ServiceMark

Since starting out from founder Jeremy Hyams’ front room in 1996, Claims Consortium Group has become something of a success story. Now employing nearly 300 people, primarily at their offices near Taunton in Somerset, the company provides property claims handling and claims workflow technologies working with the majority of the UK’s blue chip insurers. They specialise in claims for property damage from perils such as storm, flooding or fire. Integral to the group’s success has been a focus on customer service. You only have to read a short way down the homepage on their website before you come to the statement: ‘Customer service is the foundation of everything we do.’

Matt Brady, Group Managing Director, explains: “We’re very conscious that the customers we deal with are in a situation they didn’t want to be in. They’re often stressed and, having placed their policy with a blue chip insurer, have high expectations of service. So we put the emphasis on service right from the outset. For example, we ask our call centre staff to score a customer’s happiness from their very first call. This individualises the customer and places the focus on customer satisfaction straightaway.”

Service through the supply chain

However, customer service is not only delivered by Claims Consortium staff themselves, but also by the company’s network of partners, the contractors and surveyors that they employ to assess building damage and carry out work. As a result, the company works very closely with its partners and delivers customer service training to them through regional workshops. “We have a multi-layered operation and we need to get our supply chain to work in the same way as us,” Matt says. “In many ways, the most difficult part is getting the service ethos embedded into businesses that are not ours , so we work very hard at that.”

Linking it up

The majority of customer interaction is over the phone, but online is also growing fast as a channel. Overall, about a third of customers mainly use online, and for one insurer client, this rises to around 50% of their customers. Claims Consortium has developed a unique social media style portal called TrackMyClaim through which customers can communicate with parties involved in the claim and track the progress of the claim and repairs in real time. They can use it as an information source only or proactively post messages or add photos. An extension of this is Synergy, the company’s multi-enterprise software platform that brings all parties (not just the end customer) involved in the claims process together in real time, linking up everyone in the chain. “We’ve had around 1.5 million uses of Synergy so far since we launched it in 2015,” Matt says. “We think it’s a step-change in the industry. The system has also garnered outside recognition , such as winning the Institute of Customer Service’s Customer Satisfaction Innovation award in 2017.

Institute membership

The system has also garnered outside recognition, such as winning the Institute of Customer Service’s Customer Satisfaction Innovation award in 2017. Claims Consortium Group has been a member of the Institute since 2013 and, in 2016, achieved ServiceMark accreditation. They also use The Institute’s FirstImpressions customer service people development programme, run by their in house Learning and Development team.

Matt reflects: “Key to our business strategy is to invest in and develop our staff. We don’t have a ready market of insurance specialists around us here in Somerset so it’s essential that we train our people well ourselves and can retain our talent. We already had insurance qualifications that staff can do (through the Chartered Insurance Institute) but we needed something on the customer service side too, and the Institute fits the bill perfectly.”

Motivation and validation

The company didn’t rush in to doing ServiceMark, but ran the staff and customer surveys first to benchmark where they were before deciding to go for accreditation. Carly Eggar, Head of Accreditation and Certification at Claims Consortium, says: “We didn’t want to just chase badges and we realised that ServiceMark is not about badge collecting. We learned a lot through the surveys, of both our staff and our customers. For the customer surveys, we surveyed both our insurance company clients and their policyholder customers to get the fullest possible picture. A lot of the learnings related to the communication piece. It became very clear that although we were doing many of the right things as an organisation, we were at times failing to ensure that our staff and customers were kept as engaged as they should have been with changes we were making and the reasons behind them. This is something that we have worked extremely hard to address over the last few years and is an ongoing commitment.”

One of the biggest impacts of doing ServiceMark was internal, as Carly explains: “Staff found it really motivational to see that we were serious about benchmarking ourselves against the best. It gave them a greater sense of ownership too, that their views were being asked for and listened to. Gaining accreditation is like a validation, a sign of their efforts being recognised and rewarded. Since we did ServiceMark, staff have asked me when they’d be doing the survey again, so keen are they to be involved!”

