Archive for February, 2012

Share unique knowledge

Saturday, February 25th, 2012

This post is the third in a series that will identify 10 different customer service advantages that have emerged from my analysis of customer satisfaction data. Maybe you have capitalized on one or more of these advantages in your own business? The third advantage is to share unique knowledge.

A while back I read a Wall Street Journal article by Timothy Martin titled, Choice Advice From Meat Cutters. The article highlighted the benefits of training butchers at leading supermarket chains to engage customers as a chef rather than as simply a meat cutter. The difference separates a memorable, customer-focused experience from an ordinary, process-focused transaction at the meat counter.

As the scale of operations has grown at most supermarkets, many meat cutters disappeared from the meat cases to backrooms where interactions with shoppers were limited to announcements over the intercom. Their roles shifted from a familiar butcher who formed close bonds with shoppers, remembering names and preferences (people-focused), to an anonymous meat cutter whose priority was churning out enough hamburger patties and chuck steaks to fill meat cases (process-focused).

One way to re-engage butchers with their customers—while increasing job satisfaction and sales at the meat counter—is to encourage them to share unique knowledge.

Unique knowledge is not the same as job knowledge. Job knowledge is necessary for an employee to be proficient in his or her job role. It is expected by the customer and, generally speaking, is transactional. Unique knowledge, when shared by the employee, is unexpected, valued, and memorable.

To illustrate the difference between job knowledge and unique knowledge, consider this comment from Aram Dakarian, meat manager at a Jewel-Osco supermarket in Chicago: “Before, I’d tell customers just to squeeze out the blood and add some salt and pepper (job knowledge).”

But now he eagerly offers cooking tips (unique knowledge). For example, for baked chicken, he recommends olive oil with a dash of lemon pepper. For steaks, a garlic or peppercorn seasoning rub, or two hours soaking in a wine sauce marinade.

Instead of simply sharing job knowledge: A flat iron steak is cut from the shoulder of a steer, he can add more value by sharing unique knowledge: How to properly grill a flat iron steak and the difference between dry (grilled or broiled) and wet (simmering or braising) cooking.

Grocers are banking on shoppers’ willingness to pay higher prices in return for general dinner advice. And there is also a benefit to employees as described by Mr. Dakarian: “Now, I’m getting more in-depth with the meat, looking at it more like a chef. It makes me feel good.”

While customers appreciate nice employees, they value knowledgeable employees. And the more unique knowledge employees possess, the more value they add to the customer experience.

What’s an example of unique knowledge that you share with your customers?

Offer sincere and specific compliments

Wednesday, February 22nd, 2012

This post is the second in a series that will identify 10 different customer service advantages that have emerged from my analysis of customer satisfaction data. Maybe you have capitalized on one or more of these advantages in your own business? The second advantage is to offer sincere and specific compliments.

When I ask audiences, “How many of you have received a sincere and specific compliment today?” only a smattering of hands go up. Then I ask for volunteers to share the compliments they received and how it made them feel. The responses generally include: appreciated, valued, respected, important—all of which foster positive relationships. And almost always, these participants are further validated by the large group with smiles, nods of recognition, and applause after sharing the compliments received.

When I question why more of them had not been complimented that day, I hear responses such as “People are too busy or preoccupied to notice an opportunity to compliment others” or “When people are more familiar with each other—like in a work environment or a personal relationship—it’s easy to take one another for granted because you see each other everyday.”

Exactly. Over time, this lack of awareness, dulling of sensitivity, and indifference undermines the quality of the relationship (whether professional or personal) and opens the door for a competitor…

Making lasting positive impressions on others demands effort on our part. It requires a choice between conveying indifference or interest toward another person. We must be intentional about it by actively seeking opportunities to offer sincere and specific compliments.

For example, you might say to a customer, “That’s a great looking watch! Is it a Tag Heuer?” And then, assuming you have a genuine interest in and knowledge of watches, demonstrate your enthusiasm by adding something like, “Have you seen the Carrera model endorsed by Jeff Gordon?” He will appreciate that you recognized his watch and, if you are talking to either a watch or NASCAR enthusiast, your interaction is bound to be memorable!

Now I’m not suggesting that you manufacture compliments in order to better serve your customers. The opportunity to offer a sincere and specific compliment will not present itself during every customer service interaction—and insincere compliments are awkward. Just be on the lookout for opportunities to genuinely recognize a customer’s jewelry, attire, hairstyle—even the behavior of young children.

