What can we learn from BusinessWeek's service champs?

Not surprisingly, Alfred's Tailoring did not make BusinessWeek's latest list of their 'Top 50 Customer Service Champs'. To be fair, they didn't quite fit BusinessWeek's criteria, but I don't think they'd make the list even if they did.

My wife dropped off a suit last week for tailoring. She needed the suit no later than Saturday, so the tailor said the suit would be ready by noon if my wife paid cash up front. When my wife arrived on Saturday at 12:30, the suit wasn't ready. The response from the tailor was, "I've been really busy!" I guess we'll be too busy to go back.

BusinessWeek Top 50 Customer Service Champs
BusinessWeek has just come out with their list of top customer service companies. The list highlights a few organizations that are truly excellent while raising quite a few questions at the same time.

Dominant Industries
Three business categories account for more than 50% of the companies on the list. Auto manufacturers, hotels, and financial service companies captured 26 of the 50 spots. There were no tailors, though clothing retailers captured four places. See the entire list here.

Unanswered Questions
BusinessWeek's ranking system does raise a few questions. Part of their methodology was rating each company on 'people' and 'process'. Unfortunately, I couldn't find a real explanation for what 'people' or 'process' really means to them. If anyone could enlighten me, I'd be grateful.

Another question is how some of these companies truly made the Top 50 list. For example, BusinessWeek relied extensively on data provided by J.D. Power. Fairmont Hotels was ranked #3 on BusinessWeek's list, but only received a 3 out of 5 rating for overall satisfaction from J.D. Power. Huh?? By contrast, Ritz Carlton, #12 on the list, received a 5 out of 5 rating from J.D. Power. Several other companies on the Top 50 list received relatively poor 'people' ratings, such as B's and C's. Hardly the stuff of 'Customer Service Champions'.

Lessons Learned
These types of rankings are great discussion topics, but customers will ultimately decide who the champs are, and they will eventually vote with their wallets. The weighting of the list suggests that customers have high expectations for certain industries, so companies in those lines of work have to be constantly on their toes. My wife's recent experience also reminds me that the industries we don't expect much from (like tailors and dry cleaners) can go a long way by just being polite and responsive.

Passionate Customers

My recent posts about Starbucks gave me an opportunity to research what other people were saying. Not surprisingly, a lot of people are very passionate about what Starbucks is up to. A few bloggers have even started some very interesting conversations, such as Becky Carroll (Customers Rock!) and Jay Ehret (The Marketing Spot). Carroll and Ehret are collaborating on what they call "The Starbucks Project" to help "Howard get it right." (Howard Schultz is the CEO of Starbucks.)

This got me thinking - how nice would it be if we all had customers who were so passionate about our products and services they went to great lengths to give us feedback and help us get it right.

• I love Jimmy Dean sausage, but this guy takes it to the next level. Listen to his complaint call (careful, his language is a bit 'colorful').
• Fanpop.com is a fan club website with pages for many companies (including In-n-Out!).
• Fans, regular customers, and employees can all interact at Get Satisfaction. Check out the examples on the Timbuk2 page.
• Burger King even tried to create this sort of 'consumer enthusiasm' with their Whopper Freakout campaign.

What can we do about it?

Creating a passionate, self-motivated base of fanatical customers is both an art and a science. This could be a big discussion, but here are my top 3 strategies.

Strategy #1: Be consistent. I love In-N-Out and they rekindle that romance every time I visit, no matter which store I go to. Their service is always enthusasiatic and friendly and the product is always good. Very few companies can achieve this level of consistency.

Strategy #2: Resolve problems like a hero. This is the classic 'hero' opportunity. A customer experiences a problem and someone becomes a hero by swooping in to save the day. Kearny Mesa Acura in San Diego does a great job here. I've occasionally experienced a problem in the service department, but they've always made it right and then some.

Strategy #3: Overdeliver. The best strategy is to give customers more than they expect. The Prado Restaurant in San Diego is outstanding in this aspect. I can distinctly remember many times I've been there because they almost always incorporate an unexpected surprise. The ambience and food are both outstanding, but the service even surpasses both.

The roofer's cup runneth over (or maybe he just lost my number)

No offense to the hardworking roofers out there, but most of us don't expect a lot from you. All I really need is a little honesty, some decent craftsmanship, and I'd appreciate it if you showed up within that four-hour window we talked about. Plumbers, electricians, painters, and all manner of handymen should be in this conversation too. You all provide a valuable service, work hard for your money, and do things that I can't do for myself. At the same time, some of you are sure making it hard to do business together.

