Picture this. You have been running a practice quite happily for years. But there is a new practice – part of a chain – in town. How can you, as an independent, compete and flourish?
It is not a new problem, but it is one that more practices are facing as many of the multiples expand their networks. But there is an answer, and it is one that applies even when there is no direct competition – offering the best possible service to patients.
Service as a solution
According to Joanna Causon, chief executive officer of the Institute of Customer Service, good service can be just the tonic. She bases her comments on empirical evidence, the most recent of which is the January 2022 UK Customer Satisfaction Index (UKCSI) – a survey in its 12th year that polls 10,000 consumers to track the effects of customer service on business performance.
As she points out, the top 10 organisations combined ‘functional efficiency and human care’. The index also found that ‘the highest rated organisations care about their customers, they make it easy to contact the right person to help and they build trust and give reassurance.’ In essence, these organisations are more successful than others in ensuring that they get it right first time.
And this is important for, as Causon highlights, ‘all of our research demonstrates that where an organisation has consistently higher than average customer satisfaction in their industry sector over a five-to-eight-year period of time, they will have better levels of financial performance, reputation, loyalty and productivity.’
It is just logical to say that where an organisation focuses on the customer experience, they improve their customer satisfaction levels. And satisfied customers tend to return.
Another point that Causon notes, is the role that Covid has played in pushing service up the corporate agenda. She says: ‘The pandemic demonstrated the critical role that customer service plays in the performance of any organisation… from a consumer perspective there are so many ways that we can communicate and feedback our concerns and issues in a very public way if we are not satisfied.’
It is worth noting that the only specialist optical practice in the UKCSI is Specsavers (although Boots features too). This year it was ranked 39th with a score of 82.6 with Pets at Home in first place with a score of 86.7. But compare Specsavers’ rank to that for 2021 and it is not so rosy – 11th place with a score of 82.7 versus First Direct’s first place ranking and score of 85.5. Marginal differences, but a win is a win.
Spin-off benefits
It does not take a doctorate to realise that good customer service leads to trust, loyalty and recommendations. As Causon explains: ‘We know that as consumers we want to buy from brands that are well trusted, care about us as customers, are ethical and do the right thing. But in addition to the financial benefits for businesses, enhanced reputation and greater trust help build better relationships with stakeholders, partners and regulators.’ And to this Causon tells that research found there’s ‘the productivity bonus to organisations and the wider economy… and it enhances your ability to attract and retain employees.’
But on the flipside, poor service just adds in cost with remedial action needed further down the line. The institute sees increases in complaints and problems leading to poor productivity, damaged employee morale, and difficulty in winning business – organisations have even lost franchises through poor service performance.
For Causon, customer satisfaction can help predict future financial performance: ‘We have seen organisations cut investment in service, which has led to a reduction in satisfaction, and financial performance has fallen in future years.’ In fact, she says that far fewer businesses now see short-term cuts to service as a good long-term strategy.
In a retail environment, where a practice is looking to improve, a ‘customer service charter’ is a good place to start. As to what a customer charter should say, Causon’s response is direct: ‘It should always reflect the values and purpose of the organisation, focus on what’s important to customers, define clear standards and provide differentiation.’
Getting buy-in
Of course, having a policy is one thing, but making it work is quite another. It is for this reason that Causon cites the institute’s ‘The Customer Knows’ research, which addressed this question: ‘Employee engagement is critical because it leads to more discretionary effort, emotional connection with customers, improvement ideas and consistent performance.’
Just as employee engagement is important, practices need to broadcast their efforts. Naturally, how this is done depends on the nature, size, and culture of the business. She says that word of mouth is still crucial, particularly at a local, independent level. Some businesses communicate via email, social media or in-store displays. But: ‘What is most important is consistently hitting those standards and keeping promises to customers.’
Being patient
Now to the crucial question – how can practices properly measure and understand what patients genuinely think?
Clearly thorough research and performance measurement help, but independent benchmarking is an effective way to get feedback and assess performance. Here Causon suggests ‘giving customers different opportunities such as surveys, focus groups, social media comments – and listening to your own people.’
The converse of this is dealing with complaints. Here Causon offers one key recommendation: ‘Avoid them in the first place.’ Even so, it is relevant that ‘drivers of satisfaction with complaint handling are speed of response, keeping customers informed and following up after resolution.’
Customer service is everything. Practices that do not listen to their patients will not have to worry about their concerns for long as they will be buying from optometrists elsewhere.
