Posts Tagged ‘customers’

Handle problems with care

Thursday, January 28th, 2010

ritz-carltonlogoLast December I worked with a hotel leadership team in Dayton, OH. One of the discussions lead to identifying the obstacles that stood in the way of creating promoters of its hotel.

Consumer research firm Bain and Company defines promoters as those customers who are the least price-sensitive, have the highest repurchase rates, and are responsible for between 80 and 90 percent of positive word-of-mouth.

One of the executives, Ryan, mentioned that the frequency of problems experienced by hotel guests was an obstacle. In examining this further, it became clear that a contributing factor was the condition of the hotel’s guest rooms due to needed renovations that had been postponed due to the economy.

And they’re not alone. I’ve spoken with numerous hoteliers who are in the same position. They must now get by with a product that, in a more robust economy, likely would have been renovated by now. Because the product is worn, it contributes to the increase in reported problems experienced by hotel guests.

So what’s a hotel to do? Here’s an idea that I received from Horst Schulze, Founding President and Former COO, The Ritz-Carlton Hotel Co., LLC. Mr. Schulze calls it the C.A.R.E. (Clean And Repair Everything) program:

Before the C.A.R.E. program, Ritz-Carlton hotels would take an entire floor of a hotel out of service once a year in order to deep-clean guest rooms. By doing so, its guest rooms would not deteriorate as quickly. At 75 percent occupancy, a typical Ritz-Carlton hotel room would last for five years.

Under the C.A.R.E. program, four rooms were taken out of service and deep cleaned every day. This meant the room was like new every three months. In a typical Ritz-Carlton hotel, a ten year-old room was newer and cleaner looking than a two year-old room in other hotels.

What effect did the C.A.R.E. program have on the frequency of problems experienced by its guests? The Ritz-Carlton Hotel Co., LLC is a two-time recipient of the Malcolm Baldrige National Quality Award. During the last year Ritz-Carlton received the award, there was only one reported defect per 10,000 room nights sold!

What has your experience been? What are you doing to anticipate and reduce the problems experienced by your own customers?

Compete FOR customers, not AGAINST them

Friday, January 1st, 2010

line in the sandHave you ever sensed an adversarial, “us vs. them” mentality from employees of service organizations?

Perhaps you were on the receiving end of what you would describe as rude or abusive behavior? Or perhaps it was more subtle—like dismissive body language or an exasperated sigh? Maybe it did not even involve you and was just something you overheard or observed?

Just last month I witnessed a supermarket employee chastise a customer in the store’s parking lot. When the customer failed to return his shopping cart to a designated cart collection area, the employee called out sarcastically, “Excuse me. That’s not where the cart goes!”

I get it. I know that supermarkets provide signage and make it relatively easy for customers to return their shopping carts to designated areas throughout the parking lot. And most customers cooperate and return the carts as requested. But a few customers do not for a variety of reasons: they have young children in the car, it’s raining, they’re in a hurry, etc.

Why is this employee competing with his customer regarding whose responsibility it is to properly secure the shopping cart? That’s an argument he will never win. After all, it’s his job to collect and return the shopping carts. That’s what he’s paid to do!

The customer’s only obligation is to pay for his groceries. And we can assume he’s done that. Instead of being admonished, he should be appreciated.

Last baseball season I was having lunch at one of the downtown sports bars in Lodo, across the street from Coors Field in Denver. As the game got underway, the restaurant quickly emptied as fans left for the ballpark.

About that time, three couples entered the bar and seated themselves at one of the many available tables towards the front of the bar. I noticed they were carrying burritos they likely bought from one of the many vendors selling food on the streets of Lodo prior to the Rockies game.

Within a few minutes the group was confronted by a server who said, “You can’t eat those in here.”

One of the guests, attempting to reason with the server, said, “We’re planning to order some beers and watch the game.”

The server reprimanded the group saying, “You’re not allowed to bring food into the restaurant—even if you order something to drink.”

From that point on, I was unable to make out what either party said because the comments were mostly under their breath. I can, however, attest that neither party appreciated the other and the group spent no money at the bar that day—and perhaps never will.

