Jonathan Farrington’s Blog

It is said that 91 percent of people do not complain. They prefer to obtain their revenge by not buying from a business that has given them an inferior product or a poor service. They have passive power, and they know it!

The following is a true story - only the name of the business has been changed.

Blooming Buds was a well-established garden center on the outskirts of a growing town. Two years before it closed, it had expanded to include a café, a gift shop and an organic fruit and vegetable outlet. As well as employing a core staff of 10, it took on a number of seasonal and part-time staff.

The company didn’t have a customer service policy, nor did it believe in wasting money on training. Customers seemed happy enough. After all, the business hardly got any complaints. No, everything appeared to be rosy with Blooming Buds.

The manager should have been a bit suspicious. A lack of complaints doesn’t necessarily mean that all customers are happy. In fact, most of us don’t bother complaining. We just walk away and never go back.
The business’ expansion, unsurprisingly, led to a variety of organizational and logistical problems. There were staffing shortages and managerial inexperience. They experienced a reduction in quality. Gradually business dropped off, but still, nothing was done about it.

The staff stopped telling the manager about some of the problems they had encountered because he wouldn’t listen. He invested heavily in advertising and made sizable capital changes. He never once thought about getting some feedback from his customers.

Eventually, the inevitable happened. The business had to close.

Complaints Are Opportunities

That’s right: complaints are actually opportunities. Opportunities to do what, you ask?

You can use complaints to:

• Evaluate how well you are doing
• Identify weak points in your system and processes and put them right
• See situations from the customer’s point of view
• Improve customer satisfaction
• Create long-term loyalty - handling disgruntled customers well often leaves them feeling more positive about your organization than before.

Some Worrying Facts

One unhappy customer tells 10 to 15 others about their experience, and if it is really bad they will tell the whole world. For every complaint that could be made, around 20 people do not even bother. This means potentially 20 lost opportunities.

If you handle a complaint badly or with an “I could not care less” attitude, or worse, if you hide behind the “rule book,” you will lose that customer for good.

While the example above comes from the brick-and-mortar world of retail, the same rules apply for business-to-business (B2B) sales as well as e-tail and e-commerce.

Whether your team sells and services your customers face-to-face, phone-to-office, or over the Web, the strategy is the same: Welcome complaints, encourage complaints and ensure that your organization is “complaint friendly.” Your business will be healthier as a result.

Today’s News: Have you visited the Top Sales Experts site recently? A number of very talented new team members have been added recently including: Debbie Fay, Nigel Edelshain, Alen Majer, Terri Dunnevant, Steve Kramer, Stone Payton, Karl Goldfield, Dave Kurlan, Shane Gibson, Paul Cherry and Tim Wackel - do drop in here 

Tomorrow: On The JF Guest Author Spot, I welcome back Tim Wackel.

 
Why is it that when customers blame us for something going wrong, we are quick to blame others, especially in larger organizations?

“We passed the order to Department X weeks ago; I do not know what they have done with it.” (You know very well it is still in your in-tray!) Customers see through these feeble excuses and are not impressed.

Why do we do things like this? Here are a few justifications:

• Department X is always making mistakes; attributing one more to them won’t make any difference.
• There is a particular person in Department X you do not like.
• No one will find out whether Department X is to blame or not.
• They have blamed your department often enough.
• They always beat your staff at the annual bowling challenge.

Two-Way Process:

Lack of communication between departments is often cited as the reason for poor working relationships.

“They never tell us anything” is a frequent cry.

Communication is a two-way process. The most efficient of systems will not be effective if people don’t read their messages, look at the notice boards, log on to their computers, check their voice mail or pay attention at meetings.

Getting people to sign memos provides only proof of receipt, not evidence that they’ve actually read the information. They need to want to know what’s going on.

Low morale and a critical and suspicious environment will prompt employees to see customers as a nuisance and not the lifeblood of the business. Every employee needs to appreciate that they contribute to customer satisfaction, even if they are working behind the scenes, e.g., maintenance, cleaning, refuse collection, etc. They deserve to be kept informed!

Insecurity Creates Conflict:

Another cause of internal conflict is insecurity: downsizing, management restructuring, fast-talking business consultants, threat of job loss, short-term contracts — all might trigger a loss of pride in the job and a could-not-care-less attitude. Customers become anxious and take their business elsewhere.

Insecurity manifests itself in a number of behaviors:

• Gossip and back-stabbing
• Shifting blame
• Increase in absenteeism due to stress
• Constant moaning and whining
• Negative thinking

In this environment, it is likely that customer complaints will increase. It is essential to keep the customer at the center of everything you do, no matter what is going on behind the scenes. Without customers, you do not have a job.

Taking Action

Managers need to be very observant when employees are showing signs of dissatisfaction. Early identification of problems is the key to a successful solution.

Look out for:

• Deadlines not met
• Increase in illness
• Poor-quality work
• Bad atmospheres
• Arguments

How To Address Employee Dissatisfaction

• Ask questions in a confidential manner
• Reassure; calm fears
• Praise, encourage
• Don’t blame or challenge
• Involve people
• Motivate, reward

Multi-Skilling & Interdepartmental Working:

Conflict also arises through ignorance. Giving people the opportunity to learn about the work of others and equipping them with new skills helps dispel fears, boost confidence and motivate. It also takes people out of their enclosed worlds of Accounts or the Mail Room and gives them the bigger picture.

Many complaints arise because staff feel they are expected to do a job without any training. Allowing them to attend courses out of the workplace is very beneficial. It gives them the opportunity to network with others, revitalize their ideas, and acquire new skills. Hopefully they will come back and think, “This is not such a bad place after all.”

