What Makes Customer Service Experiences Great or Terrible?

 Which factors contribute most to great and terrible experiences when customers contact businesses?

To find out, Oracle and Ascend2 surveyed 5,053 people around the world between the ages of 18 and 80 with an annual household income of $40,000 or more.

Respondents say the factors that contribute most to a positive customer service experience are helpful service agents (65% cite), having the ability to easily find the information needed (62%), and receiving proactive service to address potential issues (42%).

Respondents say the factors that contribute most to a negative customer service experience are having to repeat themselves to multiple agents (56% cite), having to contact customer service multiple times (52%), and being unable to reach a live agent (47%).

Respondents say the things that matter most to them when trying to contact a business for customer service are the speed of getting connected to an agent (64% cite) and having to expend limited effort to achieve a resolution (46%).

The researchers found the customer service method of contact that has seen the greatest increase in usage over the past two years is webchat with a live agent (35% of respondents report using more).

About the research: The report was based on data from a survey of 5,053 people around the world between the ages of 18 and 80 with an annual household income of $40,000 or more.

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Communication in business

What is effective communication and why is it necessary?

Communication is when a message transfered from one person to another and is understood by the latter. We communicate everyday (by talking, by chatting, by texting, etc.) but we need to learn how to communicate effectively. Effective communication means that:

"The information or message being sent is received, understoodand acted upon in the way intended."

In business, ineffective communication or communication failure could result in serious problems. 



Why do people within business need to communicate with each other?


In business, if we do not communicate, we would be working as individuals with no co-ordination with anybody else in the business. The management, whose tasks are guiding, instructing and commanding subordinates could not be done because they cannot communicate with them. Here are some common messages found in the workplace:

• No Smoking (sign)
• You are fired because you are always late (letter)
• Do not touch (sign)
• There will be a fire drill 11:00 today (noticeboard)

There are many more things that are communicated. Consequences would be severe if these matters are not communicated effectively. 

The process of effective communication:

Effective communication involves four features:

• The transmitter/sender who sends the message. He has to choose the next two features carefully for effective communication.
• The medium of communication. It is the method of communication, e.g. noticeboard, letter, etc...
• The receiver who receives the message. 
• Feedback means that the receiver has received the message and responds to it. This confirms that the message has been understoodand acted upon if necessary.

One-way and two-way communication

There are two types of communication. One-way communication is when there is no feedback required for the message, or the receiver is not allowed to reply. This might be the sign that says "No smoking", or your boss saying: "give me a biscuit". The other is two-way communication, when feedback is required. Therefore, both people are now involved in the communication process. This could lead to better and clearer information.

Pros of two-way communication:

• The sender can now know whether the receiver has understood and acted upon the message or not. If they have not, the message might have to be sent again or made clearer. Effective communication takes place only if the message is understood by the receiver.
• Both people are involved in the communication process. This makes the receiver feel more important which might motivate them to make better contributions to the topic discussed.

Internal and external communication

Internal communication is messages sent between people inside a business. For example:

• The boss talking to his subordinates.
• A report sent to the CEO.

External communication refers to messages sent to people or organisations outside the business. For example:

• Orders for goods from suppliers.
• Talking to customers.
• Advertising to the public.

Both types of communication is almost the same, the only difference is who is being communicated with.

Why external communication has to work well

External communication can greatly affect the efficiency and image of a business. Imagine if the wrong information is sent to a supplier and a customer. The supplier would send wrong materials while the customer might buy products from another company. Here are some cases which ineffective external communication might turn out to be very dangerous:

• The Finance Manager writes to the tax office inquiring about the amount of tax that must be paid this year.
• The Sales Manager receives an order of 330 goods to be delivered on Wednesday.
• The business must contact thousands of customers because a product turned out to be dangerous. An add must be put into the newspaper so that customers can return the product for a refund.

Different ways of communicating: the communication media

Information can be transmitted in several ways:

• Verbal: Involves the sender speaking to the receiver.
• Written: The message is written to the receiver.
• Visual: Using charts, videos, images or diagrams to communicate a message.

There is no best method of communication, so the appropriate medium of communication must be selected depending on the situation. First the sender also has to analyse the advantages and disadvantages of each type of communication.