When the assessor came in as part of the accreditation and interviewed around 25 staff, many of them were fairly nervous and didn’t know quite what to expect. But you could see their enthusiasm afterwards and how inspired they were. Meanwhile, First Impressions training has become part of the company’s on-boarding process and some 65 staff have been through it. Claims Consortium is also piloting the Institute’s more advanced Level 3 qualifications which were launched to the business as part of their National Customer Service Week celebrations and have received great levels of interest so far.

A ‘tie-breaker’

But it is not only on the internal side that the company has seen the benefits of its work with the Institute. Matt Brady says: “There has been at least one instance where we won a contract with an insurance client and our ServiceMark accreditation was one of the deciding factors. It was the tie-breaker if you like, that tipped the contract in our favour. Of course, winning new contracts or retaining existing ones is usually the result of multiple factors and complex scoring systems, but having the accreditation and being members of the Institute certainly helps” Matt also values some of the materials that the Institute produces, such as the ‘Customer of the Future‘ report which, he says, “helped me to think further about customer behaviours and therefore service strategies.” In the end, the goal as Matt sees it is quite simple: to provide a joined-up, professional service that satisfies the customer and therefore the end client. “The best we can do in fact is hardly to be noticed,” he says. “Our greatest compliment is when it’s been so effortless for the customer that they don’t even remember who we are or what we did!”

The company’s operations are extensive. It services some 2.4m domestic households and 160,000 businesses in Scotland. With a turnover of £1.2bn per year and employing around 3,750 staff, it is the fourth largest water company in the UK. With such a large customer and geographical base to cover (30,000 square miles), it is not surprising that Scottish Water has a very busy workload. It deals with, for example, around 40,000 sewer blockages a year. Service standards, therefore, are an absolute priority.

High aspirations, Scottish Water’s commitment to customer service is in part driven by its regulator, the Water Industry Commission for Scotland, who sets the service (and efficiency) standards that it must meet during each regulatory period. The company has in fact set itself even higher standards that it aspires to reach. It benchmarks itself not merely against other utilities but against other leading service providers in different sectors.

Peter Farrer, Chief Operating Officer at Scottish Water, who has responsibility for both operations and service, says: “Customer service is fundamental to what we do. We have proven that you don’t have to be a private company to deliver leading levels of service. We’ve also shown that, with the right focus, it is possible to drive up both customer service and operational efficiency at the same time.” The company has taken customer service seriously for a long time. Nine years ago, it introduced a ‘Customer Experience Measure’ whereby customers who have dealt with Scottish Water receive a survey asking for their views on their experience.

When this started out, it was done every six months to a sample of 1,000 customers. In the last few years, however, the company has significantly expanded this so that any customer interacting with the company receives a survey, sent to them by the same channel as they contacted the organisation through (phone, email, social media etc). Response rates are impressive, with around a quarter of surveys being completed, meaning that the company receives 1,000 to 1,500 pieces of detailed customer feedback every month.

Driving culture change

This expansion of the Customer Experience Measure is one of the things that Peter Farrer has introduced since becoming a Board Director in 2009. But he has also deepened the level of information captured so that a customer’s satisfaction can be taken right down to an individual operator level in the contact centre or the field. League tables are produced at an individual, team leader and manager level.

“This has driven a real culture change. It’s one of the ways we’re doing things that not many other utilities are,” Peter explains. “Nobody wants to be at the bottom of the league table! But we don’t just use the information for coaching purposes around areas for improvement, we also use it for positive and motivational purposes, such as positive reinforcement when a customer praises an individual or team for great service. It gives us such a rich seam of information. We have recently introduced the Customer Experience Measure for businesses too.”

Longstanding member

Another important facet of Scottish Water’s commitment to customer service is its membership of The Institute of Customer Service. Again, this is an area that Peter has driven significant changes to since becoming Chief Operating Officer. Scottish Water is in fact one of The Institute’s earliest members, joining in 1999. But for many years the company largely confined itself to working with The Institute on the training of its front end customer service staff.

