orglearn.org

A survey by The Canadian Manufacturers Association on why customers abandoned their suppliers revealed that:

[  1% ]  was lost because of death

[  3% ]  were lost when their salesmen left the company

[  5% ]  left to buy from a friend or relative

[  9% ]  left because they found they could buy at lower prices

[ 14% ]  quit buying because of unadjusted complaints

[ 68% ]  quit buying from the company because the employees of the company were indifferent and showed lack of interest in the customer

What to do about it:

Provide recognition of your customers by setting up a system that instantly tells you who they are, easy with today’s technology!

Spend lots of time looking at your customer “touch points” and ensure your service systems are comprehensive and accurate and staff is well trained and committed to the customers.

Make sure full and accurate information is available on your products and services to all stakeholders, customers service staff and all contributors to the customer delivery process.

Make helpfulness, friendliness and professionalism core part of your corporate culture.

Protect your brand identity factors as a priority of your organization’s mission… look at Toyota as a good “bad example” and what failing to do this can mean.

Product quality and price – well if I need to write about these to basics I am wasting my and your time.

NB ***Before I finish… direct page viewers can go to main blog to check out other posts by clicking on the white “orglearn.org” in the header panel above!

and… While you’re here take a look at the free blank resume form!

Finally a few customer retention points based on an article by the Database Marketing Institute [www.dbmarketing.com]

Stop stressing price as a major basis for doing business

Know your customers are and treat them as valued individuals

Communicate with them effectively and often

Find special ways to build a relationship with them

Thank them for their business (thank you notes are still good)

Use your best customer service people with them

Build equity in the sales/buying process (through a system that provides rewards for volume business and for length of service/custom for both sides of the equation, staff and customers. i.e. Make it expensive to leave)

Train your customer service staff again and again and again

The plethora if in depth quality studies and methodologies are great for the quality specialists, however what does total quality management (TQM) mean for us regular line managers?

If you are to: satisfy the customer, ensure staff motivation is high, keep the bosses off your back, make cost effective decisions, take risks that pay off, lead the indolent, manage the misfits and all that other stuff, when do we get the time to do ‘the quality thing’? I’ll tell you… ALL THE TIME… no quality and the rest is a waste of effort.

Important point – TQM is an approach to improving the competitiveness, effectiveness and flexibility of the entire organization. It is a way of planning, organising and understanding each activity and depends on each individual at each level in an organization.  TQM when properly implemented must involve the TOTAL WORKFORCE, not just a quality department. So trying to implement quality improvements in your work area will require the involvement of all other areas of your organization that you interact with whether they are internal suppliers, customers or collaborators.

Today more than ever buyers don’t ask for quality… they demand it… and if they don’t get it they’re gone… and so are all those they can influence. I guess anyone watching what has happened to the Chinese manufacturers over the past few years can bear testimony to that. Dramatically increasing choice potential made available through ‘the communication revolution’, the net and the exponential growth of ‘the e-commerce reality’, make the issue of quality critical to continued existence. With price comparisons easier than ever, physical locality no longer a major limiting factor and worldwide delivery mechanisms now in place (and improving buy the hour), competitors are increasing at a rate never before experienced.

So what is quality? A few definitions may help to crystallize the real idea.

1. Quality is fitness for use, ‘Juran’
2. Quality is conformance to requirements, ‘Crosby’
3. Quality should be aimed at the customer needs, present and future, ‘Deming’
4. Quality is the loss (from function variation and harmful effects) a product causes to society after being shipped, other than any losses caused by its intrinsic functions, ‘Taguchi’
5. Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs, ‘International Standards Organization’.

WHAT EFFORT IS PUT INTO QUALITY AT YOUR PLACE?

By the way a useful guide to at least starting to think about quality improvement methodology is:

1. No processes should be undertaken without DATA COLLECTION, so we need to find effective ways to measure activity.

2. No data collection without ANALYSIS, essential to find out about underlying difficulties or ‘energy suckers’.

3. No analysis without DECISIONS, the scary stuff, we need plan ways to change the way things are done.

4. No decisions without ACTIONS, all the collecting, analysing and planning usually goes to waste because taking action requires REAL effort.

