Customer Service: A Profit Center not a Cost Center

By: Vincent Amen

This is a case study showing how Padgett-Thompson, a seminar company,increased revenue by 47% by refocusing the call center on outstanding customer care. Padgett-Thompson is a respected learning institution with an impressive track record of providing popular, skill-building training since 1977.

With a database of 6.2 million customers and prospects, Padgett-Thompson annually conducted over 8,000 public seminars with over 380,000 attendees. In addition, each year they have conducted over 2,200 onsite customized training programs for individual companies. Their most popular seminars included:

• How to Legally Fire Employees with Attitude Problems

• Basics of Accident Prevention and OSHA Compliance

• Communicating with Tact and Diplomacy

In line with a corporate mandated belt-tightening, Padgett was asked to reduce cost. Since the call center constituted the largest percentage of overhead or payroll budget, Padgett was directed to reduce call-center cost. The call center is viewed as an order taking operation. Additionally, customer service, especially as administered through the call center, had always been viewed as a cost to be controlled. There should always be downward pressure on the cost of an order to increase margin.

We would like to present a different view, where the purpose of the call center is not to take orders, but to deliver outstanding customer service. Superior customer care drives high customer satisfaction, which in turn increases near-term sales and loyalty. Loyalty, in turn, is a key component of long-term profitability.

Thus, the call center should be viewed as a profit center; a key component of the media mix, measured and rewarded for revenue, customer satisfaction and lifetime value.

Here is some supportive research illustrating the impact of poor customer service on customers, revenue and loyalty. Accenture commissioned International Communications Research to survey customers in the US and UK about their customer service experiences, focusing on telephone and Internet customer service interaction (5/05). Source: e-Marketer, 8/01/05). Almost half said that poor customer service led them to change a service provider in the past year.

Following are the reasons cited for switching:

• Poor service or product quality (61%)

• Get lower prices (46%)

• Service reps lack of knowledge about a providers services or products (39%)

• Lack of customized solutions (22%)

Our guess is that poor service, just like poor product quality, refocuses the customer from the benefits of the product to the price. Value-added products compete on benefits, commodities compete on price. Lack of product knowledge is, not surprisingly, a training issue. Training is also a substantial variable in the call center budget and a target of cost-cutting. Customized customer service training solutions are an outgrowth of a company's commitment to quality.

According to this research, the following are the most frustrating aspects of interacting with a customer service representative:

• Being kept on hold too long (78%)

• Needing to repeat information to multiple CSRs (75%)

• Inability of the CSR to solve problems (69%)

Additionally, 43% cited “not personable” and 43% cited “lack of personalized solutions.”

The results of this research certainly seem to uncover substantial opportunity.  And that opportunity starts with investing in, and tasking the call center with, providing outstanding customer service. Instead of cutting cost, let’s generate more revenue under the existing cost structure. While intellectually this is a “no-brainer,” implementation involved basic but substantial change in three areas: positioning, measurement and process.

The call center needed to be repositioned as a corporate resource, providing outstanding customer care as a strategic product of the corporation. Representatives then became a corporate asset, moving from a “customer service representative” to “Learning Consultants.” Measurement must include the basic call center metrics as well as a system for recognizing and rewarding achievement in customer service and revenue.

The process had to change in order to view the customer differently. Prior to this, the customer was viewed as a call, as a transaction. Take the order and move on to the next call. The process now had to encompass a view of the customer lifecycle – the customers’ wants, needs, and aspirations from the time they are thinking about training; to the research and investigation of specific training programs; to the actual seminar; and back at the office when they use the skills and concepts taught. Instead of just recording a sale, the learning consultants were expected to help customers make informed decisions based upon their goals. Necessarily, ongoing training became the catalyst for change.

By: Vincent Amen and Scott Hornstein

© 2015 Alliance Training and Consulting, Inc.

View our Customer Service Courses

Customer Service Skills for Success - $65.00

Learn the skills needed to communicate effectively with customers and deliver world class service customers expect.

Introduction and Overview

Customers are the lifeline of any organization. You can advertise incredible promotions and drastically reduce your prices to build your customer base, but unless you retain your customers, your organization will not survive.

Studies have shown 25% of an organization’s customers are unhappy all the time. And if that unhappy customer takes their business elsewhere, it will cost the organization five times as much to replace them as it would have cost to keep them.

