Training Axed to Help Survive Recession
United Kingdom - One in three organizations cut
customer service training
A third of organizations have slashed customer service training
this year - but with Christmas looming it could spell trouble at
the tills.
The "slash and burn" approach to cost cutting could damage
relationships with customers at a time when competition is
fierce and high satisfaction levels are vital to survival.
That's the stark warning issued today by the Institute of
Customer Service following its recent poll.
The Institute found 30% of organizations surveyed have cut
investment in customer service training and 21% have laid off
customer-facing staff in 2009.
That is despite the Institute's research that companies with a
reputation for service excellence and committed frontline staff
have a 24% higher net profit margin than same-sector rivals who
do not enjoy similar standing, and can achieve 71% more profit
per employee.
The poll was conducted by the Institute of Customer Service
among customer service professionals. The results are based on
242 responses between July and October 2009.
Question: How has the recession most affected the customer
service you offer?
Answers:
A: (21%) We've laid off customer facing staff
B: (30%) We've cut investment in customer service training
C: (6%) We've cut investment in customer service technology
D: (19%) We've increased our investment in customer service
E: (21%) It's had no effect on our plans.
Jo Causon, the Institute's chief executive, believes it is
dangerous to see training as the place to cut costs because in
the current climate there is more competition for customers than
ever. In fact Retail Week recently reported that a third of
consumers intend to spend less this Christmas than they did
last.
"Investing in your people is a key differentiator in business
today. An organization that emphasises customer service, through
training and development, goes a long way to retaining staff -
which motivates them to satisfy customers." She added.
The good news from the poll is that one in five organizations
increased investment in customer service and a fifth said the
recession had no effect on their business plans. And earlier
this week Tesco announced plans to invest over £3 million to
develop their senior managers and directors through the Tesco
Academy during the next 12 months.
The poll also found only six per cent of organisations has cut
investment in technology.
The Institute of Customer Service is the professional body for
customer service whose primary purpose is to lead and raise
customer service performance and professionalism.
www.instituteofcustomerservice.com.
