Free Articles
For your reading pleasure we have provided below an number of free articles.
The menu below lists the topic categories and number of articles in each category. Click on the Category title to go to that section and select the article you wish to read. To save you time we have included a brief introduction for each article. To read the article click where indicate. (read more...) contained in each introduction. If you would like to print the articles please use the link provided requesting a downloadable version of the article in PDF format.
We hope you will enjoy this selection of poignant articles. We plan to add more as we come across them so come back often to see what's new.
Is there a topic you would like to see and article on?
If you have an article about leadership, customer service and creating customer focus and would like us to post it here, drop us a line. Let us know the topic and your contact particulars. Please do not send the article until we have been in touch with you. Click here to contact us.
Article Categories
Customer Focus and Customer Service (10 articles)
Leadership (7 articles)
Management Development and Supervision ( 4 articles )
Personal Financial Education (1 article)
Customer Focus and Customer Service Articles
To be (Customer Focused) or not to be... What a Question
Most of you will probably recognize this soliloquy from Shakespeare’s Hamlet.
To be, or not to be: that is the question:Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous fortune,Or to take arms against a sea of troubles,And by opposing end them?To die: to sleep;What has this got to do with Customer Focus? Based on the unacceptably high levels of poor or mediocre customer service, prevalent across North America and other parts of the globe, it appears that many companies seem to favor “not to be”. read more...
Why Customer Focus Differentiates
Has this ever happened to you? You're in a hurry. You want to complete your business and the person serving you is preoccupied with something other than serving you. Then when you are served, you might get an insincere apology for the delay followed by the completion of your transaction. If asked to describe this experience you would likely respond "That's typical" or "It's nothing more and probably a little less than I expected." read more...
Customer Expectations vs. Customer Needs
The first rule of stellar service delivery is: Service is all about expectations.
You buy a product; you expect it to work the first time. You go to a discount supplier, you expect the quality to be less than the high end dealer, but you still expect what you buy to work, first time every time. When it comes to products, expectations are pretty clear. People expect a good quality product based on the price they are willing to pay for it. When it comes to service, expectations can get a little fuzzy. When a customer begins ... read more...
FAST GUIDE: 10 Success Factors of Customer Focus
Customer Focus is more than Customer Service. It is an aligned whole-organization approach to customer satisfaction and service, leading to customer loyalty and advocacy. The result is sustainable profitability. read more...
Letter To The Editor
Isn't it curious that, despite all the articles and commentary about the strategic importance of service quality and the empirical evidence which concludes that building customer loyalty through service quality is a profitable long-term business strategy, the service that most of us receive is average at best, and indifferent in most cases. Proof is found in the endless stream of horror stories shared in the press, on the internet and around the dinner table. The scary thing is that this low level of service is typical and when there is a problem, all too often things just get worse. read more...
Shocking Recovery!
"Submitted for your judgment, a business plan. This plan is mapped out to the nth degree. It describes the particulars of how to do business. But what can't be anticipated is the tension that washes over a customer like a dense fog. This is the tension that is inherent in registering a complaint. This particular tension, registering prominently on the anxiety scale, brings a foreboding. It carries with it a premonition of doom and is experienced, unfortunately, too often...in the Service Zone." read more...
Improving the Customer Experience through Customer Journey Mapping
Today’s customers are becoming more demanding and often drive a hard bargain. They utilize multiple channels and touch points to interact with your organization during their life cycle (Customer Journey). If you are serious about differentiating your organization, you cannot ignore the negative impact that inconsistent and piecemeal customer experiences will have on your business. read more...
Using Information to Create Value for Your Customers
Ask most any employee at work today in American business the same question: "What's our biggest problem?" and you're likely to get the same answer: "Communication!" How can that be? Look at the proliferation of technology that has vastly improved the way in which information is sent and received in corporations. Consider the inordinate amount of time we spend during the typical business day in meetings. What about voice mail, e-mail, pagers, cell phones, fax machines and computers? Yes, even with the multitude of communications technology at our fingertips; even with the increased knowledge base and education of the American worker; even with new concepts in leadership and teamwork, most people will tell you the major cause of problems in organizations can be attributed to "communication." read more...
No Theory. . .No Learning: A Requisite for Real Change!
To quote an unheralded Deming phrase... "No Theory, No Learning." Explained, it warns us that unless we fully understand the theory, set of assumptions or thinking that we held true when we created practices and procedures that we use presently, we will be forever condemned to create different versions of what we have always done in the future. The result...no real change, just different manifestations of what we always used to do. read more...
Would You Do Business With You?
If more company presidents and their senior managers asked themselves this question with the customers’ view in mind, many would answer “probably not.” The reason? Customer service. Much has been said, done and written about customer service during the last decade. Millions of dollars have been spent on programs, training and systems. However, the results have been disproportionate and often outright disappointing. In a recent issue of Fast Company, the cover story declare d “B e t r a y e d ! The biggest lie in business is ‘the customer is in charge’… How could an idea so right go so wrong?” read more...
Leadership
Become a Customer-Focused Leader
In my recent article, “To Be (Customer-Focused) … Or Not To Be…” and “Why Customer Focus Differentiates” I offer a number of compelling reasons for the strategic importance of making Customer Focus a critical business strategy.
If you found these reasons compelling or you already knew in your gut that Customer Focus is strategically essential, then your goal must be to create a customer-centric culture throughout your company. If this is the case then you will need to embed customer focus into everything you do. read more...
