Customer service - a strategic imperative

On January 26 I attended a conference with this title which was organised by CSQM International Ltd at the Corinthia San Gorg. CSQM stands for Customer Service Quality Mark. This is a mark which certifies a specific level of customer service across any industry or organisational set-up, be it large or small. The certification is based on a minimum set of criteria.

The objective of this conference, which was chaired by Professor Edward Scicluna, was to highlight the importance of customer service as a strategic imperative for commercial, public, and other entities in Malta. It was well attended by representatives of entities who wanted to learn how they can be more customer-focused.

The audience was made up of customer service managers and executives, managing directors of SMEs, marketing managers of major service operators, training consultants, and specialist stakeholders from the health and public sector, tourism, finance, ICT and retailing.

Professor Scicluna's international and national experience, along with his academic experience in economics, ensured that the conference focused on the customer service theme and remained firmly grounded to reality.

An investment in goodwill

In his speech, the Minister for Competition and Communication, Censu Galea, went straight to the point. He said: "The single most important thing to remember about any enterprise is that there are no results inside its walls. The result of a business is a satisfied customer", adding, "I think that with this quote from management guru Peter Drucker I can summarise the spirit of this conference".

He continued: "With our economy becoming more and more service-driven, the impact of having a first-class customer service function is a necessity rather than anything else. A good customer service is the hallmark of any entity."

On a very positive note with a particular focus on our customer service-oriented culture, Mr Galea said: "A lasting impression is what counts, and customer service is an investment in building goodwill. Perhaps the epitome of our customer service speciality can be attributed to our ancestors, who have uniquely carved an honourable mention in the Acts of the Apostles when they gave refuge to shipwrecked sailors without even knowing who they were. This is further attested by one of the world's highest tourist densities per capita." Indeed this constitutes a very meaningful recommendation.

Still with a particular focus on customer service in the public service, the minister added: "The strategic imperative of a good customer service experience is fundamental to any type of service provider. Products on their own add value to one's expectations, but it is the overall customer experience which makes the difference between success and failure.

"Sometimes the public service is blamed for a number of shortcomings. However, while certain practices are still ingrained in some quarters, I can assure you that as a government we are doing our utmost to ensure that the customer service function in the public sector reaches the highest standards."

Directorate's role

Barbara R. Buttigieg, director of information and consumer affairs at the Consumer and Competition Division, gave a consumer's perspective of customer service. She highlighted the importance of customer service for the Maltese economy given its socio-economic and cultural structure.

Among other things Ms Buttigieg outlined detailed functions of the Information and Consumer Affairs Directorate's responsibilities as follows:

1. Protect consumers to ensure that they have all basic, essential goods and services;

2. Dealing with queries and requests for information;

3. Dealing with consumer complaints;

4. Inform and educate the public, i.e. both consumers and traders, regarding their rights and obligations so as to create a balance in receiving and giving a service;

5. Issuing licences to door-to-door sales personnel.

She defined their objectives as follows: to encourage traders to improve business through learning; obtain more knowledge about consumers' needs; use knowledge to educate both consumers and traders with the aim of creating a level playing field between both parties; encourage traders to be innovative, give a better service, be self-critical, and seek feedback.

Competition, she continued, created advantages for consumers, such as better prices, better quality, better service and greater choice, and also advantages for traders - better business, more profit and a better lifestyle.

Cruise industry

Ben Stuart, co-ordinator of the Malta Cruise Network, focused on the growing cruise industry in Malta, which has experienced an 8.4% growth in the last decade and 8.7% in 2005 over 2004. The world demand for cruises in 2005 amounted to 14-15 million passengers. There are 283 cruise ships with 126 operating in the Mediterranean. Moreover, there are 31 ships on order worth 14 billion euros. Indeed a fast-growing industry.

Regarding market shares, the Caribbean has 50%, the Mediterranean 13% and the rest of Europe 8%.

In the Mediterranean there are 28 ports with a passenger throughput of over 80,000 and Malta was tenth in 2005, with 320,000 tourists. In 2006, 70,000 more arrivals by sea were registered, when overall tourism dropped. In no uncertain terms cruise potential is high for Malta and competition from destinations is strong, Mr Stuart said.

Malta as a cruise destination has great potential in many aspects. Indeed it has the product - diversity, vicinity, and places of interest. It also has the ability - logistics, infrastructure, and competitive pricing. However it lacks consistency. "We need to bridge the service gap between ship and shore and the service gap between business to business. We also need to develop our standard of service to be provided and maintain it," Mr Stuart stressed.

Deciding for themselves

Vincent Farrugia, director-general, Malta Chamber of Small and Medium Enterprises (GRTU), began by stating that the enterprise that will do well is the one that does not adopt the 'hard sell' approach. Consumers would rather visit showrooms, see products, and talk to dealers who do not push them. They feel more confident when they feel they can make their own decision. Electronic channels have empowered the consumer. The new mentality is that "I can decide for myself".

