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10 | 9th - 15th January 2015 | utILIty WEEK Interview forming sectors. Will these trends continue? Absolutely. "But the other reason why customer satis- faction is falling comes down to some organi- sations, across sectors, taking their eye off the ball during the recession. This is linked to a tendency to see customer service and 'nor- mal' operations as two different kinds of transaction." Now Causon is getting into her stride on a favourite hobby horse. "Customer service isn't just what happens in a cer- tain part of the business. It is not the responsibility of the contact centre. Great customer service is led from the very top of an organisation and integrated, vertically and horizontally, across the whole organisation. This means your processes, your culture, your service delivery, have to be completely integrated." Utilities, like other engineering-based enterprises, can struggle to come to terms with this, says Causon. Their natural focus on health and safety and critical infrastruc- ture can make customer service seem a marginal concern for outward-facing colleagues in a distant retail office. "But the companies that are doing best at this [customer satisfaction] are those who have chief executives who are helping a realisation that 'we are not an engineering company, we are a service company'," she says. For those who are sceptical about the importance of doing well in an arena that utility business traditional- ists might sideline as a 'so' measure, Causon has a clear message: "The purpose of the institute is to help com- panies improve their customer satisfaction for three rea- sons. It drives better outcomes – for individuals within the organisation, for the organisation itself and for UK plc." Over the past few years, ICS has accumulated signifi- cant evidence to demonstrate this, tracking growth in market share, improved revenues, customer retention and more among companies with strong customer ser- vice strategies, compared with those with weak ones. For some sectors it is "easier to put pounds, shil- lings and pence" to the added value, admits Causon, but across the board a "direct correlation between recommendation, loyalty, repeat purchase – it is there. I would like to impress on every board that better customer satisfaction drives better financial performance, when it is done in a sustainable way. The trouble is too many boards are too short term." So, assuming you have board buy-in and the patience to support a long-term integra- tion of customer service throughout the busi- ness strategy and processes, what are the key areas that utilities need to work on? "Companies must get the hygiene factors right," says Causon, referring to the basics of complaint handling and response times. These areas continue to be bug bears for utilities, according to insight at ICS, despite "a lot of energy and effort" being put into improvement. Getting better traction will need step changes in tech- nology and processes, says Causon – but also in people. "We can't have a 1980s view of IT," she says. "Tech- nology itself will not deliver a better customer outcome. For that you need a combination of technology infra- structure, but also better processes and, critically, well trained, knowledgeable operatives." Staff who are capable of delivering great customer ser- vice today and in the future need new commercial and technical skills that reflect proliferating sales and com- munications channels. They also need emotional intel- ligence and empathy to enable them to deal effectively with customers in the emerging "relationship economy" – the paradigm that Causon sees replacing a "transac- tional economy". It is not only operatives whose jobs will be trans- formed; ICS is about to embark on a significant piece of research into the changing skills, responsibilities and leadership approaches of management. For those in industry who have heard similar impera- tives for progress and change countless times before, each accompanied by different jargon and hailing a new 'revolution', these messages may induce a weary sigh. But it is hard to deny that with every generation of man- agement philosophy embraced over recent decades, the importance of customer service has only increased – a cause for celebration in Causon's eyes. "It's been satisfying to see its growing importance, to see it progressing from being a so area to people actu- ally really understanding that it is germane and runs through your business strategy," she says. "Those organ- isations who cannot understand that, frankly, I think will not be around in the future." "We can't have a 1980s view of IT. Technology itself will not deliver a better customer outcome" Debt dos and don'ts Jo Causon is one of the keynote speakers confirmed for the Utility Week Telecoms & Utilities Consumer Debt Conference on 18 March 2015. Focusing on laying the foundation for positive relationships with consumers from the start, Causon will imagine a future in which cross- sector collaboration plays a much greater role in managing a "holistic consumer experience". She says this should help to foster better understanding of an individual's circumstances and to avoid accumulation of debt, as well as providing the potential for improved customer service. "It's essential that companies find ways to make consumers feel a part of their organisation in the future," Causon continues. "They shouldn't feel simply like an adjunct or a number." But what about the very real problem of existing debt? Causon sympathises with "the need to collect outstanding payments – but the focus should always be on helping the customer to pay their bill", rather than harassing them. Again she returns to the need for understanding. "You'll need real listening skills and empathy," she says. "Understand their challenges; respond appropriately. Ensure your staff are empowered." Commenting on the news last summer that some water companies had taken to posing as third-party debt collectors to spur action from customers who had fallen behind with their payments, Causon says, "From a purely transactional perspective, it has been argued that the practice is efficient, because it has the effect of driving up outstanding bill payments. But at a time when the utilities sector as a whole is experiencing historically low levels of customer satisfaction and trust, and is under keen scrutiny from politicians, media and the public, perhaps the business case is less clear-cut." Pointing to ICS research that demonstrates links between trust, customer satisfaction and loyalty, she concludes, "Anything that threat- ens to undermine already fragile customer trust needs to be looked at closely." Find out more about the Utility Week Telecoms & Utilities Consumer Debt Conference at www.uw-debt.net.