The Importance of The Importance of Developing Top Notch Developing Top Notch

Customer Service Skills in Customer Service Skills in Today’s EconomyToday’s EconomyAITP – February 12, 2004AITP – February 12, 2004

Thomas (Pete) PetryThomas (Pete) Petry703-362-8180703-362-8180

TJPetry@aol.com

The Customer Service CrisisThe Customer Service Crisis• Customer loyalty to many brand names Customer loyalty to many brand names

has been eroding for many many years.has been eroding for many many years.• Most managers don’t know the root cause Most managers don’t know the root cause

of their customer dissatisfaction issues.of their customer dissatisfaction issues.• Many managers don’t comprehend the Many managers don’t comprehend the

seriousness of customer dissatisfaction.seriousness of customer dissatisfaction.• Few managers even know what good Few managers even know what good

customer service is!customer service is!

Crisis ContributorsCrisis Contributors• Increased competitionIncreased competition• Short-term economicsShort-term economics• Technological contributorsTechnological contributors• Rising demandRising demand• Rising customer expectationsRising customer expectations• Corporate downsizingCorporate downsizing

Product/Service RelationshipProduct/Service Relationship• Good Products = Good Customer Good Products = Good Customer

ServiceService• Bad Products = Bad Customer ServiceBad Products = Bad Customer Service• Quality ControlQuality Control• Six SigmaSix Sigma• ISO 9000ISO 9000• Remember the Maytag repairman?Remember the Maytag repairman?

Bad Products = Dissatisfied Bad Products = Dissatisfied CustomersCustomers• Problematic Customer Service IssuesProblematic Customer Service Issues• More complicated resolutionsMore complicated resolutions• Slower resolution timesSlower resolution times• Higher Service CostsHigher Service Costs• More dissatisfied customersMore dissatisfied customers

The Customer Service ChainThe Customer Service Chain

• Good Products = Happy CustomersGood Products = Happy Customers• Happy Customers = More GrowthHappy Customers = More Growth• Growth = More CustomersGrowth = More Customers• More Customers = More Employees and ResourcesMore Customers = More Employees and Resources• More Resources = Bigger Customer Service ChainMore Resources = Bigger Customer Service Chain

– Creates Potential for Poor Service every step of the wayCreates Potential for Poor Service every step of the way– Even the best products and services receive complaints now Even the best products and services receive complaints now

and thenand then– More phone callsMore phone calls– More phone calls = more potential to go wrongMore phone calls = more potential to go wrong

• Remember Murphy’s Law? Everything that can go Remember Murphy’s Law? Everything that can go wrong – WILL go wrongwrong – WILL go wrong

Did You Know?Did You Know?• Customers who complain represent only Customers who complain represent only

5% of customers who are dissatisfied.5% of customers who are dissatisfied.• Between 54% and 70% of dissatisfied Between 54% and 70% of dissatisfied

customers will do business with an customers will do business with an organization again if their complaint is organization again if their complaint is resolved in a timely manner.resolved in a timely manner.

• Satisfied customers tell less than 5 peopleSatisfied customers tell less than 5 people• Dissatisfied customers tell more than 20Dissatisfied customers tell more than 20

In a recent survey of corporate In a recent survey of corporate managers - When asked:managers - When asked:• Are you sure your customer service is Are you sure your customer service is

what is should be?what is should be?– 51%51% NoNo– 49 %49 % YesYes

• How do you earn customer loyalty?How do you earn customer loyalty?– 70%70% Great ServiceGreat Service– 19%19% Quality MerchandiseQuality Merchandise– 5%5% Thank-you notesThank-you notes– 4%4% Low PricesLow Prices– 2%2% OtherOther

The Ultimate Weapon!The Ultimate Weapon! More and more customers are expecting the very best from the More and more customers are expecting the very best from the

customer service organizations they deal with. They expect us customer service organizations they deal with. They expect us to show up to work on time, in the mood to help them, to show up to work on time, in the mood to help them, regardless of how our day is going. They expect us to answer regardless of how our day is going. They expect us to answer the phones immediately, consistently, without the use of voice the phones immediately, consistently, without the use of voice mail technology, and always have the answer they are looking mail technology, and always have the answer they are looking for in our back pocket, ready to provide upon a moments notice. for in our back pocket, ready to provide upon a moments notice. They expect us to be enthusiastic, energetic, respectful, They expect us to be enthusiastic, energetic, respectful, accurate, and courteous—and they expect this consistently, accurate, and courteous—and they expect this consistently, every time they call us. They expect us to go the extra mile, to every time they call us. They expect us to go the extra mile, to treat them with dignity and respect, regardless of the treat them with dignity and respect, regardless of the circumstances. They expect us to get everything done—and to circumstances. They expect us to get everything done—and to do everything well (every time—on every call). They don’t get do everything well (every time—on every call). They don’t get this very often, so when they do, they remember!this very often, so when they do, they remember!

