You are in the customer-service business,
to provide goods and service to satisfy
desired customers so that they will
continue to use you and refer you to others
Introduction
Customer service is the business you’re in. Without customer service you have no business. Whether you believe your customer service is good, bad, or indifferent—it can always be improved. Outstanding customer service doesn’t need to be a cost center, but rather a profit center that develops a quality customer base that pays huge dividends in customer loyalty, repeat business, and referrals—that results in increased real profits. The purpose of excellent customer service is to achieve result-oriented customer service.
Perhaps your company has found that lucky niche (the business holy grail) and manufacture or sell a one-of-a-kind product, one that is very technologically advanced, available nowhere else on earth, and your handful of specialty customers all need the product. If that’s the case, you probably don’t need to really worry about customer service until the inevitable competitor pops up—or the market becomes saturated. However, it is a good idea to service the customer now, as you don’t know what the future will bring. For most businesses though, ignoring customer service is akin to ignoring a gold mine at our feet—because customer service can make or break your business. The wonderful news is that great customer service
is one of the biggest bargains of all time, because if doesn’t cost much more (and usually takes less time and effort) than bad customer service. Just imagine that you can get the Mercedes of customer service for not much more than the Kia.
What’s even better is the fact that great customer service isn’t that much harder to deliver than poor customer service. Once you know how, and make the commitment to it, it’s actually pretty simple. Your task is to get the business on track to outstanding customer service—and to keep it that way. Great customer service starts at the top with the owners and then worms its way into all aspects of the business.
Effective customer is not just rah-rah motivational slogans, for example, “The customer is #1,” or “Customer Service is job 1, 2, and 3,” or “The customer is always right.” In the long-term, that’s not going to do you any good. The effect of buzzwords and slogans is fleeting; instead, you need to know how to reprogram the business (or start from the get go) so that outstanding customer service becomes an integral part of doing business—second nature for all employees. Many times it’s not the owner or manager who loses a customer but the lower level “nickel an hour” staff, although the owner or manager can lose a customer just as quickly if not quicker.
Excellent customer service starts with a little pep talk to remind all of us just why great customer service is so critical—together with an understanding of exactly what excellent customer service is and what it entails. A good idea is to look at who’s doing it right, and who’s doing it wrong. Then, evaluate how your level of customer service fits into the spectrum—between the good, the bad, and the ugly. This chapter looks at the customer service business and provides some insights, techniques that work or don’t work, proven practices, and good advice and common sense to help you on the road to excellent customer service.
The New Customer Quest
Some business analysts have said that it can cost up to eight times more to get a new customer, as opposed to increasing sales by selling to an existing customer. With my consulting firm, for every 5–8 jobs that we “pitched” to prospective clients, I was happy to get one new customer. And it took more than just a pitch—it was a costly and time-consuming process.
Pitching a product or service to a new prospective customer can be pretty exciting. The thrill of the chase, travel, wonderful hotels, entertaining in fine restaurants—and there are few feelings that can equate to the rush you get when you land that big, important customer. But stepping back from the adrenaline rush of chasing the big fish, consider whether that is the smartest approach for increasing your business. It is much more expensive to woo and land a new client than to keep and satisfy the ones you have.
A small printing firm that I worked with did a phenomenal sales and marketing job of getting new customers, absolutely tenacious about landing a new account. Unfortunately, once they got that customer in house, they were less dedicated to maintaining those customers, and barely recouped their cost of acquisition before they lost them. This hasn’t put them out of business yet, but it has kept them from being more successful. Eventually, their poor reputation will catch up with them and will make getting new customers more difficult.
Customer service invades every aspect of the business, from obtaining new customers through great pre-sale service, to servicing your present customers so that they continue to reorder and refer you to other quality customers—even when they may not have an order in hand. And servicing the customer after the sale or between sales—excellent customer service never sleeps.
A Fishing Story
One sunny and warm winter day, back when I had other partners in my consulting firm, the other three partners and I were meeting to discuss the state of our company. We were a bit concerned that our bottom line didn’t look better, and we weren’t sure why, after all, we were all bringing in a number of new clients. We sat down to a planning session where we took stock of our business and ourselves. During that soul-searching exercise, we realized that all of us really enjoyed the rush of landing that big client, but none of us were too interested in keeping them once we had them. We found out that not one of us was into maintenance—we all looked for the consultants adventure.
Getting New Customers
Consider what you have to do to get a new customer for the businesses. You have to:
1. Determine whom you want to target.
2. Understand the target.
3. Research the target’s needs and wants.
4. Determine who in the target’s organization is the right person to meet.
5. Call the target person.
6. Arrange a meeting.
7. Travel to the meeting.
8. Negotiate with the target company.
9. Meet again and again; communicate again and again, and so on.
10. Sale is consummated, but profits from this sale will be lower to offset the not insubstantial costs (and do you even know what these costs are?) of getting the initial sale. Of course, the longer the customer remains a customer, the more profitable each subsequent sale becomes—maybe.
Get my point?
Servicing Present Customers
Now consider what you have to do with an existing customer:
1. Contact existing customer.
2. Check on level of service being provided.
3. Work out new level of service to meet both the customer’s and
your needs.