Qualities of Leadership
This is the first article in a six part series which discusses the Qualities of Leadership. Why six parts? Most people to under time compressed these days and don’t have the time to sit and read at length. On the other hand, everyone can find 3 minutes if they had to. So we decided to divide this series into six three minute “sound bites” if you will.
In this article we will discuss leadership in general terms. Then in the five articles which follow, we will explore the Ten Qualities of Leadership in a bit more detail. read more...
Qualities of Leadership – Part 2: Genuine Respect for Others and Humility
This is the second article in a six part series which discusses the Qualities of Leadership. It builds on what was covered previously so if you haven’t read the first article, be forewarned.
In this article we will discuss in greater detail two of the qualities of leadership: Genuine Respect for Others and Humility. read more...
Qualities of Leadership – Part 3: Honesty and Integrity and Confidence and Courage
This is the third article in a six part series which discusses the Qualities of Leadership. It builds on what was covered previously so if you haven’t read the previous articles, be forewarned.
In this article we will discuss in greater detail the next two of the qualities of leadership: Honesty and Integrity and Confidence and Courage. read more...
Qualities of Leadership – Part 4: Influential and Decisive
This is the fourth article in a six part series which discusses the Qualities of Leadership. It builds on what was covered previously so if you haven’t read the previous articles, be forewarned.
In this article we will discuss in greater detail the next two of the qualities of leadership: Influential and Decisive read more...
Qualities of Leadership – Part 5: Effective Communicator and Core Values
This is the fifth article in a six part series which discusses the Qualities of Leadership. It builds on what was covered previously so if you haven’t read the previous articles, be forewarned.
In this article we will discuss in greater detail the next two of the qualities of leadership: Effective Communicator and Core Values read more...
Qualities of Leadership – Part 6: Continuous Improvement and Physical, Mental and Spiritual Health
This is the sixth article in our six part series which discusses the Qualities of Leadership. It builds on what was covered previously so if you haven’t read the previous articles, be forewarned.
In this article we will discuss in greater detail the next two of the qualities of leadership: Continuous Improvement and Physical, Mental and Spiritual Health read more...
Management Development and Supervision
Hey Coach? Bridging the skills gap one skill at a time
Business Issue
One of our clients passed along this training scenario that paints a strong mental picture: “To illustrate the importance of feedback and coaching of employees, ask for a volunteer from the group. Position the volunteer in a standing position and place a large empty box at some distance behind the person. Place about 20 pieces of wadded up paper within reach of the volunteer. Explain to the group... read more...
Alphabet Soup—How to Become a “New School” Leader
If you pick up a training or human resource magazine these days, you're likely to find at least one article about how to work with, maximize, engage and otherwise lead the "Millennials". Sure it rhymes with perennials, but these people aren't just popping up in the spring, they are with you day-in and day-out in the workplace. read more...
How to Make Employee Training Stick
Untrained employees present a bad image for your company. If your workers understand your products or services but cannot communicate effectively with customers, your business will suffer. If your customers do not get the attention from employees that they deserve, they will take their business elsewhere. And if employees can’t get along with co-workers or work as a team, morale and productivity will suffer. read more...
What we have here is a failure to communicate!
Business Issue
Many people fail to realize their effectiveness as a manager or supervisors stands or fails on their ability to communicate. No matter what organization you’re in, department you lead, team members you have, or person you are...to manage is to communicate. The ability to communicate effectively helps build a well-oiled and productive organization. read more...
Personal Financial Education
Pay Now or Pay Later
Why employee financial education should be a priority
Money — the more you make, the more it takes, or so it seems. This statement applies to employers as well as employees. While most businesses struggle with the challenge of doing more with less, employees struggle with the same challenge and are drowning in debt more than ever. While some debt may be necessary for both employers and employees, too much debt is usually the result of poor money management. Financial education, offered to employees by their employer, can be one of the best investments employers can make. read more...
To Be (Customer-Focused) or Not To Be... What a Question
By Ray Miller
This is the first in a series of short articles about understanding why customer focus is strategically important, what it means to be truly customer-focused and how to create or improve customer focus in your organization. This article presents a simple business case for the strategic importance of creating greater customer focus. . Many excerpts are taken from the book, That’s Customer Focus! We hope you find in interesting and helpful.
Most of you will probably recognize this soliloquy from Shakespeare’s Hamlet
To be, or not to be: that is the question:
Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous fortune,
Or to take arms against a sea of troubles,
And by opposing end them?
To die: to sleep;
No more; and by a sleep to say we end
The heart-ache and the thousand natural shocks That flesh is heir to, 'tis a consummation
Devoutly to be wish'd.
To die, to sleep;
To sleep: perchance to dream: ay, there's the rub;
A popular interpretation of the speech suggests that it is a debate on suicide. Hamlet considers the attractions of death ("not to be"), which he refers “to a sleep”, over life ("to be"), where pain seems unavoidable. But in the end he decides that his fear of possible suffering in the afterlife as opposed to the known evil that is life stops him from actively ending his existence.
What has this got to do with Customer Focus?
Based on the unacceptably high levels of poor or mediocre customer service, prevalent across North America and other parts of the globe, it appears that many companies seem to favor “not to be”. The evidence we have to support this view surrounds us. Everyone of you, that has taken the time to read this article, for which we thank you, has undoubtedly experienced poor or mediocre service personally if not today, than very recently.
