Customer Service: How Can it Improve? Jon Strande

Today's writing comes from Jon at Business Evolutionist.  Leave your comments below!

Customer Service:  How to Fix it?

Well, this is a great discussion topic Todd has picked - because we're all customers, so we can all relate! In order to "fix" customer service, one first has to figure out why customer service is broken. So, where is it broken? Well, a couple of things come to mind:

1. some people working customer-facing jobs don't care enough about the customers or the "products" the company sells
2. the people on the front line aren't given the necessary authority to do what's right for the customer
3. organizations in general care more about getting new customers, than they do about ensuring their current customers are happy
4. most organizations care more about profit than people

There are probably other reasons customer service is broken, but those four seem like a great place to start - and all of those items are fixable.

Let's start with the customer-facing employees. In life, there are some people who are truly compassionate, and I'm sure you've met some of them. They have empathy for their fellow man and it is obvious. But, how many people do you know that are truly compassionate? You see, that is a rare quality, hard to find in life, and even harder to find with someone making $7.00 dollars an hour. Compassion is a latent quality in almost everyone, whether you believe it or not, we all have the capacity for it. The trick is to find a way to press their compassion into service - it isn't easy, but it can be done.

The next one, to some degree, is the easiest item on the list. Give front-line people the authority to make decisions. I won't go into any detail about this one because it has been written about hundreds of times - allowing people to resolve customer issues on the spot. The reason that I bring it up here is because; this one doesn't make any sense unless you tackle the first one. For instance, if you just give people the authority to resolve issues without helping them understand the pain customers are experiencing, most times the resolution the employee offers won't match the pain of the customer. First comes compassion, then comes action.

One doesn't have to look far to know that most organizations give better deals to new customers. Phone companies, cable companies, etc. "Sign up now and get your first month free" or "get a brand new camera phone, for $0.49 cents", the ads say. But, as an existing customer, where is my free month? Where is my $0.49 cent phone? As my wife asked recently; "after 8 years of being a customer, where is my free month?".

Finally, and probably most obviously, most businesses are in business to make money. The trouble, of course, for you and me, is that we know it. Seldom do we see any organization that truly cares about what they're selling or why they're selling it. I'm reminded of a story:

Selling Diamonds From the book: How to Win Customers and Keep Them for Life

The famous New York diamond dealer Harry Winston heard about a wealthy Dutch merchant who was looking for a certain kind of diamond to add to his collection. Winston called the merchant, told him that he thought he had the perfect stone and invited the collector to come to New York to examine it.

The collector flew to New York and Winston assigned a salesman to meet him and show him the diamond. When the salesman presented the diamond to the merchant he described the expensive stone by pointing out all its fine technical features. The merchant listened and praised the stone but turned away and said, "It's a wonderful stone but not exactly what I want."

Winston, who had been watching the presentation from a distance, stopped the merchant going out the door and asked, "Do you mind if I show you the diamond once more?" The merchant agreed and Winston presented the stone, Winston spoke spontaneously about his own genuine admiration of the diamond and what a rare thing of beauty it was. Abruptly, the customer changed his mind and bought the diamond.

While he was waiting for the diamond to be packaged and brought to him, the merchant turned to Winston and asked, "Why did I buy it from you when I had no difficulty saying no to your salesman?"

Winston replied, "That salesman is one of the best men in the business and he knows more about diamonds than I do. I pay him a good salary for what he knows. But I would gladly pay him twice as much if I could put into him something that I have and he lacks. You see, he knows diamonds, but I love them."

And that is what it is all about - and why Harry Winston was famous: because he loved diamonds as much as his customers did, and that love came through loud and clear in every conversation he had. My doubt is that any of us have ever experienced that kind of interaction, but if we did, we'd be loyal customers of that business.

Comments

[Rosa]

I love your Harry Winston story Jon, for it so succinctly describes how great customer service ultimately is about a connection being made in a meaningful way;
people - product/service - people.
When we talk to those who have been selling successfully for a long time and ask them about their success, what often times unfolds are the collections of their stories, and how the "work" they've done had been worthwhile.
Mahalo for sharing this.

[Jon Strande]

Rosa, my pleasure - thank you for your very kind comment!

This is really what it is all about; seldom do the people inside organizations care about the "why" of the business or "what" the company is offering.

Again, thank you for your nice comment!

Jon

[Winnetta]

I, too, enjoyed the Harry Winston story. As a new weblog writer, I have trouble finding subjects to write about. I want my website to be informative as well as entertaining. I want to find something I can truly write passionately about. Thanks for the insight, Jon!

[Christopher Bailey]

Jon, your four points on how CS is broken are right on. At best, most organizations seem to be ambivalent about customer service; at worst, they seem to be in denial about its make-or-break ability.

It amazes me that some organizations assign their CS department to the bowels of the hierarchy. Or they determine they can save money by outsourcing or automating it. Then, there is confusion as to why their customers are leaving in droves. The consumer is expecting greater and greater accountability from those with which they do business.

