Customer Service Excellence PDF

Customer Service Excellence 1 Course Overview • Course Name: Customer Service Excellence • Course Length: 1 Day • Course Credits: • Course Description: This one-day elective course will define the most effective mindset to approach any service situation. It will identify the key employee values...

Customer Service Excellence 1 Course Overview • Course Name: Customer Service Excellence • Course Length: 1 Day • Course Credits: • Course Description: This one-day elective course will define the most effective mindset to approach any service situation. It will identify the key employee values that influence customer service interactions, the characteristics of a customer-centric service professional, and strategies to implement them within the federal workforce. 2 Course Objectives What is customer service excellence? At the conclusion of this course, you will be able to increase your customer service skills by mastering the course objectives listed below • Define customer service and the components that drive it. • Understand how customer service interactions impact loyalty, trust and the perception of an organization. • Define the values, characteristics, and mindset of a customer service professional for any situation. • Identify the tools available to develop a customer-centric approach in the federal workplace. 3 Introductions Name and Organization? What’s your role? How many years of Govt Federal Service? Hobbies? What you want to learn from this course? 4 The History of Customer Service • Where it all began • Measuring Customer Experience (CX) • Telephones, call centers and high volume CX • NPS, HISP, and modern CX measurement 5 The Origin of CX 1760-1820 • The first ever customer support teams were created during the industrial revolution. • Factories spring up across the US and Europe, these teams were created to meet the demands of consumers. • The main and fastest means of customer service was face to face. 6 Telephones, Call Centers and CX • The invention of the telephone in the 1870s immediately changed the concept of customer service • In 1894 the telephone switchboard made telephone communication more accessible to businesses and consumers • As calls became more common, the first call centers were created in the 1960s, and companies began hiring employees whose primary responsibility was to answer calls and resolve customer issues. • By 1970 AT&T had launched the “800” number, which allowed calls to reach agents without an intermediary operator. This was much faster and much more cost effective. 7 Telephones, Call Centers and CX • In the 1970s the Interactive Voice Response (IVR) was invented that allowed customers to give simple one-word responses to direct a call to a representative. • In the 1980s companies developed the ability to leverage call centers worldwide to reduce costs. • In the mid-1990s new channels for CX, including email and chat provided faster, effective CX interactions than any other time in history. 8 Measuring CX • Early measurement of CX was part of the emergence of market research in the early 1920s as a way of testing and improving advertising. • Total Quality Management (TQM) and other customerfocused approaches created the idea of customer satisfaction in the 1980s. • The process was simple: Measure data, Report the data, take action. • Customer Experience as it is defined today is the result of major market research companies, such as JD Power, Gallup, and Maritz building the framework to measure CX through the mid-1990s 9 Modern CX Measurement • Modern CX is measured through various channels, primarily via email, text, live chat and social media • Through decades of data, CX has been streamlined to identify the specific factors that influence consumers decisions. • CX is now its own industry and has become one of the most important influences on consumer spending. 10 Modern CX – Private Sector • Net Promoter Score “How likely are you to recommend ”Company X” to a friend or colleague? This straightforward question was generated by a 2003 research project led by Fred Reichhled at Bain & Company. It turned out this one simple question worked best to measure customer experience across most industries. 11 Modern CX – Private Sector • How NPS works: Customers rate the question on a scale of 0 to 10. Responses are divided into three groups: 0 1 2 3 4 Detractors 5 6 7 8 Passives 9 10 Promoters The formula for NPS is simple Net Promoter Score = # of Promoters - # of Detractors 12 Modern CX – Federal Government • The US Federal Government is arguably one of the largest, most complex service delivery organizations in the word, responsible for a wide range of services • TSA screens more than 2 million passengers a day • More than 60 million are covered by Medicare • More than 40 million people manage student loans Those are only a few of the High Impact Service Providers – HISP designated by OMB Circular A-11, Section 280, which issues guidance on how HISP should manage their customer experience. 13 Modern CX – Federal Government • Human-Centered design (HCD) HCD is a practical problem-solving method that involves a human perspective in an iterative process to develop solutions to meet real people’s needs. A typical HCD process includes discovery, design, delivery and measurement stages. • HISPs are required to submit and maintain an annual CX action plan. 14 Exercise 1 Rate each of these companies and agencies customer service. As a group, discuss each and assign it a value between 1 and 10, where 1 is terrible service and 10 is excellent service. Be prepared to discuss your rating for each company, who was the best and worst for each group, and the corresponding characteristics that were the basis for your rating. 