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Marketing - Customer Relationship Management


Customer service is very critical to us: Amex

Ashok Dasgupta

New Delhi , April 11

IT'S just about starting to happen in India. With the services sector growing at a fast clip, the customer is slowly emerging as king. Yes, there's still a long way to go, when compared to his pride of place in the US, but the positive aspect is that `the customer is king' does not sound as alien as it did a few years ago.

Not unusual, that the lead in this respect is being taken by multinationals engaged in services such as banks where dealing with customers by the minute is of the essence.

To stay on in the competition, the domestic giants will have to follow suit. And the sooner they do, the better it will be for them.

When it comes to consumer durables, the customer does assume a place of some importance, as of special significance in this sector is the after-sales service.

The more prompt and personalised the service, the better it is for the corporate concerned. But still, it is banks where customer service is of utmost importance as it makes or mars business, especially in this age of competition.

And in this respect, American Express (Amex), whose "vision" is to become the most respected service brand in the world, has taken a clear lead in the country's banking sector.

As a brand, what does American Express promise? It promises to make customers feel respected and special through unsurpassed service, expertise and integrity.

Mr K.L. Muralidhara, Vice-President & Country Manager, American Express Travel-Related Services, said: "Customer service is a very critical element to the success of a service industry like ours as it is directly reflected in the delivery - the product or service we provide is only as good as the manner in which we deliver it to our customers."

This, and much more, is not merely a placard pasted on the walls of Amex branches. Like a manual, it is supplied to each employee who is involved in interaction with customers and the commandments are to be strictly adhered to.

First among the commandments comes the commitment to customers.

American Express, says the manual, is to be seen as providing superior service each day and extraordinary support when customers need special assistance.

Customers must know that American Express will take their problems seriously and go to great lengths to solve them.

"At American Express, we consider customer service as our main product as well as competitive differentiator. The place customer service holds in our scheme of things is equal to the main business. In fact, in many ways, it means even more," said Mr Muralidhara.

What makes customer satisfaction so critical to success in general?

"In a typical white goods industry, customer satisfaction depends largely on the performance of the product, but is enhanced by the service provided. However, in the service industry, particularly like ours, continuous customer satisfaction is essential because the service is produced and consumed almost instantaneously, leaving little or no scope of recovery in case of failure."

In fact, as the customer interacts with the company on an almost continuous basis, it is the consistency and personal chemistry with the client that become differentiators.

"The product, in effect, is the sum total of the service that is delivered and, therefore, customer satisfaction acts as a key differentiator in our industry."

At American Express, the focus is on meeting the customers' needs with products that are carefully targeted to them.

The product range offered is also a critical success factor. "It's no longer about deciding beforehand what we are going to sell them, but about listening to what the customers are saying and taking information about their purchasing behaviour into account," the manual says.

"These days, customer service is no longer just about resolving a customer's inquiry. It is taking it to the next level by building customer relationships and being proactive about meeting customer needs. A customer with deeper relationships is always a more satisfied customer," said Mr Muralidhara. That's the crux of the matter. Are the competitors listening?

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