I recently read a blog post on the Change of Address Blog called, “Why Electric Companies Don’t Care About Customer Service.” It mirrored my own thoughts and the reason that I have been speaking on customer service and the customer experience for over 29 years. The article stated that, “The knowledge that you are required to be their customer is really the largest reason why they are notorious for bad customer service.”

This is the wrong attitude. In other sectors of our lives, we are able to make our purchase decisions based on a number of factors. With utility companies, we only get to ask ourselves, “What is available?” before signing up for our services.

As a result, many utility companies receive terrible customer reviews and often experience late payments, which can require additional work and expense for the companies.

To read the entire article, click here.

I was recently asked to write an article for an online publication called the Call Center Times. Call centers, perhaps above all other industries, must strive to provide exceptional customer service because they only get a few minutes of non face-to-face interaction with the customer–who is often angry to begin with. Luckily, there are a few essential principles of customer service that, when mastered, can take a customer from heaven to hell in 60 seconds or less.

I have been talking about and teaching customer service for over 30 years. These principles are as valid and important today as they were in 1980.

1. Feel good about yourself. We tend to live in a negative world and
to think negatively. It’s critical that you feel good
about yourself, that you are confident, enthusiastic, and positive.
Each of us is responsible for how we feel about ourselves. You must
believe in yourself, concentrate on your strengths, and recognize the
importance of your role. Use affirmations and visualization. Read books
on self-improvement and strive to be the best you can be. See yourself
as you can be, not as you are.
2. Be courteous. It takes no more time to be nice and polite than it
does to be rude. Every customer wants to feel important
to you and your organization. Treat them with courtesy and respect.
When you do, they will return to you time and time again.
3. Give positive communication. Smile, call customers by name, and
give specific, genuine, sincere, and timely feedback.
When you communicate positively, you form a connection with the
customer that says, ‘I am pleased that you patronized my organization, I
value you, and I am here to ensure your needs are met.’
4. Perform for the customer. Customers have the right to demand
performance. They aren’t interested in your problems
and excuses; they want you to take care of them. You can be polite and
courteous but, if you don’t do what you say you will do, you will not
meet the standards of good customer service. If you say you’ll call a
customer on Tuesday, do it. If you say you’ll ship the product on
Friday, do it. Do what you say you will do—and do it with speed and
accuracy. If you ship a product when you say you will, but you ship the
wrong product, you’ve taken a giant step backward.
5. Listen carefully. Few employees do this. If you
don’t listen to what the customer is telling you, you cannot give that
customer what he needs. Listen to the customer, then clarify what he
has said by repeating it: ‘Ted, let me repeat what you said so I’m sure
I’m on the right track.’ Ask questions, get involved, and show that you
care.
6. Learn and grow in your job. If a customer asks you to explain the
difference between product A and product B, she’s asking you to provide
more than the difference in price. Study your organization’s products
and services—as well as those of your competitors—so that you can
provide your customers with the information they need to make a
purchase decision.

The story goes…

“No good deed goes unpunished. That’s what Heidi Heise, a Subway sandwich employee in Canada, discovered after she gave a free Footlong to two neighbors whose apartment complex had just burned down, leaving them without food or money. Her good deed was caught on camera and the owner of the franchise immediately fired her after he saw her handing out the free meal. It turns out, Heise was allowed one free sandwich a day for her own consumption — but it had to be recorded as a staff meal. In this case, she simply forgot to do that. But rules are rules, and the owner sacked her anyway. But here’s the twist: a rival Quiznos owner caught wind of the story and promptly hired the experienced sandwich maker. “Heidi is a person who was trying to do the right thing,” said the Quiznos owner. “My store had an opening, so we tracked her down.” Kind of restores our faith in humanity. Ok, not really.”

Source: http://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-fast/14622552-1.html?doconfirm=1#8061397

My spin…

This employee had the right idea. In addition to making a customer (and neighbor) happy, she would have generated positive word-of-mouth advertising for Subway–if they wouldn’t have fired her. Instead, this franchise owner decided to “obey” the long list of rules and regulations that all corporations love to have and lost a valuable employee.

Empowered employees are the greatest asset that a company can have. This employee took a risk in favor of the customer and it resulted in what all employees fear: termination. This is the reason that employees rarely make empowered decisions and often feel helpless and useless at their jobs.

My guess is that the CEO of Subway is furious right now. He or she would probably acknowledge that the positive word-of-mouth and reputation gained from giving the fire victims a free sub far outweighs the cost of the sandwich. Unfortunately, the franchise owner had to flex his muscle and now Subway will pay.

