this is a topic for a separate article.
There are other KPIs in addition to Utilization that take into account employee overtime and weekend work. We will not dwell on them, this topic requires in-depth analysis. But it is important to understand that when planning any changes in the company, KPIs for loading are the most important indicators for planning the result that you want to get.
Other important KPIs for the service are turnover per employee, cost per hour, norms contribution margin, expenses for training, administration, etc. we will consider in other articles devoted to the development of first-class service as an important competitive advantage of the company.
20 Sep 2013
Business decisions should be based on performance and KPIs should lead to action.
Performance indicators (KPI) can be called milestones on the road to success in online trading. Monitoring KPIs will help ecommerce entrepreneurs track progress towards sales, marketing, and customer service goals.
A KPI is an easily measurable number or data point used to measure performance against a goal. For example, such a goal for some online retailers could be to increase traffic by 50% over the next year. In relation to this goal, performance indicators can be the number of daily visits or traffic sources ( contextual advertising, search engine optimization or media advertising, YouTube video).
For some purposes, there may be many performance indicators—sometimes even too many—so that they often narrow down to two or three significant data points. KPIs- These are the values that most accurately and clearly show whether the business is moving towards a given goal.
Setting goals and defining KPIs
Defining KPIs starts with clearly setting goals and understanding which areas of the business affect them. Of course, performance metrics can and should be different for every goal and objective of an online store, whether it's increasing sales, improving marketing, or improving customer service.
Here are a couple of examples of goals and related KPIs:
- GOAL 1– increase sales by 10% in the next quarter. KPIs include daily sales volume, conversion rates, website traffic.
- GOAL 2– increase in conversion by 2% next year. KPIs include Conversion Rate, Cart Bounce Rate, Related Shipping Cost Trends, Competitor Price Trends.
- GOAL 3– increase website traffic by 20% over the next year. KPIs include traffic, traffic sources, ad CTRs, social links, bounce rates.
- GOAL 4– cut the number of customer calls by half in 6 months. KPIs include the classification of calls by service, the identification of site pages visited immediately before the call, and the events that led to the call.
It is easy to see that there are many performance indicators, and their importance is directly related to the measurement of progress in achieving the goal. In the fourth example, monitoring which pages are being visited potential clients before calling support makes sense as it helps to identify areas of confusion that will reduce customer calls once resolved, but for Example #3 this KPI is almost useless.
The idea that KPIs should be based on a measurable goal allows for a set of overall performance indicators for an area. ecommerce. We present to your attention 32 key performance indicators in Ecommerce. Although, of course, the matter is not limited to them.
32 KPIs
- Key performance indicators in sales:
- Hourly, daily, monthly, quarterly and yearly sales.
- Average order size / Average check (sometimes called the average market basket).
- Average income per visit.
- conversion rate.
- Percentage of abandoned carts.
- Compare orders from new customers with sales to existing customers.
- Cost of goods sold.
- The ratio of the total available market size to the segment occupied by the retailer.
- Affinity of products (which products are ordered together).
- Product Ratio (which products are viewed sequentially).
- Stocks of goods in the warehouse (inventory levels).
- Competitive prices.
Key Marketing Performance Indicators:
- Site traffic.
- Percentage of repeat visitors.
- Time spent on the site.
- The number of pages viewed per visit.
- Traffic source.
- Time analysis (when visitors arrive during the day).
- The number of newsletter subscribers.
- Text message subscribers.
- The number of chat sessions initiated.
- The number of followers in social networks.
- Volume of paid traffic.
- Corporate blog traffic.
- The number and quality of product reviews.
- CTR metrics for branded or display ads.
- Performance indicators of partner programs.
Customer Service Key Performance Indicators:
- Number emails from clients.
- Number of customer calls.
- Number of chat conversations with customers.
- Average time to resolve a problem.
- Classification of questions.
After setting goals and defining KPIs, monitoring these indicators should become your daily routine. And most importantly: business decisions should be made based on performance, and you should be guided by KPI when performing certain actions.
QUALITY ASSESSMENT OF SERVICE CUSTOMERS DEALERS CENTER
Elizaveta Revenko
student of the Institute of Management, Economics and Finance of the Kazan (Volga Region) Federal University,
Russia, Kazan
Annotation. The quality of service affects the success of the organization, as well as the desire of the buyer to purchase the product and then come back. The buyer is the main person of trade, to whom certain processes occurring in trade organization. First impression of commercial enterprise directly depends on the level of development of communication skills, personal and professional features sellers. Ensuring the quality of customer service is one of the main factors in the competitiveness of a trade organization.
