Tag Archives: Customer Service

What’s that Giant Sucking Sound?

During the 1992 U.S. presidential campaign Ross Perot famously referred to a “giant sucking sound” of U.S. jobs heading to Mexico when NAFTA went into effect.  If you’re not careful, that giant sucking sound could be your customer service.

Despite unparalleled interest in delivering customer service (2/3 of large North American companies according to a Temkin Group survey) the #1 obstacle to doing so is “competing priorities”.  What this says, quite simply, is that our customer service efforts are merely lip service.  If we don’t invest in our people and our service, it stands to reason that customer service will suffer.

Luminaries in other aspects of business have pronounced simple (effective?) ways to focus their efforts.  For example, when it comes to innovation, Steve Jobs insists you “Get Rid of the Crappy Stuff” and when it comes to managing your brand, listen to Wikipedia founder Jimmy Wales and “Make Stuff that Doesn’t Suck.”  What mantra should customer experience professionals adopt to simplify and focus our attention?  Here’s a suggestion:

Treat Customers as You Want to be Treated

We want to deal (i.e. spend) with companies that:

  1. Are easy to do business with – Make purchases simple, buying more or exchanging items is straight-forward.  Don’t include hidden costs or fees.
  2. Trust us – I had an abominable experience at a Polo store not too long ago.  What should have been a simple exchange turned into an exercise where I had to prove the product was defective.  The 5th Amendment of the U.S. Constitution may protect our innocence unless proven otherwise, but don’t count on this treatment at Ralph Lauren.
  3. Are fair to us – Fair is a tough notion to teach.  In customer service, fairness is about keeping consumers’ interests at heart.  Look out for corporate interests, but remember that in many cases, customer interests are the same as corporate interests.
  4. Are honest and informative – Can we count on the information we receive or is it likely to hide/skirt the truth?
  5. Responsive – Does the company value my business and do they act like it?  My time is important.

Customer service takes effort and it requires a focus we seem to have lost.  The pivot point is that we must invest in customer service and experience capabilities just as we invest in market development or product functionality.  When we fail to take those steps we miss out on the most cost-effective way to drive new growth and market share.  It may not be as simple as the Golden Rule, but it is a good first step which, once taken, can help service from sucking.

What mantra does your company use when describing its customer service?

Customers Willing to Pay for Exceptional Service

With each passing day, more and more evidence suggests that providing differentiated customer service is financially rewarding for corporations.  Are we at a point where the C-suite realizes that exceptional customer service can create a sustainable competitive advantage?  How will your company respond?

In the B2B space, a recent Finextra Research study showed that:

  • 68% of corporations would switch banks for better customer service
  • 57% would pay higher fees for a better customer experience

While in the B2C arena, a Harris Interactive study noted:

  • 85% of consumers would pay more for better customer service
  • 10% would pay a whopping 25% more!

Can executive management afford to continue to take a short-term view of their customers and their business?  Or are there still some who claim the way to improved stock performance is to cut costs at the expense of customers?  Taking that path has pitfalls (see below).  Question is… how will corporations respond?

That same Harris study suggested that:

  • 82% of respondents had stopped doing business with companies that provide poor service
  • 40% switched to competitors who had “exceptional” service

The pivot point is that during increasingly competitive times the fastest way to profits may not be acquisitions, innovation or cost-cutting, but in taking care of customers.  The numbers don’t lie.  Here’s hoping executive leadership will look up from the sand to take notice and here’s hoping Wall Street will give exceptional service its due.

Popular Posts in Customer Service

In honor of customer service week, highlighting my popular posts:

  • The Secret to Accomplishing More – It’s no secret that customer service departments, like all others, are asked to do more with less.  The secret (shhh), is companies that do a few things with focus, are better able to satisfy their customers than companies that do many things with mediocrity.
  • Snatching Victory from the Jaws of Defeat – If your company is like most you have problems with customer service.  Those problems may emanate from poor products, over-sold capabilities or legitimately bad service itself.  It makes sense to plan what to do when things look darkest.
  • 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.
  • Steps to Employee Engagement – I read a good post at HBR not too long ago whose premise was that if your employees don’t know what your company does, it’s unlikely your customers will.  Unfortunately not only do employees not know what the company does, they don’t know that what they do matters!
  • Cutting Costs vs. Saving Money – There is a big difference between cutting costs and saving money.  Although both are looking to free up budget resources, saving money is helpful while cutting costs is harmful to organizations.

Appreciate your feedback and continued readership… come across a topic you’d like more information about? Let me know!