Category Archives: Uncategorized

Why feedback is crucial to customer satisfaction

Managers aren’t the only people equipped to provide valuable feedback into your organization.

A corporate culture that encourages feedback will improve customer relationships. Why? If we don’t know what’s wrong we can’t fix it. If customer’s can’t easily provide feedback they won’t, they will simply leave or worse complain to other potential customers about their poor experience.

Employees are usually the first people customers encounter and frequently have insight into common customer complaints and concerns. What is important is that the leadership listen to, prioritize and act on this feedback.

By practicing a policy of transparency and never punishing employees for providing feedback, you will improve your customer relationships and often increase employee satisfaction in the process.

Just as customers want to be heard so too do the staff in your organization. So develop the practice of giving and accepting feedback, it is a shortcut to getting the right things done faster and more effectively for your customers and ultimately your business.

Do you encourage feedback in your company?

 

 

Amazon’s customer centric moment of truth

jeff_bezos_amazon Image credit: Steve Jurvetson/Flickr

I have been a fan of Amazon.com for many years, in fact I wrote extensively about them in my new book, the Customer Culture Imperative.

However some recent news about some of their practices have caused me to pause and question whether they remain true to their stated vision as being “the most customer centric company in the world”.

As recently reported in PC World, the FTC filed a complaint against them for billing parents millions of dollars’ worth of unauthorized in-app purchases made by their children.

To me this raises some alarm bells, targeting kids in this way is problematic. Kids are clearly less sophisticated and financially literate consumers, vulnerable to impulse purchases.

Also it sounds as though employees at Amazon had their own concerns, this quote was cited in the PC World article:

“One internal Amazon communication said that allowing unlimited in-app charges without any password was “clearly causing problems for a large percentage of our customers”

As a customer centric business, you have the interests of your customers as a first priority. This approach builds trust and long term relationships, the outcome for business is sustainable ongoing profits.

Is making it easy for kids to spend hundreds of dollars on in app purchases reflective of a company with its customer’s best interest at heart?

Jeff Bezos is a well known long term thinker, however this sounds like some short term profit thinking to me.

What do you think?

Diagnose Your Customer Culture

Harvard Business Review:

I hope you enjoy our post from the Harvard Business Review Blog Network

Originally posted on HBR Blog Network - Harvard Business Review:

What happens when you deliver poor customer experiences and get complaints? You might ignore your customers —  or worse, blame them — and lose them for life. Or you might fix their problems and earn their loyalty. What you and your employees will do depends on your customer culture.

In truly customer-centric companies, all individuals (regardless of their roles) base their decisions and actions on the belief that what’s best for the customer is best for the business. New evidence shows how a strong customer culture drives future business performance and supports market strategies. Our research, based on a quantitative study across more than 150 businesses, spanning various industries and functions, identifies seven cultural factors that drive customer satisfaction, revenue and profit growth, innovation, and new product success. These are important predictors of future results and early indicators of risks and opportunities related to retaining customers and acquiring new ones…

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Some of the best research ever done on customer centricity

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We are often asked about other research that has helped shape our view of creating customer cultures.

Here is a list of a few of our favorite research articles and books the influenced us deeply when writing “The Customer Culture Imperative“:

Kotter, John P. and Heskett, James L. (1992), Corporate Culture and Performance, New York, Free Press.

Homburg, Christian; Pflesser, Christian (2000), “A Multiple-Layer Model of Market-Oriented Organizational Culture: Measurement Issues and Performance Outcomes,” Journal of Marketing Research; Vol. 37 Issue 4; 449-462

Basch, Michael D. (2003), Customer Culture: How FedEx and Other Great Companies Put the Customer First Every Day, New Jersey, Prentice Hall.

Kirca, Ahmet H.; Jayachandran, Satish; Bearden, William O. (2005), “Market Orientation: A Meta-Analytic Review and Assessment of Its Antecedents and Impact on Performance,” Journal of Marketing; Vol. 69 Issue 2; 24-41.

Enjoy!

How Zappos makes sure customers get a great experience everytime

customer service image on blackboard

You see countless articles every day that claim improving a single part of your customer service strategy is the “key” to something. Experts promise how listening to your customers, delivering more timely service, improving employee training and many other things offer a path to providing a better customer experience. The reality is that your customer service is like a machine with many moving parts. These parts include your call center’s hold times, your field sales teams’ ability to make an emotional connection, the helpfulness of information available on self-service portals and more. They all need to function well, and – most importantly – function well together in order to offer an amazing customer experience and rank among the best names in stellar service. Ultimately this requires a customer culture (read more in our new book here)

The most well-known companies in customer service have earned their reputation by recognizing and executing against this reality. This is demonstrated in call center reviewer Ashley Verrill’s recent article, which examined how Zappos perfects quality assurance management for a better customer experience. QA is not typically showcased as a big part of the “machine,” but the Zappos strategies she highlights do more than improve the accuracy and fairness of agent scoring. They also involve the voice of the customer and service reps to improve the experience for all parties involved:

Quality Assurance and Customer Service Reps Join Forces: Each QA team “advocate” is required to spend at least five hours on the floor, taking calls. This helps them stay connected to the real challenges and opportunities reps face on a daily basis and promotes active participation between the two groups.

