Learner Guide

Module 8
Customer service
US: 252210, 10313, 118028

Further Education and Training Certificate: Information Technology: Systems

Development
SAQA 78965 - Level 4 - 175 Credits
Learner Information:

Name & Surname:

ID Number

Tel/Cell

Email Address

Organisation:

Facilitator Name:

Copyright
All rights reserved. The copyright of this document, its previous editions and any annexures thereto,
is protected and expressly reserved. No part of this document may be reproduced, stored in a
retrievable system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise without the prior permission.

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 Learner Guide Introduction

The purpose of this Learner Guide is to provide learners with the necessary
knowledge and it provides a comprehensive overview of the module: Customer
service, and forms part of a series of modularised Learner Guides that have been
developed for the qualification: Further Education and Training Certificate:
About Information Technology: Systems Development - Qual ID: 78965 NQF LEVEL 4,
Worth 175 Credits.
This Learner Guide has been designed to improve the skills and knowledge of
learners, and thus enabling them to effectively and efficiently complete specific
tasks.

At the end of this module, you will be able to:

 Handle a range of customer complaints
Outcomes
 Comply with service levels as set out in a Contact Centre Operation
 Supervise customer service standards

The only way to establish whether a learner is competent and has accomplished
the Learning Outcomes is through an assessment process.
Assessment involves collecting and interpreting evidence about the learner’s
ability to perform a task.
Assessment This guide may include assessments in the form of activities, assignments, tasks or
projects, as well as workplace practical tasks. Learners are required to perform
tasks on the job to collect enough and appropriate evidence for their portfolio of
evidence, proof signed by their supervisor that the tasks were performed
successfully.

To qualify and receive credits towards the learning program, a registered assessor
Qualify will conduct an evaluation and assessment of the learner’s portfolio of evidence
and competency

Learners are required to attend the training workshops as a group or as specified

by their organization. These workshops are presented in modules, and conducted
Learner
by a qualified facilitator. The responsibility of learning rest with the learner, so:
Responsibility
 Be proactive and ask questions,
 Seek assistance and help from your facilitators, if required.

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 US: 252210, NQF Level 4 Worth 4 Credits
Learning Unit 1
Handle a range of customer complaints

The qualifying learner is capable of:

 Identifying customer's problem.
Unit Standard  Committing to solving the customer complaint.

Purpose  Arranging correct planning and solution to the customer's problems.

 Communicating with all stakeholders.
 Providing practical business solutions.

Learning Learners accessing this unit standard will have demonstrated competence
in:
Assumed to be
 Communication at NQF Level 3 or equivalent.
in Place  Mathematical Literacy at NQF 3 or equivalent.

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 Session 1
Identify the customer's problem.
SO 1

 The nature of the complaint is identified and assessed for level of severity.
Learning
 The origin of the complaint is identified based on the customer's input.
Outcomes
 Arrangements are made for the responsibility for the solving of the
(Assessment problem to be accepted by relevant individuals.
Criteria)
 The problem is documented according to organisation requirements

Problem Identification
A problem occur when there is a difference between what "should be" and what "is"; between the
ideal and the actual situation.
A problem:
 expresses the difference between the hoped for and the actual situation;
 Is directly or indirectly related to a desired outcome or standard of behavior.
Identifying a very clearly defined and specific problem is the first critical step to successfully
implementing the problem-solving process.
Identify the Problem before the Solution
When an individual faces a problem, the natural tendency is to propose possible solutions.
Consequently, the thought and discussion focuses on the merits and problems of the proposed
solution(s), rather than an in-depth discussion of the possible causes of the problem itself.
An inexperienced manager will soon find out, that a great solution isn’t worth much, if the problem
it resolves was misidentified.

For example,
At a local retail store, customers have complained about cash register operators, claiming that the cashiers were “not very
helpful,” and “they weren’t paying attention to what I asked for.” Several complaints noted that cashiers were “more
interested in chatting amongst themselves than answering my questions.”
After being directed to “do something about this,” by her manager, Mary, the supervisor developed a rule that stated,
“Cashiers on-duty may not talk to one another when customers are present.” She informed her boss of the new policy,
circulated it to her cashiers, and felt that the issue had been adequately resolved. The following week,
Mary was called into her boss’s office to explain why customer complaints about unhelpful cashiers were still “rolling in.”
This unfortunate situation existed because Mary had misidentified the problem (cashiers talking amongst themselves in front
of the customers) and then applied an ineffective solution (no-talking policy.)

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 If the supervisor had done some additional exploration regarding the problem and asked the
question, “why are the cashiers perceived as unhelpful and chatting amongst themselves rather than
helping the customer?” her research would have determined that the cashiers had not been
adequately trained in customer service standards and expectations. They weren’t aware of how they
should greet the customers or how they should deal with customer requests.
If the supervisor had correctly identified the problem – a lack of customer service training for the
cashiers was resulting in poor customer service at the point of check-out, she would have
implemented a different (and more appropriate) solution.

Identify the Problem, not a Symptom

If you want to resolve the root problem, treat the cause, not the symptom. For example, if you take
an aspirin for a fever, you’re treating the symptom (an elevated temperature) and not treating the
cause. You might experience temporary relief, but if the cause is left untreated, it’s likely that the
fever will return.
The same is true for resolving work-related problems.

For example
Mary was told to deal with the problem of her cashiers receiving customer complaints (The symptom) so she instituted a new
policy that said, “If an employee receives three or more customer complaints over a single pay period, (s) he will be fired.”
This no-talk policy may certainly produce short-term benefits, but if the supervisor never identifies the lack of effective training
as the real problem, then the customer complaints are sure to continue. Firing the offending cashiers (an outcome of the new
policy that treats a symptom) will not resolve the issue if the replacement hires don’t receive adequate training (a necessary
treatment for the root problem).
Sometimes numerous negative symptoms are all outcomes of a single root problem – so solving the root problem will resolve
many related problems.

Ask “Why? Why? Why? Why?”

Identifying a root problem may require the supervisor to ask several “whys?”

For example
Why are customers complaining about the cashiers?
Because the cashiers are not paying adequate attention to their needs during the checkout
Why are cashiers not paying adequate attention to customer needs during the check-out?
Because they are unaware that their behavior is off-putting to the customer
Why are the cashiers unaware that their behavior is not acceptable to customers?
1) Because they are not aware of what specific customer service behaviors are expected of them in this position.

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2) Their lack of appropriate behavior was never identified and flagged as unacceptable by a
supervisor.
Why are the cashiers unaware of the expected behaviors of their job?
1) Because they did not receive enough training about necessary behaviors, only about computer
operation, bagging and money handling.
2) Because the supervisor didn’t perform an adequate performance appraisal in the first two weeks
of their job.
Notice in this example that two causes of the poor customer service surfaced. If the supervisor had
not asked “why” then she would probably not have identified her role in creating this problem.
When you’ve done a good job of correctly identifying the root problem(s) then the task of identifying
workable solutions is much easier.
State a Problem Concisely and Precisely
Sometimes the identification of a problem gets lost in translation. A well-stated problem is one that
can be stated in a single sentence.
For example, in the case of the chatty cashiers, the problem could be stated as “a lack of effective
customer service training for cashiers is resulting in too many incidents of dis-satisfied customers.”
Notice that this problem statement doesn’t focus on a solution – it focuses on the root cause of the
undesired outcome, customer dissatisfaction. It also summarizes the problem into a single sentence
that contains the cause (lack of effective customer service training) as well as the effect (too many
instances of dis-satisfied customers).
A statement that is written as, “The problem is that the cashiers need training” is not correctly
phrased as a problem, it is phrased as solution.
The Acid Test
One test for checking to see if the problem you’ve identified is the real problem is to ask the
question, “if the problem I’ve stated had been resolved from the very beginning, would this current
situation be happening?”
Applying this test to the previous example…
If the supervisor had first asked, “if the cashiers didn’t talk to one another, would the customers be
complaining?” she could have quickly determined that her solution of implementing a don’t-talk
policy wouldn’t resolve the larger issue of cashiers’ lack of helpfulness. She should have been able to
foresee the failure of a no-talk policy because it didn’t resolve the unhelpfulness problem due to a
lack of training.
Writing

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 Ultimately, when all is said and done and a resolution has or has not been reached always take the
time to memorialize the same in writing. If, as in most cases, the matter is resolved to the
customer’s satisfaction, you will want to send the customer a brief follow-up email confirming that
the issue has now been resolved and the specific resolution involved. In those unfortunate times
when a solution cannot be reached, you want to send an email clearly memorializing what
transpired such that should the issue ever come back you can quickly review the email and be versed
in the same as needed
PROCEDURE FOR RECORDING COMPLAINTS
Complaints can be recorded in the complaint handling system which is accessible pan India by
branches, at contact center and also at other functions like legal , RCU etc as per the sources given in
the places where complaint can be recorded . The complaints are currently addressed through the
touch points, but the final resolution and intermittent steps which are required for resolution of the
complaints is handled in a centralized manner. Tracking of complaints is essential to ensure that
every complaint is resolved within the specified TATs.
To facilitate analysis of complaints, CRU will classify complaints as per the following categories:
• Type of complaint (Simple & Complex).
• Depending on complaint type and sub types
• Outcome of complaint
 Time taken to resolve a complaint
• The severity of the complaint (is decided based on the source of the complaint)
Analysis of complaints will assist in the overall evaluation of complaints and will be useful for
business and product development.
Records regarding complaints will also need to be kept for a specified period.
It is important to ensure that a complaint is identified accurately and is therefore allocated to the
correct category to enable effective analysis to be carried out.

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Session 2
Commit to solving customer's complaint.
SO 2

 Commitment to resolve the complaint is demonstrated by correct

Learning individuals.

Outcomes  Company support for the individuals and the responsible for resolution are

(Assessment provided.

Criteria)  Up to date information about the complaint processing is supplied to the

costumer.

The Complaint Management Process is designed to assist staff and customers in resolving complaints
fairly and efficiently. The process aims at enhancing customer satisfaction by creating a customer
focused environment that is open to feedback, resolving any complaints received and providing
favourable grounds to the organisation’s ability to improve its products and customer service. It
supports the values of the company and is consistent throughout all levels of management.
The company commits to ensuring that:
 All staff should acknowledge and appreciate the rights of all customers to provide feedback
about our company.
 Contact staff should be effectively trained and equipped with complaint handling skills and
procedures.
 Contact staff should attempt to resolve a complaint on the first contact to the customer’s
satisfaction.
 Contact staff should be courteous and helpful if a customer wishes to escalate a complaint.
 Complaint Management Process should be freely available to all customers and all relevant
assistance should be provided to a customer if they wish to escalate a complaint to the next
level or to an external body.
 A written version of the Complaint Management Process should be available to customers on
request.
 Customers should be kept informed of the status of their complaint during the course of the
investigation.
 Staff should keep promises made to customers regarding updates or call backs in resolving
complaints.