In any business, we are all customers of each other. Unless we get the internal customer service right, it will not extend naturally to external customers. Remember, we are all working for a common aim: customer satisfaction.

Today’s News: A very exciting initiative is now very close to launching - Business Experts Webinars, will provide a series of top class webinars from some of the world’s leading business experts and my good friend Lee Salz, should be very proud for bringing this all together. I have developed five sessions and my first broadcast is on May 6th - I will provide further details, just as soon as the site goes live. 

Tomorrow: Another good friend and best selling author, Jeb Blount is on The JF Guest Author Spot tomorrow, with the excellent “The Sound Of Silence”

I dedicate today’s post to the three major organisations who last week provided ample proof - not that I needed any - that in terms of customer care, the UK has slumped to new levels of ineptness and incompetence, and is now only slightly ahead of France. Gone apparently, are the days when the customer is King - now the customer is barely a pauper; short-term profit is the driver and ensuring that the customer experience is as impersonal, uncomfortable and as frustrating as possible, the primary objectives. 

Directors and Management often see customer relations as the affair of a ‘Complaints Department’ whilst they get on and run the business - which is a form of warfare carried out against the irritating habits of customers seeking fair treatment, a fair deal or equality of relationship.

Salespeople often see customers as an unruly, disobliging and dishonest source of commission.

Support staff accept that they are paid to (try to) cope (on a good day) with unreasonable, whinging, stupid, ungrateful customers who just will not be told.

Administrators see customers as dunces who must be forced to follow the rigid procedures developed for the convenience of the supplier (an endless nuisance to the customer).

Technical people often see customers as stick-in-the-mud know nothings to be loftily put in their place by the use of elitist techno-jargon.

Production people ignore customers entirely because otherwise they would get in the way of how they want to run the place.

Finance people treat customers not as people but as reference numbers with obligations required to fit processes.

Unkind comments? Not at your place? Great! But anti-attitudes like this abound right across the commercial spectrum. You transact business with your customers — not despite them! Customers pay the wages for everyone, not just the salesforce.

There is always a penalty for poor customer relations. It plays its way out over the weeks and months ahead when people - and those they influence - simply avoid your firm, as those three organisations who abused my trust last week, are about to find out. 

Today’s News:  

 On March 27th, London Heathrow Terminal 5 will welcome the first British Airways passengers through its doors. It’s the culmination of an amazing project that began with one thought – to make connecting the world simple and pleasurable again. The result is a seamless and upgraded airport experience unlike any other in the world, and one that’s exclusively for British Airways passengers.

In their own words:

“At Terminal 5 we’re putting the joy back into air travel, especially for you, the British Airways traveller.
That doesn’t just mean smoother check-in, fewer queues and less waiting around. It doesn’t just mean more time for fun things like eating, shopping or relaxing. Nor does it just mean an inspiring, state-of-the-art building that could be a destination in itself.

It means giving you an outstanding experience from the moment you check in online to the moment you step through the door at your journey’s end.” 

Amazing experiences begin at Terminal 5:

Here are a few of the Terminal 5 features that make them justifiably proud:

• The £4.3 billion building is so light, modern and spacious that it’s hard to believe it’s an airport terminal at all

• Terminal 5 offers seamless check-in, with 96 Check-in Kiosks designed to eliminate queuing

• The floor to ceiling windows give outstanding views of the runways, aircraft, countryside and even Windsor Castle and Wembley Stadium

• There will be huge improvements in punctuality and baggage now that they’ve brought nearly all British Airways flights together in one terminal

• The state-of-the-art baggage system has been designed specifically for Terminal 5 using proven technology already in use at a number of global airports

• They’ve got the largest, and possibly the most luxurious, airline lounge complex in the world, large enough to cater for 2,500 passengers

• Harrods, Coach and Prada as well as great British names such as Paul Smith, Ted Baker and Reiss are all opening stores at Terminal 5

In a word - incredible!

My thanks to my friend Claudio - known as the “BA Terminal 5 Insider” for keeping me fully updated these past few months and for sharing a raft of information and images, which has allowed me to feel part of this exciting initiative. Claudio works for one of the top PR agencies in the world, known simply as Agency.com - they have certainly done an amazing job

Here are some links, so that you can have an early preview yourself:

Take a look round T5 

Wine Galleries

Tech Room

Concorde Bar

Kitchens

Cinema

You can also see an excellent interview with a very proud Willy Walsh - CEO of British Airways - here 

What we can say for certain is that BA understand that when it comes to customer service - everyone must play a part.

Tomorrow: On the JF Guest Author Spot - Tibor Shanto makes a debut appearance.

Directors and Management often see customer relations as the affair of a ‘Complaints Department’ whilst they get on and run the business – which is a form of warfare carried out against the irritating habits of customers seeking fair treatment, a fair deal or equality of relationship.

Salespeople often see customers as an unruly, disobliging and dishonest source of commission.

Support staff accept that they are paid to (try to) cope (on a good day) with unreasonable, whinging, stupid, ungrateful customers who just won’t be told. Administrators see customers as dunces who must be forced to follow the rigid procedures developed for the convenience of the supplier (an endless nuisance to the customer).

Technical people often see customers as stick-in-the-mud know nothings to be loftily put in their place by the use of elitist techno-jargon.

Production people ignore customers entirely because otherwise they would get in the way of how they want to run the place.

Finance people treat customers not as people but as reference numbers with obligations required to fit processes.

Unkind comments? Not at your place? Great! But anti-attitudes like this abound all over the commercial spectrum. You do business with your customers – not despite them! Customers pay the wages for everyone, not just the salesforce.

