A Customer Touch Point Management System for Effective Service Communication

Abstract

Objectives: Customer touch point management system (CTPMS) is a service communication management tool used by an insurance company ("the Company") in Korea. This system was originally introduced to improve the quality of service communication; however, it is now operating to prevent customer complaints in advance and to improve customer lifetime value (CLV). This case report is intended to examine the service communication management system currently used in the field. Methods: This case report is a brief single-case study. This study introduces methods used to classify customers and grade customers by calculating customer value. We also review service communications made according to customer classification and grade. Then, we revisit re-purchase and referral topics, which are highlighted in the service-profit chain, together with service activities defined by the CTPMS. Results: Ultimately, the Company's service strategy is embedded in the CTPMS. The Company intends to provide better service to customers with higher CLV, that is, those who contribute more profits to the company. The Company also focuses on preventing potential complaints from attention-required customers by taking preemptive measures. Conclusions: The message that the Company's CTPMS conveys to the management is quite clear: an increase in CLV and the management of those who complain are the most important factors in service communication.