I met a colleague at ink! Coffee in Denver last week. I appreciate great coffee as I’ve blogged about before and was really looking forward to trying ink!’s.

My first impression was positive as the barista welcomed me and briefly shared ink! Coffee’s philosophy regarding product quality and freshness.

After determining that I was meeting someone for coffee, she dispensed the coffee into a sturdy ceramic mug—which was refreshing. I took my first sip and was truly impressed with the quality. As advertised, it was rich, smooth and not at all bitter.

About twenty minutes into my appointment, the barista came by our table and mentioned to me that they offer free refills.

“Free refills?” I said. “That’s great! I’d love one. Thank you.”

Then she said something that shocked me.

“Oh…but I don’t get it for you. You have to go to the counter to get it.”

She then justified her response by explaining that we were a team and, as such, we all played different roles. Apparently, her role was to prepare and sell me a cup of coffee and my role was to pause my meeting, get up, go to the counter, and wait in line to request a refill.

ink! Coffee’s slogan is: Coffee. Above all else.

Clearly, this includes customer service.

In the men’s restroom, there is a sign boldly displayed which reads:

THE INK ON ink! COFFEE

In 1994, ink! started in Aspen, Colorado with one cart and a lot of passion. We continue to hand-roast our coffee at high elevation in the mountains which allows us to roast longer at a lower temperature making the coffee rich, smooth and never bitter.

Beans are delivered fresh to ink! stores, brewed into coffee, and served to adoring customers. And because we take pride in freshness, we only keep a pot of coffee around about as long as it took to brew it. Same goes for beans. We never stockpile them.

Our baristas have a passion for great coffee (without the attitude). And most importantly, they know how to make the perfect cup.

At least they’re consistent. This sign really does accurately capture the ink! Coffee culture that I experienced: A focus on coffee—not the customer. Notice the only reference to customers is in the second paragraph where we’re described as “adoring.”

I found this definition of “adoring” at Merriam-Webster.com: To worship or honor as a deity or as divine. In the context above, it would seem that customers are expected to “worship” ink! Coffee. That’s flawed. It’s reminiscent of American automakers’ attitude towards their customers until they began defecting to imported brands at an alarming rate. Only then did Detroit begin to refocus on customers.

In the third paragraph, it’s noted that “baristas have a passion for great coffee…And most importantly, they know how to make the perfect cup.” Both of these references have to do with ink!’s product, not service. In fact, there’s no mention of customer service anywhere—so I really shouldn’t have been at all surprised that the barista had no intention of refilling my cup of coffee for me.

I am a huge supporter of smaller, independent brands that compete against the behemoths and I want to see them succeed. That said, it’s unlikely for a coffee shop (or any other business) to succeed based on product quality alone. Service quality must be part of the equation.

If I were advising ink! Coffee, I would emphasize that its highest priority should be to create promoters of the ink! Coffee brand.

Global consulting 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 referrals to a company or brand.

Promoters respond to the question, “How likely is it that you would recommend ink! Coffee to a friend or colleague?” by selecting 9 or 10 on a zero-to-10 scale with 10 indicating they are extremely likely to recommend.

Promoters recognize product quality and they expect a commensurate level of service quality. If customers get one without the other, they’re less likely to recommend the company or brand to others. And, by definition, they’re not promoters. They’re either passives (indifferent about your brand) or detractors (responsible for 80 to 90 percent of the negative word of mouth).

ink! Coffee has a great location in Cherry Creek and an amazing product. But the reality is that there is a Peet’s Coffee & Tea and a Starbucks located on the same street. And ink! simply will not succeed in creating promoters and growing market share by focusing exclusively on product quality while remaining indifferent about the customer experience.

The 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.

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.

Last week, I worked with the general manager of a Hampton Inn hotel who shared this story:

Shannon, a front desk agent, had recently joked with a repeat guest (with whom she had a nice rapport) about aging. The guest was a bit self-deprecating about his own age and referred jokingly to his need for Geritol.

Unbeknownst to him, Shannon recalled the 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 pleasant surprise put a big smile on his face, it reinforced the relationship and genuine interest and affection she had toward him.

I priced a bottle of Geritol locally and with tax it’s $5.19. Was that a good use of the hotel’s petty cash? Before you answer, let me pass along some additional information that might help you to make an informed decision. Here’s an excerpt from an e-mail message from the guest that was sent to Shannon’s general manager afterward:

“(Shannon) has made my stay at your hotel very remember-able and I guarantee because of her, whenever I return to visit our branch in your wonderful city, I will stay at your hotel. I will also recommend any of my associates, comrades and even competitors to your hotel.”

Bain and Company, the consumer research firm, refers to this type of guest as a Promoter. Promoters, as their name suggests, promote a brand’s reputation, accounting for 80-90 percent of referrals, are the least price-sensitive, and—not surprisingly—report higher repurchase rates than less-satisfied customers.

Sometimes we over-analyze what it’s going to take (and how much it’s going to cost) to turn customers into Promoters. As Shannon has demonstrated, it actually takes just a little effort and perhaps (though not always) a few dollars to make a big impression on a customer!

Your turn: What can you do today with just a little extra effort to create Promoters of your business or brand?

Most companies seek to lead their competitors in market share.  But alas there is usually only one company with the largest percentage of market share.  While there are many factors that contribute to gains in market share, some of them such as advertising and discounting are quite expensive to maintain.

Why not take advantage of the goodwill you have developed with your very best customers?  Bain and Company, a global consulting firm, identified these customers as promoters.  These customers are the least price-sensitive, have the highest repurchase rates, and are responsible for between 80 and 90 percent of positive referrals to your company or brand.

In addition to promoters, they also identified two other categories of customers: passives and detractors.  All three categories emerged from ratings customers gave to companies in response to the question, “How likely is it that you would recommend this company to a friend or colleague?”

Bain and Company research over a ten-year period confirms that, in most industries, companies with the highest ratio of promoters to detractors in their sector typically enjoy both strong profits and healthy growth.  Mmm…maybe there’s something to this customer service stuff after all.

Interested in learning more?  Pick up the book.