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 Staff should know how and when it is appropriate to escalate a complaint and takefull
responsibility for managing the complaint to a fair and reasonable resolution.
 Staff at all levels should take ownership and accountability for commitments made to
customers.
 staff should abide by the Complaint Management Process and the regulatory requirements of
the industry.
 Access to complaint resolution must be free of charge to a customer. This does not mean that
customers are not be charged for supply of energy or related services.
 If circumstances require, customer confidentiality in making a complaint may be observed, if
requested. Such requests will be dealt with on a case by case basis.
 Complaints are used as a basis for continuous improvement within the business.
HOW DO YOU PROCESS CUSTOMER COMPLAINTS?
While every complaint is different, it is very sensible for a business to have a clear process for
complaint handling. The process should be structured around a concise complaint handling policy
and simple procedures for the most likely situations.
The best way to gain staff ownership of a process is to involve all workers in the development and
updating of policies and procedures. It is very sensible to have a brainstorming session at least
annually and definitely after dealing with any significant complaints. During this session workers
should be encouraged to:
• think of all the possible things that could happen and work out potential solutions
• Record changes to policies and procedures
• agree on what training is required to effectively implement new processes
• discuss ideas for informing customers how to provide feedback or make a complaint
• Work out the most effective way to gather information
• develop a method of handling complaints that is non-punitive where individuals can be supported
to prevent recurrence
All of the above points reflect what should occur in any workplace. However to make sure
everything happens correctly, you need appropriate record keeping forms, technology and
administration.
WHAT POLICIES, PROCEDURES, LEGISLATION,
REGULATIONS OR CODES OF PRACTICE ARE APPLICABLE TO CUSTOMER COMPLAINTS?
Customers want their complaints to be easy to report, acknowledged, and dealt with quickly, fairly
and sensitively.

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A written complaint handling policy is a good way to ensure that complaints are taken seriously and
dealt with appropriately and consistently. It also helps to support staff, so be sure you understand
your businesses policy.
Here are some tips for developing a customer complaint policy.
 make it easy for all customers to complain
 Decide which staff has the authority to resolve a complaint, and make sure they know what to
do. The more a complaint is escalated to someone higher in the business, the more dissatisfied
the customer may become
 Set a time frame to respond to a complaint. Taking too long makes the problem worse
 Give one person responsibility for managing the complaint from beginning to end, so the
customer does not have to repeat their complaint to different staff.
 Ensure staffs know your policy and how to treat complaints fairly. Poor complaint handling, for
example blaming the customer for the problem or marginalising them by saying no one else has
complained, will only worsen the problem
 A complaint handling policy can:
 state why your business welcomes complaints, listing the benefits to customers, staff and the
business
 state who the policy covers and who is authorised to resolve complaints
 define a complaint
 commit to quick, fair and confidential complaint handling
 State who is responsible for taking, recording, resolving, analysing and reporting on complaints
 explain how to log complaints
 explain the complaint procedure and what to do about complaints
 set timelines for complaint handling and keeping customers informed
 List acceptable ways to resolve complaints
 explain what will happen if the complaint cannot be resolved internally
 be reviewed regularly for effectiveness and updated
 state where people can get further help
The information above has been sourced from The SA Government Equal Opportunity Commission
Clearly the policy is the broad outline of how a complaint is handled. The next step is to develop
procedures.
There may be a number of different procedures used by a business eg:
• For a verbal complaint
• For a written complaint

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• For a product complaint
• For a complaint about a service or staff
The South Australian Government Equal Opportunity Commission also provides a useful checklist
regarding developing complaint handling procedures. Click on to the link below.
Up to date information about the complaint processing is supplied to the costumer
Complaint Management Process- Internal
Companies need to have a process in place for addressing internal complaints in a quick and
effective manner.
For all inbound customer complaints that require further investigation, the customer should be
advised that they will be contacted within two days with a resolution or an update in regards to their
concerns. The aforementioned time frame can be altered depending on the type of investigation
required. E.g. where a response is awaited from the network and the B2B time frames need to be
adhered to. If the customer’s issue is not resolved at the second contact (after two days) and needs
further investigation, customers should be kept informed about the time frame when Red Energy
would next contact them in regards to the matter. Customers should be advised when they lodge a
complaint the approximate time frame for a response. If the case is complex, customers should be
given a time for the call back which should be no more than 30 days and a contact name and
number should be provided as a reference for the customer.
All written complaints should be acknowledged within 5 days of receipt of the complaint from the
customer and all complaints received via email should be acknowledged within 48 hours of receipt.
All complaints should be investigated and dealt with impartially. All correspondence, agreements,
payments, resolutions and other relevant information must be kept on the customer's complaint file
and recorded in Gentrack on the customer’s account. If a customer is not satisfied with the
resolution provided by the first point of contact, the complaint can be escalated to a senior
consultant (CSSC/CISS) or a Team Manager and alternative offers of resolution can be discussed. In
the event where a customer is not satisfied upon discussing their concerns with Team Manager or
requests the complaint to be escalated internally, the complaint should be referred to the Manager
for the relevant business area.
Reasons for Escalated Complaints:
Complaints can be escalated if:
 The customer explicitly requests to speak to a supervisor or manager.
 The resolution offered by the contact staff during initial stages of the complaint is not accepted
by the customer.
 The nature of the complaint is complex and requires extensive investigation.

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 The complaint is about the attitude or behaviour of a staff member.
 The complaint has not been resolved within the agreed time frame.
 The customer is threatening to take the complaint to an external party.
 The customer has had more than 2 complaints already lodged.
 The compensation requested by the customer is not within the contact staff’s discretion.
 If the customer would like an apology or response via a letter, the matter needs to be escalated
to a higher level. This is necessary because the authority to sign correspondence on behalf of
Red Energy does not rest with contact staff except for cases where a customer has only
requested information in regards to their account.
If a customer requests for personal information and/or records in the process of an investigation

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Session 3
Arrange appropriate planning and solution to the customer's problems.
SO 3

 The appropriate solution for the solving of the costumer's problems is

Learning
identified.
Outcomes
 Contact is maintained with all relevant stakeholders.
(Assessment  Correct solution is applied to the customer's complaint within the agreed
Criteria) timeframe.

The appropriate solution for the solving of the costumer's problems is identified.

Choose the optimal solution. Use the criteria you developed in the third step of this problem-solving
process to choose the best solution. Develop a base of support that will ensure you can implement
the solution. Prepare for contingencies.
When you solve problems systematically, you save time, achieve better solutions, and increase your
credibility with the customer and the perceived value of what you've done. If you can solve
problems the customer is facing more expeditiously than someone else, the customer will
appreciate the time saved.
Problem solving involves some considerations beyond those addressed by the five-step process.
Once you have the problem identified, you can sometimes rely on a known solution or a
combination of known solutions. At other times, no ready solution is apparent. In this case, you may
need to do a business case analysis to determine if it will be profitable for your company to develop
a solution. This includes asking what might be involved in developing the solution, how much time
the process would require, and how well suited your company is to do the job. The issues become
more complicated, but the problem-solving process may also be more rewarding.
You may need to tap into the knowledge you have acquired in solving similar or even non-similar
problems or the knowledge that exists in your company. You may need to have someone initiate
research and create a solution from scratch, (which can be cost prohibitive), or you can find a
partner that already has the solution you need. You will need an innovative approach. Deciding to
create solutions and driving them through the organization is part of what makes exceptional sales
leaders exceptional.
Contact is maintained with all relevant stakeholders.
Maintaining Customer Contact

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Part of relationship selling involves maintaining regular contact. If you neglect a client who has trust
in your integrity as a person and as a salesperson, that client may finally be forced to turn to your
competitor. (Who has probably been calling regularly to get their business?) So, make sure you not
only build the relationship, but keep regular contact and keep all channels of communication open.
Make available several methods of contact for any type of emergency need. Or you may find that, in
an emergency, your client was forced to contact that persistent competitor and discovered that,
"Hey, he/she's a nice person too! And their product is maybe even a little better! Hmmmm!" So, the
lesson is, make sure you maintain contact and are always accessible to your clients, or you may find
yourself having to replace them!
An important part of relationship selling is also having the technology available to manage and
maintain those relationships. That often comes in the form of contact management software or a
good Customer Relationship Management (CRM) system. We'll talk about that a little later in this
article.
A new sales technique that has recently surfaced involves spending significant sales time only with
those prospects who offer the highest probability of a sale. Arriving at that determination involves
asking pointed questions and letting the prospect do the majority of the talking. The approach is to
focus only on prospects who need your product, want you product, and can afford your product.
Rather than using the effort trying to turn a low probability prospect into a high probability prospect,
you focus your efforts entirely on the high probability group.
Ramsey and Lawrence identify the following tips to boost the chances of effectively resolving
complaints:
 Respond quickly and personally - response time is critical and no complaint should go
unattended for more than 24 hours. Failure to return calls or answer letters and the like
cannot only compound the original issue, but can become an additional source of
frustration, anger and dissatisfaction'
 Assume that the complaint is bonafide - do not try to deny responsibility or wrongdoing,
belittle the complaint, argue or try to convince the customer they are wrong, give excuses or
try to blame others. It may be that the problem has been a misunderstanding of what was to
be expected from the service or product;
 Listen - do not interrupt, don't hurry the explanation of the complaint, and don't be afraid of
pauses in the conversation. Venting is seen as an important part of the healing processes
and customers can be patient, understanding and forgiving if they feel that someone is
listening, with listening sometimes being all it takes to restore their confidence;

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 Ask questions - and probe to insure that all information and facts have been gathered. Try to
avoid jargon and other organizational specific language that could confuse or anger the
customer;
 Take notes - to ensure an accurate record of the complaint and the conversation;
 Paraphrase your understanding of the situation - this confirms that you understand what the
customers complaint is and ensures that they feel as though they have been heard and their
complaint acknowledged;
 Accept blame where appropriate, apologies - even if there is uncertainty about fault, remain
civil no matter how angry or abusive the customer becomes;
 Respond promptly, never promise what is unable to be delivered - and if necessary refer the
customer to someone who can provide satisfaction or a solution if you are unable to. If it is
likely that a resolution will take some time, make sure the customer is informed of the time
frame;
 Try to give the customer a number of solutions, where possible do more than what the
customer expects - ensure that the solutions offered not ‘token’ remedies. Where possible
ask the customer to say what solution they would recommend or like. Lawrence notes that
"in most cases, people actually demand less that you would expect. They usually just want
you to take responsibility and apologies for any inconvenience";
 Implement the remedies as soon as possible;
 Thank the customer - for their feedback and for taking the time and energy to raise their
complaint with you;
 Follow up - via phone call, e-mail or letter to check on the customer's continued satisfaction.

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Session 4
Communicate with all stakeholders.
SO 4

 Relevant internal parties are notified of the complaint and its routing.
Learning
 Immediate superior is notified of the customer's complaint for further
Outcomes
action if escalation requires problem solving.
(Assessment  The customer is informed about the outcome and the progress of the
Criteria) solution.

