Posts Tagged ‘Customer Service’

Generosity

Tuesday, July 13th, 2010

By Doug Stephens

Generosity: noun~ Willingness to give or share; unselfishness

All successful relationships are underpinned by generosity.

The willingness to give or share without expectation of repayment is central to healthy, human interaction.  It doesn’t matter what you give.  It can be your time, your praise or simply your attention but without generosity, relationships tend to vanish in a cloud of selfishness and resentment.

This is equally, if not more true with business relationships.  Long-term success in retail comes down to fundamental beliefs with respect to the whole concept of generosity.  Specifically, you either believe that generosity is almost always rewarded or almost always abused.

You can easily spot businesses that believe the latter.  They’re the ones that have you deposit a quarter to use their shopping cart.  The ones that refuse refunds without a receipt. Those who link any charity work they do to a sales goal or promotion.  They cut the holiday employee turkey to save a few dollars. And you probably can’t use their restrooms either.  All because their belief system suggests that generosity is something that is abused and taken advantage of.  As the English poet Alexander Pope wrote “…all looks yellow to the jaundiced eye.”

Rare businesses, however, take the contrary view.  These businesses believe that the simple act of giving – whether to customers, employees or the communities they operate in is simply the right thing to do –it’s just good karma.  They provide their employees with great places to work, their patrons with great places to shop and their communities with businesses that give back.  They regard customers as people – not mere transactions.  Employees are part of the team – not simply headcount.   They give based on the belief that people are basically good and that their generosity will indeed be repaid – if not today then tomorrow and if not tomorrow then someday.

The unfortunate thing is that generosity is no guarantee of success.  Indeed, some of the most successful businesses in the world are also the greediest.    The consolation, however,  is that only those businesses who give generously will leave a positive impression on the world.  And perhaps that’s the truest definition of success.

An Inconvenient Truth About Bad Customer Service

Tuesday, June 29th, 2010

By Doug Stephens

The effects of bad customer service may take years to prove fatal but the eventual outcome is almost always corporate extinction.  Despite this, surprisingly few companies turn these negative situations around and actually improve their customer service position.  And as counter-intuitive as it seems, many businesses act like they don’t even care.

It’s a lot like global warming

Whether you believe the science or not, most would agree that the world’s climate is changing.  With this change we are seeing potentially devastating and irreversible impact on the planet’s ability to sustain itself and its inhabitants, for that matter.  Unchecked, the problem will almost certainly eradicate life on earth.

So why have we done so little to reverse the trend?  I mean the survival of the planet is a pretty big deal!

According to Dan Ariely, a professor of psychology at Duke University and author of the bestselling book, Predictably Irrational, there are three primary reasons for our apparent apathy when it comes to huge problems like global warming.  Firstly, the problem seems simply too large for any one of us to comprehend solving.  Secondly, it’s a problem that threatens future rather than immediate devastation.  Lastly, we have trouble visualizing how the little things we do as individuals (like using more energy efficient light bulbs or recycling), can contribute to solving the seemingly insurmountable problem.  The end result is that we don’t become emotionally invested in the solution.  We check out.

This same theory holds true  to systemically bad customer service.  Despite leadership droning on about the need for improved customer service, front-line staff often see the problem as too large, too complex and beyond their individual capacity to correct.

The Prius Effect

Perhaps no other automobile has become as synonymous with the environmental movement as the Toyota Prius.  It seems safe to assume therefore that people who own a Prius are more environmentally conscious than those of us who don’t.  However, there’s no credible evidence of any correlation between driving a Prius and having an elevated environmental consciousness.  Apart from owning a hybrid vehicle, Prius owners are much like the rest of us.  They don’t exercise any more day-to-day concern for the planet than we do.  In fact, one study concluded that a mere 27% of Prius owners made the choice based on a strict concern for the environment – most drive one to save money.  Nonetheless, we perceive Prius owners to be more eco-friendly.  In other words we infer from their choice of vehicle that they actually care more about the environment than they actually do.

So, what if we took this idea of inference a step further?  What if you could create a similar effect when it comes to delivering customer service in your business?  What if you could define specific actions, that if performed, would infer to customers that your employees appreciate them, even if they don’t?   Think about it.  Could you program specific events into the customer experience that make even the least engaged staff member seem to actually care about the customer?

Stop Talking About “Customer Service”

The first step I would advocate is to stop using the term “customer service”.  It’s problematic for a few reasons.  Firstly, it implies servitude and who wants to be thought of as a servant?  Secondly, it’s nebulous, making it difficult for staff to know if they’ve really provided it or not and also making it difficult to measure.  Lastly, it’s too subjective.  Great service to one person may be mediocre to another.

Instead, let’s call customer service something different – I’ve always liked the term the path to purchase.  And let’s agree that along the path to purchase certain defined, measurable and positive events should take place.   These events might range from holding a hotel door open for guests to shaking a customer’s hand– it doesn’t really matter as long as they’re defined, measurable and widely accepted as being positive behaviors.

So now, instead of pleading with staff to “improve customer service” – which is undefined, impossible to measure and open to interpretation, you can be instructing them to perform the specific tasks you’ve engineered into the path to purchase.

As a hotel guest, I don’t really care how customer-centric the bellhop is.  If they smile and hold the door open for me, I’ll infer from their behavior that they care.  As a shopper I don’t know if the salesperson appreciates my business or not but if they come out from behind the counter to give me my purchase while shaking my hand, I’ll infer from their actions that they do value me.

Behavior Drives Emotion

But how do we solve the problem of apathy?  How can we get our staff emotionally invested in delivering a better customer experience?

