The organizational structure of customer service is an important factor to consider when it comes to providing an effective and efficient service to your customers. It is essential that the structure is designed in a way that optimizes customer service, allowing for optimal efficiency and customer satisfaction. A well-structured customer service organization can help to ensure that customers receive the best possible experience and that their inquiries are dealt with in a timely and satisfactory manner. Furthermore, a well thought out structure can help to ensure that customer service representatives are properly trained and equipped to meet customer demands in a professional and effective manner. In this blog post, we will explore the different elements of customer service organizational structure and discuss how it can help you enhance your customer service delivery.
Why is organizational structure beneficial to customer service?
Customer service benefits from organizational structures because they enhance customer experiences. This is due to the fact that customer service organizational structures create a hierarchy so that staff members understand their job responsibilities and who to contact for assistance. They also set clear expectations for each professional on the customer service team. This management approach can also offer these benefits:
What is the customer service organizational structure?
The hierarchy and roles that a company establishes within its customer service department is known as the customer service organizational structure. Organizational structures for customer service assist professionals in understanding what is expected of them in their roles and which managers and team leads they should approach with any issues. Customer service organizational structures support the development of more effective teams by better defining the hierarchy of a department and assigning professionals to particular roles.
Types of organizational structures for customer service
Customer service departments may use a variety of organizational structures, including:
Functional organizational structure
Functional organizational structure is the most common management structure. Based on job functions, this organizational structure divides businesses into departments. Each department in a functional organizational structure reports to a manager, who in turn reports to the same general manager or supervisor.
For instance, a business that uses a functional organizational structure for their customer service requirements might have a department in charge of customer support and another in charge of sales. While the department leaders would share a manager, sales and support representatives would report to their department leader.
Product-based divisional structure
When a company has multiple distinct organizational structures, it can use divisional structures as an organizational technique. Companies that use product-based divisional structures have various organizational structures for each product they produce.
For example, supermarkets typically offer a wide variety of products. This results in the possibility of a store dividing into departments, each with its own team leaders and organizational structure. One team might handle all customer service related to technology, while another might focus on produce.
Market-based divisional structure
Market-based divisional structures enable businesses to devote various departments and organizational structures to specific customer types, much like a product-based divisional structure does. This is especially helpful for customer service businesses that provide a variety of services and goods. Separate organizational structures for each department allow staff to concentrate on their areas of expertise and provide better customer service.
For instance, a store that houses other small businesses within it, such as a supermarket that houses a small chain coffee shop and a small brand-name make-up department, can benefit from having a market-based divisional structure because each of the clients and customer service agents from these businesses are probably very different.
Geographical divisional structure
An organizational structure known as “geographic divisional” is based on the company’s location. This is particularly popular for chain stores and franchises. Each location of a company has its own organizational structure under a geographical divisional structure. An example of this organization type is chain restaurants. Despite the fact that they are all part of the same business, they each have their own general managers, team leaders, and crew members.
Process-based structure
Companies with organizational structures based on processes organize their management strategy by identifying the various processes within their organization. The job tasks associated with each process in their organization are taken into account, as well as how those processes are connected to and interact with one another. This organizational structure can increase productivity within businesses and free up staff members to concentrate on their areas of expertise.
A restaurant with a from-scratch kitchen is an example of a customer service company with a process-based structure. This implies that one group of experts prepares the food by chopping and portioning the ingredients to make dishes, another group may concentrate on cooking the food, and a third group may be responsible for serving the food and managing customer interactions. Because each team may interact with the others to ensure they deliver the best service to the customers, this organizational structure is based on processes.
Matrix organizational structure
Professionals working in a matrix organizational structure can answer to two or more managers. Decision-making may be more flexible and balanced thanks to this organizational structure. Additionally, it promotes improved communication methods because some departments might collaborate more closely than they would in a conventional organizational structure.
A company that assigns its customer service representatives to particular tasks and teams, where they answer to both a team leader and general manager, would be an example of a customer service matrix structure.
