Customer service
Why is creating a customer service-oriented culture important?
Many issues around serving clients appropriately do not arise during the initial service delivery stage, but later, in servicing the product. It is at this point that a strong, consistent customer service model becomes especially important. As MicroSave cites, there are several compelling reasons for an MFI to develop a customer service-oriented culture, including:
- to retain clients
- to build word of mouth (the most effective marketing tool)
- to improve competitive positioning in the market
- to enhance efficiency.
How can you ensure that your employees treat clients well in all situations?
All MFIs should work to improve their customer service orientation. Doing so should bring positive outcomes in terms of social mission as well as financial objectives. Here are some guidelines:
- establish clear policies and standards on how clients should be treated
- put in place specific procedures to address each type of client interaction, ranging from truthful marketing pitches to respectful handling of overdue loan payments
- provide specialised training to staff and provide follow-up support so that they know how to deal with trickier situations, such as dealing with an irate customer
- role-playing can be a particularly useful way of finding creative solutions to difficult situations
- HR departments should work closely with senior management to design training that allows staff to raise issues regarding difficult situations/procedures. Particular policies can then be revised as necessary.
- internal control and incentive systems should also be designed to reflect your emphasis on customer service.
For instance, the Grameen Foundation often points out to its MFI partners that its ‘leader boards’ (acknowledging star loan officers on the branch walls) often just show performance by number of clients, portfolio size and portfolio at risk (PAR). When that is the case, the loan officer has no explicit organisational incentive to be concerned with customer satisfaction or treating a client fairly.
How can you create a public image as being customer service-oriented?
- Word of mouth is the most cost-effective form of marketing. Happy clients are most likely to recommend their MFI to their friends, families and colleagues, especially if it has always been responsive to their needs.
- Developing a reputation for being responsive can help you develop a good reputation locally and globally, which can in turn help you expand outreach and access external resources and support.
- Through a variety of media – including the internet, news bulletins, posters, etc – you can highlight policies and practices that demonstrate your commitment to quality customer service, even including client testimonials to enhance your public image. FIE’s website, for example, highlights policies and practices related to its social responsibilities toward its clients, employees and the communities in which it works.