Personally, I think that all my people truly believe in good customer relations, if only because of the many compliments I receive. But I could be wrong! There is always a penalty for poor customer relations. It plays its way out over the weeks and months ahead when people – and those they influence – simply avoid your firm.

Why Try?

“Why should I be nice to someone who slags me off?” says one of your people. Well, that’s not an unreasonable question. Let’s try to understand the psychology of people who grumble – or worse, complain.

Believe it, complaining for most people, apart from the psychotic few, is a very stressful thing to do. Apart from whether the problem itself has made the customer angry, having to pump oneself up enough emotionally to have this ‘confrontation’ makes people short tempered. So people dealing with customers must expect them to be upset and angry.

Let’s analyse the language:

The customer says “That’s not good enough!” quite probably with some expletives thrown in for good measure.

For a start, the person handling the call probably didn’t cause the problem themselves, someone else did. Why take stick for that? Well, because that person is part of the team and happens to be the one taking the call. Feeling part of a customer sensitive team is a vital element in wanting to and being able to deliver sensitive, constructive customer relations but, by ‘team’ I don’t just mean the Customer Service Department. I mean the whole organisation.

Too many organisations operate Customer Support (you can see the language varies a bit) as a quite separate entity from the operations of the business. They are in their own sterile ‘bubble’ charged with keeping customers from ever speaking to the people in Operations who have normally caused the problem in the first place. That’s not how it is supposed to work – but it is convenient for the business that doesn’t want to deliver good customer relations, it just wants to shut customers up for as low a cost as possible.

Empowerment Pays:

The problems facing staff members are: knowing that no-one wants to hear what the problem was; that they can make no changes in the way the organisation operates; that they cannot set out to improve things for future customers so that particular problem will never recur. They simply try to ‘win’ discussions with customers and give them anodyne replies in accordance with ‘the rules’. Is it any surprise that those people simply don’t believe in customer relations? They do what they are told to do and get paid for that. Think of your own experiences. Think of how often you’ve been ‘put in your place’ by someone. Think how you detest being forced to talk to ‘Customer Service’ because you expect not to have the problem resolved.

Tech. Support Is ‘Customer Service’ Too:

The ideal model of a Technical Support Department is that the phone never rings. The trouble is that most people who operate one expect the phone to ring in proportion to the number of customers. The missing bit is that if the people on Help Desk have no involvement in making changes, then they cannot prevent the same problem recurring fifty times a day. The basic rule should be that the moment you deal with a customer problem, you put in place changes so that problem will not recur for that reason. Staff with power are highly motivated to be helpful. People without power hate having to deal with cranky customers and simply try to fob them off.

Can You Believe It?

As just one illustration, I once purchased an accounts package from a high profile, very well known software company. Amongst many problems was the fact that occasionally if you added up the pence charged for the various items on an invoice, the total would be different from the total shown at the bottom. What! Unthinkable on an invoice. Together with other more peculiar problems, that system cost us hours and days of lost time; we had staff in tears; we pleaded for help (but we could only talk to Customer Support who couldn’t help). It took about a year for the supplier to put the problems right. It took about two months to get a reply from the Chairman’s office. No, he was far too august to reply himself – but a Director did. Eventually, we got back exactly what we had paid for the package. Not a penny in compensation; not a tear shed. Now tell me how that company views customer relations?

Every Customer Is A Consultant:

The drive for continuous improvement will come from your customers – if you let it and if people’s arrogance doesn’t get in the way. Believe me, the customer is an expert in your business. They may not know how to make grommets, or how to merchandise goods, or how to write software – but they do know what they want from you. “As customers, we don’t want it your way; we want it the way that suits us”. “And we will tell you, if you want to listen and providing we see you want to do something about it”. One of the problems with people in many companies is that they just don’t want to be told, especially by a customer. No-one’s going to get anywhere with customer relations until they recognise that customers are valued assets, not dumb milk cows for money.

What’s The Lesson?

Customer relations is a strategic understanding, not a departmental name. Most people in most companies don’t think about their responsibility for developing good customer relations, because they simply don’t see it as their job. The problem is the good old whip and trident management style which works fine in a seller’s market and costs a small fortune most of the time. The trouble is that you can’t see the cost from a simple item on the P & L. Most of it is hidden in the cost of losing business and winning new business. Existing customers cost much less to keep than new customers cost to win.

And you? Can you truthfully say in your heart of hearts that you believe in the value and need for everyone in the business to help to build good customer relations? If not, then watch out for the competitor who will figure that out first or the person competing for your job who knows that is how it’s done. Customer relations is that serious.

Today’s News: Sadly, despite all the hype, my new site The JF Consultancy will not launch next Tuesday as planned: We are almost ready to go but our graphics expert, Bill Jeckells is poorly, so we have some cosmetic work still to do. Bill, we wish you a speedy recovery.

We anticipate needing an additional week, but I will keep you updated - the wait will be worth it, I promise

Tomorrow: A w/e off! Yep, really, that doesn’t happen too often - wherever you are, have a great weekend and I will be back here on Monday - JF   

Much of our communication is unconscious. We don’t actively decide what quality of eye contact we should use or consider the impact of our words on other people and the consequences.

When you watch someone’s facial expression change or sense a shift in mood it becomes obvious that there has been a deep reaction to the communication ‘stimuli.

The study of such responses is called Transactional Analysis, developed by Dr. Eric Berne, an American psychiatrist in the 1950s.

Transactional Analysis:

• Is an analytical thinking process

• Provides insight

• Gives control over actions and reactions

Knowing the basics about Transactional Analysis will give you a better understanding of why people communicate in a certain way. For example, why they feel the need to be aggressive or manipulative to get their point across when they are unhappy about something.

