Archive for January, 2008

Is Bad Customer Service Killing Your Business

It’s time to beat the old bad customer service drum again. I know, I’m sick of beating the drum, too, but as long as bad customer service runs rampant through so many businesses I feel it is my entrepreneurial duty to bring it to your attention. So grab a pen and prepare to listen to the sermon I’ve preached before: bad customer service is the bane of business. If the Almighty smote down every business that dispenses bad customer service, the world would be a much friendlier, albeit much sparser place. Consider a world without malls and fast food joints… would it really be so bad?

What puzzles me most is if bad customer service is such a death knell for business, why do so many businesses allow it to go on? Don’t they read my column, for Pete’s sake? I think the problem is that most bad customer service is doled out (or at least condoned) by business owners and managers who have ceased caring what their customers think. When you stop caring what your customers think it’s time to close the doors. Go find a day job. You’ll make someone a wonderfully disgruntled employee.

My latest parable of lousy customer service was actually experienced by my better half while attempting to buy my daughter a pair of basketball shoes. I won’t mention the name of the sporting goods chain store in which the bad customer service took place, but I will tell you that its name is similar to the sound a frog with hiccups might make.

As my wife waited for someone to assit, the four or five teenagers who had been charged with manning the store stood in a clump at the cash register giggling and flirting with one another as if they were at the prom instead of at work.

When my wife pointed out this fact, one of the employees, a cheeky lass of 16 or so, put her hands on her hips and said, “How rude!” The males in the group didn’t react at all. They were too busy arguing over who could take a break so they could chase other cheeky lasses about the mall.

Needless to say my lovely bride, who has the ability to instill fear into the hearts of even the most worthless employees, left the gaggle of giggling teen idiots standing with their mouths open in disbelief. How dare a customer tell them to do that with a pair of basketball shoes?

As much as I bemoan bad customer service I celebrate good customer service. It should be applauded and the purveyor of said good customer service should be rewarded for actually delivering satisfaction to the customer, above and beyond the call of duty.

So let me tell you the story of my new hero, Ken. I won’t tell you the name of the store in which Ken works, but let’s just say they started out selling radios in a shack somewhere long, long ago.

I first met Ken when I went into the store to buy a mixing board for my business that records audio products for the Web. In a nutshell, you plug microphones into the mixing board then connect it to the computer and you can record audio directly to digital format. Totally beside the point of this article, but I didn’t want you thinking that I was purchasing non-manly cooking utensils.

When I got the mixer installed it didn’t work. So I boxed it up and headed back to the store to return it. When I told Ken my problem he didn’t just grunt and give me my money back as so many bad customer service reps would do. Instead he asked, “Do you mind if I try it?”

“Knock yourself out,” was my reply, confident that if I couldn’t get it to work, neither could Ken. Ken took the mixer out of the box and went about hooking it up to one of the computers on display. He started pulling power cords and cables off the display racks and ripping them open and plugging them in. He tore open a new microphone and an adapter and kept going until he had the mixer hooked up and working. Yes, I said working. It turns out the mixer was fine. I just had the wrong power adapter.

Ken could have just given me my money back and been done with me. Instead he spent 15 minutes and opened a number of other packages that I was under no obligation to buy just to help me get the thing working.

I was so impressed that I not only kept the mixing board, I also bought another $50 worth of products. And the next time I need anything electronic guess where I will buy it? Even if it costs twice as much, I’ll buy it from Ken.

Now here’s the moral of the story: if you are a business owner who has a gaggle of teenagers in charge of customer service at your store you would be better off replacing them with wild monkeys.

At least monkeys can be trained.

GTA IV

This I gotta get! So should you!

Three Myths Of Customer Service

At one time or another, all of us have been aggravated by bad customer service. The complaints are familiar: the dry cleaner who refuses to accept responsibility for staining your shirt; the salesperson who talks to a friend on the phone while handling your transaction; the hotel clerk who treats you like a trespasser instead of a guest.

The list goes on. And it happens all the time. Poor customer service is so rampant in this country that we’ve come to expect it.

Maybe that explains why most disgruntled customers don’t bother to complain to organizations that don’t give them quality service, they simply take their business elsewhere. They’d rather walk than talk.

