Developing an Effective Customer Service Strategy for Government AgenciesHave a plan to serve your customers -- How does your agency manage customer service? Do you have a plan, and follow it -- or do you just “wing it”? If you want to get a better handle on your agency’s customer service efforts, here’s a 10-step plan to develop and implement an effective customer service strategy.HowTo.govH2G_a4be945c-2e03-11e2-bb0f-d4b75b280d48HowTo.gov is a website to help government workers deliver a better customer experience to citizens. It’s about sharing new ideas, common challenges, lessons learned, and successes across government. HowTo.gov can help you work smarter, whether you’re on the “front lines” of government customer service; you manage a customer service channel; or you support customers through new media, open government, cloud computing, communications, innovation, or in some other way.Alycia Piazza Content Lead_a4be9786-2e03-11e2-bb0f-d4b75b280d48[To outline] a 10-step plan to develop and implement an effective customer service strategy._a4be9880-2e03-11e2-bb0f-d4b75b280d48Customer ServiceCusotmer IdentificationIdentify your target customers_a4be993e-2e03-11e2-bb0f-d4b75b280d48Step 1Begin by identifying your target customers. Who are they? What do they need from your agency? How, and at what times or places do they interact with your agency -- what are the “points of service delivery”?SegmentationCluster or segment target customers based on their common behaviors._a4be9a06-2e03-11e2-bb0f-d4b75b280d481.1PrioritizationDetermine the priorities of your customer “clusters”._a4be9ac4-2e03-11e2-bb0f-d4b75b280d481.2FocusFocus on customers with high current or future value._a4be9c2c-2e03-11e2-bb0f-d4b75b280d481.3High-Value CustomersWhen possible, focus on customers with high current or future value -- for example, someone who frequently accesses your services. A comparable example is a frequent flier program -- airlines offer a higher level of service (such as early boarding privileges) to their frequent flyers, while still meeting the needs of their other passengers.Non-Target CustomersIdentify the best ways to serve non-target customers._a4be9d08-2e03-11e2-bb0f-d4b75b280d481.4Non-Target Customers... those to whom it is expensive to provide services, or those who might be better served by other means.To target the highest level of service to your “frequent flyers", you also need to identify the best ways to serve non-target customers, those to whom it is expensive to provide services, or those who might be better served by other means. This is a necessary part of a customer focus. One example: a fire department could discourage residents from contacting the department to remove cats from trees by charging a $20 fee for performing the service, and by advertising their busy emergency call load.Customer DesiresDetermine what your customers want_a4be9dee-2e03-11e2-bb0f-d4b75b280d48Step 2Determine what target customers want (not just what they need right now) by considering these techniques: * online customer satisfaction surveys * phone or email survey * in-person meetings or focus groups * user testing * channel analytics (web, phone, etc.) Customer PrioritiesDetermine how target customers prioritize their "wants". _a4be9efc-2e03-11e2-bb0f-d4b75b280d482.1Generally, customers want timeliness, convenience, quality products and services, variety or selection, and protection or security. However, each agency must identify what is most important to its customers.ImportanceWeigh how important the customer-identified "wants" are to your agency. _a4bea2f8-2e03-11e2-bb0f-d4b75b280d482.2Are the services something that the organization does, is capable of doing, or wants to pursue?Capabilities & CompetitorsDetermine how well your agency can meet your customers’ "wants" in comparison with competitors._a4bea488-2e03-11e2-bb0f-d4b75b280d482.3You may think you don’t have competitors, but more than likely you do, especially if you’re producing consumer-related information for the public. Be mindful of who’s doing similar work -- if competing organizations meet or exceed customer expectations, it changes the customer’s frame of reference and increases their expectations.ImpactDetermine which "wants" would most positively impact your agency’s bottom line._a4bea582-2e03-11e2-bb0f-d4b75b280d482.4 (for example, increased compliance with a regulation, more loyalty and trust, or a desired customer behavioral change), and whether those “wants” should be targeted for improvement.CultureCreate a culture of customer service_a4bea69a-2e03-11e2-bb0f-d4b75b280d48Step 3Understanding & ToolsEnsure that employees at all levels understand their customers and are given the tools to serve them well._a4bea7b2-2e03-11e2-bb0f-d4b75b280d483.1In the best performing private companies, CEOs ensure that employees at all levels understand their customers and are given the tools to serve them well.CommunicationCommunicate the impor­tance of customer service and ensure