Circular organizational structure
A circular organizational structure is a management hierarchy in which company executives establish a chain of command from the center of the organization and spread their directives outward to further the company’s goals. This is different from a traditional organizational structure, where business executives give managers the authority to give instructions to managers, who then give the instructions to other professionals. This organizational structure promotes better communication and transparency.
For instance, a restaurant may have various teams working on various tasks, such as food preparation, food service, and cleaning, but each team reports to the same manager in a circular customer service structure. That manager may provide assistance to any team in need in order to better advance the goals of the company.
Flat organizational structure
A flat organizational structure restricts the levels of hierarchy to allow for closer interactions between staff and management. This supports the company’s efforts to increase accountability and professional development. Flat organizational structures are especially beneficial for customer service organizations and departments because they enable managers to collaborate closely with staff members who may be able to provide more accurate data for decision-making since they are more accustomed to interacting with customers.
Examples of flat customer service structures are more prevalent in small businesses. A small online retailer might serve as a good illustration of this, with some of its staff handling customer service while others organize and ship orders. Although the business owner and manager are still present, this professional works alongside the other staff members and occasionally consults them for management advice.
Network organizational structure
When businesses work together or have locations with various focuses, they use network organizational structures. While less common for customer service companies, this structure is beneficial to businesses that use independent contractors. Network organizational structures work similarly to divisional structures.
Companies that resell goods from other companies are an example of a network structure in terms of customer service. While staff at the selling business can assist customers with orders, returns, and sales, they will direct them to the original business if they require assistance with product details or flaws.
How to create a customer service organizational structure
Consider these steps if you’re interested in creating a new organizational structure for your business:
1. Choose an organizational structure type
Choosing an organizational structure type for your company or customer service division can assist you in making additional decisions later on. How many leadership positions you need to fill, the chain of command, and internal communication expectations can all be impacted by the type of structure you choose.
2. Identify roles
Try to identify the roles within your company in order to better understand the duties and level of managerial responsibilities each professional has. This includes giving each task that pertains to the regular operations of the business thought and giving it a job title. By studying how each position might interact with others and organizing them according to importance and rank, you can better organize the hierarchy structure by identifying roles within your company.
3. Form specialized teams
Following the identification of roles within your organization, think about how each role relates to create specialized teams. For instance, your business might want to think about assembling a group of experts to handle customer service and returns, while another group focuses on sales. Creating teams gives professionals more assistance and promotes a collaborative environment. Additionally, it organizes professionals more effectively so they can fit into a structure.
4. Establish a hierarchy
The organizational hierarchy of your business may change depending on the structure you select. Establishing a hierarchy helps management professionals understand the extent of their responsibilities and tells them who to report to. Companies can operate more efficiently thanks to hierarchies, which also provide a clear path for career advancement. Establishing a hierarchy within your business is a crucial step in this process because organizational structures heavily rely on a chain of command.
5. Train the teams
Consider investing in training programs that assist professionals in understanding their roles within the organizational structure to ensure efficient and effective teams. Training for teams and specialized roles, like managerial positions, may be part of this. Professionals who have received quality training are better able to carry out their duties and comprehend their obligations. To prepare staff for any potential changes to your daily operations or company policies, think about committing to regular training sessions.
6. Monitor performance
Try to keep an eye on employee and company performance after your business creates an organizational structure for customer service. This entails assessing the degree to which the business and its employees achieved their goals within a given timeframe and keeping an eye on customer and employee satisfaction. Consider maintaining thorough performance logs and conducting customer and employee surveys. This enables you to gather customer and employee feedback to get suggestions on how to run the company more efficiently.
Types of Organizational Structure in management
FAQ
How do you structure a customer service team?
They should possess a range of abilities, including strong communication skills, astute listening skills, and a constant capacity for empathy and sympathy with callers. They must comprehend the value of providing high-quality service and the significance of their role as a key intermediary between customers and the business.
What are the 4 types of organizational structures?
Functional, divisional, flatarchical, and matrix structures are the four types of organizational structures.
What kind of organizational structure is suitable for the service industry?
The best organizational structure for a service company is one where employees can perform a variety of tasks as needed, combining technical and soft skills to collaborate with customers and other employees of the same company.
