Second example is Canadian Imperial Bank of Commerce, claiming that “using the Service- Profitability Cycle, has demonstrated that each 2% increase in customer loyalty generates an additional 2% in net profit”.
Latter (mostly in private sector) can be measured through sustained profitability, efficient recourse utilization, “higher levels of customer / client / user satisfaction, reputational enhancement that, in turn, generates grater public confidence”.
The key element here is motivating the employees in a proper way and constant monitoring of the customer service quality.
It is important to involve the employees themselves in the process of deciding about the customer service – it is them who are in the direct contact with clients and meet them most often and that is why they usually have the best ideas concerning this issue.
An infographic by Help Scout shows that while 80% of companies believe they deliver superior customer support, only 8% of customers thought that was the case.
If that statistic is anything to go by, most companies are delivering poor customer service and have significant room for improvement.
It helps business to win clients in an extremely competitive environment nowadays and it facilitates cost–saving.
Large amount of research executed around the world demonstrates that investments into customer service and people yield enhanced organizational results, so there is a high correlation between the customer service quality and profitability.
Company managers forget that front-line determines the success of the company. In light of the recent economic recession, Service Excellence topic is drawing more attention.
We, as a customers, do not care about back-office procedures and efforts, we just want to be noticed, served and that our need will be met, so that we leave our money to the company. It is still well-known opinion that good customer service means few or non customer complaints, forgetting that the Service Excellence is more than that. Being more customer-focused and providing Service Excellence is becoming a significant advantage and performance differentiator for both, private and public organizations.