Customer Service BasicsCustomer Service Basics• Listen to your customersListen to your customers• Put your customer service policies in Put your customer service policies in

writingwriting• Establish support systems that Establish support systems that

empower employees to gain and empower employees to gain and maintain service superioritymaintain service superiority

• Reward employees who practice it Reward employees who practice it consistentlyconsistently

Customer Service BasicsCustomer Service Basics• Be certain that your passion for customer Be certain that your passion for customer

service runs rampant throughout your service runs rampant throughout your entire organizationentire organization

• Be genuinely committed to providing more Be genuinely committed to providing more customer service excellence than anyone customer service excellence than anyone else in your industryelse in your industry

• Learn what your customers valueLearn what your customers value• Let customers know what your are doing Let customers know what your are doing

for themfor them

Who is the customer you Who is the customer you listen to?listen to?• Internal or ExternalInternal or External• Active or InactiveActive or Inactive• Current Customer or Prospective Current Customer or Prospective

ClientClient• EmployeesEmployees

How Do Your Customers How Do Your Customers Behave?Behave?• Contact you seeking information or Contact you seeking information or

referralsreferrals• Call you to pay a billCall you to pay a bill• Seek information regarding network Seek information regarding network

statusstatus• Track ordersTrack orders• Seeking information regarding a Seeking information regarding a

judgment or claimjudgment or claim

What Do Your Customers What Do Your Customers Value?Value?• Product and Service PerformanceProduct and Service Performance• ValueValue• AttentionAttention• CommitmentCommitment• PromptnessPromptness• CompetenceCompetence

See Things From The See Things From The Customers Point of ViewCustomers Point of View• They want to be treated with respectThey want to be treated with respect• Customers love to be validatedCustomers love to be validated• They want to feel they are importantThey want to feel they are important• They love to have you use their nameThey love to have you use their name• They don’t want to waitThey don’t want to wait• They want it fixed now!They want it fixed now!• They want the respect they deserveThey want the respect they deserve

Putting your Customer Service Putting your Customer Service Policies in WritingPolicies in Writing• It does not have to be elaborateIt does not have to be elaborate• It could be as simple as:It could be as simple as:

– The Customer is Always Right!The Customer is Always Right!

Pete’s Customer Service PolicyPete’s Customer Service Policy

• Is the Customer is Always Right?Is the Customer is Always Right?

• The Customer may not always be The Customer may not always be right, but they are always the right, but they are always the Customer!Customer!

The May Company (Hecht’s) The May Company (Hecht’s) PolicyPolicy• We are committed to providing you We are committed to providing you

with exceptionally friendly service, with exceptionally friendly service, quality, merchandise and value. We quality, merchandise and value. We stand behind the products we sell stand behind the products we sell and we want you to be satisfied.and we want you to be satisfied.

Value Option’s PolicyValue Option’s Policy

• Our mission is to provide Our mission is to provide unsurpassed customer service in the unsurpassed customer service in the mental health industry both to our mental health industry both to our internal and external clients.internal and external clients.

Marshall Field’s PolicyMarshall Field’s Policy

““Give the lady what she wants!”Give the lady what she wants!”

Be Sure Every Employee Be Sure Every Employee Knows Your PoliciesKnows Your Policies• Hecht’s: My goal is to prove that I can be Hecht’s: My goal is to prove that I can be

exceptionally friendly at ALL times, under exceptionally friendly at ALL times, under ALL circumstances:ALL circumstances:– I will smileI will smile– I will greet customers promptlyI will greet customers promptly– I will be helpfulI will be helpful– I will use the customer’s name when possible andI will use the customer’s name when possible and

——– I will ALWAYS say, “THANK YOU!”I will ALWAYS say, “THANK YOU!”

All new employees sign the above pledge which is All new employees sign the above pledge which is then posted in the employee loungethen posted in the employee lounge

Policies (Cont)Policies (Cont)• Customer Service is one of the most Customer Service is one of the most

important assets that a company has important assets that a company has to offer its customers.to offer its customers.

