How Synchronized Manufacturing avoids being an “industry settler.”

Synchronized Manufacturing Technologies (syncmfg.com) swept five individual categories for small EMS firms at the 2007 Circuits Assembly Service Excellence Awards. Vice president Gary Tarallo spoke about the company’s customer service program in a recent interview:

CA: How do you use the data from the SEA surveys?

GT: This information will be used along with the results of our quarterly customer satisfaction surveys to gauge effectiveness of our program and make changes as necessary.

CA: Describe your internal customer service quality metrics. Is it a formal process?

GT: Yes, our survey is set up similarly to the one used for this contest. We use a point system to gauge effectiveness. We also ask for comments that capture topics not covered in the SEAs (for instance, whether they are satisfied with other departments, such as finance/invoicing). These surveys are also discussed at quarterly business reviews. We include some of the same questions. Typically service is fine, but if someone says, for example, that they don’t like the way we are communicating via emails and would prefer phone calls, we accommodate them. Service is custom-tailored for each customer.

CA: How do you gauge the satisfaction of your customers?

GT: We communicate with our customers on a daily basis and can easily glean how happy or unhappy they may be. We manage numerous inquiries from these customers and set expectations on each one.

CA: Do you have regular meetings or does your customer service plan just happen?

GT: We meet on a monthly basis to review customer service strategies, make necessary changes either with communication or efficiencies; for example, our turnkey customers have access to our ERP system (firewall) to review status of open orders and inventory.

CA: What do you do if service levels fall below your standards?

GT: Nonconformances are evaluated to determine the root cause. This is part of employee performance reviews. If there is human error, we need to change process. For instance, if an employee is not using the program created specifically for that particular customer, that employee needs to be notified. (If someone wants to work with us via emails instead of phone calls, for instance.) It’s not a rigid process. We don’t say, “Too bad if you don’t like it.” We are willing to make changes.

CA: How important is customer service to the bottom line? Is it something you can measure?

GT: The time and effort that go into bringing on a “profile” customer is enormous – multiple sales calls, hosting visits, processing RFQs, etc. We place this cost in the $4,000 to $5,000 range; the bigger the OEM, the greater the expense.

CA: What is the length of your business relationship with a typical customer?

GT: Two to three years.

CA: Does your company place greater emphasis on retaining customers or gaining new ones?

GT: Each one is critical to adding value and growth to a company. We continuously look to our “non-customers” for growth. This assists in mapping business, technology and service offering roadmaps. An example would be the PCB layout center we just established. Most companies get caught up in trying to sell more of the same into their customer base. In doing so, they become “industry settlers.” This approach doesn’t provide for a strong value proposition or innovation.