Now, I know that restaurants are in the business of selling food and that if every customer brought in his own food, then the restaurant would suffer. And most restaurants likely have formal policies against such “breaches of trade.”

Still, why the jousting? Is there another way the server could have handled this situation that would have resulted in a different outcome—one that might have benefited the guests, server, and establishment?

A few years ago, I was seated in the boarding area at Dulles International Airport awaiting my fate as a standby passenger on the last nonstop flight to Denver. About ten minutes after the last passenger boarded, my name was called and I was given a seat assignment and permitted to board the plane.

As I was the last passenger to board, all eyes were on me as I struggled to find space for my garment bag in the overhead bin. Just then, one of the flight attendants called down the aisle, “Ladies and gentlemen, we can only depart when this man is seated.”

She seemed to relish in using a perverse form of peer pressure to motivate me to quickly stow my bag and be seated. As I had yet to make any friends on the flight—and weary airline passengers can be quite ruthless—I settled into a most uncomfortable center seat for the ride home.

Again, I get the airline’s policy requiring all passengers to be seated with seat belts secured prior to departure but couldn’t this flight attendant have found a way to communicate this message without publicly admonishing her customer?

Always compete for customers, not against them. You’ve probably heard the saying: “You never win an argument with a customer.” It’s true. Even if you have signage to point to or a policy to reference, if you offend a customer then you lose—maybe a little or maybe a lot.

The next time that you draw a line in the sand between you and your customers, consider inviting them to cross the line. That way, you can be on the same side.

How about you? What is your experience or example?

Leaving lasting impressions

Thursday, October 29th, 2009

Kids and leavesOne drawback to living in a relatively new neighborhood is that the landscaping is not yet fully established. This means small trees with few leaves. I suppose if you can’t stand raking leaves, small trees would be a plus. For me, however, with four young children who love to play in a big pile of leaves, it’s a drawback.

One year, a friend of mine from a well-established neighborhood with plenty of mature trees allowed me to pick up his lawn and leaf bags, bursting with leaves, and transport them back to my own yard. Another year, I helped myself to leaves at a well-landscaped industrial park over the weekend when no one was around to question my activity. I even received a large box of leaves in the mail one year from my brother-in-law in Sioux Falls.

Why go to this extent? Because I love my children and want to do whatever I can to create memorable childhood experiences for them. Most of us have had a running start at a huge pile of leaves earlier in life. I want my children to be able to experience it too.

It’s the same with serving customers. If your goal is to create memorable experiences for your customers, then it may require similar creativity and improvising.

Here are a few examples:

  • I have a favorite pasta dish that doesn’t appear on the menus of most Italian restaurants. While these menus tend to offer broccoli and sautéed mushrooms as side dishes and Fettuccini Alfredo and Chicken Marsala as entrees, my favorite pasta dish is Fettuccini Alfredo topped with pieces of chicken, broccoli, and mushrooms. The best restaurants, having ready access to the ingredients, will improvise and create for me a customized entrée and a memorable dining experience.
  • For my 40th birthday, I spent the weekend at Caesars Palace in Las Vegas with family and friends. My father-in-law ordered Coca-Cola from our poolside server, Betty. Though only Pepsi products were readily available, Betty improvised and located a “secret stash” in order to fulfill the request. Did she make an impression? That was more than three years ago and I still remember her name!
  • Once, at my local Safeway, I was looking for a package of prepared seasoning for meatballs. An employee named Kristi encountered me looking puzzled in the spice aisle and asked if she could assist me. I explained what I was looking for and together we searched the shelves for the product—to no avail. Instead of saying, “Sorry, it doesn’t look like we carry that,” Kristi took the time to share the ingredients and quantities used in her own family recipe. Her willingness to improvise not only created a memorable shopping experience for me, it caused me to spend money on ingredients as opposed to leaving the store empty-handed.

Is your goal to create memorable experiences for your customers? If so, then even though you may not have a specific menu item, a readily available can of Coke, or a package of prepared meatball seasoning, you have your imagination and the ability to improvise.

And that may be all you need to create memorable experiences for your customers. Well, that and a pile of leaves.