If you will allow me a little poetic license, with the first few lines of Hamlet’s immortal speech;
To be Customer-Focused, or not to be Customer Focused that is the question:
Whether it ‘tis better to do what is necessary to reap the benefits of being truly customer-focused
Or maintain the status quo and do nothing but continue to handle customer complaints, put up with customer churn and operational inefficiencies
And by doing nothing?
Commit long-term corporate suicide...
Customer Focus Is Not an Option
Everywhere you turn, Corporate head Offices extol the virtues of service but when it come down to it, most of the time they are really paying accelerated lip service to the importance of service.
This is very curious, particularly when you consider the number-one reason why that small number of service leaders, you know, those few companies where the service is almost always really great, consider customer service a.k.a. customer focus to be a critical business strategy.
What is the Number 1 reason you ask?
Customer Focus is a Profit Strategy!
This happens in a couple of ways. Truly customer-focused companies have loyal customers. Loyal Customers:
buy more,
cost less to serve because they know your processes,
tell you when things go wrong so you can fix the problems and
tell their friends, family and associates about how great you are and as a result you get more customers.
Also, customer-focused companies are more productive. Employees are motivated, and perform their jobs more effectively.
Re-work, duplication of effort and mistakes are significantly reduced. These all cost you money in terms of time spent, money spent, loss of productivity and loss of business.
Your turnover also reduces so you keep your staff longer and don’t experience down-time, productivity losses and employee morale related issues.
If you are still not convinced, consider the following:
It’s 5 times more expensive to attract a new customer than to keep an existing one.
It is safe to say that it is far more profitable and far less costly to keep the customers you have by building their loyalty, than it is to keep replacing them with new customers.
Determining what it costs to acquire customers is a bit intangible for most people. As you can imagine, at lot goes into getting customers to walk into your place of business or call you. Advertising, merchandising, promotions, premises expense, phone systems, salaries and so on are costs associated in part with getting customers.
Someone has to pay for this. Normally payment comes through the proceeds of revenue you get from the sales of your products and services. Sometimes we tend to take this for granted. Research has proven that once you have a customer, your cost of keeping him/her drops dramatically over time. When you lose a customer you will inevitably incur a higher cost to replace the one you lost.
Assuming your cost to acquire a customer is $250 and based on the fact that it is 5 times more expensive to acquire a new one, your new customer acquisition cost would be $1,250 for each new customer required to replace one that defected. Based on the example above, assuming you lost 20% of your customer base, the annual cost to replace these customers would be $62,500. Over five years this cost would be $312,500 and you would have turned over all your customers in that period. Can you think of any better uses for the $312,500?
About 75% will do business again if the problem is resolved to their satisfaction.
90 to 95% will do business again if the problem is resolved on the spot.
Since mistakes are guaranteed to happen, how you recover from these mistakes will significantly impact on whether the customer will do business with you again. It is important to note that research suggests that if you recover well, your customers will stay with you. The faster you recover, if you can resolve the issue “on the spot”, your customers will be impressed and in all likely-hood reward you with their continued business.
Customers are willing to pay for quality service.
In a series of polls we conducted last year with about 1000 course participants, we asked where would you prefer to spend your money? The results compare very favorably with research we have reviewed that suggests that the vast majority -70%, of customers are willing to pay for high quality service. Obviously price is a variable, but service is a constant.
An increase in customer loyalty will have a direct positive impact on your bottom line.
Harvard Business Review conducted research which reveals that a 5% increase in customer loyalty can result in a return of 25% to 125% directly to the bottom line depending on your industry. It is safe to assume that investing time and resources to retain even a small number of your clients would pay for itself. You can do the math. Be conservative and take your gross profit and increase it by 25%.
The cost of poor service has a direct, negative impact on your bottom line.
Consider the time and expense associated with fixing problems, dealing with customer concerns, replacing product, re-working reports, and so on. Research from TARP (Technical Assistance Research Programs) indicates that, based on your industry, the cost can be significant.
Pick one of these two and do the calculation.
Wouldn’t you like to have this as profit, rather than as an expense?
The financial gains associated with creating a customer-focused organization can be substantial and well worth the effort.
To quote our friend Hamlet once again
To sleep: perchance to dream: ay, there's the rub;
In today’s highly competitive market place we really cannot afford to take the easy way out. Creating customer focus takes commitment, at all levels of your organization, a comprehensive strategy which targets leveraged actions which will positively impact customer perception, and the will, fortitude and financial support to make the changes necessary to be truly Customer-Focused.
Ray Miller is Managing Director of The Training Bank, a Training and Consulting firm specializing in Customer Focus, Service Improvement, Leadership and fully customized training solutions. He is also co-author of the book That’s Customer Focus.
You can get more information about That’s Customer Focus by visiting www.thatscustomerfocus.com , www.thetrainingbank.com or www.cantrainonline.com
If you would like a pdf version of this article, please click here and we will send you one.
You can also find this article published at these fine web sites
http://www.articlebiz.com/article/65735-1-to-becustomer-focused-or-not-to-be-what-a-question/
http://ezinearticles.com/?id=580081
Why Customer Focus Differentiates
By Ray Miller
Has this ever happened to you? You're in a hurry. You want to complete your business and the person serving you is preoccupied with something other than serving you. Then when you are served, you might get an insincere apology for the delay followed by the completion of your transaction. If asked to describe this experience you would likely respond "That's typical" or "It's nothing more and probably a little less than I expected."
Welcome to the world of the average consumer.
Most people will probably tell you that good service is just common sense. They would also invariably say "For something so common, it sure is hard to find!" Edward R. Murrow said it very well: "What is obscure, we eventually see. What is obvious usually takes a little longer."