Ultimately, it’s much easier and cheaper to sell to your existing customers. Treat them well, and in addition to their purchases, they may help you in other ways. The following situation shows how an existing customer helped the business to grow.
It’s easier to satisfy a present customer,
than to hook a new one
The Satisfied Customer
A small manufacturing business had a particularly satisfied customer named Stan, who liked to give ideas for new products. Surprisingly, a suggestion of his ultimately took the business into a new and quite profitable line of business. When the owner, Mike Halloran, called Stan to thank him for his suggestion, he asked him why he had bothered. Stan was a nice guy, but busy running his own successful business. Mike couldn’t help but wonder why Stan had taken the time to worry about new products for his business. Mike assumed that it was because of his super salesmanship and great personality. Stan simply replied, “I love doing business with your company…it’s so easy. The other company I buy from is a pain in the … to work with. I thought, and hoped, it was something you could make, and if I could buy them from you it would make my life easier.” Stan also paid his bills on time—actually ahead of time—this is a satisfied quality customer.
At any point in time, a business may have as many as 20–50% of its customers unhappy with the level of service being provided. Stan was a dissatisfied customer with one business who appreciated another company’s outstanding customer service, so he gave them his business. Outstanding customer service produces results, although it can’t always be measured. Stan was great (unpaid) advertising for the company. When discussions of vendors came up, he had high praise for the company, which resulted in new customers. Satisfied customers help your business grow and prosper. Unhappy customers help your business into a slow excruciating bankruptcy.
Quality customers
provide quality profits
Happy customers tell other business people about their positive experience (although not as often); unhappy ones broadcast their displeasure loud and long and often. And who can blame them? Statistically, customers with bad experiences are likely to tell as many as eight other people about that bad experience. So if your customer service people are in a hurry and give poor service to just one customer today, and if you have five customer service staff, that means that in a week, 200 people will have heard of your poor level of service, and in a month that number is 800. I’m afraid to do the math to figure out what it would be in a year. With a bit of effort you won’t be dealing with unhappy customers—at least not as many—and not those gained through your poor customer service.
One unhappy customer
spoils the entire basket
I believe that the vast majority of people want to feel good about their jobs, and even though most employees don’t have careers that involve huge contributions to mankind, every cog in the wheel is important. There is great satisfaction and pride in knowing that the service or product you provide has pleased your customer. Satisfying your customers is the right way to run a business. Everyone—your customers and employees—will be happier.
There’s more to be gained from
increased sales to existing customers,
than continually searching for new customers
Striving for Outstanding Customer Service
Outstanding customer service goes far beyond a smiling store clerk and a pleasant “hello” and an automatic “have a nice day.” Forcing your sales staff to say please and thank you doesn’t necessarily make for quality customer service, but it is a start.
Outstandingly good customer service means providing a level of service so friendly, so efficient and so professional, that your customer’s expectations are exceeded, and that they look forward to doing business with your company again.
In essence, you want a great first date so that you get a second. Perhaps that’s a bit simplistic, but isn’t that what we want—your customers to return? If they like your service, there’s a good chance they’ll be back. Each customer must not be looked at only for the current sale but what their repeat (and referral) business means to your business.
Your customers form their opinion of your business based on more than just employee contact. They’ll judge your service level before they even set foot in your door, or speak with one of your employees. Customer service is much more subtle than that—it is a package of services and attitudes that is delivered by the organization at the very first instant of contact—and at all future contacts.
Customer service can be considered from the following perspective:
1. Is it tailored to the needs of the customers?
2. Is it reliable and consistent throughout the organization?
3. Does it make economic sense?
4. Is it tied to the goals of the organization?
5. Is it static and tied up with rules and policies?
6. Is it unique—does it make your business different?
7. Is there a WOW! factor?
When we talk about customer service, you can see that we’re talking about a really big picture. It’s much more than just a smile painted on the face of the clerk behind the counter—it’s more a basic philosophy that permeates every aspect of your business. If your business policies and procedures are not customer-friendly, then all the chipper salespeople on earth won’t give you great customer service.
Customer-Service Quick List
Here’s a quick list of a few not-so-obvious areas, mainly related to a retail business, that fall under the heading of customer service. Take good notice to those that apply to your business and determine what can be done to make them best practices of customer service.
Parking
Do you have plenty of it? Is your parking lot easy to navigate? How about when it rains, is it full of big puddles? Is parking for your customers most important, or do you have spaces up front by the door reserved for the manager, or “employee of the month?” Do your employees park on the fringes to save the best spots for the customers? Parking lot lighting…is it adequate? Do your female customers feel safe? Do customers feel like they need a flashlight to find their car at night?
Signage
Is it big, lighted (if necessary), and easily readable to passersby? Do interior signs make it easy for customers to find their way to what they’re looking for? Are your signs a victim of overkill—confusing the customer rather than being helpful? Are your sale signs overpowering so that the layout looks like a distressed sale marketplace?
