Getting The “WOW” February 23, 2011

2011 Excellence In Tennessee Conference

Moving your customer from the everyday to an

extraordinary experience

Getting The “WOW!”

Opening Comments

Nothing new under the sun

Goal for this presentation

Apology in advance

Three Years Earlier

To advance health, fitness, and physical performance for

everyone

Mission Statement

Integrity Respect

Positive attitudeQuality

Self-motivatedSuccess-driven

Core Values

We are powered by our customers. Satisfaction

guaranteed. No exceptions!

Customer Promise

“Customer” Touch Points

Customer

“Customer” Touch PointsOrder calls

Status callsProduct callsReturn calls

Compliant calls

WebsiteTrade shows

Clinics ConferencesWhen we’re

trainedCommunityIn cities we

visit

People who know people who know people

Walk in visitors & customersApplicantsLocal vendorsVisiting suppliersEx-employeesArticles we write Organizations we

belong toE-mails and

letters

Customer

Shipments

Catalogs

You Better Take The Customer Seriously, And You Better Have Real Service That Delivers Real

Satisfaction!

Survey Card – First Generation

Customer Survey Scores/GraphsCustomer Survey Graphs by Category:

Overall Company Score

93.72%

91.53%

92.78%

93.08%

91.08%

94.99%

90.00%

91.00%

92.00%

93.00%

94.00%

95.00%

96.00%

97.00%

98.00%

Oct

-07

Nov-

07

Dec-

07

Jan-0

8

Feb-0

8

Mar-08

Month

%

Overall Company Score

Linear (Overall Company Score)

Overall Company Score 94.99% 93.72% 91.08% 91.53% 93.08% 92.78%

Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08

The Good, The Bad, & The Ugly

“The moment of truth” is that moment when any of us is in a position to serve our customer. . .

. . . and we either keep our promise or our promise becomes a bunch of words on a piece of paper or in something hanging on the wall.

Our Moments of TruthWhen Operations picks the orderWhen Customer Service takes the order

or answers questionsWhen Operations unloads a receipt of

goods and puts it awayWhen Accounting makes a collection callWhen Marketing assembles the catalogWhen Education provides their training

to paying customersWhen we serve each other (internal

customers)

Perfection is achieved, not when there is nothing more to add, but when there is

nothing left to take away.

Envisioned FutureOverall Company Score

94.99%

93.72%

91.53%

92.78%

99.00%

100.00%

91.08%

93.08%

94.72%

96.00%

97.00%

98.00%

86.00%

88.00%

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

102.00%

Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

Overall Company Score

New York Times

2010 Small Business Malcolm Baldrige Award Winner Announced

Power Systems Wins

President __________ and Commerce Secretary ___________today announced Power Systems is one of five winners of the 2010 Malcolm Baldrige National Quality Award, the nations highest Presidential honor for an organization al performance.

This is the first winner from the sports, fitness, athletic or health segment. Other companies competing for this year’s award in this segment included Nike and Under Armour.

Date today 10-01-10

Service – Phone Metrics

FY2008

Calls Handled

Calls Abandoned

Calls to MIDCO - Off-hours

Calls to MIDCO - On-hours

Q1 TOTAL 7,337 471 681 2,079 Avg 244.6 15.7 22.7 69.3 352.3

% OF TOT 69.4% 4.5% 6.4% 19.7% 100.0%

Q2 TOTAL 19,740 1,133 2,755 5,508 Avg 303.7 17.4 42.4 84.7 448.2

% OF TOT 67.8% 3.9% 9.5% 18.9% 100.0%

Q3 TOTAL 20,867 436 654 932 Avg 321.0 6.7 10.1 14.3 352.1

% OF TOT 91.2% 1.9% 2.9% 4.1% 100.0%

Q4 TOTAL 19,302 287 407 373 Avg 297.0 4.4 6.3 5.7 313.4

% OF TOT 94.8% 1.4% 2.0% 1.8% 100.0%

2008 Tot 67,246 2,327 4,497 8,892 Avg 305.7 10.6 20.4 40.4 377.1

% OF TOT 81.1% 2.8% 5.4% 10.7% 100.0%

FY2009

Calls Handled

Calls Abandoned

Calls to MIDCO - Off-hours

Calls to MIDCO - On-hours

17,490 274 259 128 291.5 4.6 4.3 2.1 302.5

96.4% 1.5% 1.4% 0.7% 100.0%

20,241 458 361 177 311.4 7.0 5.6 2.7 326.7

95.3% 2.2% 1.7% 0.8% 100.0%

18,856 498 377 264 290.1 7.7 5.8 4.1 307.6

94.3% 2.5% 1.9% 1.3% 100.0%

998 37 73 23 199.6 7.4 14.6 4.6 226.2

88.2% 3.3% 6.5% 2.0% 100.0%

57,585 1,267 1,070 592 287.9 6.3 5.4 3.0 302.6

95.2% 2.1% 1.8% 1.0% 100.0%

So How Did We Do?Overall Company Score: Year over Year

88.00%

89.00%

90.00%

91.00%

92.00%

93.00%

94.00%

95.00%

96.00%

97.00%

98.00%

Month

FY07

FY08

FY09

Linear (FY09)