While talking with a friend recently about Interactive Voice Response systems— that endless maze of options that companies use in an attempt to direct callers to the appropriate department without having to pay an employee to actually answer the telephone—Ann made a confession.

“When I call my bank,” she said, “I wait for the option for non-English speaking callers and press that number. By doing so, I’m immediately connected to a real person and can skip several more layers of options. I’m sure that I annoy the hell out of them, but it!s better than having them annoy the hell out of me.” Ann is not alone in her dislike of Interactive Voice Response (IVR) systems. Millions of customers throughout the world surely share her opinion of the technology that John Tschohl describes as one of the greatest barriers to customer service. “Companies have turned to IVRs in order to save money, but they don!t realize the real cost of that technology,” says Tschohl, an international service strategist and founder and president of the Service Quality Institute in Minneapolis, Minnesota. “IVRs are the most expensive equipment companies will ever buy. They will never stop paying for it, as customers defect and they are faced with the expense of attracting new customers. I would guess that 95 percent of customers hate IVR systems, so why would any company use them? Any company that has at least 100 employees and wants to dominate the market should have its phone answered by real people 24 hours a day, seven days a week, within three rings.”

The message companies send by using IVRs, says Tschohl is this: We don’t want to be bothered by having to speak with you directly, but we’re more than happy to take your money. “When technology replaces the human factor, it drives customers away—and they take their money with them when they go,” he says. “If you have a monopoly, it doesn’t matter how upset your customers become, because you own them. Most companies, however, face fierce competition for customers.” Tschohl cites two companies that do understand the importance of the human touch. TD Bank, a member of TD Bank Financial Group in Toronto, Canada, is one of them.

During a recent trip to Russia and Belarus, Tschohl tested that company’s claim that it had competent people answering its phones 24 hours a day, seven days a week. “I called the bank at 4 a.m. U.S. time on a Saturday and a Sunday,” he says. “Both times my calls were answered by real people within three rings.” If you would like to test the bank’s phone system, the toll free number is (888) 751-9000 inside the United States, or (856) 751-9000 outside the country. Tschohl also is impressed with Mirax, the largest real estate developer in Russia. “Two years ago, I recommended that Mirax get rid of its IVR system, and company officials implemented that suggestion the following week,” he says. “That company then hired people to answer the phones 24/7, and they do so within two rings.” The number for Mirax, should you want to test this one, is 7 (495) 721-1000.

When it comes to hiring people to replace IVR systems, Tschohl recommends that companies hire local people, people who speak the language of the bulk of your customers. “When U.S. companies outsource their calls to other countries, for example, language becomes a huge barrier,” he says. “And often, because many of those employees come from a caste system that prohibits them from making decisions, their ability to solve a customer’s problem is extremely remote. Dell Computers lost its brand, image, and customer experience when it outsourced it calls to India and the Philippines, and it still has not recovered. In fact, its stock has dropped almost 60 percent since March 2004.”

Tschohl also recommends that companies train employees who are answering customer calls. “Train them so they are knowledgeable about the company’s products and services and develop their interpersonal skills, so they can deal effectively and efficiently with your customers,” he says. “Then give them the authority to respond to your customers’ needs with speed and courtesy. The easier you make it for customers to do business with you, the more business they will do.”

I visited Baker’s Square in Brooklyn Park yesterday and received some of the best service that I’ve ever had at a chain restaurant. My waiter’s name was Josh. He called me, “Sir.” He brought my coffee immediately and gave me a glass of ice water, “In case the coffee makes me thirsty.” He briefed me on the soups of the day, as well as what types of pie they were sold out of. His overall attitude was courteous and very upbeat–at 10:00 PM on a day when Baker’s Square gives away free slices of pie.

When he delivered my food I said, “You’re a very excellent waiter. You must really love your job. Do you?” He smiled and replied, “Well–you’re asking me that question on a really tough day. I’ve been working since 5:30 AM and might not get out until midnight. Plus, Wednesday is free pie day and it’s always very busy.”

He paused and then continued: “Actually, though, I do love my job. What I like most is providing an excellent experience for my customers. Regardless of whether I’m having a tough day, I still want to make their experience positive. They’re the reason that I’m able to have this job and I want them to be satisfied and happy. I would never take my problems out on a customer.”

This is the attitude that EVERY customer service representative (whether in the food industry, retail, or support) should have.