Phone Answering Procedures
Are your customers on hold so long that they could listen twice to the long version of “Stairway to Heaven” before they are helped? Do you have an automated answering system that takes longer than 30 seconds to navigate? If a person answers your phone, do they sound genuinely pleased that the customer has called? Are they helpful or does the customer feel like they are bothering them?
Restrooms
Do they exist? Are they for employees only? Are they well marked? Are they easy to find—not at the corner in the dark? Are they clean and would you use them if you were a customer? Are the amenities such as toilet paper, soap, and hand towels always available? Are the facilities maintained properly and timely? Is the towel dispenser easy to use without water dripping down the customer? Is the restroom also your storeroom?
Pricing Policies
Are items clearly marked? Fairly priced? Do all prices reflect advertised specials, and do you have sufficient quantities in stock? If prices are not physically on the item, does your system clearly display prices to the customer at the time of check out? Are your specials clearly marked on the customer’s receipt? Can the customer easily understand the sales receipt? Do you have an easy return policy?
Merchandise Layout
Is it logical? Are items easy-to-find—by the customer as well as by your employees? No pickles next to motor oil, or diapers next to Tupperware? Does the layout enhance the shopping experience or make it more arduous? Looking over the merchandise is there a WOW! Factor? Are the displays clean, current, and stocked with necessary literature? Can your sales personnel answer the questions your customers have—and easily guide them to the correct item? Do you have the range and depth of products that you should?
Employee Attitude
Do the employees care, or at least act like they care? Are they friendly, without being solicitous? Are they willing to go out of their way for a customer? Do they know your products? Do they know how to handle customer concerns and problems? Are they given the authority to handle those concerns and problems?
Operating Hours
Are they convenient for your group of customers? If your customers are “ladies who lunch,” then 9–5 is fine. If your customers work from 9–5, is your business available to them evenings and weekends? Are your hours established for the customer and not for the owners, managers, and employees? Is the best staff working during the high customer hours such as before work, lunch times, and after regular working hours?
Store Lighting
Is it cheerful and bright? Is the light flattering to your products? Does the lighting feel good, or are even your employees depressed? Does it create
a pleasant ambiance?
Print Size
Print size on packaging and/or instruction sheets…do your customers need a magnifying glass to read the type? The population is aging, small type is no fun, and having to whip out reading glasses doesn’t make anyone feel good! Are your prices and item descriptions clear and easy to read?
Shipping Policies
Are they reasonable and flexible? Do you offer an express option? Do you ship more quickly than your competitors? Who pays for the shipping—is there a policy (i.e., free shipping over a certain amount)? Is your packing adequate?
Is Your Facility Clean and Pleasant?
Would you shop there? Does it invite the customer in—is it warm and friendly? Is your staff helpful and courteous to the customers needs—and not officious or pretentious? Is there an inviting spouses corner for the non-shopper, or does the person need to stand or walk around aimlessly?
Touch Points
“Touch-Points” basically is a phrase that simply means any point at which a customer or potential customer comes into contact with your business. That doesn’t necessarily mean human contact, it could mean the point where they walk up to your front door or look in the window, or where they log onto your web site, or open the phone book to your ad. When you think about these Touch-Points, try to imagine them as actual physical entities—either they are pleasant or they are not. When your customer’s call is answered at your office, is that Touch-Point a pleasant stroke, or a nasty pinch? When your customer looks at your user-friendly instruction sheet, is that Touch-Point a soft pat or a sharp jab in the ribs? Your overall customer-service experience is built upon Touch-Point layered upon Touch-Point. Your goal should be that when a customer thinks about his overall experience with your business, he or she remembers a pleasant massage not a brutal beating delivered by a hopefully well-meaning employee with a smile on his or her face. “Have a nice day!”
There just isn’t enough of what we like to call WOW moments, where we walk out of the store or business and think: “Wow! That was great, those people really want me to buy from them.” When was the last time that you heard from one of your customers that they were just bowled over by your organization? What are some of your WOW! moments? Sharing is great. We’re so quick to complain about bad service moments, but what about your WOW! moments? When I find a business or an employee doing customer service right I always make it a point to let them (and the owner or manager) know so that they can incorporate such best practices into their business. Unfortunately, when I have a bad customer-service experience I tend not to say anything (who needs a confrontation?) but walk out and vow not to do business with them again.
Checklist of Touch-Points
Facility Issues
A. Parking Lot
• Plenty of parking close to entrance?
• Well taken care of?
• Well Lit?
○ Paved?
○ Safe?
○ Employee parking related to customers?
B. Signage
• Big and well-lit?
• Easy to read and see?
• Easy to find entrance?
• Interior signs allow customers to find their way without being overly obtrusive?
C. Phone Service
• Automated system:
○ Does it take a long time to navigate the system?
○ Is the system particularly complicated?
○ Can user complete transaction easily and quickly on his or her own?
○ Length of time on-hold?
○ Do you tell caller how long they will be on hold?
○ Is there appropriate on-hold music or information being provided?
○ Is there a way to by-pass the system and reach an extension number?
○ Is there a way to by-pass the system and get to operator?
○ How easy is it to leave a message during the day, and after-hours?