BTW, brilliant story about Harry Winston. It deftly illustrates that knowledge isn't the only key to fulfilling the business relationship. You have to include the heart, as well. The customer wants to be seen, heard, and felt.

[Jon Strande]

Winnetta, thank you for the comment and welcome to the wonderful world of blogging!! Write about the things you care about, the things you're passionate about, and you'll never run out of subject matter.

Christopher, thank you for the great comment! You're right, the CS department is almost always the bottom of the hierarchy, when in reality the customer views it at the top... and the point of the make-or-break nature is too true. There is a great old saying in the restaurant business: A bad waiter can ruin a good steak. A good waiter can save a bad steak.

Customers are people too, and what do people want? As you mention, they want to be seen, heard and felt! Great point!

Jon

[christopher grove]

Great post Jon.
The comment about CS being in the bowels of the company is way too true, as is the point about CS not having enough authority.
I've worked a helpdesk line. I remember once a few years ago, we had this annual presentation about the company (company news, evolution, general raises to be given, etc.). The HR boss gave these presentations to the different depts separately. So here we were, the 2 helpdesks, going through this powerpoint. General raises for everyone except us; we were going to be on performance-based raises as of then. Somebody asked why ours were the only depts where everyone wasn't getting a raise (note managers included). The reply was: they've studied (as in got diplomas), you haven't.
Apart from the fact that I think it's inadmissible that an HR guy could say that, how can somebody working on one of those lines, where he takes a fair few calls each day from angry customers, motivate himself easily?
That said, to be honest, you don't always get the right people in the CS jobs (whatever the industry, whatever the job).
If so many companies talk about how important good customer service is, why does it seem that customer service isn't evolving in the right way fast enough? Sure, as customers we have come to expect more and more, and this will continue. Yes our expectations will always be to have more (and I'm not saying that this is wrong), but customer service is still way too far behind where it should be.

[rick gregory]

Jon,

Ah, but Harry was in the diamond business precisely because he loved them. A CS rep is not a CS rep because they love the business or product. It's the difference between an employee and an entrepreneur. Now, some CS reps DO love their product, but because of this they usually move away from CS to other facets of the business. And that's assuming that they're not an outsourced CS company.

What you outline above are four symptoms of a business culture that does not value CS highly, usually because it's a cost center. The perception is that there's no upside to spending more on CS because, unless you have CS cross/upsell, there's no incremental revenue. Let's look at a counter-example to this assertion... I've been a T-mobile customer for years and when my first phone broke, I went to the store. They explained that as a customer of some standing (2 years at that point) I could call their corporate service number and get a deal on a new phone. They gave customers a rebate based on how long they been with T-Mobile. Next time, the store itself was setup to do this for me. And when I called about a better plan, they gave me the promotional one for new customers, asking only that I extend my time with them. Guess why I had no problem saying 'yes.' Now, did they benefit from CS in these cases? Well, yes, in that I'm sure they made money from the phone sales. But in each case, they gave me a better deal than they had to - it would appear that they actually would have been better off making me buy the two phones at list, and not extending the promotional plan to me, right? Maybe. But when number portability came along, would I be loyal? Heck no! I might well have jumped to ATT or someone else. But since they raised themselves from of of the commodity category by their customer service they are still making money from me.

[Aleah]

Nice story, Jon. I blogged about customer satisfaction and loyalty yesterday after having experienced a restaurant that was willing to throw in something extra, and for free. My challenge from this experience was to extend our services - in a similar manner - by offering something "just because," and out of the blue. This unprompted form of generosity really shows customers that you enjoy and believe in what you are offering them.

For large companies, why not allow a certain percentage of freebies for your front line workers to offer customers? Equip them with the tools to give your company a good name.

[K. Todd Storch]

Great feedback from everyone!

Jon is right on with why new customers get freebies, but existing customers' aren't offered the same types of promotions.

This is why every year I contact AT&T Wireless, extend my contract another year and negotiate a new phone and extra services (additional data, sms, etc.).

Every year I have been "given" this, but it usually takes discussing this with 2 or 3 people while I'm on the phone (the person answering my phone call never understands why I would want the same promotion that they advertise...).

Todd

[Dave]

Good, thought provoking stuff here Jon! I think we're all starting to get the feeling what the guy who follows Barry Bonds in the lineup feels like :-)

"Compassion is a latent quality in almost everyone..." How true. Then one could assume...a good manager is like a good archaeologist, they just have to chip away the rock to get to the good stuff.

Jim Collins, in his book Good to Great, says to get the right people on the bus, sitting in the right seats and Rosa Say,in her book Managing with Aloha, says to try and discover prospective candidates true intent and passions. Although a good manager should probably pack a hammer and chisel, I tend to lean towards what Jim and Rosa teach.

[Jon Strande]

Wow, I go offline for a couple of hours and look at what happens! All these great comments - where to begin?