FY07 92.88% 95.65% 94.40% 93.60% 94.54% 92.89% 94.76% 93.93% 94.61% 94.84% 94.96% 91.85%

FY08 94.99% 93.72% 91.08% 91.53% 93.08% 92.78% 94.72% 93.52% 94.92% 92.98% 95.68% 94.55%

FY09 94.70% 96.45% 95.36% 95.25% 95.46% 96.99% 95.66% 94.64% 95.91% 95.28% 95.85% 95.29%

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Service Stories

From: Kathryn MacLane

Mike,I have noticed how much friendlier that the Kroger employees are in the past year. They go out of their way to speak and ask questions like, “How is your day going?”

From: Kari R. Turner

Chick Fil-a, I don’t care where you go; they always have Excellent customer service. They always say, “My pleasure to serve you at the window”, or if you ask them a question like, may I have ketchup; the answer is “My pleasure”. Makes you feel like they have been waiting on you to arrive all day, they care how customers perceive them, hence they are always busy! J

From: Misty L. Chittum

Service related. Typical of most restaurants it seems lately. When we got there we had to wait a good deal of time for someone to come over and take our order. Then we had to ask for bread. Kari ordered her burger well-done and it was rare. She sent it back and by the time she got a new one, the rest of us were finished eating. I asked the waiter to comp her meal, he had to get approval from the manager, which he did, but when it came time to get our checks, we had to wait 15 minutes for him to find the manager to enter it in the computer. When the manager came to apologize (educated guess, he did not introduce himself!) he just said sorry for the burger as he took his gloves off, apparently he had been outside. And forget about getting a refill on our drinks. But, today I went to chickfila and I was the 100 th customer! I got to ring the cow bell and got my sweet tea for free!

The Survey Process

Survey Card – First Generation

Changing The Survey

New Survey Approach

The Survey Follow-up Process

Survey Card Changes 10/01/10

Survey Card Changes 10/01/10

Refining The New Survey Approach

Continuous Process Improvement

Survey Card Changes 01/01/11

So What Have We Learned?

Powerful wordsThe answer and the questionCommitmentRe-enforcement ObsessionInspiration works

Defining WOW

Examples of WOWFrom: Trevor Motz TMotz@power-systems.com

Hi Victor,

I apologize that the Versadisc Pro did not have inflation instructions with it. I will get with our education department to have that information added. I am having a pump shipped to you free of charge for the inconvenience. I also installed the adapter for the Versa Disc to the pump so that it will be ready to use when you receive it. You will want to pump the Versa Disc up to a point that feels comfortable for you. The item doesn’t have a recommended size because some people like having more air and some like less. It’s really a matter of personal preference. I have attached a copy of the insert that comes with the item and an extra plug as well, just in case you didn’t receive them with the original order. I do apologize for the problems with your order sir. I hope that the items sent will help you. If you have any questions feel free to contact me and I will be more than willing to help. Thank you and have a great day.

Hello Trevor, Thank you for the email, and thanks in advance for the pump and the extra plug, I will be

looking for them in the mail.  My wife and I were disappointed when the product arrived, because of the lack of documentation and no obvious way to inflate the Versdisc.  I really think that additional instructions will help greatly.

I will contact you again once the pump arrives to let you know how we get on.   Until then, many thanks again for the email and for the good customer service.

Best regards,Vic Alesi

Hi Julie, My name is Daryl Shute; I am the Education Coordinator here at Power Systems. I read your survey you submitted regarding your purchase of the Pilates Versa-Tube. We want all of our customers to have a wonderful buying experience. I am very sorry that you did not! I’m not sure why your product did not include instructions and a sampling of exercises that normally accompanies this and many of our products but I apologize for this oversight on our part.

We feel our products are of high quality at a reasonable market price and I can see why you were not happy based on the missing information. I am sending you my personal copy of the Pilates Versa-Tube DVD for your trouble with the hopes you will remain a loyal customer of Power Systems for many years to come. I’ve attached a sampling of exercises to get you started while you wait for the DVD to arrive.

Please feel free to contact me personally if you have any issues with products or especially if something is missing or unavailable to assist you in reaching your exercise goals.

