Publications |
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Customer Service Quality Concepts A Marketing/Business Perspective (cont'd) |
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How real is your success? The wisdom of the 80/20 principle often erroneously referred to as Pareto's Law tells us that 80% of results come from 20% of our efforts, or that 80% of outputs result from only 20% of inputs, as basis for doing better with less.4 In practice, successful organizations often discover sometimes too late that they are blinded by their own success, after neglecting market research or feedback involving their customers. This neglect can hide some real problems, which then come to light when the customer base, sales or profits begin to erode. These gaps can occur in small businesses when an early relationship between sales success and investment is established, and this relationship continues in use without evaluating actual performance. The resulting gap here involves both hard and soft measures that affect sales progress and excessive investment differently, and so call for more complex solutions than the apparently simple problem would suggest. The risk of not knowing customer expectations and their perceptions of value can result in excessive services, which can become a serious waste of effort when customers cannot comprehend their true value. Depending on strategic objectives, resolution of this type of problem may involve different communications, changing or curtailing the service or its delivery. Research has shown that most customers are reasonable and do not always expect the ultimate in customer service. This latitude between customers' desired level of service and what they are willing to accept as adequate is the zone of tolerance. Understanding this zone of tolerance within the competitive environment offers service process managers the opportunity for redesigning, delivering and communicating more effective services, with higher satisfaction levels; in other words: Getting it right the first time, every time, providing a better service at less cost, in less time and with less effort. Conversely, in the absence of this knowledge, managers wanting "to play it safe" are inclined to provide excessively high service levels. When customers cannot appreciate the resulting benefits, the result is a waste of valuable resources. Only a fool plans to fail. Considerable effort goes into the preparation of successful marketing campaigns, including the delivery of customer service quality. It just makes sense, therefore, to follow through with these plans by objectively measuring and monitoring successes to ensure that you¹re extracting the optimum benefits from your investment and efforts. The secret to marketing success thus comes down to meeting or, within known limits, exceeding your customers¹ expectations effectively and efficiently, as well as being able to determine their and others¹ most likely future needs. Jim Schauer draws on his considerable expertise as a marketing management professional in developing holistic customer-sensitive performance measures and strategic planning. With more than 30 years' experience in analytical research, including providing leadership in service quality improvement for over 20 years, he has served both the public and private sectors in the delivery of financial services, international travel and tourism, evaluation of air, hotel and communications services. Jim is president of Easton Marketing Services Ltd., and can be contacted at: (905) 344-5081, or e-mail at: james.schauer@sympatico.ca. 1Kaplan, Robert S., and David P. Norton, (1996), "The Balanced Scorecard Translating Strategy into Action" Harvard Business School Press, Boston, MS. 2Hammer, Michael and James Champy, (1993), "Reengineering the Corporation, A manifesto for Business Revolution," Harper Business/Collins, New York, NY. 3Hammer, Michael, (1996), "Beyond Reengineering How the Process-centered Organization is changing our Work and our Lives," Harper Business/Collins, New York, NY. 4Koch, Richard, (1998), "The 80/20 Principle The Secret of Achieving More with Less," Doubleday, New York, NY. |
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