Creating service excellence in organisations
Okimo Clinic´s article series on Superheroes explains my approach to marketing and learnings during the journey.
Learning on service management
Understanding success of service brands and organizations with focus on services marketing.
Saturday, February 3, 2018
Saturday, December 2, 2017
Transformation of service work – what affects your future job description?
It´s been decades since elevator and
switchboard workers. Nowdays receptionists are being replaced by machines and
energy consumption is being monitored remotely instead of inspectors coming onsite.
Service work transformation is not new. The potential of robots replacing
people has been discussed since a long time. What is new is the pace.
If not entirely replacing humans, technology
and robots can and will support people in their work by conducting e.g. repetitive,
strenuous or unsafe work. One profession may include several tasks. Thus some
tasks may be replaced or be supported by technology but the profession or what
it generates as such may not entirely disappear. What elements modify our scope
and choice of work? What does a future service worker do? What is the logic
between human skills vs technology?
Researcher Eveliina Saari, research manager
Jokke Eljala and journalist Jarmo Laitaneva discussed transformation of work in
YLE podcast “Arjen tulevaisuus”. Some considerations of the discussion
elaborated below.
Values
If robots can perform our work in the
future, what would be our own choice what to do? What work do we value?
Person´s basic needs cover job security and its meaningfulness. One also needs
the social interaction that work provides through a network of co-employees and
customers. Thus, work will not only be about speed, productivity or efficiency
but it is a wider context of elements that contributes to the meaning of life.
Technology can also bring new opportunities
of consuming services. Could virtual reality provide value and desired experiences
to e.g. senior citizens who want to enjoy their day? Go rowing virtually during
a rainy day. If we value certain experiences, can services be provided that
make their consumption easier?
Self service
How many people still go physically to a
bank? We don’t because it´s easier to take care of financials online. We even
have a service to conduct an online meeting with a bank representative. If
people feel they get service faster or easier, they do it increasingly
themselves.
Technology is however only one element.
Interaction, feeling of safety and empathy play a big role. Not everybody wants
to do everything online. A personal encounter may make a difference. A
professional can help make things more meaningful. Example is a doctor, who may
have somewhat better analysis of a disease and provide empathy. This
combination can be more attractive than self analysis.
Interaction
A complex and demanding surgery may be done
later by robots, who might provide a safer option than a real person. Will
people choose a real doctor or a robot? Will people choose a lawyer or a robot?
Will people choose a financial advisor or a robot? What are the ingredients
that influence our choice?
Emotional intelligence will play a bigger
role in the future than before in managing customer relationships once the
interactions become more meaningful. Facilitating a virtual meeting requires
different skills than facilitating a face-to-face meeting. We face new type of
interactions where old behaviours are not valid.
Social innovation
A service worker and a customer can build
new approaches by working and contributing together. How one performs
on-the-job may be influenced more independently than earlier. Out of the box
thinkers can bring new ideas that customer welcomes and begins new consumption
behaviours.
Service design
An increasing number of experts are
conducting service design. They help navigate services, make them logical and
easy to find. If you enter an airport, pay attention to how easy it is to find
check in, security, your gate and an empty cafeteria.
Light entrepreneurship
Companies have emerged providing professional
services for freelancers to easily get hold of entrepreneurship. They provide
accounting and taxation services in order for freelancers to be able to focus
on the work itself. The challenge may be lack of job security – there is no
guarantee of work continuation. The bonus of course is a low barrier to
starting one´s own company. Will search for self management increase so working
on your own feels more rewarding than working for somebody elses company even
if more risk included?
Learning
If you enter working life today, it is most
likely you will not retire from the same job. Therefore what keeps you
competitive is continuous learning. One builds proactively one´s own work by
learning about things one values and is interested in. Thus one can influence
the future work. Generalists may do better in the future since they build
skills in understanding a wide variety of things and be receptive to learning
new and working in multi-cultural or multidimensional environments. Talking
about improving our intelligence, there is of course a limited capacity.
