Posts Tagged ‘loyalty’

Why the nonessential is vital

Tuesday, February 23rd, 2010

AllstateRecently, I had an epiphany. It occurred to me that the most important aspects of my job (and likely yours) are nonessential.

Think about it. Most jobs consist of a set of essential job tasks that define a job role. These tasks might be described as mandatory job functions—the bullet points that make up a job description.

To the extent that employees define their job roles according to these mandatory functions, they will often describe their work as routine and monotonous. These employees presumably will view the essence of their jobs (their highest priority) as the successful execution of their assigned job tasks.

Sounds pretty boring, huh?

That’s because all of the fun usually resides within the dimensions of our work that may not appear in our job descriptions. I’m referring to those aspects of our jobs that are creative, interesting, and unexpected.

Customers describe these actions as “beyond the call of duty” or “going the extra mile.” In most cases, these tasks or behaviors are optional and support the true essence of our jobs (creating delighted customers).

Since these tasks and behaviors are optional, they’re seen as nonessential, unimportant, and elective. Because of this, as customers we don’t always experience them. But when we do, it makes an impression and reinforces our loyalty.

Here’s a recent example:

Many consumers see insurance as a commodity and regularly compare rates to determine whether or not they can find a lower premium. After all, as long as the essential elements of an insurance policy are present (sufficient coverage, reasonable deductible, affordable premium, etc.), insurance is insurance, right?

Maybe not.

For instance my Allstate agent, Kevin Johnson, recently emailed me a link to enroll in an electronic billing discount program offered by Allstate that he and I had previously discussed. I happened to be traveling when his email arrived and never got around to enrolling.

As my renewal deadline approached, Kevin took the time to personally enroll me and then sent me my user name and password with a short note saying, “I know you are running 100 miles an hour and we want to make sure you get the discount.”

Was Kevin’s action essential? No, it was optional. And, as it turned out, saved me about $115. Because of actions like this, I don’t compare rates with his competitors to see if I can find cheaper insurance. Why would I risk losing the personal attention I receive?

So while the essential aspects of my insurance policy have little to do with whether or not I decide to renew, shop around for a better rate, or recommend Kevin and Allstate to others, the nonessential aspects are vital to these decisions.

What are some nonessential aspects of your own job that are vital to your success?

Work vs. Play

Wednesday, January 20th, 2010

WorkersEarlier this week, a friend of mine passed along a copy of Daniel Pink’s latest book, Drive. It was a pleasant surprise because, having read his bestseller, A Whole New Mind, it was on my buy list. One of the reasons I enjoy reading authors like Daniel Pink, Malcolm Gladwell, Thomas Friedman, and others, is that they consistently challenge deeply held assumptions that I’ve guarded for years.

And while Drive opened in this way—causing me to rethink what I’d previously accepted as truth—I soon read a sentence that reaffirmed what I’ve known to be true for years: “Work consists of whatever a body is OBLIGED to do, and Play consists of whatever a body is not obliged to do.”

The implication of this truth, as it applies to my work in the field of customer service, is that to the extent employees see their jobs as a series of algorithmic tasks (the bullet points that make up so many job descriptions) as opposed to heuristic tasks (opportunities to “perform” outside of one’s job description), they will most likely focus on job function (the algorithmic tasks associated with their job role) at the expense of job essence (the heuristic tasks that contribute to their highest priority).

What’s their highest priority? For most customer service employees it’s to create delighted customers—those who will repurchase, be less price-sensitive, and recommend the company or brand to others.

The disconnect I most often experience as a customer of an airline, hotel, restaurant, or department store, is that employees tend to execute their jobs as a series of algorithmic tasks (e.g., issuing a boarding pass, obtaining a valid method of payment, taking an order, or ringing up a purchase) that they would define as work. In some cases, they might even define these tasks as routine or monotonous. And whenever customers detect monotony from employees, it contributes to perceptions of bland, uneventful, and indifferent customer service.

The opportunity then lies in reframing employees’ views of their job roles. That is, expanding job descriptions from a myopic set of required algorithmic tasks that focus on job function to include optional heuristic tasks that support job essence.