How hard is it to get a quote?!

I thought I had struck the motherload when I started searching for someone to put a new roof on my home. A cool website called Improvenet had project estimators and a simple form you could fill out to get quotes. A roofer literally called me to set an appointment within one minute of hitting the "submit" button, so I was pretty psyched.

Over the next day or so, I tracked down several different companies who were willing to come out and give me a quote. I booked their visits into my calendar so I could spend a few minutes with each person and waited for the quotes to come pooring in... Four weeks later, and I finallly have someone scheduled. Well, almost. At this point, I could probably start my own roofing company (that is, if I actually knew how to roof).

Roofer 'A'

The guy who called me immediately was first on the scene. Let's call him Roofer 'A'. When I answered the door, he handed me an envelope and said, "Everything is in here. I've been doing this for 30 years, and I think you'll find we're competitive." I followed him outside and he looked up at the roof and said, "Yeah, your ridgeline is going. It will be about $7400 to replace the roof." He started heading back to his car as I followed him trying to ask questions. "It's all in the envelope," he said.

Roofer 'B'

The next guy, Roofer 'B', sent a guy named John to do the estimate. Compared to Roofer 'A', I was really impressed with John. He got up on the roof and immediately told me I only needed to do some repairs, but didn't need a new roof. John took the time to show me the problem areas and answered my questions patiently. By the time he left, I was hoping the quote from Roofer 'B' was at least competitive. Unfortunately, 10 days and a couple messages went by before I heard back from Roofer 'B'. When he did call and leave a message, he still didn't provide a quote, "Just checking in - are you still in the market?" It took a little more back and forth before I finally got a quote, more than two weeks after the visit. The quote was only $1,650 and not very thorough, so something told me I'd be in for many unpleasant surprises if I hired Roofer 'B'.

Roofer 'C'

John from Roofer 'B' was finishing up right about the time Roofer 'C' was due to come by. I went back into the house and picked up my voice mail. One message was from Roofer 'C' saying he had come by earlier that day. I was a little bummed because I wanted to meet him in person, but it wasn't the end of the world. His quote was. Roofer 'C' proposed a complete tear-down with all sorts of extras, coming in at a whopping $8900! I traded voice messages with Roofer 'C' for a few days before getting him on the phone. "Why did you propose a complete new roof while another roofer said I just needed a few repairs?" After a bit of fumbling, Roofer 'C' said I would need a new roof in 4 to 6 years, so I might as well replace it now. We discussed it a bit more before Roofer 'C' relented and agreed to furnish a quote for just the work I needed. The quote was $3,900.

Roofer 'D'

Roofer 'D' was a referal from a friend. He was pleasant and professional on the phone, but he didn't send his estimator over as promised. Fortunately, I hadn't planned to meet this guy, so it didn't interrupt my day, but I was still disappointed. I called the guy back the next day and this time he sent out Pedro within a few hours. Like John from Roofer 'B', Pedro was friendly, patient, and professional. He agreed with John's assessment that I just needed some repairs, but not a new roof. I was hoping not to repeat the delays I experienced with Roofer 'B', so I called Roofer 'D' a few days after Pedro's visit to ask for the quote. I finally got it a day or so later and even received a prompt call back when I had a question. This quote was for $3,850.

Decisions, Decisions

The roof isn't done yet, but I have told Roofer 'D' I'd like to go with him. We spoke this morning and he told me he had a full week ahead, but would call me this afternoon to schedule the job. "It's not an emergency," I said. "Just call me when you say you're going to call me and let's get this on the calendar and I'll be happy." Roofer 'D' said he could do that, so I'm giving him the benefit of the doubt.

Lessons Learned

There are many businesses out there where we don't expect much in the way of service. If you work in one of those businesses, you can really stand out by simply being responsive and keeping your promises. If you can't serve your customers at a basic level, you just may be missing out on a lot of easy sales! (Yes, Roofer 'B', I'm talking to you!)

A Simple Definition of Customer Service

A lot of people have opinions on what makes customer service good, bad, or even outstanding. I prefer a straight-forward, customer-focused defintion.

1. Good service occurs when a customer's expectations are met.
2. Poor service occurs when the customer's expectations are not met.
3. Outstanding service occurs when the customer's expectations are exceeded.

Lessons Learned:

This defintion suggests the most important step in delivering outstanding service is to learn what your customers want. So go ahead, ask them!

Is Starbucks the next McDonald's?

