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Customer Service

The Management Pocketbooks Pocket Correspondence Course

This is part of an extended management course. You can dip into it, or follow the course from the start. If you do that, you may want a course notebook, for the exercises and any notes you want to make.


In business today, price is no longer a major differentiator. So many companies offer promotional promises and will try to undercut their competition. The one aspect that will mean your customers come back to you is how they are treated and the level of customer service. There are some statistics to support this:

  • A company can increase profits by 85% if it retains 5% more customers each year.
  • It is 5-8 times as easy to sell to an existing customer as to a new prospect.
  • Some direct mailing tests to groups of “customers” and “prospects” found that approaches to customers were four and a half times more profitable than approaches to prospects.

Source: Research from Bain & Co

Customer service is all about attitude.

Nurturing and retaining customers is crucial to the success of your business. Customer service is all about attitude rather than techniques. A member of staff can have all the techniques in the world but if they do not believe in the business and do not want to do it, they won’t. Are all your staff focused on making the customer the focus of their world?

The Big Secret to Customer Care

… is to care!

What do customers really want? The most important thing you can do for your customer is listen to what they want and be open about whether you can provide it. The big secret to customer care is to care enough to listen, and to respect what you hear, so:

  • Be welcoming
  • Ask questions
  • Listen carefully
  • Offer only goods or services that truly meet their needs

Satisficing

‘Satisficing’ is doing the minimum to meet a set of criteria. This is the approach that many organisations take to customer care. It is certainly the easiest way to deal with complaints. Easiest is rarely best – and certainly not in this case. Treat complaints as an opportunity to have a good long conversation with your customer and go way beyond satisficing. Go beyond pleasing; aim to delight.

A recent customer service experience taught me a real lesson. I bought a new service which didn’t work first time. I contacted technical support, who first denied there could be a problem, and then treated me as if I were foolish “You don’t do it like that – that won’t work …”. After many calls, I did speak to one engineer who said (I am quoting verbatim – I wrote it out in my daybook): ‘this is a bug’.

After a week of ever more frustrating emails, I figured out what to do. The service worked perfectly, the advice on an online forum was good. The customer care, however, means I’ll never recommend that service to anyone without warning them. If an email takes three minutes to rush off, it will only take five to write with care. Word of mouth is the best – no, THE BEST – source of new business. Are you chasing quick responses from your staff or are you seeking first class customer service?

A Customer Care Review

When did you last have your monthly customer care review?  Thought so!  Set one up, if your answer was not 31 days ago or less. Here are five great questions to ask your colleagues and discuss:

  1. What annoys our customers most at the moment?  If you don’t know: ask them.
  2. What have we improved on customer care this month? This is what your customers notice, not what you worked hard on.
  3. How do we compare with our competitors? What are people saying on forums, for example?
  4. What are we doing to really delight our customers at the moment? Go beyond satisficing.
  5. Is it time for a “mystery shopper”? There are a number of companies who can offer this service, but unless you are a small business, you can do it for yourself.

Moments of Truth

Moments of Truth are those tiny moments when a customer learns something about your business organisation. Every interaction, however small, has a moment of truth in it. What will that truth be?

What does your front door look like? Estate agents will tell you that it is easy for viewers to fall in love or out of love with a house, based on its front door. We aren’t saying repaint your front door when you want to sell your house (though you should): we are saying get the entrance and reception area of your business right. Tomorrow morning, come in through the customer entrance and see it through a customer’s eyes.

Director of Welcoming

Okay, you say receptionist, I say Director of Welcoming. A receptionist sits behind a reception desk, takes names, and makes calls. A Director of Welcoming welcomes people in and then does everything they can to make them feel welcome. Small difference in the work: vast difference in the results.

First impressions really do matter. It might be the voice on the end of the phone when a new customer first calls. It might be the first email or letter a new client gets. It might even be the greeting they get when they first visit your office, factory or warehouse. What’s the common thread? Your receptionist. And often these undervalued colleagues are required to multitask with the minimum of training. This is just plain wrong, because it puts your business in danger.