○ Are there instructions on operating/office hours and how to get to the facility?
• Non-automated system:
○ Does person sound pleased that customer has called?
○ Length of time on-hold
○ Does someone check back with those on hold?
○ Can the operator give clear information resolving user’s issue?
D. Restrooms
• Are they clean?
• Good signage leading to restrooms?
• Safety? No dark corners leading to restrooms?
• Are the entrances on video surveillance cameras?
E. Lighting
• Good and clear lighting?
• Appropriate to product?
• Does it make everyone (customers and employees) feel good or depressed?
F. Layout
• Easy to navigate?
• Makes sense to customer?
Employee Issues
G. Employee Training
• Do they know the products?
• Do they know where to get information that they don’t have?
• Do they know how to handle customer concerns and problems?
• Are they given authority to handle those concerns and problems?
H. Employee Attitude
• Do they care? Are they friendly?
• Are they willing to go out of their way for a customer?
Operations Issues
I. Operating Hours
• Are the hours convenient for your business segments?
• Are they clearly posted and understood?
• If you adjust hours based on season or time of year, is that clearly understood and communicated to your customers?
• If you close at certain times of the year, is that clearly understood and communicated to your customers?
J. Safety
• Safe for customers, including children
• No dark corners?
• Aisles with sufficient room for customers and shopping carts?
• No over stacked shelves?
• No surprise end shelves?
K. Cleanliness
• Is facility clean?
• What happens if there is a spill?
• Do products look new—no dust or spider webs?
• Are products on shelves organized?
Sales and Marketing Issues
L. Displays
• Clear and easy to understand?
• Brochures available?
• Product easily accessible to displays?
• Easy to see prices on display and easy to see which product it corresponds to?
• Are prices also marked on products?
• Print size on display and brochures easy to read?
M. Web Site
• Print size on web site?
• Speed in launching?
• Information before and below the “fold?”
• Information contained?
• Ease of navigating the site?
• Contact information available?
N. Materials
• Understandableness of brochure?
• Print size on materials including yellow page ads?
• Amount of “tech babble” in materials?
Product Issues
O. The Product(s)
• Do you have a range of products?
• Do you have depth in your product categories?
• Do you examine carefully the quality of products before you design/produce/sell your products?
• Do you have plenty of advertised products in stock?
P. Packaging
• Quality and look of packaging?
• Understandability of packaging?
• Clearly states what isn’t included?
• Print size on packaging?
Q. Instruction/Assembly Sheets
• Is it included or does customer have to go to web site?
• Ease of understanding sheets?
• Print size on sheets?
• Is there information for “after hours” users?
R. Shipping
• Shipping policies—are they fair and reasonable for the customer?
• Ease of getting product to customer?
• Do we always look for the least cost for shipping?
• On what basis is shipping cost? Dollars or weight?
• Do you charge a ‘handling’ fee?
S. Return Policy
• Do you stand behind your products?
• Ease of returns—no questions asked?
• Length of time it takes to complete a return and credit the customer?
• How difficult is it for the customer to complete a return?
T. Pricing
• Fair pricing?
• Easy to understand?
• Easy to find prices/clearly marked?
U. Payment
• Is it easy to pay for purchase?
• Does it take a long time to make payment?
• Do you take all forms of payment (credit cards, check, and cash)?
• How do you handle international payments?
Other Issues
V. Support
• Can I find carts, including ones for larger products?
• Can I find employee assistance when needed—in person or on the phone?
• Am I forced to correspond via email and then wait for a response?
• Are my problems and concerns resolved to my satisfaction, timely, and correctly?
• How many times do I have to communicate to get my problem solved?
• Is it just as easy to get out (and pay) as it is to get in?
• Are systems “customer friendly” or for the convenience of the business?
The Golden Rule of Customer Service
It may seem overly simplistic, but if you examine truly great customer service, and distill it to the most elemental level, you will see that it is essentially making it easy for the customer to do business with you.
I like to use a certain so-called discount airline. Sometimes I’ll choose this airline even if the ticket price is a bit higher. It’s not because their employees are friendlier (which they are) and it has nothing to do with making connections (which is not usually done well). What I really like is their cancellation policy. I can change flights with no penalty—in this respect they make it very easy to do business with them.
When you formulate policies, procedures, rules, physical layout, shipping policies, and so on, if you ask yourself “Will this make things easier for my customer?” you will be more likely to make the correct customer-
service choice. It’s hard to go wrong if you keep that in mind—make it easy on the customer. If you take away nothing else but the golden rule of customer service: EASY DOES IT, then you’ll still improve your customer service.
The following points will help you to identify specific ways in which businesses can put EASY DOES IT into action.
Top Ten Things Customers Want
from Your Business
Number 1. Customers Want You to Make it Easy for Them to Do business with You
It’s the golden rule of customer service
Number 2. Customers Want You to Have Easily Accessible Employees
This one’s so obvious, yet everyone here has encountered situations where we have had to scour a store or wait on the line to find someone to help us—or wait on hold because your call is important to them.