Yes, I know, you’ve heard this before. Just as you’ve heard about the research revealing that unhappy customers do talk to their friends and family. According to customer satisfaction research studies, the average unhappy customer will tell nine or ten people about the poor service he or she received. In other words, large numbers of dissatisfied customers are routinely deserting organizations that displease them and are encouraging their friends to do likewise.

It’s a familiar message. You’ve heard it, your children have heard it, your dog has heard it; for the past few years everybody has heard it. Service excellence! That’s what consumers need!

Companies have certainly heard it. All sorts of organizations are striving to improve their customer service orientation. Hotels, hospitals, airlines, and online businesses now flood their customers with service quality surveys. Everywhere you look you see customer-contact people with service theme buttons on their lapels. Companies spend millions on training programs aimed at improving their employees’ service skills. Customer service has been woven into the fabric of so many corporate credos you’d think abrasive employees would be an extinct species by now.

Yet despite all of this, only a handful of organizations have managed to achieve a standard of consistently excellent service. For some reason, it just isn’t as easy as it sounds.

I think the problem is this: A lot of companies operate on the basis of some pervasive myths that make it difficult if not downright impossible, to achieve first-rate customer service.

1. The quality myth

“Pay attention to quality, and customer service will take care of itself.” Many organizations focus a lot of effort on manufacturing quality. Quality gurus like W. Edwards Deming, Philip Crosby, and Genichi Taguchi have helped hundreds of companies use techniques such as statistical processes control to increase the quality of their products dramatically. But these efforts are often thought to be the sole answer to remaining competitive.

Reality: Quality and service are interdependent. It’s impossible to describe quality adequately without considering it from the customer’s point of view. If your product can’t do what your customer wants it to do, it doesn’t matter if your engineering department is proud of its innovative design and your manufacturing department can boost a terrific production record.

Even if you measure product quality from the customer’s point of view, however, that alone does not ensure customer satisfaction. A superbly manufactured product with poor sales and service support will breed aggravated customers. How many products have you vowed never to buy again because of the poor service you associate with them?

Organizations that pursue quality improvements as the answer to all their problems are misguided. It is only part of the answer. Without superior customer service, efforts to improve product quality will be wasted.

2. The complaint myth

“Good customer service is a matter of knowing how to handle complaints.” “Call 800-111-2222 or contact us at www. customerservice.com if you have any complaints.” “Let us know if you’re unhappy with your room; we’ll change it.” “Please fill out this form. We want to hear from you.”

Companies have poured millions of dollars into making sure their customers have a chance to complain, complain, complain. The problem is, many of these companies never make strategic use of the complaints. And more often than not, they fail to provide complainers with satisfactory responses.

Reality: Without resolution, or at least some response, customers’ complaints are just so much hot air. A company that focuses solely on complaint handling may win a few battles, but it will lose the war to keep customers satisfied. And this approach is no solution for the great majority of dissatisfied customers who never complain, but simply walk away.

Superior customer service involves much more than handling complaints. It means striving to provide customers with no reason to complain in the first place. Strategies aimed at consistently meeting and exceeding customer expectations are a must for achieving service excellence.

None of this suggests that you can forget about complaint handling, but it must be an integral part of a broader service strategy. Well-managed companies see customer complaints as a way to learn: What lesson can we derive from this complaint that will improve our service in the future? Successful companies also see complaints as opportunities to impress customers by going to any lengths necessary to resolve the situation to the customer’s satisfaction. In other words, successful companies pay attention to complaints, but dedicate most of their efforts to preventing whatever caused the complaints in the first place.

3. The quick-fix myth

“Good service is simply good common sense.” Many organizations try to take the easy road to improving service. They believe that by adopting a new service policy, introducing a new training program, or giving stirring pep talks to their employees, they’ll become known for their excellent service.

Reality: This is the most lethal myth of all. As we’ve seen, it’s not easy to achieve service excellence. There are no shortcuts or quick fixes. Organizations that build their reputations on service do so by observing not just one, but every “reality” there is to providing excellent customer service.

Good training without adequate selection is a waste of time and money. Carefully selected and well-trained service employees who are not empowered to look for ways to improve customer service quality are a waste of precious resources. Good service comes only from a well-executed, coherent strategy. All the pieces of the puzzle need to be in place.

The way we treat customers, listen to their needs and strive to meet their expectations will make the critical difference. We can continue to perpetuate the myths. Or we can face the realities, and take action to change.

Silly Service has its Serious Side - Test Your Customer Service Knowledge!

