Business Record - Iowa Biz

When Exceptions are the Rule

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When it comes to customer service, you have to decide where customer service delivery lies in your overall branding and business strategy. Here are three examples:

• Exceptional Service is an accident. This applies to the company who has no idea what their customers expect (they haven't asked), no idea what level of service they are providing (they haven't listened), and no real strategy for what customer service means to their brand, their customer or their loyalty. Our group recently finished a pilot project for a company who has branded themselves as the provider of quality products, but had not given much thought to their customers' experience calling the company. Results of a small customer satisfaction survey and corresponding Service Quality Assessment revealed that their customers were not happy with the level of service they received, and were more than willing to express that the service experience did not reflect the company's brand. When customers were getting good service it was because they were fortunate enough to get a good Customer Service Representative (CSR) on the phone.
• Exceptional Service is an exception. This reflects a company who is committed to providing a minimal level of customer service. The masses can expect mediocrity that will typically not detract from, but certainly won't enhance, the average customer experience. If a customer has a problem and screams loud enough, the company will make an exception. Take a moment to read about and consider the experience of local blogger and PR Princess Claire Celsi with Dell Computers. After a long journey up the customer service escalation escalator, she sums up her observations to Dell's final response:

...there is no apology for the time I've wasted trying to get this situation fixed. And for good measure, they've let me know that making something right and trying to make a customer happy is not something they normally offer. [emphasis added]

• Exceptional Service is the rule. There are certain companies who have opted to take the customer service high road, believing that consistently providing an exceptional customer service experience will differentiate them from their competitors. This makes me think of another client who, over the years, has invested in making sure their inside sales team and regional account managers are providing a consistent, exceptional service experience unmatched by any other company in their marketplace. They didn't start as a great service provider. They took the time to learn what their customers expected, measure what they were actually delivering, and set high expectations for their team. Their steady improvement and high standards have paid off. As a result they have been able outpace the competition, outperform sales projections, and maintain enviable margins throughout the recession while their competitors are going out of business.

My experience is that most company executives will speak about customer service being important to the company and to the brand because it is politically expedient to do so. Let's face it, few executives would have the guts to broadcast that customer service is really not high on their priority list. The proof of a company's commitment to customer service is in the hundreds, thousands, and millions of individual customer experiences that take place each day.

How Do Businesses Weather Tough Times?

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We're all trying to navigate our way through turbulent economic waters. Why do some businesses resiliently sail through with relatively little damage while others find themselves sinking? That's the question Ranjay Gulati sought to answer in the book Reorganize for Resilience: Putting Customer's at the Center of Your Business.

Harvard Business Review recently inteviewed Gulati, whose research found that resilient companies have an "outside-in perspective," giving primary consideration to the customer in every part of their business.

Gulati was surprised how exceptional outside-in companies are:

"When I began this research, I naively assumed that all firms must indeed have an outside-in orientation whereby they put their customers first in all their decisions and actions. After all, that is what business is about. Much to my surprise, I found that this was the exception rather than the rule for most businesses."  

While the "Voice of the Customer" is a buzz phrase tossed about by many companies in today's marketplace, many businesses are struggling to effectively change their inside-out menality. Gulati highlights five "levers" needed:

• Coordination—Alignment of activities, processes, and information across units within an organization
• Cooperation—Alignment of goals, attitudes, and behaviors across units within an organization
• Clout—Assignment of power and decision rights to customer-facing individuals as well as those responsible for integration of activities across units within the organization
• Capabilities—Development of customer-facing generalists along with product specialists
• Connections—Expand the source of inputs and also complementary offerings beyond internal production units to external strategic partners

Gulati's message is a great reminder for all of us. Giving lip-service to being customer-centered is not the same as organizing our business (administratively, organizationally, operationally) around the customer's expectations.

Do You Serve ALL of Your Customers?

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I've been working on an interesting project lately. This particular client has two distinctly different types of customers. The service delivery system has been built to serve one type of customer and that segment of their customer base is relatively satisfied. The other customer segment isn't so happy.

We often speak of customers in generic, generalized terms. We tend to think of "the customer" as if there is one profile that fits every person who walks through our door or calls us on the phone. The reality is that most companies have a plethora of customer types. Your customer base could be segmented into very different and distinct groups. Different customer segments can have vastly different expectations. While you can't please call the people all the time, it's important to know who your key customers are and what drives their expectations.

Sometimes, you discover untapped potential at your own doorstep. Callaway golf looked at their customer base and discovered that women make up only 20 percent of the North America market. They also discovered that their products and service was heavily focused on the male customer. They are working on a line of products "by women, for women" to address what they believe is a customer segment they have largely ignored.

What are the major customer types coming through your door? Which are you catering to? Which are you ignoring?

When in Doubt, Let the Customer Choose

My wife and I stopped for dinner at Famous Dave's the other night. It's one of our favorite spots for a casual bite and we had a pretty average dining experience. When the server brought our check she placed it on the table and said "I wasn't sure if you wanted one check or two. I just put it on one."

