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?

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?

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?

The other night as my children gathered at the kitchen table for Brownies a la Mode, my daughter, Kennedy, became upset at her older brother for teasing her about something and began to cry.

My wife tried to console her but she continued to cry.

I then said to Kennedy, “Ice cream makes you thirsty. Would you like a glass of milk or water with your dessert?”

Through her tears, she muttered, “Water.”

Next, I asked her, “Kennedy, since you have a brownie and a scoop of ice cream, would you like a spoon or a fork?”

She thought for a moment, caught her breath, and replied, “A spoon.”

Then I asked her, “Do you want a big spoon or a little spoon?”

By now she had collected herself, wiped away the last of her tears, and answered, “A big spoon please.”

It occurred to me that the tactic I’d used with Kennedy was the same one I’d been trained to perform when confronted by an angry guest when I worked in the hotel industry:

Neutralize the guest’s emotion by invoking logic, details, and facts.

You may recall that “right brain” functions include feelings and emotions, while “left brain” functions include logic, details, and facts. What you may be unaware of is that our conscious mind can only focus on information from one side of the brain at a time.

This creates the opportunity for us to neutralize others’ emotions (right brain) by asking questions that require logical, fact-based answers (left brain).

For example, if a hotel guest was upset about a charge that appeared on his account, I would ask him fact-based questions pertaining to the charge such as: his room number; the date of charge; the amount of charge; a description of charge; etc.

It is amazing how consistently customers will soften before your eyes as you, with a genuine intent to resolve their concerns, pose a series of questions that require them to focus on information from the “left brain.”

On many occasions, by the time I posed the last question, guests would apologize for their initial behavior saying something like, “Listen, I know it’s not your fault. I’m sorry I took it out on you. Thanks for letting me vent.”

So the next time you’re faced with an inconsolable child or an angry customer (or an angry customer who’s behaving like an inconsolable child), don’t panic.

Just remember that our conscious mind can only focus on information from one side of the brain at a time—and when we’re yelling and screaming, it’s the right side. Be intentional about offsetting an emotional response (right brain) by engaging logical reasoning (left brain).

The best way to accomplish this is to question their anger—that is, pose questions that will elicit facts, restore calm, and, ultimately, make everything “all better.”

This post is the ninth in a series that will identify 10 different obstacles that have emerged from my analysis of customer satisfaction data. Maybe you will have encountered one or more of these obstacles in your own business? The ninth obstacle is deception.

Deception encompasses everything from the fine print used to mask hidden fees and other undesirable terms and conditions, to bait-and-switch marketing tactics that entice consumers with an attractive offer before substituting a costlier product or service.

Just last night, I stopped by my local King Soopers supermarket to pick up some essentials. Over the store intercom, I heard a woman’s voice:

“Attention shoppers: We will be giving away free merchandise at the red and black counter near Customer Service at the front of the store. This is the last announcement you will here. If you want free merchandise, please go right now to the red and black counter near Customer Service at the front of the store!”

Free merchandise? It sounded too good to be true. I’d been shopping at this particular King Soopers for more than 10 years and, with the exception of an occasional in-store taste sampling, had never heard of a promotion like this before. Intrigued, I made my way to the front of the store.

By the time I arrived, a small crowd had gathered in front of the red and black counter to receive free merchandise as instructed by the announcement.

Just then, a woman emerged from behind the counter and asked the crowd to squeeze in close so more people could fit around her booth. The woman was very animated. She held up an apple, asking the crowd to shout “Apple!” as she positioned the fruit to be sliced, diced, and pureed with her amazing food processor—for only $29.95!

A minute into her spiel it was evident that, in order to receive a free set of steak knives, you had to subject yourself to a protracted product demonstration replete with awkward humor and contrived attempts to involve the audience.

About this time, customers began to reconsider the sensational offer and resumed their shopping. I didn’t take a poll but I bet many of those customers felt duped by the original intercom announcement promising free merchandise.

In King Soopers’ defense, although it sells groceries, it is largely a marketing company that competes for the attention (and spending) of consumers in a noisy and competitive marketplace. Sometimes, it may seem necessary to make an outrageous claim simply to command the fleeting attention of prospective customers. And if some consumers feel duped, well, that’s just business…

But then there are companies like L.L.Bean. Although L.L.Bean is a retail company specializing in clothing and outdoor recreation equipment, it too is largely a marketing company with a significant mail-order, online, and retail presence around the world.

