Thursday, September 23, 2010

Words vs. Numbers

Here is the test. Which would you rather have for customer experience feedback?

A. On a scale of 1 to 5 how would you rate our customer service? Score: 4.7
B. Customer response:" I like your company and you did a great job with our service. Your service representative George took some extra time and fixed my information so it would be easier to purchase again.

Most people would choose B.

How about this one?
A. On a scale of 1 to 5 how would you rate our customer service? ( 5,000 responses) Score: 4.7
B. Customer Response (1): Your representative George did a good job. He was typing while I was talking so I had to repeat myself a couple of times. Your competitor ABC Corporation is now offering a change in their services for a much shorter delivery time. I wish you folks would offer that.

Now which one would you pick? Which one is best for George?

Words as you know are powerful. Most executives want numbers. They "role up" much better than customer comments and words. For your front-line representatives, they want words. Words truly change behavior. Numbers are valuable but there are too many for a front-line representative. If you want behavior change, look for words from your customers.


Monday, September 20, 2010

Award Ceremony in San Diego California

This week on Monday the North Texas Toll Authority won the "Presidents Award" from the IBTTA (International Tolling) for their Customer Driven Management program. The Chairman of the Board; Paul Wageman accepted the award on behalf of the NTTA.

The NTTA won an award because 1000's of their customers have chosen to participate in coaching, encouraging and giving advice to NTTA's front-line customer service and sales folks.

When was the last time your company won an award for being truly Customer Driven?
www.tamerpartners.com

PS: San Diego is amazing.

Thursday, August 19, 2010

Saving Money with Your Customers Help

If you are not focused on finding ways to save money then you must be working for a company on another planet. The economy stinks for most industries and the pressure is on to find ways to save money. Here is a unique concept, let you customers help you out.

Using Customer Driven Management, your customers can help do the work for you that either A. You do not have the time or resources to do it they way you really want it done or B. You do not have the time or resources to do it at all.

Customers not only can help but they want to help as well.

Here are some areas where you can reduce costs in your customer sales and service areas with CDM:

1. Customers can help you coach employees. You can raise the Supervisor to Employee ratios by adding the customers into the coaching process. You end up with more coaching for less cost. How much does a supervisor cost at your organization? If you could go from 1 to 15 to 1 to 20 or maybe 1 to 20 to 1 to 30, how much could you save?
2. Quality Monitoring- Let you customers into the QM process. At worst case you will still have to do compliance monitoring. Your customers can do everything else. How many QM people do you have? What if you only had to QM compliance issues? What could you save?
3. Focus groups and marketing research- Don't pay an organization to conduct expensive focus group work, use your customers. They are passionate, accurate, credible and infinite. How much do you spend in focus groups and customer experience research?
4. Mystery shopping- Use your own customers for mystery shopping. What better way to increase loyalty than to have your customers help you get better. Do you have a mystery shopping line item in your budget?

The North Texas Tollway Authority did all of they and won an award. On June 10, 2010, the NTTA put out the following press release in this link: June 10, 2010

Interested in winning an award and saving money? What value would that bring your company? What value would that bring your career?

Friday, July 9, 2010

Congratulations American Airlines!

Well done! American Airlines did it right. They made a mistake and they corrected it. I have been remiss in following up on my last blog. No excuses. American Airlines did the right thing. If you read my other blog, you can figure out what the problem was.

American Airlines changed their policy, gave me my money back and changed the airline ticket for me. Not only that they did it professionally. They wrote, they called (more than once...) and they stuck with it till it was done the right way.

Well done.

How you treat your customers matters. You know it and I know it. Our challenge is that we all think it but very few follow through and do something about it. The reason usually is we do not have enough time or money to really make any significant change. As a result, we wait, we settle, and we do not get any better.

Help is here.

We are embarking on a new program called the CDM Challenge. We partner with your customers to help you win the challenge. We take your toughest employees and put your customers to work helping them get better. That's right. Your toughest customer service employees, coached and trained by your customers. How do you win? Your employees get better! No additional hiring, no training just your most valuable asset: your customers helping you get better.
Want more information? Go to www.tpcdm.com/uwulhdl2krxc7avb

Wednesday, February 10, 2010

Customer Disconnect-American Airlines

Recently I had a very unfortunate experience with American Airlines. I purchased a ticket for my daughter and son-in law to fly to Dallas. Cost of ticket $110. I made the mistake of putting the wrong last name on my daughters ticket. Recently married and all, I put the wrong name. Being a Platinum member, I called in to the Platinum call center. After explaining my story I was told it would cost $150 to make a name change. Since the ticket was $119 dollars and I felt I had some "juice" because of my frequent flier status, I asked to speak to a supervisor. The rep put me on hold and came back and said the "supervisor will do it for a $100." Told her that this was not what I wanted and I wanted to speak to the supervisor. She came back with another bargain price of "$50". I told her this was not a used car sale and I wanted to actually speak to the supervisor.

He came online, I gave him my story. Told him I appreciated "getting on the plane first etc." yet this was an opportunity to help me out. It was after all a simple mistake and the same person. He read me the contract that allowed him to charge $150, offered to do it now for $25 and then lectured me on my responsibility to the airline and that I needed to step up to the plate and take responsibility for my actions. I paid the fine with a final thank you for helping me to "understand that I needed to take responsibility for my actions." I also took his name and number.

