Completing the Resolution
Loop: The Service Lifecycle - Knowledge Management through Self-Service
CRM
by Greg
Cicio The customer is
king. Or so the mantra goes. But in execution, customer service
remains a tenuous balance between improving customer satisfaction
and managing the cost to serve. And not all customers are, in fact,
equal. Some represent greater revenue or profit potential. Some
represent a strategic gateway to new markets or the broader acceptance
of new products. Some are willing to pay for premium services that
dictate delivery against elevated expectations. Contracts that reflect
various levels of commitments -- Service Level Agreements (SLAs)
-- need to be respected.
Self-service portals are the most advanced solution to this challenge
-- a new means to simultaneously address objectives that can seem
at odds: delivering against rising service expectations while reducing
operational costs. But many IT strategies seem little more than
an elixir -- a magic potion to cure all that ails you, but often
failing to deliver financial results. Real-world complications --
information availability in a usable format, systems integration
and the human factor -- all can quickly erase expected benefits.
An experienced and reliable partner is needed to bring practical
and executable IT solutions to the table. Astea’s more than
20 years of experience have taught them what elements of new technologies
will best serve each unique enterprise. Customized Web self service
solutions are proving to be affordable solutions with promise for
bottom line results.
The cost of handling customer issues is rising, as are service
expectations. When well deployed, Web self-service can reduce operating
costs while providing more timely and accurate information to users
-- whether customers, employees or trading partners. But these self-service
portals must not be treated as a standalone solution. Unless connected
to broader business processes and practices, little may be achieved.
The real benefit of Web self-service is attained when viewed from
a larger service perspective. Terms such as Service Lifecycle Management
(SLM), Service Process Management (SPM) and Enterprise Service Management
(ESM) have emerged to embrace the best of traditional Customer Relationship
Management (CRM) systems and meld it with elements of Supply Chain
(SCM) to holistically support service-related business practices
for financial return. In a recent study of the so-called "aftermarket"
industry, "Service Lifecycle Management (Part 1): The Approaches
and Technologies to Build Sustainable Competitive Advantage for
Services," AMR Research found that while service divisions
of manufacturing companies typically generate only about 25 percent
of a firm's revenue, they represent 40 to 50 percent of the company's
profits, and yet only receive 20 percent of corporate IT investment.
"This spending gap originates from the widely held but outdated
perception that the service business is just a cash cow... However,
leading companies are changing their attitude about services, moving
away from the break/fix and spare parts mentality and becoming value-added
service providers responsible for improving customer profitability
and creating loyalty... To maximize revenue, companies should look
at the service opportunity as a lifecycle rather than an event or
even a series of discrete events. The lifecycle starts with the
initial product sale and continues through the adoption of new products."
CAN YOU WAIT?
In a recent Webinar hosted by Astea
International, Inc. speaker Michael Maoz of Gartner
Inc. forecasted that through 2003, an inability to centrally coordinate
customer service across channels will result in less than 20 percent
of enterprises being able to present customers with a consistent
experience (0.8 probability). He also forecasted that enterprises
that do not reengineer their systems, operating environment, policies,
procedures and staff as they add new channels will see their operating
expense increase by 40 to 80 percent for each additional channel
(0.7 probability).
By coordinating efforts across the enterprise, linking sales, service,
support and marketing with a holistic view of the customer, and
by providing customers access to preferred company touch points
with consistent and coordinated knowledge, self-service provides
a gateway to significant corporate performance improvements.
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