How processes can hurt customer-focus

I’m picky when it comes to ordering breakfast at a restaurant, so I almost always order a la carte. And, almost always, my meal arrives on several plates. It’s a minor annoyance, though it's become expected. 

Combining my a la carte items onto one plate seems like such an obvious move, but there’s a simple explanation as to way it infrequently happens. The culprit is process.

Why is process to blame?

Processes get drilled into employees’ heads. That’s how they learn and it’s often how they’re managed. It’s also how work flows in many service environments. As a result, it's what employees often focus on.

Take my a la carte order for example. It’s not a specific meal on the menu, so the server has to ring it in as individual items to generate a price and get the order into the kitchen. Plating my entire meal on one dish requires the server to think outside the normal process and consider my needs as a customer. Again, it seems obvious, but here process usually causes the server to lose customer-focus.

Why is customer-focus so important? 

The rare server who puts all my breakfast items on one plate really stands out. My colleague, Liz, recently wrote to tell me about a similar experience she and her husband had where the focus was on her and not the process:

“We frequently stop for a sandwich at Great Harvest Bread Company in Temecula. Their sandwiches are enormous, so we only eat half, and save the other half for the next day’s lunch. Apparently their staff has noticed, because the last time we visited, they served up half the sandwich in the basket, and half in a to-go bag. It was a very pleasant surprise, and you can be sure we will remain loyal customers.”

In another example, a client of mine recently asked me to develop some sales scripts for his call center employees. After a spirited discussion, he agreed to let me develop guidelines that would help reps steer the conversation towards a sale while using their own brains and personalities to adapt to each customer’s unique needs. My client initially feared that his reps would be inconsistent without a strict script to adhere to, but thankfully he relented. Customers aren't the same, so why should we approach each on the same way? The results have already started paying off in the form of increased sales. (See a previous rant about scripts here.)

How can you achieve customer focus?

A good place to start is by designing customer-focused processes, such as using broad guidelines rather than scripts.

Training can help too. For example, cashiers often give change by scooping coins out of their till, grabbing the bills, and then flipping the whole thing into the palm of the customer's hand. The result is the loose coins end up on top, making it more difficult for the customer to put their money away. A customer-focused way to do it is take the extra half-second necessary to place the coins in the customer's hand first. Last week, I received an email from Jesse who reminded me how this little move can make a big impact:

"I had a cashier who was aware of this very small thing and just by consciously giving me my coins in a manner that let me put away bills in my wallet first, I felt like it was the best customer service I had gotten all week! And all I got was a small juice at a coffee stand.  Also because she gave me change first it was easier and quicker for me to tip her with a bill."

Would you lose a customer over 50 cents?

Would your business be willing to risk losing a customer over 50 cents? I know one that is.

I received a surprise when I reviewed the latest bank statement for one of my business accounts. My bank had imposed a mysterious 50 cent fee for something called "Currency Straps Ordered." It wasn't a lot of money, but I didn't want my bank to get in the habit of charging random fees, so I decided to give them a call.

You may already know what a Currency Strap is, but I had to do some digging to find out. It is a bundle of cash that has a paper "strap" around it to keep the bills together. Banks give them to businesses who work with cash. I've also seen them in quite a few action movies and spy thrillers when someone has a dufflebag full of cash.

My consulting business doesn't use currency straps, but I was still charged 50 cents for one. How?

I had visited my bank branch to deposit some checks into my account. At the end of the transaction, the teller had asked if there was anything else she could help me with. I realized I needed to get some tip money for an upcoming trip, so I asked her to give me change for a $20. Little did I know that this was considered a "currency strap" in the banking world. Gotcha!

The teller didn't advise me of the 50 cent charge, or I certainly would have gotten change elsewhere. It may be in the fine print of my banking agreement, but I don't remember seeing it. This fee was an unpleasant surprise.

It took 15 minutes on the phone with a customer service representative and then a branch manager to get to the bottom of this unexpected charge. To her credit, the branch manager quickly reversed the charge and was empathetic, but she also explained this was their corporate policy.