Extra! Extra! Read all about it!

Sunday, October 4th, 2009

Seafood TimesI recently bought some fresh fish at Whole Foods Market. As is customary, I waited my turn as customers who arrived before me had their orders fulfilled. When it was my turn, an employee behind the counter smiled, made eye contact, and with enthusiasm in his voice asked, “Did you see something you liked?”

As much as I appreciate quality products and friendly service, so far it had been a pretty predictable shopping experience. Whole Foods isn’t cheap and has a reputation for better than average product and service quality intended to justify the higher prices. When I shop there, I expect for the store to be extra clean, for the products to be extra fresh, and for the staff to be extra knowledgeable and helpful.

On this day, I watched as the employee gathered up the salmon fillets I had selected. He handled the fish with care, applying olive oil and seasoning as requested to each side of the fillets. As good as the service was, so far there was nothing out of the ordinary.

Having oiled and seasoned the fillets, the employee then wrapped them in butcher paper. He then handed them to me over the counter with a broad smile and said, “Here you are. Is there anything else I can get for you?”

I said that I was all set and thanked him for his help. Still, as great as the product and service quality had been, there had been nothing that made an impression—that had stuck out as being particularly memorable. What happened next changed all that.

As I looked at the wrapped fish, I noticed it had been wrapped in a customized butcher paper—made to look like newsprint—bearing the name: Seafood Times. Beneath the masthead were a variety of informative and entertaining stories such as Whole Foods Market Pleads Guilty to Seafood Discrimination and Make Your Kitchen a Safe Harbor.

Instead of bland and uneventful brown butcher paper, I had received something extra: a unique and refreshing version that had been customized by Whole Foods to extend my experience from the store to my home. All of a sudden, what had been a predicable transaction at the seafood counter transformed into a memorable service experience. I now had a powerful memory of my visit and a story to share with others.

When so many retail transactions are characterized by indifference, experiences like this one are a breath of fresh air. Companies that go the extra mile to surprise and delight customers will not only make headlines, they will make lasting impressions their customers will remember when it’s time to buy.

Unique knowledge sells stuff

Wednesday, September 30th, 2009

Safara MugThe other day I was waiting in line at Starbucks and noticed a display of coffee mugs that were selling for $8.95. My first thought was that another coffee cup was the last thing I needed. And, if I were going to buy one, I likely wouldn’t pay full price. I’d look around for a mug with a bright red price sticker on it because, after all, a mug’s a mug. Right?

Maybe not. Alongside the mugs, I noticed a conspicuous display card containing a bit of background information on the mug. It read:

SAFARA MUG

Made by potters in Toki City, Japan, using techniques passed from generation to generation for more than 400 years.

$8.95

No longer was this “just another coffee mug.” It was a unique piece of pottery that had been crafted by artisans with specialized knowledge that had been passed down from one generation to the next. And no longer was a selling price of $8.95 too high. It appeared reasonable, given the origin and craftsmanship of the mug.

Now, I have no illusions that this mug will appreciate in value and one day become a collector’s item worthy of a display case in the Smithsonian. That’s not the point. The point is that this commodity, a coffee mug, had been transformed into a piece of art by simply adding 19 words of unique knowledge.

Unique knowledge is interesting, unexpected, and adds value to the customer experience. It’s not ordinary or predictable. It’s sexy in the sense that it attracts attention. You notice it. It’s unique and memorable.

Consider your own products and services. How can you add value by including unique knowledge—a story that will captivate your customers, reposition your offerings as anything but commodities, and justify your price premiums?

Add value, not fees

Tuesday, September 29th, 2009

crowded airportAccording to this article, all major U.S. carriers, aside from Continental and Southwest, have added a $10 surcharge to most of their fares for travel on three busy days around the Thanksgiving and New Year’s holidays: Nov. 29, the Sunday after Thanksgiving, as well as Jan. 2 and 3.

Rick Seaney, CEO of FareCompare.com, said the airlines likely added the charge because it was a quick, targeted way to charge more on peak travel days. The Sunday after Thanksgiving is one of the busiest travel days of the year, while the two dates in January are popular with holiday travelers as well.