15 The Customer-centric Mindset A Customer-centric Mindset means you can anticipate a customer’s wants and needs by looking at their situation from their perspective. A Customer-centric Mindset is: • Free of bias • Collaborative • Creative 16 The Customer-centric Mindset Unconscious Bias Unconscious biases are social stereotypes about certain groups of people that individuals form outside their own conscious awareness. We all have unconscious biases • The customer-centric mindset is on guard and aware of unconscious biases. • An unconscious bias can cause an employee to make recommendations based on the social stereotype rather than the stated need of the customer 17 The Customer-centric Mindset Collaborative A collaborative mindset is an employee who is willing to work with the customer, coworkers and other agencies to provide support to their customer. • Collaborating with the customer provides needed transparency on the process and steps need to solve the issue. • A collaborative mindset is focused on how to find a solution efficiently, which opens the process to include others who may have more helpful resources. • A willingness to collaborate builds the product knowledge for the employee beyond their agency, and helps them provide more efficient, positive customer interactions. 18 The Customer-centric Mindset Creative A creative mindset for customer experience means your employees are adaptable and capable of finding new solutions to problems. • A creative mindset does not offer cookie cutter solutions. Every customer conversation is different, and every solution is tailored to that customer. • A creative mindset understands that every individual who reaches out for help is different, and they make sure the solution is a perfect fit for their individuality. 19 Characteristics of Excellent CX • Product Knowledge • Empathy • Communication • Consistency 20 Characteristics of Excellent CX – Product Knowledge Product knowledge is not simply knowing everything about your product or service. It is: • Knowledge focused on the specific need of your customer • Knowledge that will provide a better solution and add value for your customer, and • Knowledge that is transparent and easy to understand, especially if you are dealing with complex technical or policy issues. 21 Characteristics of Excellent CX – Product Knowledge • Strong Customer-centric product knowledge will alleviate doubts the customer had prior to engaging with the agency • It builds trust in the agency through transparent communication, which in turn will often lead to customers becoming more understanding, patience and willing to listen to alternative solutions. • It will be remembered – in a good way – which customers will see as a reflection of a strong, stable organization. 22 Characteristics of Excellent CX Empathy Empathy creates a common emotional connection with the customer. Customers are reaching out for support, to find a solution to a problem. • When you empathize with a customer you let the customer know you understand where they are emotional. • Empathy is not agreement; it is acknowledging the customer's emotional state which creates common ground to work on a solution. • When you empathize with a customer it is to build rapport, not to become emotionally involved. 23 Characteristics of Excellent CX Empathy Emotional Intelligence is the capacity to be aware of, control, and express one’s emotions, and to handle interpersonal relationships judiciously and empathetically. • EI is crucial to success in customer service, especially in a call center setting. • EI helps employees understand and manage their own emotions and the emotions of the customer, leading to higher customer experience and positive interactions. 24 Characteristics of Excellent CX Communication Excellent CX requires excellent communication! • To communicate well, the first step is to listen – specifically use critical listening to fully understand the needs of the customer. • Comprehensive listening is a process for understanding what is said and evaluating it without bias. • Give the customer your full attention, listen for the key points they are making and interpret their needs. • Take notes, or jot down reminders to make sure you retain what the customer is sharing so they do not have to repeat themselves. 25 Characteristics of Excellent CX Communication Once you have listened to the customer, communicating clearly what possible solutions exist for their problem is critical. • If you are not 100% sure of the issue, ask questions! Guessing or working on the wrong solution will frustrate the customer and prolong the interaction. • When you have identified the proper recommendation, be sure that you have a clear explanation of why you arrived at this solution, as well as next steps in the process and a realistic time frame for resolution. 26 Characteristics of Excellent CX Communication When communicating with customers there are key aspects to be aware of: • They do not listen well. • Most customers have predetermined the outcome they want prior to initiating the interaction. • They can be emotionally fragile; which usually is a poor state to comprehend what you are sharing with them. 27 Characteristics of Excellent CX Communication Now that we know the customer is not the greatest listener, there are simple ways to ensure they understand how you can help. • Clearly state the solution: The language you use to explain how to solve their problem should be free of jargon, and stated in a way that connects it to the problem you identified. • Repeat the solution: Most customers have an answer in their head they are listening for. You must repeat the solution multiple times, even change the phrasing to closer fit the answer they are looking for to help them understand. • Clearly state your solution will solve their problem! 28 Characteristics of Excellent CX Communication Sometimes there are situations that you cannot solve. Telling a customer you do not have a way to help them with their problem is difficult, but that does not guarantee a poor customer experience. • Listening and empathy are most important in these situations. • Offering alternatives solutions that may not be perfect, but can help • Let the customer vent • Apologize 29 Characteristics of Excellent CX Consistency Consistency in customer service ensures that customers are treated the same each and every time they interact with your agency. • Consistency happens when Product Knowledge, Empathy and Communication are used properly. • When customers reach out multiple times for support and get different solutions each time, it creates distrust and frustration with the agency. • Consistency allows your customer to know exactly what to expect every time they interact with your agency. 