Superior Customer Service is no Accident
By Clark neuhoff
We all know it is easier (read “less expensive”) to retain a current customer than to find a new one. And in today’s uncertain economy no one can afford to lose their good customers. To illustrate how important this is, consider that as volume declines your top customers represent an even greater share of your business. If you are struggling to generate new business this year, as many are, ask yourself how would I make up an additional 5% to 15% if we lost some of our key customers? Now consider that repeat customers are typically more profitable, you can see how devastating it is to lose one of them.
This current weak economy also puts pressure on pricing, but dropping price in an attempt to retain business is a short-term strategy, and is easily preempted by your competition. Plus it creates a host of other problems for your P&L. Before going that route, we suggest taking a hard look at how else you can increase value, and in the long run differentiate yourself from competition.
One way to deliver more value, without cutting into your margin is through better… no excellent, no… superior customer service. This was made clear to me this summer through the worst customer service experience I can remember followed immediately by four examples of the best customer service. I was shocked why this company was not more concerned about keeping my business, especially in this weak economy. I won’t dwell on the mistakes they made because they are so obvious:
- Repeated errors
- Slow to respond
- Never owned the problem – excuses
- Over promised and under delivered – did not manage my expectations
Rather I will share the four positive examples because each one demonstrates a specific Customer Service Strategy that can be learned and repeated by any organization. I trust they will help you survive this difficult economic season and emerge stronger.
#1 Anticipate the Customer’s Needs This seems so simple but it does take time and attention to the details. We can anticipate our customers’ needs by watching them, paying attention to their issues, and when we see a need, bring the solution before they even ask for it. Here’s what happened. We ordered breakfast in a pancake house and once again our eyes were bigger than our stomachs. I looked around for our waitress, and as I caught her eye she was walking towards our table. I thought great, I can ask her for a to-go box. But before I could ask, I saw to my surprise she already had one with her. A small thing? Yes, but it blew me away because she thought about our needs before we did. Of course she got a good tip but I also went up to her manager and told him in front of her how powerful that small gesture can be.
#2 Teamwork Again in a restaurant, where food can be a very level playing field, service is the key differentiator. Many places can serve a great steak, but this one made sure we knew just how important we were to them. During the course of dinner no less than eight different members of the wait staff came to our table with drinks, appetizers, refills, cleared the plates and so on. Only one waitress was assigned to us but the whole team stepped up. We never waited for anything. And it wasn’t just our table, that’s how they worked the whole room. Again, talking to the owner he and his team realized that in this resort community the competition was fierce so they had to stand out. This was the only restaurant we went to more than once.
#3 Lifetime Value of a Customer This time I had an auto repair that began under warranty but a month later re-occurred right after I went over the mileage. I went to the Service Manager who graciously called the warranty company who completely stone-walled us. He then looked up my records and saw that I had been a customer for the last 14 years, since we had moved to the area. He also asked how long I had owned that brand, which went back to 1983. He then did a couple of very smart things. First he owned the problem. Rather than blame the warranty company he decided he would do whatever he could to help me out. Then he leveraged his supply chain and told me he would contact the manufacturer’s regional rep and see what they could do. Before I got home, he called my cell phone to tell me that he would cover the labor and the manufacturer would also contribute a portion to the repair. My total out-of-pocket would only be one forth of the original quote. Do you think I’ll go to any other dealer?
#4 Go Above and Beyond The most amazing part of this example is that it comes from my credit card bank! I forgot to mail my payment one month (all this travel I guess) so I called and they said we could pay by phone and the wire cost was much less than the late fee. They also said if any interest charges do show up on the next statement to just call back and they would remover them. So we did but, it was two months later before I got around to calling back – she said yes I see the note on your account and I’ll take off that interest… please hold a moment. When she returned to the phone she said I also took off the interest for this month and pushed your billing date back 10 days giving you more time to get your check in mail, would that be ok? I have to tell, I look at this bank in a whole new light.
Anticipate – Teamwork – Lifetime Value – Above & Beyond
These strategies can become habits and part of your culture. Being consistent with such a high level of attention to your customers leaves a powerful impression and sets the bar very high for your competition.
If you have more examples or another Customer Service Strategy that your organization practices, please post your comments here on our blog so we can all learn how to provide superior customer service.