A child who has had to shout to make his parents listen to him will often take this communication pattern into adult life. He will shout at you because he is conditioned to think you won’t listen either.

It will also help you choose a more appropriate style of communication with which to respond.

Ego States:

Berne became aware that within each individual there exists three personalities or ego states which have their own ways of communicating and behaving. He also discovered that we shift from one state to another subconsciously. These states are not ‘roles’ but psychological realities which are activated by feelings.

He identified them as Parent, Adult and Child ego states. This is why Transactional Analysis is sometimes called PAC communication.

These personalities develop in the first few years of life and will be shaped according to background, experiences and upbringing.

Parent:

Imagine a tape recorder being switched on at birth and all thoughts, feelings, events and behaviours recorded in an unedited version.

The Parent ego state develops by recording all the ‘rules and laws’ of the household, characterised by ‘No’, ‘Don’t, frowning, finger wagging, routines, attitudes, value laden standards, prejudices, criticisms.

There is also another side to the Parent: the nurturing, caring, gentle controlling side.

In later life memories of these behaviours are triggered and parent responses copied.

Think of all the behaviours, body language, facial expressions, attitudes you have taken from your parent (substitute). Has anyone said, ‘You’re just like your mother’ or ‘Like father, like son?”

Child:

At the same time another recording is being made which is the internalising of the response to the Parent behaviours (how the Child feels about them). Cross looks, sharp words, a smack, neglect, sarcasm, can only be recorded as feelings in the child.

Negative Parent Behaviours = Negative Response = Low Self Esteem.

Soon the child either learns to seek parent approval, giving up pleasurable exploration of the world and becoming the Adapted Child, or rebels. The child also stores much positive data: fun times, discovery, creativity, and carefree activity, e.g. puddle jumping. Think of behaviours you still use from your childhood when bad feelings are triggered; door slamming, sulking, temper tantrums, not speaking. Our child state can take over inappropriately if we let it. Think about the complainers you have dealt with recently. Have you noticed similar behaviours?

Adult:

Once a child learns to move about he or she acquires some independence and control. He/she finds out things independently and collects data and learns to work out his/her own understanding of life. This is the Adult ego state beginning to form.

The Adult is described as a data-processing computer which makes decisions based on logic and factual information and is not influenced by feelings. It analyses the data in the Parent and accepts it or rejects it, and considers the feelings stirred in the Child for appropriateness. It carries out probability estimating, e.g. in a complaint situation ‘How likely is it that I am going to get this sorted out?’.

It can also devise solutions, develop contingency plans and accept the inevitable with equanimity.

Parent Complainer:

How are these ego states activated when people are dissatisfied customers?

Customers who complain from their Parent draw on criticism, challenging attitudes and an authoritative position (from their personal database). They will use a range of verbal, vocal and non-verbal behaviours.

Their non-verbal and verbal indicators will be:

• Head shaking, arms folded, tongue clicking

• “I paid good money for this”

• “It’s a disgrace”

• “I’m going to report you to …”

They approach the situation from a position of “How dare they …’

Child Complainer:

The Child is activated when strong feelings of being ignored, cheated or controlled are triggered. In this ego state we often feel either powerless or rebellious.

Many of the clues to show someone is operating from their Child include: temper tantrums, sulking, nail-biting, no eye contact, nervous laughter, throat clearing.

Indicators will be:

• “It’s not fair”

• “Why should I?”

• “I’m not moving from here until I get a replacement”

Adult Complainer:

The Adult will be activated once the attitudes and feelings of the Parent and Child have been analysed for their usefulness and put aside.

It will ask questions, make comparisons, stay objective, not be opinionated, and seek out the facts. It does not send subliminal messages, has no hidden agenda and does not play mind games.

The customer who complains from the Adult will acknowledge feelings of anger but has not allowed them to take over. He/she wants a practical solution to the problem and not to indulge in psychological warfare in order to feel better (i.e. a replay of a childhood battle)

Ego States – Summary:

When you are in your Parent ego state you use words, behaviours and actions of your parent (substitute). - we all carry our Parent inside.

When your Child is showing you are replaying behaviours and reactions you would have used as a small child. - our Child can always be activated under certain conditions.

Operating from your Adult means you have made an objective, logical, autonomous appraisal of the situation. - we are all capable of objectivity.

We don’t have to be the victims of our childhood behaviour patterns. We have a choice. In business communication we can only safely operate from our Adult.

Today’s News: We are all continuing to develop the Top Sales Experts site and it really is the only place to visit if you are seeking world class sales coaching, training, consultancy and sales process tools - be sure to bookmark the site for future reference.

Tomorrow: We are working on the new JF Consultancy site all weekend. but I do post every Sunday on the BlogZone Wherever you are have a great w/e and I will be back here on Monday with you - JF

The JF Guest Author Spot 

24/7 Customer Centric by Wally Adamchik

We live in a customer centric society. Consumers don’t just go shopping anymore; they want to be comforted by a brand. Been to a ball game lately? These are experiences that have a sporting event as the backdrop. People in our society seek an ever increasing degree of satisfaction whenever they purchase something. Ultimately, this manifests itself in wanting the highest possible quality at the lowest possible price. How did we get here? Who is to blame for this mentality?

I offer two companies. First, is Taco Bell. In the mid-1980s they did something radically different. They introduced the value menu in fast food. This was like getting a pay raise. All of a sudden you could get a taco for 99 cents – and a full meal for not much more than that. This move started a price war that the fast food industry continues to fight today. To confirm that the fight is still on, what is the first thing you look for when you walk into a fast food restaurant? For the majority of readers, it is the value menu - often featuring a 99 cent price point.

