Engaging Empowerment in Customer Service ⁽¹⁾

posted: May 25, 2010

Empowerment: what is it?

Understanding empowerment is best explained by illustrating how traditional customer service units operate.

A customer calls in regarding a complaint that resulted in monetary or personal inconvenience. The customer service representative (CSR) listens intently, empathizes with the customer regarding their experience, and then apologizes on behalf of the company.

Nicely done! But the customer is not satisfied. They have suffered personally and expect some resolution. The CSR then assures the customer that the company understands, but that he/she is not authorized to resolve the problem any further without management approval.

What we have illustrated in this example is the lack of empowerment given to the CSR in order to rectify the customer situation at the point of contact. The CSR can listen, show empathy, and try to make the customer feel good about the company's intentions. But beyond that, the CSR must take the customer's complaint up the chain of command before rendering any decision.

EMPOWERMENT IS KEY TO GOOD CUSTOMER SERVICE

Empowerment is to enable CSRs to make a range of decisions to assist and compensate their customers regarding any customer service situation. Through empowerment, CSRs are given the "power" to make decisions to further assist the customer. As Elaine K. Harris explains in her book ⁽¹⁾:

"If providers are truly empowered, they can, within limits, decide how to resolve the situation. If the providers have to put the customers on hold or make them wait for an answer while the situation is explained to a supervisor, everyone loses. The customers have to wait or possible repeat their stories, the providers are taken away from their regular duties feeling like helpless middlemen, and the supervisor has to hear a hurried explanation of the situation. This scenario could be avoided through empowerment."

Examples of Empowerment

Some examples of empowerment:

• Credit Card Company: the CSRs are given authority to reverse fees, increase limits and erase any customer charges that may be in question.
  
  
• Local Bank: all bank tellers are given $100 each month to distribute among customers to resolve any customer complaints such a long waits, teller errors, or being inconvenienced. The compensation to the customer may be flowers, a steak dinner or a charitable donation on the customer's behalf. All compensation must be documented to avoid money be spent on the CSR's behalf.
  
  
• Utility Operation: the CSRs are empowered to grant special payment arrangements that will better meet the customer's current financial needs.
  
  
• Retail Operation: the Sales Agent can accept returns of merchandise regardless of the time of return and reason for return. No questions asked.

empowerment steps

1. Define the Mission:
   the mission clearly defines what you are trying to accomplish; i.e., customer retention, customer satisfaction, customer promotion, etc. Your mission must be an inspiring reminder on how empowerment can benefit each member of the company.
   
   
2. Allow Workers to Own Their Empowerment Choices:
   give them responsibility that they can handle with periodic feedback on the empowering decisions they make. Do not punish CSRs when mistakes are made; it is better to retrain on the company missions. CSRs will avoid using empowerment if they feel their job is on the line.
   
   
3. Reward and Recognize Positive Empowerment Decisions:
   this encourages empowerment. Training others on positive empowerment decisions shows that your company is committed to the empowerment process.
   
   
4. Commit for the Long Haul:
   empowerment does not bring positive results overnight. Your commitment overtime will be measured in stronger customer relationships and CSR productivity.

Next time:
using empowerment in co-production units

References

⁽¹⁾ the following article was referenced from:

Harris, Elaine K. Customer Service: A Practical Approach, Fifth Edition; Prentice Hall
www.pearsonhighered.com