Archive for April, 2010

Fat bill at Fatburger

Wednesday, April 28th, 2010

fatburger1Have you met anyone who enjoys being nickel-and-dimed? Do you know anyone who embraces unexpected add-on charges? Of course not. That’s because these business practices are irritating.

Last week, I brought my family to Fatburger to enjoy a good hamburger (their burgers are delicious). Since this was my first time at Fatburger, I was especially attentive to things like cleanliness, customer service, value for price paid, etc.

I spotted a sign near the register promoting kid’s meals for $5.59. This included a hamburger, fries, and a drink. Since three of my four children were interested, I placed an order for three kid’s meals with plain cheeseburgers, fries, and chocolate milks.

When I received the total, I immediately felt like it was too high (not the sort of reaction you want customers to have in response to their bills). After paying, I joined my family at one of the booths and began scrutinizing the receipt (again, this is not the sort of reaction you want customers to have after completing their purchases).

After adding up the cost of the $5.59 kid’s meals that I ordered, each totaled $7.36 before tax.

Here’s the breakdown from the receipt:

$2.79 Hamburger
0.79 Cheese
1.69 Chocolate milk
2.09 Fries
$7.36 Total

That’s $1.77 or 32 percent more per meal than I expected to pay! I felt nickel-and-dimed by the unexpected add-on charges. When I approached the manager during my meal to inquire about the charges (yet another reaction you don’t want customers to have), he graciously refunded me one dollar for each kid’s meal I purchased.

Now, I suppose a Fatburger representative would point out my own negligence in either overlooking the menu’s fine print (something else that irritates most customers) or failing to inquire about the price differential when ordering chocolate milk as opposed to a soft drink.

But she would be missing the point.

You don’t win these types of debates with customers. And even if you score more debate points, who cares? The customer ultimately decides who the real winners are because, in business, winning is influenced by factors such as repeat purchases, referrals, and other characteristics of loyal customers.

Personally, I am loyal to Chipotle Mexican Grill. Like Fatburger, Chipotle has clean restaurants and an amazing product. But unlike Fatburger, I’m not surprised by unexpected add-on charges and don’t feel compelled to scrutinize their receipts.

When I order a burrito with cheese and sour cream, the price doesn’t change. And if I order guacamole, the server will always announce the extra charge and gain acceptance before adding it to my burrito—avoiding an unpleasant surprise at the register.

In spending my discretionary income to dine out at a quick service restaurant, I will choose fat burritos with no surprises over fat bills with unexpected add-on charges.

How about you? Why do you choose to spend where you spend?

Buyer’s remorse and loyalty don’t mix

Friday, April 23rd, 2010

VinegarandoilI can think of a lot of feelings you’d like your customers to have following a purchase. Remorse isn’t one of them.

Buyer’s remorse is the feeling of regret after a purchase and is often associated with a consumer’s perception of being taken advantage of and receiving poor value for the price paid. These feelings do not inspire confidence, loyalty, future spending, referrals, or anything positive.

Earlier this week, I had lunch with a client who shared an experience he had fourteen years ago at a local restaurant. He and his wife were dining with a friend. Having just returned from a trip to Italy, he presented their friend with a stylish hand-blown glass vinegar and oil cruet.

The restaurant’s owner, having observed the small decanter on the table, offered to fill it with vinegar and olive oil from his kitchen. What a thoughtful and memorable gesture!

As the dinner concluded an hour later, my client received the check. Itemized towards the bottom of the bill was a $17 charge for vinegar and olive oil.

Having felt taken advantage of by the owner, he has only returned to that restaurant once in the last 14 years—and that was as the guest of another couple. In other words, that $17 charge (which he paid) was among the final dollars that he would spend at that restaurant.

In his zeal to capture short-term profits, this restaurant owner forfeited any chance to earn the long-term benefits of a delighted customer: loyalty, future spending, referrals, etc. Like vinegar and oil, buyer’s remorse and loyalty don’t mix.