Verbal communication

Verbal/Oral communication might be:

• One-to-one talks.
• Telephone conversations.
• Video conferencing.
• Meetings.

Pros:

• Information is transferred quickly. This is an efficient way to communicate in meeting to lots of people.
• There is opportunity for immediate feedback which results in two-way communication.
• The message might be enforced by seeing the speaker. Here the body language and facial expression could make the message easily understood.

Cons:

• In big meetings, we do not know if everybody is listening or has understood the message.
• It can take longer for verbal feedback to occur than written feedback.
• Verbal communication is inappropriate for storing accurate and permanent information if a message. (e.g. warning to a worker)

Written communication including electronic communication

Here are some written forms of communication:

• Letters: Used for both external and internal communication. Follows a set structure.
• Memos: Used only for internal communication.
• Reports: Detailed documents about any problem. They are done by specialists who send them to managers to analyse before meetings. These reports are often so detailed that they cannot be understood by all employees.
• Notices: Pinned to noticeboards that offer information to everyone. However, there is no certainty on whether they are read or not.
• Faxes: Written messages sent to other offices via telephone lines.
• E-mails: Messages sent between people with the same computing facilities. The message is printed if a hard copy is needed.
• Intranet: A network inside a business which lets all employees with a computer message each other.
• Internet: The global network for messaging anyone. (e.g. customers, suppliers)

Pros:

• There is hard evidence of the message which can be referred to and help solve disputes in the future over the content of the message.
• It is needed when detailed information is transferred: it could be easily misunderstood. Some countries the law states that businesses need to put safety notices up because people could forget them.
• The written message can be copied and sent to many people.
• Electronic communication is a quick and cheap way to get to many people.

Cons: 

•  Direct feedback is not always possible, unless electronic communication is used. However, this could result in too many emails sent (information overload). Direct feedback via other means of written communication is hard.
• It is not as easy to check whether the message has been understoodor acted upon.
• The language used might be difficult to understand. The message might be too long and disinterest the reader.
• There is no opportunity for body language to be used to enforce the message.

Visual communication

Here are some forms of visual communication:

• Films, videos, and PowerPoint displays: often to help train new staff or inform sales people about new products.
• Posters: can be used to explain a simple but important message. (e.g. propaganda poster)
• Charts and diagrams: Can be used in letters or reports to simplifyand classify complicated data. Computer technology could help in the design of these charts or diagrams. A printed copy might be needed for hard data to add to reports and documents.

Pros:

• Present information in an appealing and attractive way that encourages people to look at it.
• They can be used to make a written message clearer by adding a picture or a chart to illustrate the point being made.

Cons:

• No feedback is possible. People need to checked via verbal or written communication to check that they have understood the message.
• Charts and graphs might be difficult for some people to understand. The message might be misunderstood if the receiver does not know how to interpret a technical diagram.

Formal and informal communication

Formal communication is the channel of communication that is recognisedby the business, such as notices on boards, emails and memos. Formal means of communication is important. It shows that the information given is true.

Informal communication might be communication between friends and co-workers. There is no set structure and the information transferred is not recognised by the business. This channel of communication could be used by the manager to try out new ideas, before publicly announcing it to the rest of a company. However, informal communication can result in gossip can rumour, and managers have no way to remove these informal links from people.

Communication nets

There are many groups of people in any organisation, and each of them communicate in different ways. People have connections with each other, and these links form communication nets. There are three standard types of communication nets:

Chain network:

+ Can be used to transfer important messages from higher management levels to lower levels.

 - This often leads to one way communication.

 - The message could become altered as it passes through different management levels.

Wheel network:

+ The central management can pass messages to all departments quickly.

 - The departments cannot communicate directly between themselves.

Connected network:

+ This is used to create or discuss new ideas.

+ It specialises in two-way communication.

 - Can be time-consuming.

 - There is no clear leader or sender of messages.

Which network works best?

There is again, no best network. A company is likely to use different network at different times or for different groups.

• The chain network is for communicating important business policies.
• The wheel network is used for sending different messages to different departments.
• The connected network is used to generate new ideas or solutionsto problems where group discussion is the most effective.

