10 best practices for successful service management

Best practices for service management

How companies prepare their service teams can differ a lot. They may have different priorities and goals they want to reach.

Nevertheless, there are some best practices that can generally prove useful.

Best practice #1: Develop a sound strategic direction

If you don’t know the goal, you can’t find the right path. Therefore, the first step is to define a clear service management strategy. This should outlines high level service objectives and related these to business goals. Based on this, it is possible to make an informed judgment about how successfully the current services are working.

Areas in which there is potential for improvement require special dedication in the strategy. This is the case when there is a challenge from either the business or customer perspective.

For example, the support team may help customers with problems. However, they might not explain the product features well enough. As a result, customers have a limited perspective on what’s possible.

This means the company is not taking advantage of up-selling and cross-selling opportunities. It may even risk losing customers who aren’t getting enough value from the offering.

It is important for all key stakeholders to work together on the strategy. They should create sensible and realistic measures. These measures should combine the benefits for the company and the benefits for the customers.

Best practice #2: Set a clear customer focus

The customer should be the top priority for all services. A strategy that company representatives consider useful but does not clearly serve the customer is of little value.

In the best-case scenario, service management corresponds exactly to the needs that customers express. These needs are identified either through direct feedback or indirectly through problems they have experienced. For example, a well-developed knowledge management system can be extremely useful for solving problems.

Customers must also always receive immediate information about issues and maintenance times. Ideally, this transparency should encompass all aspects of customer communication. To ensure that the quality is also right, teams need regular training and access to new developments and trends. This ensures team member growth and awareness.

Best practice #3: Align with standard frameworks such as ITIL

ITIL®️ (Information Technology Infrastructure Library) and other ITSM frameworks provide valuable guidance when it comes to IT service management. Predefined processes, practices, and guidelines help us use our resources well. They also create a strong base for high service quality.

For example, ITSM processes such as service request, incident, problem and change management benefit greatly from applying standards. The ITIL principle of using a configuration management database (CMDB) helps with asset management in many service areas.

The CMDB manages data about hardware and software. It can also contain information on service contracts, customers or service level agreements (SLAs). Regular service reviews for process optimization also pay off.

Best practice #4: Introduce self-service

Self-service gives customers more flexibility and independence. Self-service means that companies offer their customers additional options that are geared towards the reality of their lives. Modern customers no longer want to be dependent on the working hours of the service desk.

An example of providing self-service is when a customer solves a simple application problem by interacting with chatbot from their sofa in the evening.

The self-service options include:

• Knowledge databases
• Frequently asked questions (FAQ) with short answers
• (AI) chatbots
• Community forums
• Independent bookings and scheduling
• Independent creation of product configurations

Best practice #5: Use AI and automation

Artificial intelligence (AI) holds immense potential for optimizing customer service. The main benefits of AI are greater efficiency, time savings and more accuracy. Machine learning (ML) and the handling of big data also enable detailed analyses and an optimized, personalized service.

Practical applications of AI may include:  

• Summarizing ticket content,
• Defining types of services or
• Classify tickets.

Agents also benefit. They may:

• Receive suggested answers to inquiries based on data on frequently asked questions,
• Use sentiment analysis to understand the customer’s attitude and emotions or
• Receive automatic translations.

Workflow automation is frequently used in ITSM too. It saves time, increases productivity and avoids errors. In some cases, process automation makes sense as well.

Best practice #6: Build a knowledge base

Knowledge is key to providing service that customers want. Creating a knowledge base and making it centrally accessible provides external customers with additional and better service options. It also helps internal employees with details about approvals, processes, solutions, and more.

It is important that companies regularly maintain, optimize and supplement knowledge bases. This is because content quickly becomes outdated. Customer requirements also change, especially with constant new developments.

It is also advisable to think about various forms of media. Knowledge content can be perfected and expanded using multimedia, such as videos, in order to maximize its benefits.

Best practice #7: Define KPIs and metrics

What companies want to achieve strategically with the service is an important factor, but it must be measurable. Well-defined KPIs and metrics are needed to measure the achievement of objectives. Doing so provides a baseline for optimizing services in a targeted manner and in line with corporate objectives.

Consider the following as an example:

Company goal: The customer retention rate (CRR) must be increased, i.e. customers should remain loyal to the company.

KPI: To increase customer satisfaction, problems should be solved as quickly as possible.

Metrics: First Call Resolution (FCR; percentage of problems resolved on first contact); Net Promoter Score (NPS) to measure customer satisfaction.

Best practice #8: Maintain continuous improvement

Those who do not improve will be overtaken. This explains why continuous improvement is so important. The principle is linked to a cyclical approach in which services are regularly examined, evaluated and optimized.

The Kaizen principle states that change for the better should take place. Those responsible do not have to strictly follow this principle, but it helps to implement improvements. These may be large or small improvements. They can be done on a regular basis in order to offer customers good, helpful and comprehensive service.

Best practice #9: Pay attention to security and compliance

Data security is an absolute necessity in service management. After all, confidential, personal and sensitive data and information must not be leaked. For example, it is important to comply with standards such as ISO 20000, ISO 27001 and the General Data Protection Regulation (GDPR).

A recovery plan should also be in place for IT emergencies. The best possible incident management can be achieved by using a cyber defense solution.

Regular security checks and precise access management are also a good ideas. These should be done on a day-to-day basis.

Best practice #10: Adapting trends and current developments

The world doesn’t stand still, and customer needs change. Similarly, service offerings shouldn’t always stay the same and should expand as much as possible. This could include new self-service options, AI features or a high degree of personalization.

Trends and current developments include the following:

1. Use of AI features that expand the range of services and provide low-threshold answers.
2. Distinctive omnichannel support so that customers can flexibly choose their preferred channels.
3. Dynamic, multimedia self-service that can be used to solve problems.