The Neglected Powerhouse: Why Companies Overlook Customer Experience

Now more than ever before, businesses often find themselves struggling to differentiate themselves from their competitors. One key area that has been consistently undervalued is the customer experience. Despite its proven importance in building brand loyalty and driving sales, many companies still neglect this critical aspect of their operations. With the focus on acquisition, many companies falsely believe the work is done once you have a new customer in the door. This tunnel focus on acquisition only, leaves riches on the table which a savvy business can easily pick up by managing the full end to end experience and not just the entry points. So what are some of the reasons why companies focus too little on customer experience and what are some possible solutions for this oversight.

Short-term mindset

One of the main reasons companies overlook customer experience is their focus on short-term gains over long-term benefits. This short-sighted approach can result in a neglect of the experiences that customers have with a brand, leading to reduced customer satisfaction and loyalty. In the long run, this can be detrimental to a company's growth and success.

Misaligned priorities

Companies often significantly prioritise financial performance over customer satisfaction, viewing the latter as a secondary or even tertiary concern. This can lead to a lack of investment in customer experience initiatives and a reluctance to allocate resources to improve the customer journey. This misalignment of priorities results in a missed opportunity for businesses to foster strong relationships with their customers and build a loyal customer base.

Lack of understanding

Many companies lack a deep understanding of the importance of customer experience and the role it plays in long-term success. This lack of understanding may stem from a limited knowledge of customer experience management, or an inability to recognise the value of customer-centric strategies. As a result, businesses may fail to see the potential benefits of improving customer experience and may not invest in the necessary resources to do so.

Insufficient data and metrics

In some cases, companies may struggle to measure customer experience effectively. Without the right data and metrics in place, it can be difficult to identify areas for improvement and track progress. This lack of data-driven insights may contribute to the neglect of customer experience initiatives, as companies may not be aware of the impact that poor customer experiences have on their bottom line.

Organisational silos

Organisational silos can create barriers between different departments within a company, hindering communication and collaboration. This can lead to fragmented customer experiences, as each department may have different priorities and objectives. The lack of a unified approach to customer experience can prevent businesses from delivering seamless, high-quality experiences to their customers.

Customer experience is a critical aspect of a company's success, and businesses that overlook its importance risk losing customers to competitors who prioritise their needs. To remedy this oversight, companies should adopt a long-term mindset, align their priorities with customer satisfaction, invest in customer experience education, implement data-driven strategies, and break down organisational silos. By doing so, businesses can unlock the true potential of customer experience, building lasting relationships with their customers and driving sustainable growth. To discuss how Envisago can you help you with your Customer Experience needs, email us at hello@envisago.com or book a call with us today.

How to create an excellent SOP in 10 steps.

Envisago SOPs

Standard Operating Procedures (SOPs) are essential tools for any business that seeks to maintain consistency, efficiency, and quality in their operations. A well-crafted SOP serves as a guide for internal and contract staff, outlining the best practices and procedures to complete specific tasks or processes. Here, we provide you with 10 steps to makes sure your SOPs are effective and user-friendly.

1. Be Clear on Purpose and Scope

Every SOP should begin with a clear statement of its purpose and scope. Scope here is critical because you need to consider what phase or aspect of a process you are considering. You need to define a clear start and end point. This starting section should explain why the procedure is necessary, what it aims to accomplish, and the context in which it should be applied. A well-defined purpose and scope set the foundation for the entire SOP and help staff understand its importance.

2. Ensure Comprehensive and Step-by-Step Instructions - Use the right language!

An effective SOP provides detailed, step-by-step instructions for completing the task or process. Each step should be clear, concise, and easy to understand. Be specific about the actions required, the sequence in which they should be performed, and any necessary tools or resources. Avoid using jargon or technical terms without explaining their meaning. Use action verbs i.e. create, transfer, copy. Avoid placing multiple actions in one step. If needed split out actions into an additional step.

3. Use Visuals

We are visual beings. Including visual aids, such as flowcharts, diagrams, or even photographs, can greatly enhance the clarity and usability of an SOP. Visual aids help to break down complex processes into easily digestible segments and can be particularly helpful for rapid learning.

4. Include Clear Roles and Responsibilities

Clearly define the roles and responsibilities of all individuals involved in the process. This should include any specific tasks that must be completed by certain individuals or teams, as well as any necessary approvals or sign-offs. By outlining roles and responsibilities, an SOP ensures that everyone involved understands their part in the process. Roles and Responsibilities can be visually mapped using swim lanes in a diagramming software such as Microsoft Visio or Lucid Charts.

5. Include Compliance Information if relevant

If your SOP involves tasks or processes that have compliance requirements, be sure to include this information. For example in Financial Services, this may involve outlining regulatory guidelines that must be followed. Considering labelling these as 'compliance steps' to ensure high priority.

