Who’s more important: the division president or the customer?

Apathycigarette copyIn an earlier post I asked the question, “Why is it okay to behave indifferently toward customers and roll out the red carpet for the division president?” Specifically, why do employees paint, wax the floors, and polish the chrome for the division president and text friends, smoke near store entrances, and complain and banter in the presence of customers?

I have a theory about this. Here it is: Familiarity breeds contempt. Most employees rarely come into contact with and, thus, aren’t familiar with the division president. Oh sure, they may know his or her name but they’re usually not familiar to the point of lowering their guard in the executive’s presence.

Not so with customers. Customer-facing employees come into contact with customers all the time. And whether or not there is personal familiarity with a particular customer, there is a sense of familiarity with customers in general. And where there’s excessive comfort and familiarity, there’s contempt—a lack of respect—and a tendency to take the relationship for granted.

It’s not that employees don’t know what service is or how to deliver it. They do. And they showcase this aptitude in the presence of the division president. The issue is that many seem disaffected by customers—as in, “Oh, you’re just a customer. For a minute there I thought you were someone important, like the division president.”

In the introductory paragraph of this post, I listed three behaviors that I regularly observe in retail settings. These behaviors are chronic. They occur frequently. The only time they are exceptions is when the division president is on-site.

When executives grace the operation with their presence, the floors are spotless, there are plenty of employees scheduled, employees’ uniforms are pressed, there are lots of smiles, and there is a sense of urgency—dare I say, a bit of giddiness and extra pressure to perform?

The best operations don’t distinguish between a scheduled site visit by a division president and the scheduled opening of the store to service customers. Sure, there may be a bit of anxiety associated with the presence of a company executive—that’s natural—but the company’s standards don’t wane in the absence of headquarters staff.

Nordstrom comes to mind as an example of a retailer who puts its best foot forward whether a customer or Blake Nordstrom is entering the shoe department. The last time I was in Nordstrom, an employee from the men’s department walked me to the women’s department in search of an umbrella. When we returned to the men’s department, I decided to buy a bottle of cologne too. It was an impulse buy—in the moment. I didn’t plan to buy it and, in the absence of his outstanding service, I would not have.

Here’s an assignment for division presidents everywhere: If you really want to see how your operations run, stop by unannounced in a ball cap and jeans over the weekend. Don’t embarrass anyone. Just observe and take mental notes about what you see—the positive as well as need areas.

Then, assuming there was a gap (or chasm) between what you observed during your last official visit and this one, take action. Establish or reinforce credible standards to guide employees’ behavior. Make sure that every manager is aware of the standards and actively uses them to manage their employees’ performance. And, perhaps most importantly, hold managers accountable to model these standards at all times. If they don’t, the standards are no longer credible and become unenforceable.

Bob Farrell, author of Give ‘em the Pickle, is fond of saying, “What they see is what you’ll get.” When employees see their managers modeling established standards of service and procedure, they will perform similarly. When this happens, employees will stop texting friends, smoking near store entrances, and complaining and bantering in the presence of customers. And they will no longer seem disaffected by customers. Instead, they will treat them with the same courtesy, respect, and care with which they treat the division president.

Who’s more important: the division president or the customer? You decide and then your employees will follow suit.

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  • Bob Watson

    This is an amazing post and one that I plan on sharing with everyone in my company! In regards to your Nordstrom reference, I have experienced an upswing in their employees’ attitudes of late; there was a period during the past several years that I was extremely ‘unimpressed’ with their attitudes towards service and the customer, to the point of asking if they had read ‘The Nordstrom Way’.

  • http://www.onthedotcreations.com Julie

    A great reminder, Steve. I can’t help but apply this concept to my own personal life and home. Why do I spend more time cleaning/sprucing up my home for visitors but let things get a bit messy for my own family to see? Point well-taken.

  • http://www.stevecurtin.com Steve

    Julie, I agree. Double standards are a sad fact of life. The difference, in my household anyway, is that when I demonstrate hypocrisy, my wife usually says, “C’mon Steve. You know better. You teach this stuff.” Oh, the dagger… ; )

  • http://www.stevecurtin.com Steve

    Bob, thanks for your comment. I too have experienced isolated incidents at Nordstrom over the years that have left me stunned – given its reputation for service excellence. That reinforces the point that a company’s reputation for service excellence lies precariously in the hands of front line hourly employees on a daily basis. That’s why I tend to jump up and down about establishing, communicating, modeling, and rewarding standards of service excellence. Thank you for sharing this post with others on your team!

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  • http://ericjacques.org Eric Jacques

    Great post Steve! Thanks for pointing me to it.

    Although I disagree that it’s due to familiarity, everything else is spot on.

    The underlying cause is much more likely to be a misunderstanding of the power structure within the company.

    No employee would have a job or a salary if it wasn’t for customers; we all know it. However, employees don’t “feel” it.

    Employees are rarely “fired” by a customer in a noticeable way. However, management does have a visible control over an employee’s continued employment, bonus or salary increase.

    I believe that connecting compensation to customer satisfaction is at least a partial solution. One of my first blog posts was actually “What is Paid for REALLY Gets Done”.

    Cheers!
    Eric

  • http://www.stevecurtin.com Steve

    Eric, great points. You’re obviously been a student of the subject. I agree that for many, money is a motivator and that there is a place for financial incentives in the workplace. And I also agree that connecting compensation to customer satisfaction may be a partial solution. That said, I feel selection practices (e.g., StrenthsFinder, behavioral interviewing techniques, etc.) have the strongest enduring effect on customer satisfaction – assuming high standards exist and are reinforced daily by company leadership. When the right people have been hired for the right job, that match shows up in their performance. And when the wrong people have been hired for the wrong job, that mismatch shows up in their performance (like our supermarket friend who thinks it’s acceptable to criticize customers who don’t put their carts away). The best recent example of this that I’ve come across is the selection and onboarding process at Zappos. It allows employees to quit following their orientation/new-hire training and collect a check for hours worked plus a $2K bonus on their way out. Only 2-3 percent of employees take them up on this offer. And they’re likely the same employees who would add the least value – for customers and the business – in the long term.

  • http://ericjacques.org Eric Jacques

    Absolutely Steve. I agree that it’s only a partial solution.

    However, selection is also only a partial solution.

    I’ve hired some great people to do customer service, only to have the corporate culture render them cynical and blasé. We also need to empower these employees to make decisions and deliver excellent service.

    At a minimum, you need all three; hire great talent, compensate them for excellent service and have a customer-centric culture which empowers employees to do the right thing.

    Cheers!
    Eric

  • http://www.stevecurtin.com Steve

    Eric, thanks again for your comments. Look forward to connecting more in the blogosphere and on Twitter.