Posts Tagged ‘delight’

You’re Not Right (And So Am I!)

Sunday, October 10th, 2010

Borrowing inspiration from Stephen Colbert, I’ve titled this post to point out the insufficiency of conclusions that have been drawn by me and others as they pertain to the art and science of customer service.

Customers are moving targets in terms of needs and preferences and their sophistication increases exponentially with advances in technology. Travel websites alone have armed consumers with pricing information previously unavailable to them. And blogs containing “insider information” to level the playing field have emboldened consumers looking to gain the upper hand during their next negotiation.

The best we can really do is to create a snapshot of what the customer is currently looking for and then race to develop solutions to meet or exceed that need.

For instance, most companies believe that consumers overwhelmingly prefer live phone service to self-service. And I’m sure at one time they did. However, according to a Harvard Business Review article (July/August 2010) titled Stop Trying to Delight Your Customers, recent data show that customers are, in fact, indifferent toward this choice.

The article was based on a large-scale study of more than 75,000 people who had interacted over the phone with call-center representatives or through self-service channels such as the web, voice prompts, chat, and e-mail.

It concluded that call-center reps should focus on reducing the effort customers must make to resolve their problems as opposed to “delighting” customers by exceeding their service expectations. (I would agree that if I was unable to access my e-mail account, my preference would be to have access quickly restored as opposed to receive a handwritten thank you note from the service rep in the days following my call.)

In addition to reducing the effort customers must make, the article suggested that call-center reps “should anticipate and head off the need for follow-up calls, address the emotional side of interactions, minimize the need for customers to switch service channels (e.g., move from web-based support to phone support or vice versa), listen to and learn from disgruntled customers, and focus on problem solving, not speed.”

So far, so good.

But then the article stated that, “exceeding (customers’) expectations during service interactions…can do little to increase loyalty.”

I disagree.

Zappos, for one, has built an intensely loyal customer base in part due to its strategy to exceed expectations by quietly upgrading delivery in order to pleasantly surprise customers with the unexpected early arrival of their purchases.

The article also contended that telling frontline reps to exceed expectations is “apt to yield confusion, wasted time and effort, and costly giveaways.” That may be true if a supervisor says to her staff, “Good morning. Today, I’d like you all to exceed customer expectations. Have a nice day.”

A competent supervisor, however, recognizes that a bit more explanation is needed.

For instance, she might say, “Today I’d like us to make a special effort to exceed customer expectations by expressing genuine interest in the caller.” Or propose, “Today I’d like us to make a special effort to exceed customer expectations by conveying authentic enthusiasm to the caller.”

She could then further clarify by asking her team questions such as, “How would you define expressing genuine interest/conveying authentic enthusiasm?” and “What are some ways that you currently express genuine interest in/convey authentic enthusiasm to callers?”

Through participation, her team could identify numerous ways team members currently express genuine interest in/convey authentic enthusiasm to callers. The supervisor could also share her own ideas based on her unique background.

And these customer service behaviors, when demonstrated, tend to leave a lasting positive impression on customers and inspire their loyalty.

When I used to travel frequently as a national trainer for Marriott International, I booked my travel through phone reps at American Express Travel as opposed to using web-based options in large part due to the reps’ tendency to demonstrate these types of customer service behaviors.

For instance, they would comment or ask questions pertaining to the amount of travel I was planning, the cities to which I was traveling, and the purpose of my trips. (And they weren’t being nosy or wasting my time with irrelevant blather.)

They were interested. They were engaged. They were exceeding my expectations of travel agents—and cementing my loyalty.

Contrary to the HBR article’s contention that exceeding expectations is “costly,” it costs nothing to exceed expectations by expressing genuine interest or conveying authentic enthusiasm. And it costs little to “delight” customers by providing pleasant surprises—as in the case of expedited shipping by Zappos.

Even Tony Hsieh, the CEO of Zappos, claims that whatever Zappos spends in expedited shipping charges, it saves in marketing expenses. That’s because Zappos has created a legion of loyal customers who tell friends, colleagues, family members—and anyone else who will listen—how great the buying experience is at Zappos.

So, while it may be true that customers value when they do not have to expend much effort to resolve an issue or make a purchase as revealed by the HBR article, there are other ways to create loyal customers.

And to suggest that delighting customers by exceeding their expectations isn’t one of them is just plain wrong.

Okay, I have acknowledged that customer service is a dynamic mix of art and science that continually evolves and that my conclusions (and others’) are likely insufficient. And I’ve provided an overview of the HBR article and pointed out aspects with which I agree and disagree.

Now it’s your turn to contribute to the discussion. How do you respond to the article’s conclusions? (And your perspective doesn’t have to be foolproof. Few are.)

The best is the enemy of the good

Monday, November 9th, 2009

VoltaireThe title of this post is a quote from the French philosopher, Voltaire. It expresses the notion that we must not accept that “good” performance is equivalent to “the best” performance—in fact, they’re enemies.

I’m convinced that most service providers are content to deliver “good” customer service. Their rationale may be based on the assumption that by meeting customers’ expectations, they will create satisfied customers.

Bain and Company, a consumer research firm, has a name for satisfied customers: passives. Passives, as the name implies, are satisfied but unenthusiastic customers who are easily wooed by the competition. These customers are disloyal, tending to make buying decisions based on convenience and price considerations—as opposed to brand loyalty.

Customers who are merely satisfied are generally the product of company cultures that reward efficiency, such as many fast food restaurant chains and big box retailers. These operations are process-focused, transactional, and pride themselves on product and service consistency from location to location.

Contrast the majority of service providers content to deliver “good” customer service with the rare exceptions that aspire to deliver “the best” customer service. Companies such as Disney, Zappos, Nordstrom, and Lexus come to mind.

