as I see it

The Healthcare Cure

The Drug War:

Wow what a misnomer....

A war that we have funded but never really acted upon.

First of all, I love the politicians that throw around marketing terms so that they can justify their money wasting ways while clueless.

So here are some facts:

It is NOT, the supply and demand that drives the DRUG TRAFFIC. We should have learned a lesson from the other period in our history where we tried to fight the same type of war...remember PROHIBITION ?
The "demand" has little to do with the supply. It is however, the PROFIT that lies with the supply in servicing the demand that matters. If the profit was to go away, the suppliers would go away...they really do not care about satisfying the demand, but satisfying the bank accounts.

Supply and Demand is a relationship that exists in LEGAL products, in illegal products, it is a RISK vs. REWARD concept that plays the major part.

Therefore, let's address the PROFIT....the "reward" part in RISK vs. REWARD
and the RISK for such profit.

The reason the profit is high, is simply because the product are being sold in the black market.
The price of alcohol went down and the quality went up drastically when it became legal....thus, eliminating some of the products which were sold as "alcohol" with harmful ingredients in the formula.

As it was during prohibition, violence and illegal activity flourished as the various groups fought to get a piece of the action and the users got caught in the middle. Should that reward go away, the gangs and underground groups would have to find other products, or should the RISK, become so high that the reward is no longer worth it, the same result would surface.

So here is my suggestion:

* a 3 part approach that needs to be SIMULTANEOUSLY implemented in order to work

1) All drugs should be decriminalized.
There should be a "personal consumption" guideline or "product allowance" for the individual.
Anyone caught with larger amounts from the above should received MUCH increased penalties.
We have to quit spending almost $50K per year to keep drug users in jail.
It is not a smart investment, nor do these people come out any better.

...and for middle class America. DON'T WORRY,
little Tommy and Little Susie will not start using drugs if they do not use them now.
Anyone who really wants to use drugs in today's environment, can find them.

2) Drugs should be licensed and regulated as alcohol is. They should also be sold in State stores, or State approved stores. This will keep the price and violence down (step 1 in reducing the gang participation).
At the same time, we should increase the monetary penalties for anyone buying and/or selling drugs OUTSIDE the legal venues.

we would all RISK $ 1 if we thought we could win $ 1,000,000..of course
but how many would risk $ 1,000,000 to win $ 1 ??...
RISK needs to be elevated
PROFIT (Rewards) must be reduced.

we need to reverse the risk vs. reward picture

3) From the profit of these sales and/or licenses, there should be a 3-way money division:

a) part should obviously go to running the store
b) part should go to education / prevention
c) part should go to rehabilitation.

There are too many people benefiting from the drug business...and not all of them are doing things illegally...
.....think about all of the people / agencies that have been getting BILLIONS of dollars to fight this so called war !

It is not in their interest for this to go away.

My question is simple....after all of this that we have been doing ...

HOW IS IT WORKING ?

The Educational System

The VOTES that do not count

Customer Service

Part I:

a)Components of Customer Service

b)Understanding the relationship. Customer Service vs. Target Market

c)Setting expectations..our own experiences.

d)Understanding the “function” of a business and the “goal” of a business.

Trying to define “good” Customer Service” is like trying to define “good” “Sex”. I was once told that it was better for people to think I was stupid than to open my mouth and prove it, so I will not try it to define it. My point is; however, that everyone’s definition will vary as both subjects are highly personal in nature. In the series of articles to follow, I will try to clarify the concept and attempt to guide you through what is an individual process by pointing out “common” principles and guidelines.

Customer Service is very illusive because of its components:

Individual experiences, common sense and common courtesy, the last two which seem to be in very short supply at times.

I will illustrate the first one. A few years ago, I asked one of my classes to go out and find an example of a gasoline service station, or similar businesses, that were providing good, or unusual customer service. I had a couple of students bring back the example of the gasoline station that was cleaning their windshield (Mobil I think). it was at this point that I knew that when I used the term “good customer service” what I said and what they heard were two totally different things. You see, I am old enough to remember when gasoline stations would check my oil, fill up my tank, vacuum my car, clean my windshield and give me a cup of coffee. It was right then that I knew I had to be precise in the definition of customer service and the directions for its implementation. As for “common sense” and common courtesy”, I will not even try.

Before a company even begins to address customer service, it should be specific about its Target Market, as each has its own level of expectations. While shopping with my girlfriend and her friend a few years back, and waiting “forever” outside the ladies bathroom for her to come out of the Neiman Marcus bathroom, this concept came to light. My girlfriend and her friend came out bragging about the vanity, the attendant, the free perfume, the comfortable sofa, etc. Then we proceeded to go to Wal-Mart and as my luck would have it, they had to use the restroom again. This time they came out bragging again, but just about the fact that the bathroom was clean and had toilet paper. How can both restrooms earn a good grade?. It was simple, their “level of expectancy” changed. This is my first point when developing a customer service strategy....one must match the “level of expectancy of the target market with the customer service level to be provided. Not all customer service is created equal.

