Customer Centricity - Manual & Workbook

Version 1.0

© 2008 Louis Allen Worldwide

LOUI SALLENASSOCIATES


LOUI SALLENASSOCIATESINTERNATIONAL








iii

© 2008 Louis Allen Worldwide

All rights reserved. This work or any part thereof, may not be reproduced in any

form, including photocopy, or by any electronic means including information

storage and retrieval systems, for internal use or for sale, without written

permission from the copyright holder.

For additional information, write the publisher:

Louis Allen International - India

65 First Cross, Vivekananda Nagar

Bangalore 560 033 INDIA

v

WORKSHOP OBJECTIVES

The concepts and tools in this workshop are meant to rejuvenate in a two pronged

manner:

o First and foremost, by looking at the Spirit of Service, that translates into the

Right Attitude so critical to superior customer service

o Layering onto this, necessary Knowledge and Skills, that translates into an

Intense Customer Focus across internal as well as external customers

Specific Results

To enhance your ability and capability to:

� Develop the Right Attitude

� Help you instill in yourself the Spirit Of Service which energizes at a

fundamental level towards customer interactions

� Towards serving the customer – Internal and External

� To be committed to the Organization’s goals

� Increase Knowledge

� Understand, Accept and Absorb The Company’s Customer Service

Commitment

� Understand how to deal effectively with customer requests and complaints

� Enhance Skills

� Communication

• Speak the language the customer will understand

• Develop listening skills

• Avoid misunderstandings

� Inquiry

• Ask the right questions to determine the customers' requirements

and concerns

� Customer Handling

• Establish the right customer expectations

• Deal with tough customer inquiries and demands

• Improve handling of customer complaints

vi

PROGRAM NORMS

♦ Apply what is learned

♦ Be present

♦ Start and stop on time

♦ Be both open-minded and skeptical at the same time

♦ Participate and ask questions; stay relevant

♦ Maintain confidentiality

♦ Give us feedback

♦ Be patient – this is a system

♦ No cell phones

1

Section I











2

3

EVERY CUSTOMER COMPLAINT IS A GIFT

Choose whether you agree with this or not. If yes, why? If not, why

not? List your arguments below:

�

�

�

�

�

Capture your key takeout from the discussion:

�

4

TAKING CHARGE

The Freedom to Choose

Influence

5

QUOTABLE QUOTES

“It is not the strongest of the species that survive nor the most intelligent,

but the one that is most responsive to change.”

- Charles Darwin

“Even if you are on

the right track, you

get run over if you

just sit there.”

- Winston

Churchill

6

CUSTOMER CENTRICITY IS

ATTITUDE IN ACTION!

7

THE SPIRIT OF SERVICE

The Spirit shines through!

Intent precedes Content

The Power of Belief

• Seeing is believing

• Believing is seeing

• I have a dream…

8

Capture your reactions to the logo below. What does it mean to you?

�

�

�


�

9

Question: Who am I in the organization?

�

�

�


�

10

11

YOU ARE AN AMBASSADOR OF YOUR UNIT

Any interaction with you is a “Moment Of Truth” for the customer.

� You are the face of your unit

� First impressions often leave a lasting impact

When you go to a supermarket or hotel for example, you will judge the supermarket /

hotel by the people you interact with over there – and how effectively and efficiently they

serve you. The customer does not see the back-end but only its impact on him judged by

his interaction with you.

You need to be a guide / friend / expert for the customer.

� Understand customer needs

� Know your products

� Put the two together

Take the point of view – “I am the Customer”.

� You can never really know what drives someone unless you get into his skin and live

life from his / her point of view

� You can never know how a person feels until you’ve walked a mile in his / her shoes

� The customer’s views – not your views on his / her views

� Thinking of the customer in the first person very often helps this process

� Never “Us” and “Them”

To truly understand what drives and motivates the customer, one will have to virtually

step into his shoes. In the context of a 1:1 interaction for example, this will involve you

being separate from the customer only physically, but completely united with him in

spirit - virtually on the other side of the table.

