5 steps to Make Profits from your Customer Supports

Category: How Business is done 1 Comment »

Abstract

This article gives a guide on how to make profits from an enterprise’s Customer Supports function. Two advanced business opportunities are discussed. It also describes the impact of technology, process and strategy in the business renovation.

Customer Support: From the traditionally cost sector…

Customer Support function has long been considered a cost to business, as it rarely brings more values.

Well, is it the case? If it is accused to not bring values, is it possible that they did not attempt to get value from it?

…To getting golds back from the star-fruits quezacotl

Quezacotl

“Vietnamese folklore goes that once upon a time, a man was very annoyed by a strange large bird eating the star-fruits in his garden. He tried to trap the creature and when he succeeded, the bird offered to carry him to a gold island to be released. The man became prosperous with the gold he picked from the isle after then.”

You can get a high Return on your Investment into Customer Support.

Many entrepreneurs know that good customer support is what makes customer happy and thus more willing to buy more and/or spread the good words. Customer Support has been recognized as a PR tool rather than.

Customer Support can be exploited to:

  • Increase customer satisfaction
  • Develop customer loyalty
  • Make the current customers spread the good word: the famous word-of-mouth marketing technique
  • Build a community of customers
  • Enhance the brand of the enterprise

Now, let’s push it further than that.

(1) Customer Support to increase employee satisfaction

Employee satisfaction is an intangible value of any enterprise. In real life, business development and employee growth is generally mutual exclusive. A way to solve the dilemma will be discussed.

(2) Customer Support as competing Strategy

Becoming the first in the industry requires good Strategies. Maintaining the position requires better Strategies. With the rapid flourishment of the knowledge economy, technology has come in place to revolutionize strategic planning. More on strategies coming next…

How? The five steps

1. Just read

Before actually doing it, it’s advisable that you explore what need done in order to achieve your goal. This article’s got it all for you from a very high level view.

2. Automate it

Employees who do the Customer Supports are agents with specific customer management and troubleshooting skills.

Agents’ tasks are repetitive and require a high level of concentration and accuracy. On the other side, managers want to be updated periodically and recurrently without having to micro-manage. This can put a lot of pressure both employees and team leaders.

Ultimately, now that we are setting the business objective very high (remember all the items covered above?), it would be next to chaos if all things are done manually.

The work must be automated. It is then agents are provided with tools to complete their works, checklists so as not to miss any item and instant support when they need it. Managers receive reports, statistics and figures to analyze and make decisions. Furthermore, automation saves man-hours so the firm may concentrate on developing the most talented workers. Eventually, automation frees all levels from tedious and repetitive works to spend more time on thinking how to improve the process.

A system should be in place to do the harder works so that people can work smarter.

3. Establish a process to support it

For any system or workflow to work properly, the process must be modified to support it.

Process has to be defined so as to gradually switching from paper works to entering and obtaining information from the systems installed.

Re-defining the process is the next investment an enterprise has to spend. However, the Return on Investment shall be well worth it. With automation in place, costs of some processes themselves will be cut down significantly.

For example, it used to take at least 15 minutes to search for a file of a customer in a heap of documents. Now it takes maximum 15 seconds to get all information of that customer by searching in database. That makes it 32 times faster!

So far, Statement (2) has been explained.

Strategy - Process - Integrated Systems

4. Mean to really support it

When the system and the process has been in place is the time for training and changing the habit of users. Training effectively has been difficult enough, making a change is even more.

It requires high commitment and strong confidence from Board of Management to request, encourage and motivate employees into the new environment.

Eventually, only if the change is seen as the key strategy to compete will all of its potentials be unlocked. Nothing is more powerful than union between all attending parties, strategies, processes and the product.

5. Let the whole world know

Just what are you waiting for? Let the whole world know
that you’re different,
that you have leaped ahead of all your competitors,
that your customers will be served the best way possible.

Life Business prospect has never been as bright.

Case Study

Suppose you’re the owner of an electronics retailing chain.

You may want to know the level of satisfaction of your customer. You will conduct a survey using Customer Relationship Management System (CRM). Since most of your market segments use the Internet regularly, it is easier to release the survey in electronic format.