An interesting, and often overlooked point, about this shift in that industry is that Taco Bell made dramatic operational changes to their system to support the introduction of the value menu. They moved some of the food preparation out of individual stores and into central commissary kitchens. They also began using other pre-prepared items. This lowered their cost structure enabling them to charge less. In this case, they enjoyed a true competitive advantage. Other chains were forced to mirror pricing but were slow to introduce an updated operational model.

The other firm I blame is Fed Ex. Before FedEx if you wanted to send a letter from New York to Atlanta, or anywhere else in America, let alone the world, it would easily take 3 – 5 days. With the introduction of FedEx, we could send a letter around the world with the reasonable expectation that it would get there overnight. Today we still send material cross-town, via Memphis, to make sure it gets there overnight.

Still other changes have made the consumer more demanding. The final push to this customer centric society is the internet and our new ability to access information related. If you want to know where your package is, how much your balance is, or what your car insurance may cost, all you have to do is get online and after a few clicks, you have the information you need. Don’t forget the ever present Wal-Mart and the impact that is having on consumer expectations. Some reports indicate that over 60% of Americans will shop in a Wal-Mart in any given month.

All these changes mean one thing – your customer is more demanding than ever. Often business to business sellers will argue that the person buying from them isn’t using their own money so they don’t really think this way. How else are they to feel? If most other purchases in their life are met with superior customer service and value, you can expect that they have the same expectation of you. Truly sophisticated buyers may in fact know your business model and the attendant challenges with delivering superior service, but that does not mean they don’t shop at Nordstrom or Wal-Mart and have a standard they would like to see all buying experiences attain. 

So, what have you done lately to make sure you are delivering the experience that your customer truly wants? Notice I didn’t say to deliver what they expect; their expectations may not be very high. Do you know what they truly want? On time and on budget is not what they want – they expect that, it is what you do for a living. Imagine you are purchasing a brand new automobile. You have waited six weeks for this baby to show up at the dealer and you are truly excited about the prospect of picking up your new machine. The day you are to pick it up, you took the day off to polish the floor of your garage and you drive your old trade-in to the dealer. As you get out of the old clunker, the salesman greets you with a genuine warm welcoming smile and addresses you by your name. You honestly feel welcome as your old car silently disappears from the picture. The salesman is beaming as he congratulates you on your purchase and invites you to walk with him. As he rounds the corner to the new vehicle delivery room, he stops and looks you right in the eye and with total seriousness he says, “You are going to love this car. We went all out for you. In fact, we even put tires on it for you!”

Are you dazzled? Probably not. Don’t you expect the tires when you buy the car? What does your client expect when they buy from you? Are you delivering? Even worse, what do they not expect and are you delivering that? All too often we mistake the satisfied customer, the one who doesn’t complain, as the loyal customer. They may just be waiting for the next viable vendor to show up. You must ask how you are doing. And you must ask in many ways; surveys, follow-up calls, face-to-face and what ever else is appropriate. Additionally, everyone in your firm must be able to ask – and that takes some training but the payback is in the form of increased customer retention because you show you care. This retention generally shows up in market share and as profits.

The changes in customer buying practices over the past decade are permanent. Disregarding this new reality is a strategy for business failure. As a consumer you are demanding and have expectations. The people who consume what you sell are demanding and have expectations to. Do you know what they are? Ask them.  24/7, It is all about them.

  As an Officer of Marines, Wally Adamchik deployed throughout the world in training, peace-keeping, and combat operations. First, in a tank battalion and then, as the pilot of AH-1W Super Cobra attack helicopters. Always seeking a new challenge, Wally entered the hyper-competitive private sector. He was recognized for superior performance and award-winning leadership at two national restaurant companies. At the same time he earned his Master of Business Administration from the University of North Carolina at Chapel Hill. He is the President of FireStarter Speaking and Consulting and serves today as a consultant, speaker, and author. His new book, “NO YELLING-The Nine Secrets of Marine Corps Leadership” is getting rave reviews. www.firestarterspeaking.com

Today’s News: My good buddy Clayton(Salesopedia)Shold likened me to Mick Jagger on his blog this week- you can read his commentary here

 I would like to re-introduce you to the excellent work of my Texan friend, Paul McCord: I posted one of his articles a few weeks ago in two parts and at the moment, I am reviewing a “galley” copy of his next book. Paul is a sales giant and a very welcome addition to the Top Sales Experts team. You can read more about him here.

Tomorrow:”How To Uncover Your Prospect’s Needs Painlessly”

It’s a mistake to think that because a customer has expressed dissatisfaction with your product or service they will not come back to you.

They won’t return if you handle the situation badly.

However, some of your most vociferous complainers could become your most loyal customers, because you handled the situation well and treated them with respect.

This means recognising some essential traits:

• Customers want to be respected
• They want attention
• They want to be appreciated and recognised
• Most of all they want to be understood

Losing Customers:

Why do businesses lose customers?

A survey with which you may be familiar, asked customers why they changed supplier/vendor.

Here are the results:

• Developed a good relationship with another supplier 5%
• Less expensive products elsewhere 9%
• Unhappy with service/product 18%
• Because of the poor attitude of the supplier 68%

Tomorrow on The JF Guest Spot Jaques Werth, senior statesman and good egg - you may not agree with all of his opinions but he is passionate about selling and selling techniques.

Customers may well want to tell you they’re unhappy about something but they either:

•  Feel uncomfortable about doing so
•  Don’t know how to
•  Don’t have time; it’s easier to let it go

So, give them a choice of mechanisms. For example:

•  Simple questionnaires with pre-paid postage
•  Telephone help line
•  Customer service points
•  Exit surveys – face to face questions
•  Comment cards

Let them know it’s not a waste of time!