Chris, as usual, we're on the same page. Man, nothing pisses me off more than hearing people talk about the importance of education - give me a bunch of people who are really passionate about something and we'll kick the crap out any group of educated folks. (Hate to get off on a rant here... )

Rick - my point exactly. We need to find people who care about the company or get them to let loose their compassion that is innate in each of us. This is somewhat of a longer story, but did you ever see the movie Star Wars? Please forgive the pop culture, geek inspired ("sci-fi") reference. But think about the charater Han Solo, for those of you don’t know, he was the mercenary pilot hired to safely transport Luke Skywalker, the Hero, to Alderaan.

As a very recognizable figure, Han Solo was the perennial disbeliever; he was presented as a materialist...

"Look, I ain't in this for your revolution man, I expect to be well compensated."

At the beginning of the story most of us, like Luke, would question the decision to hire Han. Even his name, "Solo", told us something about who he was supposed to be... deep down, he thought of himself as an egoist. He turned out to be a compassionate person at the same time however. As the story moved along, he turned out to be a hero. In the end, hiring Han, obviously, turned out to be the right thing to do. The adventure evoked a part of his character that he didn’t know existed. He was a compassionate human being - just like 99% percent of the rest of the people in the world.

This is what I meant in the first point I made. Peoples compassion can be pressed into service, provided their given a reason to show that side of themselves.

Aleah! Hey there! Yeah, I'm with you (as usual), reward existing customers!! Who doesn't like to be treated to something free every now and again - the "value" of the offering doesn't matter, just show them that you're thinking about them.

Todd, yeah, I've done that with AT&T myself a couple of times. I'm sure that they're aware of it, but have the cost of not offering stuff freely as opposed to making us jump through hoops works out. What they should do is put an end to wasting our time and theirs and just send us a coupon at the end of every year for $100 off a new phone and 100 additional minutes when we re-up our contract. I'm sure there is some emotional benefit we derive from winning the concession, whatever it is, but regardless of what I get.

I hope my replies here made sense... I'm rushing off to the vet with a sick dog.

BTW: Todd, thank you so much for hosting this and letting me be a part of it! It has truly been a pleasure!

[Rosa]

Such insight and great storytelling Jon - I never thought about Hans Solo that way before: you're 2 for 2!

[Andreas]

Jon,

As usual, you hit the topic spot on. And what a great story. It is all about passion and what one of the commenters said is so true - the one with passion beats the one on the payroll by far. So the question is, how to instill passion into the sales people. But the story also tells us that the right people should deal with the right people. May be the salesman was wrong in the first place. The manager knew about the interested party already, beforehand, he linked up with him earlier. Does this tell us that a manager, or a CEO needs to be more involved with customers? For sure!!!

I also think that there is one more issue that needs to be fixed - how to engage the frontline employees? Sure, they earn lesser than the people behind the frontlines but may be there are other incentives that keeps them passionate. And those incentives are crucial - it is not always about money, but the environment in which they work, and the empowerment they have, as you pointed out. If those conditions don't exist, than. well, they leave the organisation, and the employer needs to start again. What is thus needed is a level of engagement, of trust, that keeps customer service representatives, or salespeople, or customer facing staff, engaged and passionat at a high level.

[CedarFever]

Jon,

The Harry Winston story is a good illustration of something I've lately been calling "The Warm Body Theory of Management" - that is, when a credentialled skillset is treated as commodity with no consideration as to the character of the individual posessing the skillset.

Why would Mr. Winston settle for someone in that position who he admits doesn't meet the most important qualification? Sure, the employee may be able to recite an impressive resume, but if he cannot perform the job (in this case make an important sale), why is he kept in that position? Why not find someone perhaps a bit less technically knowledgeable but more enthusiastic about the product and keep the less enthusiastic employee on as technical support for the sales staff? Or better yet, why not find someone who is both enthusiastic *and* competent? I think the answer is that often management is either A)unwilling or unable to spend the necessary time, resources, and imagination to find the right employees or B)fundamentally misunderstands the product, the customer, and the market.

This is a congenital defect within an organization: when management decides to staff such important positions with "warm bodies" and is unwilling to find the right people for the task at hand, there is nothing that will improve customer service.

[Jon Strande]

Dave, I missed your comment last night while I was replying - we must have been typing at the same time!! Thank you so much for your very kind comment! When Todd announced the final schedule, I thought he was saving the best for last, putting the worst first. So, based on the awesome post by Bren this morning, I can only imagine whats to come.

Hah! Great thought about the manager being an archeologist... perhaps it is more an anthropologist, someone who understands people first and foremost. A couple of thoughts come to mind: My old boss used to say that he liked to hire the way that the Yankees draft baseball players, they look for passion first: Skills can be taught, passion is a harder thing to come by.

I've heard the Good to Great "Bus" reference, but I've never read the book. So I'm not sure how Collins suggests finding those people for the bus. Perhaps a topic for a blog post?

Andreas, yep, you got it, and the challenge faced by most businesses: How to engage EVERYONE in the organization, not just the CSR's.

Cedar, yep. I wrote about the exect same thing on my blog several months ago: The Origins of Unengaged Employees. We're talking about the exact same thing.

http://jstrande.typepad.com/blog/2004/05/the_origins_of_.html

Again, thank you to Todd for including me in this and thank you again to everyone for the fantastic comments!!

Jon

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