Home > CEM, CRM, customer experience, Customer service, Service Management > To continue be a player in service you must continue to invest

To continue be a player in service you must continue to invest

A blog from an analyst at research group Gartner last week questioned whether the $75billion it reckoned had been invested in customer relationship management (CRM) systems in the last 10 years had been well spent.   The failure of that investment to perform was evidenced by an only small rise in the level of customer service over the same period.

My first thought was: ‘that’s rich coming from Gartner which pretty much makes its business out of hyping up software and suppliers to flog its reports until that opportunity is dead and buried or the next  bandwagon passes by’.    But, putting that prejudice to one side, I think there is a potentially dangerous sub-message in this hypothesis that needs correcting. 

Delivering good service demands that managers constantly push the almost Sisyphean rock up the steepening hill of customer experience and expectation.     A performance that stays, at best, constant will eventually and increasingly underwhelm customers.  Meanwhile, your competitors will be raising the bar of performance and your customer’s expectations with it – beyond the level at which you were performing. 

So what you did to achieve, say, 90% customer satisfaction in 2000 is not going to cut the mustard in 2010.   In fact you could now be performing at what you consider to be, say, 20% better but ‘only’ achieving 93% satisfaction.  But the truth is that is a great result that needs applauding not attacking a) because you are still in the game and b) you have out-performed customer expectations.

That $75bn of investment was made by organisations in order to carry on playing – and then to try and edge their noses in front.  That is not wasted cost, that is an investment required to be a player.  Yes, I am sure a lot of that money could have been spent more efficaciously but let’s kill the notion that investing to improve your service delivery is fruitless and wasted.  On the contrary it is paying dividends and vital.

Article first appeared on Service Management 365.

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