Needless to say I wrote a nice long letter to the SVP of the Airline and had it delivered to her office. This letter detailed my frustration over the issue, my complaint over being "taught a lesson by the supervisor", my complete lack of understanding of their customer strategy with their top frequent fliers and finally my burning desire to find someway to get some sort of expanded satisfaction for my $25 lesson they taught me in customer responsibility. (Note: I have had delusions of spending my next $10,000 in travel with other airlines, asking at least 200 people to purposely pick another airline for their next flight, see if I could get another Airline to give me elite status, changing my credit card mileage, making a commitment to myself to check Travelocity or someone else first rather than checking American first as I do now.)

Five days later I received an email response (not from the SVP's office) but from customer relations. It was a fast return but not pretty.

The email used three different fonts. It had a description of the contract with the airline, and a listing of the benefits of being a frequent flier. They actually told me the fee was a benefit because they give me many opportunities while buying the ticket to make sure I have no mistakes. The letter also expressed that they were sorry I had expected more from my preferred Platinum status.

Do you think that was the type of letter the SVP wanted to send? I hope not. She could not possibly have read it. As a matter of fact I will bet you all the money in my pocket that this was the last thing they wanted to send to a customer. Problem is that large companies because of their mere size get way too many of these types of complaints and because of the volume it must delegated most likely to a call center that responds. The bigger problem is that in virtually every call center the poorest employee will speak to more customers in one day than a SVP might speak to in a month or a year. The result is customers that get hacked off over $25 not because of the $25 but because they were treated poorly. Here are some of the factors that were missed:
1. I sent the letter to the SVP. Send it back from the SVP's office. SVP customer relations would have been okay.
2. Figure out how to use the same font. Just incredibly unprofessional. It was clear they were cut and pasting answers in. At least fake it better.
3. Show some form of empathy. Actually show ANY form of empathy. If they had said" Listen we understand. We could have charged $150 but we gave you the biggest break we give anyone... or the same thing we offer Executive Platinum...." I would not have liked it but it would have given me some pause.
4. Do not under any circumstances, remind a customer of their responsibility to you. They are not your children. Anger at an unfair situation in a business to consumer environment is nothing compared to furthering that aggravation by having not one but two employees teaching you a lesson.
5. Never negotiate through a lower level employee unless you are a car dealership where the customer expects it. Either empower the front line employee or just transfer the call.
6. Make your response match up to the customers complaints. We have enough people around us each day that do not listen to us. We expect business's that we give money will actually listen to us. They did not answer any of my real questions.

Ironically, I love American Airlines. This transaction flat out stunk. The question is how many other times has it happened? The real question for you is what happens when you have a customer problem? Do you really know what is being sent out to customers? If not, you better figure it out.

Monday, January 4, 2010

Customer Driven Management: Outsourcing

If you want to lower cost in todays sales and service world one of your first options is outsourcing. Whether within the USA or to some other country around the world outsourcing can lower your cost. In fact, lowering your cost is the number one reason to outsource. This is followed closely by a desire to "leave the work to the professionals", focus on our core competencies, global/seasonal support issues and last but not least an expectation for better customer satisfaction and sales/profits. Not every company is willing to outsource. Many choose to retain sales and service as an offering directly from their employees.

Customer Driven Management is the "outsourcing" of your coaching, advice, instruction, feedback and encouragement to your customers. This form of outsourcing is open to companies who have chosen to outsource their operations and to those that have kept services in house.

Let's look at Customer Driven Management is through the lens of outsourcing results. In CDM:
1. We don't outsource to another company; we outsource to our customers.
2. We don't decrease our cost by paying another company less than it costs to do ourselves; we reduce our cost by enabling customer resources to perform functions we pay our employees to do for us today.
3. We do "leave the work to professionals; the professionals are our customers.
4. We do "focus on our core competencies"; we learn and change from the voice of our customers.
5. We do outsource for "global/seasonal issues; we engage customers everywhere and round the clock.
6. We expect better customer satisfaction and higher profits; we are closer and more connected to our customers. CDM impacts first call resolution, customer loyalty, employee turnover and customer experience. All of these areas increase customer satisfaction and impact the bottom line profitability of the organization.

The negatives of outsourcing ( We respect and appreciate professional outsourcing of all types. A well thought out decision to outsource combined with a professional delivery benefits customers and companies. It does have strengths and weaknesses.) are loss of control, risk of alienating pre-agitated customers with delivery of service from outside the company (international or domestic), and loss of connectivity with customers. Done right outsourcing can be spectacular. Done wrong and it is a nightmare. There are also many companies that would never outsource because they feel that the core competency of delivering sales and service is not something they are willing to give up or have reside outside of their company.

With CDM, there are no similar negatives to outsourcing to your customers:
1. Customers provide advice, instruction, feedback and encouragement. Each one of these increases company perspective and most important employee perspective. Customer advice received by an employee is credible and valued.
2. Only customers that seek to provide you with advice participate. There is no risk of agitating customers that do not want to participate.
3. This is the "ultimate" connection with your customers. They connect directly with your employees. Customers that are involved are more loyal and more likely to stay your customers. Customers providing input develop a vested interest in your company and your people.

Outsourcing your coaching to your customers is a win-win-win. Customers, employees and the company all win.