Here is what it might look like in a hotel:

Among other job tasks, a front desk agent’s job description presumably includes obtaining a valid method of payment from each guest prior to issuing a room key. That’s an example of an algorithmic job task (i.e., following a set of established instructions) that fulfills the employee’s job function of checking-in guests. In many hotels, employees and guests alike would characterize this procedure as transactional, process-focused, and predictable—each one like the last one.

Now imagine the above algorithmic job task being completed in a way that fulfills the employee’s job function while, at the same time, supports the essence of her job role: to create a delighted customer.

Perhaps the desk agent smiles, makes eye contact with the guest, and says, “That’s a lovely tie. It matches your suit nicely. Who is the designer?” The guest, flattered by the remark, may then proudly answer, “Louis Vuitton” or “Robert Talbott.” Either way, he will be complimented that she noticed and will likely characterize the experience as exceptional, guest-focused, and unexpected. And while he probably won’t recall the transaction at all, he’ll remember the compliment for a long, long time.

All the desk agent did was expand her job description from a defined set of required algorithmic tasks (i.e., obtaining a valid method of payment from the guest) focused on job function (i.e., checking-in a guest) to include an optional heuristic task (i.e., providing a sincere and specific compliment) that supports job essence (i.e., to create a delighted customer). In doing so, she expressed her own uniqueness and creativity by doing something that was entirely optional and beyond the confines of her job description.

The late J.W. Marriott, Sr. said it well when he reflected on his own view of work: “There weren’t these two opposites, work and play, one bad and the other good. It was having a vision of the way things ought to be and then making them that way.”

That quote really encapsulates the message of this post. To the extent that employees view their jobs as a series of others-directed obligations, their jobs will seem more like work—with all the limitations and monotony associated with it. And to the extent that employees exercise their freedom to self-direct their performance using a variety of optional techniques, their jobs will seem more like play—with all the freedom and satisfaction associated with it.

Comments? (Please don’t feel obligated…they’re optional.)

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.

What’s in a name?

Sunday, September 27th, 2009

Express genuine interestEarlier this month, I stopped by Hooters for lunch. During my hour-long visit, my table was “touched” by three separate Hooters Girls (my server, Felicia, and two others: Lillie and Kassity) and the manager, Ben.

I don’t always do so well remembering names but they made it easy for me. Two of the servers signed a napkin at my table and all four employees were wearing name tags that were clearly visible. That’s not always the case in many establishments.

All that attention not only made me feel valued as a customer, it also made an impression on me. Instead of feeling like just another restaurant “cover,” I felt as though this dining experience had been personalized—like the napkin—just for me. The staff expressed genuine interest in me, the guest. It was unexpected and I was pleasantly surprised.

Providing and using names is necessary to establish rapport. And establishing rapport is necessary to build trust. And building trust is necessary to gain customer loyalty. And customer loyalty—and the future spending and referrals that come with it—is necessary for business success.

So, what’s in a name? Business success.

How a bottle of Geritol, delivering a package in the snow, and walking a dog, resulted in customers for life!

Wednesday, August 26th, 2009

Below are three true stories that illustrate the memorable customer service behavior: deliver service heroics. In order for us to have a common understanding of what it means to deliver service heroics, consider this definition: Going beyond the job duties that are expected of the employee.

1.) Earlier this year, I worked with a client who shared a story about how one of his front desk agents, Shannon, had established a genuine rapport with a repeat guest over many months. The pair laughed together about many things, including the guest’s own self-deprecating comments about his old age. For instance, on occasion he would jokingly refer to his need for Geritol. Unbeknownst to him, Shannon recalled their conversation and had a small bottle of Geritol waiting for him in his guest room when he returned and checked back into the hotel. Not only did Shannon’s gesture put a big smile on the guest’s face, it also reinforced the value she placed on their relationship.

Here’s an excerpt from a letter sent by the guest to the general manager of the hotel: “I recognize great customer service skills and your Shannon is a gem… She has made my stays at your hotel very memorable and I guarantee that, because of her, whenever I return to visit our branch in your wonderful city, I will stay at your hotel. I will also recommend your hotel to my associates, comrades, and even competitors.”

