“We found that there was a cause-and-effect relationship between the two; that it was impossible to maintain a loyal customer base without a base of loyal employees; and that the best employees prefer to work for companies that deliver the kind of superior value that builds customer loyalty… building loyalty has in fact become the acid test of leadership.” Frederick Reichheld, The Loyalty Effect and Loyalty Rules

 For most organizations, the goal of improving customer service levels is an article of faith. And so it should be, because there’s an overwhelming body of research to show that building customer loyalty has a major impact on profitability. In fact, according to one study - based on 46,000 business-to-business surveys - a “totally satisfied” customer contributes 2.6 times as much revenue as a “somewhat satisfied” customer.

Clearly, there are significant benefits to be realized from trying to improve an organization’s service/quality. And that’s why managers devote so much time and money to training programs that “instruct” employees on the specifics of dealing with customers. What these managers don’t understand, however, is that such attempts are largely cosmetic. Real improvements in customer service start with providing superior service and support to the employees themselves.

All too often, this misunderstanding results in sending staff through “smile training,” issuing edicts to be more courteous, or teaching them how to handle dissatisfied customers. In the meantime, processes and systems don’t support frontline servers. Irritants and issues that reduce morale are swept aside as excuses. An airline manager attempted to address the problem of declining customer satisfaction by issuing a directive urging staff to smile and be nicer to passengers. A flight attendant’s response showed how that manager just didn’t get it: “We’re smiling in spite of the fact that we’re doing our job one, two or three flight attendants short, with equipment that often doesn’t work properly and with a product that has deteriorated.”

Harvard professor and author Rosabeth Moss Kanter likens this type of change-effort to putting lipstick on a bulldog. Rather than deal with an ugly and nasty problem (my apologies to bulldog owners), the manager makes superficial changes and tries to pass them off as real improvements. The result of this cosmetic effort is, as Kanter observes, that “the bulldog’s appearance hasn’t improved, but now it’s really angry.”

Taking an organization from good to great customer service ultimately depends on the people who provide that service. It can only happen through the volunteerism - the willingness to go beyond what is merely required - of people who serve on the front lines. Going from ordinary to extraordinary performance happens through the discretionary efforts of frontline staff deciding to make the thousands of “moment(s) of truth” (any time a customer interacts with the company in person, by phone, or electronically), they manage every day as positively as they possibly can. This enthusiasm, loyalty, or devotion can’t be forced on people. It only happens through a “culture of commitment,” where frontline people reflect to the outside the intense pride and ownership they are experiencing on the inside.

Here are some examples of the research showing the connection between internal and external service:

- The best predictor of customer satisfaction among workplace attributes is what Vanderbilt professor Roland Rust calls service climate: “those attributes of overall workplace climate that characterize how well equipped employees are to deliver customer service, such as the adequacy of resources and equipment and job skills development.”

- For every one percent increase in internal service climate there is a two percent increase in revenue.

- In cardiac care units where nurses’ moods were depressed, patient death rates were four times higher than in comparable units.

- Cornell’s School of Hotel Administration found that employees’ emotional commitment and sense of identity with the company is a key factor in providing excellent service.

- A study of call centers conducted by The Radclyffe Group found that “satisfied contact center employees make for satisfied and loyal customers… customers decide whether or not to make future purchasing decisions with a company, or to recommend its services to others, as a direct result of their experiences with a contact center representative… key indicators of contact center representative satisfaction include relationships with co-workers and management, job challenges, and frequency of development or training opportunities… sense of pride with their job and within the overall company.”

- A company’s external customer service is only as strong as the company’s internal leadership, and the culture of commitment that this leadership creates. To paraphrase Abraham Lincoln, our service or brand promise can’t fool all of our customers all of the time. If the service messages are out of step with what’s ultimately experienced by customers, marketing dollars are wasted. And customer dissatisfaction rises right along with staff turnover. Scott Cook, founder of Intuit (creators of Quicken software), puts it this way; “Great brands are earned, not bought. Customer experience is where brand is built, not in the marketing budget.”

To enrol in our courses students can either complete the online enrolment form or contact our office on 3844 5545.

Customer Contact Solutions is excited about working with you in the year ahead!

Vicki Stableford

Customer Service Manager

Austar Entertainment

Pat, Sarah and Troy bring with them a rich tapestry of knowledge and skills from the fields of Customer Service, Retail, Business, Management and the Call Centre Industry, and we feel sure that our clients will benefit from their vast industry experience.

Visit their staff profiles to get to know them better!

Masters Degree in Business Administration; Diploma in Business Management; Cert IV in Assessment & Workplace Training

Pat’s experience in operational management, combined with an MBA and a range of accreditations in the Human Resources field, gives her a strong understanding of the complexity of organisations enabling her to bring theories and business models to life in a practical and exciting way. Pat has facilitated training at all levels in a wide range of businesses and industries over the last 20 years.

