Archive for the 'Customer Service' Category
I came a cross a franchise, but still considered a small business, that has done quite well despite our economic condition. It’s called the Tile Outlet in Monterey, CA. Although their discounted prices and great selection is attractive, it’s their customer service that separates them from their competitors. The last time I was there, I witnessed their salesperson/service provider connect with customers on a human level. For instance, a customer walked in and immediately the employee called the customer by name. Obviously, this customer had been there before, but when the customer greeted the employee back and asked how he was, he responded with, “It’s great now that you are here!” I have no idea if this was a true statement, but the customer was directly impacted in a very positive way. They chit-chatted for a little while and then went into their business transaction. In my previous postings, I have stressed the importance of connecting with customers on the human level, before going into the business side of a service interaction. There is no doubt in my mind, this was a Positive Defining Moment for that customer, which will build Customer Loyalty. Companies that can connect with customers on the human level, can and will excel in their business.
Another differentiating aspect of this small business, is the knowledge of the service provider. He has an interior design background and provides great suggestions and explanations of their products. I was only there for a while that day, but I came across a review of this small business on the yellow pages website. Here is the link to the review, but I wanted to post, what I consider the differentiating factor that this customer experienced, it was as follows:
“At the Tile Outlet we found an excellent selection of tiles and counter tops, but we were most impressed with the service. Efrain’s background in interior design made all the difference to us.”
As you can see, the combination of the service and knowledge of the service provider, made this experience a positive one for the client, and I assure a loyal customer as well.
If anyone in the Monterey area is contemplating remodeling their kitchen or bathroom, I strongly suggest stopping by the Tile Outlet. Even if you do not have a good idea of what you want to do, the knowledgeable service provider will guide you through all their available options. Also, I would like to hear your experience if and when you decide to stop by for a visit.
Although many companies consider Customer Service (CS) a cost center of sorts, the ones that value and invest in CS, tend to be the ones that are most successful. We as customers have seen the companies that value little, if any, in CS. You know the ones that hire teenagers and/or have the least experience employees to deal with customers either face-to-face, on the phone, etc., that can severely hurt the company with bad CS. The front line people, or what we as Service Providers’ term it, “client facing” employees, are the employees that have the most impact on clients. They, the CS providers, are usually the first and last impressions on the clients. Companies that value and invest on the employees that impact the clients DIRECTLY are obviously noticeable, because as customers, you leave with a positive experience after a service interaction with those companies.
As I mentioned previously, creating Positive Defining Moments (PDM’s) will help gain Customer Loyalty. The best and fastest way is to connect with your customers on a human level, by providing Caring Service. By applying the Two Principals of Caring Service, you create PDM’s. Each Principal can be applied by using its own set of skills and behaviors. The principals are:
Principal 1: DEMONSTRATE YOUR INTEREST AND CONCERN.
Mastering the following fundamental “client-facing” skills can smooth your way in any service interaction. Often underestimated (overlooked/undervalued), these skills can serve your company as much, if not more, than deep technical or procedural knowledge. The skills are:
Listen Attentively: Customers have a difficult time “telling” a CS Provider their feelings or thoughts, yet they can often convey them if you listen attentively. While speaking with customers, listen to more than the words they are saying. It’s important to pay attention to the customer’s voice tone and body language, in order to get a sense of the thoughts and feelings behind the words. The following behaviors can help demonstrate to customers that they are being listened to.
- Give customers your immediate and full attention. As soon as a customer needs attention, the Service Provider (SP) should immediately set aside any competing tasks so they can focus on the customer and their needs. By listening carefully and making a conscious effort to avoid distractions, the SP will demonstrate sincere interest in and availability to the customer.
- Use positive body language. Often times, your body language tells others more than your words do, when dealing with customers face-to-face. SP’s must let their customers know that they are interested by using eye contact, nodding with agreement, appropriate expressions, and an open, inviting posture, such as leaning forward slightly, avoiding crossed arms and fidgeting. Even if on the phone, the SP can help keep their tone of voice positive, by maintaining an open inviting posture as they speak.
- Encourage customers to talk. A SP can demonstrate that they value the customers’ thoughts by hearing them out. Customers should be encouraged to talk by using phrases such as, “Please, continue….” and “What were you going to say?”