For years I was frustrated in trying to put into words the conflict of rude, business-like, penny-pinching attitude of some companies’ customer service and customer service as it should be. Then I came across a video tape that did a great job of expressing such (Phil Wexler’s “Selling with Service”). Phil Wexler asked “what is the function of a business? I thought about it and the words “to make money” kept coming up, but it did not feel right...there had to be more. It then became clear to me when Mr. Wexler separated two concepts: the FUNCTION of a business and the GOAL of a business.

Let’s define each and look and the consequences of misplaced emphasis.

The FUNCTION of a business, and therefore, the function of each and every employee in that business, should be to acquire and maintain customers while the GOAL of a business is to make money. FUNCTION is # 1.

What happens when we get those two backwards?

When CUSTOMERS are placed as the most important factor:

a) the decisions and policies are aimed at satisfying the customer

b) the employees become a servant of the customer first, the company second.

c) decisions and policies are made from a marketing point of view.

d) policies are usually made by an individual who has come up through the ranks serving customers or the owner who had built the business and appreciates the customer.

When the COMPANY is placed as the most important factor:

a) the decisions and policies are aimed at satisfying the company.

b) the employees become “police” (rule enforcers) of the company first and serving the customer “maybe”.

c) decisions and policies are made from an operational point of view and do not serve the customer.

d) policies are usually made by an attorney, or an accountant and serves only, or mostly, the company.

Is it worth to focus on the customer? You bet.

In the next part of this series, we will show the math and expense of “loosing a customer” and the profit in “ keeping a customer”. If you are still thinking only of profits and the income statement first, I’ll leave you with this thought:

What if the income statement could show “missed sales”, or “lost customers”?

How would that affect you profit margin ?

Part II

In the last issue we discussed the concept of “function vs. goal” of a business and their related perspectives and actions.

In the section we will identify: Customer Service Strategies and levels. These can be described in many ways, but I choose a visual format introduced by Lynn Berry from Texas A & M University, with my own interpretation as I perceive his words.

Mr. Berry sees the picture as a series of 4 circles with four layers as described in the diagram below. This concept is also used by Lisa Ford in some of her series. You may be acquainted with her, as some of her books are offered by the various industry organizations.

If will use the banking industry as an example.

In the GENERIC layer, using our example, would be described as:

A financial / banking institution.

This layer is pretty much stable and non-changing, unless the company changes.

The next layer is the EXPECTED layer. In the EXPECTED layer we describe what’s normally and customary for an industry, usually as seen through the customer.

In this example, the customer would reasonably expect to be able to have access to savings accounts, checking accounts, daily business hours, cashier checks, money orders, drive-through facilities, etc.

This layer is not stable and “changing” in nature, its source of input is the next layer, the AUGMENTED layer.

The AUGMENTED layer is the layer where new ideas are implemented and where a business can set itself apart from competitors. A bank may offer calculators, an area in which to do personal business, free coffee and doughnuts, free fax machine, 50%off sale on money, etc. O.K. I am kidding on the sale of money, but you get the idea.

WARNING, if the idea introduced in the augmented layer is successful, it will not only become part of your customers’ EXPECTED layer, but may also be “borrowed” by you competitors and become part of their, or the industry’s expected layer leaving you to think of new ways to set yourself apart. This layer is /should be forever changing.

Unfortunately, most businesses compete in the GENERIC and EXPECTED layers only; therefore, they compete primarily on “price”, not “services”. If you want to be different, compete in the augmented layer. The AUGMENTED layer should be your focus, along with it’s source of input, the POTENTIAL layer.

The next layer feeds to the augmented layer and we’ll call it POTENTIAL. It entertains that which has not been yet implemented, or even thought-of . Here is where new ideas are introduced and evaluated. If they are feasible, they will be put in place and become part of the AUGMENTED layer. If successful, maybe even down to your, or the industry’s EXPECTED layer, so Always keep ideas in the POTENTIAL pipeline.

“SET IT AND FORGET IT” does not work

Why do so few businesses implement services in the AUGMENTED area and choose to only compete in “price”?

There are two main reasons: A changing and developing customer service strategy takes time, effort and also takes an investment of “present” money for “future “ benefits”. It is easier and faster to reduce price than to “point out the features and sell the benefits of a better product”.

In addition, most businesses are run and controlled by accountants and lawyers and are no longer run by marketing people who understand the customer by dealing with their needs and wants. Most of these people only care about “short term” profits, not long term growth. after all, they may not even be with the company in the future and would be cashing-in their stocks/options at the time of their departure, they want the profits and recognition NOW. I know, I am a cynic, but it is usually true. However, in their defense, it is not only the fault of the two aforementioned professions, but also a result of our own actions and demands as “stockholders”.

I always say jokingly that perhaps the income statement should begin with a line called “business missed” or “customers lost”. We would then have a “measurable” item. Unfortunately the failure of such items to exist and its inability to be measured accurately, fails to provide a measurable item on which the accountants and lawyers can justify expenditures. Don’t get me wrong, accountants and lawyers are essential and critical to all businesses, but they should not have omnipotent power in making marketing and customer service decisions, as they tend to make them based on “cost” and not “potential revenues”.