Before I go on if you would like to read other articles by Ric here is the link for direct page viewers return to main career success blog to check out other posts!

While you’re here take a look at the free blank resume form just in case you are stuck in an organization that has no real or measured approach to quality outputs!

To continue with an important and often (in my experience) overlooked fact… Quality is about improved performance not just about satisfying quality audits!

ISO certifications are now eagerly sought by many organizations around the world, however, if you do have a quality department, is it really improving the quality of the important areas of the business or is it just creating ‘quality documents and records’. I suggest that much of the quality effort expended today is geared more to quality audit success rather than creating improvement for the real reason… to better satisfy the customer. If managers want to improve quality they need to ask these questions… what is the satisfaction level of our customers… how is it measured… and when did we measured it last…

For the non-TQM specialists, Prof. W. Edwards Deming’s ‘quality points’ provide a succinct guide to what we all need to do. In summary the critical issues are; ensure a constant effort towards improvement; seek and adopt new work philosophies; be intolerant of the normal or accepted level of delays, mistakes and defects; build in quality rather than inspecting for faults; stop buying inputs based on price; work continually on the system to find problems; institute modern management methods; change primary responsibility from numbers to quality and eliminate numerical goals; institute a policy of education and training; drive out fear and break down barriers between departments; when asking for new levels of productivity provide methods; instil a need for pride in workmanship and of course create a structure in senior management that will constantly strive to achieve all of the above.

DOES THIS SOUND EVEN REMOTELY LIKE THE PLACE YOU WORK?

The hardest complainant type first:

If a customer is abusive you must to make you first goal to calm the customer’s temper and take control of the situation. You need remain open and friendly, stay calm and keep your voice low and controlled. Tell the customer you are interested in his/her complaint and say ‘in order to help you I need to fully understand your problem’. Then ask ‘can you tell me what is wrong in a calm voice to ensure I focus on the problem (rather than the emotion) so I am better able to find a solution’. Let customer ‘vent his or her frustration’ and don’t interrupt. Telling you their complete story, and describing how upset they are, allows customers to release pent-up frustrations. It is wise to take notes as you go as it helps you with your response and shows the customer you are seriously interested in their problem.

BLAMING OTHERS IN YOUR ORGANIZATION

The worst tactic I have come across is a customer service officer trying to blame me, the customer, for the problem. Never play the blame game! Blaming the customer for the problem will dramatically worsen the situation. Also particularly never use the phrase ‘sir our system requires…‘ or even worse ‘sir you don’t understand our system’ (a common phrase with many service providers in Asia, especially bank staff).

Never blame others in your organization. Both the ‘system excuse’ and blaming others will be seen as evasive (or even worse cowardly) and destroy your credibility with the customer. No customer cares about your ‘problems’, they just want their problem solved. Accept responsibility as a representative of your company and place your efforts into solving the problem.

‘FRUSTRATION: HAVING TO RESIST THE TEMPTATION TO CHOKE THE LIVING S..T OUT OF SOMEONE WHO REALLY DESERVES IT!’ This is a funny saying however it has no place in customer complaint handling, in spite of the bad attitude of many customer service’s staff I have met (and trained) over the years.

GET THE ENTIRE STORY:

When the customer has told you the whole story regarding a complaint tell the customer what you will do to solve the problem. Do not tell the customer what he or she must do to solve the problem. Use phrases such as… ‘I will contact the xyz department’… ‘I will find the document’… ‘I will gather the necessary information’ etc. If you use ‘I’ in place of ‘you,’ you will help to minimise tension as it assures the customer that you are taking responsibility for the resolution of the issue. If you need to refer the matter to a third party always check back with the customer to ensure the other party has made contact and that the problem has been solved. Sure it’s wise to check with the third party to ensure a solution has been found first, however contacting the customer after the event will reinforce both your own and your company’s image. Important point never use the word ‘no’, either recommend a solution or suggest a compromise.