Number 3. Customers Want You to Have Knowledgeable Employees
It’s not enough to have staff stationed every 2 feet if they can’t answer your customers’ questions. It doesn’t do much good for a clerk to ask, “May I help you?” (and have this written on their backs) if he or she can’t really help you. Customers not only need to know where to find items, they need to know all about those items, or they need to know where to get the answers. The example below provides an example of good customer service where the employees are knowledgeable about their business. And does that employee with the strange accent really know the business from his or her remote location.
Let’s Talk—More Service Delivery
One of my favorite customer-centered organizations is an upscale food market. If you don’t have such a food market near you, some day when you’re traveling, you have to seek one out in order to see for yourself this unique shopping experience. And experience is the right word because this upscale grocer really delivers that to you every time you walk in their doors. However, in this context, the next time you visit one, plan on spending time asking questions. Go to the wine department and ask them for a good dessert wine. Or ask them for half-bottles of wine and see what they suggest. Looking for a good bread to go with the stew you’re making for dinner, ask the bakery, because they’ll have a good suggestion. Or ask the guy stocking the soup aisle, where the Panko Bread Crumbs are and you’ll get a surprise—he won’t just say go to aisle ten, rather, he’ll stop what he’s doing and take you to aisle ten and show you where the bread crumbs are. And if for some reason, the Panko has been moved, he’ll then find out where it’s been moved to and take you there. He won’t talk about service; he’ll deliver it. Are they perfect—absolutely not. But their level of service helps you forget about less than perfect lighting, over-stimulating shelves, narrower aisles than you prefer and other missteps that might otherwise drive you away from the store—including higher prices than the normal food market.
Number 4. Customers Want You to Have Well-Trained Employees
There’s a subtle difference between knowledgeable and well trained. In the example above, their staff is both. Employees have to be trained in customer service and the company’s business policies. An employee can be knowledgeable about the products, but ultimately blow it because he or she is poorly trained in customer service.
Number 5. Customers Want You to Take Ownership of Problems
“Sorry, that’s not my department,” “I’d like to help you but it’s against our policy,” “Sorry, you’ll have to contact the manufacturer.” I’m sure some of these cop-out statements sound familiar to you. These are time worn phrases of companies that refuse to take responsibility for solving customer problems that they have created. Such a situation is shown below.
Overnight Promises
Bill recently had a package Fed-Exed to him. His “overnight” package was sent on Monday. One week later he got a call from Fed Ex claiming that they had tried to deliver the package Friday morning but the road was too bad. He called the station manager and pointed out that he had received a different Fed Ex package delivered that same morning, and wondered why the second driver couldn’t make it up the road. The Fed Ex employee promised to check into it. He said they would re-deliver on their next delivery day, which was on Friday. Bill pointed out that he paid to have the package shipped “overnight” one week ago because it was urgent. He also requested a refund of the exorbitant extra fee he had paid for overnight delivery. The Fed Ex employee said he couldn’t do anything about that, Bill would need to call the FedEx 800 number. The previous day, when Bill was attempting to track the package using the 800 number he requested a credit and was told they couldn’t handle it—Bill would have to talk to the station manager. Pretty clever.
One of the basic credos of good customer service is that if you promise the customer something you need to deliver. If you can’t deliver, it is the company’s concern to make good on their promise. Avoid the customer run around. Admit your mistake and do what has to be done to make it up to the customer. In the above example, Fed Ex should have afforded a full refund with their sincerest of apologies—without the necessity of having the customer bring such a situation to their attention.
Be Proactive in Your Customer Service
Or You Won’t Get The Chance to be Active
The Ritz-Carlton Story
One of the largest companies to follow the credo of owning the problem is Ritz-Carlton Hotels. If a guest with a problem approaches an employee, Ritz management expects that employee to fix that problem, even if it falls outside their regular job description. No passing the buck.
If you mention to the check-in clerk that you would like goose down pillows in your room, and the hotel is out of goose down pillows, that clerk will tell you that he will get you one as soon as possible…and then, if necessary, he will go to the store, buy a goose down pillow, and deliver it to your room. What’s really amazing is that policy applies whether the problem is the hotel’s fault or not. Think Ritz-Carlton.
There are any number of Ritz stories about employees of the chain who have gotten on airplanes, given away their own shoes, and many others all with a similar theme—taking ownership of a problem to take care of their customer. Ritz further allows its employees to spend up to $---- without management approval to solve a guest problem. Think about that for your business.
Wait a minute, you point out, and rightly so. If I charged what the Ritz charges, I could give that kind of customer service too. Valid point. There is a balance in the cost/customer service equation. But the focus here is that any organization can at the least take responsibility for problems they create for their customers. This will inevitably cause you some headaches, and it will take more time, but you must own the problem, so that it will be easy for your customers to do business with you. And don’t forget to correct the cause of the problem not the symptom, so you don’t spend more time correcting the same problem over and over again.
Number 6. Customers Want You to Value Their Business
It’s human nature; we all want to be loved. In your customer’s case, they just want to be appreciated. Don’t take them for granted—especially not repeat customers. As we’ve studied and worked with clients on customer service, we’ve learned that organizations have a tendency to ignore a problem with a customer, waiting until they’re really upset to try and rectify matters. They wait until the customer has made the decision to switch to a competitor, or even worse after they’ve already switched, to reach out and help—as depicted in the following.
