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.

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?

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!

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?

A restaurateur recently approached me and asked, “How can I fake that I know a customer’s name? I have a thousand regulars in my restaurant each week and can’t possibly remember all of their names.”

She was asking the wrong question. Any objective that involves faking out customers (or any form of deception) is destined to fail. Why not make a sincere effort to learn customers’ names instead?

I recognize that remembering names is not always easy. I’ll be the first to admit that I often forget a name just seconds after hearing it—especially if I’m being introduced to a group of people. Recalling names takes real effort and, for many of us, if we’re not intentional about it, we’ll miss opportunities to greet others by name.

We already know that people love hearing the sound of their own name. And when they are greeted by name, especially in a setting where they are customers, this affirms their importance as customers—and the value they bring to the business through personal spending, referrals, and loyalty.

My response to the restaurateur was this: “Rather than mislead customers by faking that you know their names, why not make the effort instead to learn them?”

I then shared with her some advice I had given to my 10-year-old son, Cole, while he was attending a tennis camp with a dozen or so peers after school. On the drive home from camp one evening, I asked Cole the name of the boy he’d been hitting with during the final drill. To my surprise, he had no idea what the boy’s name was.

When I reminded Cole that learning and using others’ names conveys respect and affirms their personal importance, he complained that there were a lot of kids and that learning all their names would be difficult.

So, together, we devised some strategies that he could use to help remember the names of all the other players at camp. We started with the names of players he already knew. There were two: Paris and Rachel. (Mmm…)

I asked him to describe Paris and he said she was tall. Then I asked him what came to mind when he thought of the name “Paris.” He said, “Paris, France.”

Next, I asked him if there was anything tall in Paris, France. He said, “The Eiffel Tower.”

Then Cole said, “I get it! To help remember her name, I will think of the Eiffel Tower in Paris, France.”

Exactly! (I mentioned that this is an example of a mnemonic—or memory aid—but Cole was already thinking of a way to help remember Rachel’s name…)

Cole said, “When I see Rachel again, I’ll remember that her name is the same as my cousin Rachel in Sioux Falls!”

“That’s great Cole!” I said, “You’re using an association you’re very familiar with to help remember the name of someone you’ve recently met.”

The last suggestion I gave to Cole was to repeat the name of the person he was meeting several times during the initial introduction. For example: “Rachel? I have a cousin named Rachel. My name is Cole. Nice to meet you Rachel!”

There is no easy way to remember the names of all your customers. It takes genuine effort. But it is possible to facilitate learning names by using mnemonics (e.g., Paris is tall like the Eiffel Tower in Paris, France.), associations (e.g., Rachel has the same name as my cousin Rachel.), and repetition (i.e., Try to use the name three times during your initial introduction.).

Invest the time and effort to learn customers’ names and if you draw a blank, don’t try to fake it—be honest. Chances are that your customer may not readily recall your name either. This re-introduction will give you both a chance to reinforce each other’s names while strengthening the relationship.

How about you? What techniques help you to remember names?

It is widely acknowledged that the number one reason customers quit doing business with a company is due to perceived indifference towards them as customers.

When I ask audiences to describe what it feels like to be treated indifferently, I receive responses such as, “I feel unimportant” and “I feel as if I don’t matter.”

Customers are important and customers do matter.

If indifferent treatment is the number one problem, then it reasons that it’s also the number one opportunity.

Years ago, I read The Pursuit of Wow!, an influential book by Tom Peters. In it, he makes the following comparison between bookstore salespersons, Joe Doaks and Jane Blivens:

A customer comes to Joe’s register to check out. “Hey, I saw the book Ike and Monty: Generals at War on your shelf,” he says. “I’m reading it. It’s really great.” Joe looks at him glassily, keeps working the register, and mutters, “Uh huh” in a total and final acknowledgment.

Jane Blivens is at the register. Same customer. Same line, Ike and Monty, etc. Jane responds, “That’s great. What did you like about it?” The customer gives a 45-second description, completes the transaction, and leaves.

What has Jane done? She’s lit up the customer by paying attention.

Peters concludes: “This story is aimed at retailers (hire the Jane clones, fire the Joe look-alikes; encourage clerks to be chatty, not officious, distracted automatons). And aimed at could-be Joes and could-be Janes: Regardless of the company rules and regulations, you have enormous power, on your own, to grow—or shrivel.”

Frontline employees have a choice: Treat customers indifferently or, as Peters suggests, light them up by paying attention to them.

Opportunity is knocking during every interaction you have with customers. Don’t shrivel in their presence! Make the choice to treat customers differently—as important partners in your business who matter a great deal—and marvel as you and your business grow!

Besides paying attention to them, what are some other ways to treat customers differently?

When I received my first management position with Marriott in 1992, I worked for a general manager named Mark Conklin. Although Mark (as he preferred to be called) oversaw more than two hundred employees, each employee received a hand-written card from him in the mail to honor the anniversary of their birth.

And he didn’t merely scrawl his signature beneath a pre-printed generic “Happy Birthday!” message. He took the time to write a full paragraph that highlighted a recent contribution the employee had made to the hotel, thanked them for their commitment to excellence, and wished them a Happy Birthday!

It would have been easier for Mark to distribute the cards through interoffice mail so that employees received their cards at work but he chose to mail the cards to employees’ homes. He reasoned that the cards would be opened in front of family members and that employees could take pride in sharing the positive comments about their valuable contributions at work.

Although this was 20 years ago, I still have the handwritten notes I received from Mark on my birthday. I keep them with the memorabilia I collected during my 20 years with the company. That’s how much they meant to me.

On December 13, 2011, J.W. Marriott, Jr. announced that he was stepping down as chief executive officer of Marriott International. Arne Sorenson, chief operating officer, has long been viewed as Mr. Marriott’s successor and will assume the CEO role in March. He will be only the third CEO in the company’s 85-year history and the first from outside the Marriott family.

