Imagine yourself a business entrepreneur. You have a valued product, your costs are equal or below your competition, and you have the best technology available. But your market share is flat … you are not gaining against your competitors. What do you do next?
Whip out the customer satisfaction survey and send all your employees to "smiles" training. That ought to do something …. wrong. Companies today cannot use the old tried and true customer service ploys that worked in the past. You must be far more sophisticated in providing quality service to be competitive.
In my 20 plus years of working with organizations to improve customer care, I have seen companies like Nordstrom, Union Bank of California and In-N-Out Burgers gain customers, while companies like Robinson’s-May, Wells Fargo Bank, and Denny’s lose customers.
After interviewing over 2,000 customers we have found that there are eight critical elements that allow some companies to provide competitive customer care. Are you doing the following in your company?
1. Engage the customer quickly and effortlessly. Wherever your customers are, they must be able to access you easily to do business. You must immediately recognize them and begin talking with them to initiate the business transaction. Whether on the phone, in person, or on the Internet, your employees must quickly greet every customer and recognize them as individuals.
How many times have you called a business, only to be put on hold, listening to endless menus? How often have you entered a store, and no one ever offers to help you. The customer should not have to work at getting you to serve them.
2. Value the customer's time as much as yours. Whenever you can, reduce the time it takes for you to complete the customer’s request. Every minute the customer has to wait is lost competitive advantage. Use technology, or simplified processes to lessen the time involved.
Why is time important? The value of time to most customers has increased enormously in the last decade. Time the customer uses to do business with you … is lost opportunity to do something else. It is a cost to the customer, just like the dollars they pay you.
When a customer places an order, there should be immediate gratification or benefit received. Customers should receive that product or service quickly. The longer the customer waits, the more the customer perceives a cost of doing business, rather than a benefit.
3. Learn the skills needed to deliver quality care. Many organizations mess up by using customer care positions as entry or apprentice positions. They take people off the street, make sure they can work the cash register … give them a 3 minute speech on the importance of good service, and then turn them loose. The result is disaster.
Employees need to know what the organization means by quality customer care. What do they need to do to provide quality care? If you don’t define quality care, and you don’t teach people the skills to deliver it, you get a clerical approach to customers. All that employees end up doing is taking orders and processing payments.
4. Treat customers differently. Only when you become skilled at delivering customer care do you fully recognize that not all customers are the same. Some customers are more valuable than others, and deserve extra special care. Each customer also has different needs and expectations. All customers have their own view of success …and what will solve their problems.
The trick is to identify those customer differences and be able to react to them. PC makers, such as Dell and Hewlett-Packard are now manufacturing computers to individual customer specifications … rather than making them all the same. Dell uses its Web site to allow customers to customize their own computers. Then Dell builds each computer to individual specifications.
Why do airlines offer special lounge facilities for frequent and corporate customers? Because those customers expect different customer care, are repeat customers and purchase a relatively more profitable ticket. Your organization must be able to provide a customized service to different customers.
5. Learn as you work with customers. You need to develop a relationship with your customers so that you are constantly receiving input and feedback from them. You must use the feedback to continually learn more and more about customer needs and preferences. Customer needs are always changing, and if you are learning as you go, concentrating on what your customers are telling you, then you will be responsive to changing needs. It will allow you to be more innovative and bring new products and services to the market faster.
Why has Saturn been effective in changing the way they sell and service automobiles? Why has Amazon.Com revolutionized the sale of books? They are listening and learning from customers.
6. Focus on developing repeat business. Providing customer satisfaction once is not enough. You must provide the level of care that causes your customers to come back and repeat their business transactions, over and over again.
The key to being competitive in the year 2000 will be to develop customer loyalty. Begin measuring how many customers come back and repeat their business with you. If you are losing customers you are losing market share and profits.
7. Design your organization around customers, not functions. A trap that many organizations fall into is to design their work force to operate in functional groupings. This may be efficient, but if carried too far will cause you to handle all customers the same, regardless of their unique needs and preferences.
Why should a nation-wide customer who buys your product in bulk quantities go through the same process as a low-volume, first-time buyer? Be sensitive to the differences in your customers and orient your organization to what is easiest for the customer, not what is easiest for your employees.
8. Leadership Of all the improvements mentioned above, this is the most crucial to you developing customer care and becoming competitive. If you don’t do this correctly, all the other seven items will fail.
Leadership isn’t a theoretical concept or intellectual process. Effective leaders not only express what needs to be done, but they do more. They demonstrate quality customer care in all that they do, so people can see it. They carefully measure the customer care being delivered by their organization. And when they see successful customer care, they recognize and reward individuals for doing a good job.
These eight critical elements to providing customer care are not easy to do. They take effort, attention and persistence to make them happen. But if done successfully, these elements can distinguish your organization from your other competitors. They are the competitive edge that can gain you market share. |