Customer Service New

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Customer Service Excellence

How to Deliver ConsistentlySuperior Customer Service

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A little history…

• 2003: 10 slides – 8 pages

• 2006: “Consistently superior customer service

is better that outrageously great service every

now and then.”

• 2006: Merrill Lynch, Verizon, Abbott Labs, GE,

Mayo Clinic, Bank of America, State Farm…

• 2007: 43 slides – 40 pages

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Game plan for this session:

• We’ll go until about 4:45 PM -- frequent breaks

• I will not waste your time

• Tons to cover --- 90% is in the book

• Need your active participation, questions and contributions.

• Push yourself hard, this should be a challenging program.

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The Goal of this class:• I read more than 40 books (8,600 pages) on customer

service, downloaded everything I could find on the net, and read over every major research study I could get my hands on.

• In the next few hours I am going to give you a crash course on all of the top ideas about how to build and sustain an organization that delivers consistently superior customer service.

• Much of it will be redundant, but the idea is to expose you to the best-of-the-best in customer service and let you look for the clear and unmistakable pattern.

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Some Thoughts on Customer Service…• Current Service Levels• The Web has Changed Everything• Historical Competitive Advantages• Key Differentiator• Difficult to Establish and Sustain• Very Difficult to Copy• Creates an Unfair Advantage• Builds Unrealistic Loyalty• Destroys Commodity Sales

• External AND Internal

Workshop• Read pages 2 & 3 • Answer question

on page 3

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10 Ground Rules for Great Service

1. YOU are the company

2. Remember your own experiences

3. Let them think you have all the time in the world

4. Cherish the customer who complains

- They think complaining won’t do any good

- Complaining can be difficult

- People feel awkward or pushy

5. Take first-person responsibility

4

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10 Ground Rules for Great Service

6. Find out how you are doing

7. Make sure happy ending really happen

8. What have you done for me… today?

9. Every interaction ends with a “Thank You”

- Show up on time

- Do what you say you will do

- Finish what you start

- Say “Please” and “Thank You”

10. Superior customer service doesn’t just happen

5

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Next to your product itself, excellence in customer service is the single most important factor in determining the future success or failure of your company and no matter what your company does, you are in the business of providing superior customer service (internal and external).

Let’s get right to the point…

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A few good quotes…

• “We are not in the coffee business serving people… we are in the people business serving coffee.” Howard Schultz, CEO – Starbucks

• “We took our eye off the ball and it damn near put us out of business. We forgot that the customer pays ALL the bills. We are here to serve them, help them, support them. Not keeping that at the front of our minds almost cost us everything.” Lou Gerstner, CEO - IBM

• “I see us as being in the art business. We are here to give people a wonderful experience. We deliver art, entertainment and mobile sculpture, which, coincidently, also happens to provide transportation.” Bob Lutz, CEO – General Motors

• “The very future of our company hinges on our ability to understand and serve our customers better than any other firm. It is all about customer service, the products are actually secondary.” Jeff Immelt, CEO - GE

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Let’s look at your market: The bad news…• Strong competition

• Difficult to differentiate

• Highly informed consumers

• Exceedingly high expectations

• Cost of acquisition of a targeted customer is high

• Cost to satisfy is higher

• Cost to replace is 5x higher

Good News: Value of a delighted customer… priceless!

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To have an effective Customer Relations program, these three statements MUST be true for your organization:

1. Customer satisfaction is a philosophy and a commitment by

top management.

2. Customer satisfaction is an attitude and atmosphere that

prevails throughout the entire organization.

3. Customer satisfaction is a program of ACTION within the

organization.

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The Five Levels of Customer Service

I don’t really care

Why try harder

Good enough is good enough

That’s nice

Wow – you guys are awesome

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Level 1: I Don’t Really Care

• May or may not understand the value of customer service.

• If they do any training at all, it is sporadic and done internally by untrained and unqualified managers.

• Will remain in business only so long as the percentage of first time customers remains very high.

• Growth, if any, will be minimal.• Without consistent new product introduction and

massive advertising dollars spent (not to mention employee turnover) this company will eventually lose market share and experience decreased profits.