2.) A few years ago, my wife and I made plans to celebrate our 10th wedding anniversary at the Broadmoor Hotel in Colorado Springs. I’d made arrangements for my wife’s anniversary ring to be delivered to the hotel in time for our arrival. As it happened, there was a snow storm that day in Denver and we ended up canceling our plans to stay at the hotel.

I contacted the Tiffany & Co. store in Denver with my dilemma and my salesperson, Christine, assured me that she would take care of it. What happened next was legendary. The store arranged for one of its security guards to drive two hours south of the store to Colorado Springs where he located the UPS truck that carried the ring, provided the paperwork necessary to claim the package, and then drove it another hour and a half to our house.

He arrived at 9:00 pm and wouldn’t even accept a gratuity for his extra effort. Of course, I wrote Tiffany’s president about the service heroics and committed to “never purchase a significant piece of jewelry from a jeweler other than Tiffany & Co.” And I meant it.

3.) I recently saw a television commercial for Angie’s list, a company that pre-screens service companies for quality and reliability. In it, a customer phoned her plumber who was working on a repair at her house. She notified him that she was running late and was concerned about her little dog, Molly. Joe, the plumber, then did something unexpected. In the customer’s words: “Joe patiently paraded her up and down the street, sacrificing his time and dignity (he was a large man and Molly was an itty-bitty terrier) until her business was done. That’s why he’s the only plumber I’ll ever use.”

You see, when a hotel desk clerk surprises you with a bottle of Geritol, when a jewelry store security guard delivers a package to your front door in the snow, and when a plumber takes your dog for a walk, they are going beyond the job duties that are expected of them. They are delivering the unexpected—the memorable.

And they are reinforcing the personal importance of their customers. That is, the value these customers bring to the business through personal spending, loyalty, referrals, etc. In every one of the above examples, the customer cemented the relationship with a commitment to repurchase.

So, whenever you have an opportunity to spend a little more time with a customer or, in some other way, perform beyond the limitations of your job description, do it. It will be refreshing for you and memorable for your customers!

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.

Customer-unfriendly policies

Monday, June 15th, 2009

I recently stayed at a full-service hotel in Scottsdale that offered a nice workout facility with treadmills and stationary bikes that faced a set of wall-mounted flat screen televisions. The audio for each television was accessed individually at the exercise equipment in order for each guest to listen to his/her preferred channel. To access the audio, one needed headphones that could be obtained at the front desk.

One evening, while I was awaiting a colleague in the lobby, I overheard a conversation between a front desk representative and a hotel guest. The guest had gone to the workout facility and realized that he needed headphones in order to access the audio of the television channel he had selected. When he asked for a set of headphones, the representative said, “I’ll need a photo ID in order to hand out the headphones.”

Now, think about the realities of this situation. You have a guest who’s paying about $200 to stay in the hotel for the night, who has likely spent the day working and/or traveling to Scottsdale, and who is probably looking forward to a workout before facing another long day in the morning. The guest has changed from his work clothes into shorts and a t-shirt and has left his car keys, driver’s license, wallet, etc. in his hotel room.

The guest explains that, under the circumstances, he does not have a photo ID with him and offered his name and room number in addition to showing the representative his room key. The rep held firm to policy saying, “Our policy requires a photo ID in order to give out headsets. We’ve lost a lot of them in the past.”

Now examine her response. Several things caught my attention:

1.) The word “policy” is contradictory to good service. Customers do not want to hear about policies that stand between them and what they want. Sure, there are necessary policies. For instance, those intended to address legal, ethical, and safety concerns. It’s also advisable to have policies in place to protect the company’s assets (as in this case, involving the headphones).

That said, let’s consider the math in this illustration and see if we can identify the real asset. How much for a set of headphones—like the ones the airlines offer free of charge? I just checked on-line and found a set of Coby Ultra-Lightweight Stereo Headphones for $4.79—and that’s if I only bought one set. In quantity they’re even cheaper.

Now, let’s try and get past how difficult customers are when they fail to adhere to our policies and take an objective look at what this customer represents in financial terms:

At $200 per night (assuming no ancillary revenue from in-room services, food and beverage, gift shop sales, etc.), after you deduct the costs of preparing the room, in-room amenities, etc., you can figure the hotel captured around $125 in gross profit which may dwindle to around $15 per guest room per night in net profit for the company.

