CASE STUDIES: ACCOUNT MANAGEMENT AND SERVICE OPERATIONS
IMPROVING ACCOUNT OPERATIONS AND CUSTOMER RETENTION
A Services client was struggling with client retention. A key issue was the consistency of service operations, which resulted in (unvoiced) client dissatisfaction and eventual attrition. All customer wins were essentially compensating for by account losses - leading to stagnant revenues. This was an industry wide issue and an opportunity for significant differentiation.
The underlying reason for the service inconsistency was a lack of defined account management processes – an issue that would seem relatively easy to address. However, many service processes fail to get embedded and their implementation becomes people dependent. So, the key was to build the right governance framework and support systems that result in the processes being institutionalised. We did this using a combination of interventions, with significant emphasis on an account audit process. On a periodic basis, the key accounts would go through an operations review process and each process would be scored. Audit scores were tied to the performance management system in the company.
Over 3 years of running this programme, the impact has been dramatic. Audit scores have consistently improved, and their relevance has been validated by a massive reduction in client attrition and improved levels of customer satisfaction. Revenue has grown 2.5 times during this period. Importantly, the organisation is now developing improved tools, sub-processes and training to take the account management framework to the next level and become a trusted partner for their clients.