Further Reading 

Two pocketbooks you may like:

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Another reason to offer great customer service

By Sean McManus, co-author of  The Customer Service Pocketbook

Just before Christmas, news came out that Google has updated the way its search engine works, so that it discriminates against companies that offer bad customer service.

Google counts a link to a website as being a vote in favour of it, and uses those votes (among other things) to decide how highly websites rank in its search results. The problem was that if the links appeared with complaints about the company, perhaps in a consumer rights forum, Google still gave companies credit for that link. Now that’s all changed, and Google says it now penalises companies apparently offering poor service.

The change responds to a claim in a US newspaper that one company deliberately offered bad customer service, just so that people would gripe about it online and give it lots of links that would boost its search engine ranking.

For online businesses, this means it’s never been more important to offer good service. If they don’t, they risk sliding down the search engine rankings, which can have a big impact on new customer acquisition and sales volume.

Google has always been committed to giving people the best web pages for their search queries, but this represents a subtle change. It means Google is now prioritising the reputation of the website operator too, including factors that are independent of the website itself.

imageGoogle holds a huge amount of data about customer behaviour that could also be factored in. Let’s not forget that Google knows how often people search for your company name together with ‘complaints department’.

It can even benchmark these figures across different companies, industries and countries, to identify companies that have significantly more complaints than their rivals.

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If Google is committed to good customer service, you should be too

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Find out how to improve customer service across your organisation in …

Never has there been a time when retaining your customers has been more important. The Customer Service Pocketbook, by Tony Newby and Sean McManus will give you lots of hints and tips about communicating with your customers, dealing with complaints and monitoring your performance.

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Employees first: Customers second

Vineet Nayar has been on the radio a lot recently. He is the CEO of HCL Technologies and has, on the face of it, an odd philosophy for how he does business: Employees First: Customer Second.

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New Wisdom

This flies in the face of the conventional ‘customers first’ wisdom.  But it is not quite as counter-intuitive as it may seem.  You just need to follow the logic of the process.  Who looks after your customers?

Vineet Nayar’s Four Fundamental Questions

  1. Q: What is the core business we are in?
    A:  Creating value for our customers
  2. Q: Where is that value created?
    A:  At the interface between our employees and our customers
  3. Q: Who creates value?
    A:  Our employees
  4. Q: What is the business of managers and management?
    A:  Enthusing, encouraging and enabling employees to create value

When you invest the time and resources to ensure that your staff are committed and happy in their work, they will be naturally motivated to make your business succeed.  When you select the right people to put into the front-line and deal directly with your customers, then inevitably, they will take care of them.

The Secret of Customer Care

After all, there is no great secret to customer care: it simply requires that you care about your customer.  When you care about someone, you instinctively take care of them.

Corporate Kinetics

About twelve years ago, I participated in some research that ultimately led to what its authors hoped would be a ground breaking book: ‘The Power of Corporate Kinetics: Self-adapting, Self-renewing, Instant-action Enterprise’.  The thesis was simple; that the agility that companies would need to adapt and thrive in the third millennium could best be achieved when the people doing the work were given the authority to change how they do their work, to optimise efficiency, effectiveness and customer service.  It was illustrated with case studies drawn from the clients of my employer, Deloitte.

I don’t think it changed the world, nor even the way that many organisations go about improving themselves.  It should have, but I think two apparently contradictory things got in the way:

  1. first was a sense of ‘so what?’ The ideas did not seem surprising: they were perhaps, a little obvious.  Of course the people who do the work have the clearest view of what needs to change.
  2. second was a sense of ‘oh but…’ Giving real authority to the bottom of an organisational tree appears to rob everyone above of a big part of their role and, subconsciously, of their self esteem.

Empowerment is a hard discipline.  But it is certainly what Vineet Nayar is talking about.  And it also gives us another reason (see last week’s Pocketblog) why management is hard:  because, if you start to accept the logic of some of these ideas, you need to find a new model of management.