And here’s a unique twist on how Chris Sharma, Nordstrom’s No.1 sales associate for the past 10 years, uses compliments to help drive more than $1 million in annual sales: Appealing to their egos, he tells customers if they don’t get a compliment on an outfit or accessory that he has selected for them, they can return it. It’s a bet he has rarely lost.

We all appreciate compliments. Author Robert Orben said, “A compliment is verbal sunshine.” Be deliberate about recognizing opportunities to genuinely compliment others and let the sun shine bright on your relationships—and business!

When was the last time you were complimented by a service provider?

Express genuine interest

Wednesday, February 15th, 2012

This post is the first in a series that will identify 10 different customer service advantages that have emerged from my analysis of customer satisfaction data. Maybe you have capitalized on one or more of these advantages in your own business? The first advantage is to express genuine interest.

Expressing genuine interest takes many forms: engaging communication; anticipating needs; displaying attention to detail; following-up; conveying a sense of urgency; etc.

In this post, I’ll reference a Feb. 15, 2012 Wall Street Journal article titled, Shopping Secrets of the Pros by Ray A. Smith that contains several examples of retail sales associates expressing genuine interest in their customers.

Engaging communication:

One of the top-ranked sales associates profiled in the article, Claudia Coleman of Neiman Marcus, said, “You have to listen to the customer. Ask them their favorite color, what they like, what they do—all these questions to be able to understand their needs.”

Anticipate needs:

Many of Ms. Coleman’s customers attend the same charity events and galas, and so she has become known for discreetly keeping track of who buys what for which event. When someone wants a dress that Ms. Coleman knows another woman has already bought, she’ll say, “I’m very sorry, that dress has been sold,” and guide them to something else.

Display attention to detail:

Keeping track of all those moving parts is a challenge. Ms. Coleman keeps meticulous notes and memorizes dates and purchases.

Follow-up:

Ms. Coleman follows up purchases with a thank-you note, and she often goes a step further, making a phone call or sending a text to ask how the purchase worked out or to call a customer’s attention to something new in the store.

By expressing genuine interest in her customers, Ms. Coleman has an advantage over average sales associates. This advantage not only distinguishes her as a top-ranked personal shopper, it also separates Neiman Marcus from average department stores in the eyes of its customers.

How do you express genuine interest in your customers?

Advantages

Wednesday, February 15th, 2012

The statistician W. Edwards Deming once said, “In God we trust; all others must bring data.”

When I begin a project, the first thing I do is gather data to assess the current state of service quality. I do so by interviewing stakeholders such as managers, hourly employees, and, when possible, actual customers.

I also pour through customer feedback on review websites like TripAdvisor, Priceline, and Yelp. And, when available, review proprietary data such as customer satisfaction survey results, customer verbatims, and mystery shop reports.

The purpose of this analysis is to gather data that will objectively point to advantages that contribute to customer satisfaction as well as obstacles that hinder satisfaction.

For the next several weeks on my blog, I’m going to highlight 10 different customer service advantages that have emerged from the data and the ways that companies are leveraging them to enhance customer service.

Here’s the first post: Express genuine interest featuring Neiman Marcus.

Self-service with a smile

Wednesday, February 15th, 2012

Last month, I received a review copy of The Customer Experience Revolution: How Companies Like Apple, Amazon, and Starbucks Have Changed Business Forever by Jeofrey Bean and Sean Van Tyne.

Among the companies profiled in the book is EMN8, a manufacturer of self-service kiosks for quick service restaurants (QSR) and fast casual dining restaurants. EMN8 has succeeded in creating an easy, fast and engaging experience for restaurant customers that also benefits the business by increasing the average check, improving the speed of service, and lowering transaction costs.

But still, won’t customers consider the self-service kiosk to be an inadequate substitute for a real, live person who has the potential to make eye contact, smile, and add energy to her voice as she asks, “Would you like fries with that?”

Apparently not.

According to the authors, “EMN8’s research and development data and actual sales results show that younger customers, in particular, actually prefer an automated process, because they are in control of their own order. Accuracy is increased with the order by kiosk, so there are fewer surprises in the bag or on the tray. The kiosks also can help overcome language issues, because several different language options are available on the kiosk.”

Bilal Chinoy, Senior Vice President of Products at EMN8, describes a strikingly counter-intuitive finding about personal interactions that was uncovered during development: “A minority of people likes human interaction. The majority doesn’t think automation is a cold way of doing business. For most people, particularly young people under 35, human interaction is not important.”

