We live in a time period when we expect to be entertained at every moment. It starts with our kids having multiple game systems, including portable systems that they can take with them in the car. As adults, we just graduate to more sophisticated toys.
Even eating out can be viewed as a form of entertainment. With limited financial resources, many families are becoming more selective with how they choose a restaurant. Within 15 miles of my house there are over 100 restaurants, providing every possible choice of ethnic food and every brand of fast food. For the most part, the quality of the food and the variety of menu items has improved substantially in the past 10 years.
So what makes a hungry customer choose one restaurant over another? It is all about the experience! Just this past week, I had an example of this concept. Last Friday I was driving between appointments at the noon hour and was looking for a place to grab a quick lunch. A friend of mine is responsible for a large chain of sandwich restaurants. My eyes caught the sign of one of these establishments, so I made a quick turn into the parking lot.
The concept was unique and the food was very tasty. The physical layout of the sandwich shop was clever and the floor, tables, restrooms and counters were clean. Will I go back again? Probably not.
What was missing? It was the overall experience. The leadership and staff at this location need a class on how to engage their customers. The person taking my order did not even look up from the cash resister. The order was written down on a paper bag, so he did not have to interact with me. I know it was busy, but it does not take but a few seconds to welcome each guest and determine if they have any questions. The people making the sandwiches were obviously not having a great time. Not one of them looked up or even smiled. The person at the end of the line called my name when my order was complete. Not once did anyone thank me for my business.
When I see an establishment like this, I immediately question the skill of the manager or owner. It is their responsibility to set the overall tone for the guests and the employees. If the leader in charge is not enjoying what they do, FIND ANOTHER JOB! Life is too short to spend the majority of your waking hours doing something you can’t stand. If you view what you do as just a job, you are missing the boat.
Customers may not put their finger on exactly why they are drawn to one location over another, but it is the overall experience and how they feel when they walk out the door that drives their future choices.
Anyone who interacts with a customer is in the entertainment business.
Learn to put on a good show. Your future depends on it!
Thursday, April 30, 2009
Saturday, December 13, 2008
Grocery Store Switch!
My wife just walked in the door and said: “I am switching to Albertsons!” There are two grocery stores within 3 miles of our house. A Krogers and an Albertsons.
This was the final straw after countless bad experiences with this particular Krogers location. (We have been to other Krogers stores with a much better outcome.) They are constantly understaffed at the checkout lines, and a management team that does not seem to understand that the number one customer turnoff is a long line.
My wife is preparing an appetizer for our adult Sunday school party tomorrow night. She is making “Ham Balls” and needed a ham finely ground. She approached the man in the meat department at Krogers with the ham and asked if he could grind the meat. He replied by saying he could not because they only have one grinder and it is used for red meats only.
My wife put back the ham and drove across the street to the Albertsons. She was greeted upon entering the store and had several positive encounters with helpful staff on her way to the meat counter. She asked the meat manager if he could grind the ham. They also only have one machine, but his response was very different: “Sure. It will take me a few minutes to clean the machine if you don’t mind waiting.”
What a different response! In an economy where every business should be working hard to keep their customers, it is surprising that the Krogers employee did not seem to care.
We spend over $100 a week on groceries, with the majority of it for the past five years going to Krogers. That is over $5,000 of annual business that this store just lost and the Albertsons picked up, all because of how the two meat managers handled a simple request.
When we first moved to Frisco, the Albertsons was the only close grocery store. They were horrible in customer service! I have noticed a vast improvement in the past year. They are obviously paying attention to their customers and have trained all of their team members to deliver excellent customer service.
This was the final straw after countless bad experiences with this particular Krogers location. (We have been to other Krogers stores with a much better outcome.) They are constantly understaffed at the checkout lines, and a management team that does not seem to understand that the number one customer turnoff is a long line.
My wife is preparing an appetizer for our adult Sunday school party tomorrow night. She is making “Ham Balls” and needed a ham finely ground. She approached the man in the meat department at Krogers with the ham and asked if he could grind the meat. He replied by saying he could not because they only have one grinder and it is used for red meats only.
