Week Two discussion 1 replies. Please reply to the TWO students discussion post. 75 word min.

Reply to the TWO students' discussion posts with a minimum of 75 words each

Justin Forrester

The significance of a proactive customer service management process is the difference between a firm successfully managing friction or the firm incurring excessive cost due to rework and dissatisfaction. Customer service management is an inherently proactive process. Events that would require intervention can either be proactively identified, defined, and mitigated, or they can be realized when its too late and the only option left is damage control. In executing this process in a proactive way, triggers and signals for these types of events are developed. When an event is triggered, or information results in a signal of a potential event, triggers initiate a cross-functional response with the appropriate entities to proactively mitigate the situation. 

While these events, trigger, and signals need to be defined, it is also necessary to allow some level of ambiguity or fuzziness in the categorization and definition of these processes. Because not all situations fit into a standard, pre-defined set of categories, it is imperative to keep this in mind when implementing a system to account for these situations, much like the CRISP system 3M implemented in reading of chapter 4 (Lambert, 2014). 

Ultimately, customer service management determines whether or not top-level financials are impacted in a negative way that could have been prevented. Proactively mitigating a potential customer service issue could be the difference between a return customer and that account turning over. It could also mean the difference between margins being increased, or a higher cost of goods due to returns, reconciliations, or replacements. 

-Justin

Lambert, D. M. (2014).  Supply Chain Management: Processes, Partnerships, Performance (4th ed.). Supply Chain Management Institute, LLC.  https://online.vitalsource.com/books/978-0-578-92716-9

Jerald Henry

Proactive customer service management is a change in the approach from firefighting to predictive customer service in order to anticipate the needs of customers and meet them before a specific request or complaint is even made. This is an important step for contemporary companies to take, not only to streamline their operations, but to ensure they are developing sustainable competitive advantages. Anticipating and resolving potential friction points in the customer journey, like delivery delays or technical issues, and addressing them first can help minimize the amount of high-cost customer support interactions while at the same time improving the value of the support. If a customer has to put in less effort in the first place, they will be more loyal than just feeling delighted with what the company provides, research has shown.

Psychologically, proactivity is a reflection of commitment to the organization and empathy towards the customer, which mean that they are essential steps in gaining customer confidence and loyalty. If it is a company calling to solve a problem that the customer may not have been aware of, it's a different form of power dynamics, rather than remediation, its partnership. This initiative climate in the organization makes it easier for employees to share with the organization beyond the standard procedure, thus building a self-efficacy culture in the organization that directly translates into better services provided (Raub & Liao, 2012). In addition, proactive engagement is a great competitive advantage in today's hyper-competitive world. It makes customer service a profit center, rather than an expense center, helping to prevent customer churn and promote brand loyalty. In a nutshell, proactive management means that the company can manage the customer journey, maintaining that brand promises are delivered or exceeded every time, and that this helps to stabilize revenue streams in volatile markets. The strategic foresight allows the company to be agile and responsive towards the changing market demands. Therefore, it's imperative to take a proactive approach.

 

Reference

Raub, S., & Liao, H. (2012). Doing the right thing without being told: Joint effects of initiative climate and general self-efficacy on employee proactive customer service performance.  Journal of applied psychology,  97(3), 651.