30 Characteristics of Excellent CX Consistency Maintaining consistency is a key responsibility of leadership. Ensuring there is ongoing training of CX teams to keep product knowledge current, as well as inspecting interactions with customers. • The most direct source of inspecting is customer feedback. • The most valuable source of inspecting is customer complaints. 31 Exercise 2 In your groups discuss the characteristics of your primary customer, how they interact with your team or agency, and how, if at all, those interactions build or breakdown their trust in government. 32 The Impact of Customer Experience Customer experience is the primary driver of customer loyalty for any business. • Loyal customers have a lower cost to retain, spend substantially more than new customers and are more forgiving of the company for failures. • Loyal customers are more willing to refer new customers, reducing acquisition cost and often these new customers are more profitable and more loyal than new customers generated from more expensive channels. 33 The Impact of Customer Experience Customer service can drastically impact the brand and reputation of a company. • Businesses who have a reputation for poor customer service most often have a reputation for lower quality products. • Customers will actively avoid brands who have a reputation for poor customer service. • In turn, this will reduce the brand equity for the company, which is the commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself. 34 The Impact of Customer Experience For the Federal government, the goal of excellent CX is TRUST. • Excellent CX drives trust in the agency • Consistent excellent CX drives trust in government According to Performance.gov the vision for CX in for Federal agencies is: When the American public interacts with their government, they should get a simple, seamless, and secure customer experience that’s on par with top consumer experiences. 35 The Impact of Customer Experience In 2020, the Pew Research group conducted a study to understand Americans’ evaluations of the federal government’s performance. They surveyed adults online and over the phone. As you can see, Americans’ perception of how our government performs is duties varies greatly by category but has been consistently poor. When Pew revisited the topic in 2022, the levels had not changed for the better. 36 The Impact of Customer Experience Now fast forward to today. Even though the perception of the government has changed little over the past two decades, the impact of CX can clearly be seen in the data collected by the HISPs. Starting in FY2023, Performance.gov instituted a data quality process to review all data submitted by HISPs. The HISPs adapted these prompts when asking for feedback: “This interaction increased my trust in (Program/Service name)?” And “I trust (Agency/Program/Service name) to fulfill our country’s commitment to (relevant population)?” Let’s take a look at the impact CX has on HISPs 37 The Impact of Customer Experience Over 200 million responses gave strong positive feedback in seven key categories: Trust, Satisfaction, Effectiveness, Ease, Efficiency, Transparency, and the Employee. 38 The Impact of Customer Experience As you can see, customers of HISPs for the first three quarters of FY2023 overwhelmingly state that they trust the agencies who provide services to them. 39 CX in the Federal Workplace Federal Customer Experience AUTHORITIES, LAW, INITIATIVE EO VISION When the American public interacts with their government, they should get a simple, seamless, and secure customer experience that’s on par with top consumer experiences. “It is the policy of the United States that, in a Government ‘of the people, by the people, [and] for the people,’ improving service delivery and customer experience should be fundamental...” Executive Order 14058 Signed December 13th, 2021 PMA Executive Order 14058: Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in Government → Sec. 4: Directs 16 agencies to take 36 actions to improve customer experience → Sec. 5: Instructs the White House, Office of Management and Budget (OMB), and the President’s Management Council (PMC) to select a limited number of Life Experiences to coordinate service delivery and identify areas to improve and streamline policy. Directs OMB and the General Services Administration (GSA) to create a roadmap for developing prioritized common services, platforms, and products → Sec. 6: Authorizes the Director of OMB to designate high-volume, public-facing Federal entities as High Impact Service Providers for ongoing oversight and support → Sec. 7-9: Identifies actions all agencies should take to improve customer experience through performance plans, digital modernization, and information collections FEDERAL CX ECOSYSTEM President’s Management Council (PMC) PMC Priority 2: Deliver excellent, equitable, and secure Federal services and customer experience → Deliver customer experiences on par with or more effective than leading consumer experiences → Reduce burden for government’s customers and improve trust in government → → Requires agencies to improve the digital experience for government customers and reinforces existing requirements for Federal websites Directs agencies to modernize new and existing websites, digitize services and forms, accelerate use of electronic signatures, improve CX and digital service delivery, and transition to centralized shared services → → Designate two priority services for assessment and improvement • • Conduct self-assessment and report to OMB Collect customer feedback across government-wide metrics in surveys and report through public facing dashboards • Produce CX action plans in line with agency