I'm now thinking of moving my accounts to another bank. It's not just the 50 cents, but all of the fees I've had to worry about avoiding lately. This bank clearly wants to make their money on fees, not service. 

Customer Service Tips

 

  • The only surprises your customers should ever receive are pleasant ones. 
  • Nobody likes fees. 
  • It's probably not worth Chase-ing a customer away for a lousy 50 cents.

 

The 3 Ways to Wow in 3 Quick Stories

I know of only three ways to create an outstanding customer service experience. 

  • Build Relationships
  • Exceed Expectations
  • Solve Problems

Here is a quick example of each one.

Build Relationships
I'm not the least bit handy, so when the spice rack in my kitchen got stuck and wouldn't open, I knew it would be futile to try to fix it myself. My first instinct was to call Don Teemsma at Ideal Plumbing, Heating, Air & Electrical. I knew that Ideal also remodels kitchens and bathrooms (they remodelled two of our bathrooms), so I figured he'd know someone who was a cabinet expert. Don was confident that one of his employees, Joe, could handle it. An hour later, Joe was at my house and not long after that the spice rack was unstuck and as good as new.

Without knowing someone like Don, I realize I would have to spend time blindly searching for someone to do the repair, schedule an appointment for the obligatory four hour window, and then hope everything turned out okay. Don helps customers like me avoid these hassles by making sure help is just a phone call away.

Go the Extra Mile
I overheard an interesting exchange while my wife, Sally, and I were enjoying a wonderful meal at Fleming's Steakhouse last Saturday. A guest at a nearby table asked his server if there was an ATM nearby because he didn't have any cash to tip the valet parking attendant. They server pointed out an ATM machine about a block away, but then suggested the guest simply add the valet's tip to his dinner bill. The server explained he'd be happy to take care of the valet's tip for the guest so he wouldn't have to worry about tracking down the ATM machine.

Simple gestures like this that save a customer some time and money (ATM fees - yikes!) make a lasting impression. It didn't require a lot of extra effort from the server, but taking the initiative to be extra helpful made a wonderful impression on the guest. And, since I'm writing about someone else receiving great service, this simple gesture clearly had a ripple effect.

Solve Problems
I made an appointment for my dog, Melrose, to spend a day last week at Furry Tales Doggy Day Care. The dogs have a lot of fun playing with each other in their open environment and Melrose always comes home tired after a great day. As I made the appointment, I learned they didn't have a record of Melrose's latest vaccinations, even though I had given them copies several months earlier. Melissa, the friendly employee taking the reservation, told me she would contact Melrose's vetenarian and have his office fax over her records so I wouldn't have to worry about giving them another copy.

Problems can and will occur. The speed and manner in which they get resolved is ultimately the difference between outstanding and poor service. Tracking down my dog's vaccination records might be been a hassle, but Melissa found a way to solve the problem without requiring any extra effort from me.

3 Ways to Wow
I mentioned I only know of three ways to deliver outstanding service. Is there another path I neglected? Please feel free to leave a comment and enlighten me or simply leave your own tale of outstanding service.

Three things small business owners need to know about Yelp

What do you think of Yelp? Some business owners love it while others hate it. But like it or not, your customers are using consumer rating sites like Yelp to make decisions about your business. They’re filling out their own customer service surveys for the world to see, and other customers are deciding whether or not to give your business a try on the strength of those reviews.

If you are a small business owner, you should understand three things about Yelp.

#1 Yelp Drives Business
I was recently chatting about Yelp with Tara Julian, the owner of Hair Play, while she gave me a haircut. She mentioned that if you Google “best men’s haircut in San Diego” the first search result directs you to a Yelp page with Hair Play Salon at the very top. Tara joked that she didn’t know if she truly gave the best men’s haircut in town, but she knew she did a good job and works hard to take good care of her clients. Yelp was how I had found Hair Play myself, and I’ve certainly found Tara deserving of the five star rating so many clients have given.