Two weeks ago, I wrote a post about Starbucks trying to rediscover their customer through a reinvigorated 'Starbucks Experience'. The latest updates put Starbucks and McDonald's on a collision trajectory into the same market. It makes me wonder what the 'Starbucks Experience' will truly become.

Things have gotten a little strange at Starbucks in the past year or so as something that looks suspiciously like an Egg McMuffin began taking up precious space in their display cabinet. Last week, USA Today reported that Starbucks is test-marketing $1 cups of coffee with free refills in some of their Seattle stores. I haven't heard any announcements about Starbucks adding a play ground at selected locations, but you never know. Meanwhile, McDonald's recently announced plans to add coffee bars to nearly 14,000 stores in the U.S., so things are about to get really onfusing.

Here's a picture of my cup of coffee at Starbucks this morning. (I wish it was only a $1 with free refills!) My 'Starbucks Experience' was a little bland, but certainly not terrible.

• The tables in chairs in many stores are a bit worn and this store is no exception. They remind me a bit of my desk back in grade school.
• The employees working there were cordial and friendly, but there was nothing particularly special about there service. There just isn't a lot of time for chit-chat when the next person in line needs their double mocha latte!
• I brought some work with me and planned to lounge for awhile, but it just didn't feel like a good environment for that today.

Any business needs to decide who it will be to its customers and then operate as closely and consistently to that vision as possible. I'm not sure who Starbucks wants to be anymore. Are they a convenience? An indulgence? An experience? They certainly can't be everything to everyone, but its becoming increasingly unclear who they are. I just hope they figure it out soon, because there are four Starbucks locations within 10 minutes of my house.

Why I love In N Out... and my dentist

I'm pretty sure I paid for my dentist's vacation last year or perhaps the down payment on that nice car he drives. I had a lot of work done, but I also discovered a few interesting insights along the way. Here are the big ones:

• A dentist or doctor's office can be well-run
• In-N-Out is my favorite customer service example
• Good service can overcome a lot

Insight #1: A dentist or doctor's office can be well-run

I'm not sure why my dentist bothers subscribing to all those magazines in the waiting room. If you show up on time you don't wait. During my many visits in 2007 I always got in right away and got out by the time they said I'd be done. Respecting my time goes a long way in my book.

The people that work in the office were always cheerful and helpful. I've been to the dentist where the office manager came across as a used car salesperson, but Jessica, the office manager I dealt with, felt like a trusted advisor. She explained my options and even offered to help me get the best use of my dental insurance.

Of course, I was very pleased with Dr. Brumand. He did great work, was very careful, and always explained what he was doing before he did it. I couldn't find a website, but here's their information.

Insight #2: In-N-Out is my favorite customer service example

During one of my visits, Dr. Brumand asked me "Who provides the best service these days?" Without hesitation, I answered, "In-N-Out".

"Not Nordstrom?"

"No, definitely not Nordstrom. For me, In-N-Out is the best."

I answered the question easily, but I had to think a bit about my reasons why. Here are a few:

• I've always had a good experience at In-N-Out. Sometimes its been great, but its always been good. I've never had a good experience at Nordstrom. I may be unique, but the sales associates I encounter are generally rushed and uninterested.
• In-N-Out sticks to what they know and delivers a great product without fail. Nordstrom started as a shoe store, but I've never been able to buy a pair of shoes there. I wear a 10 4E shoe, so you'd think Nordstrom would be the perfect place since they carry so many sizes. Unfortunately for me, not the case. On the other hand, In-N-Out always has the size of cheeseburger I want. They'll even custom make one for me if its not part of their typical selection.
• The people at In-N-Out are friendly. Yes, there's a bit of a script involved, but the people I encounter are always cheerful. That's not been my experience at Nordstrom. Maybe you just need to be an elite customer. In-N-Out seems to like their customers just the same.

Insight #3: Good service can overcome a lot

Fortunately for Dr. Brumand, he had already built up a lot of good service karma with me the day the Novocain didn't quite take as expected. He'd drill for a few minutes and then I'd feel a sharp pain, so he'd stop and give me a little more Novocain. This continued for awhile until he told me he couldn't give me anymore. "You're just going to have to tough it out," he said.

Yikes! I'd be pretty angry if this was my first time there, but by then I was willing to give him the benefit of the doubt. Fortunately, he was able to finish without any additional pain. Of course, the kicker is my mouth got VERY numb about 15 minutes after I left his office.

A final thought...