It is important for the customer to have all the information to make the right decision. Today's consumers know which outlets give only service to their customers and so it is the consumer who drives a business up or down.

Employers in sectors like finance, retail, hospitality and public utility services must ensure that their employees understand that investment decisions depend on market success and that this success is customer-led. This means that workforces need to be more adaptable and the survivors will be those who exceed consumers' expectations and demands.

Too many businesses are wasting good money on training and service consultants without getting it right. Customer loyalty fails because customers do not feel comfortable and they do not come back. Without customer loyalty a business cannot grow.

The truth is that in Malta total private consumption has reached the staggering figure, for our size, of Lm1.3 billion. To this one may add another Lm400 million in government consumption. Most of these millions are spent every year on the local economy. In spite of the meagre rates of economic growth registered by Malta over these last few years the ratio of GDP that goes to private consumption keeps growing.

People, people and people

Maria Pia Chircop, CEO of the Foundation for Human Resources Development, focused on the benefits of a 360-degree HR development strategy to ensure that anyone in an organisation is able to satisfy the external and internal client and what role human resources development plays in the scenario.

As she aptly put it, "Customer service is all about people, people, and people". People are the heart of our business. Indeed, "Customer service, a strategic imperative" was a very appropriate theme. An organisation is everyone from the top to the front lines of an organisation. It is where people interact, learn from each other, and work together. An organisation is a living organism. Excellence in customer service starts within the organisation.

The question is: "What do people want?" Well, the answer is: "They want to be respected; to be treated as human beings; to be appreciated; to be trusted; to have their needs met; to be listened to, and to be understood". They want customer service and in this context commitment comes from the top. It is part of the company's vision and culture. It must be strategically focused under effective leadership.

The qualities of effective leaders are self-awareness, knowledge, management skills, credibility, honesty, trust, fairness, confidence, enthusiasm and toughness. These qualities constitute "a happy work environment".

In conclusion, successful business should be underpinned with excellence in people management and in training and development. These yield excellence in customer service.

National standards

Ing. Francis E. Farrugia, chairman of the Malta Standards Authority, gave an overview of the Authority's remit, which includes the transposition and supporting infrastructure of Chapter 1 of the acquis - the free movement of goods. The Authority is the sole body in Malta recognised to issue national standards.

Malta, on joining the WTO in 2001, signed the WTO/TBT (Technical Barrier to Trade) Agreement Code of Good Practice for the Preparation, Adoption and Application of Standards. One of the main provisions of the Code calls for the utilisation of international standards; either existing or imminent, in the development of national standards, except where these are ineffective or inappropriate. He elaborated on the process in the preparation of standards and the principles behind standardisation, namely consensus, openness, transparency, market relevance, and coherence.

Ing. Farrugia gave information on consumer-related international standards, the most important being MSA EN ISO 9001 and the new standards being developed - ISO/DIS 10001 Quality Management, Customer Satisfaction (Guidelines for codes of conduct for organisations) and ISO/DIS 26000 - Social Responsibility.

ISO/DIS 10001 will be providing those setting up a scheme like the one being put forward by CSQM - a set of essential criteria for effective codes developed by both demand and supply-side interests to give consumers the confidence to deal with traders who comply with a code based on criteria established by a reputable and well recognised international body (ISO) and also to guide merchants about how to develop effective and credible codes of conduct. He concluded by giving information on the certification services provided by the Authority.

Joe Meilak, CEO of CSQM International Ltd, gave an overview of the recently launched Customer Service Quality Mark and what it can do to differentiate one's customer service from the competition. CSQM provides a cost-effective off-the-shelf Customer Service Charter plus underlying infrastructure.

The CSQM evolution is based on international best practices structured around a five-tier pre-Certification Audit and Improvement. He explained what the CSQM certification means for various stakeholders and described how the standard was evolved, how it operates and what benefits there are in terms of continuous management feedback to ensure that the customer service function is always tuned to the best possible way to meet client expectations in a cost-effective way and continuously improving itself.

Consumers' needs

Parliamentary Secretary Edwin Vassallo's presentation was entitled "Traders must give customer service". In this context he would rather consider the consumer in the marketplace as the main contributor who can determine commercial activity. He believes that in today's society we cannot consider commerce on the basis of the extent of our commercial activity. In his opinion, commerce in our country is as efficient and effective only as much as we can evaluate the relationship between the service supplier and the consumer.

In a given marketplace, when the service supplier identifies the ideal service to the consumer, he realises that primarily he is helping those who avail themselves from the same commercial activity. In such a scenario commerce can be described as a money-making machine.

However, traders must see to it that consumers' needs are seen to. They must not only think about making money. Indeed it is possible for traders to make it their top priority without any consideration about the needs of others. This would be a shame. We must not only consider making money as success.

Apart from the speakers' presentations, there was a syndication session divided into five streams which were led as follows: ICT - Simon Gatt; Health and Public Sector - Joe R. Aquilina; Tourism - Josef Formosa Gauci; Finance - Joe Abdilla; and Retail - Vince Farrugia.