Jan Carlzon is probably not a household name, but articles and case studies about the turn-around he implemented at his organization are referenced widely in management literature and in business school discussions worldwide.
In the early 1980's, when Carlzon assumed the role of chief executive at Scandinavian Airlines (SAS), the company was losing $17 million annually and had a reputation for poor customer service. A survey conducted at the time, showed the airline ranking 14th out of 17 European airlines. The company's reputation for being a very centralized organization, where decisions were slow wrought from the top, left shareholders and employees hoping for change. With an unrelenting focus on customer service quality, Carlzon focused on delegating responsibility away from management and empowering contact center and other customer-facing staff to make decisions on the spot.
Within one year of taking over, SAS had become the most punctual airline in Europe and had started an ongoing training program called Putting People First. These changes soon impacted the bottom-line as well and the company made a profit of $54 million in 1982
Jan Carlzon's story should be a wake-up call for all businesses. It’s increasingly difficult for companies to compete on product and pricing alone, making customer service a key differentiator. Your customer care agents represent your brand. They’re the front line of your company. They either deliver positive customer experiences or they damage your brand’s reputation. Customers today have increased expectations when it comes to service. They want fast, accurate, personalized service—on their terms. With these type of demands, it's no wonder that Defaqto Research reports that 55% of customers would pay extra to guarantee better service. If you're tempted eschew those demands and findings, remember customers today will use social media to share their experiences: good or bad. That’s why the days of the poorly run call center are over.
A study conducted by International Customer Management Institute (ICMI) revealed that over 62% of contact centers are thought to be perceived as a cost center by their organizations. In an age where the customer is empowered and customer service is about relationship building, that type of thinking is outdated. Businesses today can generate revenue while meeting or exceeding customer expectations with cloud contact center options which work on a pay-as-you-go model. Making cloud based contact centers further attractive are lower support costs and the elimination of expenses related to upgrades. Together, these benefits signal that now is the time to reevaluate the gains versus costs related to improving customer support.
The cloud based model not only enables businesses to generate revenue and reduce costs, but when combined with new technologies, makes it possible for them to also significantly improve how they connect with customers through a variety of channels. This omnichannel approach will earn customer loyalty, win new customers and take advantage of opportunities to up-sell and cross-sell to satisfied customers.
Businesses that develop omnichannel customer service strategies and engage customers through a variety of channels can come out ahead in several areas:
Loyalty. Companies that enable people to connect any place, any time, can better convert customers into devoted fans.
Personalization. Location-based mobile technology provides a meaningful opportunity to personalize service and add relevancy.
Consistency. Companies that update information via their smart mobile app, communicate uniform answers to customers and reduce misunderstanding.
Cost. Self-service empowers customers to solve their own problems using troubleshooting tools and diagnostics—before they need to speak with an agent.
If you're still pondering whether or not you're ready to empower your customer contact center with a solution that solves real problems instead of creating new ones, then consider this; according to Market Metrics, the probability of up-selling a satisfied, existing customer is 60% - 70% and the likelihood of selling to a new prospect is just 5% - 20%. Now is the time for your business to take advantage of state-of-the-art contact center technology and applications without making a hefty capital investment and be ready to not only meet, but exceed customer expectations.
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