The article discusses the main methods for assessing the quality of customer service, and also proposes a preferred assessment method for the studied dealer center in the Republic of Tatarstan.
abstract. Quality of service affects the success of the organization, as well as the desire of the customer to purchase goods, and then come again. The customer is the main face of trade, which is directed to certain processes taking place in the trade organization. The first impression of a commercial enterprise directly depends on the level of development of communication skills, personal and professional characteristics of sellers. Ensuring customer service quality is one of the main factors of trade organization competitiveness.
The article discusses the main methods for assessing the quality of customer service, and also proposed the preferred method of evaluation for the studied dealer center in the Republic of Tatarstan.
Keywords: quality of service; service; service quality assessment; dealership.
keywords: quality of service; service; service quality assessment; dealership.
Today, in the conditions of strong competition in the market, the quality of customer service becomes a very significant competitive advantage, since the buyer highly appreciates the special attitude within the framework of the service.
Evaluation of the quality of customer service is relevant in the concept of relationship marketing, since it is an integral part of the loyalty management system. According to research on the importance of service quality when buying goods and services, we present the following results, which are displayed in Figure 1:
Drawing. 1. Significance of indicators when buying a product or service
So, the figure shows that the quality of service when buying a product is not in the first place, but it is also significant, and 62% of respondents named this criterion as determining.
Figure 2 shows the main methods for assessing the quality of customer service.
Drawing. 2. Methods for assessing the quality of customer service
Let us dwell on the characteristics of these methods:
- analysis of complaints, claims and suggestions allows you to find out the opinion of buyers, and then correct all the shortcomings that buyers do not like. Information on complaints and claims is contained not only in the Book of Complaints and Suggestions (which is currently not popular with customers), but also in reviews and inquiries on the website, as well as in call center records;
- customer surveys, questionnaires are divided into two ways: conducting surveys offline in the store and conducting telephone surveys. Both of these methods have their drawbacks. In the first case, a small questionnaire is required, since often the buyer is not interested in this, he does not want to waste his time filling out the questionnaire and needs additional motivation, when in the second case the buyer is not always able and willing to talk and answer the questions of the manager (in most cases, clients refuse to answer questions due to being busy);
- among the indicators for assessing the work of personnel include: daily revenue from each employee, the number and percentage of customer complaints about the work of specific employees, the share of revenue from one employee in total revenue per month, etc.;
- "Mystery Shopper" is a very necessary technique that objectively evaluates the factors that hinder the achievement of a high level of service quality for each employee and the entire sales team as a whole.
Consider the advantages and disadvantages of each method in Table 1:
Table 1
Advantages and disadvantages of service quality assessment methods
|
Service quality assessment method |
Advantages |
Flaws |
|
Analysis of complaints, comments and suggestions |
A) Feedback with consumers; b) a detailed consideration of each shortcoming in the work of the organization. |
a) information about deficiencies is available to everyone; b) the complexity of execution due to the strict legal framework. |
|
Customer survey, survey |
a) feedback: question-answer; b) low cost; c) no influence from the interviewer |
a) answers may be inaccurate; b) difficulties in filling out questionnaires; c) subjectivism. |
|
Analysis of various indicators of personnel performance |
a) the totality of all important coefficients, indicators, estimates is taken into account; b) allows you to quickly evaluate the employee and conduct comparative analysis between employees |
a) such an indicator as labor productivity is the most dynamic, and usually changes monthly, but in general it can affect a comprehensive assessment; b) it takes a lot of time; c) the inability to learn about personal qualities employee. |
|
Audit by the "Mystery Shopper" method |
a) a mystery shopper is as close as possible to the image of a real shopper; b) increases the motivation of employees with regular use c) service universality |
a) the need to involve third parties; b) high execution costs; c) subjective result. |
In the car sales market, dealer centers act as a separate economic entity. The peculiarity of their functioning is as follows:
- work with already known goods;
- the ability to choose the product with which the dealer will work;
- opportunity free education from manufacturers to the sales system, marketing, etc.;
- sale of goods at selling prices, which are dictated by the organization producing the goods.
In the Republic of Tatarstan in 2018, more than 25 thousand units of new cars. This figure is 4.6% more than in the previous 2017. Here are the sales statistics for specific brands in 2018 in the Republic of Tatarstan (Figure 3):
Drawing. 3. Top 10 sales brands in the Republic of Tatarstan in 2018.