So the airlines are charging passengers a $10 surcharge for the privilege of enduring congested airport traffic, fewer parking options, longer lines at the terminal and security, packed gates and airplanes, and the inevitable delayed flights and mishandled bags that result from seasonal volume.

Revenue-focused companies are really good at identifying and creatively labeling fees and surcharges and the asterisk keys on the keyboards of their legal departments are commonly worn from excessive use. If these companies would channel the same energy and ingenuity into customer satisfaction that they use to identify and apply extra fees and surcharges, they would more than recover the revenues gained from this irritating practice.

Customer-focused companies deal with seasonal spikes in business by adding value, not fees. When Disney is extra busy over the holidays or during spring break, it doesn’t charge its guests fees or surcharges to offset its increased costs. Instead Disney adds value by offering packages that bundle airfare, lodging, and theme park admissions. Disney also adds staff to minimize delays and provides additional entertainment by its characters to amuse children as they wait in line to enjoy another ride. That’s how a customer-focused company deals with volume—not by charging extra for it.

Anytime making money becomes more important than properly serving customers, the business ultimately suffers. When the bottom line drives a company, it will resort to added fees and surcharges while cutting back on service and quality in order to improve its near-term operating statement at the expense of long-term customer goodwill and loyalty.

There should be a litmus test for any such charge. If a board of directors would vote for it unanimously while a group of customers would oppose it unanimously, get rid of it. Instead, make your money the old fashioned way: Earn it by providing value to customers by delivering exceptional product and service quality that justifies the price you’re charging.

Function vs. Essence

Sunday, July 26th, 2009

Several years ago, I was out to dinner in Orlando with a colleague. At the time, she was the director of training at a large resort and convention hotel located near Disney World.

Her hotel competed for group business head to head with Disney’s own hotels. If you have experienced Disney, then you know how difficult it is for another hotel to win business when competing with them—especially if the deciding factor is the anticipated quality of service that group members will receive as hotel guests.

When I asked Theresa about her approach to customer service training, given her formidable competition on the other side of Interstate 4, she said that a key ingredient was to involve hotel employees in clarifying the difference between their job functions and the essence of their jobs.

Consider the definition of each term:

func⋅tion [fuhngk-shuhn]: –noun The action for which a person or thing is particularly fitted or employed.

es⋅sence [es-uhns]: –noun The most important ingredient; the crucial element.

Depending on the employee’s job role, the functions performed will differ. For instance, the functions of a bellman (e.g., deliver luggage to and from guest rooms, provide information about the hotel outlets and services, etc.) will differ from the functions of a maintenance employee (e.g., perform preventative maintenance, execute repairs, etc.).

Theresa explained that, while employees’ job functions will differ, the essence of their roles was the same: To exceed the expectations of their hotel guests by consistently delivering product and service quality that will result in delighted customers.

Bain and Company, a consumer research firm, equates delighted customers with a category of customers called promoters. Promoters are those customers who are the least price-sensitive, have the highest repurchase rates, and are responsible for between 80 and 90 percent of positive referrals to a company or brand.

Now, Theresa had defined the essence of her employees’ job roles based on their highest priority: exceptional product and service quality. Other organizations may define the essence of their employees’ job roles differently. For instance, my neighbor is the executive director of a halfway house that provides housing for men who are in transition from incarceration to freedom. He told me that the essence of his employees’ job roles is to convey respect towards the clients, his term for the men who occupy the facility.

The challenge for employers is that, oftentimes, employees think that the functions and essence of their job roles are the same. When this happens, employees become transactional and process-focused, treating each customer like the last customer. A factory mentality ensues. In the short-term it may be highly efficient (employees do more things faster) but in the long-term it is ineffective (does not fulfill the organization’s highest priority).

Consider your own organization. Do the employees really know the difference between their job functions and the essence of their jobs? If you’re not sure, just ask. My hunch is that you will be met with blank stares…

This becomes an opportunity for you to have a meaningful conversation with your employees about the difference between the tasks they are responsible for executing and your organization’s highest priority.