My wife put back the ham and drove across the street to the Albertsons. She was greeted upon entering the store and had several positive encounters with helpful staff on her way to the meat counter. She asked the meat manager if he could grind the ham. They also only have one machine, but his response was very different: “Sure. It will take me a few minutes to clean the machine if you don’t mind waiting.”
What a different response! In an economy where every business should be working hard to keep their customers, it is surprising that the Krogers employee did not seem to care.
We spend over $100 a week on groceries, with the majority of it for the past five years going to Krogers. That is over $5,000 of annual business that this store just lost and the Albertsons picked up, all because of how the two meat managers handled a simple request.
When we first moved to Frisco, the Albertsons was the only close grocery store. They were horrible in customer service! I have noticed a vast improvement in the past year. They are obviously paying attention to their customers and have trained all of their team members to deliver excellent customer service.
Tuesday, November 4, 2008
Customer Service in a Down Economy
For the past five or more years, most industry segments in the United States have experienced steady growth and a healthy bottom line. While that may be great and we all enjoy the economic stability, it can lead to practices and habits that are not conducive to excellent customer service. When I mention that I work with companies to help improve their customer service, I often receive a list of companies that could use some help.
Having an abundance of customers has created the following attitude: “If the customer is not happy, he or she can leave. We can always replace them with a new customer.” This attitude may not be verbalized, but it creeps into our communication and service delivery practices. As Tom Peters once said, “Customer service is so bad, that if you treat your customers with common, ordinary, garden-variety courtesy you have the lion’s share of any market you want because you will be alone!”
Then it happens!!! We have a slow down in the economy and everything changes. No longer are there more customers than we know what to do with. The power has shifted and the consumer is now in charge and gains an advantage that was missing in the strong economy. Suddenly there are countless companies clamoring to earn their business and convince the prized customer to spend their precious dollars on their company’s product or service. Not only are there fewer paying customers wanting what you sell, but there are more motivated sales people hungry to steal them away. Someone who has been a steady customer will now be presented with better deals and tempting offers to move their business to one of your competitors. Even your loyal customers will be watching what they spend with a new sense of scrutiny.
Economic slowdowns may be painful, but they are actually good for business.
Three things happen when a company is forced to tighten their financial belts:
1. Processes that are not adding value miraculously are no longer needed and are eliminated, or at least trimmed down.
2. Leaders and staff who have not been pulling their weight are eliminated, creating a more effective organization after the dust settles.
3. Employees at all levels start understanding the need to practice excellent customer service and they start listening to the end customer.
The best and most profitable companies figure out how to apply these three concepts during the strong economic times. The remaining 90% of organizations require a little pressure to do what they should have been doing all along. So don’t feel bad if you are in one of those companies that is scrambling to make changes and win the right to continue doing business with your existing customers.
Following are a few steps you can take to improve the way you work with each of your customers.
1. Increase the level and frequency of communication with each customer. Where a call every quarter to check on a regular customer used to be fine, you may want to check in with select customers on a more frequency basis to ensure you are meeting their needs and they are not considering other options.
2. Respond to all customer complaints and issues with a heightened sense of urgency. Understand that your customers are less likely to put up with problems and errors in your service delivery. They now have options and other companies wanting to prove how they can do a better job at meeting their needs.
3. Go after those customers who are currently with your competitor. Look for the gaps in the other company’s service and move quickly to demonstrate how your organization can meet their needs and even save them money.
4. Develop a passion of flawless internal service. During a tight economy, there is no room for internal politics and turf wars. You are in the middle of a battle! All hands should be on deck and supporting each other to increase the level of service provided to the end customer.
Remember, if you are not fully committed to providing the best possible service to your customers, there will be someone who is, and they will be more than happy to take the customer’s money. Don’t fear these times. Seize the opportunity to raise the bar and develop a culture where delivering excellent customer service and assuring customer loyalty are the primary reasons you exist as an organization and even have a job.
Monday, October 13, 2008
The Cowboys Will Never Win it All!