Research from a litany of reliable sources tells us that the primary reason that customers switch their loyalty from one company to another, in the range of 40% to 68%, is because of a perceived attitude of indifference on the part of the service provider. Sure, some leave because of price, or product quality, or other personal reasons; but the vast majority leave because of Poor Service.
These days, customers are really in the driver’s seat. The options and choices of similar products at similar prices at similar quality levels are greater than ever.
Advances in technology, reductions in production time and access to global distribution mean that products and services can be duplicated and customized faster than ever before. And your customers know this!
Consumers have more choices than ever before. This creates an interesting challenge. How do you create value when customers today are not seeing much difference in the choices they are offered?
Customers tend to look at value from four perspectives:
the Price of the product or service,
the Quality of the product or service,
the degree of Innovation offered by the product and
the Service provided to customers.
The quality of products continues to improve universally and competitors have developed the ability to duplicate even the most complex of those products. Innovation attracts younger consumers but no sooner do we see one innovation, than someone else comes along and clones it plus adds a few more bells and whistles.
Consider the evolution of the flat screen LCD TV. A couple of years ago, few could afford such a luxury item. Now there are LCD TVs to fit a wide range of budgets. And in addition to the traditional manufacturers of televisions, it seems that any one who manufactures computers also has their own LCD TV.
Developing a competitive advantage based solely on product quality and/or innovation is very difficult. And sustaining it is very expensive. You will also find that there is more price parity today than ever before. Very few companies can compete for long using price as a differentiating factor. By shifting your emphasis to service quality, you will find the greatest room for differentiation.
For most companies, customer loyalty is the key to future profitability and growth. Corporate newsletters, national periodicals, and most executive speeches are peppered with a litany of examples demonstrating the relationship between customer loyalty and profitability. In almost every market we've learned that retained customers:
Are less expensive to serve because they know their role in the process.
Tend to lower marketing costs.
Often purchase more over time.
Are open to purchasing new and different products as they are offered.
Clearly, customers value service and whether they get good service or not, they expect it. If they don’t receive service at a level that meets their expectations, they will go elsewhere until they find it. Whether the economy is on the down swing or the upswing, no one can afford to lose customers.
Many companies still deliver lousy, inept, shoddy service and even more deliver only average service.
This creates a unique opportunity for those who dare to be different.
Simply stated:
Companies who differentiate themselves through their service have a distinct competitive advantage.
Ray Miller is Managing Director of The Training Bank, a Training and Consulting firm specializing in Customer Focus, Service Improvement, Leadership and fully customized training solutions. He is also co-author of the book That’s Customer Focus.
You can get more information about That’s Customer Focus by visiting www.thatscustomerfocus.com , www.thetrainingbank.com or www.cantrainonline.com
If you would like a pdf version of this article, please click here and we will send you one.
Customer Expectations vs. Customer Needs
By Ray Miller – An excerpt from That’s Customer Focus.
The first rule of stellar service delivery is: Service is all about expectations.
You buy a product; you expect it to work the first time. You go to a discount supplier, you expect the quality to be less than the high end dealer, but you still expect what you buy to work, first time every time. When it comes to products, expectations are pretty clear. People expect a good quality product based on the price they are willing to pay for it. When it comes to service, expectations can get a little fuzzy. When a customer begins a relationship with you he or she already has a specific set of expectations. These expectations are based on their perceptions of you, your company and your industry. They are formed through personal past experience, and the experience of others with whom the customer interacts.
Consider the last time you went into a self-service gas station. What did you expect? Other than the pump to be working, not much else right? After all - you are doing all the work.
You have the opportunity to Satisfy, Dissatisfy or Impress–and two of these are bad. Delivering below expectations is obviously bad, but in the context of creating loyalty, so is simply satisfying customers, because they are getting nothing more or less than they expect.
Creating customer value and loyalty comes from consistently exceeding expectations.
Prof. Benjamin Schneider and Prof. David E. Bowen published an article called "Understanding Customer Delight and Outrage".
Delight and outrage?
That may sound a bit melodramatic but this concept is critically important to providing basic customer service. Consider this hypothetical bell curve measuring the quality of service delivery in general:
Basically, most service falls into the median of the curve - the take it or leave it level of service. If you provide this level of service the customer will be satisfied.
You at least met their expectations. Schneider and Bowen actually break the bell curve distribution into four levels along a continuum:
Customer loyalty is the degree to which customers will patronize your business and your business alone because you've developed or created an emotional bond with them. You've gone beyond their expectations and addressed something more innate - their emotional needs as a consumer. Customers have come to expect fast, friendly service. They expect to get an answer to their questions. They expect you'll answer their call promptly and return their messages. Do those things well and you'll be in the game.
But will you win their loyalty? Not necessarily. If you fail, have you lost them forever? Again, not necessarily.
Research shows customers are willing to accept some failure in terms of these expectations. Fail continuously and that's a different story. This is the "ambivalence" part of the model. Next time they need your product or service they may, if it's convenient, patronize your business. But they won't seek out your business purposefully. To do that, they must be delighted with your service. They must be so impressed with your service that they become a dedicated follower.
Schneider and Bowen refer to these customers as "apostles". They will sing the praises of your business to friends, family and coworkers.
At the other end of the spectrum it's possible to so utterly offend the basic needs of your customers that they'll willfully take every opportunity to sabotage your business. They become a terrorist according to Benjamin and Bowen. They'll tell every person who'll listen about the time your business, yada yada yada. Each time, they're likely to embellish the story.