Good reviews drive business. A 2011 study by Michael Luca at the Harvard Business School estimates that a one star increase in a Yelp rating generates a 5 – 9% increase in revenue for a small restaurant. (Read the study here.) While his study was limited to restaurants, consumers turn to Yelp to decide where to get their hair cut, find a garage door repair service (thanks Up and Down Garage Doors!), or find a housekeeping service (thanks Pure Cleaning Agency!).

What’s the best way to earn good reviews on Yelp? Make sure you consistently take great care of your customers. Which leads to #2…

#2 Yelp Provides Feedback
The beauty and bane of Yelp is the unvarnished, public feedback that customers post alongside their reviews. Some business owners feel that people only write reviews on Yelp to complain or support their friends’ businesses, but in between the flowery praise or angry rants are often some very useful points of feedback. Look at the most consistent comments made about your business, both good and bad, and you’ll see a fairly accurate picture of what your company looks like through your customers’ eyes.

For example, if you look carefully at the comments reviewers have made about Pure Cleaning Agency, you’ll notice people who give them great reviews tend to really like the person who cleans their home. My wife and I are definitely in this boat and have relied on the same terrific house keeper for a couple of years. The bad reviews are typically written by someone who had a bad experience on their first visit. Clearly, success at Pure is linked to making a positive first impression.

What’s the best way to use customer feedback? Act on it! Which leads to #3…

#3 Yelp Can Help Solve Problems
Feedback that consistently points to a similar problem should prompt small business owners to make necessary improvements to improve service. For example, Pure may want to look for ways to make sure the first visit with each new customer is spectacular. If this is their achilles heel, then getting better in this area will help them convert more first-time customers into long-term fans.

Individual reviews can also provide an opportunity to rectify specific customer service issues. Yelp allows business owners to respond to customer comments, and savvy owners take advantage of this feature. A best practice is to reply to an upset customer, apologize for their poor experience, and offer to contact them privately to discuss a solution. One caveat here – avoid turning a customer service response into a customer confrontation. It’s always bad to argue with a customer, but it really looks bad when that argument takes place via a website that’s accessible to the public.

Good goals vs. Bad Goals

Companies that are serious about customer service set goals that motivate employees and allow them to evaluate how well they're doing. But beware - not all goals are created equal! Some will help drive the desired results while others can inadvertantly contribute to poor performance and bad behavior.

A notepad with the “Goals” written at the top.

The Motivational Impact of Goals

Goals can often cause people to focus their work and increase the intensity of their effort. Goals tend to foster positive behaviors such as innovation, teamwork, and healthy competition.

This short video highlights how goals can influence behavior. You'll also notice that a good goal itself is powerful enough to motivate people without an external reward like a prize or bonus.

Three Attributes of Good Goals

Setting appropriate goals requires some careful choices or you'll end up motivating people to do the wrong thing. Good goals have three distinct characteristics:

  • Focuses attention on the desired results, rather than diverting attention from the big picture.

  • Promotes teamwork rather than rewarding selfishness.

  • Relies on intrinsic, or internal, motivation to driver performance rather than external rewards.

This short video provides a more in-depth explanation of the difference between good and bad goals:

Use SMART Goals to Focus Your Team

The most powerful customer service goals follow the SMART model. SMART is an acronym that stands for five qualities every good goal should have:

  • S = Specific

  • M = Measurable

  • A = Attainable

  • R = Relevant

  • T = Time-bound

This tutorial video provides a more in-depth explanation of SMART goals and transforms a weak, "squishy" goal into a solid example:


Companies fall short on measuring customer service

I recently conducted a survey to determine how companies were measuring the effectiveness of their customer service. The results were disappointing, though not at all surprising.

How do companies measure customer service?
A whopping 25% of respondents don't formally measure their customer service at all. If you aren't trying to measure something, it's hard to make the case that it's important. Maybe this is one of the reasons customers receive poor service so often these days.