To ensure that the survey is done correctly, you may want to arrange your agents to help/guide your (potential) customers through the survey. How do you know if your agents are doing well? Start the Quality Monitoring (QM) System. It will track the interaction between you agents and customers, be the media text chats, audio or video. After saving the interaction, you can always review and remark the performance of any specific agents.

Oh! Some agents are not doing as well as you expected. What will you do? It’s suggested that you review their skill set and portfolio in the Human Resource Management System (HRMS) to make judgment on how to grow them to the required level.

After obtaining the information on the agents, you may want to send them to Training. Today, training doesn’t have to be formal classes with costly instructors from outside. For your information, thousands - I mean hundreds of thousands - training courses, from business to technical, from soft skills to customer management, have been packaged in the form of e-Learning, delivered to your PC, and always ready to launch.

After the training, expect “Wow!” expressions from your beloved customers!

Now that your employees receive adequate feedback of their performance and personalized training addressing their gaps. Their productivity and loyalty will increase proportionally. Happier agents, happier customers too. By the way, has this solved the problem (1) listed above?

The whole process covered above should always be put under supervision. Thank goodness, software can do the micro-tracking for you. With information collected, it is time for Information Analytics power to shine. You can ‘teach’ the software to ‘know’ your Key Performance Indicators (KPI) and it will compare the actual performance against your goals to produce conclusion, warnings and predictions.

At the very end of the process, Reports only need to be generated for You to know everything you want, with as few key hits as you want.

Integrated Systems for Customer Support: CRM - Quality Monitoring - Workforce Management - HRM - e-Learning - KPI Scorecards

Notes

Please note that while I described this scenario for Customer Support only, similar approach can be used on a wide range of business functions: sales to production management, delivery to marketing. Software can be much more powerful if you know how to exploit them.

The case above involves several systems/modules. Theoretically, CRM and HRM systems are typical of Enterprise Resource Planning (ERP) Systems; Quality Monitoring, Training, KPI are typical of Workforce Optimization Systems.

Conclusion

It can be concluded that from my analysis, Customer Support should no longer be considered a cost. Instead, it brings more opportunities if it is used the right way, is supported with functional systems and appropriate processes and is lead by a clear strategy.

Acknowledgment

with special thanks to:

Gideon Schipper, Business Analyst Manager, First Consulting Group Vietnam

Minh Nguyen, Business Analyst, First Consulting Group Vietnam

Phuc Nguyen, ASEAN System Manager, Procter & Gamble




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Last update September 29, 2007

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    ERP Series vol 3: CRM

    Category: How Information Systems are managed No Comments »

    4. Customer Relationship Management

    4.1. Definition

    Customer Relationship Management (CRM) consists of

    1. All Customer-focus functions such as: sales, marketing, customer support
    2. Software and Tools for automation of these functions
    3. Processes to integrate and support the tasks and tools

    CRM Definition

    4.2. CRM Typical Elements

    Sales force automation

    SFA tools track prospects, contacts, and activities, allowing managers to follow leads through the pipeline, forecast revenue, and catch bottlenecks. Because of the revenue-forecasting requirements, SFA has always emphasized metrics even more than other areas of CRM..

    Tele-Marketing and Tele-Sales Tracking

    In many ways, their requirements are closer to those of support tracking and indeed many vendors offer contact center modules that can serve both inbound and outbound contact centers.

    Product configuration

    Product configuration tools allow users to customize complex products to their exact requirements.

    Marketing automation

    Often called campaign management, marketing automation allows the design, execution, and management of campaigns. Depending on the sophistication of the tool, the campaigns may use a variety of media and include segmentation and list management capabilities. Marketing event planning is another potential component of marketing automation.

    Support tracking

    Support-tracking features include the ability to track the history of support requests from inception to resolution, including routing, ownership, escalations, and transfers. Another important area is the provision of a customer database to track service contracts. The contracts area is where integration with the sales system or with the accounting system may come into play.