Learning is continuous, but we cannot assume a person can absorb an unlimited
amount of new things. Knowing your history is a good platform for understanding
the new. Curiosity can complement what a person lacks in a position today.
My future job description?
What could robots do in my marketing work?
Collect customer understanding from various sources automatically? Plan and
choose topics relevant for customers? Link offering that matches customers´
needs? Conduct activities at customer interface that are in right places at
right time? Discuss with and make recommendations to customers online? Evaluate
results and optimize? Most likely all of this in the future. Coming back to the
emotional intelligence part, maybe with more challenging and meaningful tasks
even customers still want to engage with real people. Perhaps I become a concierge
linking people either to robots or other people. Planning marketing-as-a-service.
Thursday, August 24, 2017
Ingredients of a great team
When looking for a well performing team, we
often consider benefits of diversity, typically consisting of gender,
experience, nationality, culture and creativity. Instead, or in addition,
should we be looking for a mix of behaviours, such as skills in social
interaction, empathy and influencing? What are the ingredients that provide
best outcome for a given purpose?
Researcher Katri Saarikivi at Tubecon
industry day in Helsinki discussed elements of creating great online
experience. She emphasized importance of empathy and interaction. A “human
centered design” was featured as a key element in planning online experiences.
How do we do that? Demonstrating emphathy
and interaction towards our customers? Saarikivi stated that (customer´s) problem
solving is a combination of 3 factors: technology, cognition and sociability.
In addition to technical knowledge, competitive advantage is built on better
human understanding and better human contact. The key drivers to this, in
supporting employees, are according to Saarikivi ability to provide psychological
safety and trust, clarity of structures, meaningfulness and impact. In
Saarikivi presentation the core is everybody´s voice to be heard. Thus,
understanding, experience and actions together, generated by a well functioning
team, drive good customer service. More on Saarikivi viewpoints in recent
interview by Kauppalehti
Optio.
The New York Time Magazine wrote about a
quest to find the perfect team. The challenge was to find out how to turn
employees into faster, better and more productive versions of themselves, also
referred to as “personal productivity”. Some studies show findings that out of
our daily work, more and more time is spent on collaborative work. This should
enable better innovation and problem solving. Thus, focusing on team effort and
its impact is a big deal.
Successful outcome does not mean gathering
the best people to do the work, but rather forming a team that has best
ingredients contributing to success. New York Time Magazine case on Google
proved that mix of personality types or skills or backgrounds did not make the
difference. The “who” part didn’t matter. The norms and collective IQ that is
distinctive, than that of any single member, makes the difference. The right
norms could raise the group´s collective intelligence, good performance leading
to another. Some norms were identified; group members talked the same amount of
time ie everybody is listened to. Second, group members have social
sensitivity, demonstrating interpersonal trust and mutual respect.
Behind great customer experience is
therefore a great team that feels their work is meaningful, supported by open
dialogue and sharing, and understanding their mission. Team members, in ideal
situation, have various behavioural patterns. Those complement each other and
each others´ experience, driving common, shared norms and raising the
collective performance.
Aiming to develop our own competences and performance,
and living in a world that is never ready, our marketing team established an
own quest. Mission is to learn from digital marketing and online customer
behavior. One of the learning experiences was to choose a platform where to
benchmark our own work. As a result, we are now shortlisted at European
Communications Awards as Team of the year. Final results will be announced
after a pitch end of September. Feeling extremely proud of the team, I think we
have some great ingredients. Work and development continues.
Saturday, May 27, 2017
Transformation to a service company
Industrial companies are considering ambitions to re-position themselves towards service companies. We live in a service economy, thus the direction is evident. Consumers having great service experiences in e.g. retail, banking, and entertainment start having bigger expectations towards business interactions as well. A big consideration is profitability – how a service generates more value than a product, which may have attractive margins – but even bigger consideration may be how to maintain customer loyalty and remain competitive – since customer needs evolve.