Are You a New Customer?
Here’s how a satellite TV company handled a recent situation. They had been running a huge advertising campaign to attract new customers. They were offering free receivers and special packages, anything to attract new business. A customer called them to request an extra receiver, which they advertised for free, naively assuming that they would be happy to provide a long-time customer with an extra receiver at no cost. Sorry, replied the apologetic phone rep, that offer is only good for new customers. However, if you cancel the service for 3 months, you could then re-subscribe and as a new customer get the free receivers. Did that company’s CEO go to bizarre business school?
Number 7. Customers Want You to Deliver What You Promise
If you advertise that you sell or manufacture a quality widget…make certain that it is. Occasionally you will end up with a defective product, so it’s important to have a fair return policy, you want to make it easy for your customers to get a new one. That shouldn’t be happening too often, however. If your purchasing department (or manufacturing facility) is doing its job, defective products should be few and far between. Don’t make the mistake of thinking that a liberal return policy will make up for an inferior product. It is irritating and time-consuming for your customers to return an item; the best customer service is to deliver what you promise in the first place.
If your staff tells customers that your widget will pare an apple perfectly and easily on the first try, then it had better do just that. When they use their new widget, and it mangles their apples and their fingers, because in reality it required lots of practice to get it right, you will have an unhappy customer. Your staff has given them unrealistic expectations that the product cannot meet. A well-trained staff will eliminate that type of problem. It’s pretty simple. Give your customers what you say you will—and something extra. Don’t promise more than you can deliver. You’ll all be happier.
Number 8. Customers Want You to Meet Their Expectations—and Hopefully Exceed Them
This is a bit similar to delivering what you promise, but this area is subtler. Your promises are overt, defined in your marketing and advertising, while your customers’ expectations may differ. A consumer entering a Sam’s Club to purchase a new TV will have a different set of expectations than he would if he was stopping into Nordstrom’s to make the same purchase. He will expect a different level of facility, sales help, and shopping experience. As long as you provide at least the minimum level of service expected, you’re okay. Deliver more than that level and they’ll really be satisfied. It’s somewhat of a balancing act, so take a look at your customer service “service seesaw.”
Customer service seesaw
As the seesaw moves back and forth, there is always a balance between the level of service and what your customer pays. If you provide them the best service and then charge them a lot (think of Ritz-Carlton Hotels), in most cases your customer is happy, or if not happy, at least they’re content knowing they got what they paid for. Customers are OK with no frills service if they don’t have to pay a lot or you’re selling convenience. If you provide them with the best level of service in an inexpensive cost structured business (think providing a Ritz level of service inside a Sam’s Club), your customer is thrilled. But woe to you if you provide them with a no frills level of service and you charge your customer an arm-and-a-leg. There’s always a link between the level of experience you provide and what your customers are willing to pay for it. Ride the customer service seesaw, but watch out how you end up.
Pricing, facility, depth of product mix, quality of product, and service level are all a factor in determining whether or not your customers’ expectations are met. Every store or business is not a Ritz—or do they have to be. There are lots of consumers who are looking for quality services and products with no frills. It’s when part of the experience is out of sync that customers are unhappy as shown below.
Meeting Expectations
Trudy will shop in the discount clothing store for T-shirts and jeans, and she will also shop in an expensive, “upscale” department store at the local mall. She doesn’t expect the same experience. At the discounter, she’ll have to get that little plastic tag with a number from the fitting room clerk, no one will bring her a different size, and she’ll have to bring the merchandise out of the dressing room to the clerk. She doesn’t mind, that’s just part of the expected experience. She feels like she’s getting a deal on the clothes, so it’s a trade-off. She still has a minimum standard as to what she expects out of the store: courteous sales clerk, clean and fairly well-lighted dressing room, and efficient check out.
At the upscale department store, she expects to pay significantly more, and while she expects the merchandise to be of a higher quality, she also expects her shopping experience to match. On her last visit, the lighting was dim, and the carpet in the fitting room was dirty. She wasn’t happy, and didn’t buy anything. She said it was kind of depressing, everything seemed overpriced, and she didn’t like trying on clothes there. Funny thing is, the dressing rooms aren’t much different at the discount store—the difference is, she expected the dressing rooms at the department store to be better. When her expectations fell short, her experience is out of sync.
Number 9: Customers Want You to Meet Their Needs
What do customers want?
• Products they want to purchase—not what you want to sell them.
• High quality—that minimizes the customer service calls, eliminates merchandise returns and creates real “user friendliness.”
• Availability—when you want to purchase. If you offer a special, make sure you have enough on hand. An item on hand is better than two “rain checks” lost in the drawer or your wallet.
• Reasonable prices—related to quality and value. Some customers are shopping price only, while others will pay more if they get more.
• This is another obvious one, but too often items are out-of-stock or back-ordered.
• You can’t sell from an empty shelf—and if your shelf is empty, your customers may find a competitor with a full one.
