Archive for July 15th, 2009
What is customer service? Have you ever stopped to really think about this question? We have trained literally thousands of people and hundreds of organisations in customer service. No matter who the person or what the organisation, the answer to this question is always generic. They will say: “Customer service is about giving customers what they want” or perhaps “it’s about satisfying customers” some times they will say that it is about “making customers happy.”
While at first glance these answers may sound correct, nothing could be further from the truth. Say for example that you ran a restaurant. If a customer were to enter your restaurant and ask for some office supplies would you be able to give the customer what they want? Would you be able to satisfy a customer who was looking for some jewellery if you worked in a hardware store? No, it would be impossible. The best that you could do would be to politely tell the customer where they can go and get Jewry. Obviously, customer service is not about giving customers what they want, or even satisfying customers.
The same is true for the way we give customer service. When we ask the question: what is the most important thing for good customer service, almost everyone we ask will answer: smile. While this may be good in some cases it is not appropriate in all cases. Just imagine if a distressed mother came up to you and told you that she had lost her 2 year old child in your store. Imagine how she would respond if you were to smile at her? Or imagine if a customer told you that he/she slipped while climbing the stairs or escalator in your store and as they explained their excruciating injuries you smiled back at them.
The truth is that customer service is not about practicalities, it’s about principles. The practicalities may change but the principles stay the same. Staff are not meant to smile all the time, to give customers everything they want, or to satisfy all their needs. Staff are meant to promote the organisation and its values. If you want to increase the impact of your customer service teach staff to represent your organisation and its unique traits.
When we teach customer service training modules we first focus on what the organisation values, what it’s all about and what does it want customers to see. Once we have done this, we move on to how to serve in light of these values. This is a very easy way of getting staff to change the way they serve, it produces better results and is a lot more fun to teach.
Here is something you can do to help your staff engage in effective customer service. Take a black/white board and draw a very basic house. Ask staff to take a piece of chalk or the white board marker and to take turns to turn this basic house into your organisation/company. They may add pictures or words to the basic drawing. Some will add words like: quality, professionalism, friendliness, service, money, speed, or simplicity while others may draw things like customers and staff.
Now ask staff this simple question: in light of this picture, what does a good customer service representative do? The participants will now find it easy to see what customer service is really about in your organisation. They may say for example, in light of us being a friendly company we should smile. Or perhaps they will highlight the organisation’s professionalism and explain that it’s professional to stand up straight and to dress appropriately.
Instead of teaching staff practicalities teach them principles and the practicalities will follow naturally.
What is an organization’s “culture?” It is simply a critical mass of the attitudes and behaviors of its people and groups. The fifteen statements below each reflect an important “cultural” reality impacting customer satisfaction and loyalty. They have shaped our customer service program’s success. Do they shape yours? How is your customer culture?
1. T / F: In our organization we operate under the assumption that customers view customer contact persons as “the organization” and representatives of what the organization means to them personally.
2. T / F: We communicate regularly the importance of realizing everyone in our organization has customers: external (“paying”) customers and internal (work group/ inter-work group) “customers.”
3. T / F: We design our processes and train our people around 2 things customers want to know: (1) Do you do what you say you will? (2) How do you handle problems?
4. T / F: Realizing that organizations choose, consciously or unconsciously, to be financially driven and/or customer-driven, we make decisions remembering that organizations working from a short-term, financially driven philosophy are not as effective in service situations.
5. T / F: Since front line persons make most customer service decisions on a daily basis, our top management understands their key role and allows them to inform the organization about customer needs.
6. T / F: We promote the status of front line customer contact people to a position of value and respect—they are not considered the least educated, trained and paid.
7. T / F: We allow our customer contact personnel, not management, to control the quality of the service product.
8. T / F: Management believes in the importance of good service and actively supports it.
9. T / F: We measure customer service results in a way that leads to greater focus on the importance of individual efforts.
10. T / F: We emphasize that customers perceive service to be “good” when positive individual interactions occur—crucial encounters that can be considered “moments of truth.”