6

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Level 2: Why Try Harder?• Views customer service as important and halfheartedly

attempts to create the perception that they are service oriented and customer friendly.

• Must also largely rely on first-time business but will experience some repeat customers due to price or location.

• Customer loyalty is not being established and the value of the long-term customer is not being realized.

• Growth is minimal with employee turnover high and little opportunity for advancement.

• This company tries but just doesn't get it.

6

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Level 3: Good Enough is Good Enough• Understands the importance of customer service and knows that

rendering quality service will create sales opportunities. • In various ways they advertise they "have" customer service and view

good service as value added for the customer. • A greater emphasis is placed on turning first time business into return

business. • Sales increases are often up and down and unexplainable however

year end profits show a pattern of growth. • Market share is respectable however dramatic increases in market

share and sales can be achieved when a greater emphasis is placed on employee/management programs, training and when a team environment is established and maintained.

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Level 4: That is Really Nice• Does a whole lot right and at the same time is constantly seeking ways

in which they can do better. • Establishes high standards, achievable goals and objectives and

develops useful means of communication between management and employees which have a direct positive effect on the customer.

• They have a consistent positive pattern of growth and are considered to be a good company to work for and do business with.

• Senior management is involved and a high priority is given to quality training and development for managers and front-line employees.

• An environment that allows for a feeling of achievement, enjoyment, growth and earned recognition is created and nurtured.

7

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Level 5: Wow – You Guys are Awesome• This is the successful company of the future which realizes

they are only as good as their employees. • Management is obsessed with listening to and

communicating with employees and customers and brings them into the loop.

• Management strongly believes that if they are going to ask their employees to create a superior and pleasant experience for their customers, the management team must create this same superior and pleasant experience for the employee.

• They understand that employee loyalty, teamwork and customer service are essential for continued growth and are relentless in their efforts.

8

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Level Access Experience Price Product Service

1&2Consumer rejects the Company

(Losing market share)

3Consumer

Accepts the Company

(On par with competition)

4Consumer Prefers the Company

(Differentiated)

5Consumer Seeks

Out the Company

(Dominant)

Block my way, hassle me, keep me waiting, make it difficult to do business with you.

Make it easy for me to do business with you — fast and efficient.

Make the interaction easy and convenient for me.

Give me a solution; help me out in a bind, be my hero.

Dehumanize me; disrespect me, ignore my needs, treat me poorly.

Respect me; treat me like a human being, listen to my needs

Care about me and my needs, take care of me, show genuine concern.

Establish intimacy with me by doing something no one else can. Treat me special.

Be inconsistent, unclear, or misleading in your pricing.

Keep the prices honest; don’t jack them up or offer big savings when there are none.

Be fair and consistent in your pricing. I am not necessarily after only the lowest price.

Be my trusted advisor; I will let you make my purchases for me.

Offer me poor quality, services I cannot use and make me wait for them.

Be credible in your product and service offerings.

Be dependable in your selection and in-stock position, so I can rely on you when I am in a bind.Inspire me with an assortment of great products and services I did not even know about.

Give me a reason to tell everyone I know to… stay away from your company!

Accommodate me; bend over backward sometimes to show me you care.

Educate me when I encounter a product or situation I don’t understand.

Customize the product or service especially for me. Give me a “Wow” experience.

How your CUSTOMER sees the five levels...

I can’t stand you

I accept you

I prefer you

I trust you

8

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Quick Workshop

• Look carefully at the chart on page 8

• Circle the levels you honestly believe your organization is operating at right now

• Read pages 9 and 10

• Answers the two questions at the bottom of page 10

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Financial Performance

Quality P/S &

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training & Development

Fair Compensation

CR=104.12

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

Do the workshop on page 12

11

…and TolerateNothing

Less

Here is how to score it…

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Workshop on page 12

10 = Agree Strongly

7 = Agree Somewhat

5 = Not Sure

3 = Disagree Somewhat

1 = Disagree StronglyWe will use this 10-point scale for all of the workshops today

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What does your score mean?