The direction of communications

Here is an organisation chart from the book explaining the direction of communications within the business. The arrows are labeled A, B and C which shows the direction of communication:

• Arrow A (downwards communication):  
• Used by managers to send important messages to subordinates.
• Does not allow feedback.
• The message might be altered after passing different levels.
• Arrow B (upwards communication):
• Used by subordinate send feedback to managers. 
• Feedback from subordinates ensures that there is effective communication.
• Feedback results in higher morale and new ideascontributed to the business.
• Arrow C (horizontal/lateral communication):
• People at the same level of management communicate with each other.
• Information and ideas can be exchanged both formally and informally.
• Can cause conflict between departments. (e.g. Production department asks the Finance department for a budget to hire new staff but is rejected)

Barriers to effective communication

As we already know, the four parts of effective communication includes the sender, medium, receiver and feedback. However, communication may fail if there are problems with one of these four features. If one part fails, it becomes a barrier to effective communication which might cause a breakdown in communication resulting in serious consequences to the business. Here are some common barriers to effective communication and how to overcome them.

Problems with sender:

• Problem: Language is too difficult to understand. Technical jargonmay not be understood.
  Solution: The sender should ensure that the receiver can understandthe message.
• Problem: There are problems with verbal means of communication. (e.g speaking too quickly)
  Solution: The sender should make the message as clear as possible and ask for feedback.
• Problem: The sender sends the wrong message to the wrong receiver.
  Solution: The sender must ensure that the right person is receiving the right message.
• Problem: The message is too long with too much detail which prevents the main points from being understood.
  Solution: The message should be brief so that the main points are understood.

Problems with the medium:

• Problem: The message may be lost.
  Solution: Check for feedback. Send the message again!
• Problem: The wrong channel has been used.
  Solution: Ensure the appropriate channel is selected.
• Problem: Message could be distorted after moving down a long chain of command.
  Solution: The shortest channel should be used to avoid this problem.
• Problem: No feedback is received.
  Solution: Ask for it! Use different methods of communication (e.g. meeting)
• Problem: Breakdown of the medium.
  Solution: Use other forms of communication.

Problems with the receiver:

• Problem: They might not be listening or paying attention.
  Solution: The importance of the message should be emphasised. Request feedback.
• Problem: The receiver might not like or trust the sender, and may be unwilling to act upon the message.
  Solution: Trust is needed for effective communication. Use another sender to communicate the message.

Problems with the feedback:

• Problem: There is no feedback.
  Solution: Ask for feedback. Use a different method of communication which allows feedback.
• Problem: The feedback is received too slowly and may be distorted.
  Solution: Direct lines of communication should be available between the subordinate and the manager.

Note: The forms of communication are: verbal, written and visual.

           The methods of communication can be: telephone, e-mail, meeting, etc...

Organisational Structure

What is organisational structure?


Organisational structure refers to the levels of management and division of responsibilities within a business, which could be presented in an organisational chart.


For simpler businesses in which the owner employs only himself, there is no need for an organisational structure. However, if the business expands and employs other people, an organisational structure is needed. When employing people, everybody needs a job description. These are its main advantages:

• People who apply can see what they are expected to do.
• People who are already employed will know exactly what to do.

Here is an example of a Job Description taken from the book:

When there are more than one person in a small business and they all do different things, it means that they are specialising in different jobs.

Delegation

Delegation refers to giving a subordinate the responsibility and authority to do a given task. However, the final responsibility still lies with the person who delegated the job to the subordinate. Here are the advantages of delegation for managers and employees, as well as why some managers choose not to delegate.

Pros for the manager:

• By letting subordinate do smaller tasks, managers have more time to do more important tasks.
• Managers are less likely to make mistakes if tasks are done byspecialist employees.
• Managers can measure the success of their task more easily.

Pros for the subordinates:

• Work becomes more interesting and rewarding.
• Employees feel important and trusted.
• Helps train workers, giving them better career opportunities.

Why some managers don't want to delegate:

• Managers are afraid that their employees will fail.
• Managers want total control.
• Managers are scared that the subordinate will do tasks better than them, making them feel insecure.

