Archive for June, 2009
Better Customer Service is Not Optional
Providing better customer service is an obvious competitive strategy that creates the platform to achieve success in your market. For that reason, is is almost unbelievable that customer service is so poor from so many businesses. Most business owners I talk to want to provide better customer service. However, their attempts to develop customer service policies and behaviours throughout their business are often frustrated. In this article, we highlight why providing better customer service is not optional if you want to achieve business success and some ways to achieve better customer service, by approaching the topic somewhat differently than you might anticipate.
Provide Better Customer Service by Identifying Unmet Needs
One reason many businesses fail at providing better customer service is that they try to compete head-to-head with their competitors. They take them on at their own game. This strategy is difficult to make work, because of competitor reactions. Both you and your competitor either get stronger at customer service, or someone tries to take a shortcut and ends up undermining the reputation of everyone in the industry. A better approach is to try to identify unmet needs within your market that no competitor is paying attention to. This is a strategy that can propel your success to market domination like no other.
One company that used this strategy and grew from a neighborhood outlet to a world-wide phenomenon was Domino’s Pizza. In a commodity market such as pizza restaurants, where they were getting killed, Tom Monaghan identified a need that no one was paying much attention to – home delivery. At the time, home deliveries were seen as a way to top up the down times when the eat-in restaurant was a bit quiet. As a result, home deliveries were given low priority and often the customer received their pizza order after a long wait, by which time it arrived cold and unappetising.
Guarantee Better Customer Service to Achieve Market Domination
Monaghan saw a way he could provide better customer service by targeting this unmet need. He came up with a strategy to deliver to this market “fresh, hot pizza in 30 minutes, or it was free.” He saw a need and used a powerful guarantee of better customer service to gain a foothold in this market. His strategy was so successful, that the market for pizza grew phenomenally, as he created a whole new market of pizza lovers who preferred home delivery who would not eat at a pizza restaurant. He not only changed his business’s fate from a struggling also ran to a hugely successful multi-national operation, all on the strength of a uniquely audacious guarantee that no one else had the courage to copy.
Achieve Better Customer Service by Selling Them More
One of the disappointing aspects of customer service in many businesses, particularly obvious in retail stores, emanates from the lack of sales skill of most retail sales people. Many business owners and sales people seem to think that selling is the antipathy of providing service. People don’t want high pressure, you say. Absolutely correct. But neither do they want insipid sales people who cannot offer quality service because they can’t think proactively about what customers may need and are too weak to offer additional opportunities to buy when they have a willing customer giving them their attention. This poor service comes at a high cost to both the customer and the business owner, as well as the salesperson if they earn any type of remuneration based on performance.
Better customer service can be achieved by being aware of what else your customer might need if they buy a particular item, and ensuring that your sales people ask if they would like it. McDonald’s made this an art form with the question, “Would you like fries with that?” You need to think about what products or services, or combinations of products and services, go naturally together. Offering these extra items is not high pressure sales tactics. It is better customer service to help someone who needs your product to identify what they want and how they can get them. If you don’t offer these things to your customer you are negligent and uncaring. As long as you offer them without pressure and allow your customer to decide, you are providing better customer service.
Provide Better Customer Service by Building Intimate Relationships
Intimacy is about knowing more about another person than the norm. When you build intimate relationships with your customers, you are get to know them in a way that you can anticipate their needs and provide better customer service. When you are aware of what your customers want and find a way for them to get it, you are not being pushy, as long as you relate to your customer in a way that honors and respects them. These days there are many tools you can use to increase your ability to communicate with customers and get to know their needs and wants. You don’t enhance your ability to provide better customer service by being back-footed and waiting for customers to ask first. Your service levels increase greatly when you let your valued customers know how they can get their special favorites first, or how they can jump the queue to get the newest item that may take their fancy, before it is made known widely to the general public.
Be creative and find ways to develop intimacy with your customers.
Providing better customer service is not difficult if you use your imagination and creativity. Don’t go head-to-head with your competitors and try to out do them where can compete directly against you. Come up with innovative ways to provide better customer service by looking for unmet needs, or selling your customers more, or by getting to know them better. It’s not that hard and the results can be phenomenal.