For those who are unfamiliar with L.L.Bean, it ranks among the top retailers in the world in customer satisfaction. And it’s the type of company that one would never associate with deceptive marketing practices. Instead, L.L.Bean relies on the honesty of its people and the integrity of its products.

If a representative says a product will arrive within two days, then you can take that delivery date to the bank. If the catalogue claims that all products are guaranteed to give 100% satisfaction in every way, you can count on it. There’s no need to look for a disclaimer or fine print that shields L.L.Bean from responsibility.

Unless you’re a magician, deception is bad for business. Commit to honesty, openness, and candor in all your customer dealings.

Gimmicks are fine—just not at the expense of customers’ trust. Besides, your customers probably have all the steak knives they really need.

I welcome all questions, comments, bouquets and brickbats.

Have you ever been treated to a fine dining experience where the host hands you the wine list saying, “Why don’t you select the wine. Remember, it’s my treat.”

As you scan the wine list, a bottle of Far Niente Cabernet Sauvignon catches your eye but at $200 a bottle, you continue to scan down the list until you find a wine that’s priced more modestly. After all, you don’t want to appear to be taking advantage of your host’s generosity.

When the wine arrives, your host and other dinner guests will no doubt compliment your selection but you’ll be thinking of that Far Niente as you prepare to taste your second (or seventh…) choice.

Last week, I received a holiday catalogue from Tiffany & Co. The catalogue, as you might expect, contained many images of fashionable models wearing attractive Tiffany & Co. jewelry and accessories.

But what you might not expect is that the catalogue contained no prices. Instead, Tiffany & Co. included a separate, detached price list enabling ladies to peruse the catalogue and select their preferred merchandise—without censoring their favorite pieces due to price.

This also allows buyers to conceal the prices paid for gifts—providing discretion while ensuring their sweetheart doesn’t have to settle for her second (or seventh…) choice. Brilliant.

In his book, Customer Centricity: What It Is, What It Isn’t, and Why It Matters, Peter Fader, Professor of Marketing at the Wharton School of the University of Pennsylvania, defines customer centricity as “a strategy to fundamentally align a company’s products and services with the wants and needs of its most valuable customers.”

While reading the book, I was reminded of the Aristotle quote: “There is nothing so unequal as the equal treatment of unequals.”

This is a slippery slope in customer service because, when taken to extremes, it appears to be prejudicial service, where one customer is prematurely judged as less valuable or important than another customer. (Think about the scene in Pretty Woman when Vivian, played by Julia Roberts, was snubbed by saleswomen based on her immodest appearance while shopping at an upscale boutique along Rodeo Drive.) And, of course, this is wrong.

That said, there are many who will say that all customers should be treated equally. I’d like to make a distinction here between the terms equally and equity:

• Equally means having the same value as another.
• Equity means the state, quality, or ideal of being just, impartial, and fair.

Equally means 50:50. Equity might mean 60:40 or some other unequal ratio—based on what each party needs and deserves.

I have four children. The three oldest receive allowance but their allowance is not equal. The financial needs of my 5^th Grader differ from those of his 1^st Grade sister and their individual allowances reflect that difference. Their allowance is not equal but it is equitable.

In the same way, customers who have flown 100,000 miles with an airline and achieved elite status in its frequent flyer program deserve to board the airplane ahead of those passengers who fly less often. And retail customers with a history of significant spending deserve to be notified of sales before the general public in order to preview the best selection of sale merchandise. These perks may not be spread equally among the customer base but they are distributed equitably.

I agree with Fader’s assertion that “the customer” (a generic term used to represent every customer in a company’s customer base) does not exist because every customer is different. According to Fader, “You must not only accept but celebrate the idea of customer heterogeneity (or uniqueness). By putting forth the effort to better understand the habits, tendencies, and value of each and every one of your customers, you can build better, stronger, and more profitable companies.”

So gather as much intelligence as you can about your company’s very best customers and then look for opportunities to recognize and delight them.

Doing so will reinforce their personal importance (not their importance as people—that’s equality—but their importance as customers) while recognizing the value they bring to the business through personal spending, loyalty and referrals.

I welcome all questions, comments, bouquets and brickbats.