Coalition 'open to customer service'

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Customer service and skills are receiving increasing recognition from the coalition government, according to Jo Causon of the Institute of Customer Service.

What have been the highlights of 2010 for the Institute of Customer Service?

One of the most important things has been that there are clear signs that customer service is really starting to move into the boardroom as a strategic issue.

When I think about some of the conversations that I have been having with senior managers, there is a stronger realisation that customer service only works when you are really aligning your people, your processes and your strategy. I think that, given the economic conditions, we are starting to see this in more and more organisations.

There is a greater understanding that customer service isn’t just a bolt-on activity, it needs to sit at the heart of a business and this movement can be viewed as a significant improvement.

There is also a deeper recognition of the fact that customer service does have a bottom-line impact on return and investment.

If we look at the drivers for this, as consumers and customers we are much more demanding and much more empowered. The rise of social media, and the impact that social media can have, serves as a key example. There are also economic factors. We have less money in our pockets, so we are beginning to demand more and question practice that is not always customer focused.

Organisations are generally waking up to the impact and the importance of service. It has been a good and improving year for service, but there is no room for complacency.

What signals have you taken from the coalition government on its approach to customer service?

We have had a number of very good meetings with the government, so the fact that they are open to customer service as an issue is a good starting point.

One concern is that customer service is still being seen as a consumer issue. More needs to be done in promoting the fact that it is a key competitive driver for UK plc.

This becomes all the more stark when you consider that over 70 per cent of UK GDP is service-related and an estimated 10 million people in the UK need to improve their skills if we are going to meet the ambition of being in the top eight countries globally for skills, jobs and productivity.

This gives the Institute of Customer Service, as a professional body, a fantastic opportunity to lead and develop skills with employers, as government takes less of an interventionist approach.

The coalition has sent out a good message in terms of the recognition of skills. We are however still concerned that perhaps customer service skills are not far enough up the agenda, given the importance of the service industry to our economy.

With extensive cuts in public spending, will customer service be negatively impacted as companies seek to save costs? What would your message be on this?

The current economic situation is obviously challenging for the public sector as well as the private sector, but it brings about great opportunities for innovation. It is not about cutting costs all the time, but rather about driving efficiency and effectiveness. This is now a good time for organisations, whether in the public sector or the private sector, to really think about how they are focusing, driving and delivering their customer service strategy.
It is certainly possible to cut costs, at the same time as not cutting service. This involves innovative thinking.

Our last Customer Service Index, published in July, shows that the levels of customer satisfaction in the UK have been increasing since 2007. As customers we expect and demand more, and it will be interesting to see whether or not this continues. The figures have shown that, whereas 50 per cent of respondees were happy to voice complaints in 2001, now 75 per cent are happy to do so.

What key items of research has the Institute published this year?

Our major study on return and investment, in conjunction with Ashridge Business School, has been very important to the Institute. This will be published in January and is a very extensive piece of research.

We have released two UK Customer Service Index reports this year, which provide regular monitoring of customer service satisfaction levels in the UK.
In July we received very interesting results when asking about how people use social media; for example, one in four consumers would be less inclined to buy online from a website that used no social media tools. This research into social media has created some real opportunities for organisations and employers.

Other research told us that as consumers we want greater involvement with product development, and greater interaction with the organisations from whom we buy products. We also found out that more than half of customers currently post reviews of products and services on a company’s website. I think this will increase.

Another key finding from research was that organisations are too slow to reply to online complaints: 41 per cent of the public view an online facility to provide reviews of products and services as a standard element of a good corporate website; 54 per cent of consumers will use such facilities where provided.

55 per cent of consumers now expect a response on the same day as an online complaint and only 29 per cent receive one, with 12 per cent reporting having to wait at least a month to receive a reply. This research shows the need for better dialogue between consumers and companies when complaints are made online, and reflect that UK businesses are still not handling complaints effectively. It also indicates a need for organisations to consider a multi-channel approach to customer service, which indicates a real need to align activities across and throughout the whole organisation. In any organisation we are all customers of each other.

Going in to 2011, what legislation will most impact on the work of the Institute?

Any legislation affecting consumers will have a huge impact on our work. The most important issue in that respect is the role and the positioning of the professional bodies, and how we work with our employers and our members in ensuring that the skills and capabilities of the population are the best that they can be to help drive UK plc.

I don't believe that legislation is the complete answer in terms of improving customer service. It is important that laws provide a minimal safety net, but good customer service speaks for itself in providing much better efficiencies and effectiveness, creating an opportunity for innovation and enabling organisations to really focus their activities, it is a key competitive driver.

What key messages will the Institute seek to get across in 2011?

The critical point to be made is that, despite the economic challenges, there are set to be fantastic opportunities for customer service professionals and organisations in 2011. As individuals we need to take responsibility for developing our skills; organisations need to place customer service at the heart of their businesses and not be constantly seeking to cut cost, but to drive efficiencies through innovation and truly focus on delivering an excellent customer experience.

The Institute of Customer Service will work with our employers and members to ensure that they ride the recession and are in a better financial position moving forward.