• In these times of increasing In these times of increasing competition in the market place, it is competition in the market place, it is more crucial to provide the kind of more crucial to provide the kind of service that sets one company apart service that sets one company apart from another.from another.

Establish Support SystemsEstablish Support Systems• Its often not enough to say, we will Its often not enough to say, we will

give superior customer service.give superior customer service.• That’s a good start, but—That’s a good start, but—• Now think more about what makes Now think more about what makes

your service distinct, then develop the your service distinct, then develop the internal infrastructure that is internal infrastructure that is necessary to maintain that distinction.necessary to maintain that distinction.

Support Systems (Cont.)Support Systems (Cont.)• Walmart: “How can I help you?”Walmart: “How can I help you?”• McDonald’s:McDonald’s: “Welcome to “Welcome to

McDonald’s, may I take your order?”McDonald’s, may I take your order?”• Federal Express: “When it absolutely Federal Express: “When it absolutely

positively has to be there overnight!”positively has to be there overnight!”

Develop Measurements of Develop Measurements of Superb Customer ServiceSuperb Customer Service• Encourage Customer CommentsEncourage Customer Comments• Monitor Service Rep PerformanceMonitor Service Rep Performance• Measure Customer Right TouchMeasure Customer Right Touch• Measure Customer One TouchMeasure Customer One Touch• Measure % of problems resolved in less Measure % of problems resolved in less

than 2 hoursthan 2 hours• Customer SurveysCustomer Surveys

– Note: Don’t Survey the customer too muchNote: Don’t Survey the customer too much

Reward Employees Who Reward Employees Who Practice it ConsistentlyPractice it Consistently• Bonus PlansBonus Plans• Internal RecognitionInternal Recognition• Customer Service StarsCustomer Service Stars• Recognize Cross Recognize Cross

Functional/TeamworkFunctional/Teamwork• Celebrate National Customer Service Celebrate National Customer Service

Week (2Week (2ndnd week in October) week in October)

Terminate Bad Customer Terminate Bad Customer Service PerformersService Performers• Don’t just “talk the talk”Don’t just “talk the talk”• Set clear expectationsSet clear expectations• Every employee should know what is Every employee should know what is

expected of them and what is notexpected of them and what is not• Develop an “If you can’t handle the Develop an “If you can’t handle the

heat, get out of the kitchen” heat, get out of the kitchen” expectationexpectation

Be certain your passion runs Be certain your passion runs rampantrampant

• Service is the lifeblood of any organizationService is the lifeblood of any organization• Everything flows from it and is nourished Everything flows from it and is nourished

by itby it

• It may be difficult to create or change an It may be difficult to create or change an existing corporate culture. It must start existing corporate culture. It must start from the top, and it often takes time.from the top, and it often takes time.

Be certain your passion runs Be certain your passion runs rampantrampant• Customer ServiceCustomer Service

– It’s not a departmentIt’s not a department– It’s an attitude:It’s an attitude:

•Ford:Ford: “Where Quality is job 1”“Where Quality is job 1”• Put responsible customer service Put responsible customer service

leaders into positions of leadershipleaders into positions of leadership

The Acid Test of Customer The Acid Test of Customer Service LeadershipService Leadership• Is the person committed to top notch Is the person committed to top notch

customer service?customer service?• Does this person reward and recognize Does this person reward and recognize

good performance?good performance?• Does this person listen?Does this person listen?• Will this person be open to constructive Will this person be open to constructive

criticism?criticism?• Is this person a mentor?Is this person a mentor?• Do they posses, the “Voice of Experience?”Do they posses, the “Voice of Experience?”

Be Genuinely CommittedBe Genuinely Committed• Be genuinely committed to providing Be genuinely committed to providing

more customer service excellence more customer service excellence than anyone else in your industry.than anyone else in your industry.

• This commitment must be so This commitment must be so powerful that every one of your powerful that every one of your customers can sense it.customers can sense it.