So here’s the Deal: A New Model of Management

In this new model, managers would act much more like facilitators than traditional instigators.  They would lend their commitment and authority to anyone coming forward with a good idea.  They would need to be able to encourage people to do so and to suppress a portion of their ‘I know best’ reflex so that they could balance a proper critical evaluation and a fair assessment of the opportunities.

Some Management Pocketbooks you might enjoy

Post Script

Coincidentally, a few days before this blog was scheduled to be posted, Strategy & Business, the magazine published an interview with Vineet Nayar, here.

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Making Customer Service Count

We recently wrote about the secret of customer care.  Now, Customer Service Pocketbook co-author, Sean McManus, considers the implications of a recent survey from consumer organisation Which.

The Best and the Worst Customer Service

A recent survey by Which named the UK’s best and worst companies for customer service. Top stores included Lakeland, Richer Sounds, Apple, Lush, John Lewis, Body Shop and Ikea. Those at the bottom of the table of 100 companies were Currys Digital (in last place), WH Smith, Focus, PC World, JJB Sports, and Currys.

To compile the chart, Which surveyed over 14,000 members of the public about their shopping experiences in the previous six months. Over 130 people rated each shop in the top and bottom ten.

What Differentiates the Best and the Worst?

Roughly speaking, the bottom ten shops are those that compete strongly on price. The top ten shops compete more strongly on differentiation and specialisation. You could argue, then, that people get the customer service they pay for. Good customer service doesn’t have to be expensive, but in businesses where costs are under pressure, it can be difficult for the team to keep customers happy.

You might think that stores like Homebase and Focus (both in the bottom 10) have to compete on price because they’re fighting each other, but all the shops in the top ten have strong competition too. By investing in differentiation and great customer service, they’ve managed to create the impression they don’t.

Mediocrity is Instantly Forgettable

Since people were being asked to recall their shopping experiences over the previous six months, mediocre customer service will have been long forgotten. What people remember is when the business goes the extra mile to really deliver above and beyond expectations. That’s what will encourage people to return again next time they are ready to buy, which, in the case of most of the top ten shops, is likely to be months or perhaps years later. (Of course, outstandingly bad customer service is also memorable).

The quality is determined by who is working on the shop floor on the day

Ask around and you’ll probably find plenty of people willing to quibble with the results. I’ve had bad customer service at times from Ikea and excellent service from WH Smith, which runs contrary to the trend. But that highlights a key challenge with customer service: the quality is determined by who is working on the shop floor on the day, how committed they are to delivering to good service, and whether they have the resources to do so. Customers never think ‘that salesperson’ wasn’t helpful, though. They think ‘the company doesn’t care’.

So here’s the deal

Make sure everyone on your shop floor is trained in customer service and, more important, is motivated to really care about it.

The Customer Service Pocketbook

CustomerService Companies that want to be known for chart-topping customer service, the only kind that customers really care about, need to make sure that the whole organisation is geared up to deliver it. For tips on how to do that, see chapter 5 of The Customer Service Pocketbook.

Other Management Pocketbooks you might enjoy

This blog was written by Sean McManus

Sean McManus is a writer specialising in business and technology. He is co-author of The Customer Service Pocketbook.

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The Secret of Customer Care

. . . is to actually care.

So here’s the deal

This could be our shortest ever blog but, in case you would feel short changed, here’s a little more:

Shocking Customer Care Statistic

Two surveys, by Harvard Business School and Dun & Bradstreet found a consistent result.  When they asked customers why they stopped using a company, they got these results:

Left the area, died, otherwise unable to use the company
– approx. 20%

Found the product, service or price to be poor
– approx. 14%

Don’t think the company cares about me
– approx. 66%

CustomerCare

What to do about it

The answer is simple.  Make time to listen to your customers.  Ask them questions, listen to their answers and act on their feedback.

So here’s the deal

The secret to customer care is to actually care.

Management Pocketbooks you might enjoy

The Customer Service Pocketbook is filled with tools, tips and techniques to help with your customer care.

Customer Service Pocketbook

You may also enjoy:

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