Missed opportunities

Monday, June 29th, 2009

Last week, my family and I traveled to Lincoln, Nebraska to attend a family reunion. While in Lincoln, we stayed at a full service hotel downtown. When we arrived at the hotel, we unloaded several bags from our vehicle onto the sidewalk in front of the hotel. Minutes later, a bellman passed by without saying a word and entered the main lobby from the sidewalk.

My wife and I fully expected that he was getting a luggage cart to assist us with our bags. When he did not return, I went inside the hotel and encountered him standing just inside the lobby. He looked at me and asked, “Can I help you with your bags?” Already, I was annoyed because he clearly saw my bags on the sidewalk yet I still had to track him down for assistance.

Now that we were being helped, we no longer felt ignored but did feel as if this bellman was treating us indifferently—as if we were just another “check-in” or transaction. It’s not that he did anything wrong during the remainder of the check-in process, it’s just that he missed several opportunities to anticipate our needs and make a lasting positive impression.

For instance, one of my boys complained about the weight of his backpack. The bellman just stood there as I relieved my son of his backpack and hung it on the luggage cart. A minute later, while I went back to the car to retrieve a cooler, my wife corralled our four children in front of the elevators to take a group picture of them. She commented to me afterwards that she wished she had asked him to take a picture that would have included her—another missed opportunity for him to make a positive impression.

Later, when we were in the guest room, the bellman simply offloaded the luggage near the door, accepted his tip, and bid us adieux with the transactional industry farewell, “Enjoy your stay.”

He failed to observe other cues that would have made the difference between an ordinary check-in and a memorable service experience. Although a cooler, Pack ‘n Play® travel crib, and wine tote were all visible cues, he appeared aloof from any customer service opportunities these items may have presented. In the first ten minutes after his departure I had already retrieved ice for the cooler (which required accessing the 4th floor as there was no ice machine on the 3rd floor where our rooms were located), phoned housekeeping for a sheet to line our toddler’s travel crib, and gone in search of wine glasses.

With so many missed opportunities, the potential for a unique and memorable customer-focused experience faded and we were left with an ordinary and forgettable process-focused transaction. As happens far too often, many service providers are lulled into the monotony of processing “each customer like the last customer” and, in so doing, treating the customer like just another transaction (in my case, just another “check-in”).

Service providers must recognize that each customer presents a unique opportunity to make a favorable impression. By committing to energize their customer service delivery by looking for visual cues, anticipating customers’ needs, and offering the unexpected, service providers will capitalize on opportunities to provide unique and memorable service experiences.

Mmm…customers or butter cups?

Monday, November 3rd, 2008

Too often operators recognize employees for the job they do with processes rather than customers.  I recall hearing a perfect example of this from a consultant named Rick Tate:

When a restaurant hostess is hired to greet guests and make them feel welcome as they arrive, she also recognizes there are several other processes that she is responsible for (e.g., completing side-work such as filling salt and pepper shakers, folding napkins, filling the butter cups, etc.).

From day one, the hostess is told how her number one priority is the guest.  So she focuses on greeting guests as they arrive to make them feel welcome and then, as they depart, thanking them for their business and inviting them to return.  When the manager then emerges from his office and sees that she is behind on her side-work, what do you suppose happens?  Right.  He doesn’t recognize the job she’s done making customers feel welcome and appreciated.  Heck, he may not have even observed those interactions.  Instead he points out what he can see—that the butter cups need to be filled!

Over time the hostess learns that if she’s going to win with this manager, she had better make sure the butter cups are filled!  So now, instead of being a welcoming, guest-focused first impression at the hostess stand, she is primarily focused on completing her side-work.  In this scenario, the customer becomes an interruption in her job as opposed to the reason for it!

Now, guest interactions with this hostess are rushed, stressed, and decidedly uninviting.  We’ve all experienced it.  In these situations it’s easy to blame the hostess for being preoccupied, indifferent, or even rude.  But then I wonder how often the enthusiasm and personality for which most guest contact employees are hired has been unwittingly stifled by the process-focused environments in which they work?

How about you?  What are your company’s “butter cups” and how might they be contradicting your organizations true priorities?