12

Discussion Questions:

1. Who is my customer?

2. What are customer expectations?

3. Why do customers complain?

13

FIVE-WAY MANAGEMENT

Section Objectives

On completion of this section, you will be able to:

♦ Discuss the importance of “managing” stakeholders

♦ Begin thinking beyond traditional hierarchical mindset

The Importance of Five-Way Management

In order to be effective in today’s complex organizations, managers must lead,

plan, organize, and control so that they meet the needs of those who report to

them, as well as their own needs, and those of managers, peers, and stakeholders.

Question: What have you experienced that confirms or contradicts the concept of

five-way management?

You own your work area!

Peers,

Vendors You

Your

Manager

Your

Direct

Reports

Peers,

Customers

Sphere of Influence

14

Question: Why is my organization in business?

�

�

�


�

15

Question: Why is my company losing customers?

�

�

�

�


�

16

Question: What does Customer Centricity mean to you?

�

�

�

�


�

17

Discussion Question: What does ‘profit’ mean to you?

�

�

�

The underlying purpose of a

business is to make a profit

through service to its

customers.

Customers are both external

as well as internal.

18

Some reasons why companies lose customers:

� Incomplete information

� Hidden clauses that crop up later to surprise and irritate the customer

� Excessive Hard Sell

� Refusal to accept responsibility

� Surly employees

� Poor follow-through

� Poor response

� Not listening

� Pettiness

� Arrogance

� Treating the user as an idiot

One way to view a customer

is like a guest in your own

home – can you imagine

‘losing’ a guest?

19

THE QCD TRIANGLE

Five dimensions to quality customer care:

• Reliability - be consistent and follow through

• Responsiveness - tune in to your customers’ needs

• To feel valued - not just a number

• Empathy - really care

• Competency - attending to the basics

20

MISSION

What is a Mission?

You create your mission by developing a statement of the primary, continuing

results that you and your unit are to achieve. Your mission identifies the most

important areas to which you will commit available resources, and must link into

the mission of your manager.

An overall organization mission links into the organizational vision. It is like a

beacon that guides the efforts of everyone in the organization.

Why is a Mission important?

A well thought out mission will enable you to align others’ efforts around the

most critical goal of the organization. With a well defined mission you will be

able to better communicate, motivate, as well as measure important results.

What is Your Organization’s Mission?

21

Purpose statement of the mission is

written as an objective

To (what area ofresponsibilit y does)

To (what area ofTo (what area of

responsibilit y does)responsibilit y does)so that (overall, so that (overall,

cont inuing result )cont inuing result )Why?Why?

CausalCausal

22

Pick out the key words from the Mission that reflect the service that

you provide for keeping customers happy:

�

�

�

What are the key tasks to be done? What is the role that you play?

�

�

�

23

WHAT DO CUSTOMERS REALLY WANT?

Customers want a variety of responses from you. Most of all, people want to be

treated like valued human beings.

Some of what customers want include:

• To be listened to

• To be taken seriously

• To be treated with respect

• To get immediate action

• In case of a complaint

o To gain compensation / restitution

o To have the party who wronged them reprimanded or punished

o To clear up the problem so that it never happens again

What Customers Can and Can’t Tell You:

• Customers do know what they want!

• They know their wants and needs, but not the exact features and solutions

that will satisfy those needs

• Customers very often cannot set specific technical specs for you

24

25

Section II











26

27

ISSUE REVIEW AND RESOLUTION

Capture your key takeaways from the sharing below:

What are some general rules for handling difficult customer

complaints?

– Get a clear understanding of the objection

– Do not tell the customer flatly that he / she is wrong

– Restate the objection in your own words so that it comes across

sounding more positive

– Restate the objection as a question that will lead to sales talk

– Overall, try to turn objections into advantages. To do this you must

have a good understanding of the product

28

Tips for Handling Difficult Customers

• Time Out: If you find yourself becoming upset, wanting to cry, or yell at

a customer, give yourself a “time out”. Excuse yourself politely: “Excuse

me for a moment while I check our guidelines on this matter.” Get some

air and take a few deep breaths. You may even want to request that your

supervisor finish up with the customer.

• Polite Repetition: If the customer keeps insisting on something that’s

unreasonable or impossible, keep repeating what you CAN do without

becoming hostile or loud.

• Take Notes: Taking notes keeps you focused on the facts instead of

getting caught up in the emotion. It also lets the customer know that you

are listening and they often respond by calming down.

