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Customer Service ~ No Longer Just a Sales Function.
By Dr. Rick Johnson, CEO Strategist, LLC
Wednesday, 10th September 2008
 
Customer service has taken center stage with customers - It is the front-line to the customer, the back bone of the business, and the primary influence that proves your commitment to service excellence.

Managers need to evaluate existing operations. Everything from corporate culture to attitudes, reporting relationships, support systems, recruiting specifications, to training needs are the proper focus of management attention. A new business model may be warranted to meet changing customer demands and expectations of your front-line personnel.

The Role of Management
Executive level management must understand the changing role and importance of front-line customer service operations to achieve the core mission of the business, i.e., customer retention, acquisition, satisfaction, and profitability.
 
When managers do not envision the relationship between management practices and front-line actions, the business is not focused on meeting today's customer demands for service excellence. Further, management cannot take appropriate steps to support and train front-line personnel when they do not understand the need for the right support and training, thus core measures of business success suffer.
 
The most successful businesses in any industry are those that maintain relationships through ongoing customer satisfaction earned by meeting changing customer expectations versus those that focus on new business and new sales but lose existing customers. The importance of customer retention and its relationship to profits and growth through existing account penetration and through referrals from existing satisfied customers is well documented...
 
New Customer Expectations and Demands
 
Industry studies position customer service at center stage. They document changing customer expectations. They prove the primary day-to-day contact with all customers, and the only contact with the majority of customers, is the customer service function. Customer service is the customer's window into your company. Through that window, customers see and experience the commitment to service excellence. All companies tout "We have the best service in the industry." Today's customers demand that talking the talk is proven by walking the walk! When a company does not meet new demands of front-line personnel for service excellence as customers define it, customers will readily switch to get what they want.
 
Customer service is the one consistent differentiator in today's economy
 
Customer service personnel influence purchasing behavior by answering questions, offering suggestions, efficient handling of any and all transactions, and helping customers by meeting their specific needs.
 
They develop customer-valued relationships by doing things right the first time.
Make doing business easy by eliminating order errors, improper order documentation, billing errors, and other cost-redundancies.
 
Frontline personnel are a compelling reason for selecting one company over another. Consistent, professional, knowledgeable customer service is critical to business maintenance and sales penetration. Customer demand is forcing new business models for customer service. This has implications for business processes, information technology, recruiting standards, compensation, staff deployment, training, procedures, policies, and ongoing management since the skills and knowledge needed to manage have dramatically changed.
 
Customers seek companies that are organized to meet their needs. They actively seek new forms of competition that deliver what they want. They are not tied to any company that cannot deliver and 'traditional' long-term business relationships are at risk if traditional suppliers cannot meet customer's new expectations.
 
Today's focus on costs affects existing and future business relationships. This focus creates opportunities for companies who are in tune with today's business facts and business realities. Conversely, this focus threatens companies who cling to traditional methods for servicing accounts.
 
Yes, customer demand is forcing us to create new business models for customer service.
Is your customer service model living up to today's customer expectations?
 
www.ceostrategist.com – Sign up to receive "The Howl" a free monthly newsletter that addresses real world industry issues. – Straight talk about today's issues. Rick Johnson, expert speaker, wholesale distribution's "Leadership Strategist", founder of CEO Strategist, LLC a firm that helps clients create and maintain competitive advantage. Need a speaker for your next event, E-mail rick@ceostrategist.com.
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