So what creates such an extreme emotional reaction to service in some customers? According to Schneider and Bowen these reactions occur when you surpass the needs of a customer (delight) or you offend those needs. Not just fail to meet them - you (in the mind of the customer) intentionally deprived them of those needs.
What are these powerful dynamics?
Deprived of equity / justice
Lack of respect
Deprived of equity / justice
Customers want to be treated fairly. They want to know that the service and product they receive is as good as that received by any other customer. Consider a study done by a consumer advocate group. They asked samples of airline passengers from numerous airports what they'd paid for their ticket. They found less than 10% of passengers paid the same price for their ticket even though they flew from the same city. The results incited outrage among travelers who saw no justification for paying more, when they had received the same seating and service.
Equity and justice is even more at issue when companies resolve customer problems. At times service or product experience is so bad customers will seek compensation for their time, effort and inconvenience. A participant in one of our customer service workshops shared the following:
."I purchased a large screen TV from one of those audio-video-electronics mega stores. The first one just did not work so we had to bring it back. The second one, which we had to wait two weeks for, had a large crack along the bottom of the screen. Again, we didn't know until we unpacked it. I'd already lost a day of work going to pick it up and unpacking it. When I brought it back they tried to charge me $37.00 because I returned it without the box. It was destroyed unpacking it. I was stunned. Even after explaining the circumstances to the retail associate he made me talk to the store manager who acted like he was doing me a favor waiving the charge."
Equity and justice means making customers feel they're getting a comparable service and product at a fair price. It also means problems are resolved to their satisfaction and that companies consider the cost of the customer's time and inconvenience when making amends.
Lack of respect
Nothing is more basic and elementary to effective service than the need for customers to feel respected. In fact, studies show merely respecting customers does not distinguish your business or service. That's because customers expect it. It's when they perceive a lack of respect that things get volatile.
For example:
Rachael brought her car into a repair shop to get new tires put on. After looking the vehicle over the mechanic recommended new brakes. Rachael was puzzled since she hadn't noticed any problem with the brakes. In fact, she had gotten it inspected just two months earlier. "Well they don't look 'em over the way we do." He rattled off some automotive terms to convince her. Rachael was still hesitant. "Why don't we call your husband," he said. With that Rachael told him to put the tires back on her vehicle - she'd be taking her business elsewhere.
Respect means treating customers the same - regardless of gender, race or age. It means listening to the customer's problem and responding in an empathic tone. It means your non-verbal behavior demonstrates concern and attentiveness.
When it comes to service, clearly understand what it is your customers want, expect and need and shape your people and processes to deliver a level of service which reflects these.
Ray Miller is Managing Director of The Training Bank, a Training and Consulting firm specializing in Customer Focus, Service Improvement, Leadership and fully customized training solutions. He is also co-author of the book That’s Customer Focus.
You can get more information about That’s Customer Focus by visiting www.thatscustomerfocus.com , www.thetrainingbank.com or www.cantrainonline.com
If you would like a pdf version of this article, please click here and we will send you one.
FAST GUIDE: 10 Success Factors of Customer Focus
By Eric Fraterman
(Eric is a friend and strategic partner.)
What is Customer Focus?
Customer Focus is more than Customer Service. It is an aligned whole-organization approach to customer satisfaction and service, leading to customer loyalty and advocacy. The result is sustainable profitability.
In a Customer Focused organization, Leadership, Processes and People are customer-aligned. In broad strokes this means that:
Every action is shaped by a relentless commitment to meeting and exceeding customer expectations regarding product and service quality.
Customer touching and supporting internal processes are constantly evaluated and improved to meet or exceed those expectations.
Employees are aware of their role in maintaining a valued relationship with their external and internal customers.
My experience based 10 Success Factors
Use a piloting approach. Learn, adjust and then roll out, while using managers involved as internal change agents and catalysts.
Allocate role of Senior Sponsor for the initiative.
Create a balanced set of customer-based measures as key indicators to manage the business and enable real accountability for them.
Design Customer Focus from the outside in (driven by the Voice of the Customer) and deliver it from the inside out (using the Voice of the Customer to drive internal deployment, culture change and alignment).
Conduct external measurements and surveys first and act on them with clear priority setting and assigning accountability for outcomes.
Do not conduct internal climate or employee satisfaction until the Customer Focus initiative is well underway, organized, structured, resourced and communicated.
Ensure that your People/HR team translates the customer needs into Customer Focused hiring specifications.
Ensure that the performance management system is aligned to the Customer Focus initiative, and measures and rewards to desired Customer Focused behaviors and skills.
Ensure that middle managers and senior leaders lead by example and do what is said; avoid the Say-Do gap trap.
Make communications into a forethought and harness it to support the required cultural transformation.
If you would like a pdf version of this article, please click here and we will send you one.
Letter to The Editor
By Ray Miller
(I sent this to the editor of one of our local papers awhile ago. Thought you might find it interesting.)
Letter To The Editor
The Toronto Star
Toronto, Ontario
Isn't it curious that, despite all the articles and commentary about the strategic importance of service quality and the empirical evidence which concludes that building customer loyalty through service quality is a profitable long-term business strategy, the service that most of us receive is average at best, and indifferent in most cases. Proof is found in the endless stream of horror stories shared in the press, on the internet and around the dinner table. The scary thing is that this low level of service is typical and when there is a problem, all too often things just get worse.
