How process management improves service quality in companies

by Veronika Altenbach

BPM
18. March 2024 7 minutes
Wie Prozessmanagement die Servicequalitat in Unternehmen verbessert

In today's business world, where competition is fierce, and customer expectations are high, it's important to provide excellent service quality. Otherwise, you risk being outperformed by the competition. Customers demand not only high-quality products, but also a service that is both efficient and smooth. Efficiency, effectiveness, and productivity are key factors in a company's success. To achieve improvements in these areas, companies should critically examine their processes and optimize their process management accordingly.

Find out how structured process management can help to increase your service quality and improve customer satisfaction.

Process management: what does the term mean?

Process management – also known as business process management (BPM) – involves the systematic identification, planning, documentation, implementation, control and improvement of processes in an organization with the aim of maximizing the performance and efficiency of operational processes. Today, well-coordinated, precisely documented and ideally automated processes play a key role in a company's competitiveness and the achievement of its goals.

What influence does process management have on service quality?

Increased efficiency

Good process management enables unnecessary activities, bottlenecks, and delays to be recognized and eliminated. This makes workflows more efficient, which has a direct impact on service quality. Customers benefit from faster services, which significantly increases their satisfaction.

Business case:

The customers of a medium-sized company that specializes in the sale of household goods often complain about long waiting times for order processing and delivery. The dissatisfaction is clearly noticeable.

Following an internal investigation, it was determined that there were redundant steps in the order processing procedure. Bottlenecks in order processing in the warehouse were also identified, leading to unnecessary delays from order to delivery.

The company therefore decided to implement a process management system to optimize the entire order and delivery process. Duplicate data entry was eradicated, an automated inventory management system was introduced, and a real-time tracking system for customers was implemented to enhance transparency regarding order status.

These measures have reduced order processing time, optimized communication and increased delivery speed. This is reflected in increased customer satisfaction, a higher rate of resales and a reduction in the number of cancellations.

More consistency

Establishing clearly defined processes, for example for staff, ensures that services are provided consistently, according to defined service standards and in a predictable manner. The result is that customers know what to expect and don't encounter surprising challenges. This reliability promotes trust and strengthens customer loyalty to the company.

Business case:

An international hotel chain is confronted with varying service quality at its individual locations. While some hotels receive great reviews, others struggle with negative ones in terms of service experience.

Analyses have shown that the discrepancies are due to a lack of standardization in work processes. Each hotel has developed its own service processes, which leads to different ratings.

To ensure consistently high service quality, the hotel chain has recently introduced standardized service guidelines, from greeting guests to check-out, based on best practices and industry standards. Ongoing staff training ensures the uniform implementation of these standards at all locations.

Hotel guests now experience consistent service across all locations thanks to documented process management, which is reflected in better ratings, customer loyalty and satisfaction.

Significant reduction in errors

The documentation of work processes and the implementation of quality controls play a crucial role in reducing errors in a company's service delivery. Fewer complaints, returns or rework can reduce costs while increasing customer satisfaction.

Business Case:

A software development company that provides customized solutions is receiving an increasing number of customer complaints and optimization requests.

After an internal investigation of the work processes, it became apparent that the development steps were not consistently documented and the quality controls were inadequate. As a result, the software was not working properly and customers were submitting complaints.

The company therefore decided to document the processes of each development phase and to implement stricter quality controls in the form of regular code reviews and tests at various points in the development process.

The introduction of documented work processes and quality controls leads to a significant reduction in errors during software delivery. The error rates and the associated costs have been significantly reduced, as has the number of complaints.

Increased employee commitment

Involving employees in the optimization of processes generally increases their commitment and motivation. Transparent processes give employees clear instructions on how to perform their tasks and what is expected of them. This reduces uncertainty, which has a positive effect on their satisfaction and motivation and ultimately improves the quality of service.

Business case:

A call center that offers a wide range of customer services is experiencing growing dissatisfaction among employees due to rising staff turnover rates and a deterioration in service quality in a market characterized by a shortage of skilled workers.

The company has recognized that many employees complain about unclear instructions and inefficient work processes. These uncertainties affect motivation and have a negative impact on customer service.

To tackle the problems, the company plans to optimize work processes by actively incorporating employee feedback. The introduction of a new CRM system and revised training programs should increase efficiency and employee satisfaction again.

Employee involvement led to a significant reduction in staff turnover and a considerable increase in service quality. Uncertainties in the execution of work have been eliminated and the number of customer complaints has fallen.

Process management: the key to first-class service and superior efficiency

These business cases illustrate how effective process management can be as a tool for increasing service quality in companies. Process management can increase efficiency and consistency and reduce error rates. This not only leads to greater satisfaction among employees, but also guarantees customers first-class service.

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