Page 5: Evaluating the impacts, costs and benefits of customer service
Research shows that it costs about five times more to gain a new customer as it does to keep an existing one. Parcelforce Worldwide places an emphasis on retaining its existing customers. Its key objective is to have satisfied customers, who will use the service again in the future.
Parcelforce Worldwide recognises that its people are a key element in delivering customer satisfaction. All staff must be committed to a customer-orientated culture. This means that employees need appropriate training to ensure they have the skills to meet customer needs. This training also helps to develop a culture of improvement. A training programme costs money. However, the costs of not training staff can be even greater. This can result in loss of business, loss of revenue and, worse, loss of reputation.
Parcelforce Worldwide measures customer service by using key performance indicators (KPIs). These set targets for factors such as response times, numbers of staff trained and levels of after-sales service. Parcelforce Worldwide uses a balanced business scorecard to record progress against these targets. This measures where the business wants to be against actual performance in four key areas:
- financial includes operating margin, average unit cost
- process includes on-time deliveries and collections, attempted deliveries
- customer focus includes customer satisfaction scores, complaints
- employee/teams measured by opinion surveys. By tracking performance on a regular basis, Parcelforce Worldwide can identify areas that are performing well, as well as those that need to be improved
Parcelforce Worldwide aims not just to retain customers. It wants a bigger share of each customer”s “wallet” the amount of money the customer has to spend on delivery services. Corporate customers may use several suppliers to give them choice and the option of a backup service if one cannot provide the right service. Parcelforce Worldwide aims to be the business that customers choose first the “business of choice”.