Service delivery 'more important than discounts'

Cape Town - In an era when companies are fighting over prices and reward mechanisms, many businesses are ignoring what the customer really wants, according to Nico de Nysschen,  Ovations Groups’ practice lead for service delivery.

According to business consulting firm Lee Resources, 91% of unhappy customers will not willingly do business with you again. The number one reason for their unhappiness is service delivery.
 
"Service delivery has become a hotly debated topic in South Africa, and we have seen frequent examples where customers have taken to airing their frustrations on public forums," sayd De Nysschen.

"There are numerous reasons companies fail to meet their service level agreements (SLAs) and it has a lot to do with the principles of the business in question."

Many SMEs are often under pressure and driven to find money to pay the bills – and service usually falls down the priority list in the process.

Even larger corporates sometimes lack effective customer experience management systems to find out where their processes are failing and what the customer’s needs really are.

"Competitiveness isn’t a battle that is fought in the price and product offering realms anymore. Realistically, there’s not much separating most companies from each other in terms of those factors," according to De Nysschen.

"The real differentiator is quickly becoming customer-centricity. The companies that put the customer experience at the top of the priority list are making the mark. Businesses that are wowing with superior service levels are finding their customers are more likely to return over and over again."

Keep the discount, give me the service

There is a common tendency to focus on discounts and rewards as a way to appease customers, when the solution should be to improve the customer service, in his view.
 
"Companies need to begin investing in their service delivery processes, such as service desks and call centres, and being able to address and attend to all customer concerns and questions," said De Nysschen.

"When a well-designed service is being rendered and supported by a well-transitioned process, the marginal propensity levels are raised and the customers are left satisfied, too. It’s a win-win for all parties."