The following seven stages in complaint handling should be described in internal procedures:
• A complaint should be acknowledged promptly
• The complaint should be assessed and assigned priority
• If investigation is required, it should be planned
• The investigation should resolve factual issues and consider options for complaint resolution
• The response to the complainant should be clear and informative
• If the complainant is not satisfied with the response, internal review of the decision should be
offered and information about external review options should be provided
• Any systemic issues that arise as a result of the complaint should be considered and acted on
Management responsibility
A senior manager should be responsible for managing the complaint handling system
This person’s responsibilities should include the following:
• Promoting a positive culture
The complaint manager should be the internal ‘face’ of the complaint handling team and should
promote a positive culture that values complaint handling
They should be the complaint ‘champion’, ensuring that the agency remains focused on having a
strong, integrated complaint system
• Integrating complaint information
The complaint manager should be consulted when the agency is evaluating its existing systems,
implementing new processes or extending its existing business
Complaint information should be an integral resource for all business analysis
• Following up
The complaint manager should bring systemic issues and weaknesses that are identified through the
complaint system to the attention of a governance committee, such as the audit committee or
executive team

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The complaint manager should have direct access to other senior managers
• Keeping informed
The complaint manager must keep up to date with best practice, regularly review the agency’s
complaint handling system and participate in complaint handling forums
The customer is informed about the outcome and the progress of the solution

WRITTEN RESPONSES TO COMPLAINTS

A written response to a complaint should be issued to the Customer. A written response would need
to take the following into consideration:
• Have all aspects of the response been addressed?
• Is the response in plain language?
• Is the response free of grammatical and typographical errors?
• Does the response attempt to resolve the issues?
• Does the response provide all the information that the complainant needs to understand the
response?
RESOLUTIONS, SOLUTIONS AND REMEDY (PENAL INTEREST)
• In general, resolutions should be fair and may be non-financial or financial. Where a financial
remedy is considered, appropriate aim should be to provide fair compensation.
At a minimum, compensation should be given for any direct loss or damage caused as a result of a
breach of obligations when providing a financial service.
• Interest payment may be necessary for certain complaints where there has been an internal delay
or lapse in service by the Company. The decision for interest payment will be made after approval
has been received from respective stake holders. Penal Interest would be payable at the prevailing
State Bank of India Fixed Deposit rate (Term deposit)
• The customer needs to be kept informed during all stages of the investigations, as well as of the
outcome.
• CRU should carefully engage the 'right' staff members who will be senior enough to participate in
the decision-making process.
Where a settlement has been reached, it should be regarded as full and final and the customer
should sign a release to acknowledge this is the case.

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Session 5
Provide practical business solutions.
SO 5

 The nature of the complaint is identified and assessed for level of severity.
Learning
 The origin of the complaint is identified based on the customer's input.
Outcomes
 Arrangements are made for the responsibility for the solving of the
(Assessment problem to be accepted by relevant individuals.
Criteria)
 The problem is documented according to organisation requirements

Appropriate partnership with the purpose of enhancement the solution of the costumer's problem
is arranged.
Methodology
 Redesign the survey content in partnership with client
 Refine the universe
 Agree sample sizes across size, geography and product
 Agree approach to key clients
 Select clients as per sample and distribute across quarters
 Conduct quarterly on-line surveys with selected sample
 Conduct product / qualitative face-to-face interviews once or twice per annum
 Feedback to business and clients at portfolio level
 Access to offsite website for on-line results (and history)
 Employee service delivery perception survey with representative sample
 Aggregation of quarterly campaign results at year-end (during 4th quarter)
Client Responsibilities
• Clear specification of the nature of quantitative and qualitative data required as output
• Provision of an accurate database of contact details
• Positioning of survey with participants
• Scheduling internal project meetings
• Feedback on results to clients

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The resolution of customer's complaint is used for relationship development and attraction of
further sales.
Benefits of the Approach
• Longer intervals (between 1 and 1½ years) reduce face-to-face interview fatigue
• Broader coverage of the total universe – aim for coverage of total universe
• Real-time access to data to enable speedy responses to client satisfaction issues raised by
clients
• Provide appropriate level of feedback to enable management reinforcement of and
recognition for corrective actions taken by operational areas
• Significantly reduced possibility of annual events influencing results inappropriately

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 US: 10313, NQF Level 4 Worth 10 Credits
Learning Unit 2 Comply with service levels as set out in a Contact Centre
Operation

This unit standard forms part of the qualification, National Certificate in

Contact Centre Operations NQF Level 4. Learners working towards this unit
standard will be learning towards the full qualification, or will be working
within a Contact Centre environment, where the acquisition of competence
Unit Standard against this standard will add value to learner's job. This unit standard is

Purpose intended to enhance the provision of intermediate level service within the
Contact Centre industry.
The qualifying learner is capable of:
 Demonstrating an understanding of company specific service levels.
 Meeting and maintaining service levels

 Learners accessing this unit standard or qualification will have

Learning demonstrated competency against unit standards in Contact

Centres at NQF Level 2 or equivalent.
Assumed to be
 Learners are expected to have demonstrated competency in
in Place language, numeracy, literacy and communication at NQF Level 4 or
equivalent.

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Session 1
Demonstrate an understanding of company specific service levels.
SO 1

Learning  All relevant service levels are explained.

Outcomes  The purpose of service levels is described and explained.

(Assessment  The requirements of all relevant service levels are listed, described and

Criteria) explained.

All relevant service levels are explained.

Working in a Call Centre environment requires a fairly high level of computer literacy, and is
normally an entry requirement in applying for a Call centre Agent’s position.
Extensively with computer literacy.
Introduction to Service Level Agreements
Your Call Centre may have several Service Level Agreements in place for a variety of services, for
example management, information management, IT systems, HR management or development.
Self Reflection: SLA’s
 Do you know what types of Service Level Agreements your organization has in place?
 Who manages the Service Level Agreements – and how?

Definition of a Service Level Agreement (SLA)

A service level agreement (frequently abbreviated as SLA) is a part of a service contract where the
level of service is formally defined.
In practice, the term SLA is sometimes used to refer to the contracted delivery time (of the service)
or performance. As an example, internet service providers will commonly include service level
agreements within the terms of their contracts with customers, as a way to signify to their
customers that their service may go down from time to time and that they must accept this breach
in service as a (non-refundable) possibility!
A service level agreement (SLA) is a negotiated agreement between two parties where one is the
customer and the other is the service provider. This can be a legally binding formal or informal
"contract" (see internal department relationships). Contracts between the service provider and
other third parties are often (incorrectly) called SLAs — as the level of service has been set by the
(principal) customer, there can be no "agreement" between third parties (these agreements are
simply a "contract").

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Operating Level Agreements or OLA(s), however, may be used by internal groups to support SLA(s).
The purpose of service levels is described and explained.
Purpose of Service Level Agreements
The SLA records a common understanding about services, priorities, responsibilities, guarantees, and
warranties. Each area of service scope should have the "level of service" defined.
The SLA may specify the levels of availability, serviceability, performance, operation, or other
attributes of the service, such as billing.
Note:
The "level of service" can also be specified as "target" and "minimum," which allows customers to be
informed what to expect (the minimum), whilst providing a measurable (average) target value that
shows the level of organization performance.
In some contracts, penalties may be agreed upon in the case of noncompliance of the SLA (but see
"internal" customers below)
It is important to note that the "agreement" relates to the services the customer receives, and not
how the service provider delivers that service.
Output Based SLA
Service-level agreements are, by their nature, "output" based — the result of the service as received
by the customer is the subject of the "agreement."
The (expert) service provider can demonstrate their value by organizing themselves with ingenuity,
capability, and knowledge to deliver the service required, perhaps in an innovative way.

Input Based SLA

Organizations can also specify the way the service is to be delivered, through a specification (a
service-level specification) and using subordinate "objectives" other than those related to the level
of service. This type of agreement is known as an "input" SLA.
This latter type of requirement is becoming obsolete as organizations become more demanding and
shift the delivery methodology risk on to the service provider.

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The requirements of all relevant service levels are listed, described and explained.
Structure of Service Level Agreements
SLAs commonly include segments to address: a definition of services, performance measurement,
problem management, customer duties, warranties, disaster recovery, and termination of
agreement.
Service-level agreements (SLAs) are critical for the success of any outsourcing initiative as they set
expectations for both parties – the outsourcer and the customer.
The following outlines the type of information contained in a Service Level Agreement:
 Operating days and hours
 Definition of work
 Processes and procedures
 Agent quality
 Agent coaching
 Agent training
 Escalation procedures
 Technology
 Uptime requirements and performance
 Backup and contingency
 Reporting
 Transaction handling
 Security

Critical Note:
The best service-level agreements are very detailed and address every aspect of your relationship
with your outsourcer, including rewards and penalties for good and bad performance. They also
include how to handle transitions when relationships end.

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Service-level agreements (SLAs) should include commitments for response, escalation and resolution
time whenever possible, and should break down the different types of issues.
Vendors often have categories predefined, such as major and minor outages.
Some companies also break down internal issues to troubles (something isn't working) versus service
(i.e., a new feature or capability, or a change).
Types of Service Level Agreements
You might have internal elements of your enterprise for which you need to guarantee service, as
well as third party (outsourced) providers that you depend on to provide levels of service to your
customer (external).
Critical Note:
You must ensure that internal objectives can be met, from which you offer external guarantees to
your customers.
This reliance of external SLAs on internal SLAs (which in turn might be dependent on outsourced
SLAs) is the key to delivering true end-to-end service level agreements.
It is important to distinguish between different types of SLAs – three types of SLAs are defined
below:
External SLA
Tracks services that you provide to your external customers. Reports are available to your
customers, showing levels of service that are being provided. In this type of SLA, you are considered
to be the provider of services for your external customer.
Internal SLA
Tracks the internal operation of your computing infrastructure. Reports generated are for internal
use only. In this SLA, you are considered to be the provider, while your customer can also be your
own organization or another internal group ultimately responsible for providing services to an
external customer. Use an internal SLA to monitor your own internal operations, enabling you to
provide services to your external customers on a more reliable basis.
Outsourced SLA
Tracks services provided to you by a third party. For this type of SLA, you are considered to be the
customer, not the provider. You might want to define an outsourced SLA to monitor critical services
that are provided to your organization, core services for your environment that you use to provide
your services to your external customers.
Tip:

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While SLAs can be created to support one of these types, SLAs are increasingly becoming more
oriented toward end-to-end and structured agreements, with a single SLA made up of internal,
external, and outsourced layers.
Company Specific SLA’s
Your Facilitator will lead a discussion on the following topics:
 Internal SLA’s in place in Club Leisure
 External SLA’s in place in Club Leisure
 Outsourced SLA’s in place in Club Leisure
For example, consider the environment depicted in the Graphic presentation below

Case Study: Showing the tiered nature of internal, external, and outsourced SLAs.
 Company Y provides a Web hosting service for Company Z that includes a point-of-presence
(represented by the circle), Web servers (A, B, and C), and a back-end database.
 The database is located at a remote site (where coordinated backup can occur) and is accessed
through a backbone network provided by Company X.
 An external SLA is depicted that represents Company Z's access to the entire Web hosting
service.
 Within Company Y, there are internal SLAs to track network connectivity between the point-of-
presence and the Web servers, and to track the availability of the back-end database.
 Also pictured is the SLA provided by Company X, that assures proper operation to the backbone
network (for which Company Y is a consumer).
 The SLA drawn as a dotted line tracks Company Y's view of the backbone network, and serves as
a way of checking the consumed SLA from Company X.

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 This is the outsourced SLA.

Group Activity: SLA Indicators

In your group, discuss the following and provide feedback to the group:
1. Draw up a Mind Map of the product and specific industry knowledge that Call Centre Agents must
have in Club Leisure, The Mind Map must show main cluster areas, which must be translatable into
performance indicators and training needs.
2. From the Mind Map drafted above, identify at least 4 specific service level areas which will be
present in the internal SLA’s with Contact Centre Operators.
3. From the Mind Map drafted above, identify at least 4 key specific service level areas which will be
present in the external SLA’s with your company’s IT Provider.
4. Identify if any Outsourced Service Level Agreements would be relevant – if so, what would the SLA
service level indicators be?

Implementation processes are monitored to ensure compliance.