It wasn't a problem (double charging me for my drink was a problem, but that's a different blog post). I was expecting one check, but her statement begged the question: "Why didn't you simply ask?"

Customers, in general, like having a say in how they will be served. Giving customers options or asking customers what they prefer is a good thing. I often train Customer Service Representatives (CSRs) who serve customers on the phone and face situations in which an answer may take some investigating. CSRs often find this to be a "deer in the headlights" moment and struggle to know what to do. Do you place the customer on hold? Do you try to make small talk? Do you tell the customer you'll call then back? Do you just leave the customer sitting there in "dead air?"

Why don't you simply ask?

"I'm sorry, Mr. Customer, but I'm going to have to look into this and it is likely going to take a few minutes. Would you like hold or would you like me to find the answer and call you back?"

Asking the question places the customer in a position of control and sends the message that you are deferential to his or her needs and wants. The next time you find yourself wondering what you should do, try asking the customer what he or she prefers!

If a Customer Could Tip You...

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My wife and I just returned home from eating out. While writing down the tip amount for our server at the local restaurant, I was reminded of an experience I've had in training. When training Customer Service Representatives (CSRs) who work in contact centers or jobs that require them to provide service on the phone, I will sometimes ask "if the customer were given an option to tip you at the end of the call, would it change the service you provide on the phone?" The answer I receive has always been a resounding "yes."

As far as I know, no company has figured out how to use an Interactive Voice Response (IVR) system to give the customer a "tipping" option. Nevertheless, it's an interesting question.

I link this anecdote to an experience with one particular client. There were two CSRs who worked at this client who had what I would consider bad attitudes. They approached each call as though the customer should be serving them, not the other way around. I must admit that I'd given up hope that either of these individuals would ever provide quality customer service.

But they both turned it around. When the client stepped up to the plate with a substantial bonus linked to their service quality scores, both reps demonstrated noticeable improvement. The following quarter I recall approaching one of them in a coaching session. "What happened?" I asked with surprise and joy. "You did GREAT this quarter!"

She responded with a familiar scowl and a shrug of the shoulders. "I wanted the money," she said.

While I was personally saddened to think that greed was the only thing that motivated this person to provide good service, I was glad that her customers were finally receiving higher levels of service on a consistent basis. People are motivated differently. Some are self-motivated. Some are motivated by recognition. Some are motivated by competition. Some are motivated by personal gain.

How are you motivating your employees to provide great service?

The Friendly Skies are Listening

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I am a loyal customer of United Airlines. More than 300,000 lifetime miles flown in the "friendly skies" does not qualify me as a uber-road warrior, but I can safely say that I've paid my dues. Through the years my friends at United have provided me with both positive and negative examples on the customer service front. I've tried to be objective and honest when dishing out critiques, and I will certainly do the same with my props. Today, I have to give United a thumbs up because, to their credit, they are listening.

Last week, I flew from Des Moines to Salt Lake City. Weather was bearing down on the Midwest and I prepared for a long day of delays. Sure enough, we were late getting out of Des Moines but I was assured the folks at United would automatically book me on the next flight out of Denver to Salt Lake. As soon as I got to the Denver airport, I went to the Red Carpet Club to double check my connection.

"You do want to go to Salt Lake City today, don't you?" the agent at the desk asked me. "Because they have you booked on tomorrow's flight." It was a simple correction and I had my boarding pass for the next flight out.

Sitting down in the Red Carpet Club to work on my laptop, I pulled up Facebook and updated my status:

Made it to Denver. Missed connection. United rebooked me on a flight TOMORROW, but got it straightened out. Working at the airport.

I didn't think anything of it until the following morning when I found an e-mail from United in my inbox:

Dear Tom:

Please accept my personal apologies for the delay and misconnection when you flew from Denver to Salt Lake City.

You were inconvenienced and this runs counter to our team efforts to run a great airline.  To assure you of our intentions to improve your next trip with us, I'm depositing 9,000 miles into your Mileage Plus account.

       Sincerely,

       Nancy Castro
       Manager Customer Solutions
       Customer Relations

United Airlines is listening to social media, and they are responding. Kudos to Nancy Castro and the team at United. Well done!

Are you listening to what your customers are saying in social media?

You are the "They" to Whom You Refer

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I ordered a television on the phone last week. I found it online, called to place the order for a local in-store pickup at Sears. The ordering process was pretty slick. But when I went to the store to pick up the television, things started to fall apart.

I went to the electronics department and asked the sales associate. "You've got to go to merchandise pick up. 'They' handle those orders," I was told. So, I went to the merchandise pick up and entered my information in the kiosk. The computer didn't have my information, so I was told by the kiosk that an associate would help me and my name was placed on a queue on the computer screen. I had a seat and waited a few minutes. I looked back at the screen and my name had not been moved to the "completed" list. Something was very wrong.

When the associate came out to help another customer, I interrupted and asked about my order. "'They' have been having problems with the computers all morning. It must not have come through. Go to the sales floor. 'They' have better access to the system than we do. 'They' will look up your order number."