To a certain degree, strong egos and successful athletes go hand in hand. Unfortunately, an out of control ego can also breakdown teamwork and lead to a talented team of individuals never reaching that ultimate goal of team sports: the championship trophy.
I live in the Dallas area and would like nothing more than to be a Cowboy fan. Unfortunately, they have an owner who insists on hiring players who will never work well on a team. For example, Terrell Owns. He has a lot of talent, but week after week he seems to be more interested in how many times he touches the ball instead of if the team is successful. During the post game interview several weeks ago following their first loss, T.O. said that the offense stagnated because he did not get the ball enough. That is after they sent it his way 17 times!
Superstars like T.O. may be fun to watch when the team is winning, but when things are tight and the season is on the line, their selfish actions will always keep a team from winning the big games. I will admit that T.O. has gotten better in the past year, but until he either leaves Dallas or learns to put his team ahead of his own ego, the Cowboys will never make it all the way.
The same is true of teams in the corporate world. An organization will never reach its potential when there are members of the team who are more concerned with their own career progression than helping the company reach their goals.
It is a tricky balance! We need people who have self-confidence and are driven to success, but not at the expense of the overall team or organization. The goal is to find talented individuals who get their excitement when the team has a win!
I live in the Dallas area and would like nothing more than to be a Cowboy fan. Unfortunately, they have an owner who insists on hiring players who will never work well on a team. For example, Terrell Owns. He has a lot of talent, but week after week he seems to be more interested in how many times he touches the ball instead of if the team is successful. During the post game interview several weeks ago following their first loss, T.O. said that the offense stagnated because he did not get the ball enough. That is after they sent it his way 17 times!
Superstars like T.O. may be fun to watch when the team is winning, but when things are tight and the season is on the line, their selfish actions will always keep a team from winning the big games. I will admit that T.O. has gotten better in the past year, but until he either leaves Dallas or learns to put his team ahead of his own ego, the Cowboys will never make it all the way.
The same is true of teams in the corporate world. An organization will never reach its potential when there are members of the team who are more concerned with their own career progression than helping the company reach their goals.
It is a tricky balance! We need people who have self-confidence and are driven to success, but not at the expense of the overall team or organization. The goal is to find talented individuals who get their excitement when the team has a win!
Wednesday, September 24, 2008
A Little Help Please!
It is amazing that in a time when many companies are on the brink of bankruptcy and almost everyone has to work harder to close business, some organizations are unwilling to lift a finger to earn your dollars.
This past week I was in New York City with my wife. This was our first pleasure trip to the city and we had a fantastic experience. Prior to flying to NYC, some good friends gave us the name of a transportation company that was an alternative to the taxi cab. We called ahead and made our reservation for a driver to meet us at the airport upon our arrival.
The car was clean, comfortable, and on time. The driver was very nice and took us to our hotel on Times Square. After spending the weekend seeing the sights and shows, we reluctantly made the call on Sunday afternoon to the same car company to arrange for our pickup later that evening. We would be spending the final night at a hotel a few miles from LaGuardia Airport.
When I called the reservation number for the NYC company, they asked for the address of our hotel. (It was a Fairfield by Marriott – three miles from the airport.) At the time, I was walking down Broadway heading to lunch and did not have the address with me. I told them the name of the hotel.
They responded that they would need to have the street address to make the reservation. I was surprised that a transportation company would not have a list readily available of airport hotels. I asked if they could look up the address, and they responded that they could not. I asked to speak to the manager and got the same response.
If I was running this business and trying to generate revenue in a down economy, I would have found a way to find the address. I can’t believe that I was the first person to make such a request. This company should create a quick reference document for their reservation agents to quickly find the address for the main hotels that surround their two main airports.
I don’t know if these employees were lazy or just lacked common sense, but if they want to stay in business, they should realize that customer expectations are increasing and they need to do what it takes to respond to the customer needs.
This past week I was in New York City with my wife. This was our first pleasure trip to the city and we had a fantastic experience. Prior to flying to NYC, some good friends gave us the name of a transportation company that was an alternative to the taxi cab. We called ahead and made our reservation for a driver to meet us at the airport upon our arrival.
