How decision-makers systematically improve customer service

Improving the Quality of Decision Making

The quality of customer care and service is an important competitive advantage. A webcast of Todayus shows how companies design a tailor-made customer journey. Sebastian Zack, Solution Architect at Hitachi Solutions and his colleague Ulrich Scheuber, Industry Sales Lead, explain how knowledge about customers can be transformed into cash. Specialist journalist Thomas Hafen from Todayus moderates the webcast.

At first glance, the thesis "Service quality becomes a competitive advantage" is about promoting growth and reducing costs. In the B2B business, it should be noted that expensive goods - such as machines - can also have resale value for the customer. The experts see this topic integrated into an entire chain, which ranges from the manufacturer to the dealer and the logistician to the service partner and finally to the customer. Companies have to take care of all the links in this chain.

The first priority is to get to know the customer better and to define indicators that measure the success of customer retention measures. Exemplary are sizes such as Alibaba and Amazon, which rely extremely strongly on service. But what challenges typically influence the service strategy? The experts mention three points: first, new service models, second, international competition and third, rapid change.

A single symbol of risk and opportunity

"Does Corona have an effect on service?" Moderator Hafen wants to know. Scheuber comments: "There is a nice sign of risk and opportunity in Japanese!" This means that, especially now, despite all the risks, companies have the opportunity to differentiate themselves through digital services." "Good service is what customers also like to pay for," observes Scheuber. Zack adds: "If I offer the customer a good service right at the first contact, I have the chance that he will stay." Here, B2B has a special feature: the dealer has to position himself vis-à-vis the manufacturer - otherwise the manufacturer himself will go to the customer and skip the trade.

Good customer management is based on four questions:

How do I get to know my customer better? How do I convert this knowledge into better service? Which key figures do I use to measure the success of my measures? How do I develop my customers into brand ambassadors?

But what prevents companies from successfully implementing customer relationship management plans? 

Zack identifies three levers: too little automation, lack of transparency, and lack of agility. Decision-makers can solve this by focusing on people - not only the customer is meant here, but also the employee with his or her preferences in terms of working methods - and derive the processes and then the technology from this." "The platform idea is important," Zack emphasizes. This means that companies must think in communities and integrate all partners instead of forming heterogeneous small islands.

The aim is to become a learning service organization. In fact, however, individual data about customers and partners can be found in many companies." We need a single point of truth, "says Zack, "from big data to smart data!"

"How do I ensure data protection?" asks the moderator. Zack mentions two things: the data protection officer, who actively advises the company, and a sound CRM system." If I proactively point out to customers what data I process about them, this is a successful communication, "he recommends. Scheuber adds: "Customers are ready to release data when they see added value for themselves."

Not only seller, but service provider

"Behind all this is a development that turns the dealer from a pure seller into a service provider." And communication is the basis of good service, "says Scheuber. From Japan, he knows the practice of merging Microsoft business accounts with the private account. A former boss of his always said: "Today the product is part of the service" - once it was the other way round.

How can the success of a company be measured? 

Zack mentions four metrics: the Netpromoter Score, the Customer Retention Rate, the Customer Churn Rate (customers who jump off) and the Customer Lifetime Value (here, for example, it’s about binding customers through subscriptions). As a spontaneous survey among webcast viewers shows, they attach roughly the same importance to all four metrics. Further metrics can be the first-time-fix rate or the "share of wallet" (how much a customer buys from this company and how much in the competition).

At the end of the broadcast, the experts give decision-makers some tips: "Offer the channels that the customer wants," they explain. It is important to gain a 360-degree view of the customer. In addition, delivery and service must be designed as agreed with the customer. Remote maintenance and self-service services, field service and remote support also have positive effects. It is important to be able to draw a mood picture and to evaluate it.