Learning Objectives

By the end of this course you will be able to:

• Determine who your customer is
• Know how your customers buy
• Identify what the customer actually wants from you
• Become customer-focused
• Satisfy the customer 

This online program is designed to aid Customer Service Representatives in delivering quality service to avoid costly service errors, minimize customer frustration and improve customer retention.

View: Instructor-Led Customer Service Courses, Seminars and Workshops

How Can I Help You? Customer Service Best Practices - $49.00

Through scenarios and activities you how balance the needs of your customers with the needs of the company in providing quality customer service.

Introduction and Overview

How Can I Help You? Customer Service Best Practices online course explores best practices in providing customer service. This course can serve as an introduction if this is your first customer service job. But even if you are a seasoned professional, the scenarios and activities will give you a chance to ask yourself how you might better handle balancing the needs of your customers with the needs of your organization.

Learning Objectives

By the end of this course you will be able to:

• Identify customers as one of four different types: agreeable, directive, analytical, or expressive
• Adapt your customer service interaction to the customer's type
• Understand that customer service language should be both polite and efficient
• Explain how providing customer service over the phone or online differs from providing customer service in person
• Identify poor examples of customer service and explain how the agent could improve his or her interactions
• Understand how body language can effect a customer's perception of the service they are receiving
• Use the "No...but" technique to emphasize what the agent can do rather than what he or she can't
• Understand the reasons that customers might be difficult and handle difficult customers professionally
• Explain why providing customer service requires great communication with co-workers and supervisor

This course is self-paced and online. You will have access to this course for 60 days. Upon successful completion, you will receive a certificate of completion from One Hour Courses.

Target Audience: This course is designed for front-line customer service managers and all those interested in improving customer service.

Course Level: Introductory

Estimated Time to Complete: 1 hour

Successful Completion Requirement for Continuing Education Credit: Learners must score at least 70% on the course self-assessment to receive 0.1 IACET CEU.

Refund Policy:

You may request a refund up to 5 days from the purchase date. The registration fee will only be refunded if less than 10% of the course has been completed. Completion percentage can be viewed on the Course Progress page from within the course.

Click here to View all of our Online Continuing Education Business Courses. 

 View: Instructor-Led Customer Service Courses, Seminars and Workshops

Customer Service Training Course Directory

Learn Customer Care Skills to Achieve "World Class" Customer Service. 

These interactive customer service workshops and webinars are for companies who want to create a strong service culture that builds loyal relationships with customers and a better environment for their employees.

Our training sessions help organizations define company-wide customer service standards, implement strategies for effective service communication, and effectively solve customer service problems. Delivering exceptional customer service is key to business growth and team success.

Customer Service Training that works!

Our onsite CSR training and our CSR Webinars provide more than a list of do’s and don’ts. Through interactive exercises, cases and experiential activities, participants discover practical ways to hold on to your valuable customer base and win repeat business. Practice sessions built into every course develop skills to effectively and efficiently handle all types of customer interactions.

Proven Training Solutions that Get to the Heart of the Customer Experience

All courses are available in Onsite or Webinar formats.

We train service representatives how to:

• Create superior levels of customer satisfaction
• Discover what the customer "really" wants
• Ensure repeat business
• Improve sales and "up" selling techniques
• Put the customer at the heart of your organization
• Deal with difficult and demanding customers effectively
• Inspire loyalty with new and existing customers
• and much more...

Onsite or On-Demand training to Handle Even the Most Difficult Customer Service Situations Effectively 

Our customer service training helps organizations:

• Uncover obstacles preventing a higher level of customer service
• Provide better customer service using telephone, email, and face-to-face communication
• Discover new ways to overcome service obstacles
• Implement techniques to ensure service excellence and increase customer loyalty
• Focus service providers' efforts to achieve the results most important to the customer
• Improve sales
• Expand the customer base

Excellent service is the key to success. Your service representatives are expected to be courteous, knowledgeable, and efficient in every situation. You would not expect your accountants, engineers, or computer programmers to be knowledgeable, successful employees without any training. Customer service personnel need training to handle difficult customers and demanding customer service challenges of all types. Customer service training is an acquired talent requiring training.

For more information on our customer service training options, call toll free 877-385-5515.

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