Canadian business should be put on alert status. Swapping bad service stories has become a national pastime. I have never met someone who, after hearing a bad service story rushes right down to the offender to be subjected to the same abuse. For that matter, I have never heard of anyone rushing to deal with a business when the experience they encounter is nothing more or less than they expected either. The reality is that businesses have within their control the ability to generate bad stories, good stories or no story at all. Potential customers are significantly influenced by the stories they hear when choosing where to spend their overtaxed dollars.
Every time I conduct one of our service quality training programs, I am inundated with a litany of tales of horror, and on rare occasions, a gem which renews my faith that service quality is indeed possible.
The good news is there are a few Canadian companies who have backed up their strategic commitment to service quality with real action and the delivery of extraordinary service. The bad news is that these seem to be the exceptions to the rule. The most relevant news for any organization in the public or private sector is that the strategy which offers the greatest room for differentiation with consequences such as customer loyalty and long-term profitability, is service. Not to be confused with services (the stuff you offer to your customers) but rather the way in which your products and services are delivered to the customer. We call it adding value through people.
I have never met a CEO who did not articulate that service is important. I have never met a front line service provider who purposely came to work to irritate customers. Yet bad service exists. Why do we hear corporate leaders and their advertising espousing the importance of customers and service yet we are disappointed when we go to the check-out counter or try to call the customer service department? The business reality is simple: customers are becoming more sophisticated and the majority have realistic expectations when it comes to the quality of service they want and feel entitled to, and these customers are voting with their wallets.
Companies that view service quality as a front line issue are regrettably stuck in the era of "smile training" and the happy faced - have a nice day syndrome. It has been our experience that a service imperative is the responsibility of everyone in an organization regardless of his or her role. At its very core, service is a leadership issue involving leaders at all levels of an organization from a front line or support staff supervisor to the CEO. Poor service is the typical outcome when leaders are unwilling or unable to make the changes necessary to create an environment where service quality flourishes.
As I read your article on March 12, a number of horrific stories came to mind. I then thought, rather than share this bad news, what small contribution could I make to your readers who may be unknowing offenders in the creation of bad stories. I offer below a brief assessment questionnaire which may give leaders responsible for service delivery some insight. I have a few recommendations for anyone with the courage to take the test. First be brutally honest, you're the one who will benefit. Second, ask yourself, "Are my responses based on facts or assumptions?" If the answers are based on assumptions, how can you find out for sure? Finally ask yourself, "How would my customers answer questions A., C., and E.?"
Responses of 3 and below in any of the 5 questions indicate that improvement is critical. Responses of 4 in any of the questions indicate that improvement is necessary to achieve an excellent service reputation. Responses of 5 or 6 would indicate above average performance. These assessment questions serve to allow reflection on the service quality of your organization in a general sense and focus further investigation into service improvement.
Sincerely;
Ray Miller
Author of That’s Customer Focus
And Managing Director of The Training Bank
If you would like a pdf version of this article, please click here and we will send you one.
Shocking Recovery
By Rick Tate
(Rick is a highly regarded expert in the world of customer service. He is an extraordinary speaker, trainer, author and human being)
"Submitted for your judgment, a business plan. This plan is mapped out to the nth degree. It describes the particulars of how to do business. But what can't be anticipated is the tension that washes over a customer like a dense fog. This is the tension that is inherent in registering a complaint. This particular tension, registering prominently on the anxiety scale, brings a foreboding. It carries with it a premonition of doom and is experienced, unfortunately, too often...in the Service Zone."
The Musings of A Customer
As a customer, I know things will never be perfect all the time, no matter how hard someone tries. Mistakes will happen now and then. There will be several reasons, some avoidable, some not. For me it's not the mistake that is of utmost importance...it's usually the way mistakes and problems are handled that have that get my real attention.
I know it is admirable to do things right the first time. But, while a company can take care of a product mistake or defect before I experience it and thus never know the error occurred, with service issues, most times the error occurs with me present. As a customer I'm not part of the food preparation process, but I'm actively involved in the service process. So I'm very impressed when, after the first time wasn't pleasant, the second time is exceptional.
In many ways I'm really surprised at myself. I find myself being drawn to and more loyal to those companies who have recovered from mistakes and handled my complaints in an excellent fashion than to any others. It's not that I enjoy situations where I have to complain or when there is a problem. But, possibly, it's such a relief to have a company deal with those situations in a positive manner that it makes the value of that company much higher than what it would normally be. Or maybe it's because the way many companies handle complaints isn't so great.
A Rat or a Mouse? Who Cares?
I remember another hotel experience. I was in my room, sitting on the bed reading a newspaper, when I noticed a rat scampering across the floor of the room. Concerned and moving to the center of the bed, I called the front desk and asked if I could change rooms. The clerk asked what the problem was, and I told her there was a rat in my room.
I'll never forget her response. "How big was it?" she asked. I was taken aback. (I guess they do come in sizes.) I asked if that really mattered. In a very terse tone of voice she replied, "Yes sir, it does. I can assure you this hotel does not have RATS!" Well I didn't think this was the time to debate rodent characteristics. I asked her what she thought I might have seen. She responded, "Sir, it was probably just a mouse."
Just a mouse, I thought. Well that makes all the difference in the world. I asked if we could agree that there was a big mouse in my room. With very little emotion at all, she said she would send someone up. Within two minutes two bell people arrived and helped me move to a new room. They were very polite and helpful. Upon returning later in the afternoon, I found a large basket of fruit, crackers and cheese (the cheese was probably an oversight) and a personally signed note of apology from the manager. Later that night I got a personal call from the night manager apologizing again.