PROBLEM SOLVING AS A CHANCE TO LEARN AND IMPROVE

If you view problem solving as a chance to find out how to improve your company’s operation (or image) and as an opportunity to learn something, rather than a nasty experience, you can approach these difficult situations with a more positive frame of mind. In most complaint situations there are only win-win or lose-lose results. Everyone will win with satisfied customers as you can gain a positive company image and an advocate for you and your products/services (plus hopefully some personal satisfaction) or everyone can lose with upset customers and the gradual destruction of your company’s place in the market plus… personal emotional upset. Every time you allow someone else to change your emotional state YOU LOSE. Turn complaints into opportunities! In reality when you win, so does the customer and if you lose, so does the customer.

IT’S BETTER TO RECEIVE A COMPLAINT THAN HAVE AN EX-CUSTOMER THAT NEVER TELLS YOU WHY THEY LEFT!

FOLLOW-UP:

1. After you’ve resolved a customers’ complaint, it’s essential you place a record on file to ensure the next person handling the customer is aware of the problems encountered so they do not inadvertently ‘walk into a minefield’.
2. Best practice in customer service demands that we place a file note to give a little extra attention to the customer to reinforce the fact that the previous problem was a ‘one off’. This may well cement good future relations.
3. You must also ensure that the problem’s causes are analysed and counter measures are employed to make sure the same situation does not recur. If you learn a ‘better’ way you do business make the learning worthwhile and find a way for your company to make the changes required. Also the last thing you want is for any customer to have a similar problem let alone the same customer have two bad experiences in a row. If they do, chances are you’ve lost them (and all those they can influence) forever.

ONE UNANSWERED COMPLAINT CAN LEAD TO THE LOSS OF LARGE NUMBERS OF POTENTIAL CUSTOMERS

Effective or ’good’ customer service needs to be a company wide philosophy not just a procedure. Effective complaint handling is a key element to retaining customers. All job descriptions should contain a responsibility statement for all functions and levels of staff, regardless of their perceived requirement for direct customer contact (or not). In hiring interviews, orientation programmes and training sessions, emphasize that everyone is in the customer service business. Make sure that all employees understand how they directly or indirectly ‘effect’ the customer. Include customer service in all performance evaluations and set up a complaint recording system with a section to report outcomes and responsible personnel. Even if you don’t have a formal ‘Total Quality Management’ function ask employees to submit a list of the specific things they’ve done to help provide superior customer service. If ‘to serve a customer is the only reason for a business to exist’ (and it is) you need to be passionate about updating or modifying your staff’s attitudes and company procedures to eliminate as many complaints as you can.

LEARN TO LOVE COMPLAINTS, THEY ARE GUIDEPOSTS TO IMPROVED PERFORMANCE!

If you can view problem solving as a chance to find out how to improve your company’s operation (or image) and as an opportunity to learn something, rather than a nasty experience, you can approach these difficult situations with a more positive frame of mind. In most complaint situations there is only win-win or lose-lose results. Win with satisfied customers and a positive company image (plus personal satisfaction) or upset customers and the gradual destruction of your company’s hard fought place in the market and personal emotional upset. Every time you allow someone else to change your emotional state YOU LOSE. Turn complaints into opportunities! Remember when you win, so does the customer and if you lose, so does the customer.

Under the heading of “focus on the people who focus on the customers”, a manager’s customer service guide I once read (source unknown) stated:

“Make customer service a part of all written or verbal job descriptions—no matter the function or level. In hiring interviews, orientation, and on-the-job training, emphasize that everyone is in the customer service business. And make sure that all employees understand how they directly or indirectly ‘touch’ the customer.”

“Remember that people do what’s expected when it’s inspected! Include customer service in all performance evaluations. Prior to conducting evaluations, ask employees to submit a list of the specific things they’ve done to help provide superior customer service.”

“Go on a paralysing policy hunt! Ask employees to identify policies and procedures that get in the way of providing good service. Then do your best to update, modify, or eliminate as many as you can.”

*Link for direct page viewers return to main career success blog if you would like to read other posts by Ric at orglearn.