Monitoring Service Level Agreements
Because of the importance to business operations, companies manage sourcing arrangements
through complex contracts that contain detailed statements of work (SOW) describing the services
and deliverables to be provided, and SLA’s that use metrics to describe the desired performance
standards and a framework for monitoring the ongoing delivery of service.
When chosen wisely and implemented / monitored correctly, service level metrics are an invaluable
governance tool.
They can provide:
 Precise delivery standards for service attributes such as quality, responsiveness, and efficiency
 An objective means for determining whether ongoing performance meets expectations and a
basis for triggering rewards of penalties based on that performance.
 Valuable trend and operational data that enables the rapid identification and correction of
issues
 A foundation for making informed adjustments in service delivery to meet changing business
requirements.
Tip:
Unfortunately service level metrics rarely deliver the intended benefits listed above. Poorly selected
or constructed service metrics can actually motivate behaviours that are detrimental to the success
of the sourcing arrangement and its ability to deliver the desired business results.

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Why Service Metrics Fail
Despite their importance, service level metrics are often added as an afterthought when negotiating
a service level agreement.
1. Wrong Metrics
Companies enter into service level agreements for one reason – to further one or more business
objectives. If the goal is to streamline operations, then the service metric should measure the
services improvement to company’s operation.

Note:
Typical mistakes made in choosing metrics:
 Going for ease of measurement rather than fit to business objective
 Not considering collection and analysis effort
 Does not provide actionable information – if it does not clearly tell you what should be done to
fix the problem, it is a useless metric
 Measuring attributes outside the service provider’s control
 Picking a metric that is not clearly defined, and methods of collection of metric data are open to
interpretation.
2. Wrong Target Setting
A service level agreement (SLA) normally contains both metrics and targets. For example, a Call
Centre metric may be “calls per rep per hour” and the target may be set to 15. The service provider
is judged (and rewarded / penalized) by its ability to meet the target. Often companies set targets to
what is desirable rather than realistically achievable, or set the targets too low to achieve business
goals.
3. Insufficient Metrics to support sound decision making
Simplicity is a valid objective when choosing metrics for a SLA, and is often applied to the point if
listing a few key indicators only. Though such metrics may be useful, they may not be able to supply
the entire picture or assist in troubleshooting when things go wrong.
4. Improper set up and infrastructure to support metric usage
Like any other tool, metrics require an investment of time, resources, education to be effective. SLA
reporting is often seen as a burdensome overhead activity that produces reams of number filled
data that lies unread in a cubicle. Someone in the organization must be responsible (and held
accountable) for managing vendor’s performance to its terms.
Tip:

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Planning for and implementing metrics collection, analysis and reporting processes is essential – and
training of the Business managers (and Directors) in reading and interpreting the metric data is just
as essential.
5. Misused penalties and incentives
Performance penalties and rewards can be a powerful tool if used correctly, but can poison the
relationship if used incorrectly, even encouraging wrong behaviours. Metrics must be firmly aligned
to business objectives, and penalties / rewards meaningful contributor.

Individual Activity: Using Metrics in Management

On your own, look at the following questions and provider feedback to the group during a general
discussion.
1. How does Service Level Agreements contribute to the management of staff and outsourced
partners?
2. How is the development of Metrics linked to your Organizational Business Strategy and Goals?
3. How can the correct development of metrics support business or training needs analysis?

Steps for creating better Service Metrics

Choosing the right service metrics, creating effective service level agreements and managing services
using those agreements is critical in the Contact Centre environment.
1. Start from the Business Objectives
 List the major business objectives.
 For each objective, list how the service contributes to the objective
 Next, consider the attributes that assess each contribution.
Example Box:
One objective in outsourcing the support of a corporate web-site may be to attract more prospective
buyers to the business.
The outsourcing engagement would contribute to this objective by developing an attractive web-site
that encourages more visitors, promotes to company’s products and services and captures contact
information for sales follow up.
These contributions can be measured by the amount of people who visit the web-site, noting the
access to each product’s features, and capturing of visitors information or sign-ups.

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2. Turn the Objectives into Metrics
To turn the attributes determined above into metrics, consider the following:
 Are the attributes within the power of the service provider to control or affect?
 If the attribute is not entirely in the control of the service provider, can it be supplemented by
another metric that isolates the vendor’s responsibilities?
 Would the metric data from those attributes provide actionable insights?
 Consider the behaviour that would be motivated by the metric. If the vendor optimizes
performance to maximize this metric, does it improve business performance?
 What would be the means of collecting and analysing the metric data?
Continuing the Example:
The bottom line metric may be the number of new buying prospects per month. However, this
number is only partially within the control of the service provider. The other attributes could be
measured by the number unique individuals that visit the site, the number of page views for
company products, and the number of on-line sign-ups for demo’s and downloads.
Each attribute is actionable – if for example the number of product page views drop, they can see it
is time for new content or better promotion.
3. Add Operational Metrics
Operational metrics fall into 4 categories:
 Volume
 Responsiveness
 Quality
 Efficiency
Continuing the Example:
Using demo and download sign ups, the company wants to know the number of sign-ups per time
period (volume), the time needed to pass these prospects to sales (responsiveness), the type of
person signing up (quality), and cost of sign up delivered (efficiency).

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4. Set reasonable performance targets
Each metric should have its own performance targets in the SLA, and must be set realistically, based
on actual history.
Continuing the Example:
The company wants 1000 download sign-ups per month, these sign-ups must reach the sales division
within 15 minutes of occurrence, at least 60% of the sign ups must be business people, and the cost
must not exceed R15-00 per sign up.
These targets are actionable, and set very clear expectations for the service provider. Likewise,
incentives or penalties can be provided if performance targets are exceeded or failed.
5. Create a metrics definition document.
The metrics definition document accompanies the service level agreement and describes each
metric in detail. It describes the intent of the metric (why it was chosen), how the metric is
measured, and how the metric is interpreted. The goal is that both parties capture, analyze and act
upon the metric in the same way, use the same tools and analysis methods, and ensures clarity of
action when metric data changes.
For example, is a spike in data (up or down) auctioned when it happens, or is data tracked over 2 – 3
months before action is required?
6. Build the contract to facilitate changes in the SLA
Business conditions change, service needs and parameters change, and the SLA must be open to
change where required.
7. Match SLA’s with separate customer satisfaction surveys.
Performing separate customer satisfaction surveys of a given service’s internal customers is a critical
double check of both the vendor’s performance and the quality of the SLA and its metrics. If the SLA
meets or exceeds performance targets, but customer satisfaction is low (or vice versa), then the SLA
is using the wrong metrics.
Mismatch between customer satisfaction data and SLA data is a clear indicator that review is
required!

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Session 2
Meet and maintain service levels.
SO 2

 Relevant company specific levels are implemented.

Learning  Implementation processes are monitored to ensure compliance.

Outcomes  Service level timeframes and targets are consistently met as per company

(Assessment specific requirements.

Criteria)  Potential constraints in meeting and maintaining service levels are

identified and evaluated.

Company Specific Service Levels

Common Metrics
Service-level agreements can contain numerous service performance metrics with corresponding
service level objectives. A common case in IT Service Management is a call centre or service desk.
Metrics commonly agreed to in these cases include:
 ABA (Abandonment Rate): Percentage of calls abandoned while waiting to be answered.
 ASA (Average Speed to Answer): Average time (usually in seconds) it takes for a call to be
answered by the service desk.
 TSF (Time Service Factor): Percentage of calls answered within a definite timeframe, e.g., 80% in
20 seconds.
 FCR (First Call Resolution): Percentage of incoming calls that can be resolved without the use of a
call-back or without having the caller call back the helpdesk to finish resolving the case.
 TAT (Turn Around Time): Time taken to complete a certain task.

Uptime Agreements are another very common metric, often used for data services such as shared
hosting, virtual private servers and dedicated servers.
Common agreements include percentage of network uptime, power uptime, amount of scheduled
maintenance windows, etc.

Group Activity: Company Specific Service Levels

In your groups – look at the Common Metrics provided above, and answer the following
questions:

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1. For each of the common metric categories provided above, define the company specific targets
that are deemed acceptable in Club Leisure.
2. How are these targets communicated and maintained?
3. What monitoring system is in place to ensure adherence to the targets?
Resource Guide:
Refer to your Resource guide P5 for a Resource 1: Metrics in SLA Monitoring.

Implementation processes are monitored to ensure compliance.

Monitoring Implementation
The question many Call Centre Team leaders and Managers ask is:
 What do I monitor in the Call Centre environment?
 Which pressure points or areas must be included in a daily / weekly monitoring plan?
 How do I use monitoring information to overcome potential constraints in meeting and
maintaining service levels?
Real-Time Monitoring
Real time monitoring and reporting provides critical contact centre metrics and gives supervisors the
ability to manage their agent teams effectively. Authorized supervisors can monitor live agent and
customer interactions from any location. A supervisor uses a web browser to pick an agent to
monitor. A sophisticated Call Centre system will allow the supervisor to observe, select another
agent or quit monitoring.
Benefits of Real-Time Monitoring include:
 Complete visibility into your call centre operations
 Customer service quality assurance
Tip:
Performance management has been a challenge due to varied technologies and data intricacies
often involved in Contact Centres. While numerous systems integrate to support the operation of
Contact Centre, data from these systems are not always processed and visualized in the right
manner to aid performance management.
 Pressure Points in Monitoring
 Call Centre Process Flow
The Diagram below illustrates the call flow (black arrows) along with the flow of information from
Call Centre transaction systems.
Performance related data is extracted from the individual transaction systems and transformed for
visualization in the form of reports and charts.

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Conventionally, for performance management focus was on the data present in data transformation
and reporting layers (highlighted area).
Tip:
This led to inconsistencies in metrics and reports affecting performance management. Data analysis
of the underlying transaction systems and building a robust technology infrastructure are essential
for effective Contact Centre Performance Management.

Importance of Metrics
Contact Centres generate huge volume of transaction data in numerous systems. This data is used to
derive its performance metrics. However non-standardization of data elements across systems,
leads to inconsistency in the derived metrics and reports. Usability of these derived metrics is also
greatly affected by ability to quickly visualize the required information.

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Understanding the nature and source of data is essential to derive proper metrics in a contact
centre. Reporting infrastructure has to be abstracted from the raw data and a semantic layer has to
be built, so that users get faster access to metrics and reports.
Metrics help spot issues, identify root causes and control factors affecting customers. However,
complexity and proliferation of systems in a contact centre makes it difficult to derive the right
metrics.

Insight thru Data Analysis

While Contact Centres use traditional reports and charts to monitor performance, they lack the
ability to obtain insights into their operations. Often complex relationships and patterns remain
hidden in the data, which are revealed through manual analysis.
Data Analysis is required to uncover hidden relationships and patterns in the data. A
multidisciplinary team is required to perform the tasks involved in implementing analytic projects.
Understanding of Contact Centre processes and data that drive them are essential for a successful
implementation.
Gain insight from customer interactions
Conventional reports cannot uncover complex patterns and relationships present in interaction data.
Analytics improves performance management of contact centres by providing such insights.
Data Quality
Poor data quality makes an otherwise helpful report and insight useless. It is very important to
realize that a functioning contact centre is not automatically ready for implementing performance
management strategies. This is because the rigor applied to validate data quality during
implementation may not rise to the standard expected for performance management.
Data Analysis is an important step in any performance management initiative. During this process,
data has to be compared against system of records to identify inconsistencies. This activity has to be
performed on a periodic basis to ensure clean data.
Using Metrics to Monitor Performance
The following article was written by Penny Reynolds, a founding partner of a Nashville Call Centre
School, a contact centre consulting and education company.
Article: Monitoring Call Centre Performance
Read the following article for discussion in the next activity.
A new look at THE TOP 20 Contact Centre Metrics

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The evolution of a simple call centre into a multichannel contact centre doesn't happen overnight.
You may need to add or upgrade technologies, and certainly staff skills will need to expand as
customer contacts begin to include e-mail and Web chat in addition to incoming phone calls.
It's also important to rethink what performance measurements are important for this new breed of
operation. Are the measures of performance that served you well in the call centre the same ones
that will determine how well the multichannel contact centre is working?
You can organize contact centre standards into three categories: service, quality, and efficiency.