11. T / F: “Customer first” behavior is rewarded and encouraged to be repeated.
12. T / F: Customer service skill training is wall-to-wall.
13. T / F: Our corporate culture supports continuous improvement of customer service processes.
14. T / F: “Customer first” attitudes, along with results communicated continually to all employees in simple terms create a climate for quality customer service in our organization.
15. T / F: Corporate goals, policies and procedures reflect a “customer first” mind set, while we foster a rewarding service-focused climate.
YOUR CUSTOMER CULTURE STRENGTH…
13-15 “TRUE” — You are likely experiencing customer (and employee) loyalty and advocacy.
10-12 “TRUE” – Do you have good customer satisfaction scores, but customer loyalty is strained?
Less than 10 “TRUE” — Are you struggling with customer satisfaction, loyalty and brand reputation? Do you have low employee morale and high employee turnover?
One thing I’m passionate about is helping women entrepreneurs create 6-figure businesses, whether that means breaking into 6-figures for the first time, creating a multiple 6-figure year or achieving 6-figure months like I now routinely have (yes, I did say “months!”). I’ve focused on this topic long enough to know what it takes, the mistakes women make getting there and how easy it really can be to achieve once you know a few simple secrets.
Problem is, if you’re struggling or just getting started then the idea of making a 6-figure breakthrough can seem like just a dream.
So, to help you out, I’ve created a simple checklist of what you need to not only make this breakthrough happen for you, but to experience it in your business…fast!
Here’s a simple checklist of what every business owner must put into place to quickly create 6-figures. Remember what I always say: it’s easier to make MORE money than it is to make less, once you know the secrets!
6-Figure Checklist
* Passion
Do you have undying passion for the transformation you create for your clients? Passion will give you energy on the days when you feel like nothing’s working. Tip: remind yourself every day WHY you’re doing what you do.
* Plan
First I read success stories about entrepreneurs who spent months creating their plan, then I read stories about others who “just winged” their way to success. Which is true? They both are!
What I did to first create a 6-figure business, and now a 7-figure business, is design a business MODEL that clearly outlines each product or program I’m going to offer for the next 1-2 years. It’s really a blueprint because it tells me which program or product to offer first, second and so on. By removing the guesswork I’m free to take action.
If you’re only offering 1-on-1 services, or you’re offering a hodgepodge of different programs or products without clearly knowing how each one leads to the next, then you’re likely working too hard and most definitely missing out on opportunities to make more money.
This is why re-designing their business model is one of the first things I do with my Platinum clients. They love it because it transforms chaos and confusion into clarity and simplicity.
* Clarity
Most entrepreneurs have a billion ideas but struggle with creating enough focus to actually implement even a small fraction of them. My recommendation? Get crystal clear on WHO you help, then get just as clear on the situation they find themselves in that you can help transform for them.
For example: while I’m interested in many aspects of marketing, it wasn’t until I focused my passion, energy and attention on the topic of money and pricing that my business took off. Interviews, JV opportunities, speaking offers and clients flowed in.
The same can happen for you. If you need help getting this clear I recommend seeking out a coach who can help you discover your niche. Good news is that the more topic specific you are, the faster and easier your business is likely to grow.
* Courage
If you want a leap in your income then you need to take a leap somewhere else in your business (maybe even in your life, too!). Most women hang back, wanting to know “how it’s all going to work out” before they leap. Sorry, ladies, that’s cheating and it doesn’t work.
But take heart! The more frequently you make a leap such as joining a coaching program, attending an event, learning something new or hiring more team, the more you strengthen your courage muscle. Remember, courage doesn’t mean being fearless. Far from it! What it DOES mean is acting from your heart, even in the face of fear.
Isn’t There More To Creating 6-Figures Than This?
Sure, there are the specific action steps you’ll need to take. But truthfully, if you focus on these four critical steps FIRST, the specific action steps will practically take care of themselves.
Copyright (c) 2008 Drew Stevens PhD
Finding Solutions that otherwise puzzle organizations
Organizations believe that they provide exactly what customers desire. Ask any firm and the Paretto Principle prevails. 80 percent of most organizations believe they deliver exemplary customer service. Ironically, less then 20 percent do. According to research by consultancy Bain and Company, only 8 percent of companies really deliver on customer service.