Prior to her consulting experience Pat worked in a number of senior management positions in large companies in the UK. She held the post of Regional Operations Director for the Industrial Society, the UK’s largest independent developer of people and advisers to more than 10,000 member companies.  Prior to that she was Head of Surveys and Audits for the same organisation involving major surveys across 18 languages Pat has experienced first-hand the many and diverse problems facing organisations of all sizes and cultures, sharing experience and good practice with them.

In her role as Quality Manager for British Gas Pat was Lead Assessor for 3 years  for the European Quality Award, assessing companies and providing written and verbal feedback to companies to enable them to achieve best practice. 

As a specialist in leadership development Pat has run group development programs and leadership programs, as well as numerous one-to-one individual coaching assignments for a range of senior managers.

During her time with British Gas she also managed the customer contact centre for Southern England and was responsible for the quality of the customer care training.

Troy began his career by serving customers face to face on the retail sales floor, though quickly progressed into management roles.  Despite the change however Troy maintained his enthusiasm for dealing directly with clients, and was always happy to work with his team members to ensure the best outcome for the customer.

Troy’s management skills and his passion for ensuring the success of his teams led him down the path towards training and coaching.  This career decision was also influenced by the fact that most of the training sessions he attended in his career had been “snoozefests” which did not provide inspiration for change and improvement, let alone equip participants with the knowledge and skills to actually implement the changes.  

As a result, it is in these areas that Troy really shines!  Whether he is training Time Management Techniques, Sales, Leadership Skills or anything in between, Troy believes that training needs to be entertaining as well as informative.  Troy brings this approach to all of his training workshops to ensure that participants walk away from every session empowered with the confidence and tools to put into practice all of the skills that they have been taught.  And the proof is in the results - Troy’s participants have gone on to achieve excellent results, not for just days after the session, but for months and years to come.

Australia’s population, like that of most developed countries, is ageing as a result of sustained low fertility and increasing life expectancy. This is resulting in proportionally fewer children (under 15 years of age) in the population. The median age (the age at which half the population is older and half is younger) of the Australian population has increased by 5.3 years over the last two decades, from 31.6 years at 30 June 1988 to 36.9 years at 30 June 2008. Between 30 June 2007 and 2008 the median age increased by 0.1 years. Over the next several decades, population ageing is expected to have significant implications for Australia including health, labour force participation, housing and demand for skilled labour.

At 30 June 2008, Tasmania had the oldest population of all the states and territories with a median age of 39.4 years. The second oldest was South Australia with a median age of 39.0 years, followed by New South Wales (37.1 years), Victoria (37.0 years), Western Australia (36.4 years), Queensland (36.3 years), the Australian Capital Territory (34.7 years) and the Northern Territory (31.1 years).

Tasmania experienced the largest increase in median age over the last 20 years, increasing by 8.0 years from 31.4 years in 1988 to 39.4 years in 2008. The emigration of younger adults from Tasmania to the Australian mainland has contributed to this accelerated ageing.

The number of people aged 15-64 years (working age population) increased by 1.8% (or 249,100 persons) in the year ended 30 June 2008. Western Australia (2.7%), the Northen Territory (2.5%), Queensland (2.4%) and Victoria (1.8%) each recorded growth rates for 15-64 year olds higher than or equal to the national figure. New South Wales (1.3%), the Australian Capital Territory (1.1%), South Australia (1.1%), and Tasmania (0.8%) each recorded growth rates for 15-64 year olds lower than the national figure.

In the year ended 30 June 2008, there were 287,300 young people aged fifteen who entered the working age population while 178,800 people turned 65 years and left the working age population. However, this excess of 15 year olds over 65 year olds is projected to decline over the next decade. The major causes for this decline are because the first cohort of the baby boomers (those born in 1946) will reach the age of 65 years in 2011 leaving the working age population, while the number of 15 year olds entering the working age population will decline due to the fall in fertility and the number of births recorded through the 1990s.

In the 12 months to 30 June 2008, the number of people aged 65 years and over in Australia increased by 67,600 people representing a 2.4% increase. The proportion of the population aged 65 years and over increased from 10.8% to 13.3% between 30 June 1988 and 30 June 2008.

All states and territories experienced growth in their populations aged 65 years and over in the year ended 30 June 2008. The Northern Territory (6.6%), the Australian Capital Territory (3.7%), Western Australia (3.2%) and Queensland (3.0%) experienced the greatest increase in the numbers of persons aged 65 years and over.

Sourced from National Retail Association (www.nra.net.au), 5 January 2009.