Obviously, the real asset in this example is not the headphones—it’s the customer. Managers (who devise these policies) and front-line employees (who get stuck enforcing them) need to “get” this. Policies must take into account the customer’s perspective and reinforce the value that the company places on its customers. Doing so will create more opportunities to satisfy customers, gain their loyalty and referrals, and grow the business.

2.) Requiring a photo ID in these situations is inconvenient and insensitive. Most customers making this request will be standing there in their workout clothes and will have left their wallets containing photo IDs back in their rooms. Knowing this reality makes the requirement of showing a photo ID impractical for hotel guests who do not want to hassle with returning to their rooms, waiting on elevators, and perhaps waiting a second time at the front desk if a line forms while they are retrieving their photo IDs.

3.) Saying that “we’ve lost a lot of them in the past” implies that customers are irresponsible or dishonest. It’s critical to never offend customers by (even unwittingly) implying that they are irresponsible or dishonest. If we offend customers, then we are disrespecting them. Most customers will make allowances for lapses in service. Few will make allowances for disrespect. When disrespected, customers will go out of their way to change providers and will share the negative story with anyone who will listen.

The guest in this situation was appalled at the desk clerk’s reply and lack of empathy. He did not want to spend the next 6 or 8 minutes returning to his room to access his photo ID only to find that the equipment he intended to use was now being used by another guest. His body language told the story: palms flat on the counter, heavy sigh, followed by an abrupt turn away from the rep in the direction of the workout facility.

This guest decided not to joust with the employee who was standing firm on “policy.” Instead, he resigned himself to an audio-less workout—content to read lips on CNN and make his best guess at what the correspondents were reporting.

As service is my business, I find myself observing lots of situations like this one and, on occasion, advocating on behalf of customers. In this case, I offered my photo ID to the rep and requested a set of headphones. She promptly handed them to me and I said, “Great. Now that gentleman will be able to listen to the programming in the workout room.”

Realizing my intentions, she reverted back to “policy” stating that if the headphones were not returned to the desk, then my room account would be charged $80!

When I approached the guest in the workout facility a minute later, you should have seen the look of astonishment and appreciation on his face. It made my day. And to think, the gal at the front desk could have enjoyed the same feeling but instead dutifully enforced a customer-unfriendly policy.

Look around your own business. Are there any customer-unfriendly policies in need of revision or, better yet, elimination?

You never know what they’ll remember…

Monday, May 4th, 2009

When I was ten years old, during the summer months when we were out of school, my friends and I used to walk to a local shopping center to buy packs of gum or candy bars—whatever we could get for 50 cents or so.

I remember how hot the summers were in Kansas and how we would always end up at Hayward’s Pit Barbeque, a cramped restaurant at the corner of 95th and Antioch in Overland Park. The owner, Hayward Spears, at that time was the cook, cashier, table busser, and dishwasher. Our motley crew of sweaty kids would step inside the air-conditioned restaurant to cool off with no intention of buying anything.

Instead of running us out to create more room for paying customers, Hayward would bring us cups of ice water. The image is still so vivid. Do you recall those textured red and gold plastic cups? It seems like most barbeque and pizza restaurants used that style of cup back then. He’d bring over a tray of those cups with the condensation trickling down the sides and we would each take one and quench our thirsts.

Why so much detail in that description? Because it was a powerful memory for a ten year old boy that left a lasting impression.

In the years since that time, Hayward has expanded his barbeque empire to include a much larger restaurant near the corner of Antioch and College Boulevard, a banquet facility, catering, and offers a full line of barbeque sauces, which have become a staple of grocery and specialty stores throughout the Midwest.

A few years ago when I was back in Overland Park on business, I stopped into Hayward’s as I always do when I return. This time, to my delight, I saw Hayward greeting customers inside the entryway! I introduced myself, we shook hands, and I told him the same story I’m telling you. I told Hayward that, even though Kansas City is filled with quality barbeque restaurants, I always return to his restaurant because of the treatment I received three decades earlier as a sweaty kid on summer break.

Not surprisingly, Hayward has heard similar stories from other customers who themselves go out of their way to buy his barbeque. In fact, Hayward’s is so popular that they’re now serving more than five thousand customers a week!