Don’t believe me? Check the college curriculums and see how many offer customer service and marketing courses showing the benefits of each for accountants and lawyers. If they do, how much? Yet, we allow them to act as experts in these fields. The problem is that customer service programs cost money, take effort and time “today” to provide revenues in the future...with no guarantees.

So, where and how do you choose to compete ?

Part III

By now we hope that you’ve decided to compete on service, convenience, quality and price, but not just on “price”

In this section we’ll address a couple of “food for thought” customer service issues which should help you to compete.

1) Whose job is it anyway.

2) Frontline Customer Service.

3) Creating a positive experience. Using LAGNIAPPE

4) What do customers value?

Customer Service...

Whose job is it anyway ?

Customer service starts at the top and it is everyone’s job...a philosophy, not a department. It takes effort to go out of one’s way to take care of the customer. After all, most of us, if not in the customer service department, are busy doing other things when customer service issues come up. The natural inclination is to take the easy way out. Take for instance, a retail store. A customer asks someone for directions, and more often than not, they turn around and “point” to the area where merchandise about which the customer inquired is located, when they should be “taking the customer to the product”, not pointing....but it takes effort. Nothing should come before servicing the customer and collecting the money. How many times have you seen employees doing paperwork on a sales floor while customers are being ignored, or check-out lines are growing.

Paperwork is important, but it does not pay the bills. .

As we used to say “sometimes when you are up to your ______ in alligators, it is hard to remember that the whole purpose was to drain the swamp”

Keep your eyes on the target. Keep focused.

Frontline customer service:

Whether we like it or not, the frontline service providers ARE THE COMPANY.

If a customer has a pleasant experience with the frontline employee...the company is seeing as a good company. If the experience with the frontline provider is not pleasant...the company is not a good company. It is that simple.

Unfortunately, most companies allow their image and reputation to rest on employees who have rarely received proper training and who are usually the lowest paid individuals in the organization. A company who will usually spend thousands, maybe millions, of dollars to get customers to their location only to then turn them over to deal with improperly trained, poorly paid individuals who have not been given the authority with which to take care of the customer. Does this make sense ?

If customers are important, a thorough Customer Service Training Program must be in place, as well as, consistent, on-going training meetings and sessions....not unlike what a company would create for the “sales department”.

Perhaps we could take a page out of Embassy Suites Hotels, who have a wonderful policy where the frontline providers are empowered with authority to take care of the customer. By the way, this policy was implemented, as I understand it, against the advise of accountants who thought the “world would be given away” by these non-financial people. How could they possibly make correct choices?

LAGNIAPPE:

“Going The Extra Mile”, “Give the customer more in value than what they give you in money”, we have heard these concepts before. In Louisiana we call it LAGNIAPPE. To give someone a little extra, a little something unexpected.

When it comes to customer care, 99% is an F.

It has been said that if the customer has not been 100% satisfied, we have failed in our job. I go farther, if we have not given the customer more than they expected, we have not created “a positive shopping experience” and therefore, not done our job.

When we do a good job, we get repeated business.

When we create a “positive shopping experience”, customers return and bring their friends.

....which is better ? what should our goal be ?

Unfortunately, no matter how much we try, we will not succeed with every customer, every time. Sometimes a customer will become angry and / or unsatisfied. It may have to do with something we have done, something we have not done, or even nothing to do with us at all, but it is our job to take care of the customer.

So, what does the customer value?

While many surveys have found many items an areas of expected service by customers, the following items seem to be the most critical ones and always at the top of the list.

These seem to always be at the top of the list:

1)Reliability

2)Responsiveness

3)Assurance

4)Empathy

5)Tangibles

If these items are the ones most valued by customers, conversely, we can say that the absence of these can contribute to an unpleasant shopping experience.

In the next issue, we will take a closer look at these and will start to address “why customers complaint” and “handling customer issues”.

Part IV

By now we hope that you’ve decided to compete on service, convenience, quality and price, but not just on “price”

In this section we’ll address a couple of “food for thought” customer service issues which should help you to compete.

1) Whose job is it anyway.

2) Frontline Customer Service.

3) Creating a positive experience. Using LAGNIAPPE

4) What do customers value?

Customer Service...Whose job is it anyway ?

Paperwork is important, but it does not pay the bills. .

As we used to say “sometimes when you are up to your ______ in alligators, it is hard to remember that the whole purpose was to drain the swamp”

Keep your eyes on the target. Keep focused.

Frontline customer service:

Whether we like it or not, the frontline service providers ARE THE COMPANY.

Does this make sense ?

LAGNIAPPE:

When it comes to customer care, 99% is an F.

When we do a good job, we get repeated business.

When we create a “positive shopping experience”, customers return and bring their friends.

....which is better ? what should our goal be ?

So, what does the customer value?

While many surveys have found many items an areas of expected service by customers, the following items to be the most critical ones as perceived by the customers :

These seem to always be at the top of the list:

1)Reliability(do what you said you’ll do, when and how---everytime),

2)Responsiveness(willingness to solve problems, even anticipating them before they

become such)

3)Assurance(ability to convey Trust and Confidence)

4)Empathy( Caring for a sutomer’s needs, wants and peculiar situations)

5)Tangibles (the physical characteristics).