I suggest a fact-finding mission to In-N-Out if you want your organization or department to be awesome at customer service. You may even need two or three visits, just because there are so many best practices to absorb. I'd suggest you do the same with my dentist's office, but I don't think they're well-equipped for group outings.

Service With a "Dash of Jilted Psycho"

Salespeople and customer service providers often make the cardinal mistake of focusing on their needs rather than their customers'. Poor service almost always results, though it comes in varying degrees from annoying to completely absurd to the latest entry, "Jilted Psycho".

First, a note on customer focus. The way a cashier hands a customer their change says a lot about their customer focus. If the coins are on top of the paper money, the cashier is "me-focused" since they scooped the coins out of the register till first and simply dumped everything in your hand. The cashier is likely customer-focused if he/she puts the coins in your palm first and then places the bills on top so the change doesn't go flying out of your hand. Check out this cool primer on how to make change (all cashiers should be taught this).

Jilted Psycho. This is an actual email exchange between an interested car buyer and the car salesman. The names have been changed, but everything is very real. See if you can spot the "me-focus" in this exchange.

Salesman's Email:

Good afternoon Steve,

I am a little confused. I thought you wanted to deal with me and you wished for a new Explorer, but I see you stopped in today and dealt with another salesmen Jim on an Expedition? Did I do something wrong? Do you wish to deal with Jim or someone else? Are you no longer interested in the Explorer? Expedition? Please advise.

Mike Lester

Customer's Reply:

Mike,

I stopped in, he saw me and offered to help, all I wanted to do at that point was test drive an Expedition. It wasn't about dealing with you or him, it was about just getting a test drive in to think about it some more. I hadn't done so before and thought I would just check it out. After the test drive and thinking about it, i still want to get anExplorer. If you want to help me that's great, i'd still like you to find the Explorer for me.

Just do yourself a favor dude, look at the e-mail you sent me. Not exactly the most professional thing I've ever seen. It's a bit intense, some pressuring, accusatory with a dash of jilted psycho mixed in. If I didn't want to work with you, this note would not be winning me back. Fortunately for you, i still want you to find an Explorer for me, let meknow when you have something.

Steve

Car Salesman's Reply:

Steve,

I would agree with you to some extent. I am glad and understand sort of needing the test drive, but just do me the favor and ask for me. I would like to take the time with my customers and other salesmen get bent when they are with someone else's customer. Not saying Jim is one of them. I can understand and agree to some extent a quick note that may offend a consumer, but that is was certainly not my intention. I feel comfortable dealing with you, so I had just asked quick questions, as I was also confused when I asked Jim if he was able to help you and he could not clear much up. Now he is under the impression you wish to find an Expedition from him. I can explain to him though. Now if I did not know you that much, I would agree with you my email was a bit harsh, not downright rude, but harsh. I just cut to the chase as I thought you would not appreciate the long banter (which I am embarking on currently). Anyway I am glad you were not offended. I would never wish upon that on anyone let alone yourself.

The only issue with going with an XLT is they offer tan or light greyinterior. To be honest it does not look black. The eddie bauers are tan interior. I overheard we have a black interior eddie bauer in dark cherry coming in. I have not seen this one yet and do wish to take alook at this set up. I do think that its gonna come in with a tan interior but black flooring and ceiling is my guess. I hope I am wrong and its all black though. That would be nice looking. Did you get the limited emailed Saturday morning? That was all black and a limited with desired options in 2008?

Thanks for your reply,

Mike Lester

Will Starbucks rediscover their customer?

Howard Schultz , the founder and chairman of Starbucks, has returned to head the company as CEO. The press releases make it sound like he's leading a crusade, and I hope he is. Sure, the company has been growing rapidly, with revenues increasing at least 20% a year over 10 years, steadily rising profits, and an expanding global presence, but there increasingly seems to be something missing.

Mr. Schultz's stated goal is to help deliver a superior "Starbucks Experience". Here's a company that's swimming in profit, has become one of the brands, and now they want to start a customer service revolution. There's many places to get the "big picture" story, but for me the little picture is more interesting and more personal.

Why do I go to Starbucks?
This is a great question many of us can ask ourselves. Or, why do we frequent any establishment or buy any product? Are we even consciously aware of the reasons and are our reasons rational?

My reasons for going to Starbucks have definitely changed over the years. At first, it was the great coffee. There soon appeared many far superior options, so then it became their outstanding service. For a long time, they had me on that one. I was a "regular" at a local Starbucks where they knew my name and knew my order.