We've put together the top 20 metrics in these categories.

SERVICES MEASURES
The most important measures of performance in the contact centre are those associated with
service.
Some of these measures are the same for both the old-fashioned call centre and the modern-day
contact centre, while some need to change slightly to reflect the new types of transactions.
1) BLOCKAGE
An accessibility measure, blockage — busy signals — indicates what percentage of customers will
not be able to access the centre at a given time due to insufficient network facilities in place. Most
centres measure blockage by time of day or by occurrences of “all trunks busy” situations. Failure to
include a blockage goal allows a centre to always meet its speed-of-answer goal simply by blocking
the excess calls. As you can imagine, this damages customer accessibility and satisfaction, even
though the contact centre appears to be doing a great job of managing the queue.
The contact centre must also carefully determine the amount of bandwidth and e-mail server
capacity to ensure that large quantities of e-mails do not overload the system. Likewise, the number
of lines supporting fax services must be sufficient.
2) ABANDON RATE
Call centres measure the number of abandons as well as the abandon rate, since both relate to
retention and revenue. Keep in mind, however, that the abandon rate is not entirely under the call
centre’s control. While abandons are affected by the average wait time in queue (which the contact
centre can control), a multitude of other factors also influence this number, such as individual caller
tolerance, time of day, availability of service alternatives, and so on.
Abandon rate is not typically a measure associated with e-mail communications, as e-mail does not
abandon the “queue” once it has been sent, but it does apply to Web chat interactions.
3) SELF-SERVICE AVAILABILITY

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More and more contacts are being offloaded from contact centre agents to self-service alternatives.
In the contact centre, self-service usage is an important gauge of accessibility and is typically
measured as an overall number, by self-service methodology and menu points, and by time of day or
demographic group. In cases of Web chat, automated alternatives such as FAQs or use of help
functions can reduce the requirement for the live interaction with a Web chat agent.
4) AND 5) SERVICE LEVEL AND AVERAGE SPEED OF ANSWER
Service level, the percentage of calls answered in a defined wait threshold, is the most common
speed-of-answer measure in the call centre. It is typically stated as X percent of calls handled in Y
seconds or less. Average speed of answer (ASA) represents the average wait time of all calls in the
period.
In the contact centre, speed of answer for Web chat should also be measured and reported with a
service level or an ASA number. Many centres measure initial response as well as the back-and-forth
times, as having too many open Web chat sessions can slow the expected response time once an
interaction has begun. The speed of answer for e-mail transactions, on the other hand, is defined as
“response time” and may be depicted in terms of hours or even days, rather than in seconds or
minutes of elapsed time.
6) LONGEST DELAY IN QUEUE
Another speed-of-answer measure is how long the oldest call in queue has been waiting: the longest
delay in queue (LDQ). A number of centres use real-time LDQ to indicate when more staff needs to
be made immediately available.
Historical LDQ is a more common measure, to indicate the “worst case” experience of a customer
over a period of time. Historical LDQ is measured in two categories. One is the longest delay for a
customer whose transaction was finally handled by an agent (longest delay to answer), and the
other is the longest delay for a customer who finally abandoned the contact (longest delay to
abandon), as might be the case in a Web chat scenario.
QUALITY MEASURES
Perhaps a more significant indicator of customer satisfaction than the “how fast” measures outlined
above is “how well” the contact was handled.
7) FIRST RESOLUTION RATE
The percentage of transactions completed within a single contact, often called the “one and done”
ratio, is a crucial measure of quality. It gauges the ability of the centre, as well as of an individual, to
accomplish an interaction in a single step without requiring a transfer to another person or area and
without needing another interaction at a future time to resolve the issue. The satisfactory resolution

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of a call is tracked overall in the centre, as well as by type of call and perhaps by time of day, by
team, or by individual.
You should likewise track the one-contact resolution rate for e-mail transactions and Web
interactions. The resolution rate will likely be lower for e-mails, as it generally takes multiple
messages between two parties to resolve a matter to completion.
8) TRANSFER RATE
The transfer percentage is an indication of what percentage of contacts has to be transferred to
another person or place for handling. Tracking transfers can help fine-tune the routing strategies as
well as identify performance gaps of the staff. Likewise, tracking e-mails that must be transferred to
others or text chat interactions that require outside assistance helps to identify personnel training
issues or holes in online support tools.
9) COMMUNICATIONS ETIQUETTE
One of the critical factors that affect the caller's perception of how well a call was handled is simple
courtesy. You can monitor the degree to which telephone communications skills and etiquette are
displayed via observation or some form of quality monitoring.
E-mail and Web chat etiquette should also be observed. Standard wordings that employees should
follow in both types of communications should be carefully observed, reviewed, and recorded.
10) ADHERENCE TO PROCEDURES
Adherence to procedures such as workflow processes and call scripts is particularly important so
that the customer receives a consistent interaction regardless of the contact channel or individual
agent involved. In the call centre, adherence to processes and procedures is typically measured for
individuals through simple observation and the quality monitoring process. Adherence to processes
and procedures such as written scripts and preapproved responses is also important for e-mail and
other channels of contact.
EFFICIENCY MEASURES
Executives in every type of organization are concerned with how well its resources are being put to
use. That is especially true in the contact centre, where more than two-thirds of operating expenses
are related to personnel costs.
11) AGENT OCCUPANCY
Agent occupancy is the measure of actual time an agent is busy on customer contacts compared
with available or idle time, calculated by dividing workload hours by staff hours. Occupancy is an
important measure of how well the call centre has scheduled its staff and how efficiently it is using
its resources.

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If occupancy is too low, agents are sitting around idle with not enough to do. If occupancy is too
high, agents may be overworked.
Agent occupancy rates often reflect the randomness and unpredictability of incoming calls. In those
instances, the desired level of occupancy may lead managers to pull agents away from processing
emails to answering phones, or vice versa. Because Web chat interactions are essentially random
events like incoming calls, the same measures of occupancy apply here as in an incoming call
scenario.
12) STAFF SHRINKAGE
Staff shrinkage is the percentage of time that employees are not available to handle calls. It consists
of meeting and training time, breaks, paid time off, off-phone work, and general unexplained time
where agents are away from their stations. Staff shrinkage is an important number to track, since it
plays an important role in how many people will need to be scheduled each half-hour. The same
measures of shrinkage that are used for call centre calculations also apply to the multichannel
contact centre.
13) SCHEDULE EFFICIENCY
Workforce management is all about getting the “just right” number of people in place each period of
the day to handle customer contacts. Schedule efficiency measures the degree of overstaffing and
understaffing that result from the scheduling design.
Measure schedule efficiency for responding to the randomly arriving Web chats just as you measure
it for responding to incoming calls. Since e-mails typically represent sequential rather than random
workload, the work fits the schedule, and therefore overstaffing and understaffing measures are less
relevant.
14) SCHEDULE ADHERENCE
Schedule adherence measures the degree to which the specific hours scheduled are actually worked
by the agents. It is an overall call centre measure and is also one of the most important team and
individual measures of performance, since it has such great impact on productivity and service.
Schedule adherence is a critical measure in the multichannel contact centre as well. Specific hours
worked is less of an issue in a group responding to e-mails rather than real-time demand of calls and
Web chats, but it is still relevant in processing the work in a timely manner, especially if response-
time guarantees exist.
15) AND 16) AVERAGE HANDLE TIME AND AFTER-CALL WORK
A common measure of contact handling is the average handle time (AHT), made up of talk time plus
after-call work (ACW). To accommodate differences in calling patterns, you should measure and
identify it by time of day as well as by day of week. AHT is also important regarding the other types

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of multichannel contact workload. It's harder to calculate, however, given the difficulties of
measuring how long it takes to handle an e-mail or a Web chat transaction. An e-mail may be
opened and put aside for varying amounts of time before it is completed. Likewise, a Web chat
session may appear to take longer than a phone call, since a Web agent typically has several sessions
open at once.
17) SYSTEM AVAILABILITY
Slow response time from the computer system can add seconds or minutes to the handle time of a
transaction. In the call centre, system speed, uptime, and overall availability should be measured on
an ongoing basis to ensure maximum response time and efficiency as well as service to callers. For
example, if the interactive voice response (IVR) typically handles 50% of calls to completion but is
out of service, more calls will require agent assistance than normal, causing overtime costs, long
delays, and generally poor service. Often this will be a measure of performance that resides in the IT
department, but it is also a crucial measure of contact centre performance.
18) CONVERSION RATE
The conversion rate refers to the percentage of transactions in which a sales opportunity is
translated into an actual sale. It can be measured as an absolute number of sales or as a percentage
of calls that result in a sale. You should track and measure conversion rates for incoming calls as well
as outgoing calls, e-mail transactions, and other Web interactions.
19) UPSELL/CROSS-SELL RATE
Many companies measure the up-sell or cross-sell rate as a success rate at generating revenue over
and above the original order or intention of the call. It is becoming a more common practice, not just
for pure revenue-generating contact centres but for customer service centres as well. Although
more prevalent regarding telephone calls, it is also an appropriate measure of performance for other
communications channels.
20) COST PER CALL
A common measure of operational efficiency is cost per call or cost per minute to handle the call
workload, both in a simple call centre and in a multichannel contact environment. This cost per call
can simply be a labour cost per call, or it can be a fully loaded rate that includes wage rates in
addition to telecommunications, facilities, and other costs. In setting cost per call, it is critical to
define the components being used and to use them consistently in evaluating how well the centre is
using financial resources over time. This metric is commonly used to compare one company or site
to another in benchmarking, but that's not a good practice, as the components included and the
types of contacts will often vary.

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Alternative Monitoring Strategy
We all measure the number of calls answered in 15 seconds, and the amount of wrap-up time. Why?
Because they are easy to measure.
Richard Snow’s research indicates that they may have gone past their sell-by date.
Last year, I carried out a benchmark study into agent performance management. One of the key
questions was about what metrics companies currently use to measure how well they are
performing at handling customer interactions.
I deliberately included options that might be seen as traditional service-level measures and others
that are much more business and outcome related.

As the chart shows, the results were quite interesting and not really that unexpected, given my
overall experience talking to contact centre managers.
The biggest surprise was that the two metrics about pure volumes of calls and other types of
interactions handled only made it as far as 9th and 10th in the list. This suggests companies are more
interested in timing statistics, with average length of a call not surprisingly being the number one
metric and the time taken to complete after-call work making number 4.
First-call resolution
In terms of business and outcome measures, first-call resolution rates have climbed up the list and
made it to number 2, and, given all the hype around it, not surprisingly customer satisfaction scores
make it into the top five.
But what of real business measures?