6. Have a Document Control Section

To ensure that your SOP remains up-to-date and relevant, include a document control section that details the SOP's version number, author, approval authority, and revision history. This will help employees identify the most current version of the SOP and understand any changes that have been made from previous versions. This can be a good reflector of process improvement and agility.

7. Include a Glossary and Definitions Section

Include a glossary or definitions section to explain any specialised terms, acronyms, or jargon used in the SOP. This will help to ensure that all staff, regardless of their tenure or expertise, can understand and follow the procedure.

8. Consider adding Training and Competency Requirements

If you have a well developed staff training and development program and if the process or task outlined in the SOP requires specific training or competency, be sure to include this information. Detail any necessary training programs, certifications, or qualifications that staff must possess to perform the procedure effectively.

9. Introduce relevant Performance Metrics and Monitor SOP Effectiveness

Establish performance metrics and monitoring processes to evaluate the effectiveness of the SOP. This may include key performance indicators (KPIs) and regular audits. KPIs can be split across quality, speed and cost measures for example defect rate, any discovered errors in the process, cycle time i.e. how long it takes to perform an SOP and team productivity. You can also consider elements like staff engagement/feedback and also new hire onboarding/training effectiveness. Well crafted SOPs should speed up the training process considerably. Monitoring the SOP's performance will help identify areas for improvement and ensure the procedure remains relevant and effective.

10. Review and Update Process

Finally, outline the process for reviewing and updating the SOP. This should include a schedule for regular review and the steps for proposing, reviewing, and approving changes. A well-maintained SOP is more likely to remain relevant and effective in the face of evolving industry standards, technologies, and best practices.

For further information on how to improve your operation through effective process and SOP design, email us at hello@envisago.com or book a call with us today.

Compliance and Regulation Standards Every Service Business Should Know.

As a service business owner or leader, you're responsible for ensuring that your business complies with various compliance and regulation standards. Failing to comply with these standards can result in legal and financial consequences, such as fines, lawsuits, and reputational damage. In this post, we'll cover some of the common compliance and regulation standards that service businesses need to be aware of.

Data Privacy Regulations

The most obvious regulation is Data Privacy. Data privacy regulations are designed to protect the personal data of individuals. If your service business collects, stores, or processes personal data of customers or clients, you need to comply with data privacy regulations such as GDPR (General Data Protection Regulation) in Europe and CCPA (California Consumer Privacy Act) in the US. These regulations require you to obtain explicit consent from individuals before collecting their data, ensure the security and confidentiality of their data, and provide them with the right to access and delete their data.

Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Regulations

If your service business deals with financial transactions or transfers, you need to comply with AML and KYC regulations. AML regulations are designed to prevent money laundering and terrorist financing by requiring financial institutions to verify the identity of their clients and report any suspicious activities to the relevant authorities. KYC regulations are designed to prevent identity theft and fraud by requiring financial institutions to collect and verify the personal information of their clients.

Employment Regulations

If your service business has direct employees, you need to comply with employment regulations such as minimum wage laws, workplace health and safety regulations, and anti-discrimination laws. These regulations are designed to ensure that employees are treated fairly and that their rights are protected. If you have a diverse, global workforce, this becomes critical.

Intellectual Property Regulations

If your service business deals with intellectual property such as trademarks, patents, or copyrights, you need to comply with the relevant regulations to protect your own intellectual property and avoid infringing on the intellectual property of others. These regulations are designed to protect the rights of creators and innovators and prevent unfair competition.

Environmental Regulations

If your service business has an impact on the environment, you need to comply with environmental regulations such as waste management regulations, emissions standards, and regulations related to hazardous materials. These regulations are designed to protect the environment and public health. With the focus on the environment, many service businesses pursue carbon offsetting initiatives to reduce their carbon footprint. There has also been a rapid increase in companies pursing B-Corp certification to illustrate their commitment to social and environmental performance. B-Corp has established guidelines and requirements for companies to be compliance to their standard.

Consumer Protection Regulations

If your service business deals with consumers, you need to comply with consumer protection regulations such as advertising and marketing regulations, product safety regulations, and regulations related to refunds and warranties. These regulations are designed to protect consumers from unfair or deceptive practices and ensure that they receive products and services that meet their expectations.

Industry-Specific Regulations

Depending on the industry your service business operates in, there may be specific regulations and compliance standards you need to comply with. For example, healthcare service businesses need to comply with HIPAA (Health Insurance Portability and Accountability Act) in the US which regulates the privacy and security of patient health information. In the UK, the Care Quality Commission (CQC) assesses and monitors the quality of care provided by healthcare service businesses and takes enforcement action against those that fail to meet the required standards. It's essential to stay informed about the relevant regulations and compliance standards in your industry and ensure that you comply with them.

Compliance and regulation standards are an essential part of running a service business. Failing to comply with these standards can result in legal and financial consequences that can harm your business's reputation and profitability. It's important to stay informed about the relevant regulations and compliance standards and ensure that you comply with them to protect your business and your clients' interests.

To find out more and get the necessary support to ensure compliance for your business, book a call with us today.