The stability of having Mr. Marriott in the CEO role for nearly 40 years has provided Wall Street analysts with a level of confidence—even during some tumultuous economic cycles. His presence has also assured the company’s quarter million employees that they would be treated fairly and with respect. Customers even took comfort in knowing that there was a real “Mr. Marriott” standing behind the Marriott brand.

All this will change in March when Mr. Sorenson assumes the CEO role. There will likely be a bit more scrutiny by Wall Street. Employees may become more skeptical of corporate initiatives, and customers may begin to question the company’s longstanding commitment to maintaining the high standards of product and service quality championed by the founder’s son.

Last month, when the announcement was made, I was in the process of sending holiday cards and decided to send Mr. Sorenson a card with a brief note congratulating him on his promotion. Let me be clear: I don’t know Arne Sorenson personally. In fact, I’ve never even met him. My only connection to him is that I used to work for Marriott. And I certainly never expected to hear back from him.

To my surprise, the soon-to-be CEO of a $25 billion company took the time to send me the handwritten note below thanking me for my card:

After reading Mr. Sorenson’s note, I was reminded of the birthday cards I received from Mark Conklin 20 years ago—and was reassured that Marriott is in very good hands.

What are some other actions performed by leaders that have made a lasting positive impression on you?

I recently received a review copy of The Energy Bus by Jon Gordon. It was a quick read consisting of 34 short chapters—some of which were only two pages long.

The book relates a fictional story about George, a mid-level manager whose work and family life was in disarray before meeting a wise bus driver named Joy who, with the help of a busload of loyal passengers on Bus #11, shares 10 Rules For The Ride of Your Life.

There are many business books out there that read like textbooks—filled with jargon, research, references, charts and graphs. These are the books that are often started but seldom finished. Gordon’s book is different.  He uses plain language and characters that are regular folks to impart simple lessons that other authors take 300 pages to explain.

And unlike some books that have used a similar storytelling format, Gordon’s book addresses some difficult real-life work situations head-on. For instance, how to deal with employees who are negative, insubordinate, or choose not to support the organization’s standards or mission.

The final chapter provides a recap of the 10 Rules followed by a summarized action plan and web-based resources at www.theenergybus.com to further reinforce the lessons.

The Energy Bus also supports several points about exceptional customer service that I often make during my own presentations:

• It’s an employee’s highest priority.
• It’s voluntary and requires a deliberate choice by the service provider.
• Conveying authentic enthusiasm enhances the customer’s experience.
• Customers do not remember their interactions with us. Rather they recall moments during those interactions.

Whether you are looking to improve your performance in the area of leadership, communication, accountability, personal energy, or customer service, this book can help. Get on the bus! Check out Gordon’s book and refuel your life, work, and team with positive energy!

The New Year is upon us. Bus #11 is pulling up now. Are you ready to board?

The Greek philosopher, Plato, said, “Be kind, for everyone you meet is fighting a hard battle.”

It’s true. No one is excluded from life’s challenges—whether these setbacks involve health, relationships, money, or some other dimension of our lives.

There’s a tendency to see our own situation as unique—as if no one else is dealing with the same stuff we’re dealing with. And that’s partly true. Each of our situations is singular in terms of the particular struggles we face day-to-day.

So, while our situations may differ in that your battle looks different than my battle, the fact remains that we’re both fighting hard battles…

I’ve found that from a customer service perspective, whether serving a coworker or paying customer, when I remember that everyone I meet (regardless of appearances) is fighting his or her own unique battle, I’m reminded to:

• Smile
• Make eye contact
• Listen
• Be patient
• Be tolerant
• Be understanding
• Be forgiving
• Be respectful

And I’m also reminded, as Plato advised, to be kind.

This post is the tenth in a series that has identified 10 different obstacles that have emerged from my analysis of customer satisfaction data. Perhaps you have encountered one or more of these obstacles in your own business? The tenth obstacle is missed opportunities.

Two years ago, I wrote a blog post titled Missed opportunities. I considered repurposing the content for this post but decided against it. While thinking about the topic, it occurred to me that missed opportunities include failure to provide both expected service (such as those examples found in the above post) as well as unexpected service.

Capitalizing on opportunities to provide unexpected service may actually leave a greater lasting positive impression than providing service the customer already expects.

Last month, my wife and I joined another couple for dinner at Mizuna in Denver. While taking our drink orders, the waiter, Jimmy, noticed my wife’s struggle to recall her preferred martini order. So he patiently walked her through her options: Gin or vodka? Dirty or not? Up or on the rocks? Olives or a lemon twist? Shaken or stirred?

Once her ideal martini order was sorted out, he took the remaining drink orders and left to retrieve the cocktails. When he returned to our table a few minutes later, he provided my wife with a simple “cheat sheet” that captured all of her preferences to simplify future martini orders. Brilliant!

What impressed me the most about Jimmy’s gesture was that it was completely unexpected. While I expected him to return to the table within a reasonable amount of time with accurate drink orders, I did not expect him to record a “cheat sheet” listing my wife’s preferred martini order.

Another thing that struck me was that Jimmy’s actions were voluntary. While accepting drink orders and delivering them to restaurant guests is a mandatory aspect of a waiter’s job role, taking a minute to create a customized “cheat sheet” for a guest is voluntary.

Lastly, while Jimmy gets paid to take and serve drink orders, his decision to jot down Julie’s martini order cost his employer nothing. And although this gesture was free, it made more of an impression than anything he was paid to do that night.

How about you? What could you do today (that would be unexpected, voluntary, and free) to capitalize on the many opportunities you have to create lasting positive impressions for your customers?