It’s commonly accepted that what we do affects how we feel.  Change the behavior and you’ll change the emotion.  It follows then that if you get staff consistently doing things along the path to purchase that clearly indicate caring for your customers, eventually those same staff will care about customers.   There may also be staff who choose not to come along for the ride but trust me, with a clearly defined set of actions on the path to purchase, they’ll stand out like a Hummer in a sea of hybrids!

How Consumers Killed Customer Service

Wednesday, December 16th, 2009

By Doug Stephens

A recent Brandweek article titled “Retail Customer Service Stinks” reported that the service received by shoppers in SALEover 1000 retail interactions in the study rated 48.2 out of a possible 100 points – a flunking grade. The study, conducted by the research firm The Salt and Pepper Group, examined retail interactions in 73 stores over a four-month period. It went on to cite specific issues including the failure of staff to identify selling opportunities or handle multiple customers. Essentially, staff weren’t actively anticipating or delivering on the needs of their customers. 

As the report made its way into the retail community it was met with a combination of surprise, disgust, and a dose of self-righteousness by industry experts. There was a landslide of opinion and commentary citing the need for retailers to properly train their staff to sell and the failure of store management to lead their salespeople. Some suggested that it was the fault of retailers who treat employees as costs instead of assets. And others called out the need to get back to the basics of retailing.

The Big Problem

The problem is that retailers didn’t make this happen. We—the consumer—did. The fact that “service stinks” is entirely our fault. We’re the only ones to blame.

We demanded the lowest airfare wherever we flew. We went to the buy-one-get-one sales. We made Walmart what it is today. We camped out for Black Friday. We built the dollar store channel. The bottom line is that we voted with our wallets and customer service lost. We killed customer service.

Minimum Wage = Minimum Service

The consequence of our lust for cheap stuff combined with the retailer’s hunger for profit is that there’s barely a working wage left in it for most retail employees. And yet with most retail workers at or near minimum wage, we somehow expect them to sweep us off our feet and treat us to a profound in-store experience. We expect them to dazzle us with their knowledge and helpfulness. It’s delusional.

And our preference for price didn’t only erode wages, it trimmed recruiting costs, eliminated training budgets, slashed worker medical benefits, and put a virtual moratorium on employee corporate mobility. We made it so. We demanded it.

Service Isn’t Completely Dead… Yet

Despite the devastating effect of discounting on the market in general, there are still some remaining vestiges of service. The Apple Store, Lululemon, Nordstrom, and Publix Super Markets are a few names that consistently rise to the top in discussions on in-store experience. Their closest commonality apart from superior service is that none of them have staked their reputation on price; they haven’t allowed us to drag them into the mud like so many others.  They prove that in a world of price promotion, it’s still possible to differentiate and create remarkable brand experiences that people will pay a premium for. Rarities like Southwest Airlines that manage to combine low price and great service are exactly that – rarities. In the vast majority of cases, we get exactly what we pay for (or don’t pay for) as it were.

The question we need to ask ourselves the next time we’re confronted with bad service is: would we pay more to have a great experience? Would we literally reach into our pockets and pay an extra 20 percent or more for excellent service? It’s not as easy a decision as one might think.

Trades and Concessions

For most of us it’s become a matter of making trades and concessions based on the type of product, the brand, or the store we choose to shop at. Just as we don’t expect the lowest price for a laptop at the Apple Store, we can’t in good conscience demand brilliant service at Sears, whose stores have become a virtual sea of sale banners. And if in fact we really can’t live with that trade-off, then I’m afraid we’ll need to rethink our definition of value as consumers and as a society.

51.8 Reasons to smile

If all we conclude from this study is that retailers scored 48.2 and “service stinks” then we lose again. The real story here is that there are 51.8 points of unclaimed turf for smart retailers who want it. The service gap has never been larger. Never have the opportunities to shine and create remarkable customer experiences been more abundant.

As far as I’m concerned that’s good news for the future of great retail.

Adventures in Retail

Saturday, March 28th, 2009

picture11A couple of weeks ago I met Bruce Poon Tip, Owner of G.A.P Adventures, The Great Adventure People. He was giving a luncheon keynote at a local business club. G.A.P Adventures, which Bruce founded in 1990, is widely regarded as the premier adventure travel group in the world. They have really come to define their category and as a result have been showered with too many awards and accolades to mention in this short blog.

Bruce made a point in his talk that really stuck with me. I think it’s something all businesses and particularly retail businesses should incorporate into their thinking. He told us that in developing G.A.P, he strived to make the time spent transporting people from one place to another a memorable part of the tour itself and not just a boring shuttle from points A to B, as it is on many tours.

So, on GAP tours it’s not unusual to find yourself riding on top of a bus through a busy street somewhere in the Middle East, racing along in a safari vehicle, or scooting around in a rickshaw. All forms of transportation are fun, unique and authentic to the locale. The point, is to make getting there as exciting as being there.

Now, take that idea to retail, where we tend to focus a lot on product, placement and price. Can you turn the ordinary in your store into the extraordinary? Can waiting in line at the checkout become a memorable part of the experience? Can finding what you’re looking for in the store become exciting, informative or fun? Can simple things like your in-store music, your staff uniforms, your shopping bags actually add to the excitement of your store and make being there a rush? The answer in all cases is yes. You just need to insist on it and begin to make the right changes one at a time.

Make your store an adventure and you, just like G.A.P, will leave customers with truly memorable experiences!

Get Adobe Flash playerPlugin by wpburn.com wordpress themes