However, while all that happened after the initial request was very positive, I was still angry and I'll never return. You see how the situation was handled at the first contact was so poor this hotel got no return for its subsequent recovery efforts. The clerk had to tell me I was wrong! Why? I don't know. Maybe she was just defending her company. Or perhaps she was right... the hotel had no rats. From my point of view...who cares? Rat, mouse, mule, moose or raccoon...there was an uninvited life form in my room, and I just wanted out.
Even though the specific incident with a rat in my room was an isolated event, the type of response I got from the complaint was not. Many attempts at recovery only offer the customer something tangible, a buy off. Yet, how people handle the situation is just as important, if not more so to me. It seems that in most cases when a problem arises or I complain, I get immediately put into a confrontational or uncomfortable position.
The Pain Of Complaining
First, many times there is a list of arbitrary rules I must have obeyed in order for my complaint to have any validity. Being asked if I have a sales receipt when the company name and price tag are in place seems silly. (I guess I could have stolen it...but then again if that were the case I figure a competent crook would say it was a present.) The 30 day rule is mind-blowing. What if I couldn't return it within 30 days? Does that make the satisfaction level or the problem I encounter any different? It must be to satisfy some internal accounting procedure because it certainly does not relate to my issue or possible future loyalty.
The questions like "What did you do to this?", "How many times has this been used?", "Did you follow the instructions?" "That's the way you order it!"...all seem to suggest that I caused the problem. I love the question, "Did you get that here?" Again, I have often wondered what the crook would say..."Oh no, I was just attempting to rip you off." It seems many of the hoops the customer must jump through are designed to either influence the customer not to bother to complain or to make the customer prove his or her complaint valid. And all to what end? It merely creates an adversary relationship which makes the customer want to do business somewhere else.
Second, I find that in many places it is very hard to complain. For whatever reason, many people don't want to handle the problem or complaint. Also, the complaint process is usually a hassle that entails forms to be filled out and/or several different people to be dealt with. I find myself repeating the situation many times. I can't understand why the sales process is fine tuned with prolific customer courting behaviors, yet the return or problem handling process is a fragmented and time-consuming adversarial event with behaviors reflecting outright contempt.
My Next Purchase Is New Business
I guess I see things a little differently. Why would I come back if I'm treated poorly and dealt with like I'm a pain in the rear? Don't they see my next purchase as new business? I really don't believe there is any such thing as old business. Every purchase I make is based somewhat on my past experiences. I think good customer service is a great sales technique, especially when I encounter a mistake or a problem as a customer.
I'm really like most; I don't often complain anymore. Yes, if the product I buy is defective or the invoice charge is incorrect I will let someone know. But, to complain about the way I'm treated, about the inconvenience, the lack of response, the hassles...is not a good use of my time. Why? Well, for one thing I don't think it will do any good. Many past experiences have taught me that.
Another reason is that it is time consuming, and my time is valuable. Also, I believe it will be confrontational, and I don't wake up in the morning and relish looking forward to confrontations. Altogether it just seems like a big waste of time and effort, especially when I can simply just take my business elsewhere.
However, there are some companies I will definitely complain to. Those companies who have handled complaints and problems well in the past, I give the opportunity to do so again. Could it be the better companies get more complaints than others because the complaint experience isn't punishing for the customer? I know I lower the complaint load for those companies I believe have lousy recovery practices. It's easy to get me not to complain...make it uncomfortable. Maybe there's something to think about here.
There are some companies that really blow me away. Why? They perform their promise really well and they also have superb recovery practices. I'm an avid Nordstrom customer. Why? Never a problem with a return or an exchange. Never! And it is handled by the clerk at the first point of contact.
L.L Bean...simply the best. Why? Again, if I'm dissatisfied with anything for any reason, send it back. No problem. Never! Never!!! And when they are late or out of stock, a personal letter makes me feel like they are bending over backwards to keep me informed and get my order ASAP. Got to love 'em.
P.F. Chang's, the fast growing Chinese bistro! They go out of their way to ensure you have every opportunity to be completely impressed with the food and the service. Complaints are P.F. Chang's opportunity to ensure you will return for another meal!!!
Wal-Mart? Even as a discount store Wal-Mart treats the customer with the utmost respect, the staff is always helpful and the complaint and return process is by far the easiest in their industry. Could be a result of a Sam Walton quote I saw recently...
"There is only one boss: the customer. And he or she can fire everybody in the company, from the chairman on down, simply by spending their money somewhere else."
Thank you Sam!!!
It's a Matter Of True Character
Why are recovery efforts and problem solving practices so important to me? Because during these times a company demonstrates its true character. Like any human relationship, it's not how we treat each other when times are good that is the measure of the relationship. It is in troubled times that the relationship is put to the test.
With excellent recovery practices, a proactive approach to stand behind everything a company does, and a philosophy to make things right when they aren't, my loyalty becomes very attainable.
In business, when complaints of offered, the ledger of character is opened and examined. The tally is made, and then the reward or the penalty paid. This is the comeuppance that awaits us all. Many pay the penalty, the loss of the customer. This is justice meted out for poor recovery.
This is judgment day- in the Service Zone.
Key Principles:
How we handle complaints and problems for customers demonstrates who we really are and the values of the organization. This is an integrity issue and the customer will react accordingly. The best of the best recovery better than their competitors.
Thoughts & Questions:
To have a positive impact recovery efforts should be;
fast and distinctive
never burden the customer
proactive - planned out in advance (hesitation sends the wrong message to the customer)
recorded and used as a data base for future business improvements
Recovery is a test of character!
