Customer service. Lead times. Process costs.

Improving customer service: a guide

In many companies, decisions are still made primarily on the basis of key financial figures. However, relying solely on these historical key figures is no longer sufficient to manage a company successfully in the long term. The measurement and analysis of performance must increasingly also take place where the actual (direct and indirect) value creation takes place: in your business processes – referred to here as processes. A key performance indicator and analysis system is therefore required that provides information in real time in order to be able to take corrective and improvement measures in operational processes and thereby increase process efficiency. Comprehensive customer service, which includes various services, is also crucial to ensure customer satisfaction.

Appropriate process monitoring therefore has the task of providing faster insights into complex interrelationships and making these available to the relevant decision-making teams in different departments in order to make the right prioritized decisions in a targeted manner. In contrast to traditional KPIs (Key Performance Indicators), PPIs (Process Performance Indicators) are used here. The quality and performance of the products play a central role here, as they directly influence the customer experience.

PROCESS EFFICIENCY | Efficiency-related indicators show the effort required to produce the service – i.e. the resource consumption resulting from the activities of the process in relation to the process performance. The most important parameters of process efficiency are process or lead time, on-time delivery, process quality and process costs. These performance parameters should be used as the basis for measuring process performance in all business processes and should be regarded as standard performance parameters.

Process Controlling – Costs, quality & time in view

To increase process efficiency, it is necessary to make decisions and implement measures that have a direct impact on costs, quality and throughput times. Close cooperation between departments is essential in order to optimize processes and increase efficiency. The potential for optimization is particularly high in SMEs. One reason for the lack of active process monitoring may be that there is no suitable way of analyzing relevant key figures and therefore no reliable basis for decision-making. Modeling processes and manually recording the current status is not sufficient for this, and is also far too time-consuming and outdated. Fortunately, a technology that has been specially developed to visually display process flows based on the data in your systems and enrich them with key figures can help here: Process Mining. This provides companies with a kind of digital diagnostic professional.

Process Mining has become increasingly widespread in recent years, but has not yet found a permanent place in every company. The use of Process Mining and the opportunity it creates to monitor process KPIs and initiate corrective measures at an early stage is recommended for every company – from SMEs to large corporations – in order to increase the process efficiency of important core processes. Target values can be defined for the process KPIs, actual values can be measured automatically and deviations can be identified. The optimization potential that lies hidden here should not be underestimated.

Intelligent services can help to improve customer service by responding to individual requirements and solving problems more efficiently.

Data literacy – the key to success

The way in which the process KPIs are presented is of great importance so that raw data can be turned into information, insights can ultimately be gained from information and a data-driven culture can be established. This is only possible if the data can be presented and analyzed in analysis interfaces that are easy to interpret and operate – in line with the data competence of the individual employees. In order to drive and support this development, there are approaches to help users interpret key figures using augmented intelligence-based analysis aids. A customer-oriented business strategy, in which the customer experience is considered to be of equal value to the service offered, is of central importance here.

EXAMPLES FOR EFFICIENCY KEY FIGURES - DEPENDING ON THE PERFORMANCE GOAL

TIME | response time, processing time, cycle time, control time, idle time, setup time, transfer time, value added time

COST | error costs, total costs, resource consumption, value added costs

QUALITY | output quality, process variants

CAPACITY | bottlenecks, resource capacity, employee capacity, output, resource capacity

INTEGRATION & COMPLEXITY | Automatization, information flow, timeliness (of information), degree of standardization

The combination of efficiency-related AND effectiveness-related KPIs enables a holistic view of and the economic management of business processes. The relevance of establishing links between different KPI systems and across different data sources has also been recognized by solution providers: there are Process Mining technologies that build on business intelligence platforms to provide complete transparency. Secure customer experiences that focus on the customer are crucial to remaining competitive and retaining customers in the long term.

Definition and history of customer service

Customer service is a central department of a company that is in direct contact with customers. This department goes beyond pure sales and distribution and takes care of all customer concerns and questions. The history of customer service goes back a long way, to the days when companies still communicated with their customers in person or by post. With the invention of the telephone and the development of call centers in the 20th century, customer service underwent a fundamental change. Today, customer service encompasses a variety of channels, including online chat, social media and email, making interaction with customers even more versatile and efficient.

Customer service versus customer experience

Customer service is an essential part of the customer experience (CX). While customer service focuses on direct customer interaction and support, customer experience encompasses the entirety of all touchpoints a customer has with a company. This includes sales, marketing, training and, of course, customer service. Companies often measure their customer experience to assess the emotional, physical and other connections that customers have with a brand. Effective customer service goes a long way to building a positive connection with customers and therefore improving the overall customer experience.

Advantages of good customer service

Good customer service offers numerous benefits for companies. Some of the most important benefits of positive customer service experiences include:

Increased customer satisfaction: satisfied customers are more loyal and tend to make repeat purchases from a company.
Improved customer retention: Good customer service promotes long-term customer loyalty.
Increased customer recovery: Effective customer service can help win back lost customers.
Positive word-of-mouth: Satisfied customers recommend the company to others, which can lead to new customers.
Improved brand loyalty and awareness: Good customer service strengthens the brand and increases brand awareness.

Customer service strategy and processes

An effective customer service strategy and processes are critical to a company's success. A well thought out customer service strategy should include the following aspects:

Clear definition of customer service goals and priorities: Goals and priorities must be clearly defined and communicated.
Analysis of customer service processes and procedures: A thorough analysis helps to identify and eliminate weaknesses.
Implementation of customer service tools and software: Modern tools and software can significantly improve the efficiency and quality of customer service.
Training and development of customer service staff: Well-trained employees are the key to successful customer service.
Regular review and adaptation of the customer service strategy: The strategy should be reviewed regularly and adapted to new challenges.

Customer service tools and software

There are a variety of customer service tools and software that companies can use to improve their customer service processes. The most common tools and software include

CRM (Customer Relationship Management) systems: These systems help to manage and optimize customer relationships.
Helpdesk software: This supports the management and processing of customer inquiries.
Live chat software: Enables fast and direct communication with customers.
Email management software: Helps to manage customer emails efficiently.
Social media management software: Supports interaction with customers via social media.

Customer service employees and teams

Customer service representatives and teams play a critical role in delivering excellent customer service. An effective customer service organization should include the following aspects:

Clear definition of roles and responsibilities: Each employee should know exactly what their roles and responsibilities are.
Training and development of customer service staff: Regular training and development is essential.
Regular review and adjustment of customer service processes: Processes should be continuously reviewed and optimized.
Promote teamwork and collaboration: Good teamwork is crucial for success.
Recognize and reward customer service employees: Performance should be recognized and rewarded to keep motivation high.

Conclusion

Only by involving the specialist departments in process performance management and a consistent focus on success across all management levels is it possible to harmonize the individual goals to achieve overall success. Process Mining forms the technical basis for an automated analysis of process performance and operational performance indicators. In combination with associative business intelligence, correlations can also be analyzed and KPIs derived. This provides the company with a digital diagnostic professional that can be used in all relevant areas of the company to promote transparency and trust in collaboration with clients.

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Making data-driven decisions. Increasing process efficiency. Whether it's a strategic decision with far-reaching impact or a detail in day-to-day business, your process analytics solution should provide the right impetus for each of your data-driven decisions. Invest 60 minutes of your valuable time to learn how Deutsche Bahn, Siemens Healthineers, STRÖER and other innovative companies use Process Mining to make their business processes more efficient and continuously optimize digitized products.