Be Genuinely CommittedBe Genuinely Committed• Share information with people on the Share information with people on the

front linesfront lines• Meet with your employees on a Meet with your employees on a

regular basis to discuss improving regular basis to discuss improving serviceservice

• Solicit ideas from employeesSolicit ideas from employees– After all:After all: They are the ones who deal They are the ones who deal

with the customers most oftenwith the customers most often

Learn To Be Proactive and Learn To Be Proactive and ReactiveReactive• Learn to anticipate the clients needsLearn to anticipate the clients needs• Act from the knowledge that what Act from the knowledge that what

customers really want is to be validatedcustomers really want is to be validated• They love being treated as individualsThey love being treated as individuals• Never let your customers forget youNever let your customers forget you• Set clear expectationsSet clear expectations• Reset inappropriate expectationsReset inappropriate expectations

Let Customers Know what you Let Customers Know what you are doing for themare doing for them• Write old customers personal Write old customers personal

(handwritten) notes frequently(handwritten) notes frequently• Keep it personalKeep it personal• Remember special occasionsRemember special occasions• Pass on information/newsletters, etc.Pass on information/newsletters, etc.• Consider follow up calls as business Consider follow up calls as business

development opportunitiesdevelopment opportunities

Principles that will make your Principles that will make your customer Happycustomer Happy• FriendlinessFriendliness

– Using open gesturesUsing open gestures– Smile (Even when your on the phone)Smile (Even when your on the phone)

• Validation and acknowledgmentValidation and acknowledgment– Eye contactEye contact– hold and call back techniqueshold and call back techniques– Be sensitive to their wait timesBe sensitive to their wait times

• Choosing your behaviorChoosing your behavior– Behavior breeds behaviorBehavior breeds behavior– Behavior is not something you’re born with – It’s a Behavior is not something you’re born with – It’s a

learned responselearned response

What Customers want to What Customers want to hearhear• I don’t know, but I’ll find out … I don’t know, but I’ll find out … • I will take responsibility …I will take responsibility …• I will keep you updated … I will keep you updated … • I appreciate your business!I appreciate your business!

Few Customers ComplainFew Customers Complain

Studies show that the vast majority Studies show that the vast majority of unsatisfied customers will never of unsatisfied customers will never come right out and tell you they are come right out and tell you they are unsatisfied. They simply leave unsatisfied. They simply leave quietly, later telling everyone they quietly, later telling everyone they know not to do business with youknow not to do business with you

When Customers Do When Customers Do ComplainComplain

Think of it as a golden opportunity to Think of it as a golden opportunity to change that customer’s mind and change that customer’s mind and retain his or her businessretain his or her business

Handling Dissatisfied Handling Dissatisfied CustomersCustomers• Let customers vent their feelingsLet customers vent their feelings• Encourage them to get their Encourage them to get their

frustrations out in the openfrustrations out in the open• Never argueNever argue• Never tell a customer “You don’t Never tell a customer “You don’t

have a problem”have a problem”– Them’s fighting words!Them’s fighting words!

Handling Dissatisfied Handling Dissatisfied CustomersCustomers• Share your point of view as politely as Share your point of view as politely as

you canyou can• Take responsibility for the problemTake responsibility for the problem• Don’t make excusesDon’t make excuses

– If an employee was sick or a supplier let If an employee was sick or a supplier let you down, that’s NOT the customer’s you down, that’s NOT the customer’s problemproblem

– It’s Yours!It’s Yours!

Handling Dissatisfied Handling Dissatisfied CustomersCustomers• Immediately take action to remedy the Immediately take action to remedy the

situation. Promising a solution and then situation. Promising a solution and then delaying it, only makes matters worse.delaying it, only makes matters worse.

• Empower your front-line employees to be Empower your front-line employees to be flexible in resolving complaints.flexible in resolving complaints.

• Give employees some leeway in deciding Give employees some leeway in deciding when to bend the rules.when to bend the rules.– If you don’t feel comfortable doing this – make If you don’t feel comfortable doing this – make

sure they have your or another manager sure they have your or another manager handle the situation.handle the situation.

Handling Irate CustomersHandling Irate Customers• Focus on the situation, issue or Focus on the situation, issue or

behavior, not the personbehavior, not the person• Maintain a constructive relationshipMaintain a constructive relationship• Take the initiative to make things betterTake the initiative to make things better• Maintain self confidenceMaintain self confidence• Respect the customer—even when they Respect the customer—even when they

don’t respect you!don’t respect you!

Follow up With all Follow up With all Dissatisfied Dissatisfied CustomersCustomersWas it delivered on time? Was it delivered on time? • Was it just what you ordered?Was it just what you ordered?• Was the job will be complete?Was the job will be complete?• Encourage any and all customer Encourage any and all customer

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