Build or destroy the relationship with the customer by how you handle complaints and problems.
There is no cost of recovery, there is only an investment in the customer's future business.
Thanks Rick
If you would like a pdf version of this article, please click here and we will send you one.
Improving the Customer Experience through Customer Journey Mapping
By Eric Fraterman
(This is short and to the point. Eric is a friend and strategic partner.)
Today’s customers are becoming more demanding and often drive a hard bargain. They utilize multiple channels and touch points to interact with your organization during their life cycle (Customer Journey). If you are serious about differentiating your organization, you cannot ignore the negative impact that inconsistent and piecemeal customer experiences will have on your business.
Mapping the Customer Journey helps you understand the customer’s touch points. If the customer experiences these as consistent and positive, and you occasionally exceed expectations, you create value and set the conditions for nurturing a long-lasting and profitable relationship with loyal and committed customers. Since such customers often also recommend your organization to others, managing the customer journey and experience is a key profitability driver.
Using Information to Create Value for Your Customers
By Rick Tate and Michele Richards
(Rick is a highly regarded expert in the world of customer service. He is an extraordinary speaker, trainer, author and human being)
Ask most any employee at work today in American business the same question: "What's our biggest problem?" and you're likely to get the same answer: "Communication!" How can that be? Look at the proliferation of technology that has vastly improved the way in which information is sent and received in corporations. Consider the inordinate amount of time we spend during the typical business day in meetings. What about voice mail, e-mail, pagers, cell phones, fax machines and computers? Yes, even with the multitude of communications technology at our fingertips; even with the increased knowledge base and education of the American worker; even with new concepts in leadership and teamwork, most people will tell you the major cause of problems in organizations can be attributed to "communication."
We wonder just how much information we are communicating is really relevant to what people actually need to do their jobs in a way that creates value for our customers? Perhaps it's time to consider that our communications problems lie not in "how" we communicate, but rather in "what" we communicate. Is the customer's voice and evaluations the core of the information we channel through our organization, or are we simply using the progress in hardware and software to create better ways to communicate the same information we have in the past with new methods?
Would we have a different type of organization if we made the theme of our information processes "what the customer wants us to know" instead of "what does management want to tell and how do they want to tell it?" How much more effective would we be if everyone knew what was on the customer's mind when doing business with us, what the customer truly valued, and what real experiences the customer deals with?
How Far Have We Come, Really?
One of the reasons the "mom and pop" organizations of the 1920's and 1930's worked is because there was very little distance in time and space between a company's employees and its customers. Communication was easy because there were fewer organizational layers which separated employees from understanding what their customers really wanted, needed, and expected.
During the next two decades, American organizations grew in size and scope, adding layers and layers of organizational structure between their employees and customers. Information flowed from the top, "filtering" through the middle management funnel and was eventually delivered to people at the bottom of the pyramid. There was no sinister plot to withhold information from people. Management simply felt that employees were uninterested and didn't have a need to know certain information critical to the business
In the 1960's, we became concerned about the morale and motivation of the workforce and began to see the need to improve the way we communicated with employees. Company meetings became a thing to do. Cross-functional staff meetings became normal. The "corporate newsletter" went to press all across the nation. Middle management was encouraged to "pass the word" down and keep people informed because we had learned that open communication positively impacted employee morale and motivation.
By the early 1980's the emergence of a totally new economy would make our past practices ineffective. A major lesson learned was that in order to compete in an era that demanded quality products and quality performance, it was critical to have the active involvement of people. As a result, the need for better employee communications structures emerged as the need for information sharing between departments was becoming a critical business strategy. Here is where we saw the growth of the global employee newsletter, employee forums, meetings with management, problem-solving teams, advanced quality circles, TQM initiatives, etc. Like never before, employees had access to an overwhelming amount of information from a multitude of sources.
But the nature of the information passed along didn't really change that much. People were better informed about organizational "events," pay and benefits issues, who was being recognized for exceptional performance, new business ventures, who got promoted, and so on. There was improvement in data about the quality issues with regard to product production. There was some business news, but it was normally just a report on sales, profit, earnings and budget. And, it was communicated in a macro sense which still left employees (with perhaps the exception of those in sales and marketing) in the dark about just how they individually connected with the company's success.
But, Where Did the Real Customer Go?
By the end of the 1980s, we saw the "internal customer" concept take hold. By introducing the idea of serving an internal customer, organizations were attempting to bring each employee down the line closer to the user of its products or services. "I'll serve the customer, you serve me, and your internal customer will serve you. In the end, we'll all be working toward the same goal."
It was a new and impressive concept, but unfortunately one that delivered some unintended consequences. In many cases, a new hierarchy was created that merely replaced the old one. Support functions such as Human Resources, MIS and Engineering now perceived that they were less important than those who were in direct contact with the paying customer and it was their job to be at the mercy of the Sales and Marketing and operational functions. Many times this situation created more hostility and lack of cooperation than what we had before. And all it took was for one function in this linear organizational structure to be out of focus on what the primary objective was to sub-optimize the results of the whole organization. Anyone who has ever struggled with the ritual stringing of Christmas lights knows all too well what happens when one bulb goes awry... the entire string doesn't work and we fail to meet the ultimate goal. Further, the time it takes to solve the problem of "one small bulb" is great and the agitation is profound. Much like the weak link in a chain, when people move in different directions, the effect is disastrous.
The "internal customer" also failed to create the support employee's connection wi
