Due to the nature of my job, I find that I am constantly thinking about how to improve customer satisfaction, but as a consumer, it’s also something that I am acutely aware of when it’s done incredibly well (see my post about J.Crew).
Add technology to the mix, and you can bring satisfaction levels to new heights with process innovation and customer facing technological improvements.
I also believe that an acute and strict focus on customer service is also increasingly important for all business transactions — even if your firm is not in the retail or hospitality industries. Why? Because there is always a competitor eager to snap up your customers if you don’t meet their expectations perfectly. This is where technology can greatly add value, and create competitive advantage. Just ask Apple and USAA.
Technology Drivers in Satisfaction
This year Apple has ranked third in Business Week’s customer service survey. Apple’s service technology including the genius bar, and “roving in-store checkout clerks” were primary reasons listed for their success.
The company’s sleek devices and user-friendly software aren’t its only innovations. Appointments at Apple’s (AAPL) “Genius Bars” and its roving in-store checkout clerks are just two ways the company has pioneered new approaches to customer service. The iPhone maker is likely got a bump this year as more companies created customer-friendly apps for their own services, helping to burnish Apple’s customer service brand. // via Customer Service Champs 2010: No. 3 Apple - BusinessWeek
The article continues that USAA (an online-based banking/insurance institution for the military) has taken the number two spot, mainly because of the use of technology within it’s “brick-and-mortar-less” operations and their iPhone app. Just think, when you are in Iraq, how are you going to get to your nearest branch? What about mailing in a check? That’s where technology comes into play.
When Staff Sergeant Corey Mason wants to deposit a check, he doesn’t use an ATM, a teller at a branch, or even a stamped envelope and deposit slip. Rather, the 37-year-old GPS systems specialist takes a picture of the check with his iPhone, uses an app to send it to his bank, and within minutes the money shows up in his account. // via USAA’s Battle Plan - BusinessWeek.
In reading the business week article about USAA, it’s remarkable how their revolutionary technology has increased customer satisfaction, and created life long relationships and brand loyalty.
It’s not just the people piece any more, it’s the technology behind their customer interactions. What I find even more surprising, is that they are able to quantify their return-on-investment in technology with top-notch customer service ratings and rankings in these types of surveys. So very difficult to make a business case for these technologies, but with the right filter, it can mean the difference between a world-class and mediocre firm.
Take Note
It is remarkable how technology has influenced customer service in today’s marketplace and world-class brands like Apple and USAA are at the forefront of this phenomenon. This is certainly not an easy feat these days, but is something that other service brands should take note of and strive for in order to survive the onslaught of Consumer 2.0.
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Full Disclosure: I am an employee of Apple. I am not commenting on the company other than to report a positive Business week article. Any opinion above is my own, and that not of my employer.
I’m a bit surprised that this is just beginning to be a trend… but nevertheless…
A recent survey of business leaders, conducted by the Economist Intelligence Unit and commissioned by Accenture, revealed what those IT and business leaders are discussing in their closed-door budget meetings. The results hint at one thing when it comes to IT: strategy.
via BlueLock - IT to go “strategic” in 2010.
In fact, when discussing technology and the role of IT in an organization, strategic partnerships with the other functional areas should be a primary goal, as technology can directly influence behavior in the organization and more importantly revenue streams.
For example, technical oversight via systems processes can ensure proper and legal behaviors of the staff, integration between business models can influence collaboration and timeliness, and an IS&T strategy can ensure that the functional roles and tactical behaviors of employees are focused on clear value added jobs and responsibilities.
IS&T can also affect customer behavior and employee attitudes towards customers when they have a clear view into each interaction between the firm and those respective customers through proper CRM implementation and how the customer has responded through business intelligence and analytics.
Proper implementation and strategy of information technology and systems is one of the primary strategic goals that any global Fortune 100/500 firm can implement in order to ensure sustained competitive advantage, even if they are focused in other areas for profit.
One reason why this may not have been a trend until recently, is I that it can be incredibly difficult to identify the causal relationship of IT to behavior in an organization and most if not all will be anecdotal. That can cause problems for many ‘quants’ out there.
I would guess — while I believe these systems can and do impact tangible returns like an increase in revenue and a decrease in expenses — there is really no way that you can eliminate (at least in a real business climate) the variables that affect behavior. But with enough anecdotal evidence, you can piece together a proper idea of the effects of information technology on said business climate.
If we look at a case in which an industry that is primarily driven by other means, such as the Banking sector, one can’t imagine an environment where technology wasn’t a strategic asset. Banks certainly can’t focus on their trading and asset management without a proper IT strategy, and it needs to go to the heart of the organization so that it influences individual behaviors and roles. Otherwise, focusing on any other opportunity or strength is in vain, and the firm is destined to fail regardless. This can be related to any number of industries including the energy sector.
And when they fail at IS&T it can be disastrous for the firm, and should be noted when determining any future strategy.