The car was clean, comfortable, and on time. The driver was very nice and took us to our hotel on Times Square. After spending the weekend seeing the sights and shows, we reluctantly made the call on Sunday afternoon to the same car company to arrange for our pickup later that evening. We would be spending the final night at a hotel a few miles from LaGuardia Airport.
When I called the reservation number for the NYC company, they asked for the address of our hotel. (It was a Fairfield by Marriott – three miles from the airport.) At the time, I was walking down Broadway heading to lunch and did not have the address with me. I told them the name of the hotel.
They responded that they would need to have the street address to make the reservation. I was surprised that a transportation company would not have a list readily available of airport hotels. I asked if they could look up the address, and they responded that they could not. I asked to speak to the manager and got the same response.
If I was running this business and trying to generate revenue in a down economy, I would have found a way to find the address. I can’t believe that I was the first person to make such a request. This company should create a quick reference document for their reservation agents to quickly find the address for the main hotels that surround their two main airports.
I don’t know if these employees were lazy or just lacked common sense, but if they want to stay in business, they should realize that customer expectations are increasing and they need to do what it takes to respond to the customer needs.
Thursday, September 18, 2008
Customer Service is like a Roller Coaster!
The relationship between a company and its customers is not all that different than the relationship between a husband and wife. Every couple knows that there are great times and times that you may not be seeing eye-to-eye. There are also times when you are moving from one state to another, also called “making up.”
I want to share an experience from this past month that illustrates the up and down nature of customer relationships. Several weeks ago, I received an unsolicited call from a representative of Verizon. He was the sales person from whom I had purchased my air-card almost 18 months earlier. He worked at one of the Verizon locations inside a Circuit City store. He said that they were replacing some of the older equipment that had experienced problems. The sales person assured me that there would be no additional cost and it would not extend my contract.
I replied: “Sure. Go ahead and send it to me.”
The card arrived later that week. I waited a few days and then connected it to my laptop to see how it would work. I noticed that it connected with a new phone number. Apparently, this sales person lacked integrity and was simply attempting to gain the commission from a new device and phone number. (NEGATIVE EXPERIENCE – The Roller Coaster headed down the slope.)
Suspecting that this would result in a separate bill, I picked up the phone and called Verizon and explained the situation. The Verizon call center agent was very pleasant and said she would take care of the situation by closing this number and moving the new device to my original account. (POSITIVE EXPERIENCE – The Coaster was heading back up.)
The next weekend I was on a trip. As we usually do, my wife drove and I sat in the passenger seat with my laptop catching up on some work. I connected my new air-card, only to have it fail while making a connection. (NEGATIVE EXPERIENCE – Heading back down.)
I called the technical support center for Verizon and explained the situation. The previous call center worker had made a mistake with the cards and had turned the new card off instead of transferring it to my old number. (NEGATIVE EXPERIENCE – Heading into the tunnel!)
The initial call center support person was very understanding and did everything within her level of skill to resolve the problem. After 30 minutes, she asked if she could put me on hold and get a senior technical support person on the phone. She stayed on the phone, explained the situation and completed a proper handoff. (POSITIVE EXPERIENCE – Coming out of the tunnel!)
The technical resource tried several possible solutions without success. I explained how important it was for me to have access as I had several urgent emails to send. He kept thinking and eventually was able to re-activate my original card and account. I was back up and running! (POSITIVE EXPERIENCE – The coaster was heading up another hill.)
Two weeks later, I received a “Welcome Packet” from Verizon thanking me for opening a new account and letting me know my new expiration date would be two years in the future. (Heading back down!)
I called again and talked to a nice team member who assured me that this was not the case and the account had been closed. (Taking a turn back up.)
Two weeks later, I received my “new” Verizon bill that indicated I was being charged over $200 for an “early termination” fee. (Sinking to an all time low! The coaster had jumped the track!)
