Executive summary
The purpose of this report is to analyse the customer service system employed at West Dealership of Melbourne Car World. It should be noted that performance management has not been carried out so far this financial year which has no doubt prompted, at least in part, this investigation and the following report. The first quarter data of the 2012 financial and all data available pertaining to customer service operations will be considered.
1 Introduction
1.1 Purpose
The purpose of this report is to analyse the customer service system employed at West Dealership of Melbourne Car World and make recommendations for systematic improvement to standards. 1.2 Scope
Recommendations to be based on customer service performance data, first quarter sales organisation wide and balanced scorecard summary. 1.3 Method
The information used in this report was provided by various departments including customer service, sales and accounting. 1.4 Limitations
Recommendations made for the express purpose of enhancing customer service. 1.5 Assumptions
It is assumed that while improvements will be recommended in this report they will not contain wholesale changes to staff or procedure but rather expand on and enhance the company’s mission, vision and values as they pertain to serving our customers and bolster the current customer service ideology. 1.6 Background
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The principles of the customer service system are as follows: Demonstrated customer focus:
striving to establish an objective, research-based, clear understanding of customer needs and customer expectations (to develop standards) maintaining product quality in terms of customer expectations and perceptions striving to meet and exceed customer expectations.
Continuous improvement of operational processes and regular evaluation of performance against customer expectations. The organisation follows the Plan‑Do‑Check‑Act cycle of continuous improvement. Supplier relationships and a supply chain that is well developed and maintained in order to deliver consistent value to customers. Commitment of the organisation (from senior management down) to quality customer service, all management and employees should be trained in, and demonstrate, attitudes and behaviours that reflect commitment to customer service quality. The key elements of the system (reflecting the principles) are: Quarterly monitoring of data: sales data, customer feedback, etc., and reporting to senior management. Use of performance scorecards and regular performance management in accordance with the Performance Management Policy. Customer service policies and procedures.
Developing and maintaining supplier relationships in accordance with the Procurement Policy. Quarterly senior management review of the effectiveness of the customer service system and associated policies, standards, performance targets, etc.
2. Findings
2.1 Establishing Customer Needs
After reviewing first quarter customer service and performance data it became clear that establishing and meeting customer’s needs was an area that needed improvement. One of the more alarming statistics that has emerged from customer feedback is that 45% of surveyed customers did not believe that the sales person with whom they had dealings communicated with them effectively. This glaring inadequacy coupled with the fact that some customers commented that the sales person in some instances only spent seconds finding out about their needs is quite concerning. Further it seems that some customers were not even asked about their childcare requirements.
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This is incredible considering that our product range clearly caters for family type vehicles. While customer feedback shows that vehicles were sold to meet the customer’s budgets 90% of the time it also shows that the sales team is operating contrary to our customer service system which is to demonstrate customer focus where we focus on understanding the customer’s needs first and foremost and then strive to exceed their expectations. Instead feedback shows that in general the sales team is pressure selling the wrong types of vehicles to customers and potentially loosing sales because they are not listening to customers.
2.2 Performance Management
One of the key elements of our customer service system the use of scorecards and regular performance management as outlined in the performance management policy. In addition to this customer feedback and sales data are reported to senior management quarterly. It is therefore extraordinary that the balanced scorecard report shows our staff is unaware of the performance management system and therefore has no idea of the organisations strategic direction or the way in which the organisation wants them to go about making their sales targets. In fact the sales team believe that the only important measure of performance is sales. This is not in keeping with the overall view held by senior management and contrary to guidelines set out in the customer service system. 4. Conclusion
After investigating all available data it became apparent that although the organisation has a customer service system, it seems to get ignored. Staff is unaware of it and senior management don’t seem to be monitoring it closely. No performance management has been completed this quarter nor does it appear that it has ever been completed which clearly shows that sales and customer service team leaders are not conducting required performance management. Performance data is being collected but no action is being taken to address shortfalls. It follows logically that the system of continuous improvement outlined in the customer service system is not being followed at all. There seems to be an organisation wide lack of understanding of how to serve our customers, how to understand their needs and how to exceed their expectations and leave them with a positively memorable customer experience that they would proudly refer to a friend.
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5. Recommendations
The findings and conclusion in this report support the following recommendations: Review and update customer service standards
Take the International Customer Service Standard (ICSS:2010-14) and AS ISO 1000 02 – 20006 Customer satisfaction standards into account to deliver best practice level of service. Review and update customer service strategy
Review and update customer service model. Base inclusions or omissions on the RATER model of customer service Familiarise staff with continuous improvement strategy and start to implement it organisation wide. Performance management to be conducted as prescribed and taken seriously. Coaching and mentoring to be implemented in order to bring existing staff up to required standard. Training to be provided to staff as required in areas pertaining to sales and customer service. Introduce a rewards and recognition system
Review and update CRM with relevant customer details including when and how to contact them at convenient times.