Project a Willingness to Help: As a SP, it is important to speak to customers in a manner that is perceived as positive and helpful. The words a SP chooses and the confidence, with which they speak, will let customers know that the SP is ready and willing to help. The following behaviors can help demonstrate this skill.
- Be polite. Showing simple courtesy for customers is the first step in showing them that the SP wants to help. Use the customer’s name (if appropriate) and always say “please” and “thank you”, it will go a long way.
- Convey care in your tone of voice. SP’s should always avoid sounding uninterested, unemotional (“flat”), demanding or defensive. Be sure that the SP’s voice expresses interest, understanding and care. Try using phrases such as, “I see…” and “Let me be sure I understand…” which will help keep a positive tone of voice, especially over the phone. A good telephone voice is strong and alert, expressive and pleasant, distinct and clear.
- Focus on what you can do. Customers expect things to be explained to them in a positive light. They do not want to hear what you as a SP can’t or won’t do, they’d rather hear what you can and will do for them. Here are a few examples that can help avoid negative reactions and create positive impressions: Try to avoid saying; “There is no way…” and replace with “Here is what I can do…” or “That’s not my area…” with “Let’s look at the possibilities…” or “I am not sure…” with “I can assure you that…”
Convey Respect: When SP’s begin thinking of customers as valued partners, they convey a message of respect. After all, without their partnership, your place of business would not exist. The following behaviors can help demonstrate this skill.
- Ask permission or suggest. We all know no one really likes to be told what to do, same goes for customers. As a SP, when you need to provide customers with information, be sure you make suggestions and ask for permission. Here are a few examples of words and phrases that will help avoid negative reactions and create positive impressions: Try to avoid saying; “You have to…” and replace with “Is it okay with you if…” or “The only way…” with “May I suggest…”
- Avoid discounting. What I mean by discounting is when someone minimizes or ignores some aspect of a person. Dismissing a customer’s feelings or needs, making judgmental statements, and avoiding responsibilities are examples of discounting. As a SP, you must avoid words or phrases such as; “What were you thinking?” or “You shouldn’t feel….” and replace them with something like, “I can see how you would think that.” or “You have every right to feel…”
Principal 2: COMMUNICATE THE CUSTOMER’S VALUE.
To communicate the customer’s value, the following skills are called the Four A’s. They are easy and quick, yet powerful ways to communicate to customers that you value them and their business. The skills are:
Acknowledge the customer and his/her situation: The best way a SP can demonstrate that they relate with a customer, is acknowledgment. You can emphasize with the customer’s circumstances, feelings, or both. The key here is being sincere, however. Some examples of of acknowledging your customer’s situations are the following:
- “I understand why you need a solution immediately.”
- “That must be exciting.”
- “That would also confuse me.”
- “I see that you are in a hurry.”
- “I’d be concerned too.”
- “Oh, that’s terrible.”
- “I’d be impatient if I had to wait.”
Appreciate something about working with the customer: Appreciating something that you have enjoyed about a customer sends a message that you see this person as important. It means saying “thank you.” Here are some examples that a SP can use to show appreciation for their customer:
- “I appreciate the time you’ve put into this.”
- “Thanks for giving me all that information.”
- “Your patience is greatly appreciated.”
- “Thanks for getting back to me so quickly.”
- “I’ve enjoyed learning about your company.”
Affirm something the customer has said or done: You can validate or confirm a choice that a customer has made by affirming. It conveys a mutual respect and that you value the customer’s thoughts and input. Try using some of these examples of affirming:
- “Given what you’ve told me, I think you’ve made the best choice.”
- “It’s clear you’ve spent a lot of time researching this.”
- “I never thought of using the product like that. What a great idea.”
- “You’re absolutely right; that would be more cost effective.”
Assure the customer of good service. A SP can easily impress the customer by taking ownership of a situation. Assuring the customer of good service and then following through builds confidence, which in turn, earns loyalty. Here are some examples of assuring a customer:
- “I’ll make sure this is done by close of business.”
- “I’ll call you in one hour with an update and ETA.”
- “I’ll issue the credit immediately.”
- “I’ll personally follow through with this problem.”
