Paper 1 CRM

-Answer 4a Customers are difficult to maintain and it costs a lot to acquire new customers than to retain an old one. Hence it becomes even more imperative to retain customers and try and see that one size fits all strategy does not work here. Every customer is unique and needs to be handled differently. Some of the major reasons why customers defect are:

Pricing: Customers are very sensitive to pricing and any increase in the same can lead to termination of relationship. This is especially true when the economy is on a downturn and customers are trying to cut corners at all possible costs. This defection can happen for any product whether it is banking service, mobile services, rental services etc. The moment price is increased and is offered a better pricing somewhere else, customer defects. Service: Customers have varied options to choose from and a slightest dip in service standards will lead to customers' defection. Service plays a vital part in the relationship and should not vary irrespective of what channel customers uses. Customers tend to be very finicky about how their servicing requirements are handled and tend to defect at a slightest hint of service not meeting their expectation. Product: A bad product can lead to customer dissatisfaction leading to customer defection. A simple example of a new car introduced in the market without much emphasis given to after sales service and bad quality spares can lead to a bad publicity and word of mouth. This is worst publicity for an organization and will spell doom.

The obvious signs like sales going down, market share decreasing and negative word of mouth publicity are some of the pointers which convey that everything is not well. What customers really want is simple and meaningful relationship with organizations and expects a seamless experience to them when they call, contact, communicate, or go to buy something. Organizations need to be extra careful and need to take care of certain things which will go a long way in understanding the customers mind and stop them from leaving.

Attrition is often seen as a health check for any business. If a high number of people are leaving then something is wrong. The question is what, and what can be done to improve it. Contact centres are no different and with the negative images portrayed by the media, it is perhaps more important that any issues around attrition are dealt with. At the Professional Planning Forum, It is believed that a contact centre can be a great place to work and our research into attrition shows some of the key areas for improvement.

Paper 1 CRM Research conducted over a number of years, demonstrates how successful organisations are reducing their attrition. the top reasons for any improvement in attrition? the top five ways to improve attrition are: 1. Skills Development 2. Communication 3. Promotion/Progress 4. Management Style 5. Work-Life Balance But what can you do differently?

Skills Development
When we look at attrition and how to improve it we are asking how can I keep my staff motivated? If you refer to any motivational theory, personal development is always a high motivator. So why would a contact centre be any different? Looking for ways to enhance the skills of your employees is good for the business, the customer and the employee. Many centres use multi-skilling as a way to be more efficient; used correctly, this can also be seen as a development tool. Employees would be trained in new skills after certain periods of time and/or reaching a certain performance level. If communicated correctly, this gives employees a sense of achievement and creates variety in a job. This can be achieved without the need for financial reward, therefore providing motivated staff, who will stay with the business longer as they move along the skill path, whilst meeting the business need for efficiency.

Communication
Communication is key to any successful business! In contact centres there is a need for everyone to understand the goals of the business. It is important that employees feel part of the brand, and understand what the business is striving for and the part that they have to play in making it happen. Attrition rates are high in centres when employees feel disengaged, nobody listens to me. There have been a number of good communication examples where employee focus groups are used to make change happen, employee champions are used to drive change forward and give the employees a voice.

Paper 1 CRM Targets need to be aligned and communicated effectively. Results need to be reported and discussed. Many centres now have web-based technology to display performance stats and working patterns. The use of intranet sites to display information can also be very effective. We must use all the communication media we have available, and remember that what may not seem important to a manager may be crucial to an agent.

Promotion/Progression
Many now view contact centre work as a career, and with the varying roles available, from the traditional path of Agent, Coach, Team Leader or a support role in HR, Resource Planning, or Finance, there are many opportunities. It is important, therefore, that at least some of these vacancies are filled with internal candidates. This gives employees the knowledge that if they work hard and do well they have a chance to progress. It can also be useful to give people opportunities to try out new roles; try before you buy, if you like. This can be done through secondments, day-in-the-life or development programmes. Many centres have development opportunities designed at finding the next team leader from the agent population; these schemes could be extended to include the many other support roles available in todays contact centres.

Management Style
This area is closely linked to communication. Does an employee feel valued? do they want to come to work? There is an old adage: you dont leave the business you leave your manager. How many times have you heard someone say the jobs ok but the people are great? This shows how important management style is to employees. The contact centre should be a great place to work, with an element of fun and hard work. The management approach will go a long way to achieving these goals.

Work-Life Balance
Work-life balance is not easy to achieve. Employees have to understand that the business must meet its customers demands, while the business must understand that employees have external pressures as well and do all it can to help them. The introduction of family-friendly legislation has forced many contact centres to look at how they schedule staff. Contact centres have then taken this more flexible approach and developed it for all employees, creating a number of lifestyle schedule options that give

Paper 1 CRM employees more choice, whilst still meeting the business needs. These schedule choices are often created by the employees through focus groups, always bearing in mind that the business needs must be met. All employees are different and it would be wrong to assume we know what everyone wants or needs, so providing options is a great way of providing a suitable solution for all.

Summary
If you understand what motivates employees and what de-motivates them, you then know which areas to focus on to improve attrition. Many believe that pay and benefits have a significant impact on their attrition rate. However, providing these are at an acceptable level, increasing them will not have the desired effect. There is a disconnect between what we see on the exit questionnaires and the real reasons for employee turnover, so it is important that we dig down and find the real reasons for leaving. Only then can you tackle them.