I suppose this is consistent with the way consumers of all ages have taken to self-service options at banks, gas stations, supermarkets, airports, train stations, and even select DMV locations. Offering a self-service alternative not only benefits businesses, customers tend to experience fewer errors, gain more control over the transaction, and save time by reducing delays associated with long lines at the counter.

Given these benefits, perhaps it’s okay if the only smile customers experience at a self-service kiosk is their own.

Do you agree?

Don’t give it away!

Sunday, February 12th, 2012

In my previous blog, Pouring profits, I posed the question: “How have you observed businesses capitalizing on (or forfeiting) opportunities to capture revenue and increase profit by offering customers enhanced service experiences?”

While the post received a fair number of clicks, there have been no responses to my question. Undeterred, I resolved to identify my own example and found one at my local Albertsons supermarket:

Albertsons offers two prices for fresh salmon in its seafood case: one price for unseasoned and another (higher) price for seasoned salmon. There is a valid reason for charging more for the seasoned fillets. Not only is it more convenient for the customer, it saves her from having to buy the ingredients required to season the fish.

Sure, offering seasoned salmon fillets for no additional charge would add value but it doesn’t make good business sense because there are labor and materials costs associated with seasoning the fish.

If I were advising Albertsons, I’d advocate charging more for the seasoned product and add value by offering a complimentary recipe for the “secret seasoning” at the store’s website. This way, if customers enjoy the seasoning but do not want to pay a premium for it at the seafood counter, they can purchase the ingredients to make their own seasoning—presumably, at Albertsons.

We know from the data that customers will pay more for enhanced service experiences: 13 percent more according to one survey.

Freebies are nice but you have a business to run. So don’t give it away when customers are prepared to pay.

Care to comment? It’s free!

Pouring profits

Tuesday, February 7th, 2012

Last month, a colleague and I had dinner at a Maine microbrewery. Being unfamiliar with its selection of microbrew beers, I ordered a beer flight from our server in order to sample the variety of ales available on tap.

For the uninitiated, a beer flight is a selection of beers (often arranged from lighter to darker) that offers samples of a variety of beers. Specifications vary but, generally, a beer flight consists of six 3 oz. pours and costs around $5.

To my surprise, our server had no idea what a beer flight was. I then turned to the bartender and inquired about a flight. He said that flights were not offered at the brewery because “We’re not set up for them.”

Instead, he offered to pour me as many samples at the bar as I wished until I found a beer that I liked. I tried three varieties before I found one that suited me—at which time I ordered a pint.

Great customer service, right? Well…not exactly.

Here’s why: Beer flights provide an opportunity to educate customers by including blurbs describing each beer’s unique composition, color, flavor, and perhaps suggested food pairings. This unique “insider” knowledge enhances the guest’s experience and may even, through suggestive selling, contribute to increased food sales.

While it’s true that a knowledgeable bartender can also provide this information while serving complimentary sample pours, it may be unrealistic to expect this level of attention from a busy bartender as drink orders mount… Many customers in this situation might feel as though they were imposing by detaining the bartender and would just settle for the last beer sampled.

While there are many different reactions that microbreweries would like to evoke from their patrons, being an imposition or choosing to settle aren’t on that list.

I’m all for freebies and value-added “little extras” like complimentary beer pours, but the reality is that businesses exist to make a profit. Most customers not only understand this, they are also willing to pay a premium for enhanced service experiences. According to a 2011 survey by American Express, 70 percent of American consumers said they are willing to spend 13 percent more for these experiences.

Not only would offering a beer flight serve customers better, it would also serve the business better.

You can’t charge extra for something that’s expected and ordinary—such as a bartender’s sample pour. (Can you imagine the bartender, after pouring a 3 oz. sample, saying, “That will be 83 cents”?)

But you can charge extra for something that’s unique and refreshing—like a beer flight accompanied by “insider” information about the featured beers.

While some patrons might choose to order a beer flight as their entire beverage order, more often than not, curious guests will order a beer flight and then make their pint selections based on their preferred samples. As a result, the establishment sells six 3 oz. pours for $5 and then sells multiple pints of the favored beers for another $5 each.

The option is to pour free 3 oz. beer samples until the customer finds one he likes. This approach really doesn’t serve the customer well—or the business.

Always look for opportunities to add value by providing unique “insider” knowledge or enhancing the customer’s experience in other ways. And remember, it’s okay to charge for these enhancements. You have a business to run and customers are more than willing to pay!

How have you observed businesses capitalizing on (or forfeiting) opportunities to capture revenue and increase profit by offering customers enhanced service experiences?

Contact Steve

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