Peers,

V en dor s

Peers,Vendor s YouYou

Your

Manager

You r

Manage r

Your

Direct

Report s

YourDirect

Repor ts

Peers,

Cust om ers

Peers,Cust om ers

29

BREAKTHROUGH NEGOTIATION

30

COMMUNICATION

Why This Section is Important

“Communication problems” is the number one reason for most organizational and

customer issues. The material in this section will enable you to communicate with

increased clarity and confidence and help you resolve many of the communication

issues you will face.

Definition

Communicating: The work of creating understanding among people so they

can act effectively.

Principles of Communication

Emotional

Appeal:

Appeals made to emotion tend to be communicated more

readily than appeals to reason. Feelings tend to overpower

facts.

Rapport: Understanding is made easier if a good personal relationship

exists.

Application: The more often an idea is put to use, the better it tends to be

understood and remembered.

Line Loss: The fewer people through whom a message passes, the

better it will be understood.

Reciprocal

Understanding:

Understanding others first leads to their understanding you.

Question:

Provide examples from your own experience that confirm or contradict any of

these principles.

31

THE COMMUNICATION PROCESS

Sender -- The individual, group, or organization interested in communicating

something to another party.

Receiver -- The individual, group, or organization that perceives the encoded

symbols and may or may not decode them and try to understand the intended

message.

Feedback -- The process in which the receiver returns a message to the sender that

indicates receipt of the message and the degree to which it was understood.

Message – A communication or meaning transmitted from one person or group to

another.

ResultsResults

determ ines

sat isfies

produces

dictates

FeedbackFeedback

MessageMessage( w ork)( w ork)

NeedsNeeds

Sender &Sender &

Receiver’sReceiver’sReceiver’s

ResultsResults

determ ines

ResultsResults

determ inesdeterm ines

sat isfiessat isfies

producesproduces

dictatesdictates

FeedbackFeedbackFeedbackFeedback

MessageMessage( w ork)( w ork)

MessageMessageMessageMessage( w ork)( w ork)

NeedsNeeds

Sender &Sender &


NeedsNeeds

Sender &Sender &


32

COMMON COMMUNICATION PROBLEMS

The following is a list of problems that can interfere with effective

communication:

Noise -- Any disturbance in the communication process that interferes with or

distorts communication.

Filtering -- People may filter information on

the assumption that the receiver does not

need to understand the communication.

Semantics -- Problems occur when people

attribute different meanings to the same

words.

Jargon -- Jargon makes communication

more efficient within a closed group.

However, if the receiver does not understand the language, problems will occur.

Selective Attention -- Exists when the receiver attends to only selected parts of the

message – a frequent occurrence with oral communication.

Value Judgments -- Value judgments are influenced by the degree to which a

message reinforces or challenges the receiver’s basic personal beliefs. If a

message reinforces the receiver’s beliefs, he or she may pay close attention and

believe it completely, without examination.

Source Credibility -- If the receiver has little respect for the source, he or she may

disregard the message. The receiver considers both the message and the source in

making value judgments and determining credibility.

Overload -- Overload is occurring when a receiver is experiencing more

information than she or he can process.

Lack of Feedback -- The source may need to send another message that depends

on the feedback he or she receives from the source. If the source receives no

feedback, he or she may not send the second message, or be forced to send the

message again.

33

COMMUNICATION SUMMARY

♦ Emotions drown out facts

♦ Recognize and respond to feelings first, before dealing with logic

♦ Reciprocity is the key to having influence and being understood

♦ Face-to-face communication is usually the best medium

♦ People remember ideas they put to use

♦ Think through the other’s needs before you communicate to them

♦ When possible, start with agreement or a neutral position

34

Why is the customer always right even when the customer is

wrong?

• The customer is not always right, but the customer is always the

customer

• Don’t sell services to customers, solve problems—from the

customer’s perspective

• Customers don’t have problems, they have crises

PARADIGM SHIFT – TRUE CUSTOMER CENTRICITY

Customer is King !

Employee!

Customer is King !

ME !

Peers,

V en dor s

Peers,Vendor s YouYou

Your

Manager

You r

Manage r

Your

Direct

Report s

YourDirect

Repor ts

Peers,

Cust om ers

Peers,Cust om ers

35

You own your work area!