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You have to look quite a long way down the list to number 6 before you see anything business
related (number of customer saves) and value of sales only makes it in at number 12, and number of
new accounts generated comes bottom of the list.
This all rather suggests that traditional service-level metrics have far from reached their sell-by date
and companies are more interested in how efficient their centres are rather than how effectively
they are performing at delivering against key business objectives.
The average company uses six measurements
What these top-line results don’t show is that on average companies use six metrics to judge the
performance of their centres, and indeed the six includes a mixture of service-level metrics, outcome
measures and business-related measures.
It is this that really points us to the answer as to whether service stats have outlived their sell-by
date, which is of course “yes” and “no”. Yes because by themselves they don’t paint the complete
picture and used incorrectly they could actually do more harm than good, and no because they will
always be part of any set of metrics used to judge the performance of contact centres (or more
broadly, the handling of customer interactions).
What I think we will see is that the mix of metrics will change, so while traditional service metrics will
remain, the balance will swing more to business- and outcome-related metrics.
In fact, I have already seen more importance being placed on a crucial metric – first-call (or
interaction) resolution rates (FCR).
FCR in truth is a hybrid metric in that it includes an element of efficiency (more interactions were
closed at the first attempt so more efficient and fewer follow-ups, also saving money) and an
element of outcome (more closed at the first attempt, so happy customers).
The challenge for companies is to measure true FCR rates, for example, closing a call by saying
“someone will get back to you” should not be included as closed at the first attempt.
These days’ companies have to look across multiple channels to track interactions and define, then
monitor, which are truly closed to the customer’s satisfaction.
However, what is interesting is that centre managers I have spoken with say changing to focus on
FCR brings about a change of behaviour in people handling interactions, in that they try harder to
solve the customer’s issue, which can only be good for the customer, the company and the agent.
And this is why companies need to move on from just relying on traditional service-level metrics and
begin to include business- and outcome-related measures in a composite set of metrics that drive
better behaviours, that deliver better business results, and as a consequence indeed drive some of
the efficiencies they are so eager to see.
7. Group Activity: Alternative Monitoring Methods

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In your groups - read the article provided above, and then discuss the following questions:
• Do you agree that with the Author that the use of traditional statistics may have reached their “sell
by” date? Motivate your answer.
• What does the Author suggest as alternative monitoring parameters – do you agree with him?
Motivate your answer.

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 US: 118028, NQF Level 4 Worth 4 Credits
Learning Unit 3
Supervise customer service standards

This unit standard is intended for people who supervise service standards in
wholesale and retail stores. Persons credited with this standard can select
from a wide choice of procedures ranging from standard to non-standard.
Unit Standard They are responsible for the achievement of group output.

Purpose Persons credited with this unit standard will be able to identify areas of
service impact, analyse existing service standards and compare them to
organisational service requirements. They will also be able to draw up and
implement action plans to improve service standards.

Learning
It is assumed that the learners has completed Grade 12 or equivalent before
Assumed to be
attempting this unit standard.
in Place

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Session 1 Implement customer service standards in accordance with the prescribed

SO 1 organisational requirements.

 "Moments of truth" are explained based on their impact on customer

Learning impressions.

Outcomes  Service standards are identified as required by the organisation.

(Assessment  Service standards are evaluated in terms of existing service delivery.

Criteria)  A comparison between existing and required service standards is

conducted, and gaps are identified according to organisation's procedures.

Every business knows that in order to thrive it needs to differentiate itself in the mind of the
consumer. Price has proved inadequate since there is a limit to how much a firm can cut back on its
margins. Product differentiation is also no longer enough to attract or retain customers since
technological advances have resulted in products becoming almost identical with very few tangible
differences from others in the same category. Consequently, marketers have realized the
importance of service differentiation as a sustainable strategy for competing for a portion of the
customer’s wallet.
Service Encounter / Moment of Truth
A moment of truth is usually defined as an instance wherein the customer and the organization
come into contact with one another in a manner that gives the customer an opportunity to either
form or change an impression about the firm. Such an interaction could occur through the product
of the firm, its service offering or both. Various instances could constitute a moment of truth – such
as greeting the customer, handling customer queries or complaints, promoting special offers or
giving discounts and the closing of the interaction.

Importance
In today’s increasingly service driven markets and with the proliferation of multiple providers for
every type of product or service, moments of truth have become an important fact of customer
interaction that marketers need to keep in mind. They are critical as they determine a customer’s
perception of, and reaction to, a brand. Moments of truth can make or break an organization’s
relationship with its customers. This is more so in the case of service providers since they are selling
intangibles by creating customer expectations. Services are often differentiated in the minds of the
customer by promises of what is to come. Managing these expectations constitutes a critical
component of creating favorable moments of truth which in turn are critical for business success.

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Moments of Magic and Moments of Misery
Moments of Magic: Favorable moments of truth have been termed as ’moments of magic’. These
are instances where the customer has been served in a manner that exceeds his expectations. Eg: An
airline passenger being upgraded to from an economy to a business class ticket or the 100th (or
1000th) customer of a new department store being given a special discount on his purchase. Such
gestures can go a long way in creating a regular and loyal customer base. However, a moment of
magic need not necessarily involve such grand gestures. Even the efficient and timely service
consistently provided by the coffee shop assistant can create a moment of magic for the customers.
Moment of Misery: These are instances where the customer interaction has a negative outcome. A
delayed flight, rude and inattentive shop assistants or poor quality of food served at a restaurant all
qualify as moments of misery for the customers. Though lapses in service cannot be totally avoided,
how such a lapse is handled can go a long way in converting a moment of misery in to a moment of
magic and creating a lasting impact on the customer.

Why Is Quality in Customer Service Important?

Quality customer service is a vital ingredient in a company's ability to maintain profitability and
continued success in business.
Customer Service
Nothing is as welcoming as being treated with dignity and the utmost respect by a friendly and
attentive customer service representative. An employee who exemplifies good customer service
skills will prove beneficial to a company through interaction with clientele. Customer service serves
the purpose of enhancing customer satisfaction by providing the consumer with a feeling that the
product or service rendered has met or exceeded the customer expectations. Customer service can
be provided by a person or automated by means of self-service, such as on Internet sites. A
challenge to this is ensuring that customer service representatives have focused attention on the
right areas.
 Remember there is no way that the quality of customer service can exceed the quality of the
people who provide it.
Think you can get by paying the lowest wage, giving the fewest of benefits, doing the least training
for your employees? It will show. Companies don't help customers... people do.
 Realize that your people will treat your customer the way they are treated.
Employees take their cue from management. Do you greet your employees enthusiastically each
day; are you polite in your dealings with them; do you try to accommodate their requests; do you

46
listen to them when they speak? Consistent rude customer service is a reflection not as much on the
employee as on management.
 Do you know who your customers are?
If a regular customer came in to your facility, would you recognize them? Could you call them by
name? All of us like to feel important; calling someone by name is a simple way to do it and lets
them know you value them as customers.
 For good customer service, go the extra mile.
Include a thank-you note in a customer's package; send a birthday card; clip the article when you
see their name or photo in print; write a congratulatory note when they get a promotion. There are
all sorts of ways for you to keep in touch with your customers and bring them closer to you.
 Are your customer service associates properly trained in how to handle a customer complaint
or an irate person?
Give them guidelines for what to say and do in every conceivable case. People on the frontline of a
situation play the most critical role in your customer’s experience. Make sure they know what to do
and say to make that customer’s experience a positive, pleasant one.
Customer service standards
Customer service standard: is the interaction between a business and its customers. Customer
service standards are excellence, response time, accessibility, delivery time and commitment. All
business leads back to the customer in one form or another, so it is imperative that companies
continuously strive to improve the level of service they deliver. Customer service standards must be
constantly monitored and incorporated into the strategic planning of the company
Excellence in Customer Service
Customer Service Excellence: aims to bring professional, high-level customer service concepts into
common currency with every customer service by offering a unique improvement tool to help those
delivering services put their customers at the core of what they do.

You must meet and exceed expectations and guarantee a quality product.
Timely

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Deliver your product or service efficiently. Categorize response time. For instance, if the request is
for general information, respond to the customer no later than 24 hours after receipt of his request.
Accessible

Periodically contact the customer to assess any need or special request. Provide feedback and ideas
and hear what the customer wants. Use this a tool for improving customer service.
Committed

Be professional, courteous and responsible to the customer even when the interaction is strained.
Example of service standards
Service standards need to be:
1. Specific - what exactly will the customer experience be?
2. Measurable - how can this be quantified?
3. Achievable - can all service providers achieve this?
4. Realistic - does the standard meet the needs of the customer Is it what the customer wants?
5. Time-bound - when will the standard be delivered and how often?
Customer Service Standards & Procedures
Respect
 The most important aspect of customer service is to treat customers with respect. When
people spend their time and money in an establishment, they expect that they will be
treated fairly and respectfully. Most businesses have competitors who can provide similar
services, so often times, the quality of customer service will be a major deciding factor in
securing a customer’s patronage. The majority of customers do not have unrealistic
expectations, but simply desire honesty and integrity. Showing empathy, or putting yourself
in the customer’s shoes, displays to the customer that you understand his frustrations or
needs and are willing to help him resolve the problem.
Timeliness
 As the old adage goes, time is money and providing prompt resolutions to customer needs is
vital to a company's success. Nobody likes to be endlessly placed on hold or told they will
have to wait to be taken care of. Good customer service is accomplished by quickly

48
 responding to a problem knowledgeably and accurately. Accessibility is crucial to achieving a
high level of service, and many companies have customer service departments or entire call
centers with employees trained in resolving issues in a timely manner. If a customer's needs
are met swiftly, she will normally forgive a company and appreciate that the company cared
enough to acknowledge and resolve the issue.
Set Realistic Expectations
 A major problem that occurs in customer service situations is when a customer is promised
something that cannot be fulfilled. Anyone can attest to the fact that it is far more
frustrating to be misled regarding a solution rather than to be told from the beginning what
can really be achieved. Giving a customer unpleasant news can be intimidating, especially if
he is already upset, however, it is better to be truthful and begin working toward a realistic
resolution. In the end, as disappointed as a customer may be to not hear exactly what he
wants to hear, he will appreciate honesty. A customer is more likely to be much more upset
if he is promised something a company is not able to deliver.
The needs of customers are anticipated where reasonable.

When you anticipate your customers’ needs, you:

 prevent problems before they start
 reduce customer service demand later
 show customers that you are actually thinking about them
How do you anticipate customer needs?
Observe
The first step of anticipating customer needs is to watch what is happening. What are your
customers doing? What are they saying? What is happening around them? If you keep your eyes and
ears open, you will be ready to see what a customer needs.
Look for Patterns
The more you observe customers, the more patterns you will see emerge. Take note of what
happens when customers are in a particular situation. You’ll see similar results. Identify the patterns.
Look for the cause and effect of results.
Action
As you observe and identify that this particular situation matches a pattern you’ve seen before, take
action. Help the customer leap frog ahead to the desired result. Help them avoid potential pitfalls.
Inject yourself between the customer and the problem before it happens.
Prevent

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Over time, you’ll see common patterns. It then becomes essential to correct the root cause of these
issues. When you fix the root problem, the customer won’t have the need to begin with. Problem
solved.
Other times problems and needs will always arise because they are out of your control. In these
cases, make sure you have a process or system in place to identify and address customer needs
before they arise.
Your experience will allow you to see a few steps ahead of a customer. Pave the way for a smooth
experience and the customers will be happy to walk with you (and do business with you) again.
Identify and anticipate needs.
Customers don't buy products or services. They buy good feelings and solutions to problems. Most
customer needs are emotional rather than logical. The more you know your customers, the better
you become at anticipating their needs. Communicate regularly so that you are aware of problems
or upcoming needs.