As you can see, Caring Service sounds like simple common sense, but by practicing these skills in each Principal of Caring Service, you will no doubt be creating PDM, but more importantly, Customer Loyalty.
I hope this article can help your business create Customer Loyalty and if you have any other methods of providing Caring Service or any comments, I’d love to hear them.
Serving customers is one of the most challenging jobs anyone can have. Since Customer Service Providers work directly with customers, they have a huge impact on the customer’s actions, and in turn on the success of any business. Companies that emphasize the importance of customer service, tend to be very successful. The goal for any company should be to establish Customer Loyalty, because they add so much value to your business, as I previously discussed.
Some companies create customer loyalty simply by their unique product. Apple comes to mind in this instance. But there are a lot of companies with many competitors that their products seem to appear alike. So how do these companies create loyal customers? The only real way is in how a company services their customers. The best way to differentiate your company from your competitors is by caring for customers, or connecting with customers on a human level.
By caring, I mean providing service that is attentive, cheerful and respectful to your customers. Show your customers that your company is interested in and care about them as people. and that they are valued. I know, this sounds like common sense, but you’ll be amazed how many companies either do not know this or ignore it entirely. Caring for your customers will only make their experience with your company a positive one, thus creating loyalty.
However, what I have noticed from my experience working as a Service Provider is that there are many challenges that prevent companies from making customers feel special and valued on the human level. It can be anything from a company’s standard procedures, lack of technology, too busy, phone calls, stress, etc. It really can be anything that occupies the service provider enough to forget or lose concentration to connect with the customer. It can be very difficult providing friendly and caring service when the service provider is being blamed for a service issue or something out of their control. Nevertheless, it is vital to sustain a caring attitude despite all these challenges.
In future posts, I will discuss two principals that will help diminish these challenges and distractions, which will also help create Positive Defining Moments (PDM’s) and increase Customer loyalty. The first principal is to “demonstrate your interest and concern” and the second is to “communicate the customer’s value”. Each principal requires a set of skills that if mastered, can help eliminate challenges and distractions in order to maintain a caring attitude, thus creating PDM’s and more improtantly customer loyalty.
On my last post, I discussed that delivering Seamless, Trustworthy, Attentive and Resourceful (the STAR Qualities) service, your company can create Positive Defining Moments (PDM’s) on every single service interaction. My next topic will be on knowing when PDM’s have actually been created. This is very difficult to determine, however, you need to know that your customers judge or grade your service during every transaction.
In general, customers are clear about what their expectations are and judge their service experience by comparing your company’s performance against what they expected in each Defining Moment. If you think of it like a report card, when your company performs to the customers expectations, the grade they assign that service, will be average, or a “C”. When a customer has a good or bad experience, they will assign a mental grade that will be above or below the average grade, or their expectations. I have included a “Customer Report Card” for a visual reference below:
The higher the grade, the more likely your customers will be loyal. To build Customer Loyalty, it’s important to find ways to “Exceed Expectations” (B’s) or “Dazzle and Surprise” (A’s) your customers. If your company delivers service that simply meets client’s expectations, per my discussion regarding The Importance of Customer Service; 80% of Customers that switched to a competitor, said they were satisfied before making the switch. Meaning they were grading the service they received a “C”. In order to prevent these customers from switching to a competitor, they need to be grading your service a “B” or an “A”.
The heart of providing Stellar Service is trying to create PDM’s, in the Three Dimensions of Service by using the STAR Qualities on every single service interaction, with both internal and external customers. If your company can consistently provide Stellar Service, it will create Loyal Customers for years to come.
In my previous post, I discussed the Three Dimensions of Service where Positive Defining Moments (PDM’s) can be created. I will now discuss how more PDM’s can be created by knowing exactly what customers are looking for in every service interaction.
Regardless of what product, industry or type of service your company provides, customers consistently value and expect four major qualities in the service they receive. Delivering on these four expectations is critical in creating PDM’s. These four qualities are referred to as the STAR Qualities and are listed below:
- Seamless - The ability your company has to manage service factors that are invisible to the customer. Customers want to take advantage of all the services your company offers. However, they want one point of contact and do not want to speak with numerous people or worry about all the details. They expect your company (or an employee at your company) to coordinate events on their behalf.