Number 10: Customers Want You to Make it Easy for Them
I can’t say this enough! Look at the example below.
Make it Easy for the Customer: An Office Supplier
The following is a summary of the terms and policies of an office supplier:
• Call us: toll free number, 24 hours a day, seven days a week; and talk to an actual person
• Ordering: Internet online (weekly email special offers),
800 number, catalog (with monthly and specific specials),
fax orders—and free gifts
• Choice of free gifts when ordering
• Best available price from any of their specials
• Will match any competitor’s price (with proof)
• Fast shipping (next day in most cities, same day in over 900 cities) and free delivery (orders of $40.00 or more—if less than $40, only $3.92)
• Order placed that day—delivery within two business days—to your door
• Thirteen full service distribution centers around the country
• Thirty-day free trial on anything you order
• One year guarantee on every product you order (technology excluded)
• Handling and processing fee: $1.98 on all orders
• Thirty-day free credit to most businesses
• If you find the item for less money within thirty days of purchase, the company will refund your money plus 10%
• Always a real live person to handle your complaints (if any) any time of the day, any day of the week
Can they do any more to get your business?
How to Lose a Customer Without Really Trying
No company ever sets out to provide poor service—even though we really believe some do. You’re not likely to see motivational slogans posted like “screw the customer” or “go away and leave me alone,” or “can’t you see I’m on the phone,” but at times we’ve all probably had such poor customer service that we’re sure they’ve got those signs posted somewhere in the back. If you haven’t given a great deal of thought and consideration to your customers needs and desires, it’s entirely possible that they may think you’ve got a sign or two like those posted in your office. And it’s even worse when you publish and post in large letters a mission statement such as the “the customer is our business.” “May we help you?” “Have a nice day!”
You may think that your business is manufacturing or selling widgets, but in reality, your business is servicing the customer who is purchasing those widgets. If you get too wrapped up in “widgets” and aren’t obsessed enough with the “widget customers,” you could end up with boxes of widgets—and no one to buy them. But all is not lost, have an inventory clearance sale—at less than the items cost you. Lo and behold you are now in the markdown business—and these are the prices your customers come to expect.
Being in the business of customer service means that everything you do is focused on providing the customer with the best level of service. Look at every task you do, every way that you interact with the customer, and determine if you’re doing it that way because it makes it easier for you and your employees, or if it makes it better and more productive for your customers? But even before we look at service excellence, we need to spend some time considering poor service.
I’m sure that most of you could bang out 15 or 20 pages, right this moment, on examples of poor customer service that you have personally experienced. That’s a sad commentary on the state of American business, but that will give your company a huge advantage if you can learn from rather than emulate the bad apples. The situations below provide some example of customer disservice.
Customer Disservice 1
The Ultimate Shopping Site
Susan is an insomniac, and really likes to do late-night shopping through a couple of the better-known home shopping networks. Her husband Joe tends to shop occasionally for books through a giant and well-known internet shopping site. It’s very upsetting to him when they both order something on the same day, she gets free shipping and he pays for shipping, and his wife’s order arrives in three days, and his takes three weeks. Who do you think has more loyalty to their shopping web site? Who do you think looks for other options before shopping? I’ll give you a clue; it’s not the wife.
Susan is fiercely loyal to her web site. If she wants to shop late it’s the only web site she hits. Joe is still looking for a better option, and you know what, eventually he may find it because some company is going to figure out how to take care of his needs. Susan’s web site understands that the customer wants to be taken care of, and that shipping (cost and timeliness) is just as much a part of customer service as answering the phone quickly and pleasantly. The company Joe deals with just doesn’t get it.
Customer Disservice 2
The Rental Car Shuffle
Bob and Sandy rented a car through a very well known rental car company, who claimed they were trying harder, not at the airport location, but at one of their city offices—with no problems. The problems began returning the car. The city office was open only until 5 PM and Bob was lost at 4:45.
Customer Service error #1: lack of necessary information: only the airport location was identified on their map. Bob only had the city office address. Sandy called for directions and was told they were only a few minutes away and they assured her they would wait. Bob arrived at 5:05, and the office was closed.
Customer Service error #2: lack of communication: it turns out that cars can only be returned to city offices during business hours. There was no mail slot in which to drop the keys. Figuring that a big rental car company must have some other return option, Bob called their toll free number. Their customer service person told him that there were five other city locations, but after putting Bob on hold, told him that all of them were already closed. Bob offered to leave the car in front of their office, locking the keys inside the car. Customer service told him that if anything happened to the car before the next morning, he would be responsible. But the airport location was open all night.
The rental car company made no provision to help customers who really needed their help. Rather than considering how policies could help their customers, they were more intent on creating policies for their comfort but that frustrated customers and drove them away. Were they really trying harder?