How about you? What has your experience been with businesses that place profits ahead of customer service?

Most customer service is just fine

Sunday, April 11th, 2010

sirensThe next time you go out to eat, pay attention to the question you receive from your server or the hostess as you leave the restaurant. Most of the time, the question you will hear is this: “How was everything?” And I can even anticipate the likely response: “Fine.”

A close-ended question evokes a close-ended answer. It is efficient but cannot provide the sort of feedback required to improve upon the current product and service quality. This type of question is also unlikely to uncover any dissatisfaction the customer may have experienced. It’s worth noting that, according to consumer research, 96 percent of customers who experience a problem do not complain. Ironically, while customers tend to withhold their criticism from service providers, they have no problem sharing their negative experiences with anyone else who will listen.

“Fine” is an incomplete answer to an insufficient question. “F.I.N.E.” is simply an acronym for “feelings inside not expressed.” This is why it becomes imperative for service providers to ask better questions. The next time you hear a customer say “Fine” in response to a well-intentioned but insufficient question, sirens should go off! You should hear, “Wrrrrrr, wrrrrrr, wrrrrrr!!!” This is your cue to ask a better, focused open-ended question!

The conversation will go something like this:

You: “How was everything with your meal?”

Customer: “Fine.”

(sirens) Wrrrrrr, wrrrrrr, wrrrrrr!!!

You: “Thank you. Tell me, if there was just one thing we could do to improve your dining experience next time, what would that one thing be?”

Pause.

Customer: “Well, now that you mention it, there was just one thing…”

From there, it’s up to you to capture the feedback and share it with others who can respond to it. If practical to do so, let the customer know that her feedback was shared as well as the changes and results that followed. In this way, the customer becomes a very real stakeholder in the success of your business.

Besides, who wouldn’t want to return as a customer to see her feedback reflected in the menu, atmosphere, service—or whatever aspect of the experience pertained to the feedback?

Southwest Airlines crowned the best customer service provider

Thursday, April 1st, 2010

SouthwestAirlinesEarlier today I received this note from a friend, Evan Crist, and just had to share:

We were traveling from Denver to Phoenix for some fun in the sun when Southwest Airlines lived up to their reputation for spontaneous entertainment and pleasing service. (I love the line, “If you are not pleased with our service, we have six emergency exit rows throughout the plane. Please locate the one nearest to you!”)

Approximately halfway through the flight, Nancy, the flight attendant, came on the intercom and announced, “We have a very special guest today. Spencer is five years old today. Spencer could you please join us at the front of the cabin?”

As Spencer made his way to the front, a bashful little girl who appeared to be eight years old or so emerged from behind Nancy toting a flute.

Nancy explained, “Spencer’s sister, Elisa, would like to play ‘Happy Birthday’ for her brother on the flute.”

Elisa sporadically blew her best ‘Happy Birthday’ song and the cabin clapped. Then the whole cabin, led by Nancy, sang the birthday song to Spencer—again to his delight.

Next, without any fanfare, Nancy placed a crown on Spencer’s head. The crown was made of clear Scotch tape, Southwest Airlines peanut packets, and red plastic olive skewers.

As King Spencer pranced down the aisle proudly, I noticed the crown—an unnecessary, spontaneous, free, yet brilliant example of customer enthusiasm that cannot be mandated but cannot be overvalued.

No doubt, Spencer ate his crown before his parents retrieved their bags but he won’t soon forget that flight. Neither will I.

I bolded Evan’s observation above because it illustrates the theme of the previous post, That little extra

It’s true. When you break it down to its fundamental components, exceptional customer service really is optional and free! (Or, at least no more than the cost of some peanuts, olive skewers, and Scotch tape.)

If employees choose to perform like Nancy, the flight attendant, (and it’s supported by the corporate culture), their company may also be crowned the industry’s best customer service provider—just like Southwest Airlines.

Contact Steve

Begin generating enthusiasm for your customers today!

Phone
303.325.1375

Email
info@stevecurtin.com