Peter became a Board Member at around the same time as Jo Causon became CEO of The Institute. As one of The Institute’s largest members, Jo came to visit Peter early in her tenure. “We made a great connection,” Peter recalls. “I was very impressed by Jo’s passion and enthusiasm for improving standards of customer service, and I think she was impressed by our focus on it too.” Jo invited Peter to become a Vice President of The Institute. The Vice Presidents don’t sit on the Board itself but meet regularly in an advisory capacity. “Being a Vice President means that I rub shoulders with other senior executives from some of the best customer service organisations in the country,” Peter says. “We can share learnings and experiences, and I can take things back to try them at Scottish Water.

Matching the best

The company also makes much greater use of some of The Institute’s products and services such as the UK Customer Satisfaction Index (UKCSI), which surveys 10,000 individual customers of organisations across 13 sectors. The Institute has also provided an additional benchmark based on the responses of Scottish customers in the UKCSI. “Previously we didn’t utilise the UKCSI, but now it’s one of our fundamental business measures,” Peter says. “We use it as a means to benchmark ourselves not just against other utilities but against leading providers of other essential goods and services. Utilities are one of the poorest performing sectors in the UKCSI so we don’t want to just be the ‘best of a bad bunch’, we want to match the best, full stop. We have to be realistic though, because we’re always going to struggle against the likes of Amazon or John Lewis with whom customers have such regular interaction. That’s why we are targeting leading levels of service provided by other providers of essential products and services like Food Retail. Water is still a ‘silent service’ for many, but we’ve been doing pretty well, near the average across all 13 sectors. That’s good, though we still have further to go.”

The company has also achieved ServiceMark, a national accreditation awarded by The Institute, that recognises an organisation’s achievement in customer service – and was in fact the first large multi-site organisation to obtain it. Last year it gained re-accreditation. Peter reflects: “Whereas the UKCSI is in effect a lag indicator of how you have been doing, both ServiceMark and the employee survey ServCheck, are cultural indicators of how you’re performing. So they are really important to us too. ServiceMark, with its absolute scores that you have to meet, sets a high standard. We have also spent a lot of time with The Institute redesigning our various in-house training programmes for staff.” Another area the company has been involved in is The Institute’s forum on providing service to vulnerable customers. This has led to it linking up and working closely with electricity distributor Scottish Power Energy Networks. “That’s one of the many spin-offs at all levels from our involvement and participation with The Institute,” Peter says.

Holding up the mirror

Results have been going well. When Scottish Water first featured in the UKCSI nine years ago, satisfaction using their own real time Customer Experience Survey tool was at 60%. Now, they are consistently hitting 90% or more. The ‘Your Voice’ employee survey meanwhile, which is run independently, has an 80% return rate with engagement scores improving from 50% to around 70% in the last five years. “I don’t think there’s any doubt that working with The Institute has had a fundamental impact on our progress,” Peter says. “The regulator plays an enormous role, setting the standards we have to meet, the hygiene factors if you like. But with The Institute we have awoken to the art of the possible, setting our own agenda on how far we want to push service standards over and above the regulatory targets. The Institute has held the mirror up for us and made us look across all of the other 12 business sectors too. They have given us some lightbulb moments.”

Since 1978, Motability Operations has delivered the Motability Scheme, offering freedom to people with disabilities by enabling to them use their mobility allowance to lease an affordable, worry-free vehicle. Today, Motability provides cars, Wheelchair Accessible Vehicles, scooters and powered wheelchairs to some 640,000 people, and has arguably the highest performing customer service team in the UK. But it was not always this way. Motability’s journey has taken considerable commitment, and a willingness to think beyond convention.

The whole culture needed to shift

As recently as 2003, Motability Operations was, by its own admission, struggling. Its vehicle fleet was static at around 450,000, and poor financial performance threatened the organisation’s very existence. Customer contacts manager Emma Bird explains: “Back then, we were focused more on cars than customers, and our satisfaction levels, renewal rates and overall profitability reflected that.” Recently-appointed CEO Mike Betts saw that things needed to change, and fast. Emma continues: “Mike believed that in order for Motability Operations to be successful, the whole culture of the organisation needed to shift. But twelve years ago, putting the customer first was not commonplace, and such a radical shift needed an equally robust change programme.”