Instead of attempting to meet customers’ expectations, these companies aspire to exceed expectations. Instead of producing merely satisfied customers, these companies create delighted customers!

Bain and Company has a name for delighted customers as well: promoters. Promoters 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.

Promoters are the product of company cultures that reward excellence. These companies are customer-focused, experiential, and pride themselves in delivering product and service excellence from location to location.

Too many businesses accept that “good” (or, more realistically, adequate) customer service is good enough.

Is your business always the most convenient and least expensive option for the customers you serve? Is it ever? Is your company content to produce passive customers or would you prefer a legion of promoters? Is your company’s goal to be good or to be the best?

There is a clear difference between the two that yields predictable results. Voltaire observed this difference 200 years ago and your customers can see it today.

What’s more memorable, T-Rex pancakes or a bowl of Cornflakes?

Monday, November 2nd, 2009

TRexpancakeSeveral years ago, after the birth of our first child, I began pouring pancake batter in unique shapes that our son would recognize from his world. When he was very young, I poured shapes ranging from puppies to pacifiers. As he grew older, I adapted the shapes to his interests—whether dinosaurs or chess pieces.

And holidays always provide fodder for themed shapes. I pour shamrocks in March, firecrackers in July, Jack-O-Lanterns in October, and candy canes in December. The kids love them and enjoy making requests for made-to-order shapes. Breakfast transforms from a predictable meal, a base to be touched each morning, to a festive event where the family lingers and memories are made.

I got to thinking about how this equates to customer service. According to research by Beyond Philosophy, a customer experience consulting firm, 44 percent of consumers described the majority of customer service experiences they have as “bland and uneventful.” These are the process-focused transactions that are marked by apathy, routine, and indifference. To me, that sounds like eating a bowl of Cornflakes. Even though you’ve eaten, and may even be satisfied, you’re not going to remember it.

Contrast that with pancakes in the shapes of dinosaurs—or whatever shapes are meaningful to you: your college mascot, a symbol of your favorite hobby—such as a tennis racquet or a chess piece, or even a pet. Would you describe this breakfast experience as “bland and uneventful?” Is a pancake in the shape of a rook forgettable if you’re a chess enthusiast? I think not!

Now, ask yourself, how does this concept apply to my business? How can I be intentional about transforming a product or service offering from one that may be perceived as process-focused, routine, and uneventful (i.e., a bowl of Cornflakes), into one that is seen as customer-focused, refreshing, and memorable (i.e., a pancake in the shape of a T-Rex)?

Here’s just one example: I know of a bank’s voice mail system which concludes a long menu of options by saying, “If you’d like to hear a duck quack, press 7.” Now, I’ve listened to my share of predictable voice mail directories but have never come across something as refreshing as this. I’d call back just to let my preschooler listen to the duck quack!

If this sounds like it’s going to require extra time and effort, you’re right. It’s definitely faster to prepare a bowl of Cornflakes and easier to pour round pancakes. But remember, they’re forgettable. Even so, you don’t have to sit down with a blank sheet of paper and invent this stuff. Look around for inspiration. It’s everywhere.

Talk with others about unique experiences they’ve had with companies that have made lasting impressions on them. Look for opportunities to surprise and delight your own customers through your company’s products and services.

Just like shaped pancakes, the possibilities are endless and the memories, priceless.

Turning customers into promoters

Monday, August 10th, 2009

Our clothes dryer stopped working late last week and the part I ordered from GE was not scheduled to arrive until Monday. Having four kids, a functional dryer over the weekend is a must!

So we washed our clothes and, afterward, brought them to a neighbor’s house to dry in her dryer. As my wife was leaving our neighbor’s house she said, “Just give me a call when the dryer stops and I’ll come back and pick them up.”

About an hour later my wife received a call from our neighbor and went over to retrieve the clothes. When she arrived, she found the clothes neatly folded and stacked inside the laundry basket. Wow!

We were delighted by the generosity and thoughtfulness of our neighbor. Our expectation had simply been to borrow her dryer and retrieve a basketful of clothes and yet we were pleasantly surprised as our expectations were exceeded. Our relationship grew stronger and a lasting memory was made.

Now, consider the implications of treating customers in this way. Most companies are in the business of creating promoters—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. Simply meeting expectations does not produce promoters. Promoters result from consistently exceeding expectations and, when possible, delighting customers!

A great example of a company that consistently exceeds customer expectations is Zappos.com. At Zappos, exceedind customer expectations is the cornerstone of its marketing, preferring to rely on positive referrals and repeat purchases from its legion of promoters rather than expensive ad campaigns. In fact, 75% of Zappos’ sales come from repeat customers. In an October 17, 2008 interview in Advertising Age, Zappos CEO, Tony Hsieh said, “We actually take a lot of the money that we would have normally spent on paid advertising and put it back into customer experience. We’ve always stuck with customer service, even when it was not a sexy thing to do.”

Each Zappos new hire—everyone from the chief financial officer to the children’s footwear buyer—is required to go through four weeks of customer-loyalty training. In addition, Zappos offers free delivery, free returns, and a 365-day return policy to demonstrate its commitment to exceptional customer service. It even quietly upgrades the experience by accelerating shipping from four-to-five-day to second-day or next-day, in order to pleasantly surprise customers.

Meeting expectations is predictable, process-focused, and transactional. Exceeding expectations is unexpected, people-focused, and experiential. My wife and I were delighted when our neighbor pleasantly surprised us by exceeding our expectations. Acts of service like this strengthen relationships and create lasting memories. They are what turn neighbors into friends.

By looking for opportunities to take an extra step and pleasantly surprise your customers, you can have a similar effect—turning customers into promoters.