That’s what Visionary

Leaders do!

Empower Yourself And

Your Team

THE ALLEN MANAGEMENT SYSTEM WHEEL

36

DEVELOPING RELATIONSHIPS

Function: Organizing

Activity: Integrating Work

Segment: Developing Relationships

Section Objectives

On completion of this section, you will be able to:

♦ Complete a network analysis.

♦ Take actions to strengthen critical relationships.

Why This Section is Important

Most work gets done in organizations through informal relationships built on

mutual influence and trust. Completing this section will enable you to diagnose

and develop actions that will improve your ability to get important work done in

your organization.

37

Relationship Analysis Exercise

Completing a network analysis provides an opportunity to identify your personal

influence network and evaluate the strengths and weaknesses of important

relationships.

A network is a changing and informal set of cooperative relationships among those

people you need to accomplish your work.

Step 1. Identify six to eight people who are important to your success as a

manager. (These are the people you depend on to get your work done.)

Include all levels inside and outside your department.

Step 2. Once you have identified six to eight key people, name the tasks in which

they are involved. Rate the level of their importance in your completing

your task. Finally, rate the strength of your relationship.

Step 3. Identify two individuals with whom you could improve your relationship

and are important to your completing your task.

Step 4. Select a partner. Decide who is going to go first. Each person reviews

their list including key people in their network analysis.

38

RELATIONSHIP ANALYSIS WORKSHEET

Your manager

Name Task Importance Relationship

Your manager’s peers


Your direct reports


Your direct report’s peers


39

Your customers (Internal / External)


Your suppliers (Internal / External)


Yourself

Task Importance Relationship

Relationship Matrix

PoorPoor ExcellentExcellent

Relat ionshipRelat ionship

LowLow

HighHigh

Imp

orta

nce

Imp

orta

nce

MaintainMaintainI m prove!I m prove!

SocializeSocializeMinim izeMinim ize

40

Developing Relationships Activity

In the space below, identify two or three concrete actions you can do to improve

or maintain relationships with individuals in the “Improve!” or “Maintain”

quadrants.

Individual____________________

Action:

Individual____________________

Action:

Individual____________________

Action:

Individual____________________

Action:

Individual____________________

Action:

41

FROM CRM TO CLM!

CRM stands for Customer Relationship Management. It is a strategy used to

learn more about customers' needs and behaviors in order to develop stronger

relationships with them. After all, good customer relationships are at the heart of

business success.

There are many technological components to CRM, but thinking about CRM in

primarily technological terms is a mistake.

The more useful way to think about CRM is as a process that will help bring

together lots of pieces of information about customers, sales, marketing

effectiveness, responsiveness and market trends.

CRM is the overall process of building and maintaining profitable customer

relationships by delivering superior customer value and satisfaction.

CRM is a customer-oriented management concept for the improvement of:

• Customer acquisition

• Customer retention

• Customer value

to increase company profitability.

Did you know…

� It costs 5-10 times as much to acquire a new customer as it does to retain an

existing customer

� Long-term customers buy more, take less of a company’s time, are less

sensitive to price, and bring in new customers

� A 5% increase in customer retention can increase profits 60-100%

Moving beyond CRM, we move to an approach where we think in terms of a life-

time commitment to the customer - enter the concept of Customer Life-time

Management.

THE CUSTOMER IS A

LIFELONG COMMITMENT –

ONE DAY AT A TIME

42

SMART GOALS

Specific Drill down to focus efforts

Measurable By you and by others

Aligned With overall objectives

Realistic May be a stretch,but still attainable

Time-bound Definite time-frame

Suggested Format for writing a SMART Goal

(Modify appropriately to suit the situation)

In the next (Time Frame) I will (Action to be taken with Descriptor /

Qualifier) at least (Minimum Condition).

Example:

In the next 6 months I will exercise for 45 minutes at least 3 times a

week.

43

My SMART Goals

o

o

o

o

o

44

45

KEY POINTS WORKSHEET

List three points in today’s presentation that were most important to you and

explain why you chose them.

1.

2.

3.

Customer Centricity - Manual & Workbook

Documents

allen associ

cu st om

internal external

task importance

network analysis

key takeout

ire ct

po rt