Subscribe

free to biz newsletters

Bizcommunity.com - Daily Marketing & Media news
CRM newsPress offices

Turning customer service into a profit centre

12 Sep 2006 15:271 commentsBizLike
Customer Service Centres have historically been reactive departments fielding customer complaints and providing customer support. In today's competitive world, it's becoming more difficult for companies to differentiate themselves and their products, and the high risk of customer churn means companies need to adopt a strategy to turn customer service into a profit centre.
Customer Service Centres provide a critical link between you and your customers, and can assist in boosting sales. The steps below offer some guidance on how to go about achieving this.
  • Service quality and efficiency are top priority
    Most customers change providers for price and/or service. Assuming your price is competitive, you need to ensure that service quality and efficiency will remain a top priority to retain customer loyalty. It's far easier to sell to existing customers then find new ones.

  • Define a revenue generation strategy
    Track which customers are loyal to your brand, are high value customers and are more likely to buy from you. A large Financial Brand I work with has over 80% of its revenue from 15% of its customers. That's a high percentage of income, which needs to be tracked, retained and should be the first point of call when you are actively marketing a new product.

  • Find the appropriate technology
    Agents need access to accurate information. This must be information on your customers, such as their profile, demographic and products/services that have or have not been purchased. Or, include a knowledge base that provides agents with the right information at the appropriate time to better qualify or sell to your customers.

    Make use of a technology that can deliver accurate information to your agents, enforce your methodology and track all communication between you and your customers. In addition, agents need to be able to update customer information, which can then be used to analyse and improve future sales and marketing initiatives.

  • Integrate your solutions
    The need for customers' data to be viewed in one place or reported to multiple databases will require integration between various solutions. Complexities in a company's infrastructure may require an ERP solution to integrate with a Sales Solution, which, in turn, might need to integrate with a Call Centre Application.

  • Bridge the knowledge gap
    Develop a methodology that can be used by agents to ensure that you bridge the gap between their customer service knowledge and sales. Ongoing training of sales techniques could also assist. In addition, track individual sales success and where leads are being generated to determine where the strengths and weakness of each agent lie - and to plan training accordingly.

  • Motivate the ranks
    Motivate your staff by restructuring their reward programme from the traditional call volume vs. time incentive, to include a financial or lead generation reward. Existing incentives that focus on customer service should remain, where the initial step might be for the Service Centre to take the role of a lead generator, and then hand over the actual sales process to the sales department. By involving the Service Centre in the sales process and giving them the ability to better understand the opportunities that exist, agents can provide necessary resources or expertise to close the deal.
In the Insurance sector, for example, where specific products and services are provided to a niche markets through a network of external broker companies, the Service Centre can take a more proactive approach in dealing with brokers and engage with them on all deals by having a single view of broker opportunities and related information.

Most organisations have an unknown number of data repositories containing a variety of information on their customers. This information needs to be consolidated into a single point where all information is correct and up-to-date and can be viewed by the Service Centre.

In any project of this nature the business needs to participate in the implementing processes. IT often takes the lead with little, if any, business involvement, but business must own and drive the process if the project is to be successful.
 
More options
< Back

About the author

Heath Turner is CRM product manager for IS Partners, a Microsoft Gold Partner. Heath has been involved within the IT Industry for 12 years and has interfaced on many CRM strategies over the past seven years. He has worked with companies like Standard Bank, MultiChoice, Mazda, Makro, Barloworld, Rennies Bank, Investec and many others. Email or tel +27 (0)11 463 8155.
Tony
Sales Training Key-
The training of staff in any call centre is vital. Training them in specific telesales skills is core to having a successful deployment.
Would love to chat more on this. tonyc@puzzlepiece.co.za Posted on 18 Sep 2006 15:54
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. libel, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.
Follow us:

Community activity

  • Faheem Benjamin Art Director/Designer created a profile
    1 hours, 52 minutes ago
  • sibusiso ngwena Sales and marketing enthusiast created a profile
    5 hours, 27 minutes ago
  • blessing johnson other at other created a profile
    6 hours, 47 minutes ago
  • Hilda Chihata All round Marketer created a profile
    7 hours, 25 minutes ago
  • Pepe Gutierrez pegutier5085 created a profile
    9 hours, 3 minutes ago
  • westerfield mcwabeni created a profile
    9 hours, 47 minutes ago
  • france mokolo Communication Consultant at any company created a profile
    10 hours, 6 minutes ago
  • Michelle Randall Writer/Copywriter at Copy Candy created a profile
    10 hours, 54 minutes ago
  • Svenja Gernoth Account Executive at The Lime Envelope created a profile
    11 hours, 13 minutes ago
  • Daniel Wong-Chi-Man Head of research and strategic insight at The Economist created a profile
    11 hours, 29 minutes ago
  • Wynandt Verster National Marketing Co-ordinator at Vega School created a profile
    11 hours, 56 minutes ago
  • Henk Kotze Partner at Corporate Media Concepts created a profile
    12 hours, 24 minutes ago
  • Busie Dlamini Managing Director at Mlangeni Group created a profile
    12 hours, 38 minutes ago
  • Angel Phetla Managing Director at Bokamoso travel created a profile
    12 hours, 50 minutes ago
  • wilhelm theunissen General Manager at KWV created a profile
    13 hours, 6 minutes ago
  • Sinethemba Mrali Entrepeneur,currently a student and a freelance(Researcher) worker at Uj created a profile
    13 hours, 41 minutes ago
  • Monique Ariefdien Office Manager at Better Your Odds created a profile
    14 hours, 18 minutes ago
  • Pastel Heart Fine Artist,Illustrator, Graffiti Artist at Pastel Heart (self-employed) created a profile
    14 hours, 42 minutes ago
  • lehlohonolo sethojana General labour at altech uec gdl created a profile
    14 hours, 43 minutes ago
  • nkosinathi mnyalatya MD Marketing & Communication at Epixel created a profile
    14 hours, 46 minutes ago
  • soraya Pereira Large Format printing , vehicle wrapping, poster , business cards , Graphic Designing created a profile
    14 hours, 56 minutes ago
  • Thomas Stemmer Sales assitant, marketing assistant created a profile
    15 hours, 28 minutes ago
  • Linky Qiti Office Manager and PA at TLC created a profile
    15 hours, 46 minutes ago
  • Candice de Vos Executive Personal Assistant at South African Tourism created a profile
    15 hours, 50 minutes ago
  • Ghana Hattingh
    I have my own TV in my hand gosh, Minister Fikile Mbalula was given one as well so Monday was Facebook
    16 hours, 5 minutes ago


Subscribe

Receive free email newsletter

Make us your homepageAdd us to your favoritesRSS feedGet biz on your phone

Invite

Tell a friend about us