that all employees understand how their work serves customers._a4bea8c0-2e03-11e2-bb0f-d4b75b280d483.2Agency LeadersAgency EmployeesAgency leadership must communicate the impor­tance of customer service and ensure that all employees, even those without direct customer-facing jobs, understand how their work serves customers.InteractionRegularly interact with customers to understand their evolving needs._a4bea9e2-2e03-11e2-bb0f-d4b75b280d483.3ManagementManagement must regularly interact with customers so they understand evolving customer needs. Problem SolvingEmpower front-line customer service workers to solve problems._a4beab04-2e03-11e2-bb0f-d4b75b280d483.4Customer Service WorkersMost importantly, front-line customer service workers must be empowered to actually solve problems on the spot.Service Standards & ExpectationsClearly communicate service standards and expectations_a4beac26-2e03-11e2-bb0f-d4b75b280d48Step 4Service StandardsSet service standards, such as call wait times, claims processing times, and satisfaction ratings._a4bead66-2e03-11e2-bb0f-d4b75b280d484.1Definition & AvailabilityClearly define the standards and make them publicly available._a4beaf64-2e03-11e2-bb0f-d4b75b280d484.2GoalsClearly define goals._a4beb0a4-2e03-11e2-bb0f-d4b75b280d484.3Clearly defined goals helps motivate employees and helps manage customer expectations.Expectations ManagementInform customers when service standards cannot be met._a4beb1e4-2e03-11e2-bb0f-d4b75b280d484.4When service standards cannot be met, customers must be informed -- a non-negotiable best practice in the private sector.ConsistencyProvide consistent service across channels_a4beb32e-2e03-11e2-bb0f-d4b75b280d48Step 5Customer FeedbackCollect customer feedback across the whole customer experience._a4beb478-2e03-11e2-bb0f-d4b75b280d485.1CustomersAgencies should continuously collect comprehensive customer feedback across the whole customer experience -- not just via each channel.Service AdaptationAdapt services to interact with customers, when and how they prefer._a4beb64e-2e03-11e2-bb0f-d4b75b280d485.2As communication preferences change, we need to adapt our services to interact with our customers, when and how they prefer.Cross-Channel ConsistencyProvide consistency of service across channels._a4beb7fc-2e03-11e2-bb0f-d4b75b280d485.3Consistency of service across channels is critical -- a customer who gets an answer on the phone should receive the same answer in-person at a local office, via the website, over email, or via mobile device.VisionEstablish a vision for customer service excellence_a4beb95a-2e03-11e2-bb0f-d4b75b280d48Step 6Customer FocusEstablish a customer-focused vision._a4bebad6-2e03-11e2-bb0f-d4b75b280d486.1Establish your agency’s customer-focused vision using all the information in these steps. The vision statement should be simple and may also identify what the company does not want to be. Sample vision statements include: * "Absolutely, Positively Overnight" by Federal Express * L.L. Bean’s promise of "Guaranteed. Period."; and * Google’s “Do no evil” ReflectionReflect on the vision and goals and the way services are delivered._a4bebc48-2e03-11e2-bb0f-d4b75b280d486.2Continually reflect on the vision and goals and the way services you’re delivering service. Be creative about the ways you create and deliver new services. Be willing to change existing practices to integrate improvements.StrategiesImplement both internally and externally oriented strategies consistent with the vision._a4bebdb0-2e03-11e2-bb0f-d4b75b280d486.3Live up to what you promise by applying both an external and internal strategy that reflect the vision. If your agency doesn’t implement both internally and externally oriented strategies consistent with the vision, you’ll have good intentions but poor customer service.External StrategyImplement an external strategy_a4bebf36-2e03-11e2-bb0f-d4b75b280d48Step 7The external strategy should focus on how your agency’s service is designed, marketed, and delivered to target customers.Cost & QualityTake into account the costs of providing services and ways to minimize those costs while implementing quality control._a4bec0b2-2e03-11e2-bb0f-d4b75b280d487.1Develop the service concept with the frontline worker at its center. Determine the necessary financial, human, and technological resources, as well as how your agency structure and flow can enable frontline workers to deliver excellent customer service.Advertising / Educational StrategiesUse advertising/educational strategies to set appropriate customer expectations._a4bec2b0-2e03-11e2-bb0f-d4b75b280d487.2FeedbackProvide a feedback loop to incorporate customer comments and complaints into the planning process._a4bec468-2e03-11e2-bb0f-d4b75b280d487.3Customer complaints are an invaluable resource. Without them, organizations can’t be successful. Complaints that people bring to your agency are one of the most efficient and least expensive ways to get information about people’s expectations of your agency