Who says service is serious? Customer service can be silly too. Take this fun quiz to test your customer service knowledge. You may be a service ace if you both pick the correct answer to each of these ten questions, and understand why these answers are correct.
1. A complaining customer is:
A. Always right
B. Almost right
C. Often lying
D. Always the customer
2. Customers who complain:
A. Had unhappy childhoods
B. Are genetically predisposed to be sourpusses
C. Have trouble in their primary relationships
D. Are doing you a service in identifying what isn’t working in your business or organization
3. The best reward for your customer service representatives is:
A. Earplugs and punching bags
B. Valium or other mind-numbing drugs
C. Recognition and appreciation on your part
D. Anger management seminars
4. CRM stands for:
A. Customers Rarely Matter
B. Can’t Remember Much
C. Communicating Random Meaning
D. Customers Rudimentarily Managed
E. Customer Relationship Management
5. Customers who complain want . . .
A. Something for nothing
B. To be heard and have their experience validated
C. To vent for the sport of it
D. To be made majority shareholders in the company
6. Customer Service departments:
A. Are the afterthought that cleans up messes other departments cause
B. Build customer loyalty
C. Are leaders in understanding customer behavior patterns and market research
7. For a company to be considered service-oriented:
A. It must mention customer service in its mission statement
B. At least 18.3% of its employees must work in the customer service department
C. Its managers must at one time have been CSRs
D. Customer service must be addressed by all departments
8. A Call Center is defined as:
A. The midpoint in duration of a telephone call
B. A revenue sink hole
C. A place where middle-of-the-road calls coexist with liberal and arch-conservative calls
D. A location where complaints and problems are converted into successful saves for your customers and your company
9. Customer Care is:
A. A managed care medical program for customers
B. A nifty alliterative phrase that looks good in company brochures
C. A new program where customers care for themselves
D. A philosophy wherein the customer is wrapped in service even before a problem arises
10. Customer Service Culture is
A. A new form of yogurt where the lid removes itself for you
B. Behavior being analyzed in a Petrie dish for contagions
C. A mythical civilization in which everyone smiles and welcomes you when they meet
D. An environment where customer service permeates the thinking of the entire company
KEY
1. D. Customers are often wrong but they never stop being the customer. Right or wrong they are to be accorded respect and cared for. Focus on the insights their complaint offers.
2. D. Complaining customers alert you to systemic problems before they drive off more customers. Their complaints represent many more customers who may not spend the time to tell you about problems, instead just leaving you for your competitors.
3. C. Your staff deserves and thrive on recognition and appreciation. Take the time to celebrate them collectively and individually. Whether through cards, gifts, surprises, outings and acknowledgements at company functions, let them know how important, valued and appreciated they are to you and the company.
4. E. CRM refers to systems designed to track and cater to each customer’s whims and preferences over a lifetime. CRM is about managing customer relationships over the long haul by attending to their individual needs.
5. B. Complaining customers have several needs. Implicit in their actual complaint is also a need to be heard and their unhappiness acknowledged. Fixing the problem is important. So is letting them know you understand their displeasure and feel for them. One without the other is an incomplete remedy for customer complaints. Don’t forget the emotional component in complaints.
6. B and C. When you solve a problem for a customer you actually build confidence and allegiance. You’ve proven you stand behind your products or service, giving customers a warm and fuzzy feeling of safety and protection. As well, you tap the pulse of the customers. Their complaints and feedback give valuable insight into how well your products are assembled, documented, sold and hold up. Listening to customers tells you a great deal about your company’s products and services (and your competitors’ too) from real life customers. That’s invaluable!
7. D. A Customer Service orientation must transcend the service department. All departments must understand and model good customer service for the company to be considered strong in service. Many problems can be avoided outright by attending to customer service. Why should the customer service department carry the weight of service for the entire company. Don’t operate under the adage “never enough time to do it right but always enough time to do it over.” Get it right at the source, in all departments.
8. D. Make your call center is a shining example of your company’s commitment to its customers. Your center is a visible symbol of your company’s commitment to customer success.
