European businesses prioritise customer service, but are they delivering?

This News article was posted on 07 Oct 2007 .

European businesses are putting customer service at the top of their list of priorities even before profit, a new international survey shows

European businesses are putting customer service at the top of their list of priorities even before profit, a new international survey shows. The study of eight countries announced today by Easynet, the international managed network and hosting company, reveals that the majority of employees in European companies believe customer service to be the most important factor in their business. In the UK, 46% of respondents chose customer service from a list of eight different factors including profit and market share. The next most important "profit" scored only 12%.

Despite these good intentions, customers are still not always satisfied, according to a debate between leading academics and business associations, on http://www.easynet.com .

Martin Molloy, service management director at Easynet, said:

"It's great that people believe their companies put customer service above profit and other factors. Excellent customer service is the foundation of business success, and it's something most companies claim to be good at. But not many have the skills and commitment to follow through on their promise. There is a gap between intent and ability."

Customer service satisfaction is being affected by inadequate manpower and resources and the use of inappropriate communications channels. The Customer Care Alliance found the average time for a call to be answered is 4.9 minutes and three-quarters were answered by an automated response. John Kemp, from the European Customer Care Alliance stated:

"Many customers have experienced significant problems with a service and most companies greet these complaints with a substandard response. They pass customers from high-cost communication channels, such as phone or face-to-face, to low-cost channels such as automated phone responses, call centres or the web. Customers just end up getting angrier and angrier.â"

The best performing businesses are those that place the customer's journey at the centre of policy, said Martin.

"Businesses need to think through their customers' experience. A lot of businesses will place problems into boxes, putting the internal process ahead of an adequate resolution for the customer. At Easynet, we focus on each detail of the customer's experience with us, and aim to provide superb management at every point along the way. Good service gives the customer options and gives an employee ownership over the problem along with the skills and confidence to see it through to its conclusion. "

Hugh Wilson, Professor of Strategic Marketing at the Cranfield School of Management, added:

"The best companies empower employees and think twice before outsourcing their service department. People at the front line know that customers want a relationship based on trust. If customers don't trust you, they will find a reason not to buy."

Those delivering excellent customer service know it is an investment, not a cost. Martin said:

"Investing in customer service usually reduces costs because it is often more efficient to deliver service to customers right first time, every time as well as being the optimal customer experience. It breeds customer loyalty and retention and turns customers into brand champions."