Chapter 11 Scenario Analysis:
Applying the 7 Rules for Stellar Customer Service
Discuss the ways in which you would apply these rules and other lessons from Chapter 11 to address the scenario described below.
1) A house divided will not stand
2) Deliver what you promise
3) Monitoring is the first step to improvement (are you measuring customer satisfaction?)
4) Create incentives for desired employee behaviors.
5) Empower employees to resolve disputes
6) Avoid focusing on new customers at the expense of existing ones
7)Devise, evaluate and revise systems
Scenario: You are the new V.P. for Customer Service at a statewide cable television and internet company. You face growing competition in a market where your organization used to hold a monopoly. When you told your friends about your new position they all teased you mercilessly since your company is infamous for bad customer service. Currently, your company rewards employees with annual raises based on years of service, not merit. Your company uses promotions to gain new customers by offering the first month free and then six months at a sharply discounted rate. Existing customers are charged higher amounts to subsidize the acquisition of new customers. Customers sign 2 year contracts and about 50% leave at the end of their contract period, with about 25% leaving before the end of their contract period and paying the $125 early termination fee. When customers call to complain about service outages or other problems, they wait on hold for long periods and get dropped calls when they announce they are seeking to end their service. Employees receive a $25 bonus each time they can change a customer’s mind and get them to stay on with your company, and lose $10 when they cannot. This is verified through call monitoring by supervisors. Unfortunately, this means call center employees accidentally ‘drop calls’ when they believe they cannot change the customer’s mind. Turnover of employees is 50% per year, with significant costs entailed in the hiring and training of new ones. When angry customers call and seek credit to their bill for outages or other problems, they must wait to speak to a manager, often giving up before getting through to one. As internet TV becomes more popular and wireless service providers inter the market, your company has got to get its house in order.
Book- Conflict management for managers Susan Raines- 2nd edition