All work is part of a process. In businesses the intent to generate revenue is the process of delivering a product or service that a customer is willing to trade real dollars to acquire. Your customer service processes and the people who deliver them are the only real differentiator that you have with your competition. The most important aspect of any job is to create and keep loyal customers. Regardless of how distant ones’ work is from the end customer, that specific work impacts the overall experience the customer has with your business. Every step in the process of serving an ultimate external customer has an internal “up-stream” supplier (i.e. sales, service finance) and an internal “down-stream” (parts, operations, or collections) customer. This process works in either direction between leadership, departments or personnel each having the opportunity to be the supplier or the customer.
Customer Service Equals Revenuen
All work is part of a process. In businesses the intent to generate revenue is the process of delivering a product or service that a customer is willing to trade real dollars to acquire. Your customer service processes and the people who deliver them are the only real differentiator that you have with your competition. The most important aspect of any job is to create and keep loyal customers. Regardless of how distant ones’ work is from the end customer, that specific work impacts the overall experience the customer has with your business. Every step in the process of serving an ultimate external customer has an internal “up-stream” supplier (i.e. sales, service finance) and an internal “down-stream” (parts, operations, or collections) customer. This process works in either direction between leadership, departments or personnel each having the opportunity to be the supplier or the customer.
Internal customers and suppliers are entitled to the same level of respect and service as external customers. The critical moment of quality customer service for internal customers is the hand-off between an internal supplier (service) and internal customer (sales). If we are going to respect and serve an external customer to the extent we create customer loyalty, all workers must be dedicated to serving the internal customers.
In the retail culture each interaction with a customer, internal or external, is a “moment of truth”, it cannot be repeated and it will have a lasting impact in the mind of the customer. Every behavior that impacts a customer has consequences regarding their view of the level of and focus on customer service. The future behavior of the customer depends on the consequences of their past and present experiences with your company.
The lack of effective, efficient customer service is expensive, in terms of real dollars, to an organization and impacts the bottom-line. The average business spends six times more to attract new customers then it does to keep old ones. Customer loyalty is worth 10 times the price of the average purchase. Businesses having low service quality average only a 1{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} return on sales and lose market share at an average rate of 2{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} per year. Business with high service quality average a 12{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} return on sales, gain market share at the rate of 6{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} per year, on average, with significantly higher prices.
The lack of effective, efficient customer service has a negative impact on the customer base and acquiring new customers. 4{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} of unhappy customers complain, 96{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} of unhappy customers go away angry without complaining. For every customer complaint, there are an average of 26 more people with problems, 6 of these problems are severe. Of those who complain, 56-70{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} will do business with the company again, if, the complaint is resolved. 96{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} will do business again if the complaint is resolved quickly, at the moment. The average person who has a complaint tells 9-10 people. 13{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} tell 20 or more people. Customers whose complaint has been resolved tell 5-6 people. Only 4{bc770528c56b51ed6dd7665ec4a0eed8a5d76f626e68f6a7a51e72831d0a290e} of business less-than-satisfied customer complaints reach a person who can do something about it.
Why Excellent or “top-box” customer service is rare? Employees do not know the basics of customer service. The “moments of truth” are not properly identified or managed well. The measurement and reward system does not compensate for customer care. The organizational culture does not value and support customer service. The procedures and policies do not support customer service. Leadership does not value the customer and the intent behind customer service. In other words it means that leadership does not practice customer service internally between departments and as a result their actions become the norm or model.
It is a challenge when customers and personnel often lack candor and the willingness to tell the truth about their dissatisfaction. Business environments don’t make it easy or a feeling of being safe to complain both for the external and internal customer. They do not know how to register a complaint and they believe it will not do any good because they fear the service provider will retaliate.
A customer complaint has two components – the task problem and the personal or relationship problem. Fix the customer relationship problem and then the customer problem task problem. The reasons behind customer complaints are well known and easily observed.
-Lies – Blatant dishonesty or unfairness by the supplier employees
-Disrespected – Customers are seen as “stupid” or dishonest and dealt with accordingly by the suppliers people
-Broken promises – Careless or mistake-prone service, not showing up as scheduled.
-No commitment – Employees who lack the desire, power or authority to solve basic issues.
-Waiting – Making people wait in line – too few lines or staff to serve the customers
-Rote service – Going through the motions with no heart or soul, emotionless, impersonal service.
-Silence – Do not bother to communicate in full with customer
-Bare minimum – Not taking the extra step, doing the least amount of work, absolute minimum of energy to meet the customers wants
-Disconnected employees – clueless employees who do not know the importance of customers to the organization, do not have the business acumen. Do not have the important answers to questions and appear not willing to learn.
-Other priorities – “not my job”, ignore customer, excuses, personal issues a priority over serving a customer.
You ask yourself what I should do now. First, within the business you must create a culture of high expectations internally as to the value of excellent customer service. If you don’t treat each other respect internally how do you expect them to treat the external customer. You must have a culture built on trust from leadership and where it is safe for people to express their concerns without being perceived as whining. People will express their concerns when they know it is safe and leadership will take positive action to resolve. The critical elements in caring for the customers are when all individuals of your company have an appropriate customer caring attitude for each other it will then reflect to the external customers because it is the standard for your operation. Individuals need to have the tools and time to deliver high quality customer service. Individuals need to be supported by procedures and policies that encourage caring for the customer.
There is a culture that values the customer and the attitudes and actions by workers that leads to high quality customer service. The leadership sees the customer base as a business asset and therefore supports what ever it takes to deliver high quality customer care to create customer loyalty both internally and externally. You take care of your customers you then create a retail environment where people want to work and where people want to buy. Customer service equals increased revenue.
Jim Jackson works with business leaders and teams to develop customer service culture for their organizations. Learn more about top Las Vegas motivational speaker & coach, Jim Jackson.