budget and strategy → Oversee implementation of the President’s vision across the Executive Branch → Establish government-wide strategy and management of customer experience, including resolving issues between agencies or making decisions when authority is unclear (EO 14058, Sec. 5) → Manage interagency teams leading cross-agency Life Experiences (EO 14058, Sec. 5) The Federal government is the largest and most complex service delivery organization in the world. → 1 in 4 Americans is covered by Medicaid → TSA screens more than 2 million passengers per day → 1 in 8 or 42 million Americans are managing student loans → 4 million Americans become eligible for Social Security benefits each year → 25 million individuals and families survived a Federally recognized disaster last year High Impact Service Providers (HISPs) HISPs → Operate as Federal entities that provide (or fund) high impact customer-facing services; either a large customer base or a high impact on those served by the program (OMB A-11, Sec. 280) → Designate priority services and deliver specific improvements to those services (EO 14058, Sec. 4 & 6) → Report trust, satisfaction, and other service performance data on performance.gov/cx (PMA, Priority 2) RESOURCES → → CIOs → Manage and continuously improve the delivery of Federal digital services to ensure the public receives a simple, seamless, and secure digital experience. (21 Century Integrated Digital Experience Act) → Improve coordination and guidance for utilizing data across agencies and levels of government consistent with applicable law (EO 14058, Sec. 5) Federal Customer Experience and Performance Collectively, more than 10 agencies across Government have formed interagency teams to improve the public’s experience during the following moments in people’s lives: → → → Agency Chief Information Officers (CIOs) Federal government’s core CX policy Identifies High Impact Service Provider (HISP) programs and directs them to: • Drive CX improvements at agencies through strategic planning, CX action plans, and CX agency commitments (EO 14058, Sec. 4 & 5) Designate priority cross-agency Life Experiences and form interagency teams for Discovery and implementation Office of Management & Budget (OMB ) OMB OMB Circular A-11, Section 280 A-11 → (EO 14058, Sec. 5) 21st Century Integrated Digital Experience Act (IDEA) 21ST Advise the President and OMB on government reform initiatives; provides performance and management leadership; oversees implementation of government-wide management policies and programs (PMA, Priority 2) → President’s Management Agenda (PMA), Priority 2: Deliver excellent, equitable and secure Federal services and customer experience → → PERSPECTIVE → → Approaching retirement Recovering from a disaster Navigating the transition to civilian life following military service → Birth and early childhood for low-income women and their children → Facing a financial shock Fact Sheet: Putting the Public First: Improving Customer Experience and Service Delivery for the American People Equity Executive Order GSA Technology Transformation Service (TTS) TTS → Identify and prioritize the development of Federal shared products, services, and standards that enable simple, seamless, and secure customer experiences across HISPs (PMA, Priority 2) → Redesign USA.gov as a “Federal Front Door” from which customers may navigate to all government benefits, services, and programs (EO 14058, Sec. 4) → Deliver forthcoming Federal Product Roadmap (EO 14058, Sec. 5) QUESTIONS → [email protected] 40 CX in the Federal Workplace Authorities, Law, and Initiatives • Executive Order 14058 • PMA: President’s management agenda Priority 2 • 21st Century Integrated Digital Act (Idea) • OMB Circular A-11, Section 280 41 CX in the Federal Workplace The Federal CX Ecosystem • PMC – President’s Management Council • OMB – Office of Management & Budget • HISPs – High Impact Service Providers • CIOs – Agency Chief Information Officers • TTS – GSA Technology Transformation Service 42 CX in the Federal Workplace • Human-Centered design (HCD) HCD is a practical problem-solving method that involves a human perspective in an iterative process to develop solutions to meet real people’s needs. • In HCD research teams use lightly structured conversations with customers to draw out stories, pain points, critical needs and moments that matter the most for them. • These are 4-8 week “Discovery Sprints” and are efficient ways for government to distill data and identify solutions that are in tune with people’s needs. • HCD uses customer stories and journey maps to summarize qualitative data into tangible references that align different audiences to the same frame of view 43 CX in the Federal Workplace Human-Centered design (HCD), continued • Journey maps and customer stories help facilitate shared customer understanding and collaborative decision-making toward designing and implementation of customer service processes. • For example, an individual facing financial shock might engage with Unemployment Insurance, (UI), Medicaid, and Supplemental Nutrition Assistance Program (SNAP) at the same time. • Government may draw boundaries between these programs as they are administered by three separate agencies, yet people must navigate across all three simultaneously. 44 CX in the Federal Workplace Human-Centered design (HCD), continued • Government boundaries between agencies create tension between how the systems works and how people engage with it. • Customer experience HCD work aims to find those tensions and design more integrated delivery systems. 45 CX in the Federal Workplace Resources • Performance.gov Current year A-11 Section 280 Toolkit • HISPMAX.gov website • Federal Service Worksheet 46 Exercise 3 Read section 280 of OMB Circular A-11. After reading through each category, answer questions 280.1 – 280.7, and 280.9 and 280.10 for your agency. If you are aware of how your agency is already executing the answers to these questions share how well you feel it is going and what changes, if any need to be made. 47 End of Course • Questions?