Our present environment exists with a gap in delivering service. There are numerous reasons for the gap, however, we believe two issues contribute to this gap, a) greed and b) the inability of customer relationships.
Greed Many statements by management consultant Peter Drucker are famous. However, in the book The Practice of Management, Drucker clearly states, “There is only one valid definition of business purpose: to create a customer.” Organizations today are trumped by two fundamental issues- competition and productivity. The focus is so acute that raising revenue, higher profits and increasing productivity all ignore the necessary myopia of customer concentration.
Exemplars of avarice include Starbuck’s, the airline industry and retail establishments. Anytime an organization believes they can achieve higher growth they raise fees, not one CEO or analysts stops to ask what the impact of the client is. Prior to heightened fees, customer remain for two purposes 1) either first mover advantage in the case of Starbuck’s or 2) value such as American Airlines. Yet when fees increase, customers tend to jump ship for cheaper and more appealing alternatives.
The solution for any firm is to thoroughly conduct an impact analysis to determine potential market losses. New revenue means nothing when you lose a core customer base. Customer dissonance cannot be taken for granted.
Customer Relationships Customer connections are very difficult to build- that is to say unless you are focused on your core asset. First, as mentioned earlier, an organizations entire strategy must exist for the client. Strategic questions to ask are, “Who is the customer? Why does the customer buy? What is the value that our firm provides? How do reach disseminate product, service and announcements to our customers? These questions all told focus all beliefs, all values and all attitudes for the company asset. Further, it is imperative to treat the client as such- an asset. Nothing happens, no one gets paid and the electricity does not provide power to the plants unless a customer is involved.
Herein are several techniques to align with your clients-
Refrain from CRM. We do not challenge the power and functionality of Customer Relationship Management. Yet too much resource is placed into these trivial software systems. Stop trying to augment human interaction with software. Just like a political candidate if you desire to press the flesh then do so, do not leave an email to chance.
Interaction. The proliferation of the Internet and technology has taken away the most precious asset of any relationship- interaction. Avatars such as Proctor and Gamble and Southwest Airlines discovered long ago that the better part of customer service is being there! Get off your carcass and stop administering start speaking. Make it a plan to meet with your clients as often as possible.
Enculturation. The entire organization must holistically focus on customer service. Everyone must focus on one thing, why you are in business. Exemplars here are FedEx where the culture suggests, everyone’s employment is based on guaranteed overnight delivery.
Value and Brand. There is little doubt that a housewife buys appliances for service. She buys because of the experience others have had. Speed, cost and service become part of the customer experience relative to value. Cadillac and Coca Cola have become industry standards because of this success. Not many claim to be the Taurus of the business.
Avatars and Advertising. When the service you provide is so strong, your established customer base speaks for you. When the time arrives that prospective clients speak higher than your advertising creating new customer arrivals, your customer gap is immensely narrowed. Crocs the apparel company created a billion dollar entity with little advertising.
Value Again it is so important. What does the customer consider value? The default is price but this is untrue. Price is only part of value. The concept of value is complicated and rather than surmise, the only person to respond is the customer himself. Management must refrain from board meetings and speculation, if your organization desires the response then ask the customer.
Feedback loops. In addition to client visits, ensure success with Customer Briefings, Focus Groups, Interview, 360 feedback and other imperative mechanisms. Customer Service is not one-dimensional and requires that organizations connect the dots between what they learn about customers and what they currently offer to customers. This also includes organizational functions and customer response times.
The roads to customer service and customer loyalty are rocky, uncharted and complex. And, today’s competitive matrix further complicates the issues. There are numerous paths to take and numerous bridges that must be built to close the gaps. However, the most imperative is not discussing matters in the boardroom and leaving the issues amongst the silence. Broken promises are the missing puzzle pieces as they become the keys to future growth. Customer gaps are filled when the culture of the organization from top to bottom, exemplify with admiration and energy an emphasis to a key corporate asset- the customer.