There’s a saying that if you do it right every time, you’ll be doing it right at the right time. I bet Hayward Spears had no idea back then that his actions would make such a lasting impression on me that I would be posting a blog 33 years later about the memorable customer service I received.

Then again, did we even know what a blog was in 1976?

Communicating personal importance reinforces positive memories

Monday, March 9th, 2009

Personal importance is often misunderstood at the frontline service provider level in the hospitality industry. I’ve had participants in customer service classes who challenge the notion that anyone should be treated any differently than anyone else. Some see acknowledging one’s personal importance or “Elite” status as favoritism. Others see it as an affront to their own social status, as though they are of a subservient class.

My response to these participants is that by personal importance, we are not suggesting a social hierarchy whereby customers are treated as more important people. Personal importance implies the acknowledgment of their importance as customers and the value they bring to the business through personal spending, loyalty, referrals, etc.

The best illustration of personal importance that I’ve come across lately comes from the book, The New Gold Standard by Joseph A. Michelli:

A guest of The Ritz-Carlton wrote a letter to the company president, Simon Cooper. In the letter the guest recalled:

“One of your employees and I got on an elevator in your building. I pushed the sixth-floor button and he pushed none. Instead of getting off with me on the sixth floor, your employee simply said, ‘Have a nice day.’ Upon exiting the elevator, I asked, ‘Where are you going? Aren’t you getting off here?’ Your employee replied, ‘No, I’m going back down to the fifth floor.”

The guest goes on to write, “I couldn’t believe it—how do you find people who are so invested in placing the needs of their guest above their own?”

The opposite of placing the needs of customers above your own is to place your needs above theirs. This happens all the time when companies cite “policy” as the rationale for not meeting the needs of their customers. Other times, customers may perceive that they’re being treated indifferently—like they don’t matter—and feel as though their business is being taken for granted.

One survey revealed that 68 percent of customers quit doing business with a company because of perceived indifference towards them as customers. That’s shameful!

So, ask yourself these questions: What might my staff and I be doing that may be, perhaps unwittingly, communicating indifference towards the customers we serve? And, what actions can we take immediately to acknowledge the personal importance of our customers?

Today’s service practices create tomorrow’s service culture

Wednesday, March 4th, 2009

Last month, I presented a customer service message to a group of managers from Townhouse Inns of Montana, a division of Town Pump, Inc.

During my work with them I learned that the company founder, Tom Kenneally, Sr., began the company in Butte, Montana as a single full service gas station in 1953. It was here that he began to lay the customer service foundation for a company that would later expand into lodging, casinos, car washes, convenience stores, propane services, and more.

Here are just a few examples:

  • Tom, Sr. would hand the customer his wristwatch to time his oil change which was guaranteed to take less than 3 minutes or the oil change was free! This gesture demonstrated that he valued his customer’s time and was confident in his own ability to perform the service within the timeframe promised.
  • Back in the 1950s, the state of Montana published a vehicle registration directory that listed every license plate number issued as well as the name corresponding to it. In 1953 in Butte, Montanan you can rest assured that Tom, Sr. knew most of his customers by name. However, on those occasions when an unfamiliar vehicle pulled into the service station, he would take note of the plate number and then quickly look up the name associated with it. This way, he could greet the customer by name!
  • More recently, Town Pump, Inc. established a charitable foundation with the mission to provide financial support to Montana charitable or governmental organizations with the priority to support and meet basic needs and education for Montana citizens. The Town Pump Charitable Foundation has contributed $1.15 million to Montana food banks alone over the past seven years.

A company’s history is vital to its identity and culture. Current employees take their cues from the patterns forged over time that emerge as company history, legacies, stories, and culture. In the case of Town Pump, Inc., it’s a story of 56 years of service to its customers, employees, and neighbors.

And remember that while 1953 was a long time ago, tomorrow is the first day of the rest of your company’s existence. In other words, the stories and legacies that will come to define your company in the future are being created right now!

So the question becomes, “What am I doing right now that will support the kind of service culture that I want to be associated with and remembered for?” Once you’ve identified that, now you just simply need to behave on your good intentions—as Tom, Sr. has done for so many years.