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Walmart founder Sam Walton said: “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”
Companies have traditionally focused on product price points and features to drive sales, but the customer service experience also has a significant impact. We'll go over a five-step process below to develop an effective customer service training program for your small business.
Customer service training is critical because of the effect good customer service has on your bottom line:
These statistics highlight the importance of customer lifetime value (CLV), the total projected revenue generated by a single customer account. Increasing this number means customers are spending more money more often to purchase products and/or services from your business.
One way to maximize your CLV is to offer superior customer service instead of considering each sale as a one-and-done transaction.
One-on-one interactions between customers and customer service representatives break into five categories:
Customer self-service through methods such as help portals, knowledge bases, chatbots, and online forums and communities are also important, but here we'll focus on customer service staff training.
Use the 70-20-10 model when developing your customer service training program. This learning and development theory states 70% of training employees should be done on the job (OTJ), 20% through social interactions, and 10% from formal training.
The small amount of formal training may seem counterintuitive, but the 70-20-10 model, developed in the 1980s, emphasizes the role of the workplace to learn job skills.
Formal training may only account for 10% of skill acquisition, but it provides the framework for social and OTJ training to be successful. The two basic formal training methods are:
Neither face-to-face nor online training is "better" than the other; instead, a thoughtful combination of the two creates multiple, overlapping opportunities for employees to learn and reinforce excellent customer service skills.
Social training builds upon the skills and knowledge learned during formal training and emphasizes employee-based interactions at work. Methods include:
Social training integrates new employees with your existing workforce and demonstrates company culture in action.
Ongoing experiential learning at work provides most of your employees' training. Methods to facilitate this include:
Evaluations must help improve employees' future performance. They never work well when used negatively -- variations of "What were you thinking? Were you thinking?" -- because that creates an unhealthy workplace dynamic.
Training your customer service team is not a one-time activity. Your products and services, company processes, and customer service software change over time. Training is a continuous improvement process (CIP) that requires ongoing effort and support.
Before training anyone to do anything, you must establish the parameters and makeup of your training program:
Every training program incorporates multiple moving parts, and nobody gets it 100% correct right away. Solicit ongoing feedback from your trainees and trainers to determine what's working well and what needs improvement.
Your formal training program provides the baseline knowledge customer service reps require to perform basic job tasks:
Formal training may constitute only 10% of the overall training process, but without this knowledge, the subsequent 90% of social and OTJ training will fail.
Soft skills -- how to interact with customers -- are as important as hard skills. Extensive product knowledge and software abilities won't help support reps if they lack the emotional intelligence to help customers.
Every customer call, email, or other interaction presents a different situation to resolve. Essential abilities to do this include:
The rote memorization used to learn product features doesn't work with soft customer service skills. Instead, employ more one-on-one or group activities in formal, social, and OTJ settings. Useful methods include:
The one overarching ability your customer service reps must have and develop is empathy: the ability to put themselves in their customers' shoes. Empathy transforms a potentially adversarial interaction into an opportunity for shared resolution.
Change is a universal constant, so change or be a victim of change. Improving job performance is a CIP, which requires ongoing training in each learning model area:
Remember the distinction between assessment and feedback -- and when it's appropriate to use each one -- because many people use the terms synonymously. Assessment is an empirical score based on current performance, and feedback is information to help improve performance.
The final step in implementing your customer service training plan is measuring results. Performance metrics for your customer service department and individual agents include:
Other metrics include the cost-to-benefit ratio, customer churn, and product feedback.
Groove's customer service software report contains standard metrics for overall department performance: total customers, conversations (Groove's term for help tickets), resolutions, and daily breakdowns and averages.
Once you establish an initial baseline, generate reports at regular intervals. This data for overall customer service department and individual agent performance provides the information necessary to maximize your customer support efforts.
Enduring success is an elusive target for most small businesses because 20% fail in their first year, 30% by the second year, and 70% by their tenth year. Leverage the financial impact superior customer service training can have on your bottom line to help your business succeed.
Our Small Business Expert
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