9. D. Customer Care is a philosophy wherein customers are cared for by a company – the entire time they’re customers. Care isn’t just to be administered as a salve for problems. Demonstrate care from the start and your customers will flock to your products and services.
10. D. Customer Service Culture is the infusion of service ideals into every department, from sales, shipping and receiving to legal, human resources and beyond.
One of the major reasons businesses fail today is due to poor customer service. When a retail business is born, its main objective is to gain and build a strong customer base. Many businesses today are successful because of this strong customer base. Businesses advertise on radio, television and newspapers all the time. Huge budgets are spent on commercials. It is not the advertising on television or in newspapers that will retain the customer. It is the ability of management and its staff to retain those customers that will contribute to the success of the business. A bad taste or feeling left with a customer at any time would leave a lasting impression. Therefore, the business must always provide excellent customer service, no matter the situation. It is always important to leave a good impression with your customers. The old adage is correct: The customer is always right!
The impact of customer service is especially noticeable at the front counter. This is the first place a customer goes to make an inquiry and where the customer checks out. It is the last place they go before leaving the retail store. It is said “the first impression is usually the last impression.”
A study was done in June, 2000 by Bain & Company, Mainspring with over 2000 customers in three retail segments: apparel, groceries, and consumer electronic/ appliances. It showed that 10 percent of customers would rather shop online because they believe they would get better and faster service just with the interaction on the internet… no telephone conversation, no long queues at the retail stores.
The study cites that a 20 percent increase in customer satisfaction generates a 5 percent increase in customer loyalty and a 20 percent increase in profits. Bain and Mainspring found that the level and quality of customer support was the top-ranked factor driving repeat purchases by customers.
“Companies that are able to maintain their loyal customers and keep them there with a superior value proposition have a huge built-in advantage over pure plays” said Darrell Rigby, director at Bain & Company. “They need to focus on getting the basics right: superior service leads to satisfied customers; satisfied customers lead to referrals and referrals are the most effective way to build an unmatchable customer base.” The study that was conducted by Bain & Company highlights the following as a way of improving on poor customer service:
Identify your best customer segment and understand their needs precisely. It is important to note that not all customers are profitable. Hence, tailor your offer to your best customers. Make sure to understand what your best customers really need and why they are no longer customers.
Use available technology to improve customer service and management cost: A self served checkout area could help to enhance the service offering to customers, reduce long lines on the checkout areas while keeping costs down. Customers can check-out on their own without waiting for store employees to ring up the sales and finish the transaction ;thus, reducing overhead in the store. (www.retailindustry.)
Tackle company traditions that threaten implementation of service initiative.Some retail businesses have ingrained behaviors and attitudes that hinder delivering superior customer service. Implementing new ideas focused on the customer may be difficult until those old beliefs are buried. Appointing a customer service champion at the board level can help infuse new thinking into the company. Linking rewards to service measures can create some momentum behind the implementation.(www.retailindustry.com)
Retail businesses need to train, train and re-train employees on the best methods of treating customers. It is important to note that when someone walks into a store that there is potential for making money. The employees should try and see how best to help the customer.
Delivering Fast and Friendly Service
Exxon Mobil is an industry leader in each of its core businesses and has an unmatched array of proprietary technologies aimed at increasing the productivity of its assets and employees. The company conducts business in almost 200 countries and territories around the globe. It has established a new definition for world-class scale and efficiency in the fuel marketing business.
There are ways in which a retail business is able to improve its poor customer service. The study that follows is research on Exxon Mobil store #26885. Methods were discovered in how the company was able to improve its customer service.
Exxon Mobil Company operated Retail Store in 2007 and rolled out its tool called the “TRI MASTER III” (Fast and Friendly Service). This tool addresses the issue of customer service starting with the frontline employees who face these customers every day. To help bring this information to the store, the company required all the managers and district managers to undergo the same training. They will in turn train the sales team members to be effective in delivering quality customer service. They were trained in all aspects of customer service. It ranged from the image of the location, clean and attractive facilities, neatly kept uniforms expected from the employees and quality fresh food available from the location.