If these items are the ones most valued by customers, conversely, we can say that the absence of these can contribute to an unpleasant shopping experience.

In the next issue, we will take a closer look at these and will start to address “why customers complaint” and “handling customer issues”.

Part V

Before addressing “handling complaints” in the next issue, we should address their source of origin. First of all, complaints will happen, but they do not need to result in either the “loss of a customer”, or “of business”. Honesty and caring will go a long way to prevent this. Remember that “people don’t care how much you know until they know how much you care”.

So, why do customers get angry?

The most common reasons are:

1) They do not get what is promised, in the way it was promised, or at the price promised..

Many surveys have found the following items to reoccurrence in the complaint list and the most critical ones as perceived by the customers:

1)Reliability(do what you said you’ll do, when and how---EVERY TIME),

2)Credibility(do what you said you’ll do, when and how you said you would do it.)

3)Responsiveness(willingness to solve problems, even anticipating them before they become a problem.)

4)Assurance(ability to convey Trust and Confidence)

5)Empathy(Caring for a customer’s needs, wants and peculiar situations)

6)Tangibles (the physical characteristics). I’ll illustrate this last one.

You go to a great restaurant where their reputation for the food and service is great, but you see dirt, bugs, or leftover food under the table, or...stains on the tablecloth

Will your perspective of the restaurant change? It’s the little things. The little things force customers to question the “bigger” things where they would not have otherwise done so.

Besides the above outlined critical components, as perceived by customers, there are other factors and expectations that customer have come to demand and react to.

When a customer is serviced by any company, HE /SHE will experience one of three types of customer service. 1) Friendly 2) Rude or 3) Uncaring or indifferent.

The first two are obvious and self explanatory, even though each will very some depending on the customer’s own personality. Sometimes too friendly may come across as rude.....know your customer. If in doubt, be conservative in your approach.

Now we come to number three. This is the deal breaker. We have all experienced it. “INDIFFERENCE.” This is the one that makes us complain the most and yet makes us feel as if we are just reaching for something about which to complaint. Sometimes, we can not really explain it, or put it into words and therefore, many customers just choose to ignore its mention...they just do not return to do business with us again. It is also the hardest one to correct, as the individual has to want to correct it himself...all the training, in and of itself, will not help.

The best way to correct this situation is to address it before hiring and to create “mentors” for new employees. it is here that a TEAM effort can change attitudes. Peer pressure works better than corporate training. Establish a POSITIVE CUSTOMER SERVICE CULTURE.

This can best be done before hiring, or through the hiring process.

a) consider attitude and aptitude along with experience when hiring.

Practice does not make perfect...Perfect practice makes perfect. Therefore, just because someone has a lot of experience does not mean that they have a lot of good experience.

b) empower customers and make employees aware of their empowerment.

If you provide a reporting system for customers, make sure it works.
Test it from time to time. Go to a pay phone, call customer service using a different name and see what happens....do not use an internal phone.

c) spend time with the customers......Talk.....Ask

d) Training, training, training, ...”customer service is not a department, is a philosophy”.

Spend as much time and money showing your employees how to keep customers as you do in trying to get the customers in the first place..

There is a trend in customer service which scares me. Customer service representatives have been told that they have the power and the customer is not always right, or if they perceive the customer to be rude that they do not have to deal with the customer. This is wrong. All jobs have their down-side. In customer service dealing with the angry customer is it. After all, the customer may well be justified in feeling the way they do. I have seen where a customer uses a mild foul word and the customer service individual has immediately jumped on it and made an issue of this, thusly creating a “second” customer service issue. The customer is not usually aiming any foul language at the worker, he is just letting steam out. Let him, do not confront.

The brain has two sides: the emotional and the logical side.

When a customer is mad and venting, the emotional side of the brain has taken over. One will not be able to use logic at this time.....allow the customer to vent and the brain to shift from emotional to logical in its own time.
Until this happens, it is a wasted effort.

Have you noticed that you can not argue with someone drunk ?, or about politics?, or religion? Usually people shift to the emotional side under these circumstances. Be smart, know what is happening and let the process take its course. When they get back to the logical side, they will calm down and probably be apologetic. You CAN NOT fight human nature. The customer may be wrong, you may know this, but it is not relevant until you can communicate “logically”. The customer is not always right, but they are always the customer.

We have always known that the customer was not always right ;however, the premise must be that the customer IS always right. If this premise is not upheld and the representative believes he/she will be backed by management (no matter what), or that the issue will never be followed through, then the “attitudes” start with the customer service representatives and not with the customers.

It’s human nature. Power corrupts...Absolute power corrupts absolutely.