“Most people work just hard enough not to get fired and get paid just enough money not to quit.”—George Carlin

While that statement might have been true a few years ago, in the face of the dismal economy and the loss of millions of jobs throughout the country, employees today are willing to use every tool available to them to ensure they keep their current jobs or find new ones. And smart managers are encouraging them to do so. “Workers must utilize all of their skills and talents to sell themselves to their customers and their employers every day and in every undertaking,” says John Tschohl, founder and president of the Service Quality Institute In Minneapolis, Minnesota, and an international speaker on customer service. “They must be more agile, multi-talented and, above all, empowered. Those who reject empowerment—who fear risk and cling to the status quo—will lag behind and get left in the dust.”

Empowered employees take control; they make decisions quickly to help a customer, move a project forward, or solve a problem. In the process, they find their jobs more enjoyable. “Empowerment simplifies your job by putting you in charge of your own performance and giving you the responsibility to improve your work, your life, and the experiences of your customers,” Tschohl says. Empowered employees also earn the respect of their coworkers and managers and become invaluable to the company. The Ritz Carlton hotel chain makes empowerment a priority and recognizes five employees each quarter for their 5- star behavior, including rewarding each with $500. Each year, one of those employees is presented a roundtrip ticket to any Ritz Carlton hotel in the world and given $8,500 in cash.

“Empowerment helps employees advance their careers,” Tschohl says. “Empowered employees are more likely to get raises and promotions, while employees who reject empowerment remain stagnant.” Empowerment, he adds, relies on the following elements:

Knowledge. “The more you know about the company, your customers, and your position, the better equipped you will be when called upon to create and innovate,” Tschohl says. “You will be able to take that information and re-purpose it to meet your own needs and the needs of your customers. Just as you gather information before making a major purchase, such as a car, doing so will help you make better decisions at work.”
Trust. “Your employer must trust you to do the job, to make good decisions,” Tschohl says. “And you must trust that your company values your skills and put you in a position of authority for a reason. You also must trust yourself, have confidence in yourself.”
Feedback. “It allows you to alter your strategy and reevaluate empowered decisions you have made in the past,” Tschohl says. “It also allows you to know if you are working within your organization’s expectations. If you don’t get feedback, ask for it. It will demonstrate your desire to continuously improve. If that feedback includes criticism, don’t get defensive; accept it and use it to improve your performance.”
Delegation. “When you are empowered, you have the authority to delegate, to ask for help when you need it,” Tschohl says. “Delegating is not a sign of weakness; it will help you build an empowered team, which ensures a smooth and efficient operation.”
Recognition. “The more employees are recognized for making empowered decisions, the more likely they will be to use their creativity on every future project and problem,” Tschohl says. “When employees are recognized, they are more likely to replicate their success and make empowered decisions.”

There are roadblocks to empowerment, as well, he adds. Once they are removed, however, empowerment can become part of a company’s culture. Two of those roadblocks are:

Fear. “Employees who fear making the wrong decisions will never be empowered,” Tschohl says. “They are afraid they will be fired, that they will have to pay for whatever they gave customers to retain their loyalty when they had a problem with the company, or will be yelled at. Being empowered means seeking out—and embracing—change without fear of retribution.”
Micromanagement. “Nothing will kill empowerment more quickly than micromanaging,” Tschohl says. “It sends the message that you don’t trust youremployees. Give them the tools and skills they need to do their jobs, then take off the training wheels and allow them to ride.”

How would you feel if your mechanic drove 250 miles with a trailer hitched to his van to pick up your broken down vehicle and get it fixed… all for the price of gas? This is exactly what Bill Jaap, owner of Good Carma Inc., a Minneapolis Volkswagen and Audi repair shop, did for one particular customer.

Why did he do it? “She told a lot of people about it, and that meant business down the line,” Jaap said. Word-of-mouth advertising. It is one of the most basic, yet powerful aspects of a Service Strategy. And it gets results. Good Carma Inc. increased its revenue 37 percent, from $600,000 to $820,000, in 2009 and is on track to reach $1 million in 2010. According to Jaap, “You do this right and down the line things work out for you. That’s where the karma comes in.” Granted, Jaap spelled the Buddhist principle incorrectly (it’s Karma, not Carma), but maybe Jaap’s brand of “Carma” is exactly the sort of thing that all mechanic shops

Bill Jaap opened Good Carma Inc. in 1997 and had one clear mission: To go out of his way to satisfy customers. As it turns out, his plan was a success. Jaap’s “Carma” has lead to positive word-of-mouth advertising, repeat customers, and even an article in the Star Tribune (http://www.startribune.com/business/91664019.html?elr=KArksUUUoDEy3LGDiO7aiU).