 

17. Tell us what we did to "WOW" you.  Please provide comments if you were unsatisfied in any area so we have the opportunity  to improve!!!  Product or service recommendations? - We want to know.

you didn't wow me. Your prices are high, you don't give free shipping and you don't include any sort of guide with your products

From: leeju8@comcast.net [mailto:leeju8@comcast.net] Thank you very much! I have to admit, I was surprised that nothing came with the equipment.

Thanks again. Julie

Hello Mr. Dryden, Thank you for choosing Power Systems. We received your web survey and based upon your feedback we have refunded the shipping cost for your 2-8-10 order. You should see a credit back to your credit card in the amount of $116.74. I did want to let you know that we do not know what our upcoming promotions will be until the promotion goes into effect. Unfortunately we would not be able to tell you in advance what an upcoming promotion will be, but we do appreciate your feedback. I have also alerted our web team to your concerns with placing an order online. We are continually striving to improve our online ordering process. If you have any questions, please let me know. Have a great day! Dear Jason, I must admit I am in awe of the incredible customer service Power Systems has shown both in the past and again with your email. I didn't expect a refund when I filled out the survey, but am extremely pleased with your response. What makes this all the more amazing for me is that I spent a good many years in a business unrelated to the fitness industry and was, among other things, a member of the Board of Directors of a Fortune 500 company. One of the things I always tried to instill in my staff was the importance of great customer service - and now I'm the recipient of the very thing I promoted. You and the entire Customer Service team at Power Systems are to be commended for your courtesy, promptness, and overall skills. If you are ever in need of a statement of satisfaction please feel free to contact me. I'd be more than happy to sing your praises. Many thanks,Ray Dryden

13. Will you order from us again?YesI was genuinely impressed the level of accountability by your staff. The first rep admitted she was the one who had handled my exchange and that the error had been hers. There was no reason for her to do that other than great professional ethics. I'd certainly never known it was her. Impressed me so much that even though there had been multiple problems with my purchase, I'll still order from you again and again.

14. Would you recommend us as a fitness supplier?YesI have already.

15. Please provide comments if you were unsatisfied in any area so we have the opportunity to improve or tell us what we did to "WOW" you. Product or service recommendations? We want to know. I think I told you my WOW moment with your customer service rep. You clearly are a company with solid business ethics, quality products and a desire to meet your customers needs with complete satisfaction. I wouldn't order from anyone else. Thanks

Jason Just wanted to take a moment to praise Shannon for the work he did at the

ACSM expo in Austin last week. His knowledge of the Power Systems (PS) line and friendliness was a big part of the reason I made a (fairly large) purchase through PS once again.  In the past I had been disappointed with the level of service offered through PS and had began using other vendors for my equipment supplies (SPRI, Perform Better, etc).  I even avoided the PS booth my first few times at the expo but was sucked in by Shannon's clear knowledge and friendliness when dealing with another customer.  Please see that he is acknowledged for his exceptional work and for winning back a customer.

Sincerely,Eric Haugen

Even though the word WOW does not appear in the e-mail below, Shannon gets a WOW.  The customer made a large purchase from Power Systems primarily because he was friendly and knowledgeable.  Shannon made a large sale (which is always good), but more importantly, he took a customer away from SPRI and Perform Better by winning them back . . . kind of a double whammy.  An important thing to note . . . the customer was "sucked in" by Shannon's dealing with another customer.  Not to say this customer is a child, but as the old saying goes . . . children learn by listening and watching what we do, not just by what we tell them to do.  

Thanks Shannon for the WOW you earned from this customer.  Excellent!

2

S W C

March April May June July August September October November December93.0%

94.0%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

96.7%

95.4% 95.4%

95.3%

97.2%

95.9%

96.9%

96.3% 96.4%

98.9%

Meet Goals

Meet Goals

March April May June July August September October November December95.5%

96.0%

96.5%

97.0%

97.5%

98.0%

98.5%

99.0%

99.5%

98.8%

96.7%

97.6% 97.0%

97.7%

98.4%

97.4%

97.8% 97.8%

98.9%

Order Again

Order Again

March April May June July August September October November December94.0%

94.5%

95.0%

95.5%

96.0%

96.5%

97.0%

97.5%

98.0%

95.8%

95.5%

96.1% 96.1%

96.3%

96.5% 96.5%96.4%

95.6%

97.7%

Overall

Overall

So Where Are We Today/What Next?

Customer Promise

We are powered by our customers. Satisfaction

guaranteed. No exceptions!

Customer Promise

So Where Are We Today/What Next?

Customer PromiseExpanding free education Instructions about productsPrevention of service failures StandardsInnovative service - imagine

So Where Are We Today/What Next?

Customer PromiseExpanding free education Instructions on how to use products

Prevention of service failures StandardsInnovative service - imaginePerfection

Questions & Discussion