NOTE research indicates that:

1. Seven out of ten complaining customers will do business with you again if you resolve the complaint in their favour and if it is resolved on the spot, 95% will do business with you again.
2. A typical business hears from only 4% of its dissatisfied customers; the other 96% just go silently away and 91% of them will never come back.
3. A typical dissatisfied customer personally tells more than eight people about his or her problem. With today’s communication options and social media usage a dissatisfied customer may now publicize his or her dissatisfaction to thousands.

Talking of dissatisfaction… dissatisfied with your job? Take a look at the free blank resume form and update your resume perhaps!

Make yourself and your products or services easy to gain access to.

Whether it’s online or through real locations simplicity of access is the key. Make sure your stock levels are well managed and matched to demand. Being out of stock is a sin. When it comes to online access test to web pages with new eyes or first time users to ensure the novice buyer is able to intuitively make a purchase. A great example of what not to do is Optus Australia… what a mess, must cost them a fortune in customer service calls/support inquiries. They have one of the worst web pages I have seen… see if you can link an account to your online access. They even stated you could pat with Paypal only to advise that actually for my prepaid wireless service they had changed policy and I couldn’t. One problem is packaging terms used in instructions don’t match online options, inconsistency in messages creates massive confusion.

Select positive and friendly staff who see serving customers as a pleasure.

You must train and train your staff to be helpful and friendly at all times with customers regardless of their own personal difficulties. I have been in three businesses recently one with a grumpy waitress, one with a stressed and defensive supervisor and one with a very helpful and pleasant sales assistant. One business will see me back I’m a loss to the other two… oh and so will my friends be.

Competence, speed and responsiveness from all organizational levels.

Again to mention Optus Australia. I was unable to get onto the net so I rang their support line. My 1^st question is there a problem with the wireless tower… no sir, OK what do I do. Could you restart your computer… OK tic tic restart, no that did not help. OK sir could you uninstall the program and reinstall… 5 minutes later, OK? no still not working… are you sure there’s not a problem with the tower… I’ll check Sir… no the tower is operational. Can you go to your local Optus shop and test your modem… rather not what else… It could be a settings problem are you using Microsoft?… no Apple and it worked yesterday. Can you please make sure its not your tower down… I’ll ring again sir… tic tic tic… Oh I sorry Sir yes there is actually a problem with the tower technical had not advised us… why not… we wait till a customer has a problem to investigate sir… so I’m an unpaid consultant and I’ve just spent 28 minutes of time and its cost me about $21.00 to call you.

So the final point get pertinent operational information to your customer interface.

Personal attention: don’t hide behind automated telephone services.

How many times have your seen the notice “online help not available”. How many answering machines and punch in the numbers systems have driven you crazy… people deal with people not machines no matter how good you think they are. If you are going to provide self-help tools or support make sure they are foolproof, easy, easy, easy and reliable. Supermarkets nowadays not only provide shoppers with a range of trolleys and baskets one I was in the other day had self-checkout, wow it was quick easy and effective.

Number Five… perhaps you could tell me by way of a comment… sorry

I like this quote by Steve Tobak “The only thing more powerful than delivering a great product is saying you’re going to deliver a great product and then doing it.” So perhaps five is tell the world what you will do and then make sure you do it!

Ric (orglearn) **Link for direct page viewers return to main career success blog to check out other posts!

While you’re here take a look at the free blank resume form!

WHEN YOU INVERT THE PYRAMID WHAT DOES EVERYONE DO?

For those of us working in rapidly changing markets (all of us) where inverting the pyramid is the least we need to do, what are the new priorities for each group:

For the STAFF that deals face to face with this powerful ‘new’ customer the struggle has been (and still is) to expand their knowledge to be able to effectively deal with their customer’s ever increasing demands. Organizations need to provide customers with rational decisions on ‘problems’ in the shortest possible time to survive, let alone prosper. This has forced a process of empowerment or the need for individuals to take responsibility for their own performance (success) as well as their company’s success. In some corporate, or even national cultures this is quite a challenge.

Even during time of economic stress the need to constantly train and update staff does not diminish. Modern brain studies on brain plasticity and learning styles og individuals prove that training must be constant and repetitive so that new ways of doing things become part of long term memory not just a one week short term memory fad.