Who says service is serious? Customer service can be silly too. Take this fun quiz to test your customer service knowledge. You may be a service ace if you both pick the correct answer to each of these ten questions, and understand why these answers are correct.

1. A complaining customer is:
A. Always right
B. Almost right
C. Often lying
D. Always the customer

2. Customers who complain:
A. Had unhappy childhoods
B. Are genetically predisposed to be sourpusses
C. Have trouble in their primary relationships
D. Are doing you a service in identifying what isn’t working in your business or organization

3. The best reward for your customer service representatives is:
A. Earplugs and punching bags
B. Valium or other mind-numbing drugs
C. Recognition and appreciation on your part
D. Anger management seminars

4. CRM stands for:
A. Customers Rarely Matter
B. Can’t Remember Much
C.Communicating Random Meaning
D. Customers Rudimentarily Managed
E. Customer Relationship Management

5. Customers who complain want . . .
A. Something for nothing
B. To be heard and have their experience validated
C. To vent for the sport of it
D. To be made majority shareholders in the company

6. Customer Service departments:
A. Are the afterthought that cleans up messes other departments cause
B. Build customer loyalty
C. Are leaders in understanding customer behavior patterns and market research

7. For a company to be considered service-oriented:
A. It must mention customer service in its mission statement
B. At least 18.3% of its employees must work in the customer service department
C. Its managers must at one time have been CSRs
D. Customer service must be addressed by all departments

8. A Call Center is defined as:
A. The midpoint in duration of a telephone call
B. A revenue sink hole
C. A place where middle-of-the-road calls coexist with liberal and arch-conservative calls
D. A location where complaints and problems are converted into successful saves for your customers and your company

9. Customer Care is:
A. A managed care medical program for customers
B. A nifty alliterative phrase that looks good in company brochures
C. A new program where customers care for themselves
D. A philosophy wherein the customer is wrapped in service even before a problem arises

10. Customer Service Culture is
A. A new form of yogurt where the lid removes itself for you
B. Behavior being analyzed in a Petrie dish for contagions
C. A mythical civilization in which everyone smiles and welcomes you when they meet
D. An environment where customer service permeates the thinking of the entire company

KEY

1. D. Customers are often wrong but they never stop being the customer. Right or wrong they are to be accorded respect and cared for. Focus on the insights their complaint offers.

2. D. Complaining customers alert you to systemic problems before they drive off more customers. Their complaints represent many more customers who may not spend the time to tell you about problems, instead just leaving you for your competitors.

3. C. Your staff deserves and thrive on recognition and appreciation. Take the time to celebrate them collectively and individually. Whether through cards, gifts, surprises, outings and acknowledgements at company functions, let them know how important, valued and appreciated they are to you and the company.

4. E. CRM refers to systems designed to track and cater to each customer’s whims and preferences over a lifetime. CRM is about managing customer relationships over the long haul by attending to their individual needs.

5. B. Complaining customers have several needs. Implicit in their actual complaint is also a need to be heard and their unhappiness acknowledged. Fixing the problem is important. So is letting them know you understand their displeasure and feel for them. One without the other is an incomplete remedy for customer complaints. Don’t forget the emotional component in complaints.

6. B and C. When you solve a problem for a customer you actually build confidence and allegiance. You’ve proven you stand behind your products or service, giving customers a warm and fuzzy feeling of safety and protection. As well, you tap the pulse of the customers. Their complaints and feedback give valuable insight into how well your products are assembled, documented, sold and hold up. Listening to customers tells you a great deal about your company’s products and services (and your competitors’ too) from real life customers. That’s invaluable!

7. D. A Customer Service orientation must transcend the service department. All departments must understand and model good customer service for the company to be considered strong in service. Many problems can be avoided outright by attending to customer service. Why should the customer service department carry the weight of service for the entire company. Don’t operate under the adage “never enough time to do it right but always enough time to do it over.” Get it right at the source, in all departments.

8. D. Make your call center is a shining example of your company’s commitment to its customers. Your center is a visible symbol of your company’s commitment to customer success.

9. D. Customer Care is a philosophy wherein customers are cared for by a company - the entire time they’re customers. Care isn’t just to be administered as a salve for problems. Demonstrate care from the start and your customers will flock to your products and services.

10. D. Customer Service Culture is the infusion of service ideals into every department, from sales, shipping and receiving to legal, human resources and beyond.