- Trustworthy - The ability your company has to provide what was promised, dependably and accurately. Customers want to feel they are in capable hands and whatever promises were made are absolutely kept. Although they may want things to go right the first time, they EXPECT a service breakdown to be resolved quickly and thoroughly.
- Attentive - The ability your company has to provide caring and individual attention to customers. Customers want to be acknowledged quickly and politely, and to be treated with respect. They simply what your company to welcome the opportunity to serve them.
- Resourceful - The ability your company has to provide prompt service and creative solutions. Customers want a flexible approach to service. They expect you to meet and handle their requests or needs in prompt and creative ways.
These qualities define what most customers value in your company’s service. Customers want service that is Seamless, Trustworthy, Attentive and Resourceful. When your company provides service that exemplifies the STAR qualities, your company is creating PDM’s. As you can see, the STAR qualities go hand-in-hand with the Three Dimensions of Service. Seamless falls in the Hidden dimension, Trustworthy mostly falls in the Business dimension, Attentive in the Human dimension, while Resourceful embodies all three dimensions. By delivering STAR quality services, your company has an opportunity to create PDM’s every single day.
However, how do you know if your company actually created a PDM? Well you won’t always know. But you need to know that customers grade your service, and your company, during every single service interaction. On my next post, I will discuss How Customers Grade Service.
On my last posting, I discussed how Positive Defining Moments (PDM’s) builds customer loyalty. But how exactly can your company constantly be creating PDM’s? Well we need to look into your service interactions to determine exactly where PDM’s can be created.
All service interactions occur within Three Dimensions of Service. They are the following:
- The Human Dimension - This dimension tends to the emotional needs of both the customer and the service provider. Every customer needs respect, understanding and individual attention. Your company’s skills in the Human Dimension help you meet those needs. Sometimes it can be a cheerful hello, other times by defusing an angry outburst. Your company has human needs as well during a service interaction, such as courtesy and recognition of your expertise.
- The Business Dimension - This dimension tends to the practical needs of a transaction. A business need prompts a customer to seek your company’s product or service. When your company meets these needs quickly and fully, you are helping to create PDM’s. Your company also has business needs, such accurate information to fulfill a client’s request that your company must meet during every transaction. Balancing both these needs, your customer’s and your company’s, is a key challenge of achieving Stellar Service.
- The Hidden Dimension -Much of your service transaction is hidden from your customers. Your standard procedures, the interactions between you and your employees, even your company’s capacity are all invisible to your customers. Your company’s skills “behind the scenes” support your performance with your customers. But you also need to be aware that your customer’s hidden dimension, such as events or attitudes unknown to you, can affect a service interaction.
It takes skills in all three dimensions of service to create PDM’s. Your company can’t control all aspects of the Business or Hidden Dimensions. But you do have much more control over what happens in the Human Dimension. This is where your company has the greatest opportunity to create PDM’s. It is highly recommended to ALWAYS start and end every service interaction in the Human Dimension. A simple “hello, how are you doing” to start the transaction and a “have a great day” to end the transaction will go a long way. Too many companies put most of their effort in the Business Dimension or discuss way too much of the Hidden Dimension with their customers. It is in the Human Dimension where your company can definitely differentiate themselves from your competitors.
In order for your company to continue creating PDM’s, you need to know what your customers are looking for in a service you provide. In my next post, I will discuss the Four Qualities Customers Seek in every service transaction.
So we have discussed the Importance of Customer Service (CS) and the Benefits of Customer Loyalty, let’s now look into how we can Create Loyal Customers. Before we can discuss that, we need to think as a customer for a bit first. We as individuals are customers everyday, even at work. We are customers to our vendors and to our internal departments. How many times have we come across bad customer service? Many right, but every so often, we come across a service interaction that is memorable because something happened that left a strong impression of that service on us.
That event is called a Defining Moment, which by definition; is any point in time when a customer judges the service your company provides, thus judges your company as a whole. When a member of your company greets a customer, answers a question, offers options/suggestions, offers to solve a problem/issue, or even tries to recover from a service breakdown, can all be defining moments.