For the MIDDLE MANAGEMENT that has time, money, status, careers, success, knowledge and their power based in the system as it was, the great challenge is to overcome their fear of change. For many of these people, being good at working the system has led to their success. In the future being good at doing business with the most important person in the equation… “The Customer”… will be the only basis for continued employment.

Most change programs fail because the middle management have a very strong personal investment in the “status quo” so strong efforts must be made to shift this group in particular to any new operational standards agreed upon. The alternative is of course to remove this level from the company before you set the new direction… some that perhaps Jack Welsh would perhaps approve of, revolution rather than evolution. If you did wisely decide on a new paradigm for the way your company operates this middle group will provide the most headaches.

SENIOR MANAGEMENT’S role is still to provide vision, mission purpose and values, however it is impossible (as many try to do), to remain ‘the technical expert’ or even the daily operational decision makers. The levels of service demanded by the powerful new customers make it impossible to operate effectively with only a few top decision makers. These people need to become strategists rather than planners. Now many bosses will baulk at the prospect of perhaps becoming “servant managers” however I predict those that don’t embrace a more enlightened view of their role and real value to their organizations will be removed from their lofty perches.

Those who won’t or can’t change to the new business reality face at best a bleak future in ever disappearing lowly paid manual labour type jobs, old world companies in the remotest corners of the business world, or even worse… perhaps a career in the public service, where they just might be able to hide for a few more years.

DEATH TO THE BUREAUCRACY!!!

Ric (orglearn) **Link for direct page viewers return to main career success blog to check out other posts!

Looking for a move to a more enlightened organization perhpaps its time to update your resume take some time ro fill in the template at resume form and at lest get a basic resume started!

Leadership Competence and Linking it to a Leadership Brand, so which competencies are important and who should decide?

Talking of branding ourself…

Ric (orglearn) **Link for direct page viewers return to main career success blog to check out other posts!

While you’re here take a look at the free blank resume form!

Some basic staff must do’s

Something so basic you would wonder why it needs a mention. Know your product so you are the expert, know your company so you are an expert and know your customers real buying motives so you are the expert. So what is a real buying motive… hmmm it’s a Mercedes Benz and your customer says he wants it because its “safe”… rubbish he wants the prestige, go along with the safety game however sell the prestige. If you want to serve your customer well you must also know who to refer your customer to or who to go to yourself within your organization to answer all customer queries. Have you ever been told “oh you’ll have to see spare parts about the extra” whatever you wanted or… “accounting’s around the corner for that information”… don’t do that, if you are handling a customer you contact spares or sort out the accounting inquiry on behalf of your customer.

Handling Difficult Customers. The first and often forgotten rule is that complaining customers are referring to their disappointment with your company, product or service, so don’t take the complaint personally. It is easy to become defensive about your company however this natural tendency needs to be resisted. The thing you need to remember is it is always better to separate the person from the problem. So you’re not dealing with a difficult customer your dealing with a customer with a difficulty. At all costs stay calm believe you are good at your job and act professionally and dispassionately even if the customer doesn’t. Oh yes always take notes and ensure some learning occurs.

The Art of Selling All the Time. Often companies need to send out notices for issues such as say, changes in legislation, changes is service standards, product recalls, temporary closure of outlets, renovations, or changes in terms and conditions. All contacts with the customer need to be sales oriented and offer a positive for the customer. So the old “Please be advised due to blah blah blah and we apologize for any inconvenience caused” letter just won’t cut it. If you have some negative news at least add an offsetting positive to the communication. Example you have a hotel and your XYZ restaurant is being closed for renovation, don’t ‘please be advised’… instead, its ‘great news ABC restaurant is now offering an extended menu with a special guest chef’ then you add at the bottom, ‘during this wonderful promotion we will be renovating XYZ’.

Working as a Team. For a truly customer oriented organization to be in operation the entire company needs to believe they are… and act as if they are… “one team”, all focused on adding value for their customers and yes that means that sales and service are the responsibility of accounting, production, financial control and even the human resource department. Huh you say… are you crazy… nope all decisions need to undergo the “value add” to the customer versus, the “energy suckers” on the company test. This is often not easy to achieve as inter department culture wars are common in and a crippling reality in many companies.