Bill and Liz Jaap are living proof that the principles in my book, Loyal for Life, are applicable and effective… even in the smallest, family-owned businesses.

“If you want to grow your business rapidly and cost-effectively, word-of-mouth advertising will be your cheapest–and most effective–tool” (Loyal for Life).

“You Brits know the banks deliver a horrendous experience,” said Vernon Hill, founder of Metro Bank, as he sat in the lobby of one of two new Metro Banks that will open soon in the UK. “‘The IT systems in the British banks are worse than in any other G7 country. I have often said British bankers must actually be the best in the world to run banks with the IT systems they have,” Hill says. This is the kind of positive attitude that has lead to the success of Hill’s revolutionary chain of banks.

Hill’s mission? To change the way banks interact with customers. According to Hill, only 7 % of people pick their bank because of its rates; the convenience factor (as well as others such as ties with family and schools) is what drives individuals to choose a bank. This is why Hill has chosen to focus on customer experience, not just numbers and profit. His banks are clean, bright, welcoming, and, above all else, accessible. Metro Bank is open 7 days a week, with hours exceeding those of most National banks. Their website is easy to navigate and their customer support staff is attentive, respectful, and friendly.

In the UK, Metro Bank’s first open branch offers free coin counting machines, dog biscuits, and smiles.

Tellers are supposed to say, “yes” to customers.

Hill refers to his locations as “stores,” not “branches.”

Metro Bank is revolutionary because of their customer service strategy and implementation. Hill’s vision mirrors my own: a combination of caring, individual attention, customer appreciation, and a dose of low-cost, high-impact “freebies”–this that make customers come back every time… with a smile.

It’s no surprise that “The Devil Wears Prada,” was a hit, both in book and film format. Anyone who has ever held a job has a story to tell about a boss who could probably rival Prada’s Miranda Priestly, aptly described as “the boss from hell.” The toll those bosses take on the people they manage and the organizations they represent, is impossible to measure, both in terms of dollars and morale. I would guess that bad bosses are the major cause of employee turnover. The number one reason employees leave their jobs is not because of money, it’s because they work for bad bosses and don’t feel valued and appreciated.

Often, people are promoted to leadership positions, not because of their skill in managing people but because they are technically proficient at their current jobs. In many cases, they were never trained on how to be a boss, how to coach employees, and how to encourage superior performance. They don’t understand the importance of morale in improving performance and increasing productivity. Too often people are promoted for all the wrong reasons. They are technically skilled, they have been with the organization for many years, or they are friends with the boss. None of these is a valid reason for promoting someone. Why? None of them has anything to do with leadership skills. Instead, organizations should promote those people who are skilled, self-motivated, and are willing to learn, then train them. Good people skills are a critical trait for a good boss. No one is born with the skills necessary to lead people. They must be trained in how to motivate, recognize—and, yes, even reprimand—employees, all in an effort to form a cohesive and effective team. These are skills that must be taught and reinforced.

HERE ARE MY SIX SUGGESTIONS FOR BEING THE BEST BOSS POSSIBLE:

• Train yourself—and your employees

Read books on management, buy training programs or enroll in workshops and seminars that will help you become the type of leader you would like to work for. Train your employees—when you invest the time and money to do so, you are letting them know that you value them.

• Communicate clearly and regularly

Employees perform best when they know exactly what is expected of them and are given feedback that is specific, sincere, and timely. Two-way communication is important. When you let employees know that you are willing to listen to what they have to say, they will open up to you—and who knows what wonderful ideas they might have to share.

• Treat your employees with respect

Employees, no matter how menial the job or low the pay, deserve to be treated with respect.

• Recognize employees’ contributions

People need to be caught doing great things. Too often, the only time employees are recognized are when they make a mistake. But, if you make it a point to praise them—and do so in public—they will continue to work hard for you. People are hungry for recognition and will accomplish significantly more if they receive it on a regular basis. 

• Motivate your employees

Too many managers think money is the ultimate motivator; it isn’t. Nothing is more effective in motivating an employee than a pat on the back, a simple ‘thank you,’ or a public word of praise.

• Coach your employees

If you want to have a winning team, you must coach each member. You must nurture them. Recognize their strengths and help them to improve on their weaknesses. When you treat employees with respect, communicate openly and honestly, and coach them to do the best job possible, you not only will be a good boss, but you will increase your chances of being promoted to even higher positions within the organization. It’s a win/win situation.

John Tshcohl -described by Time and Entrepreneur magazines as a customer service guru - is also an International strategist and speaker. He can be contacted at John@servicequality.com.