As already mentioned above, much in the work of a car dealer is dictated by the manufacturing organization, and therefore it is very difficult to compete with other dealers of the same name brands. One of the most important competitive advantage data trading structures is just to provide high quality service.
KAN AVTO-1 LLC ( Official dealer Nissan) is a competitive enterprise, since the organization has all the resources for this. The organization also occupies a stable position in the market, has the opportunity for further growth. The company has a fairly large organizational structure, where each of the links performs its tasks within the framework of achieving the set goals of the Company and maximum satisfaction of consumer requests.
KAN AUTO Nissan Kazan in the framework of assessing the quality of service for its visitors uses two directions: telephone surveys and monitoring reviews on the site. From this we can conclude that the analysis used is rather uninformative. If, on the one hand, during telephone surveys, many respondents refuse to participate in any surveys, explaining this by lack of time, or it is possible to catch a person at the moment of a stressful situation for him, which can also affect the results of telephone surveys, then on the other hand, these are additional the cost of maintaining managers who conduct a telephone survey, which as a result turns out to be of little importance to the company.
In the case of review processing, it is impossible to understand and see the full picture regarding the level of customer service quality. In this case, only an individual approach to each case is implemented and individual work with the offending employee. Such a method cannot sufficiently influence the restructuring of the service culture in KAN AUTO Nissan within the framework of consumer preferences. Thus, in the future, "reviews" will not work. And also there is no systematization of reviews on the site, they are located all together according to the KAN AVTO Group of Companies and, if necessary, looking for reviews for a particular dealer is a very time-consuming procedure and no one will want to deal with it.
When choosing a method for assessing the quality of customer service KAN AUTO Nissan should compare everything with each other. The analysis of complaints, claims and proposals is associated with the emergence of difficulties within the framework of the legislation, registration and filling out requires special training on the part of both employees and customers. The analysis of various indicators of personnel performance requires a lot of time and labor of employees, as well as the availability of reports for evaluation of these reports. "Mystery Shopper" special attention due to the fact that it requires the involvement of third parties, which significantly increases costs.
The advantage is that as a result of the survey, you will receive not only an assessment of the quality of service, but also the information necessary to diagnose the causes of customer dissatisfaction. In other words, after analyzing the results of the survey, you will be able to determine who is to blame and what to do. Customer surveys, questionnaires, you can get not only an assessment of the quality of service, but also the information necessary to diagnose the causes of customer dissatisfaction at a low cost. And also the method is characterized by simplicity of execution, which does not require the involvement of third parties.
That is why KAN AUTO Nissan needs to test a method for assessing the quality of customer service - a survey.
Offline and online surveys are characterized by speed of execution and relatively low cost.
By means of questioning, it is possible to analyze absolutely all the nuances that interest the company, which is why it can be argued that this method is universal and quite effective. Therefore, it is recommended to conduct a survey (questionnaire) of visitors on the level of service in the KAN AUTO Nissan dealership. Customers need to be encouraged to participate in the survey. It can be as an emotional reward - "They care about my opinion", and material incentives(for example, offering bonuses for participating in a survey). Table 2 shows an example customer survey questionnaire:
Table 2.
Questionnaire for assessing the quality of customer service
|
Questions for evaluation |
||
|
Did the sellers react to your coming to the showroom? |
||
|
Did the sales assistant greet you and offer assistance in choosing a car? |
||
|
Has the seller demonstrated an interest in helping you choose a vehicle? |
||
|
Was the seller able to understand your needs correctly? |
||
|
Was he able to demonstrate his exceptional knowledge of the proposed vehicle? |
||
|
Did the seller listen carefully to your questions? |
||
|
Was the seller able to correctly answer your questions? |
||
|
Did the sales assistant resort to the help of another sales assistant due to incompetence in some matters? |
||
|
How focused was the sales assistant on service? |
Thus, conducting online and offline surveys will allow KAN AUTO Nissan to improve its work on assessing the quality of customer service at the dealership. It is the survey that will reveal the point shortcomings in the work of the sales staff, because, as mentioned earlier, the first impression of a trade organization depends on the seller. Questionnaires are recommended to be conducted once a quarter, but it is recommended to develop a new questionnaire every quarter for a comprehensive assessment of the quality of service and timely elimination of shortcomings.
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