The tool pointed out 6-steps to customer’s satisfaction which are as follows:
Make the Customer Feel Welcome
Be Energetic and Helpful
Acknowledge Customers in Line
Provide Fast Transactions
Close the Sale Accurately
Thank the customer.
Prior to rolling out the “TRI MASTER III” program, the company had another customer service program G.U.E.S.T:
G – GREET customers with a hello and offer to help.
U – UNDERSTAND if customers voice a concern or need
E – EYE CONTACT when listening or speaking to customers
S – SMILE whenever customers see you
T- THANK customers for their business
The G.U.E.S.T program was a good tool but not effective until the introduction of “TRI MASTER III” and the training of all the employees. There was also a deadline in place by the company to have everyone trained and ready to go. The introduction of the customer service tool, “TRI MASTER III” helped improve the mystery shop results greatly and there was good feedback from all employees.
Customers of every kind of business imaginable these days bemoan the state of customer service. While the global economy and the Internet have given businesses the opportunity to serve more clients than ever before, the trend has also given way to impersonal, lackluster customer service. It’s unfortunate that most businesses today don’t realize that they are regularly losing valuable customers if they don’t focus on providing an exceptional customer service experience.
In most businesses, once a customer begins dealing with the customer service department, he or she is already in a negative mindset. The best customer service representatives aren’t those that simply neutralize the problem. Outstanding customer service representatives take a negative and turn it into a positive that ensures the customer is not only happy, but is convinced he or she has had an outstanding experience – the Wow Factor – that he would not have gotten with any other company.
The key ingredients of the Wow experience are:
• Seamless Service
• Trustworthy Service
• Attentiveness
• Resourcefulness
• Courtesy
• Pro-active Service
Seamless Service means providing everything the customer needs, not just what is required to meet the minimum standards. It’s about making sure that they don’t have to wait and wonder. Customers will appreciate a smooth, seamless process for addressing their needs. If there are several steps needed to take care of their concerns, keep them in the loop – update them by email or with a quick phone call so that they know you are working on the situation and progress is being made. By keeping them abreast of what is going on, you are letting them know you haven’t forgotten about them and that you understand their concerns – reassurance and communication are powerful customer service tools.
Trustworthy Service is essential to retaining customers. Promising a customer anything and delivering nothing is the surest way to not only lose a customer, but get the kind of “word of mouth” bad press that can ruin you. Under promise and over deliver – If you promise a satisfactory solution and then go the extra mile to not only satisfy the customer, but gain their appreciation and “Wow” them, you will get word of mouth that will bring new customers to you.
Attentive Service means paying attention during and after the initial contact. How many times have you contacted customer service and been subjected to an obviously scripted response from the customer service representative? Does it give you the feeling they aren’t really listening, but just trying to get to the end of their canned presentation?
Attentiveness should run through every customer service experience, from listening carefully to the customer’s concerns to following up after the exchange is over to make sure their needs have been met. Listening isn’t just about hearing – it is about understanding what is really being said. The words are just the beginning –what about the customer’s tone of voice? Her mood? Is she disappointed, angry or frustrated? Keying in to the customer’s mood and responding appropriately is essential, and it means not following a script.
Resourcefulness means finding solutions when there appear to be none. Many companies have iron-clad policies that must be followed whenever a problem arises; however, sometimes a customer won’t be satisfied by the “company line” approach. Resourceful customer service representatives know that there is always a way to move beyond the standard procedures in order to make a customer happy. Resourcefulness involves finding a solution when a solution isn’t apparent. This may mean moving up the chain of command before the customer demands to talk to your superior. Companies with excellent customer service also give their representatives some leeway so that they can come up with creative solutions on their own. When a customer senses that you are going beyond the norm to help them, they will feel valued and respected.
Courtesy is a commodity that is becoming rarer every day. It takes so little to be polite but it is becoming a lost art. Say please when you ask a customer a question, thank them for their information and take your time talking to them. Nothing makes a customer feel more devalued than being treated like a number. Use the person’s name, make requests rather than demands and know when to apologize. When something goes wrong for a customer, they want to hear that you understand their frustration and that you are genuinely sorry that they are being inconvenienced. It takes nothing to say, “I’m so sorry you aren’t satisfied and I hope we can do something to correct this.”