Keep your eye on the airline industry, you will see more and more people being kicked off planes for things for which they never would have kicked off for before. This is a result of the “flight attendant’s union” and 9-11, the power has shifted, common sense has been eliminated and the power of the powerful will prevail. I will not even try to argue this, as the ones involved will always have a good reason such as “security”. The fact is that if a flight attendant, or pilot has a bad day or does not like someone, they can get someone kicked off the plane. “This will not happen” you say. I beg to differ, even if the flight attendant was found to have been wrong, by that time it will be too late to correct what would have already have taken place. Much like politicians have two reasons for doing what they do, “a good reason and the real reason”, when you empower customer service representatives the same system will come into play. This is not a put down on attendants, most of them are great and do a great job under difficult circumstances. I have seen cases were I would not have returned to the airport to have a passenger depart, but instead would have liked to have opened the door and thrown them out in mid air..... but they are also human and the shifting of power will create abuse by some. Neither accounting, nor police mentalities work in customer service.

Remember: Power corrupts. Absolute power corrupts absolutely.

As the Golden Rule of Business states “ He who has the gold makes the rule” and that’s the customer.

In the next issue we will deal with specific, how-to ways to calm and handle angry customers.

Part VI

Now that we have addressed the main reasons that make customers angry and causes them to complain, let’s talk about two big issues: “handling complaints” and “customer service recovery” in a very simplified format.

HANDLING COMPLAINTS

Before talking about the handling of complaints, we must remember that the brain has two sides: an emotional side and a logical side. A person who is in the emotional side of the brain will not entertain logic. Don’t believe me? Have you ever tried to use logic on someone who is so angry that they can barely speak, or drunk, or is talking about an issue from which they can not detach themselves emotionally ? It does not work.

Therefore, before addressing the handling of complaints, let’s talk about “getting the customer to the logical side of the brain first”. Easier said than done, because we allow our pride and emotions to interfere, otherwise, it is a piece of cake.

Let’s take for instance a customer who arrives at your business angry. They have had plenty of time to think and rehearse what they are going to say. They have even anticipated what you are going to say. They are like “a loaded gun” waiting to fire all its bullets. I do not know about you, but if I see a loaded gun with bullets, I’d like to make sure that they are fired at a different direction from where I am....the same applies in customer service.

So here are the steps:

1) Greet the customer promptly.

2) Ask as to how you can help, or solve the problem, while walking and/or suggesting to go to a quieter place so that you can give them the attention they deserve....don’t just say a quieter place. The customer will think you are trying to prevent them from being heard.

then... SHUT UP !
*** If possible have a seat, they will follow the lead. A person in a ‘sit-down” position has less energy for arguing and is less aggressive.

Warning :

* Remember the bullets. The customer must be allowed to “empty their gun” and therefore move to the logical side of the brain before you can even attempt to begin to discuss the issue. In a lot of cases, you’ll know the answer before the are through. DO NOT INTERRUPT. If you do, they’ll probably just start all over again...after all hey have rehearsed.

* Do not get involved in the words. I have seen this trend lately. An angry customer comes in and in the process of describing their situation utters a few chosen words (NOT AIMED AT THE REPRESENTATIVE), yet the representative jumps in the middle to create another situation, by saying something like “ I am not going to listen to you if you are going to talk like that”. This just adds to the mix. I am not saying to allow a customer to abuse you, but if the words are not aimed at you, ignore them at first. You have probably heard must of these on TV. Then, at the proper time (after the bullets have gone by), as things calm down, assure the customer that you are going to help. By this time, most customers will have ceased any foul language, as they will be switching to the logical side of the brain. Sometimes people get so mad that only foul language comes out, do not make it an issue. (people will default to their most basic level of communication (education/socio-economic level will play a role-don’t make it an issue)

Who has not ever said something they regretted later in a moment of anger ? If it continues, then says something like this: “I really want to help you, but I am not getting the right picture, if you would explain the situation to me without using as many emotional words, I may be able to help you better. Do not confront.

Now to solving the problem...

WARNING ! Do not use “trigger words” in explaining facts. This brings us to “what are trigger words ?” These are words that usually will bring about an unwanted response from a customer, so do not use them. “I can’t”, “I won’t”, “We do not usually”, “ Never”, “It’s our policy”. “It’s not my department”

When speaking, remember that you speak with “words”, “voice tone” and “body language”, so be calm, speak softly and smile.

If you can not help, say something like. “ I can help you. Let me get the person that can take care of that for you” Whether in person, or phone, stay with the customer until the right person arrives, then excuse yourself.

Also, here would be a good point to discuss the “authority vs. responsibility” aspect of customer service. Have you ever properly stated the “rules” (for the lack of a better term) to have the customer talk to a supervisor who makes the exception and overrides you? This is OK. Do not take it personally. A supervisor has more responsibility and more authority than you do. It’s not personal issue--don’t make it one; however, if you are a supervisor, your “override” should always start with something like this” Mr. “X” is correct in what he has said to you, our rule is.......... ;however, because I have some discretionary power in this situation, I will.........,this time only, ....

The supervisor should never put down the representative in public, even if they made a mistake. You praise in public, reprimand in private. Then, if the representative had done the right thing, go back and praise them, thank them for having done so. If helpful, explain why the “override’ took place. Now you are training future managers.

3) Apologize. Don’t blame others.

Empathize with the customer. Show empathy, not sympathy.

4) Restate the problem.

5) Find agreement or accept their point of view.

6) Find out what the customer wants.