Customer Disservice 3
Doing the Airline Two Step
On a recent flight out of Boston, the airline wouldn’t allow the passengers to carry their normal hand luggage onto the airplane. Most passengers could understand that, the plane was one of those little puddle jumpers, and briefcases and rolling pilot bags just didn’t fit well. The flight crew took them just as passengers boarded the plane, and assured everyone they would be handed back on disembarkation. You guessed it; someone forgot to put them on board. All the checked baggage arrived, but the passenger’s laptops, bags with medicines, car keys, business clothes, and items too important to check, were sitting (they thought) somewhere on the tarmac at the Boston airport. Naturally, this flight was the last of the day from Boston, and the next flight in wasn’t due until after two in the afternoon the next day. The next day when passengers called the airline to check on the status of missing carry-on’s; the toll-free number was directed to India. What do you think that airline thinks of customer service?
Customer Disservice 4
The Great Orthodontist
Now we have a great orthodontist—and Bill’s son has a “Hollywood smile.” The receptionist is friendly, the assistants are gentle, and they give free T-shirts or sport bottles with the doctor’s name on it. A Wow! moment—maybe. Sounds like they have great customer service, doesn’t it? Well, it’s good, but they’re missing great because of their business hours. Most parents work weekdays and most children attend school on weekdays. Bill has to drive to his son’s school, go to the school office, sign him out, drive him to Dr. Smiley’s office, return him to school, sign him back in, and return to work. Half Bill’s day is shot, and usually his son has missed something important at school. Obviously this is not an unusual situation. Orthodontists primarily treat children who must be taken to the appointment by parents. Why then is Dr. Smiley’s office open only weekdays during school and work hours?
The business model the orthodontist is using is more in keeping with 1950s America where mom stayed home and the schools understood about kids who missed school for medical appointments. It worked for June and Beaver Cleaver, but times have changed. Dr. Smiley’s service could be better. If another orthodontist decided to open up evenings and Saturdays, he might get the business even if he didn’t give away free T-shirts.
Customer Disservice 5
The Sale Go-Around
Jack and Jill were shopping at the mall department store to purchase some appliances. The store was brightly lit, clean, and well stocked. There was plenty of product info, and the salesperson was friendly and well informed. There were big signs with clearly marked prices, and lots of items were on sale. Sounds like they should get an A+ in Customer Service 101, doesn’t it? Not so fast. In reality, it seems that at this store, every appliance is on a constant rotating cycle of “sale prices.” You would never buy an item at regular list price, because it would certainly be going on sale within the next week or so. It was almost comical, and a real struggle for the salesperson—constantly running back to the computer to check the “sales price calendar” in order to provide the real prices. Here is part of the actual conversation: Jack and Jill: “I see this dishwasher is $1,099.” Salesperson: “Well, actually, it will go on sale for $899 on April 21st, if you want it now, we’ll ring it up at $1,099 and then on April 21st I’ll credit your card for $200.” The poor salesperson was trying to provide great service, but the store wasn’t.
The stores policy of rotating “sales” makes for very clunky shopping. They’re not fooling their customers into thinking that they are getting some special, one-time-only sales price, everybody knows better. What they are doing is showing incredible disregard for their customers. They are making our shopping experience difficult, and they are wasting our time. I’m guessing it’s because that’s the way they’ve always done it or they think that’s the way others are doing it. One wonders what Sam Walton would say about that.
Let’s share some of your favorite dis services. Some of my pet peeves may be yours too. To help you, here’s a list of some possibilities.
• Internet
• Shopping
• Hotels
• Retailers
• Airlines
• Large chains
• Customer service call centers
• Voice mail directories and menus
You get the point—poor customer service comes in all shapes and sizes. It can be very insidious, creeping even into a company that is doing lots of big things right. It’s those “Touch-Points” we talked about. The Touch-Points above left bruises—and lost some customers. An irritated customer is not a good customer.
An unhappy customer is not a good customer,
a happy customer may be a customer forever
Conclusion
Memorizing the Customers Top Ten List and analyzing your business won’t do any good if you don’t set the example. For instance, the surveying firm that sends out the wrong materials to their smaller clients—that is another client’s plat plans. The firm may offer good to excellent service to their big clients, but they will eventually go astray because they have no culture of service. If they did, the incident with their smaller clients was less likely to have occurred, because the employees would have known that every customer was deserving of a certain level of service. An incident like that is actually a great opportunity to set the example. When the owner heard about the small client problem, he should have sent an experienced staff member with the replacement materials immediately—even if they lost money on the client. What a great learning experience for all the employees involved. They would have understood that outstanding customer service is an intrinsic part of the business, becoming ingrained in their culture.
You have the tools and knowledge to elevate your service level, but when the first flush of memos and meetings subside, it will be your attitude and commitment that will keep it flourishing. Your actions and focus will become the example for the culture of outstanding customer service that you want in your business.
Knowing what good customer-service practices consists of is important not only in operating an effective business but also in providing helpful assistance in making the business operate most economically and efficiently. Good to excellent customer service starts at the top that then provides a role model for the rest of the organization. Applying the same good customer-service business practices that you would use in your own organization is a good starting point. With a proper grasp of what excellent customer service practices are and creating that Wow! factor you can help your organization grow from within using existing repetitive customers for additional profitable sales and as a source of referral to others. Let your customers help you develop your business.
You are the starting point
for outstanding customer service
wow!!!