Lovers, not fakers

The crucial first step was to address culture: recruit team members with the right values, and empower them to focus on the customer first. Emma explains: “Current employees assist with recruitment to ensure we employ ‘lovers not fakers’, that is, team members who want to do the right thing, rather than doing it just because they’ve been told to. We set out a plan to recognise and reward people with empathy, who take responsibility during calls,” Emma continues. “We allowed them to make real decisions based on their discussion with the customer, even if it forced up average handling times. Now, calls are focused on where the customer is at emotionally, understanding what the call is really about before going into solutions.”

General Manager David Walsh agrees: “We’re a principle-led, not a process-led organisation. You can’t write processes for every situation, so we instil principles in people and give them a free hand to apply them.”

Bring out your dead

The emphasis on personal responsibility extends to development and performance management, where Motability employs a ‘Trinity Model’, involving the advisor, a coach, and a team manager. Emma explains: “Self-assessment is fundamental; our team managers’ main role is to enable people to become more self-managing, and the quality, attendance and adherence targets follow naturally.” David adds: “Trying to find development needs from six calls is pointless. If the person who takes the calls can be aware of their performance and come to coaching having identified for themselves the things they struggle with, that works much better We have a process called ‘bring out your dead’. If a call’s gone badly, people don’t hide it, they highlight it, and we don’t use it for performance management; it’s used for development.”

Independent and robust

As the unorthodox approach began to take effect, Motability Operations looked for ways to benchmark its progress , and arrived at the Institute of Customer Service, and its ServiceMark accreditation process. David recalls: “By 2010, we wanted to see how our results compared to the industry, so we entered call centre awards and came top in our sector, second overall and best newcomer. That was great, but awards aren’t always transparent about how the scores are achieved, so we looked for an accrediting body with real credibility across a wide range of industry sectors.” It had to survey both customers and employees, and it had to include an audit process that was independent and robust. The Institute of Customer Service stood out.

Doubts just evaporate

Meanwhile, Motability’s ServiceMark performance has helped in negotiations, and lent credibility at a pivotal time. “There’s been a lot of public scrutiny about benefits lately,” says David. “Our strong ServiceMark performance has really helped to protect our brand. Many of the banks that own us are pursuing ServiceMark themselves, so our score gives us a lot of credibility. It’s very widely recognised as a high quality standard, when we put our ServiceMark score on the table, any questions or doubts just evaporate.”

More understanding

Beyond top-level performance figures, the Institute is helping Motability to assess its performance on hard-to-find, operational KPIs. David says: “We’ve been to a lot of the Institute’s workshops and seminars, which are great for networking and sharing information. It can be hard to find out how the industry is performing on very specific, operational-level KPIs. Through the network, we can get more understanding about how our performance compares. It’s a good partnership. The Institute Account Directors are very good at sourcing information for us. Also, we’re now able to access further surveys, which we’re using to drill down and seek further improvements by comparing groups of customers to the population overall.”

From strength to strength

In 2015, Motability Operations underwent the ServiceMark process for a second time , achieving the UK’s highest ever scores for both customer and employee satisfaction, with an exceptionally high Net Promoter score of 94.2. David smiles: “Right now, we’re the highest performing customer service team in the UK; the Net Promoter score was off the scale. We’ve gone from strength to strength.”

“Going from good to excellent is hard, but going from excellent to outstanding is harder,” reflects Emma. One group, however, has benefited more than any other from the changes at Motability Operations: its customers. “We never forget that we’re fortunate to be delivering the product we are,” concludes David. “Some of our customers were previously housebound. So when you go home at the end of the day, you can sometimes say “We changed somebody’s life today” and that’s pretty good.”

Watch Andrew Harris, Customer Contact Centre Manager, at Laithwaite’s Wine discuss how he secured a return on investment from customer service training and skills development.