50
Session 2
Improve customer service standards.
SO 2

 An action plan to improve service standards is developed within the

Learning constraints and priorities of the organisation.

Outcomes  The action plan is communicated to all role-players within agreed

(Assessment timeframes and meets organisational specifications.

Criteria)  The success of the action plan is evaluated and adapted according to
identified requirements.

Main human needs including those that are mainly physical, social, emotional, esteem and
intellectual.
 Physiological needs are based on the satisfaction of biological needs and desires. Food, drink,
clothing, sex, heating and health in required amounts form the basis of physical comfort as do
machines and services that reduce unpleasant levels of physical effort.
 Social needs are based partly on our sense of belonging to groups that we wish to belong to, and
partly to our self-esteem based on our ranking in the hierarchy of those groups. These needs
may be satisfied by memberships, titles, status symbols and conspicuous consumption.
 Intellectual needs are based on all sources of interest, entertainment and excitement. Danger
and novelty of an appropriate degree (i.e. not too much) can be essential ingredients in
entertainment and excitement. Enjoyable work, music, literature, watching sports, gambling,
arts, etc. may satisfy intellectual needs.

Identify customer needs and expectations.

What is the difference between customer needs and customer expectations?
The difference is that customer needs mean when they need stuff or help with doing something, but
a customer expectation is when the customer has everything and don’t need help with anything like
a customer need.

How would you identify customer needs and expectation?

Customers’ needs are products and services that are necessary to buy, i.e. FOOD - Customers
expectation are the customers want and needs usually expressed in terms of VALUE, PRODUCT,
FEATURES, CUSTOMER SERVICE AND AFTER SALES SERVICE.
Customers have six basic buying needs pertaining to the product:

51
1. Safety.
2. Performance.
3. Appearance.
4. Comfort.
5. Economy.
6. Durability
Finding out which buying needs are most important to your customers will allow you to match these
needs to the benefits of your products. For example, a customer’s buying need might be for comfort
and economy - “These slippers are made from wool and are padded with foam, so therefore will be
extremely comfortable. They are also on ‘special’ this week so represent a great buy!”

Identifying customer needs

Gain a competitive edge
You will only gain a competitive edge if you have correctly identified your customer needs. In order
to identify customer needs and make use of this information you will need to do three things:
 Communicate with your customers and find out how you can satisfy their needs better.
 Establish ways to record and interpret customer feedback.
 Use this information when making important decisions about marketing, buying, merchandising
and selling.
The resultant competitive edge should:
• Attract more customers than your competitors.
• Increase the amount that your customers spend.
• Persuade your customers to shop with you more regularly.
Increase profit
You will make more profit if you know your customers’ needs by considering:
Marketing
• What are your customers’ expectations?
• Do you have the right product mix and services to best meet customer needs?
• Will your pricing structure maximise your profits (how much are customers willing to pay)?
• What are the best ways to get your message across?
• Have you determined a reasonable budget for your marketing requirements?
Buying
• What is most likely to sell?
• Plan your range.

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• Know the amount of stock that will sell, as well as the type, size, quality, colour and other relevant
factors.
• Be objective!
Merchandising
• How do you best display stock to maximise sales?
Selling
• How do you most effectively match customer needs with the benefits of your products or services?
Customer expectations
Your customers will have differing needs and wants, however customers have common
expectations. The importance of these expectations may vary, depending on the type of product or
service they require.
Common expectations are:
Service
Customers expect a level of service that they think is appropriate for their type of purchase.
Someone who makes a small, spontaneous purchase may have a lesser service need that a customer
who makes a large purchase.
Price
The cost of everything we purchase is becoming increasingly important; therefore the price
component becomes a vital issue. The temptation for a business to compete on price is financially
dangerous. It is a practice that should be avoided unless you have set out to be a ‘discounter’.
Alternatives to price cutting can include ‘value adding’ (can you add value to your products or
services to make your business more competitive?).
Quality
Customers have expectations of quality and durability. They are less likely to question price if they
are doing business with a company that has a reputation for quality.
Action
Customers need action when a problem or question arises. Everyone has a need for recognition and
likes to be treated as a ‘priority’.
Appreciation
Customers need to know that we appreciate their business. Saying ‘thank-you’ through words and
actions are a good starting point. Let customers know that you are glad they have chosen to do
business with you - this conveys a positive message and encourages them to come back. Your
customers will have expectations of how their needs should be met. Find out what their

53
expectations are and exceed them with exceptional customer service - this is a sure way of winning
‘life-long’ advocates for your business!
Remember that in order to improve your business profitability you will need to:
• Become familiar with your customers and establish trusting relationships with them.
• Ask your customers what their expectations are.
• Live up to their expectations and plan to exceed them whenever possible.
• Be consistent and courteous when serving your customers.
Keys to successful selling:
• Know your customers: Gather information about as many of your customers as possible.
• Develop a personal relationship with customers: When trying to understand their needs it may
be useful to know personal details such as their lifestyle, occupation and interests. This
information is easy to gather once rapport has been established.
• Introduce new initiatives such as Customer Focus Groups, Customer Surveys, or even a
Suggestion Box: These initiatives send a clear message to customers that you are interested in
their input. In a focus group you can also find out valuable information such as what people like
and dislike about the offerings of your competitors.
• Listen to customer complaints: Be grateful when a customer complains. Let them know that you
appreciate feedback – and don’t ignore it! Handled sensitivity, a dissatisfied customer often
becomes your most loyal customer. The alternative is to let the customer relate their experience
to others, resulting in negative, rather than positive, word-of-mouth advertising.
• Know the characteristics of your target market (your ‘customer profile’): This knowledge will
assist you with overall business and marketing decisions.

WHAT ARE YOUR CUSTOMERS EXPECTATIONS?

1. Customers Expect Solid Information.
Providing your customers with tangible information lets them know that you value them and respect
their ability to make sound decisions. When they feel that they're respected, they're more open and
willing to do more business with your company. One way to ensure they receive beneficial
information is to ask probing
questions during your conversations to uncover needs they may not have voiced. For instance, ask
about the objectives they've set for their company, and the problems associated with attaining
them.
2. Customers Expect Options.

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Customers don't want to be told that there's only one way or one solution. They'll respond positively
when they're given options. Options are essential because they create dialogue and discussion.
Open dialogue can lead to more sales.

3. Customers Expect Single Source Service.

Customers don't want to be transferred to every unit of your business to have their problems solved.
They want to be able to do business with you with the slightest amount of discomfort. You must be
easy to do business with. This means taking ownership of your customers’ requests, problem, etc.,
and ensuring that their needs are met to their satisfaction.
4. Customers Expect Superior Communication.
They may not be the best communicators, but they expect communication excellence from you. So,
if you tell them that you will call them back at a certain time, make sure that you do. Your
responsiveness will create a bond of trust, and a communication comfort level.
5. Customers Expect Consulting.
As the expert on your business' products and services, you are your customer only contact to
determining how to use your product and/or service to get the best RETURN ON INVESTMENT (ROI).
You must take the time to ask pertinent questions aimed at finding how your customer is using your
product and/or service. This will demonstrate your ability and knowledge as well as your intent to
spend the necessary time with them to meet their specific needs.
6. Customers Expect A Seamless Relationship.
The best businesses are those that believe in going the extra mile for their customers. They know
that they have to reinforce why it's in the customers best interest to continue doing business with
them. Building a relationship with your customers built on mutual trust and respect takes time and
effort, but remembers retention is the best method of building profit. Stay in touch with your
customers by keeping them informed of new events, product updates, passing on information that
may be of interest, calling to say hello, etc.
Meeting these six customer expectations will help you gain customer loyalty, and customer loyalty
will keep you in business.

Improve customer service standards

1. Check Your Customer's Pulse - No, not to see if they are still breathing, but to check their
happiness level. Every time you interact with a customer, in person or over the phone, initiate a
quick discussion to gauge how they are feeling. And as you begin to build a relationship with a
customer, (and get a feel for their perception of your business), consider doing a quick survey or

55
comment card. This will easily demonstrate to customers, employees and competitors alike, that you
intend to continually improve on your service.

2. Check Your Employee's Pulse - Your employees are an untapped source of customer information.
They know how your customers really feel. And, given the chance, they'd love to share it with you.
Take the time to listen and understand. It can be a real eye-opener. They see the obstacles your
customers have to overcome in order to use your products and services. They might even see
business opportunities. Years ago, when working for a large telecommunications company, I
discovered customers using our products and services in ways the product development people and
marketing folks had never dreamed of. Your staff are the ones closest to your customers. Use their
wisdom.

3. Define Your Customer Service Belief System - Ask any number of your staff for the definition of
customer service and see what you get. You might be surprised. Most organizations assume that
everyone is on the same page, that somehow everyone knows the significance of customer service
and what it means to customers and the organization. It is rarely the case. Everybody has their own
"take" on standards of service. You need to agree to a definitive version right away.

4. Understand Your Customer's Obstacles - Many managers forget (or don't know) what it is like to
be a customer of their own business. Observation is the keyword here. Watch your customers'
movements and behavior when they are in your organization. Are they visibly annoyed? Do they
stand in line, looking at their watch? Can you tell by their body language that they would rather be
somewhere else? Do your frontline staff seem attentive to their needs? Gather this information as
you go about your daily tasks.

5. Data Drive Your Business - If you don't currently collect valuable customer data, then now is the
time to begin. It doesn't have to be in any great detail. Just the basics - name, address, phone
number, e-mail address - if your customer doesn't mind. Utilizing this information is paramount to
keeping customers connected to your organization. The idea here is not to inundate the customer
with promotional material - there is a time for marketing. It is more to do with adding value to their
relationship with you. After all, this is a relationship based on trust. They have already shared their
"private" information with you; now you have the opportunity to give something back. How? Send
them a periodic e-mail that gives tips and hints on how to change their lives for the better.
Sometimes your product or service will have a place in this information, sometimes it won't.

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6. Change Your Employment Policy - I often see ads for frontline customer service staff saying: "5
years' experience required." It is understandable that businesses would want new people to hit the
ground running. But this may not be the best approach when it comes to customer service. We have
all heard the saying, familiarity breeds contempt. This is often the case with veteran customer-facing
staff. They can be battle-worn, preferring to concentrate on acquired technical skills instead of
focusing on the customer. Unless high levels of technical skill are required for the post, it might be
better to hire largely for a positive, upbeat and enthusiastic outlook and train for the rest. It won't
suit every situation of course, but hiring cheerful, and training for skill, has its strengths.

7. Lay Down The Law Of Customer Service - Unless you are blessed with the gift of telepathy, sooner
or later you are going to have to create a customer service "law" for your business. It simply needs
to assign the customer as THE number one priority, in a clear and understandable way, and it needs
to be obeyed. Make sure that everyone who interacts with a customer, lives and breathes the "law"
of your customer service on every occasion.

8. Turn Customer Service Into A Sales Driver - What better time to introduce a customer to the
greater benefits of your product or service than at the point of sale. Educate your customer service
people to fully understand the many benefits you are offering, and train them to explain these
benefits to the customer in a comfortable, conversational way. Many employees freeze at the
mention of "sales". But a helpful conversation with a customer is not the same as a sales discussion.
Encourage your customer service folks to talk to customers like an adviser, not a salesperson.