• 9-10 = Excellent

• 7-8 = Good

• 5-6 = Concern

• 3-4 = Caution

• 1-2 = Emergency

On all of the audits throughout the session today, please put a star next to any score of 5 or lower.

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Time for a 15 minute break?

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Customer Satisfaction drives Customer Loyalty… and Customer Loyalty drives Profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Customer Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best customers…Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

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How do the Best Companies Deliver Superior Customer Service?

• From a study of more than 3,000 companies — narrowed down to the top 101 companies that profit from customer care — here are the top five factors that were the fundament tactics used to build and manage extraordinary levels of customer satisfaction and loyalty.

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They listen to, understand, and respond (often in unique and creative ways) to the evolving needs and constantly shifting expectations of their customers. (VOC)

14

Extreme Customer Focus

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They establish a clear vision of what superior service is, communicate that vision to employees at all levels, and ensure that service quality is personally and positively important to everyone in the organization.

14

Shared Customer Service Credo

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They establish concrete standards of service quality and regularly measure themselves against those standards, not uncommonly guarding against the “acceptable error” mindset by establishing as their goal 100% customer satisfaction performance.

14

Clear Standards + Accountability

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They hire the best people, train them carefully and extensively so they have the knowledge and skills to achieve the service standards, then empower them to work on behalf of the customers, whether inside or outside the organization.

14

Customer Focused Employees

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They recognize and reward service accomplishments, sometimes individually, sometimes as a group effort, in particular celebrating the success of employees who go “one step beyond” for their customers.

14

Reward and Celebrate Success… Deal decisively with mediocrity

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To Summarize:

1. Extreme Customer Focus

2. Shared Customer Service Credo

3. Clear Standards + Accountability

4. Customer Focused Employees

5. Reward & Celebrate Service Success

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Fundamental Customer Expectations

• Reliability: The ability to provide what was promised, on time, dependably and accurately. (Honesty)

• Assurance: The knowledge and courtesy of employees, and their ability to convey trust and confidence. (Competence)

• Empathy: The degree of caring and individual attention provided to customers. (Concern)

• Responsiveness: The willingness to help customers and provide prompt service. (Attitude)

• Tangibles: The physical facilities and equipment, and appearance of the personnel. (Professionalism)

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OPUD vs. UPOD

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Understanding the Customer-driven Company

• Create a customer-focused Vision• Flood the organization with VOC• Become an expert on delivering superior

customer service• Turn your employees into customer service

champions• Destroy any barriers to superior service

performance• Measure, measure, measure• Walk the talk

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The Service 500

7,000 leading companies…

down to the top 500 in America

Score each factor on a scale of 1-101 = this does not describe us at all

3 = we do this very rarely

5 = we do this sometimes

7 = We do this quite often

10 = we do this all time, this describes us perfectly 

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Pages 16-17

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Do you treat different customers differently?

• Not every customer is the same• Some customers demand unique

services• Some customers are worth delivering

those services to them.• Some customers would be much

better as your competitor’s customer!

Read Page 19: The Service Edge

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The key to service consistency: MEASUREMENT

• Begin with your clear service strategy

• Measure frequently (once a month… once a quarter?)

• Ask open-ended questions

• Collect quantitative and qualitative data

• Benchmark your findings

• Make the results visible

• Make the results employee friendly

• Make sure they are believable

• Make sure the results are used

20

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Top Customer Experience Practices

From a global research study of the “Best Practices” of the top service

companies in the world

21

Workshop page 21

1 = Strongly Disagree3 = Somewhat Disagree5 = Not Sure7 = Somewhat Agree10 = Strongly Agree

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Workshop• Carefully read the case studies on pages 22-25

• Jump to the back of the workbook and read the HBR article

• Go back and look through the entire book for key points.

• Look back over all of your scores for patterns. Do all of the

high scores and low score seem to be in the same areas?

• Complete the workshop on pages 26 - 28.

• Be brutally honest.

• Put in lots of detail. Be VERY specific. Give realistic and

actionable suggestions. Take this very seriously.

• This should take you at least 30 minutes.

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• john @ johnspence.com • www.johnspence.com• There are also some excellent short articles and

my recommended reading list on my blog – which you will see right on the home page.

Thank you very much!