7) Propose a solution

8) If proposed solution is not acceptable to the customer ,ask what they would consider a fair solution? Work from there, the customer will usually not want as much as you think they would want.

9) Delay or transfer. If nothing works, try to buy some time and allow customer, or yourself, to perhaps see things differently.

Remember the 4 most basic things a customer wants:

To feel welcomed, understood, important, and comfortable.

...so give it to them.

Will these steps work 100% of the time? NO, it is intended to work most of the time and they will. Nothing will work 100% of the time, but if one uses common sense and common courtesy a lot can be accomplished.

Part VII

Customer Service Recovery.

There is no doubt in my mind that we will all make mistakes. I have and will again. Sometimes we are trying to do the right thing and it just does not work, so here are a few suggestions for those times “when things go wrong” and we need to win our customer back.

When a customer came in with the complaint, he had one thing in his mind: Solving the problem and then deciding whether or not they would continue doing business with you.

If we lost the customer, we may have addressed the first part, but not the second, or failed on both parts.

That’s the reason why we find ourselves in the “recovery phase”.

OK so what know Doc?

Apologize: sincerely, strongly, often and as soon as possible.

Take responsibility for what went wrong.

This is not the time to be specific as to whose fault it really was.

If the apologizing can be done in person, do so.

Use the law of the “lagniappe”, as we say in Louisiana.. GIVE SOMETHING EXTRA.

It is not enough to just make it up to the customer to where things are “even” or corrected, we must give the customer the feeling that they have gotten something extra for their troubles also.

After all, they have:

a) given you money for something they did not receive either in quality, or quantity, or delivery.

b) been inconvenienced.

Therefore, in correcting the situation, one must then:

a) make things right

b) compensate for the inconvenience (does not need to involve money).

It is therefore, important to overcompensate either in effort, or merchandise, or.......

Give more than the customer expects and they’ll remember the way you handled things. Give them just what were to have gotten in the first place and they will remember the problem.

Also, if the “customer” is the one inconvenienced, make sure to compensate the “person”, not the company wherever proper to do so. Feel free to ask as something like

”what could we do that would make you happy”? their preference

Example: A customer traveling on business has a bad night at your hotel. If you credit the account, chances are that the credit would go to the company. The person who experienced the problem would receive nothing and they will still remember the problems. On the other hand, if you offer the person a free upgrade to a suite next time, whether personal, or business, or perhaps a free dinner, or bottle of wine, or... the person inconvenienced gets the benefit.

Make sure to take care of the individual who suffered the inconvenience if applicable and ethical.

This is not a time to think “money”. It is a time to think “customer”.

If you must think money, think of the expense of getting a new customer to replace the one you’d be losing.

Your motto should be: Lose a customer, Not on my watch !

Remember:

“People do not care how much you know until they know how much you care”.

Now, let’s be selfish for a bit. We would obviously never want to be in this situation, but now that we are, let’s try to never be here again. What ever this situation my costs us, it may be a cheap price, if we learn from it.

Let’s use the KISS (keep it short and simple) method to prevent any future problems.

1) Use the fact that someone is complaining to your advantage. Not only find out about the complaint, but ask for the reason behind it...what is it about the situation that created the loss of the customer.

2) Ask the customer what they would have liked your company to have done differently.

Consider the possibilities.

3)Determine if this is a an isolated situation, or an on-going problem.

4)Determine the source of the problem. Is it the result of training, an individual employee, or a company policy?....then take action to prevent it from happening again. Do not be quick to judge the employee if the company policies and/or company culture influences the employee to make such decisions. Be honest

Customer Service starts at the top and requires personal and monetary commitment.

Part VIII

Technology and Customer Service:

Part I

Traditional and/or Non-Internet related methods

Why Technology? Before giving you my personal Do’s and Don’ts, I’d like to make a point clear. The primary purpose of technology should be to facilitate the customer’s ability to do business with you and not to make it more profitable for you to do business with the customer, even though the later that may be a byproduct of the process. As simple as this sounds, I see too many customer service policies being based on “what’s less expensive, or convenient” and not on “what’s best for customers or business”.

Telephones (land lines):

Telephones should be answered by the end of the third ring. Preferably at the end of the second ring, before the end of the third. The person answering should always identify the company and themselves. NEVER refuse to identify yourself if asked, you have that right at home, but not at work. If you should not do so due to security reasons, devise another method of positive identification, but definitely give the customer a way of knowing with whom they have spoken.
Always answer with energy, speak clearly and with a smile...the customer can hear it.

If you have to place someone of hold:

a) Check to make sure it is OK .....wait for an answer.

b) Keep an eye on the call on hold to make sure the line gets answered.

The job is a good job when the customer connects, not when they are forwarded.

Make sure that the line is picked up and/or voice mail reached.

Cell Phones:

There are many of us who must use cell phones to provide our customers with access. In today’s environment this is often necessary; however, I feel that the rules that apply to land-line telephones are the same as that of cell phones.

In addition, when using a cell phone, one needs to be particularly aware of:

a) Image presented to the client.

Are you answering in a crowded noisy place?

What’s the background noise telling the client about you?