Pro-Active Service means not waiting for the customer to come up with a solution that you simply follow through on. A pro-active customer service representative anticipates the needs of the customer and follows through. Don’t wait for the customer to ask you what you are willing to do – anticipate the question and answer it before they can ask. If they call and say they aren’t satisfied, apologize and immediately suggest some solutions. Customers want you to take the lead – acknowledge their unhappiness, offer a solution or solutions and explain to them how you are going to follow through. Pro-Active service means taking the lead, which will reassure your customers that you know what you are doing and that you will follow through.
If you keep these six keys in mind – seamless service, trustworthiness, attentiveness, resourcefulness ,courtesy and pro-active service – you will be able to offer every customer the Wow Customer Service Experience that inspires loyalty and keeps customers coming back for more.
What do these companies have in common, Southwest Airlines, Neiman Marcus, Marriot, Disney, and Enterprise Car Rental? They are all customer service pioneers. Each company has forged a new path through their commitment, dedication, and innovations, to become known as leaders in delivering excellent customer service. Serving the customer is more than some fancy words on their company mission statements. Customer service truly represents the very essence of each company’s’ existence.
These companies, along with hundreds more, have already done the hard work; they have laid the ground work, set the examples, and blazed the trails for other companies to follow. They have demonstrated how to achieve success by serving the customer.
Why then, don’t all companies follow this proven path to success?
Do they not know the core principles these companies follow?
To borrow a concept from the Late Show with David Letterman, this is a top ten list of principles all companies need to implement to achieve service excellence.
Number 10: Focus – The customer should always be the number one focus of any company. All decisions, services, and products should be based upon satisfying the needs and expectations of the customers.
Number 9: Take Action – The best laid plans will never come to life, without action. If you are going to talk-the-talk, then you must walk-the-walk. When companies, which brag about the importance of customer service, fail to deliver outstanding service, customers and employees lose faith and trust in them.
Number 8: Create Happy Employees – Your employees’ beliefs, attitudes and behaviors determine the quality of the customer service provided. The quality of customer service will never exceed the quality of the people who provide it. Happy employees create happy customers.
Number 7: Develop Employees – The three key words in employee development are training, training, and training. Teach your employees how to serve the customer, equip them to serve, and then empower them to serve with excellence.
Number 6: Establish Relationships – Customer loyalty is achieved by having a relationship with your customers. The stronger the relationship, the more loyal your customer becomes. Relationships are built upon trust, communication, and interaction. Every customer interaction is an opportunity to further enhance communication and improve trust.
Number 5: Measure Performance – If you can’t measure it, you can’t manage it. Measuring customer satisfaction, customer feedback, and employee adherence to customer service standards is paramount in delivering exceptional customer service with any degree of consistency. Always inspect what you expect.
Number 4: Build Team Unity – To achieve optimal success everyone must be on the same page, striving for the same goal, aspiring to the same vision, and functioning as a team. Teamwork will always produce greater results, then individuals working alone.
Number 3: Formulate a Plan – Is the care your customers receive by design or by default? Without a crystal clear, well defined, universal set of customer service standards you will leave customer satisfaction up to chance. If you fail to plan, you plan to fail.
Number 2: Commit to Excellence – Customer service is the number one differentiator in today’s competitive marketplace. Having a good product or a low price does not guarantee a competitive advantage or customer loyalty anymore. Commit to installing and fostering a customer-first culture within your company. Serving with excellence is a choice.
And the Number 1 principle all companies need to implement to achieve service excellence is:
Belief – Believe in the power of customer service. Believe in necessity of customer retention. Believe in the relationship between customer loyalty and the growth of your business. Believe that becoming customer-focused not only makes good business sense but it guarantees increased revenue and profit. It has been said,” A belief is not merely an idea the mind possesses, it is an idea that possesses the mind.”
I challenge every company to not only implement these principles, but to have the faith, courage, and vision to move beyond providing excellent customer service to building a reputation as a customer service pioneer.
Some companies make things happen
Some companies watch what happens
Some companies wonder what happened