I picked up the phone again and after waiting a couple of minutes, a very polite Verizon employee answered the phone. I explained the situation and within two minutes, she had issued the credit and apologized for the entire situation. (Moving back up the final hill.)
Within five minutes I received an email from the Verizon system confirming the credit and showing the correct outstanding balance for my original air-card. (Back to good standing.)
I tell you this story not to pick on Verizon, but to illustrate what is common in almost every company. Great customer service requires every team member to do their part.
Employees in any organization will fall into one of four categories:
They understand the importance of providing great customer service and also possess the skills and support to do so.
They understand the importance, but lack the training, systems, processes or skills to provide great customer service.
They don’t believe that customer service is important, and therefore don’t stand a chance at delivering excellent service.
They lack the personal integrity to consistently do the right thing, resulting in disappointed customers.
There were seven points of contact with a Verizon employee during this air-card saga. One lacked integrity, two or three had great intentions but lacked the skill or support system, and three delivered great service.
Verizon has one of the better reputations for customer service from among the cell phone providers. I am sure they have a good training program and expect only the best out of their employees, yet less than half of them were able to meet my expectations. Remember, if you are one of those employees who have a passion for delivering service and possess the skill needed to do so, you will have to make up for less than stellar performances by some of your co-workers. Consider it your job to get the roller coaster back on the track and heading back up the hill. Every organization’s goal should be to have more positive experiences than negative, but even service recovery situations can earn big points in the constant up and down relationship between a company and its customers.
I want to share an experience from this past month that illustrates the up and down nature of customer relationships. Several weeks ago, I received an unsolicited call from a representative of Verizon. He was the sales person from whom I had purchased my air-card almost 18 months earlier. He worked at one of the Verizon locations inside a Circuit City store. He said that they were replacing some of the older equipment that had experienced problems. The sales person assured me that there would be no additional cost and it would not extend my contract.
I replied: “Sure. Go ahead and send it to me.”
The card arrived later that week. I waited a few days and then connected it to my laptop to see how it would work. I noticed that it connected with a new phone number. Apparently, this sales person lacked integrity and was simply attempting to gain the commission from a new device and phone number. (NEGATIVE EXPERIENCE – The Roller Coaster headed down the slope.)
Suspecting that this would result in a separate bill, I picked up the phone and called Verizon and explained the situation. The Verizon call center agent was very pleasant and said she would take care of the situation by closing this number and moving the new device to my original account. (POSITIVE EXPERIENCE – The Coaster was heading back up.)
The next weekend I was on a trip. As we usually do, my wife drove and I sat in the passenger seat with my laptop catching up on some work. I connected my new air-card, only to have it fail while making a connection. (NEGATIVE EXPERIENCE – Heading back down.)
I called the technical support center for Verizon and explained the situation. The previous call center worker had made a mistake with the cards and had turned the new card off instead of transferring it to my old number. (NEGATIVE EXPERIENCE – Heading into the tunnel!)
The initial call center support person was very understanding and did everything within her level of skill to resolve the problem. After 30 minutes, she asked if she could put me on hold and get a senior technical support person on the phone. She stayed on the phone, explained the situation and completed a proper handoff. (POSITIVE EXPERIENCE – Coming out of the tunnel!)
The technical resource tried several possible solutions without success. I explained how important it was for me to have access as I had several urgent emails to send. He kept thinking and eventually was able to re-activate my original card and account. I was back up and running! (POSITIVE EXPERIENCE – The coaster was heading up another hill.)
Two weeks later, I received a “Welcome Packet” from Verizon thanking me for opening a new account and letting me know my new expiration date would be two years in the future. (Heading back down!)
I called again and talked to a nice team member who assured me that this was not the case and the account had been closed. (Taking a turn back up.)
Two weeks later, I received my “new” Verizon bill that indicated I was being charged over $200 for an “early termination” fee. (Sinking to an all time low! The coaster had jumped the track!)
I picked up the phone again and after waiting a couple of minutes, a very polite Verizon employee answered the phone. I explained the situation and within two minutes, she had issued the credit and apologized for the entire situation. (Moving back up the final hill.)