EXCELLENT SERVICE NEEDS A TOTAL COMPANY COMMITMENT

A strong customer focus at all organization levels is basic to success in providing excellent customer service. Customer focus by all employees versus, the all to common, ‘IT’S THE SALES DEPARTMENTS RESPONSIBILITY’ is essential to prevent ‘cock-ups’ at the external customer service level. We all need to realize that there are three types of customers for most of us to service… ‘internal’, ‘ultimate’ and ‘external’…

We all know our internal customers (don’t we)… these are any individuals that receive our work output. In most organizations we also have ultimate customers… these are guys/ladies at the sales/buyer interface… and of course we are all here to serve the external customers or those (if we are smart) we refer to as ‘king’!

So who are our customers then? Anyone for whom we do anything is our customer, whether it is directly from one hand to the next, or indirectly through others in the service chain. Therefore if we need a strong customer focus by our non-sales staff they will have to buy into the proposition that they need to work to serve the ultimate customer and their priority must be to do their job in such a way that it makes the job of the next person in line as easy as possible.

In your company… HOW DO THE STAFF IN PURCHASING, FINANCE, ACCOUNTING, HR AND ADMINISTRATION SEE THEIR ROLES?

www.orglearn.org career advice, resume tips and a free blank resume form

Some basic must do’s

Staff must be trained and tested to ensure they can effectively communicate both orally and in writing. If you can’t invest in hiring or training great communicators at least design a broad range of idiot proof form letters that cover common situations and have a senior manager vet them before they are sent out.

Ensuring that proper telephone techniques are understood and practiced is another essential and one that in my experience is often overlooked. Even major international banks are known at times to hide behind their automated systems. How many times have you been lost in the call transfer process or been sent through three or four idiots before you got to the service section you needed.

Problem solving must be ingrained in all staff as a primary responsibility. I recently spoke to a HR department in a major hotel regarding an issue and was told “that’s not my job and you’ll have to speak to Mr so and so”. This person had no positive customer service attitude and was not at all interested in the impression her bad and disinterested behaviour left on the customer. In contrast I once watched a busy chief executive personally handle a basic question from a customer and after referring them on to the correct department followed up both the service staff and the customer with a call to ensure the query had been handled to the customer’s satisfaction.

Ensuring staff give “compelling customer greetings” is a key to being perceived as an organization that offers great customer service. There are many techniques for ensuring staff know who their customers are by name. With computerised tracking systems it is easy to build a data base of your customer association with your organization. Which do you like? “Hello sir how may I assist you?” (to a repeat customer) or “hello mister Jones nice to see you back how is your xyz widget performing” or “hello Mr Smith, wow you were only here in June you must enjoy our hotel we are really pleased you have come to stay with us again”.

EXCELLENT SERVICE IS A PHILOSOPHY, NOT A TECHNIQUE!

Questions to ask yourself:

Does our company/department/staff take customer requirements very seriously? If we are to be truly customer focused… no one is just doing a job, we are all satisfying customers. How long has it been since we have executed (metaphorically speaking) anyone for saying “its not my job”. Is our organization free of demarcation disputes? Do we have a total quality attitude to our work or is everybody working to rule.

Do we look at what we do from the customer’s point of view? How long has it been since we surveyed our customers; got feedback on how we are doing. (“Face-to-face” is best.) How much effort is really taken to make our customers feel important and respected? Try this… put a dollar coin in a jar every time you hear a phone sound for more than three rings and if the jar is too heavy to lift at the end of two months invest in some attitudinal changes in the corporate culture.

The latest wisdom suggests that partnering is the way to the future… do we show concern for our customer’s business requirements, communicate effectively our needs and demonstrate an understanding for theirs. Is there a follow-up system in place or do we just wait for complaints. When we get complaints do we conduct a ‘witch hunt’ or do we re-educate the staff to do it better next time.

DOES OUR ORGANIZATION PROFIT (LEARN) FROM OUR MISTAKES OR DO THEY JUST COST US CUSTOMERS?

www.orglearn.org management tips, resume tips and a free blank resume form