Archive for the 'customer service' Category

A Leader’s Secret Weapon

  “Can’t talk…gotta go”. 

 “Hey, boss, hang on…I got a question”.

 “I said I gotta go…upset customer”.

Humm….sound familiar?  Boss can’t talk to employee, has customer issue to resolve. And, of course, as we’ve all been taught, THE CUSTOMER COMES FIRST!  Or does he/she?

Take a closer look at how you really outght to run your business.  I have a slogan; I use it in all my triaining/consulting sessions. It goes like this: “CRM [Customer Relations Management] begins with ERM [Employee Relations Management].  Get my point?

I don’t care what business you are in, if you have customers, you need to focus on serving them in a special way.  If you don’t, in this economy, with choices galore, they will disapprear like the morning fog.

So, how do we successfully serve, retain and profit from our customer base? Through our people.

If you want happy customers, start by building a culture that includes and is based on happy people. “Can’t be done these days”, you say.  Wrong. It can is is being done…today.

Without a long explanation, suffice to say that a primary cause of business failure, is a preceding failure to focus on your key resouce, the human resource.  We work real hard on planning, figuring out how to execute, etc. But, when it comes to the people on whom we depend to make it happen, we spend little time and attention to ensure success. Period.

A moment on something I learned as a young, know-nothing econ student; The Pareto Principle. All who sell, or have ever sold anything, have heard of it.  Still, if the PP is unfamiliar, let me lay it out as concisely as possible.

In 1906, an Italian eonomist named Vilfredo Pareto, while studying the laws of distribution [how things are naturally spread out], discovered something important. Simply, that a majority [he figured about 80%] of the value of time spent and effort expended, came from a minority [he fiuured about 20%] of the things we do.  We get most of the return on our time and effort from a very few things we do during a typical day, week, month or year. Lately, this distribution principle has been termed, The Pareto Principle.

The lesson, to a young sales rep is, figure out who your highest potential customers are and spend you time with them. Don’t waste time on the masses that return little in payback for time invested.

The PP can be applied to management time in any business, as well. Ask do you spend your day….on things or on people?  Because people are tougher to deal with and control than things or tasks, we tend to gravitate to things we can control. Even familiar problems precede dealing with our people in terms of the percieved degree of difficulty and discomfort. So, for most managers/leaders, people come second.  The team comes second.

Now, that would be fine…except for one’s our people who enable us to succeed, to reach management and company objectives.  No doubt about it…as good old Vilfredo learned, you will get more bang from your time use and focus buck when you spend it on high payback activities that involve people!

What kind of activities? Oh, let’s start with recruiting, attracting the best in your business segment. Then, how about training them; ensuring they succeed, which, of course is hugely motivating to the worker, leading to greater productivity and lower staff turnover. And how about follow up coaching; reinforcing learning to form strong productive habits? Am I getting through?

Stop focusing on things, spend your time with your people and the investment will be returned 10 fold.

Smart managers and leaders know the secret to success…the secret weapon; the Pareto Principle.


In Tough Times, Smart Businesses Focus on Differentiation

I do lots of presentations on serving the customer.  And each time I begin, I see the faces up front, doubting, hoping, wondering “What is there about customer service that hasn’t been said, and said, and said again?”  “Please, don’t tell me to do what we all know I cannot do…make them love me!”

So, I ease into the topic.  “Why” I ask, “do you suppose customers fire us?” I get blank stares.  Savvy managers know it’s typically not anything we’ve done to the customer…it’s the total impact of the customer experience that deals the death blow.  I forge ahead.

“To understand why we are fired by our valued customers, we must look at how they became customers in the first place!”  I talk about how customers are sold; how we set expectations.  And I do that because that is the starting point for developing a serious reputation for service excellence.

Now, I’m a consultant working mostly in the home services industry…landscaping, lawn care, pest control, etc.  So, my clients typically don’t interact with customers face to face that often…unless of course, there is trouble. Then, half of them cancel service without ever letting us know of their dissatisfaction! Wow! What’s a service company to do? Is there a process that will translate into customer loyalty?  Briefly…sure.

This is a big topic.  For purposes of this post, I simply want to expose the topic and see what interest there is in exploring the process for building what I refer to as E-Service or, defined my way, E for excellence in service.

What is E-Service? My defininition is ‘doing whatever it takes to make each customer feel special.’  That’s it.  Not complicated but not easy either.

Is it possible? Yep, I work with businesses doing it every day.  How do they make it happen? Again, not complicated…but not easy either.  They go about the work of creating a true CULTURE OF EXCELLENCE.  It can and does happen. I see it, so, I know it’s real.
What are the requirements? First, and most vital to success, is a top down recognition that, without a reputation for service excellence in today’s service industry, you have one and only one thing to offer….price. And, as we all know, when you sell with price, you lose customers the same way…to the first ‘low baller’ who comes along and undercuts you.

It is possible to differentiate with service. This sort of differentiation is not new. Nordstroms and Southwest Airlines, each a representative of the high and low end products in their respective industries, have done it for decades.  So, it can be done.

In hard economic times…like the ones we face today and will in 2009, I believe it’s worth looking at creating added value through E-Service.  As I said, it involves and requires a paradigm shift for most organizations. Still, it can and is being done.  Some of initial moves are bullet pointed below.

  • Recognition that selling price leads to low quality sales and no customer loyalty.
  • Setting reasonable expectations is a must in the marketing-sales message.
  • The sales process must provide continuity with the marketing message and brand reputation.
  • Service delivery must mirror expectations set.
  • The E-Service company will subscribe to the philosophy that “If you see a problem, you own the problem.”
  • Service delivery and satisfaction levels are closely monitored. Results drive business tactics.
  • Employees are trained and cross trained to appreciate all team functions.
  • Communications skills are an absolute….and using them is NOT an option.
  • Customer ‘touch points’ are maximize and a personal, almost intimate relationship developed.
  • E-Service companies establish customer focused lines of authority and a reasonable escalation policy for problem-complaint resolution.
  • E-Service companies have a well thought out ‘service recovery’ process, ensuring that quick problem resolution resulting in complete customer satisfaction and brand strengthening.

These are a few of the skeletal fundamentals that are basic to the E-Service philosophy.  If you are interested, let me know it with a comment below.