Tag Archives: Commitment

Two Revolutionary Growth Strategies

The Wall Street Journal, in its April 19th edition, reports that “Retailers Try on New Sales Tactics”.  The new tactic?  Companies like JC Penney, Macy’s, and Home Depot plan to focus on customer service.  (Gasp.)  My guess, this new strategy could be downright revolutionary.

For starters, this ought not to be called news.  But since the WSJ found it noteworthy, let’s identify a couple of salient points.

  1. Customer service is the best way to drive top line growth – JC Penney
  2. Assisting customers assists the company – Home Depot is training cashiers to ask if customers have found what they sought

It shouldn’t surprise us that customer service helps companies grow.  What is important in the article is that customer service must be a constant focus, not a one-time program.  To achieve meaningful and lasting results, you and your employees must develop customer service muscle memory so that the first question we ask is “how can we help our customers get value?”  Companies like these may get short term results by reinvigorating their focus on service.  Mr. Spahr, at Home Depot gets it right when he indicates that strong relationships draw customers back into their stores.

The pivot point is that customer service is not a program, per se, but a culture, a way of doing business, and a commitment to social responsibility.  Cultures must be nurtured lest they gain an unintended life of their own.

Strike One… You’re Out

The saying “you get only one chance to make a first impression” has never been truer.  In an age where information flows quickly and freely customer service must be a reason prospects buy from you and customers return to you.  Investing in a positive, memorable customer experience creates a strategic advantage.  Here are two reasons why this is true:

  1. Options – Think about the last time you booked travel.  How much do you care whether you fly American or United?  If you exclude frequent-flyer programs (which with all the blackout periods ought to be renamed frequently disappointed programs) prices are generally the same,  peanuts still come in 0.25 ounce containers, and our surprise is still genuine if our luggage shows up on the baggage carousel.  Airlines have achieved commodity status, consumers have options, and the cost to switch is low.
  2. Transparency – Consumers are able to research experiential information with a few mouse clicks.  Social media magnifies customer service blemishes yet also amplifies outstanding service.  Social media and the blogosphere make information (the good, the bad, and the ugly) instantly available. Nielsen studies show that 90% of consumers trust each other’s recommendations and 70% trust online recommendations.

Sharing the good, the bad and the ugly is seen as a huge risk precisely because it may lure customers to other options.  But those who worry that “negative comments may cost us business” miss the point.  Poor products with dismal service lose business. The choice is whether your company is committed to creating a winning product that customers love and bask in their accolades or hide from faults and slowly lose your customers.

The pivot point is to start with a quality product and continue the experience with transparent customer service.  When you do, transparency becomes a game-changer because companies that make and fix honest mistakes get more than one strike.  Play ball!

Customer Service Superheroes – Leaping Tall Buildings

In a previous post I picked on a Shutterfly, Inc. transaction to demonstrate how easy it is to spot customer service problems.  Now, let’s turn our attention to what they should do to atone for their customer service sins.

First, a recap of their transgressions:

  1. Checkout step did not accept the promotional code.
  2. Customer Service Team unaware of current sales/marketing promotions.
  3. Customer Service Team has insufficient tools to interact with customers on their terms.
  4. Service response did not yield desired result on order ($10 discount).

To recover (in order of importance): Continue reading