Business Diploma Development of KPI

Question: Discuss about theBusiness Diplomafor Development of KPI. Answer: Introduction Customer satisfaction is the key to achieve the business success in this competitive scenario. The study will identify the two major concerns of establishing the effective customer service. The first concern is to handle the complaints of the customers and retaining them by fulfilling their queries and offering the relevant services. The second concern is to train the employees the proper way of dealing with the customers. More specifically, it is necessary to guide an underperforming employee to bring the most efficient work outcome (Zohar 2014). The development of the relevant KPI would help in resolving such issues and establishing the efficient customer service process. The study will also focus on the recommendations that will resolve such challenges and bring more efficiency to the organisational functionalities. Development of KPI (Key Performance Indicator) The case scenario is highlighting is one of the premium customers of the company did not receive the widget equipment for the mining project. However, the company promised to deliver the equipment within three days whereas even after a week it was not delivered to the client. Mary, one of the customer service team members was an underperforming candidate. She sometimes behaves very rude to the customers. In fact, in this case, she started arguing with the client due to misunderstandings. However, the issues can affect the organisational functionalities in a significant way. The development of some of the key performance indicators is essential for this case scenario. The major KPIs of customer service are as follows: Overall Satisfaction Satisfaction Improvements Customer Retention Net Promoter Score Conversion Rate Average Resolution Time Active Issues Resolved Issues Employee Productivity Employee Retention/ Employee Turnover Complaint Escalation Rate The set of KPIs addressed above are developed to handle the customers complaints and managing the underperforming employees. It is necessary to pay the attention towards the performance parameter of the associated staffs to bring the most effective outcome (Parmenter 2015). The further plan will be developed to mitigate the merging issues and provide the customers remarkable services. Development of the KPI Plan for Monitoring the Team Members Performance Task/responsibilities Key outcomes Actual Performance Overall Satisfaction Performing the regular customer satisfaction survey Daily for 3 months Satisfaction Improvement Improving the satisfaction by bringing the changes in the business process and establishing the innovative ideas (Dickson 2015). 1st month Customer Retention Involving the satisfied customers for offering the customer service. 3 months Net Promoter Score Customers would provide the net score depending on the satisfaction level. Monitoring the result on a regular basis for 3 months. Conversion Rate Conversion rate goes higher if the communicator from the customer service team is efficient enough to convince the customers (Goetsch and Davis 2014). The improvement of the communication and convincing power of the team members is essential. Therefore, the training should be provided for 1 week. Average Resolution Time The customer service provider needs to answer the queries quickly. The quick response of the service provider crates the significant impacts on the customers minds. The customer service provider needs to be knowledgeable enough for resolving the queries promptly. Active Issues If the staffs are unable to response too quickly, it is necessary to deal with one issue at a time. Too many issues may create confusions. Resolving one issue at a time will generate confidence to deal with other challenges. The staffs need to receive proper training to confront such situation. Resolved Issues The staffs can take a look on the past resolved issues to derive knowledge about the customers responses (Anitha 2014). It will be helpful enough in understanding the proper process of dealing with such challenges Guiding the employees in an appropriate way and sharing the past experiences with them would help in handling the customers in a better manner. Employee Productivity Application of the useful method of measuring the employee productivity is essential. Taking feedbacks and monitoring the performance of the employees would be helpful to measure the employee productivity. Employee Retention/Turnover If the employees are comfortable with the work environment, they tend to focus on their jobs and stay for longer time. The proper motivation and training provides to the employees would be helpful enough in retaining them for longer time. Compliant Escalation Rate The complaint escalation rate determines the satisfaction rate of the employees (Dhar 2015). The changing demands of the customers may bring more escalations. It is necessary to be much responsive and make the modifications as per the needs. Table 1: KPI Plan (Source: Created by Author) Questionnaire for Customer Satisfaction feedback Q.1) How far are you satisfied with the quality of the widget equipment offered by our company Options Response Rate Response Number Total Respondents Highly Satisfied 5% 1 20 Satisfied 15% 3 20 Neutral 25% 5 20 Dissatisfied 35% 7 20 Highly Dissatisfied 20% 4 20 Table 2: Quality Satisfaction (Source: Created by Author) The derived information from the responses is indicating that majority of customers are not really happy with the quality of the services. It is essential for the company to keep the attention towards the quality parameter that will be beneficial in attracting the customers for future. According to you what are the major areas that need improvements? Options Response Rate Response Number Total Respondents Communication 20% 4 20 Quick Response 15% 3 20 On time delivery 35% 7 20 Quality Service 30% 6 20 Table 2: Improvement Areas (Source: Created by Author) The responses extracted in this process is indicating that majority of the customers opt for on time delivery of the services. It is essential to maintain the proper time schedule and deliver the products to the customers on time. Hence, the company needs to focus on timely delivery of the services. Along with the scheduled timeline, it is even necessary to keep the focus on the responses of the employees, quality parameter of the service, and the communication process. Recommendation The above study highlights the company has been facing the issues due to the poor handling of the customer service problems. It is essential for the company to keep focus on the performance parameter of the associated employees who usually communicate with the customers and convince them to purchase the service. Therefore, it is essential to keep focus on the following recommendations that will help in developing the effective customer services. Providing the Proper Training and Development Session When the employees receive the proper guidance and training from the management, it becomes easier for them to handle the customers queries. It is noted that the customers requires quick responses and expected service delivery on time. In order to fulfil such needs, the employees need to receive the proper information and work methods. It will be helpful enough in resolving the issues that the customers are facing. Establishing the Transparent Communication Maintenance of the transparency in communication is essential for retaining the customers as well as employees. When a customer orders something, it is the responsibility of the employees to keep the entire information including the delivery time. When the customer does not receive the service within the proper time, the employees can resolve the queries by communicating in a significant way. On the other hand, the management needs to focus on motivating the employees and providing them the comfortable atmosphere to work. The establishments of the transparent communication are much helpful in identifying the demands of both the employees and the customers. Development of the Employees Interpersonal Skills The management needs to provide the proper guidance to the employees for improving their interpersonal communication skills. As per the regulations, the customers have the full rights to lodge a complaint against the company if the expected services are not received. Similarly, the employees should not behave rude to the customers in any circumstances. The right body language and polite response would be considerable for retaining the customers and the reputation of the company. References Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance.International Journal of Productivity and Performance Management. Dhar, R.L., 2015. Service quality and the training of employees: The mediating role of organizational commitment.Tourism Management,46, pp.419-430. Dickson, P.R., 2015. The adoption of customer service improvement practices.Marketing Letters,26(1), pp.1-15. Goetsch, D.L. and Davis, S.B., 2014.Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Parmenter, D., 2015.Key performance indicators: developing, implementing, and using winning KPIs. John Wiley Sons. Zohar, D., 2014. Safety climate: Conceptualization, measurement, and improvement.The Oxford handbook of organizational climate and culture, pp.317-334.