Depending on how your company handles each defining moment, your customer can have a positive or negative experience. Your company’s action, in short, in each defining moment can either strengthen or weaken customer loyalty. When your company strives to create Positive Defining Moments (PDM’s) you help build loyalty. This is the heart of Stellar Service, your company’s effort to create PDM’s.
Your company is defined in the eyes of your customers. Your company’s actions, moment by moment, either build or erode customer loyalty. When your company creates PDM’s, you help ensure that your customers will want to remain loyal to your company, thus helping in its success.
However, it takes more then simply being aware of defining moments and making them positive ones as much as possible. On my next discussion, I will go over The Three Dimensions of Service, in which PDM’s are created.
As discussed on my previous post, Customer Loyalty is key to any successful business. I will discuss how to build loyal customers, by providing Stellar Service, on later posts. But I want to focus on the benefits of customer loyalty.
Loyal customers show feelings of trust and confidence in your company. These feelings inspire customer actions with clear benefits. They resist offers from competitive companies, recommend your business or service to others, and are willing to work with you when they experience a service issue or breakdown. From a business perspective, when you hear a loyal customer complain, they are often simply trying to make your business or service better. Wise companies listen to these complaints to try and improve their business or service.
Here are the Four main benefits of customer loyalty:
- Retention - Customers that continue doing business with your company, provide a solid base for success. If they purchase additional products or services, the payoff is even better.
- Referrals - Customers that encourage others (friends, family or even strangers) to choose your business or service over the competitor’s, save you the cost of attracting new customers. Per my previous post, it costs 5 times more to attract a new customer then to keep an existing one.
- Reputation - Customers that speak well of your company, increase your public support, as well as positive interest from investors, future employees, and the media.
- Revenue - Customers that give your company a larger share of their business, increase both your overall revenue, plus the recognition that comes with success.
These benefits are referred to as the Four R’s: Retention, Referrals, Reputation & Revenue. As you can see, Loyal Customers do provide valuable benefits in helping a business become and remain successful. It is to any company’s benefit to create customer loyalty.
In my next post, I will speak about How to Build Customer Loyalty.
Having worked in Customer Service (CS) for over 12 years, I will be sharing the values and know hows of providing Premier Customer Service. In fact, I am a Certified Facilitator for my company, via Achieve Global, so I will be sharing over the next few weeks the concepts used while Facilitating several sessions regarding CS. Ever since working in CS, I have little to no tolerance for bad CS as a customer. I get frustrated with companies that do not value CS. Although I have read several articles about companies, such as Zappos.com, that are recognizing CS as a means to building loyal customers and moving away from the idea that CS is simply a “call center”. Loyal Customers is key, always have and always will. So how do companies build customer loyalty? By delivering or providing “STELLAR SERVICE”! I will describe exactly what stellar service looks like in later posting, but want to first go over some very fascinating facts about customers:
- It costs a company an average of 5 times as much to attract a new customer as to keep an existing one.
- On average, dissatisfied customers tell 10-16 people about their negative service experiences.
- It takes about 12 good service experiences, for a company to overcome a single bad one.
- 91% of unhappy customers won’t buy again from the company that displeased them.
- Of customers who switch to a competitor, up to 80% say that they were satisfied before make the switch to the other company.
The last fact most people find confusing. But it simply states that 80% of customers switch even if they were satisfied, or their expectations were met, with a company’s product or service. In order for a company to be successful, they need to exceed client’s expectations. These are amazing facts that most companies either ignore or simply are not aware of. All these facts lead to the importance of building customer loyalty.
In my next posting, I will go over the “Four Benefits of Customer Loyalty”.
I have been working in most likely the highest level of customer service for over 12 years now. When I am out shopping, I have no tolerance for bad customer service. So when I read about Zappos’ high attention to premium customer service, I commend them. They have changed the mentality of treating customer service as a “cost center” and recognizing it as a means to building loyal customers. The most impressive tactic they are using is paying employees $1,000 to quit, after a month of employement, if they do not like their job. Wow, very impressive. I mean, in my business, CS is so valuable to retaining customers that it is extremely important to have employees who want to work there and do a good job. Plus after a while, it is very difficult terminating an employee now a days. So the $1,000 incentive maybe the way to go to get rid of the employees that will not excel in CS at an early stage.
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