What are you going to do with the information? File it away? Shred it for next year’s Christmas decorations?

One company I know maintains a whiteboard in the reception listing the key comments/complaints made by customers, with a note of the action taken, or to be taken and by whom. Customers really feel they are part of the product and service improvement team.

Customers need to know what’s in it for them if they do complain.

Respond quickly to complaints. If you give a number to ring, make sure someone is always there to answer the phone. Reply within two days if that’s what you promised to do.

Have an “escalation procedure” which allows for the more serious complaints to be dealt with by a senior member of staff. Directors need to be accessible, hiding away simply creates suspicion.

Summary:

Unfortunately, when compared over time, the customers’ interest levels increase while the vendors’ interest levels tend to decrease. This creates a “relationship gap” and is due entirely to complacency.

Fact:

It costs seven times as much to locate and sell to a new customer as it does to an existing one. That reason alone, should act as sufficient incentive for us to attempt to build brick walls around the relationship in order to deter predatory competitors – and there are plenty of them out there.

We must continually strive to earn the right to receive our customers business and one significant stride in that direction, is to implement an effective customer care programme.

The JF Guest Author Spot 

“THE PITFALLS OF CUSTOMER SERVICE”
By Andrea Nierenberg  

Recently I was on a business trip, and when I came out of my hotel room to get into my car, there was a small card on my windshield that read: “Thanks for staying with us. We’ve cleaned your windshield to help your day start off right. We hope to see you again soon!” They certainly will. While it was not a five-star hotel, this simple little act made a five-star impression, because the hotel branded in my mind the word “care,” which equals excellent customer service.

Many businesses work to make such an impression, yet fail. Why? Because somewhere along the way they were unable to keep up the momentum, and fell into a pit of mediocrity. Such a pit is created when the simplest acts of customer service are either not reinforced or are forgotten.

Poor service is the number one reason American companies lose business. Research conducted by the American Management Association (AMA) has shown that 68% of clients stop doing business with a company because of poor service. Another AMA study revealed that 90% of clients who ceased doing business with a company made no attempt to tell the firm why. What is even worse is that the average dissatisfied customer tells up to ten others of his or her dissatisfaction, yet the average satisfied client tells only five people. Tom Peters says that it takes $10 of new business to replace $1 of lost business.

To avoid the pitfalls of customer service, a company can follow a five step process:

• Help staff clearly understand that little mistakes can lead to major negative consequences.
• Teach employees to be sensitive to the customer’s time frame.
• Show how complacency and assumptions about customers are detrimental.
• Improve the protocol of business relationships.
• Use personal notes to enhance customer relationships.

HOW TO ILLUSTRATE THE EFFECTS OF POOR CUSTOMER SERVICE

Our staff may think that poor customer service, now and then, will not negatively impact business. The following illustration shows that for some customers, one mistake with a client could too many.

A woman was once mistreated by a salesperson in a grocery store. Since she had been a customer for three years, it would appear that this incident should not have affected her loyalty to the store. However, this one act poor customer service caused her to switch stores.

Twelve years later, she returned to the original store and decided to tell the owner what happened. He listened intently, apologized, and thanked her for coming back, then went right over to his calculator. He estimated that if she had spent only $25.00 a week for twelve years, he could have possibly lost about $15,600. If she had been happy, she probably would have referred others. The owner also estimated that if this woman referred five other people to his store, at the same buying level, they could have spent as much as $75,000.

The above illustration spells out that one seemingly minor mistake can have negative consequences. The reality is that customers only see the attitude that is being presented and whether a salesperson rushes a customer, is not respectful, or simply allows “having a bad” impact how they relate to a customer, it means bad service to customers.

One way to prevent mistakes, like the one above, is by making great customer service a priority at all levels. Unfortunately, for many companies this is not the case. Information gathered by the Service Management Research Group shows that 92% of CEOs say that the quality of customer service is the number one reason businesses succeed. However, when branch managers were given the same survey, they placed customer service below such priorities as short term financial results.

Leading by example is one of the best ways to help your staff get their priorities in line with the company’s. According to research conducted by The Nierenberg Group, 95% of sales employees said that better interpersonal communications would help motivate them to do a better job. Here are some tactics that you can use with your staff that will encourage better communications with customers:

• Openness and friendliness - management can show staff members how to be professional and personable at the same time.
• Offer assistance - managers should work towards being more proactive with their staff. When employees seem to be unhappy, it is important for managers to recognize that early, before that unhappiness is shared with customers.
• Give 110% automatically - While employees should expect that their requests to management will be addressed in a timely and proper fashion, managers can go the extra mile by giving a fast response to employee concerns and offer additional help.

When you do the above, you can expect your staff to treat customers with greater respect. You will find them listening to customer requests more carefully, and, most importantly, you will see how employees will better handle interpersonal communications with customers.

You can further inspire your people when acknowledge them for following your leadership. This can be done by saying “thank you” in the following ways:

• Give them a personalized handwritten note on company stationary.
• Send a personalized e-mail or faxes, you can also send a copy of it to someone else in management.
• Give them a small gift like cookies or candy.

In order to ensure that staff members improve their attitudes, managers need to lead by example.

SETTING YOUR PEOPLE TO CUSTOMERS’ CLOCKS

Whose clock really counts? Most companies have had customers who do not respond in a timely fashion. A corporation’s attitude might be, “we have sales goals to achieve,” or, “We must get all the customer complaint letters off our desk right away.” So how can we move the customer service process forward without “pushing” the customer too hard?