Over the past few years that has changed a bit and now I go to Starbucks because its convenient and the habit is ingrained in my brain. But they definitely feel more corporate, and I definitely don't feel like a regular. I guess I should have seen the writing on the wall when they stopped displaying the daily horoscopes and a barista told me it was a "corporate" decision. We all know that corporate and astrology don't mix, and Starbucks was definitely feeling more corporate.

Where do I go now?
It's a fun exercise to re-think why you are loyal to a brand. You just may find, as I did, that there are better options out there. As a customer service professional, my first thought is service, so I now have five places I go for coffee instead of one. That may seem a lot more complicated, but it actually seems to have made things easier for me. Here are my coffee house favs:

• Best Local - The Living Room. There are a few of these, but mine is near San Diego State University. They have comfy couches and overstuffed tables, coffee is served in big mugs, they offer free wi-fi, and I'm pretty sure they have a policy that all employees must have at least one visible tattoo or piercing. Isn't that what a coffee house is supposed to be like?
• Best For Meetings - Coffee Bean & Tea Leaf. This growing chain feels like Starbucks used to feel. Their coffee is good, they have plenty of locations (at least in Southern California), their stores are comfortable, and the staff is friendly.
• Best for Lunch - Panera. Panera has great sandwiches and free wi-fi, so this is a great place for a working meeting or casual lunch. Oh, and their coffee is very good too.
• Best Coffee - It's a Grind. I love It's a Grind, especially their iced coffee. I really loved the one in downtown San Diego, but a few of their key people left, so we'll see if they can sustain the service.
• Because it's there - Starbucks. I'm not anti-Starbucks, and they are awfully convenient.

So, why do you choose a brand? Or, what do you go to Starbucks? Better yet, why do your customers choose you? And, are you giving them any reasons to reconsider?

Service still counts when you're the only game in town

Some companies think they are the only game in town and cannot see the benefit of delivering outstanding service. They assume their customers are captives with no other options. I am on the last leg of a cross-country road trip and have seen this many times in the past few days as I've patronized small-town restaurants, gas stations, and motels.

First, the bad example
My wife & I are traveling with our dog, Melrose, so we made an advance reservation at the Holiday Inn Express in Ft. Stockton, Texas. I noticed they charged my credit card at the time I made the reservation, which is unusual, so I called to check on things a few days before our trip. To my surprise, the person who answered the phone couldn't find my reservation (even with a confirmation number) and didn't seem interested in helping me resolve the situation. She did inform me the motel was now a Quality Inn, but was insistent this change couldn't have created my problem. She finally offered to connect me with her manager who got me a new reservation, but also could not explain the credit card charge. The manager at least agreed to do some research and call me back, but I'm still waiting for that phone call ten days later and have left another voice mail in the meantime.

I got tired of waiting for the manager to call me back so I called them, cancelled my reservation, and made a new reservation at the Days Inn in Van Horn, Texas. This hotel is about 120 miles away from my first choice, but I'm saving $40 and I'll be 120 miles closer to home in the morning. Does the Holiday Inn Express/Quality Inn miss my money? Maybe not, but by the looks of things here in West Texas, it couldn't have hurt. Lesson: You may be the only game in town, but there are other towns!

Now, the good example.
Driving on Interstate 10 between Houston and San Antonio you'll notice billboards for a convenience stop called Buc-ee's. The billboards start about 100 miles out in either direction and are often a bit humorous and off-beat. Example: "Ice made from scratch". The best part is they truly deliver everything you'd ever want from a convenience stop in the middle of nowhere: reasonably priced gas, clean and spacious restrooms, a full-service deli, cheesy gifts, and friendly (folksy, even) employees who are happy to help. Buc-ee's is the only game in town, but they've developed a winning formula by being the best they can be. I've stopped there a few times (repeat business!) and they have always had a much larger crowd than the usual convenience stop.

Finally, the lessons we can all apply.

1. Lesson #1: There are other towns. Your customers may have many more options than you think, so it's always best to treat them as though they could bring their business to a competitor. The Fort Stockton hotel was the only dog-friendly hotel in its class for a 100 miles, but I was willing to drive 120 miles to avoid being treated so poorly.
2. Lesson #2: Deliver the best service you can, even when there appears to be no competition. Your customers may reward you with more repeat business, a higher average ticket, and perhaps even free advertising (referrals, blog posts, etc.). I've made a point to stop at Buc-ee's several times over the years and have happily spent more there than I would at a typical convenience stop.