An industrial transformation towards a
service company will most likely not be a fast turnaround, but depending on the
industry, customer base and scope of business a gradual change. From
engineering towards technology provider, from integrated solutions towards
services provider. There are a number of elements to be considered a part of this
transformation.
Ø How do customer requirements change?
o
Customers understand increasing
opportunities of online, data and analytics. Learning from consumer services,
they expect a smooth customer service in various channels. Customer needs may shift
from single transactions towards efficiency improvements, performance
guarantees and consultancy. Some customers still want individual products, but delivery
or installation requirements may change, and they may be willing to pay for
them.
Ø What is a positioning that provides a competitive edge?
o
Once the company understands
its customers business requirements, it is time to decide what positioning to
take. How to differentiate from competition? How to not just respond to
customers basic requirements, but help them improve their operations, and even
help them grow. Price, value, service, speed, sustainability, safety, peace of
mind?
Ø How to develop the footprint?
o
A company may own a number of
locations ranging from offices, production or service facilities and research
and development. Based on the positioning, what are the key factors? What are
the operations that support company positioning and increase profitability in
the long term and require more investments? Instead of own production, would
joint ventures, partnerships, or leasing make sense?
Ø What competence shift is needed?
o
A transformation towards a
service company requires new kind of competences. These are wider set of
various competences. Engineering and technology skills will be complemented by
powerful supply management, partnerhsips, integration capabilities, business planning
and advisory skills. Customer understanding is prerequisite for a successful
service company.
Ø What kind of offering sells?
o
What does the company sell?
What is in the catalogue that transforms into money? What responds to customer needs
and how can the portfolio be planned that it is modular and meaningful for
volume and value selling? A company needs solutions that can be commercialized and
promoted to its customers, not only tailor made upon request, which may become
too expensive.
Ø Importance of company culture and internal communications?
o
What are the employee
processes, measures and rewarding systems that support the transformation? Is
induction for newcomers still in own facilities or would it be time to get the
employees closer to customers business? How to reward for value creation?
o
In cultural context, it is
never too much to emphasise importance of internal communications. Employees
need and deserve to know about the company´s vision and business, and be able
to discuss and contribute to it. Next to customers, employees know best of the customer
business.
Recommended article European Journal of
Innovation Management Volume 7 · Number 3 · 2004 · pp. 218-228
Sunday, January 29, 2017
Marketing as a service
I´ve never liked the concept of “content
marketing”. Shouldn’t all marketing have some “content” that is relevant for
the target group. The definitions I`ve seen have sounded like what
integrated marketing has been about for decades. We need to find relevant
message for our customers in a channel where they get most value of it.
In a meeting at Finnish Advertisers
Association, we had a much more exciting discussion over “Marketing as a
Service”. Since people spend increasingly time in various social media
channels, it has become a hub for performing various tasks or activities.
Finding information, making comparisons, finding inspiration, looking for
services, performing transactions, or simply being entertained. This is where
customer service, sales, marketing and communications get mixed. Someone may
look for advertising for the sake of entertainment. Someone might be looking for
online technical support to use a product, and ends up buying more.
Marketing, with the purpose of generating
demand, can actually be used as – or generate - a service. Online channels
provide great opportunity for various kinds of interactions – when wished by
customers. Thus the customer journey logic works well. How can we serve the
customer within their purchase process through various actions that help them
make a decision – and be happy about it. Thus, the “Maalilinja” service by
Tikkurila, who provides inspiration for interior design over selling paint, and
“Traveller” service by Marriott, may be bigger reason to buy than
a single offer. In fact, a short movie by Marriott, ended up with 80.000
bookings, with service being destination information.
We marketeers may spend our times on
customer magazines and newsletters, which as such may be relevant and
informative. The challenge for the future will be where and when to publish
content to our target audiences. Someone suggested there should be a story
bank. When there is a trigger, such as political or economic event, or cultural
phenomena, we are ready to publish instantly. In addition to the annual or
quarterly plans, we need to be prepared for instant feed. How does this change
our planning or resourcing practices? Do online service personnel equal
marketing as a service?
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