It may be best that calls be allowed to go to voice mail.

b)If you answer the phone, are you in the position to properly write the information. and take care of the customer ?

c)Is your office phone forwarded to the cell phone? If so, be aware that the customer may have already heard numerous rings prior to the call reaching you. You may want to answer this type of calls ASAP.

d) Be honest and straightforward with the customer. If you are out of the office say so, especially if noise is present, or you can not provide all the requested information. Make sure to give a realistic time as to when the customer can expect a call-back....and then follow through.

Answering machines / voice mail:

The purpose of having an answering machine, or voice mail is to allow a customer to leave a message AT THEIR CONVENIENCE, not yours.
Therefore, these messages should be treated as “ a customer having done the company a favor”, not the other way around and should be returned accordingly.

One should allocate 5-10 minutes every half-hour, or every hour to read messages and return calls.. These should then be returned according to priority, but not placed behind incoming phone calls automatically. Too many times, too many customer service persons, continue to answer incoming calls and ignoring voice messages until it is convenient (at the end of the day, or next morning). This should be unacceptable.

800 Numbers:

A customer calls an 800 number to either ask a serious questions prior to a purchase, or to place and order, or both.

Treat it accordingly. Probably the closest thing to a “sure-sale”.

Fax machines:

The same rules apply for faxes, as they do for voice messages. In addition, one should set up a regular schedule for checking that the fax is properly set up to receive faxes.... with paper, etc. If the fax is used extensively to send out information, those duties should be done after hours, as they may impede receiving faxes from customers....or additional lines should be set up. I, as I am sure you do, receive many faxes over night......most are trash, but please DO NOT TURN FAX MACHINES OFF.

There are a lot of times that a customer will fax you prior to your opening hour.

Telephone trees:

A way to avoid customers. If you must have a telephone tree, use the KISS method “Keep It Short and Simple”.

Limit your telephone tree to three levels and three choices per level. At the very maximum: 5 choices - three levels. The more levels, the less choices. After a while, the customer becomes impatient. The customer does not mind a “tree” being used to direct them correctly, but they do mind it being used as a way to replace “talking to a live person”: Customer Service should occupy position “1”. In addition, if you offer a company directory option, allow customers to search by “first name” and/or “department”. The customer calling will most likely not know the last name (or its spelling), but will know the area of the company they’d like to reach., or the person’s first name ...also they are usually easier to spell than the last name.

Remember, IT”S ABOUT MAKING IT EASIER FOR THE CUSTOMER, NOT THE COMPANY.

In my opinion, if you’d like to see how “not to do it” check out SBC . Many, many levels and then if / when you should actually reach the correct party and they are on the phone (line busy), it hangs up on you...does not even allow you be placed on hold.

At least that was my experience on multiple occasions. Great telephone tree from a telephone company ?....hard to believe they are that insensitive. It is a shame, because they actually have good customer service personnel and decent policies, if you ever get to talk to them.

Technology and Customer Service:

Part II-

Internet and/or Technology Related Methods

Help desks:

This one could have been included in the non-Internet related section, but I am doing it here as most Help Desks have been created with heavy influence from technology people. OOPS! let’s not forget the accountants.

This one has too many variables to cover here, but a couple of key points.

a) “frontline providers need to be empowered with decision making authority, should not be used only as “screeners”.

b) do not make customer repeat the same information multiple times.

c) allow some way of identification of the person to whom the customer is speaking

d) the customer should be empowered to reach supervisors when they deem it necessary, instead of “forcing” them to deal with the lower levels. If the frontline providers are empowered and can effectively communicate such to the customer, most customers will let them take a shot at solving their problem.

Yes, I know, the accountants expect 75 - 80 % of the problems to be solved by the initial contact...after all they are paid less than supervisors and therefore, there are fewer supervisors. This keep payroll down, requires less training and experience.

Emails:

This is the one that gets me. I was once told that politicians had two reasons for doing what they did....a good reason and the real reason. There is no doubt in my mind that this is true of the people in charge of setting up email.

Emails should be used as a way of communicating what would normally be “one-part / instance messages”, but should not be used to address a multiple part problem, unless the responding party can respond immediately. Too many times the technical department, or customer service department seem to hide behind this concept, especially if input is coming from a web site. The customer should always be given the option of “calling”. Too many people setting up “Help” think that emails are a wonderful way to solve a problem, but they are not necessarily so......and you’ll never know it. The customer will never let you know when they have enough of your game, they’ll just take their game elsewhere. Don’t believe me?

Let’s say that you are a customer who needs multiple answers to a problem; however, the second part of the question depends on the answer to first part. And the third part depends on the answer to the second part., and so on. Now let’s say that it takes up to 12 hours (normal response is 24 - 48hrs) for an email to be answered. This means that a customer has to wait a minimum of 36 hours (o a good response) to get their problem solved completely, where it could have been solved via telephone in 5 minutes.

So, where is the expediency. Now imagine that this customer needed the answers to make a sale and could not execute it because of the response rate.....which do you think is most likely to result in “repeat business”?

