Tuesday, April 21, 2009

Service Madness


The world is raising the bar on service levels in an effort to mitigate against the possible loss of business due to the impact of the global credit crunch.

Financial institutions are looking at innovations in product design so that they can lend out money but at the same time minimize the risk element that was ignored in the last few years which finally led to the crisis that we now find ourselves in. To this end, shiny new brochures are suddenly showing up on the service counters, branded T-shirts and caps are handed out, mugs and pens are issued with the opening of new accounts, all in an attempt to woo customers in with public relations efforts.

Restaurants have started to offer specials where the customer pays one fixed price for a meal but is allowed to eat multiple rounds of servings. This gimmick is practiced all over the world and attracts flocks of new customers who always want a good deal.

Some fuel stations offer a soft drink with every purchase of fuel of K100,000 or more. Most fuel stations try to offer windscreen cleaning, oil checking, and tyre pressure balancing as a standard service to set themselves as the fuel station of choice for local residents.

Even the contract hawkers that walk the streets of Lusaka and the Copperbelt knock at office doors selling camping lights, fly swatters, and storage bins, on a special offer system where you buy one and get one free.

The name of the business game in 2009 is to improve the service levels, keep the prices stable, and push for more turnover.

One curious observation in the cities, is that although there are these great efforts to keep businesses afloat, the fundamental support system to get the customers into the desired business premises is not addressed.

The business doors may open at 08.00hours, the staff may be pleasantly dressed, the premises may be squeaky clean, but there are no parking spaces available for driving customers to enable them bring their cash to the cashiers.

A quick look along Cairo Road in Lusaka reveals that most of the parking spaces are 'reserved' for the directors, managers, and staff of the very same businesses that are trying to attract customers. Where do the customers park?

In the developed world, directors and staff will either park at the back of the premises, or in out of the way parking areas so that the parking spaces for customers in front of the business premises is available to the public.

In Lusaka, there is now a budding industry for reserved parking barriers popularly known as 'visenke' to block every available parking space in the Central Business District. Businesses still wonder why they are not getting the customers that they expect after putting so much effort into upgraded in-premises service and freebees.

It is quite obvious that upgraded service must go all the way. It starts with the customer being facilitated to come to the business premises before the onsite service can begin to take effect.

One can imagine the anxiety and hassle of getting to any of our local radio stations located at the south end of Cairo Road for an early live show at 09.00hours. The guests will have to circle the area like vultures for at least thirty minutes before any kind of parking is found. Strangely enough, parking on the pavement in this area seems to be permitted and encouraged, but parking on the pavement in areas north of the Post Office building, attracts the wrath of the Lusaka City Council traffic wardens that clamp your vehicle and demand a K240,000 fine.

It is refreshing to note however, that Barclays Bank has recognised this difficulty at their new Premier Banking Centre at Elunda Park located adjacent to the Addis Abba round about. The car park at the entrance to the premises is reserved for customers and the top bosses and staff have to park on the gravel embankment along side the road. The customer is for once coming first.

2009 promises to be the year that will challenge service levels in all businesses. The current service level madness of ignoring the customer in favour of business bosses will impact on balance sheets, and top people will lose their jobs both in the private sector and the public service.

Businesses that will put the customer first, operate more efficiently, set a conservative profit margin, and deliver the goods, will survive the current global economic crisis and may even prosper.


Published on 21 April, 2009

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