Back at the electronics department I was informed that "they" often have problems with the system. To the sales associate's credit, he apologized and assured me that "one way or another you're going home with a television today." The phoned-in order was never resolved in my visit. I had to purchase the television in the store and then call "them" on the 800 number to cancel my original order.

A common response of human nature is to distance ourselves from responsibility and point blame at another person or entity. It happens in customer service all the time. To the customer, however, you are the "they" to whom you refer. As far as I was concerned, my issue was with Sears. The CSR on the phone, the people in IT, the guy in merchandise pick-up and the sales associate were all "Sears" in my eyes. I don't care where the problem lies or who dropped the ball, I want "Sears" to make it right.

World-class customer service operations understand the subtle difference between "they" and "we" in the customer's experience.

Good Service Acknowledges the Customer

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Last night, my daughter and I walked inside the McDonalds in Story City. We were on our way home from a road trip to the Twin Cities. There was no one in line and I walked up to the counter. The seemingly well-oiled machine of workers were scurrying behind the counter. I waited for someone to step up to the register and take my order, but no one did. After a few moments, the manager, who stood a few feet from the register, called for someone to take over register duties.

I waited.

Several workers darted back and forth behind the counter filling drive-through orders and making coffee. The manager walked up and placed a cash drawer on the counter, calling once again for a young man to come take over the register. The young man walked up and argued with the manager why he had to run the register because he was "no good" at it. The manager insisted that he would do it.

I stood on the other side of the counter, waiting.

The young man now took the inventoried cash from an envelope and carefully counted the bills, reconciling them to the report, and putting them into their respective slots.

I watched and waited.

The clerk now inserted the drawer into the register and looked up, surveying the lobby but not making eye contact with me even though I was standing directly across the counter from him. I felt like the invisible man. He then turned to look back at the crew in the kitchen.

"Excuse me?" I said. "Can I place my order?"

The young man finally looked at me. "Yeah. Whattaya want?" he asked.

One surefire way to make your customers feel alienated is to ignore their presence. Yesterday's example came at a fast food restaurant, but I've experienced the same problem at much nicer establishments, as well.

Shift changes happen. People go on breaks. Customers must sometimes wait while service personnel get organized. If your customers must wait on you, make sure you:

1. Acknowledge the customer's presence. Make eye contact, speak directly to the customer and acknowledge that you realize he or she is waiting on you.
2. Apologize. "I'm sorry to keep you waiting," or a similar statement of apology, tells customers that you understand their time is valuable and you regret creating an inconvenience for them.
3. Address the situation. Explain what is happening and how long the customer can expect to wait. "I need to log in to the register. This should just take about 30 seconds." If there is lag time while waiting on the system, you might even begin to address the customer's need: "It will be just a few more moments. While we're waiting, tell me what you'd like to order."

Don't ignore your customers. Acknowledge and connect with them, even in uncomfortable pauses of service.

Service Above Self

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"Service Above Self" is the motto of Rotary International, an organization in which I've been involved over the years. I love the motto because it is at the core of any act of service. Customer service, community service, military service and (you name it) service are all about being focused on the needs of others. Giving priority to what others need, want or expect is at the heart of service.

This is forgotten when we:

• Ignore the customer completely. I recently stood at a counter for several minutes while the clerk finished whatever task she was doing at her terminal. There was no eye contact. There was no acknowledgment I was there. There was no "I'm sorry for the delay. It will be just one moment while I finish this transaction." It was as if I didn't exist.
• Put our convenience ahead of the customer. I hear this when Customer Service Representatives (CSRs) refuse to help customers if the customer hasn't anticipated the necessary information that will help the CSR be more efficient and get their talk time down. "If the customer doesn't think ahead to have all the information I need, they shouldn't expect my help," I've been told on multiple occasions by different "service" reps. I experienced this recently when there was no one at the counter to help me. Finally going on a hunt for help, I discovered the clerk standing by the back room texting someone on her cell phone.
• Focus on industry standards without regard to customer expectation. Standards can be great guidelines, but if you hit the industry bulls-eye while completely missing the customer's target, you've wasted a lot of time and resources. You'd hope that industry standards would have customer expectations in mind, but they can be so process and metric driven that they leave customer expectation and satisfaction out of the equation.

Is your staff putting "service above self" or "self above service?"

Drive-Through Distinction

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I've always believed that the key to great customer service is doing little things consistently, and doing them well. The difference between good and great, that which makes your service stand out, is in the details.

Bruce Temkin recently referenced an article in QSR magazine that provided quality ratings for America's biggest fast food drive-through windows. The research measured how often a restaurant drive-through got the order right. Now getting the order right may be considered a small thing. Everyone makes mistakes, right? Yet, each time the drive-through messes up your order, you make a mental check mark. When deciding where you're going to buzz through for your next lunch, you're likely to remember which company messed up your last order. It becomes a good reason to try someone else.

So, who is best in the drive through department? Here's the list:

How does this jive with your local experience? Who is the best and worst at getting it right here in the Golden Circle?