and its products and services. Studies have shown that customer comments and complaints are a more direct means of getting information than conducting research studies of customer expectations, conducting transaction studies, or reviewing customer expectations in similar industries.Complaint ResolutionEnsure that the complaint resolution strategy supports the customer-focused vision. _a4bec60c-2e03-11e2-bb0f-d4b75b280d487.4Most research shows if customers believe their complaints are welcomed and responded to, they will more likely come back to your organization for a future interaction.Recruitment & RetentionFocus on recruiting and retaining good employees_a4bec7b0-2e03-11e2-bb0f-d4b75b280d48Step 8While Step 7 outlined an external strategy, the next three steps cover, in detail, the internal strategy—how your agency’s internal processes will support the customer-focused vision.Training & Compensation[Ensure that workers are] well trained and fairly compensated._a4bec97c-2e03-11e2-bb0f-d4b75b280d488.1WorkersThe premise is that “capable workers who are well trained and fairly compensated provide better service, need less supervision, and are much more likely to stay on the job. As a result, their customers are likely to be more satisfied…" (Harvard Business Review, 1994).Employee Turnover Maintain a low employee turnover rate._a4becb34-2e03-11e2-bb0f-d4b75b280d488.2Research also shows that employee turnover and customer satisfaction are directly correlated -- typically, the higher the turnover rate, the lower the agency scores in delivering good service.New Hire & Training CostsMinimize new hire and training costs._a4beccf6-2e03-11e2-bb0f-d4b75b280d488.3In addition, it’s commonly noted that employee turnover is an expensive problem, with significant costs needed to hire and train new people.New IdeasFoster the creation and testing of new ideas._a4bed0d4-2e03-11e2-bb0f-d4b75b280d488.4LeadersLeaders must foster the creation and testing of new ideas and be openly willing to change existing practices to integrate improvements.Employee PerceptionsLearn how targeted employees perceive the proposed customer services. _a4bed39a-2e03-11e2-bb0f-d4b75b280d488.5EmployeesAn organization cannot change without the participation of its employees.RecruitmentRecruit employees who support the customer service vision._a4bed584-2e03-11e2-bb0f-d4b75b280d488.6Focus on recruiting employees who support the customer service vision. The costs of employing people who do not support the customer service vision are considerable. In addition, develop career paths that allow successful customer-oriented employees to remain on the frontline.Employee EmpowermentEmpower employees to resolve customer service problems_a4bed7a0-2e03-11e2-bb0f-d4b75b280d48Step 9Customer Satisfaction Empower frontline employees to do what it takes to satisfy the customer. _a4bed99e-2e03-11e2-bb0f-d4b75b280d489.1Frontline Employees Management must support employee empowerment by clearly defining the boundaries of the empowerment, while remaining flexible within those boundaries. This will encourage creativity. In general, rules should be simple and few—Continental Airlines actually had an employee handbook burning party to signify the change from a procedural environment to one of empowered customer service (Spector, 2001).Technology, Information & ResourcesEquip frontline personnel with the technology, information, and internal resources to do what it takes to satisfy customers._a4bedb92-2e03-11e2-bb0f-d4b75b280d489.2Frontline PersonnelCustomersIn addition to skills and empowerment, equip frontline personnel with the technology, information, and internal resources to do what it takes to satisfy your customers.Communications & RewardsDevelop good communications and rewards system_a4beddd6-2e03-11e2-bb0f-d4b75b280d48Step 10Intra-Agency Communication Ensure that divisions and individuals communicate_a4bee222-2e03-11e2-bb0f-d4b75b280d4810.1Ensure that divisions and individuals within your agency communicate. Frontline employees who take customer questions, and other employees who have answers to those question, need a support network. A customer should never have to tell one employee what another employee already knows.Cross-Functional Teams Develop cross-functional teams for operations and improving service. _a4bee4ac-2e03-11e2-bb0f-d4b75b280d4810.2Ask the people who are doing the work for suggestions to improve productivity.Compensation Link employee compensation to customer service performance. _a4bee704-2e03-11e2-bb0f-d4b75b280d4810.3Link employees’ compensation to (and offer rewards for) good customer service performance. Rewards can be money, status, praise, acknowledgement, or perks such as trips, time off, or special events.Employee Satisfaction Measure employee satisfaction regularly. _a4bee984-2e03-11e2-bb0f-d4b75b280d4810.4Finally, measure employee satisfaction regularly.2012-11-13http://www.howto.gov/customer-service/strategic-planningOwenAmburOwen.Ambur@verizon.net