Optimal customer service? Customer Process Management!

Martijn Huisman Tuesday, January 19, 2010

Every company strives to optimize the execution of its business processes. Among these processes, customer processes occupy a unique position. The reason for this is that these processes have a direct impact on customer satisfaction. On the other hand, these are processes which are very dynamic in nature. Customer processes must allow for rapid adjustments to changing circumstances. Customer Process Management is a booming field.

Focusing on business processes
For many companies, the execution of business processes is a hot topic. The advanced level of automation is one of the reasons for this. More and more process steps are performed automatically. Cost reduction and increased quality demands serve to propel this development. Additionally, from the CRM point of view, organizations aim to provide their customers with the best possible service. The application of intelligent systems has become indispensable in this. Finally, technological innovations create ever more possibilities.

Defining processes
The increased level of automation forces companies to standardize processes more often. While in a manual process you still have room to maneuver, the (partially) automated counterpart will allow no room for variation or interpretation. The exact way a process occurs must be defined for each situation. The defining of the process therefore plays an important role; it must be determinative and complete. Additionally, the process embedded in the system must support every possible situation. If all of the variations have not been defined, the organization will get bogged down. All occurring events must therefore be charted in advance, according to the Six Sigma philosophy, for example.

BPM and organization development
As processes increasingly become the central issue, they also become determinative for the structure of the organization. People and resources are organized around processes. This is not new, yet it is very defining for the way organizations develop. While in the past companies were built around functional domains, in the future they will be subdivided more frequently based on a logical clustering of processes, the so-called process domains.

Differences in dynamics
Process domains within a company can vary in nature. This is a direct function of the dynamics required by each of the underlying processes. In general, you could say that a purchasing process, for example, is less dynamic than a customer process. In other words, the frequency and the speed with which a customer process changes will be higher. This also implies that the required controllability differs per domain. This controllability in turn influences the required support.

The controllability of processes
The controllability of processes is determined mainly by the degree of flexibility with which supporting ICT systems and employees can be deployed. If a process is highly dynamic, then it should be possible to easily add or modify process steps. The same goes for business rules that are used within processes. Assigning the process tasks to different departments or processors must also occur with ease.

The allocation of resources
Consequently, a process is only as flexible as the allocation of its resources. These resources are responsible for the performance of the process and are therefore determinative for the dynamics. If they cannot be deployed flexibly, then the implementation of changes becomes difficult. This is true both for employees and for supporting systems.

Customer processes, a special process domain
Customer processes occupy a special position within the total business processes. Customer processes place high demands on controllability for example. In other words, these processes are directly visible to the customers and therefore impact customer satisfaction and the company chances of being successful. It is therefore very important that these processes can be modified rapidly. And this means that it is mandatory that the supporting systems may also be modified easily and rapidly; preferably directly by the business, without the intervention of ICT personnel.

The Focus of Customer Process Management
More and more organizations focus on the execution of customer processes. On the one hand, because customer satisfaction and loyalty are directly affected by it, whereas on the other, because it often involves labor-intensive and therefore expensive processes.

What is a customer process?
A customer process usually results from interaction. This can be inbound or outbound, contact by telephone, e-mail, 'snail mail', or other communication medium. This interaction can be seen as the intake phase of the customer process. During intake, it is determined which customer process must be started in order to then collect the data required to execute the process First Time Right. Tasks involved in the process - such as making decisions, writing letters and e-mails, and recording changes - can occur both manually and automatically.

As mentioned before, it is of crucial importance for customer processes to be able to be modified rapidly. The business (and thus, without the intervention of ICT personnel) must be able to easily redirect workflows, add standard letters, generate root causes, modify business rules, etc.

Customer Process Management Software
Customer Process Management software supports organizations in optimizing the execution of their customer processes. In addition to its contribution to the intake phase of customer contact - such as those tasks also supported by Customer Interaction Management tools - the software contributes to the subsequent setup of the customer process. CPM software for example supports communication with customers through letters and e-mail. Additionally, it ensures that employees always have up-to-date information on the customer's situation, that the number of pending tasks must also be clear, as well as the status of service levels. Finally, CPM software ensures that the adjustment of processes becomes a task of the business. Supported by software, adjustments can be implemented quickly and in advance.

Optimal customer service? Customer Process Management!