How to Achieve Excellence in Total Customer Service

Bruce E. Jacobs
BKD, LLP

The purpose of business is to serve customers. But do you really know how your customers perceive the service your business provides?  

Typical customer service measurements are transaction based and include the necessary lead time for you to fill an order and your percentage of line-item fill rate, the number of orders shipped complete and your record for on-time delivery.

Other performance measurements may include how long customers must wait to receive service, the number of times the phone rings before a customer’s call is answered, how long it takes to serve a customer or handle a complaint or an order and the number of complaints you receive as a percentage of your total transactions.

The service a customer receives is determined by business processes and delivery systems that provide the service. For example, how is it a car rental company can have your vehicle ready and running with the rental agreement prepared and waiting in the car by the time you arrive on the lot?  

It’s a very simple process that focuses on the customer: Your name appears on the electronic board and tells you your rental’s parking space.  You show the yard guard your contract and driver’s license and away you drive.  

Now, imagine you’re checking into a hotel. You’ll probably have to stand in line, sign a register and have your credit card swiped before you can get a room. Compared to the car rental company, why is it tougher for you as a hotel customer to access the product or service?  

Provide Total Customer Service

Companies that excel in customer service understand that total customer service is when every customer-related business process and delivery system works in harmony. Every step in the process that involves the customer must consistently and reliably function at the highest level of service every time. Consider the following steps:
      
•    Defining customer requirements—what the customer needs or is trying to accomplish

•    Selection and sourcing—where and how customers search for both a product or service and                   identify its provider

•    Purchasing and ordering—how a purchase decision is made or an order is placed

•    Producing and packaging—the product must meet customer specifications

•    Shipping and delivering the product—on time, undamaged and at the right location

•    Receiving—the product must arrive at the designated time and place, undamaged, with appropriate       documentation

•    Product use—applying the product, using it properly for the desired results

•    Invoicing and payment—accurate billing for a product or service, collecting payment
•    Service—responding to a customer’s inquiries during the entire transaction process and providing       support after the sale of the product

•    Warranty—responding to a product’s failure to perform as specified, meeting the warranty obligations

•    Returns—products may be returned to the provider regardless of the reason
 
    These business processes and delivery systems must work in harmony and focus on customer value as perceived by the customer.

Test Your Customer Service

To achieve excellence in total customer service, become a customer. As you experience your own processes, evaluate them on their value-add and service—on the customer’s terms.  
    The components of your solution set will consist of several of the following:
   
•    Customer service strategies that increase value as perceived by the customer

•    Business practices that drive customer behavior and enable more efficient, cost-effective and                   responsive processes to better serve customers

•    Complexity-reduced products, processes and delivery systems

•    Information-support systems that provide timely visibility of customer interaction and transactions           across every step of the process

•    Performance measurements that work in harmony and measure customer service on the customer’s       terms

•    Knowledge-based workforce that is customer-focused, educated, trained and empowered to                   improve value to customers

Some of the primary characteristics of providing excellent total customer service may take time to master, while others may require that you fine tune current service standards. Because customers look for ease of doing business, find ways to streamline so that doing business with you is a simple transaction for the customer. Design your business systems around your customers to increase efficiency and accuracy.

In every customer transaction, try to integrate your business processes so they work together in a seamless, end-to-end flow, whether your customer is a distributor, dealer or hospital surgical center. Literally, walk the process from the customer’s point of view. The customer needs to have your product always available and have a low inventory level of your product as well. Therefore, automatically replenish the inventory based on the customer’s usage rate and depletion of the inventory. The customer does not have to place routine replenishment orders and forecast inventory requirements for your products.

Deliver your product to the point of storage or directly to the point of use so you have visibility of usage, orderliness of storage, product damage and obsolescence—and also ensure that you handle returns promptly and issue credits. Remember, surgical centers, dealers, and distributors are not in the business of managing the supply chain. Customers want what they want, when they want it. Make it easy for them to order, acquire, store, use and, if necessary, return your product.

In addition, make your invoices accurate and timely for quick payment. Most customers’ short pays and invoice holdbacks are caused by the supplier. Another good idea is to develop customer-focused teams for your key customers. This creates several key points of contact and interaction with your customer and your organization. It is easier to improve performance, develop new processes and resolve business issues when there are more personnel involved from the customer and your organization. For example, if you can gain visibility of the operating room schedule, surgical schedule and inventory of your products, you should be able to ensure that the surgical unit will always have your products available when a procedure is scheduled.

Finally, establish visible performance measurements to improve performance and help solve problems. “Knowledge capture” also is essential in tracking current information about many areas, including performance issues, experiences, improvements, customers’ actions, requests and requirements that should be shared with your company’s key players.

The bottom line is that providing total customer service isn’t a single event or series of actions in isolation, but a journey for continual improvements in both performance and the methods used to serve customers.     

Incorporate the concept of excellence in total customer service as you develop your business strategies and plans, improve supply chain performance, reduce your costs and improve your return on asset base.  Your customers will reward you, and your competitors will recognize the competitive distinction you’ve made with your customers. Next to the brand equity that is associated with your product, the greatest competitive advantage an enterprise can create is by providing the highest level of total customer service.

Bruce E. Jacobs is a principal with BKD, LLP, a CPA and advisory firm, and a member of BKD Manufacturing & Distribution Group, providing solutions for the management and
financial needs of medical device businesses. Bruce has more than 26 years of experience in manufacturing and distribution strategies, including significant experience developing worldwide supply chain networks and manufacturing operations improvements. Contact the author at [email protected].