When a customer does not call back after we have given him or her a great offer, it is critical that we do not badger the customer with demanding follow-up calls. These are the types of calls that try to disguise the real question, “I think it’s time we close the deal or resolve this issue.”, or, “What’s taking you so long?” Calls should never be harsh or impersonal because they can do more harm than good.

These types of calls can be avoided when earlier conversations includes a couple of questions, such as, “When do you need the product delivered by?” or, “When will you get back to me with the details of your complaint?” While attempting to move things forward, a company can become trapped by an internal deadline that will offend customers.

Another stumbling block for customers can be when we rush communications. This can occur when we hurrying off the phone or send correspondence that is not carefully written. It tells the customer that you are trying to get through the process in a cold and mechanical way. Even when we have long lists of customers to handle, it can take very little effort to develop a personalized approach.

Here are three ways to do it:

• Ask the customer how he or she wants the issue to be handled. Some people prefer that everything be done in writing, while others would rather receive a quick phone call letting them know that everything has been done. While your company might have good policies and procedures that must be followed, never lose sight of unique customer requests.
• Check on customers long after the problem. Many companies quickly process customer concerns. However, long-term follow-up is just as important. Encourage your people to mark their calendars for a month after the problem was resolved. Then have them call customers and do three things: 1.Thank them for their business; 2. ask them if everything is still going as they want it to; and 3. let them know that no issue is too small to be addressed.
• Put a preventative plan in place. Customers often take their business elsewhere because mistakes are repeated. While we might do our best to fix the problem each time, the customer may lose patience. If your shipment to the customer is going to be delayed again, call the customer in advance, let he or she know, and offer to use a faster service at your expense.

We must also remember that our customers may have co-workers, who we do not communicate with directly, who are also evaluating our service.

One way to address this issue is by building relationships with support staff or departments you come in contact with. These are the people who are familiar with your relationship to your client. Here are some examples to of people to consider:

• The assistant. If your main contact has an assistant, get to know that person very well. A good assistant often has as much, or even more, information than the person with whom you work with. Call him or her up, have a casual conversation, and ask up front if he or she has any advice on the best way to interact with others in the office.
• The main receptionist. This person is usually seated at “information central.” He or she can help you solve problems when your client is away. This person might also provide you an insight into the company. You can learn what is the best time to make calls, or who else at the company can be potential customers. The way to finish this process is to send the receptionist a thank you note or a small gift that shows appreciation for his or her help.
• Accounts payable department. When possible, we need to separate our direct contact from his or her accounts payable department. Our direct contact is usually more interested in the details of what they are buying from us. Therefore, when we get to know accounts payable person, her or she can help us with the details related to purchase orders and payments schedules. This give us more time to focus on selling and customers service with our direct contact.

ASSUME = LOSE

Even customers we know “like the back of our hand” will change over time. Too often assumptions are made about how long-time customers will respond to us. Realize that anything that is living needs constant nourishment, regardless of how old it is. Many times companies stop nurturing customer relationships after they have matured.

As time goes by, the same level of service becomes less effective. The lure of competitors will encourage customers to reevaluate their loyalty to existing vendors or service providers. A question that needs to be asked is, “What is the incentive for customers to stay for five or ten years?”

National studies and data can tell us about customer attitudes, wants, and needs. However, these can never replace a personalized approach to keeping customers for the long run. Here are three things that can be done to personalize customer communications:

• Survey your customers when you do business in person or on the phone. Ask them if they would mind answering a few questions to help you better understand their needs. This provides a personal approach to surveying than that simply mailing out the forms and waiting for them to be returned.
• A personalized newsletter can also make long time customers feel special. One way to do this is by taking a company newsletter or brochure and adding a personal note on it.
• When a customer makes a complaint, you usually do everything possible to fix the problem. To make your response have an even more favorable impression on the customer, bring the complaint to someone at a higher level at your company. Then ask that person to contact the customer and offer their apology as well. It will tell your long-term customer that his or her business is appreciated.

When we first make promises and proposals to customers, we do everything we can to push away the competition. Unfortunately, sometimes we lose that enthusiasm with later proposals. We give them the same old “bells and whistles.” Our challenge now is to discover what we can give them that will continue to excite them and keep their interest. Here are some suggestions:

• Ask “dream” questions. After a period of time, you probably know what your customer needs. However, what is it that the customer dreams and hopes for? Inquire what it is that can be done for him or her that would exceed their expectations.
• Increase contact frequency. Sometimes our staff assumes that long time customers will always be there, even if we let an extensive period of time go by without calling. That is a bad assumption because that is just when a competitor will be knocking on our customer’s door. This means we need to find ways to stay in touch with more frequently. The challenge is to do it in such a way as not to become annoying. This might include: mailing a newspaper clipping of an article of interest, writing an E-mail that includes an inspiring quote, or remembering an anniversary or birthday with a card.

• Ask customers for advice. If our staff has done their homework, they should be experts in their field.

However, sometimes experts like to lecture instead of listen. Seeking a customer’s advice and carefully listening to it can improve relations because it is one way to elevate your customer’s ego. Encourage your people to do formal or informal surveys with clients. They can survey customers about trends they predict in the industry, or they can ask for advice about which trade or civic organizations are the best to be involved with.

IMPROVING PROTOCOL

Above all else, people want to be respected. They want respect for their position, they want respect for their thoughts and ideas, and they want respect from business contacts. There is a fine line between becoming “buddies” with a client and keeping a distance that appears cold and uncaring.

The first challenge is how our staff addresses customers, particularly new customers. The rule of thumb is to always address someone formally with a “Mr.” or “Ms.” until they give you permission to call them by their first names. It doesn’t matter whether it is the receptionist or CEO of a company. The impression your people make at any level can echo throughout the company.