If technology and systems didn’t come so naturally, I really believe that I would have become an economist. I just find it fascinating. The “business information systems” major was such a perfect fit for my abilities, that I didn’t really think twice about selecting it when I was choosing my major at Lehigh. But, as I continue to read up on the current economic climate, work in an industry where consumer confidence greatly matters to our offerings, and I uncover little gems like this article by John Tierney, I realize that my interests run far deeper than technology and design. I wonder if I should have studied more micro and macro economic principles than the 4 semesters I ended up with…
“Maybe, sometimes, old-fashioned economics is just about right,” Dr. Shayo says. “Maybe when it comes to food, people do have reasonably stable preferences. Some people like shrimp and some don’t, even if it’s worth a lot of money.” [via NY Times]
Check out the article. It’s a rather interesting read about consumer preferences and how price affects those preferences. Oh, how I fondly remember those indifference curves and plotting consumer preferences…
The Lehigh University Business Information Systems program builds a strong foundation in cross-functional business processes and the application of information systems to support them.
The use of technology to improve business performance and effectively support strategic business plans is a major focus of the program, and my core background and university level coursework includes competency and advanced experience in each of the following areas:
Strategic Management
- Advanced concepts and practices from the core business curriculum at Lehigh University utilizing an organization-wide strategic perspective and examination of the relationship among firm strategy, structure and environment.
- The coursework emphasized strategic analysis strategy formulation, and strategy implementation so as to achieve sustainable competitive advantage.
- Traditional and non-traditional methodologies/theories including topics involving SWOT analysis, Porter’s Five Forces Model, Peter Drucker, Joseph Schumpeter, and Clayton Christensen.
- Corporate governance, corporate social responsibility and business ethics are incorporated into the strategic perspective of the firm.
- Case analyses and competitive simulation game (multi-quarter, multi-nation, multi-faceted model was utilized during real time strategy formulation) were the central learning components.
Business Application Programming (Java)
- Design, coding, and testing of business applications in a high level, object oriented computer programming language (Java).
- Topics covered: Methods, classes, objects, control structures, arrays, string manipulation, graphics, graphical user interfaces, and web based applets.
Managing Information Systems Analysis and Design (Modeling / SDLC)
- Focused on managing the requirements analysis and system design methodology and techniques for business information systems.
- Coursework included cost benefit analysis and risk management of business systems development, JAD and structured walkthroughs, structured and object oriented methodologies, and software package evaluation.
- System Development Life Cycle and OOM/UML were main course concepts.
- Emphasis on effective communication and integration with users and user systems and encouraged interpersonal skill development with client users, team members, and others associated with development, operation, and maintenance of the system.
- Advanced Excel competency including VBA/Macro formulation, and Pivot Tables.
Business Data Management (Oracle / SQL)
- Fundamentals of database management systems (DBMS), including database development, processing, logical and physical design, access, implementation and administration.
- Extensive experience in developing data models, creating relational databases, and formulating and executing complex queries in SQL.
- Focused on analyzing the connections between data and business organizational information needs and decisions, and understanding the principles of managing organizational data.
- Advanced experience in large scale Oracle databases and developing in SQL.
Electronic Commerce
- Focus on how businesses and consumers use the Internet to exchange information and complete transactions.
- Both theoretical concepts and practical skills including site design and database integration.
- E-commerce related advertising and marketing, e-commerce business and revenue models, online consumer behavior, web site design issues, Internet security, electronic payments, infrastructure issues, privacy issues, and overall electronic commerce strategy were covered.
- Microsoft SharePoint advanced competency.
eBusiness Enterprise Applications (ERP, SAP R/3, Salesforce.com)
- Focus on the implications of key information technologies used within and across businesses to conduct eBusiness.
- Developed competency in the functionality of various enterprise applications (including advanced configuration and using SAP R/3, Salesforce.com) and their integration.
- Enterprise systems included: Customer relationship management, enterprise resource planning, supply chain management, supplier relationship management, data warehousing and data mining, data scrubbing, business intelligence and analytics, and product life-cycle management.
Negotiations and Conflict Management
- Practical experience in the theory and processes of negotiation in a variety of settings including face-to-face, virtual and cross-cultural business environments.
- Focus on classical game theory and application.
- Negotiating skills developed by preparing and simulating a broad mixture of negotiations, ranging from one-on-one, to three-person, to multiparty and team negotiations.
- Developed skills to analyze outcomes and strategies utilized during negotiations.
Human Resource Management
- Analysis and resolution of personnel problems in organizations.
- Application of traditional strategies for human resource planning, recruitment, selection, orientation, training, appraisal, compensation, and development.
- Interactive and competitive multi-factor simulation that incorporated human resource management concepts and philosophy.
Management of Organizations
- Introduction to the principles of management and human behavior in organizations.
- Survey of organizational design structure, strategy, planning, control, human resource management, and project management.
- Conceptual and applied introduction to organizational behavior topics such as individual differences, perception/judgment/decision-making, motivation, communication, teams/groups, leadership, conflict, ethics, social responsibility, diversity, and culture.
Supply Chain Operations Management
- Introduction to managing global supply chains and operations within the context of an integrated value chain.
- Topics included purchasing and supplier management, demand forecasting, aggregate planning and inventory management, collaborative planning, forecasting, and replenishment processes, capacity planning, ERP, quality management, distribution, transportation management, service operations logistics, and performance measurement.