Scoring Weighted to Reflect Zappos’ Values: (which you can view here): The scores that have the greatest impact on the overall quality assurance score are those in categories that do more to deliver the “Zappos Experience.” The most important factor for Zappos is forging a personal emotional connection with every customer. Also important is the solution to the issue. Knowing what’s most important to your company helps you evaluate your reps based on what matters most.

Self-Check Sessions: Every six months, Zappos evaluates its QA form and asks agents to grade their own calls. This not only helps continue the improvement of QA evaluation – it also empowers agents to voice opinions and innovative ideas.

Involve the Customer: Zappos manages call quality using traditional methods such as traditional Net Promoter Scores, as well as more unique strategies including “sharing great calls” and “customer props.” Again, this empowers the agent to tout an exceptional connection they made with a customer and also gives a voice to the customer, who is invited to give his or her take on the experience.

Custom Coaching with a Clear Path of Progression: Although Zappos has certain standards in place for measuring QA, team leaders are encouraged to personalize training exercises to best fit the learning style of the rep. Providing customized coaching optimizes the agent’s learning potential, interest levels and excitement. Zappos’ leaders take it a step further by outlining exactly how reps will move to higher-tier roles – creating an incentive for reps to continuously be improving their service quality.

You’ll find a pattern with the majority of Zappos’ tactics for quality assurance management: they are constantly creating opportunities for feedback. Whether that feedback comes from the customer, the agent, the QA team or management, all suggestions are welcomed as vehicles for innovation. It doesn’t matter which part of your customer service “machine” you’re working to improve – when you incorporate viewpoints of all parties involved, the closer you get to providing stellar customer experiences.

Why empowerment and trust are crucial to creating great customer experiences

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Many of the most-used customer service buzzwords focus on delighting the customer, proactively providing a good experience or making a personal and emotional connection – but what about trust?  How would your business’s customer experiences benefit from trusting your employees a bit more? 

Holly Regan of Software Advice recently wrote an article highlighting a discussion with Carmine Gallo, who interviewed Richard Branson on his customer service tips in this May Forbes piece. The article covered Richard Branson-like ways to empower customer service representatives, with one of the key benefits of trusting your employees being a significant improvement in the overall customer experience. Even if your organization doesn’t have a formal customer service strategy, here a few tips on empowering employees that are worth integrating into your standard operating procedure for happier staff and happier customers.

Give employees the freedom to decide: This starts with hiring the right employees whose judgment calls you trust. Minimize the risk of an employee deciding to do something he or she shouldn’t do by setting clear boundaries of what can be improvised by the customer service rep, as well as what rules and procedures must not be deviated from.

Create an environment where reps work together to solve issues: Encourage your teams to consult with their fellow reps to agree on the best solution before bringing an issue to senior management.  How? By role modelling this behavior, is the leadership team is demonstrating collaborative behavior it will catch-on.

Encourage staff to incorporate their personalities: Empowering customer service reps to show off their personalities in their interactions not only increases confidence of your staff by allowing them to solve issues their way – customers will like this much more than the typical customer service “robot.”

Educate all staff members on the company mission: Providing a big-picture look at what your company hopes to accomplish with excellent customer service lets reps know they are on the frontlines of executing overall company goals.

Create an open-door policy: Give your employees the direct opportunity to bring up what is working, what isn’t working and provide suggestions to senior management.

Basically, employees are much more likely to enjoy their jobs if they are trusted to be themselves and act according to their own best judgment. This is where employee engagement and customer experience intersect.

When employees enjoy their jobs and understand the experience the customer expects, great things happen. This in turn produces another desired end result: customers who really like interacting with your staff.

Every employee has a role to play in creating great customer experiences, leadership’s role is to create the right culture and environment for them to really make great things happen.

How DollarShaveClub.com created a disruptive customer experience

If you think about what’s happening in the men’s shaving razor market it’s a little like a cold war era arms race. Each year more and more blades are added to the humble razor. The giants of the industry Gillette and Schick continue to add more and more features to their products but are they creating more value?

Michael Dublin from DollarShaveClub.com doesn’t think so. In a mere 12 months he has built an online subscription based razor business with more than three hundred thousand customers.

How? Michael recognized three major pain points for men when it comes to buying shaving equipment. Firstly razors are expensive! and they keep going up in price. Rather than getting more for less consumers are getting more for more…. Secondly the experience of buying a razor is far less than ideal (to put it politely). Razors a usually locked behind a plastic cage at the back of a Walgreens store and it take 20 minutes to get someone back there to let them out! Finally who really needs 5 blades? How close a shave do men really need?

How about a world where razors are bought online at low cost and sent to you each month – a just in time subscription model. Not only that but they are provided by a company with a sense of humor, that doesn’t take things too seriously (apart from disrupting the existing business models).

A great value proposition is worthless if no one knows about it so to overcome the inherent challenge facing any new business or new idea, Michael developed a video to communicate what dollarshaveclub.com is all about…

While it certainly is not a video that will appeal to everyone, it does a great job of speaking directly to his target audience – men fed up with spending a fortune just to keep up with the latest shaving technologies.