Tag Archives: Competition

Customer Service in a Monopoly

Newsflash!  The White House has consulted with industry leaders to help government improve its ability to deliver customer service.  I’ll generally endorse any efforts to improve service but forgive my skepticism regarding the White House’s chances of success. 

As a monopoly, they have little incentive to deliver customer service.  Here’s what’s missing:

  1. Competition – We the people, can’t switch governments if we don’t get good customer service.  Without competition, what compels any company to deliver the type of service people want/need?
  2. Culture of Change – With no competition, market forces are meaningless so a monopoly favors the status quo.   Monopolies encourage inertia, not innovation.
  3. Accountability – If a battery bomber can walk onboard an airplane and no one is held responsible for the security failures who will be held accountable for poor customer service?  And if no one is accountable, who will sponsor and drive the change?
  4. Extrinsic Rewards – Even on the off chance a customer-centric culture takes root, the government, in its quest for ultimate equality, has its hands tied when it comes to rewarding excellent performance.

As encouraging as it is to learn that the government wants to deliver better customer service, you’ve got to conclude that this initiative isn’t likely to garner results.  Too bad really.  Indirectly, we all pay for the poor service.  And now we’re paying for the analysis, studies, position papers, etc.  Since the government’s track record in tackling big issues is so mixed, what makes us think they’ll handle customer service any better?

The pivot point is simple – competition improves customer service.   And even if the government does figure out how to improve service it still won’t make our annual pilgrimage to the altar of the IRS to file our tax returns a better experience.

Outrunning the Competition

Barely a year beyond one of the worst economic slowdowns in recent history I was struck by the familiar disclaimer “past performance doesn’t guarantee future results.”  This statement is as true for fund managers as it is for customer service professionals.

But it begs the question; just how good does your current performance have to be?

With March Madness upon us I was reminded of John Calipari’s book Bounce Back: Overcoming Setbacks to Success in Business and In Life and liked the spirit of a quotation: “strive for perfection and settle for excellence.”  As a personal credo that makes sense.  For a business, that sentiment sounds expensive!  Businesses need only concern themselves with winning … not winning convincingly.  Spending time/money on perfection is costly… so is spending it on excellence.  Spend it on winning – beating the competition.

Unfortunately, the things that make good business sense don’t always measure up as motivational creeds.  Being just better than the competition isn’t much of a rallying cry which is why Calipari will never tell his teams to “be good enough”.  But in customer service, as in other aspects of business, it makes sense to be just better than your competition.

Old joke alert: if a bear is ever chasing you and a friend through the woods, remember that you don’t have to be faster than the bear, you only have to outrun your friend.

The pivot point in business is that continual improvement in our people, processes, technology eventually stops yielding noticeable value to customers.  Perfection and excellence are good goals and even better rallying cries, but all we have to be is better than our competition.

What do you think?  Is it good enough to just beat the competition, or does it make more sense to run up the score?

Tea Leaves, Tarot Cards and Customer Service

Most companies think they know how their customers view them.  Most companies think they understand what their customers want.  Most companies are wrong.

Fact is, most companies are still chasing the next big deal opportunistically.  They rely on gut feel and promises of new growth and revenue rather than relying on existing customers to help them navigate the pathways to growth.  It doesn’t have to be this way. Continue reading