Of the companies that do measure service, surveys are the most popular option. Here are the results:

Do companies set goals for customer service?
The survey also asked whether respondents set measurable goals for customer service. Failing to set goals for customer service is like spending money without a budget -- it's really hard to tell how well your're doing. Yet, 37.5% of companies don't set measurable goals. Here's the breakdown:

Does company size matter?
The survey also included an optional question on company size by revenue. The goal was to determine whether larger or perhaps smaller companies were more likely to measure service. The results were inconclusive, though many participants opted to skip this question.

I set out to discover what companies are doing and instead found myself focusing on what companies are not doing. What do you make of the results?

TPS Named a 2011 ASTD Champion of Learning

If you notice me walking around with a little extra swagger in my stride it's because Toister Performance Solutions, Inc. has been named a 2011 ASTD Champion of Learning. The designation recognizes a commitment to workplace learning and performance through participation in the 2011 Employee Learning Week.

This honor marks the third year running for TPS. Drop me a line to learn how your organization can join me in 2012 or visit the official website.

Did you set your "out of office" message?

I never thought I'd write a blog post about the amazing virtues of an "out of office" email responder. It hadn't dawned on me until recently to point out that you can change your outgoing voice mail message to indicate you won't be returning phone calls for some time. I had simply assumed everyone knew about these wonderful inventions. After this December, I now know what happens when you assume things.

Why is this important?
With so many holidays like Christmas, Hanukkah, New Years, and Festivus, December is obviously a time of year when many people take a few days off from work. When you are out of the office it is important to set appropriate expectations about when you might return a phone call or email. Otherwise, you may cause someone to anxiously wait for your response and even think a little less of you when they don't hear back.

This December, I estimate that only 50% of my vendors, clients, and colleagues who were out of the office had an out of office message. Those that didn't contributed to several delayed projects, multiple emails and voice mails, and a lowered impression. Plenty of others did provide out of office messages, and it was easy to know when I could expect a response from these folks.

What makes a good out of office message?
Email and voice mail out of office messages should all have a three key elements:

  • Inform the person you are not responding to email or voice mail
  • Tell the person when you will resume normal communication
  • Provide an alternative contact should the person have an urgent need

One quick tip -- be sure to turn off your email auto responder and change your voice mail greeting back to normal as soon as you return!

How to work with unreasonable customers

I was recently waiting for a flight when I overheard a woman loudly complaining to her friend. She was upset about having to pay a fee for checking a suitcase that was two pounds over the 50 pound weight limit.

To me, this person seemed very unreasonable. First, she explained to her friend that she knew in advance that her bag was over the weight limit. This meant she was knowingly violating the policy and was expecting an exception to be made. Second, the myriad of additional complaints she dumped on her friend led me to believe she was probably quite rude to the ticket agent.

Since I couldn't help hearing what this loud woman sitting next to me had to say, I began to wonder. How could someone work with a customer like this?

I thought of three great options.

#1 Make an exception
One option would be to make an exception and waive the fee. I'd make a big show of telling the customer I was waiving the fee for them since the weight was so close. This customer would probably have felt a little special instead of being so irritated.

#2 Give options
Waiving the fee might not be possible due to strict policy guidelines, safety concerns, or the assumption that once 52 pounds is okay customers will start trying to get away with 55. If I couldn't waive the fee I would give her options. Providing a customer with choices, even if the choices aren't terrific, is always a better approach than simply saying no. Telling a customer "No" makes them feel powerless and defensive. Giving a customer options makes them a participant in the outcome.

For example, I might have suggested the customer either remove a couple of items from her suitcase and carry them on the plane or pay the fee and avoid the extra hassle. 

#3 Provide a good explanation
Some customers will be more accepting of a policy if they understand there is a good reason behind it. I've heard many an airline employee tell me that heavier bags pose a potential safety hazard to baggage handlers.

I might have explained this to the passenger and told her that we really care about employee safety and the fee was meant to discourage customers from checking heavy bags. I might have further explained that checking a heavier bag was unavoidable for some passengers, which is why the airline still allows bags between 51 and 100 pounds to be checked for a fee.

For all I know, the airline's ticketing agent did all of these things and then some, but the passenger was just an angry jerk. What else could the ticketing agent do in that situation?