Within five minutes I received an email from the Verizon system confirming the credit and showing the correct outstanding balance for my original air-card. (Back to good standing.)
I tell you this story not to pick on Verizon, but to illustrate what is common in almost every company. Great customer service requires every team member to do their part.
Employees in any organization will fall into one of four categories:
They understand the importance of providing great customer service and also possess the skills and support to do so.
They understand the importance, but lack the training, systems, processes or skills to provide great customer service.
They don’t believe that customer service is important, and therefore don’t stand a chance at delivering excellent service.
They lack the personal integrity to consistently do the right thing, resulting in disappointed customers.
There were seven points of contact with a Verizon employee during this air-card saga. One lacked integrity, two or three had great intentions but lacked the skill or support system, and three delivered great service.
Verizon has one of the better reputations for customer service from among the cell phone providers. I am sure they have a good training program and expect only the best out of their employees, yet less than half of them were able to meet my expectations. Remember, if you are one of those employees who have a passion for delivering service and possess the skill needed to do so, you will have to make up for less than stellar performances by some of your co-workers. Consider it your job to get the roller coaster back on the track and heading back up the hill. Every organization’s goal should be to have more positive experiences than negative, but even service recovery situations can earn big points in the constant up and down relationship between a company and its customers.
Tuesday, September 2, 2008
Keep Those Customers!
Picture a large wooden bucket with a hose adding water at the top with a constant flow. The water runs continuously, but the bucket is never quite full. Unfortunately there is a big hole in the bottom of the bucket.
That is how most companies operate. They spend a lot of money on marketing initiatives trying to increase their market share in their particular industry. Meanwhile, long term customers are leaving and taking their business to a competitor.
Many sales incentives and programs are established to draw in new customers with little regard for an existing one. For example, the cell phone industry runs all kinds of promotions to attract new customers. I was a customer of a particular provider for several years. My average monthly phone bill was around $200. My contract had long expired and I was in need of a new phone. I was told there was no way to take advantage of some of the offers available to new customers.
Let’s think about that situation.
- I was a proven customer with a high monthly bill who paid the full amount each month prior to the due date.
- I knew how to use all the features of the phone and did not require any assistance from the customer service center.
- I had been pleased with the phone and service and had been a loyal customer for three years.
- I frequently referred friends and family to this provider.
Most organizations would consider me an ideal customer, yet this phone company did not appear at all interested in keeping my account.
For the reasons listed above, an existing customer is almost always worth more than a new customer. I have heard it said that it takes six times more resources to attract a new customer than it does to keep an existing one.
Some companies have started to understand that if they spend a portion of the money previously spent marketing to new customers on keeping current customer satisfied, they will benefit financially.
So why do customers leave? Take a look at the following list and the percentage of people who left for each reason.
3% move away
6% develop other friendships
9% for competitive reasons
14% are dissatisfied with the product or service
68% because of an attitude of indifference by the owner, manager, or some employee
Over two thirds take their business to your competition due to reasons other than the product or price. Customers are fickle! Unless they have no alternative, a customer will leave if they are offended or if their needs are not being met by a member of your team. Your company may indeed have the best product or service, but if not delivered by attentive staff and leadership, a customer is likely to buy from someone who treats them with respect.
It is critical that you have accountability processes in place. The way a customer is treated plays such an important role in retaining them, so it is critical that every employee on your team be trained to deliver world class service. You can’t be with every customer at all times, so you must ensure that your staff is delivering the quality of service you would expect if you were personally handling the interaction.
There will be times when a customer decides to leave. On those occasions, it is important to talk to them and identify the core issue that resulted in their decision to take their business elsewhere. It is important that the person soliciting this feedback be objective and not defensive or argumentative. At this point, the most important thing is to learn from this former customer to avoid repeating the same mistakes with current customers.
On rare occasions, you may be able to win the customer back simply by talking with them and resolving their immediate issue. You have a much better chance of retaining your customers if you are able to gather feedback and act on it before the customer decides to go to a competitor.
Remember, in most instances, your current customer is your best customer!
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