I have heard it too many times. “By setting up email the customers can reach us at any time ...at their convenience”. This is true (as I said---the good reason), but here is the REAL REASON. Companies can be set up to answer emails at low-peak periods when their customer service would have little to do. Therefore, averaging out the demand and also allowing for not having to hire workers for the peak-periods. Companies save money, but loose sales. Unfortunately there is not a “SALES LOST” column in an Income Statement.

Setting up a web site with customer service in mind:

By now, it should be clear as to my feelings of how I feel about allowing customer access to the company. Make sure your site allows for easy contacts and easy navigation. Provide email access, snail-mail access, telephone access and fax access and PLEASE! PLEASE! ....DO NOT HIDE these.

The larger the company, the less access they offer. Try finding a phone number for Microsoft on their web site. I know, they are such a big company that you can only imagine how many calls they would get. Of course, if they are that big and getting that many calls, does that not imply that they have a lot of customers that have gotten them there? Does it not also imply that they are making lots of sales and should be able to afford the service? A great company, poor access. While FAQ ((Frequently Asked Questions) is a great way to answer a lot of low level needs, there are times that a customer’s problems “DO NOT FIT THE MOLD”.

When setting up these policies and procedures we sometimes forget that the customer is in charge and take on the philosophy of...”this is the way we do it”.

How arrogant (and dumb) of us. We spend a lot of effort and money to get customers to come to our business (by whichever method) and once they come, we put obstacles in their way and prevent them from doing business...just because they do not want to do business the way that best suits us.

I’d like to end with the “GOLDEN RULE”:

“Do onto others what you would want done onto you”.

and the “BUSINESS GOLDEN RULE”.

“He who has the gold makes the rules”

....and that’s the customer.

Part IX

Technology and Customer Service:

Part II-

Internet and/or Technology Related Methods

Help desks:

This one has too many variables to cover here, but a couple of key points.

a) “frontline providers need to be empowered with decision making authority, should not be used only as “screeners”.

b) do not make customer repeat the same information multiple times.

c) allow some way of identification of the person to whom the customer is speaking

Emails:

Setting up a web site with customer service in mind:

When setting up these policies and procedures we sometimes forget that the customer is in charge and take on the philosophy of...”this is the way we do it”.

I’d like to end with the “GOLDEN RULE”:

“Do onto others what you would want done onto you”.

and the “BUSINESS GOLDEN RULE”.

“He who has the gold makes the rules”

....and that’s the customer.

part X

Abusing your power as a customer service agent.

The following is a brief warning to companies trying to use too much "political correctness" and too much CYA.

First of all, I want to make clear that I do not believe that agents in the Customer Service field, need to endure abuse in their work place; however, common sense and the understanding of the customer should sometimes dictate for agents to "look the other way" as it were.

In order for you to understand what I am going to say, I must explain a couple of brief facts about the human mind.

The human mind has 2 sides:

a) emotional side- it is named this because it is the side we use when we are emotionally charged,

whether from an immediate action or as part of or past.

b) logical side- it is named this because it is the side we use when we are calm and relaxed.

Key point: when we are fully engaged in the emotional side, LOGIC will not play a part.

Thus, when a customer contacts you and they are EMOTIONALLY CHARGED, one must first allow them to "unload" their thoughts...some are much easier to deal with than others.
These customers can act like a loaded gun that needs to be discharged, before it is safe.

Let them ! Do not confront at this time...it is time to acknowledge their frustration and let them vent.

You will see/hear the tone/speed/volume of their voice change. You can then help YOUR customer....

even if you think they are obnoxious they are still YOUR customer.

Now that I have said this..."what constitutes ABUSE"?

ABUSE is when a customer AIMS the insults or words AT THE AGENT personally....

not at the company or incident...or if the "high caliber" curse words come at you fast and furious.

If they are minor and occasional, you may be better off to dismiss them...they will likely stop.

I say this because I find too many agents in a "POWER" trip, as soon as a customer gets angry, their attitude is

"I will show this customer...I can hang-up, I do not have to take this"

I maintain that every job has it pluses and minuses and that a Customer Service job has those as well.

this is on the minus side.

DO NOT ABUSE YOUR POWER...Remember, the purpose is to please and keep the customer.

..you get paid from the revenues generated from THEIR money.

DO NOT ENGAGE or OVERREACT when there is not a need.

I have seen agents hang-up and confront the customer when the word DAMN was used...

come on...be real..

We have all heard that word...even on TV.

My point, if it is not aimed at you,..ignore it.

How many of us watch MTV and hear much worse ????
...only to then overreact to a minor un-intentional word because we want to demonstrate POWER.

YOU, the customer service agent should learn that sometimes, the customer can not help it...his speech is being controlled by the emotional side..

we may be the nicest person when he/she returns to LOGIC.

This is a similar reason why you can not reason with a drunk or drugged individual, until they get out of the emotional side of the mind...they will not listen to logic

Besides, it is our own company's fault for the sometimes ridiculous voice answering system (options-lack of) and the frustration of customers of not being able to reach a person. By the time they get to a person, God only knows how much abuse they have endured by your own company.

Do not believe it ?. Do this...from an outside the company phone, call the number that the customer is to call and pretend you have an unusual problem...see what happens.

So, please use your brains and not your power.