    Field service

    Field service has different requirements than service that is provided from a support center, much as a telemarketing group needs different features than a field sales force. Like field sales, field service employs a mobile workforce and it has special requirements such as the management of parts and spares. Many field service tools allow users to communicate through wireless communications.

    Knowledge base

    Knowledge base functionality is useful in all areas of customer-focused functions. It has the ability to expose the knowledge base to the users through a variety of search capabilities, as well as the ability to support the creation and maintenance of documents.

    Customer portal

    Web-based customer access to the CRM system is now an absolute requirement. Customer portals and the functionality around them are sometimes called e-CRM and the subsystems are called e-sales, e-marketing, or e-support.

    Analytics

    One of the benefits of CRM is an improved ability to view and analyze customer-related activities. Together with Business Intelligence and KPI, Analytics function provides a very powerful tool in managing customer expectation to meet the enterprise’s objectives.

    CRM Elements

    ERP Series Previous Posts

    ERP Series vol 2: ERP System Characteristics

    ERP Series vol 1: ERP Definition & Advantages

    Free & Open Source Enterprise Resource Planning Software




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    Last update September 20, 2007

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    Free & Open Source Enterprise Resource Planning Software

    Category: How Information Systems are managed 1 Comment »

    ERP

    ERP is free?

    At first, I could believe that a highly complex software like that of ERP can be open or free.

    However, it is a truth. Some communities are really committed to engage to this sophistication.

    Now here it is: ERP comes open-source!

    ERP is really free?

    I like the way Adempiere depicts the complexion of costs:

    “Information Is Free - U have to Know
    People Are Not - U have to Pay
    Contributors Are Priceless - U have to Be”

    Open-source ERP, like any other open-source project, is not totally intended for larger enterprises seeking highly stable software and business partnership.

    Open-source ERP makes it possible for SMEs to go in for Enterprise Resource Planning at a more affordable price. This is a wise step of initiators in that this kind of collaboration would benefit both parties.

    • Users get the software for free, and pay a relatively reasonable amount for supports and customization
    • Some R&D departments from these ‘purchasers’ even involve in developing the software, thus enlarging the community to people inside businesses
    • Some companies such as Compiere offer free packages and products with fee. This gives their customers more options

    Personally I don’t think the “sense of open-source” including flexibility, community-knowledge, freedom and such is the most significant factor for enterprises to go for these products. They’re simply looking for a product that works with a more affordable price. Instead of doing separate accounting, financial management, CRM, SCM, HRM etc., they have the option to start doing ERP at an earlier stage.

    It’s all about Open-source

    People in Open-source community have their manifesto. Communities have gone from developing open Operating Systems to open File-Sharing, from Office to Browsers. There is no reason why they can’t be doing ERP now.

    Entrepreneurship & OSS

    ERP has “enterprise” in it. Correct! ERP OSS is not software for individuals, but for Organizations. Enterprises. And Enterprises do business.

    An ERP, though require a tremendous technology commitment, is far less geeky than any other OSS ever developed. It’s business, which so unfortunately a number of geeks take a distance from afar.

    Because ERP is developed to solve the problem of and boost business, ERP OSS requires entrepreneurship and business minds! That’s where the leading heads and consultants are called.

    Development Prospects

    People talk ERP. People use ERP. People do ERP. Everywhere is ERP.

    Some sell ERP. Some give ERP for free.

    It’s obvious, Open-source ERP is in a terribly good jumpstart to develop. If they can overcome some difficulties such as commitment, simplification of complexity and harmonization of business and technology, the future is bright for them.

    And for SMEs too.

    Some Open-source and Free Enterprise Resource Planning Vendors

    Compiere http://www.compiere.com

    Adempiere http://adempiere.red1.org

    JFire https://www.jfire.org

    Opentaps http://www.opentaps.org

    OpenBlueLab http://www.openbluelab.org

    OFBiz http://ofbiz.apache.org

    SQL-Ledger http://www.sql-ledger.org

    WebERP http://www.weberp.org

    GNU Enterprise http://www.gnuenterprise.org

    GNU Globe




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    Last update September 11, 2007

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