Delegation must mean:

• A reduction in direct control by managers or supervisors.
• An increase in trust of workers by managers or supervisors.

Organisational charts

Eventually, when a business grows larger and employs many people, they will have to create an organisational chart to work out a clear structure for their company. Here is another example of an organisational chart from the book:

Here are the most important features of the chart:

• It is a hierarchy. There are different levels in the business which has different degrees of authority. People on the same level have the same degree of authority.
• It is organised into departments, which has their own function.
• It shows the chain of command, which is how power and authority is passed down from the top of the hierarchy, and span of control, meaning how many subordinates one person controls, of the business.

Advantages of an organisational chart:

• The charts shows how everybody is linked together. Makes employees aware of the communication channel that will be used for messages to reach them.
• Employees can see their position and power, and who they take orders from.
• It shows the relationship between departments.
• Gives people a sense of belonging since they are always in one particular department.

Chain of command and span of control:

Here are two organisations, one having a long chain of command and the other a wide span of control. Therefore, the longer the chain of command, the taller the business hierarchy and the narrower the span of control.  When it is short, the business will have a wider span of control. 


In recent years, people have began to prefer to have their business have a wider span of control and shorter chain of command. In some cases, whole levels of management were removed. This is called de-layering. This is because short chains of commands have these advantages:

• Communication is faster and more accurate. The message has to pass through less people.
• Managers are closer to all employees so that they can understand the business better.
• Spans of control will be wider, meaning that the manager would have to take care of more subordinates, this makes:
• The manager delegate more, and we already know the advantages of delegation.
• Workers gain more job satisfaction and feel trustedbecause of delegation.

However, if the span of control is too wide, managers could lose control. If the subordinates are poorly trained, many mistakes would be made.

Functional departments

Here is an example of an organisational chart from a larger business from the book:

Here are they key features of this graph:

• The business is divided into functional departments. They usespecialists for each job and this creates more efficiency. However, workers are more loyal to their department than to the organisation as a whole. Therefore, conflict can occur between different departments. Managers working in these departments are called line managers, who have direct authority and the power to put their decisions into effect over their department.
• Not only are there departments, there are also other regional divisionsthat take care of outlets that are situated in other countries. They use the local knowledge to their advantage.
• There are some departments which do not have a distinctive function but still employs specialists and report directly to the CEO/Board of Directors. These departments are the IT department, and theEconomic Forecasting department. Some say the HR department fits in this category. These departments give specialist advice andsupport to the board of Directors and line managers, and the managers of these departments are called staff managers. They are often very highly qualified personnel who specialises in only their area. 

Here are the pros and cons of employing staff managers:

Pros:

• Staff managers help and provide advice for line managers on things such as computer systems.
• Helps line managers concentrate on their main tasks.

Cons:

• There may be conflict between the two groups on important decisions and views.
• Line employees may be confused and do not know who to take orders form, line or staff managers.

Decentralisation

Decentralisation refers to a business delegating important decisions to lower divisions in the business. In a centralised structure important decisions are taken at the centre, or higher levels of management.

Advantages of a decentralised structure:

• Decisions are made by managers who are "closer to the action".
• Managers feel more trusted and get more job satisfaction due todelegation.
• Decisions can be made much more quickly.
• The business can adapt to change much more quickly.

Decentralisation means that:

• Less central control.
• More delegation.
• Decisions taken "lower down" in the organisation.
• Authority given to departments/regions

Different forms of decentralisation:

• Functional decentralisation: Specialist departments are given the authority to make decisions. The most common of these are:
• Human Resources.
• Marketing.
• Finance.
• Production.
• Federal decentralisation: Authority is divided between differentproduct lines. e.g separate truck/car/bus divisions.
• Regional decentralisation: In multinationals, each base in each country has authority to make its own decisions.
• Decentralisation by project means: For a certain project, decision-making authority is given to a team chosen from all functional departments.

Is complete decentralisation a good idea?

It is dangerous to let the lower-level management make all the decisions. Therefore, it is wise for the central management to decide on major issues, long-term decisions, growth and business objectives. If these issues are notcentralised then there would be a lack of purpose or direction in the business.