9. Establish Visible Measures Of Success - Every business is different. But the one thing they all have
in common is the need to keep customers happy and to keep them coming back. Determine core
customer service measures of success. For instance, if you want your regular customers to return or
increase the amount they buy, then measure that as a goal of your customer service team. If you
have an established survey method, use the results to drive understanding of where you can and
must improve. A note of caution - avoid measuring something just because you have the tools. Your
measurements must be meaningful. They must improve your customer service.

10. Communicate - Even if managers do find the time to launch a customer service improvement
campaign, many struggle to maintain the effort and therefore never see lasting results. Often the
problem is rooted in the management desire to do it once and done. Unfortunately, customer

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service isn't like that. It has to be reinforced, learned and practiced continually, with regular
management input. Try a simple management communication technique that you can start today.
Hold daily 1-minute "huddles"! Gather frontline or backroom employees in a hallway or lobby, once
a day, just for a minute, to confirm their customer service understanding. Many retail organizations
do this. It allows you to chart the day's goals and it reminds employees of the most important person
in the organization. The customer.

Methods to Improve Customer Service

Customer service departments are responsible for collecting data and reporting it accurately. The
data collected by customer service can alert the company on product safety issues, product quality
issues and overall market trends. Improving customer service begins with analyzing your current
needs and areas that need improvement.

Analysis
Take a good look at your customer service guidelines. Are they in line with where you want to be?
Analyze these policies and decide which ones are effective and which ones need to be addressed.
Examine your reporting trends; effective policies produce usable information. Frequency of returns
and damage are two examples of the kind of information that can be helpful for the company. Set
goals in all areas of weakness. Areas to investigate are call-per-hour averages, average customer
wait time and trending complaints concerning service standards.

Take stock of all employees. Identify those who are competent and those who aren't. To determine
this, use statistics available from your software, such as calls per hour and average call lengths. You
can also monitor phone calls for quality. Find the average for all employees and make this your
target for the department. Statistics and call evaluations should point out those who aren't meeting
standards. Meet with each employee to address their strengths and weaknesses. Survey all
employees and continually ask for feedback on what they need help on or policies and procedures
that may be confusing. This should make the information collected accurate for departments such as
quality assurance, marketing and packaging.

Strategy
Once you have taken stock of your customer service department, develop an improvement plan.
Update policies that may be outdated and eliminate unnecessary or redundant ones. Your policies
should provide valuable feedback. For instance, your policy on how to report damages should be

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concise and simple. Once you have streamlined company policy, you can set a standard of
adherence to those policies to ensure the customer service department is working to help the
company meet overall objectives.

Set standards for all categories you monitor in your customer service department. You should be
able to track calls answered per hour, any idle or break time taken by each employee and average
call length. Use these statistics to quickly identify problems. If the average call time is suddenly
increasing, you need to determine why. It may be that you know the reason from the feedback
provided from customers, or it may be something you need to research more. The frontline call
center representatives should be able to provide immediate feedback to supervisors or managers of
any call trends they are noticing. If you're finding that your average call times are going up or the
number of calls you are getting each day is increasing, this is your signal to hire extra help. You need
to be properly staffed, and the statistics you collect can help you decide on staffing levels.

Continual Improvement
Constantly monitor weak areas of your customer service department and take steps to address them
early on. Do regular policy and procedure reviews as well as employee reviews. Make sure all
employees are maintaining expected standards. Take action immediately if you notice an employee
who isn't able to maintain standards. If an employee is falling behind in the calls-per-hour category,
talk to that employee and figure out how best to help him. If his call time is high because he gets
involved in conversation with the customers, coach him to effectively wrap up and end calls.

Offer additional training and ongoing support to each employee who needs it. Additional training,
such as having less experienced representatives sit with more experienced representatives for the
day, can be beneficial. Fun training exercises such as a quiz show to review new policies can be
interactive and educational. This can also serve to make sure your policies are understood
completely.

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Session 3
Oversee the handling of customer queries and complaints.
SO 3

 The procedures for handling queries and complaints are explained

Learning according to organisation's policy and procedures.

Outcomes  The handling of queries and complaints is monitored and evaluated against

(Assessment the organisation's requirements.

Criteria)  Non-compliance with standards is identified and corrective actions are

taken/suggested in accordance with organisation's policy.

1. Recognise customer dissatisfaction and take action to resolve the situation.

Responding to customer dissatisfaction
 In all situations, remaining calm, sensitive to the other person’s concerns, polite, cooperative
and positive is likely to result in a satisfactory outcome.
 Customers will complain in a number of ways:
 As soon as the problem arises
 After they have left
 To another part of the organization
 Aggressively or presently
Complaints are handled promptly, positively, sensitively and politely.
What is a Complaint?
A complaint is defined as:
“Any expression of dissatisfaction by a customer or potential customer about service delivery by the
company or its agents, and/or about company or industry policy.”
Procedures for handling customer complaints:
 listen
 acknowledge
 identify nature of problem
 identify and agree on an acceptable solution
 take action
 record
 Follow up to ensure customer satisfaction.
Resolving complaints

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When a customer has a genuine complaint, thank them for raising the matter with you. Treat them
with genuine empathy, courtesy, patience, honesty and fairness.
Try to respond to the complaint quickly. Tell the customer how you will handle it and when to expect
a response.
Speak to the customer in person. Do not rely on written complaints or records of conversations.
To show that you clearly understand their complaint:
 familiarise yourself with any background information before you speak to them, check internal
records, speak to staff and check how their version of events compares with the customer's
 listen carefully and do not jump to conclusions, lay blame or become defensive
 ask questions to clarify the situation
 Summarise back to the customer your understanding of the problem.
Once you take the complaint details, tell the customer what will happen next.
If possible, nominate one staff member to manage the complaint until it is resolved. Ensure that this
staff member has the authority to organise solutions that the customer will accept.
Adopt a solution-focused approach by actively involving the customer in this process. Ensure you
take all promised action as promptly as possible.
When you find a solution, tell the customer and check they are happy with the resolution. Tell them
how you will prevent the problem arising again.
The Customer Complaints Handling Procedure is designed to make sure your complaint is dealt
with efficiently, fairly and effectively. We will ensure our
Procedure is:
Once you have decided on your complaint policy, you will be able to resolve most complaints
quickly and efficiently.
 Tell customers what solution you can offer and make sure they understand.
 If customers accept your proposed solution, act straight away if possible; for example, do the
repair or replace the goods.
 Make sure there is always someone available to speak to customers about their complaints. If a
customer is promised a return phone call, make sure it happens.
 If it is not possible to do anything immediately, tell the customer when it will happen and keep a
record of your commitment.
 If customers want more than that to which they're legally entitled, or if their solutions are
outside your company policy and you feel they are making an unrealistic demand try to explain
their legal rights or refer them to us.
 You can check your rights and obligations with us and ask for an independent third option.

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 Do what was agreed and finalise the matter with the customer.
 Never make promises you won't be able to keep.
Tips for dealing with customer complaints:
Thank them for the feedback
Customer feedback adds value to the business.
For example, say: “Thank you for taking the time to tell us about this. We appreciate customers who
let us know when things aren’t right.”
Show empathy
Empathy is the identification and understanding of the customer’s situation and feelings.
Say something similar to: “It must have been very frustrating for you to wait four days for your
order, and for that I am sorry.”
Apologise
Apologies can come in different forms and an effective apology is a valuable way to reduce anger.
An apology does not mean you are admitting fault. It can be offered to express regret.
For example: “I am sorry for any inconvenience this problem has caused you.”
Have a sense of urgency
Let the customer know that resolving the problem is as important to you as it is to them. Focus on
the problem and let the customer know or see that it is a priority for you.
Watch your tone
Your words might say “I want to help” but your tone of voice might say that you are inconvenienced,
irritated or couldn’t care less. You need to sound helpful and professional.
Customer complaints may relate to:
 Problems with the service, such as delays or wrong orders
 Problems with the product
 Communication barriers or misunderstandings.

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Customer complaints are resolved according to the level of individual need as well as company
procedures.
Here are steps for resolving customer complaints which have according to the level of individual
need as well as company procedures.
1. Listen Intently: Listen to the customer, and do not interrupt them. They need to tell their story
and feel that they have been heard.
2. Thank Them: Thank the customer for bringing the problem to your attention. You can’t resolve
something you aren’t completely aware of, or may be making faulty assumptions about.
3. Apologize: Sincerely convey to the customer your apology for the way the situation has made
them feel. This is not the time for preachy reasons, justifications or excuses; you must apologize.
4. Seek the Best Solution: Determine what the customer is seeking as a solution. Ask them; often
they’ll surprise you for asking for less than you initially thought you’d have to give—especially
when they perceive your apology and intention is genuinely sincere.
5. Reach Agreement: Seek to agree on the solution that will resolve the situation to their
satisfaction. Your best intentions can miss the mark completely if you still fail to deliver what the
customer wants.
6. Take Quick Action: Act on the solution with a sense of urgency. Customers will often respond
more positively to your focus on helping them immediately versus than on the solution itself.
7. Follow-up: Follow-up to ensure the customer is completely satisfied, especially when you have
had to enlist the help of others for the solution delivery. Everything up to this point will be for
naught if the customer feels that “out of sight is out of mind.”
Problems happen. It’s how you honestly acknowledge and handle them which counts with people.
Customers will remember you, and happily give you another chance to delight them when you
choose to correct problems with the very best you can offer, proving you value them and their
business.
The purpose of an effective complaints procedure is to ensure all complaints are resolved quickly
and efficiently.
There are two key factors in establishing a workable grievance procedure. The first is the concept of
a progression of levels at which a given complaint may be handled. Typically this begins with a step
that provides for rapid and informal addressing of a complaint by those immediately involved, with
appeals to successively higher levels of management or other representatives possible in the event
that lower-level resolution doesn't work. The second factor is the availability of an alternative
procedure, to be used if several successive attempts at negotiation have failed. Typically this will be
mediation, arbitration, or both.

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Many grievances can be resolved quickly by correcting a misunderstanding, or with a simple
negotiation. In this case the grievance procedure saves time, money, and the relationship between
the parties. Having the issue handled by those immediately involved is a benefit as well, as they
know more about the problem at hand than do people at higher levels.
Complaints are referred to the appropriate person, according to the individual level of customer
need.

Who Is Responsible for Customer Service Complaints

President/CEO
 The president or chief executive officer of a company is responsible for customer service
complaints because the top employee sets the standard for how employees are to treat
customers. The president is the role model for how the company, as a whole, treats customers,
clients and fellow employees.
Directors
 Directors of departments also are responsible for customer complaints because they make
decisions regarding the allocation of resources such as manpower and funding. These allocations
should benefit the customer as well as the company.
Representatives
 Representatives must provide proper customer service each day with each customer contact.
They are responsible for following up when promised, treating the customer courteously and
leaving the customer with a positive impression of the company.
Managers
 Managers implement employee recognition programs that reward quality front-line customer
service representatives. Managers must also remove representatives who do not adhere to
customer service guidelines.
Analysts

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 Customer service analysts analyze recurring processes that often reveal on-going sources of
customer dissatisfaction. The analysts must provide recommendations and devise projects to
increase customer satisfaction.

Complaints managers are responsible for addressing customer complaints.

 Appeals Procedure
 Formal complaints will be referred to the presidential trio
 when the general secretary decides it is appropriate
 when the complaint is directed at the general secretary or
 when the complainant wants to appeal a decision made by the general secretary. The
presidential trio will respond themselves to the complainant, informing the general secretary of
the action taken.

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