Posts Tagged ‘Services’

We have written in the past about some of the challenges of staffing retailer operations. Given competitive markets and an ample supply of labor, many firms have employed staffing models that may be kindly described as aggressive — although some might prefer to call them abusive (see, for example, here, here and here). In essences, firms want to avoid overstaffing but also don’t want customer service to suffer. Employees are caught in the middle of those goals as employers demand more and more flexibility from them.

But to some extent that has been changing. Labor markets have tightened and regulators have begun asking questions. Consequently, firms have backed off some of their more noxious practices (at least in some jurisdictions). Among the leaders here has been Starbucks. Last year it committed  to posting worker’s schedules at least 10 days in advance and to giving workers more consistent schedules. Further it said it would no longer have workers doing “clopenings” — closing the story one night only to have to be there for the opening the following morning. As the New York Times tells it, the transition hasn’t been so smooth (Starbucks Falls Short After Pledging Better Labor Practices, Sep 23).

But Starbucks has fallen short on these promises, according to interviews with five current or recent workers at several locations across the country. Most complained that they often receive their schedules one week or less in advance, and that the schedules vary substantially every few weeks. Two said their stores still practiced clopenings.


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Suppose you are waiting in line for something. How would you expect the service provider to take people out of the line?

Unless you are at some place like an emergency room where different customers have clearly different needs and different levels of urgency, you might expect that customers are served in the order of their arrival — that is, a first-in, first-out discipline is used. That’s a natural and common assumption (at least in the US). It is also makes headlines like “Have we been queuing all wrong? Lines move faster if the person at the back is served first, study finds” (Daily Mail, Aug 14) or “Danish researchers have an enraging proposal to speed up queues: Serve the last person first” (Quartz, Sep 7) attention grabbing . Here is the crux of the Daily Mail article:

A group of Danish researchers have discovered a rather unexpected solution to the long lines of people that can appear ahead of new iPhone launches or to get into sporting events.

They say serving the person at the back of the queue first can actually make lines move faster – something which may horrify British and Americans who adhere to the strict etiquette of waiting your turn.

Instead it suggests people like the Italians, who often frustrate other tourists with their lack of regard for the order of a queue, may have been on to something after all.

The findings could put an end to traditions which have become almost British institutions such as queuing to get tickets for Wimbledon or the Proms.

So what is going on here? Is serving customer last-in, first-out really the answer to queuing woes? (more…)

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How to get people on to planes is something we have covered many times on this blog. However, it is always interesting when some airline tries something new. That gets us to Delta’s Early Valet (Airlines try to save time with speedier boarding process, Associated Press, Jun 1).

Delta’s Early Valet service will offer to have airline employees take carry-on bags at the gate and put them in the bins above assigned seats. The airline wants to see if its own workers can load the bins faster than passengers.

The service began Monday on about two dozen flights, and that number is expected to rise steadily during June, Delta spokeswoman Morgan Durrant said.

Early Valet will be offered through August on some departures from Delta’s busiest airports — Atlanta, New York, Los Angeles, Detroit, Minneapolis, Salt Lake City and Seattle.

It will be available only on flights that typically have a high number of vacationers. Presumably, business travelers know how to board a plane efficiently. Specially tagged bags will be stowed on the plane before boarding begins, Durrant said.


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The Supreme Court hears a major civil rights case today on same-sex marriage. As you might surmise, there are a lot of folks with a very personal stake in its outcome. Many of those people might want to actually witness history and be present when the case is argued before the court. As Slate tells it, that isn’t so easy (Not All Must Rise, Apr 27).

For many Americans, the arguments in the marriage equality cases will be the most important inflection of the court into the very core of their homes, their lives, and the status of their families. Many of those Americans started lining up Friday, four days before arguments that will take place on Tuesday morning, for a chance to witness one of the most important moments in Supreme Court history.

Many other Americans simply paid a line-standing service $50 an hour to secure a place for them.

Starting Friday, if you or your law firm had $6,000 to shell out, a paid proxy—a company such as LineStanding.com or Washington Express—would arrange to have someone hold your place in line. The fact that some of these line-standers appear to be either very poor or homeless and may have to stand in rain, snow, sleet, or hail so that you don’t have to irks at least some people who feel that thousands of dollars shouldn’t be the fee to bear witness to “Equal Justice Under the Law”—the words etched over the door to the Supreme Court building—in action.

