Service Complexity: Managing A House Of Cards (Really)
t may make sense to offer 12 varieties of lattes, at least to the company that markets the offering. In most cases though, too many choices create complexity and frustrate the customer. Moreover, there are times when the offering flummoxes the company’s staff. Slimming and streamlining the offering is the way to go, says this author, who suggests 3 practical steps an organization can apply to simplify things.
So, my daughter is going to Europe with her school’s travel club for a week over March Break. It’s an event that’s stressful enough for parents as it is, but then we start thinking about things like spending money, shopping and markets. Admittedly, those are topics of conversation for my wife and my daughter. I thought the idea was sightseeing, history and culture. But, what do I know?
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We came around to a reasonable amount of money in cash (Euros), and agreed that a credit card with a low limit on it would be appropriate. My wife went into the bank where we have banked since the days when you needed a passbook and knew the tellers by name (I won’t name the bank here). That’s just when the situation became frustrating. She explained our needs to the customer service representative, who politely responded that the bank didn’t have a card for a 15-year-old. They went back and forth a bit, my wife explaining that we didn’t want a separate account – our daughter obviously has no credit history – just another card on our account, in her name, with a distinct limit. This seemed very reasonable to us, and we expected, something that people asked for all the time. But nope, nothing. “You’re telling me you that have no product that can help me?”, my wife asked. “Correct,” was the response.
At just that time, one of the personal bankers happened by (don’t ask me about the bank’s hierarchy, although that’s related to the story). The CSR turned to the PB, looking for confirmation of her position. Fortunately, the PB asked my wife to tell her what she was hoping for. She repeats the request, and the PB says, “We can do that.” We thought we were off to the races. Well, almost. A number of gyrations, stalls and calls later, my wife and daughter picked up the new card the Friday before the big trip.
Full disclosure: this isn’t a customer service discussion, (although it could be). The issue here is complexity, and managing that complexity in a customer-centric environment. Specifically, the issue is whether Lean principles can help us chart a path through the complexity and actually improve customer service? The answer is, “Yes,” but there are challenges.
Problem Number One: Banks today simply have too many products and services for front-line staff to be aware of and understand, let alone master to the point of properly explaining the various options to a customer.
Problem Number Two: Bank tellers are a blend of part-time and full-time employees, and turnover ranges between 20 and 50 percenti. Think about that – in the row of 5 Customer Service Reps at your local bank, at least two of them have likely emerged from training in the last several months.
Problem Number 3: Through the Internet, referrals, and discussions with friends, family and peers, customers likely know more than the banks do about their products and services. Put all this together and no wonder banks struggle for solid customer service ratings. The deck is stacked against them, and by their own design!
Some might suggest that the problem is related to a lack of training for front-line staff. Well, yes and no. A few months ago, my accountant suggested that I get a corporate credit card for my little enterprise. After poking around the bank’s website, I found what I was looking for and tried to apply on-line.
“We’re sorry – that product must be applied for in-person at your branch.”
OK. As it turns out, our bank’s policy is that any new business accounts or changes to existing corporate accounts are managed by the branch manager. We had to book an appointment. When we arrived, two days later, we found that the manager wasn’t familiar with that particular card. But we worked through it. He was a nice guy so we decided to give him the benefit of the doubt. But again, we realized that there were just too many products and services for anyone to be an expert on any of them.
In my class last month I ran an exercise with a group of MBA students. Each student had to select a service where they had experienced a very good or very poor encounter sometime in the last 6 months, and then discuss the circumstances. There were a number of telling statistics that came out of the exercise, but interestingly, as many people complained about banks as airlines. The bankers out there are probably shocked: “You’re comparing us to an airline?” Actually, “Well, no. Your customers are.”
The revolution of lowered expectations
This was an anonymous exercise, so it wasn’t a matter of people jumping on a ‘Beat the banks’ bandwagon. We generally know what to expect from airlines and air travel…regulatory issues, security, cost, delays, co-passengers. As consumers, we’ve been trained to believe that a trip that arrives pretty close to on-time – and with all of our bags — is a great trip. But banks? I really believe we all expect more.
If complexity is the issue, where does it come from? For starters, take a look around your house. You’re probably like the rest us, a pack rat. We never throw anything away. Who knows when we will need those copies of Beverly Hills Cop I and II on VHS in our basement, those old shot glasses in our cupboard that we pinched in our university days,, or the worn-out hockey equipment on the shelf in the garage? I don’t know, but we will need them!
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