Finding a decision maker often requires talking to several people. All along the way, we leave messages and a trail of conversations which lead to the right person. Some of those conversations may involve a “gate keeper” who has tried to keep us out.

In addition, we often have to “step around” or “go over” people in order to get to the right person. However, when that happens, there could be a consequence, because the people we go around may hold it against us. It is important that we and our staff remember to cover our tracks. Therefore, instruct your staff to quickly mend fences by apologizing to the people that they had to go around. It may be difficult, but in the long run, it will lead to better customer relations.

Improved protocol can also result from us reinforcing some basic customer service skills that can be easily forgotten. While many recent advances in customer service is technology-based, such as better data management, computer programs that reminds us to call people, and sophisticated direct mail, these can never replace interpersonal interactions with customers.

Here are some of the basic skills that require constant reinforcement:

• Have telephone sales and service people put a small mirror on their desk with the word “smile” above it as a way to remind them to have a cheerful attitude and to smile even on the phone.
• Encourage people to use plain English when dealing with new customers. Often people try to impress others with industry jargon, and the customers feel alienated.
• Ask people to write outlines of sales pitches and responses to customer service issues. This is not a telemarketing script, but a guideline to help people remember all the key points that must be addressed for each customer contact.
• Find non-threatening ways to quiz your staff on product or service knowledge. Sometimes our people remember only a limited number of the benefits we offer clients. A pop quiz now and then will encourage them to better know what they sell.

POWER-OF-THREE PERSONAL COMMUNICATIONS

If there’s one theme in the customer relationship management business it is to find ways to personally connect with each and every customer. One powerful way to do that is to use “the power of three.”

“The power of three” requires your staff to follow-up with three customers a day by writing a brief “thank you” note. The goal is to plant seeds to show customers how much you personally appreciate their business. Here are some good examples where personal notes work particularly well:

• ”The big problem.” This type of follow-up note requires a big “I’m sorry.” This would be the customer that ranted and raved even though your company made everything right.
• ”The win/win resolution.” If a customer has been very cooperative in solving a problem, a note of appreciation can be sent. It really expresses, “Thanks, you made my day by being patient.”
• ”Gone but not forgotten.” If we lose a customer, a follow-up note can be the best seed planted for a future reconciliation. It’s a sign of true strength when we can admit that the customer was right, that we were wrong, and that we will truly miss his or her business. However, this note should express the hope that you might be able to do business in the future.

The United States Postal Service tells us that only 4% of the mail is personalized. Therefore sending notes will put your company ahead of 96% of the competition.

Almost every customer service pitfall can be avoided by remembering four words:

• Dependability
• Efficiency
• Understanding
• Reassurance

When we discover the potential customer relations pitfalls, then we have the power to prevent them. It requires us to encourage our staff to keep their egos in check, and give the customers the respect they deserve and desire. And as time goes by, fewer and fewer traps will be in your company’s path.

 Andrea Nierenberg’s networking advice has been featured in The New York Times, The Wall Street Journal, and The Chicago Tribune. She is the author of “Nonstop Networking: How to Improve Your Life, Luck, and Career” (Capital Books). Ms. Nierenberg works with leading companies to improve interpersonal communications for management and staff. She offers keynote addresses and custom-designed programs on motivational techniques, networking tactics, and presentation skills.Visit Andrea’s site here

This week only:Win a signed copy of Andrea’s latest book - just simply leave me a comment with your networking tip, and I will enter you in the draw on Saturday - simple as that!

It is never easy to win new business, which is why we should nurture existing customers and try to minimise problems and inconvenience.

It’s a good idea to:

• Make regular visits or calls – spotting trouble early on can help prevent it
• Reply to calls/queries as soon as possible
• Talk to your customers – find out about them
• Keep them well informed
• Conduct regular reviews of your performance - see your service through their eyes

Ensure that the lifeblood keeps flowing through the veins of your business.

Solving Problems:

Few people are truly difficult. In any case, it is important to make a distinction between difficult people and difficult behaviour, which is often a result of non co-operation on your part.

• Focus on the problem (challenge?) not on them
• Show interest – bring out their likeable side
• Put yourself in their shoes – remember empathy?
• Be personal – use their name if that’s what they would like
• Appeal to their better nature. ‘As a parent of small children you…’
• Cultivate their goodwill

Saying Thank You:

Let your customers know you appreciate them. Find little ways to thank them for their custom, especially when they are not expecting it. This is a great way to attract compliments, especially after sorting out a difficult problem.

• A simple but sincere thank you card – personalised
• Gift vouchers
• Cards at Christmas or other appropriate festivals – Diwali, Hanukah, Eid
• VIP days for special events, launches, dinners
• Social gatherings for key clients

Loyalty cards are very popular now with many organisations. Discounts, bonus points, free samples, all help to make your business stand out.

Compliments & Comments:

Why do we find it difficult to accept compliments?

Is it because:-

• We don’t have enough faith or pride in our product?
• We think it’s probably a back-handed complaint?
• We don’t trust people?
• We don’t know how to react? (How about thank you?!)

Compliments tell us what we are doing right and give a boost to our morale. If we allow it, they bring us pleasure.

Some customers just mutter a comment because that’s how they are. They don’t really want you to take them up on it. (It’s a good idea though to take note of what they say and if appropriate ask, ‘Is everything okay?’)

That’s it, another week gone - in the immortal words: “I’m out of here” - the tension is mounting as the poll closes for “Best Leadership Blog 2007″ at midnight EST (6am Saturday BST)- you know that I am going to ask you for the very last time, have you voted? really? Last chance saloon - your blogger needs your vote here 

Thanks to you all, have a great weekend - JF