The article goes on to note that because the court hearing room is small and various seats are reserved for guests of the justices, media types and so on only 70 or seats are available for the general public. Yesterday morning, Slate reports that 67 people were already in line and that many weren’t overly forthcoming when asked for whom they were waiting.


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Over the years, we have had a lot of posts on call centers. In some ways, call centers are a marvel of modern operations. They allow firms to serve a large volume of customers efficiently. But what’s it like to work in call center? As 20/20 reports, it not necessarily a walk in the park (Why Customer Service Representatives Might Be Deliberately Making Your Experience Worse, Mar 26).


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Whenever there are stories about Uber or TaskRabbit or any other “sharing economy” platform, the benefit of scheduling flexibility is inevitably mentioned. These firms may not offer their workers (more accurately, contractors) benefits or guarantees of employment, but they allow workers to craft a schedule that fits their own needs. Does granting such flexibility work in a more conventional setting?

Zappos, it seems, is out to answer that question with its call center workers (Zappos is bringing Uber-like surge pay to the workplace, Jan 28). Zappos’ incumbent system had call center agents signing up for their preferred shifts on paper once a quarter based on seniority. That obviously limits flexibility. Further, Zappos (not surprisingly) faces some predictable patterns in its call volume that are challenging to meet. For example, there is a spike on weekday mornings as people call from the East Coast — which is way early at Zappos’ Las Vegas call center. The solution? A bit of Uber-like surge pricing.

[CEO Tony] Hsieh was not available for an interview for this article, but as Goldstein recalls, he asked the Labs team, “‘How do you feel about looking at something like Uber for the call center?’ It was definitely not something we’d actively been thinking about,” Goldstein says.

That conversation sparked the development of what is now known as Open Market—referred to as “Om” internally—an online scheduling platform that allows workers to set discretionary hours and compensates them based on an Uber-esque surge-pricing payment model: hourly shifts with greater caller demand pay higher wages. The goal of Open Market was to create a “free-market system,” Goldstein says, and strike a balance between the rigidness of customer service center scheduling and what the company says is its dedication to giving employees time to pursue other opportunities at Zappos, like extra training. “We wanted the [customer service center employees] to work more flexible hours, eventually 100% flexible, and reward them based on how much or how little customers need them to work,” he says. …

Zappos limited the Open Market pilot to the 213 employees who work the customer service center’s phones. Everyone received at least 10% flexible time, so during a 40-hour week, employees would have four hours to play with. They could choose to not work during those hours or they could fulfill them whenever they liked by tacking them onto the start or end of a workday or by coming into the office on a scheduled day off.

Employees decided when to work with the help of Open Market’s real-time customer service center metrics algorithm and historical data that showed customer demand, as measured by the wait time of the longest-holding customer, and the accompanying compensation rates. The longer the hold time, the higher the customer demand, the more the employees working that shift would get paid.


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When should phone calls go to front-line service personnel and when should they go to a call center? The best arrangement obviously is going to depend on the setting so let’s consider the case of a car dealer considered in a recent Automotive News article (Call center keeps the service bays packed, Jan 23). The dealership in question has two stores — a Honda dealership and an Acura dealership. The status quo had service calls going directly to the service advisers, i.e., the folks who speak to customers when they drop off their cars or call them with news about what problems were found and how much it would cost to fix it. The proposal would route inbound calls looking to schedule appointments etc to a call center instead of the service advisors.

Now, it seems upfront that there are some real benefits of pulling these calls out of the service department. The call center would keep advisors from having to ditch in person customers to take call. It would also allow for some pooling across the stores. However, these efficiency gains are not what sealed the deal for the dealership. Rather, it was the opportunity to gain better control over scheduling.

“We were able to regain control of scheduling appointments in the service drive, and that’s important because we’re only open a certain amount of hours, so we want to load our shop,” says Proctor, managing partner of Metro Honda and Metro Acura in Montclair, Calif. “The service advisers didn’t see it that way.” …

By creating the call center, Proctor took service scheduling away from service advisers. They are often reluctant to book small jobs, such as oil changes and tire rotations, because they earn smaller commissions on those jobs compared with, say, a three-hour brake repair, he says. …

Proctor’s inspiration for the call center came about 21/2 years ago. He was listening to recordings of randomly selected inbound dealership calls, and one especially disturbed him.

“A customer wanted a warranty-repair appointment, and our associate said no appointments were available for three weeks,” Proctor says.

The customer wanted it done sooner. Proctor listened in shock as the service adviser gave the customer a competitor’s phone number to do the work, he says. ..


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