Comments

Steve,

Service used to be a big decision maker for me in making a purchase; now it's not. Why? So many of the companies that used to provide good service began to cut costs and their staff for the greater good of wall street or private equity. Even on significant purchases, I found that I was having a difficult time to get once "trusting" companies to support and service the products they sold.

For example:

A surround sound system with tv that I bought a few years back because of the trusted "local" name (company has been in town for 2 decades). The install was terrible, the repair dude couldn't fix the tv shortly after install, and they chose to let me live with it. Wiring was shoddy and I began to run my own components because of the problems. I should have gone to WalMart, Best Buy, or some other outlet and saved hundreds of dollars in the name of service.

A music shop sold me an expensive amp a couple of years back. The clean tone channel on the amp had pops and hisses. I demonstrated this to the dealer after having the amp for 7-8 days. They stated that it may have been a tube and told me to replace it; seeing as I had the amp right there, I bought a new tube and put it in. The new tube did not fix the problem. After charging me for the tube and letting me install it in front of these servicemen (which felt strange), I told them they could have the amp back. They charged me a 15% restocking fee and I upgraded to another amp. I've never made a major purchase from that store since.

Many times, when it comes to service and blogging, I find many of the ideas elusive. The only company that I know of that services its products is Apple. If the techs can't figure out issues over the phone, they'll send you to the store. Don't you find it odd that, as consumers, we are encouraged to buy service plans to take care of the inevitable? What ever happened to the manufacturer standing behind its product?

So what do I do now? I research the products and give my money to the lowest bidder. I make sure that I can get parts and they're readily available before I make purchases. Frankly, I don't rely on the source much for service anymore (retailers); I'll deal directly with the manufacturer. The internet has allowed consumers like me to bypass service completely in many cases; so has the Pawn shop.

Posted by The Joker at July 24, 2009 6:03 PM

That is so true - as a customer/client/consumer - I expect hich customer service level on all my interactions with companies that sell services, goods, etc. There are several examples: The Airlines, The Cable/Satellite TV, The Cellular service providers, etc BUT the one that lacks 100% customer mindset service - is the Healthcare industry. WHAT A GREAT OPPORTUNITY TO SUCCEED IN AMERICA.

Posted by Juan at July 24, 2009 7:51 PM

Steve - I do a heck of a lot of training for front line employees on what we now call Exceptional Customer Service. The company has binned the term ‘customer service’ long ago because ‘customer service’ has been done to death to the extent that it has become boring. It is definitely some differentiator that customers look for these days.

These are fantastic words of common sense and pragmatism from The Joker who sums it up perfectly. I am 100% with him:

“Frankly, I don't rely on the source much for service anymore (retailers); I'll deal directly with the manufacturer. The internet has allowed consumers like me to bypass service completely in many cases”

Steve - If I may be allowed to take this a wee bit wider than individual suppliers and look at our towns in Britain, am I the only person who is completely bored with the ‘clinical sameness’ in town centres and high streets across the length and breadth of Britain? – Is it the same in the US? The same principles and cultures you are talking about therefore must apply to town planning – where is personality, difference and uniqueness in the planners of shopping centres? – Seems to me they are off the shelf designs with very little imagination or creativity

vive la difference says I.

Posted by Trevor Gay at July 25, 2009 4:30 AM

Juan - well said indeed. Customer care in healthcare is a massive challenge here in the UK too. Sadly there are still a few people who act as if customers (patients) should remain passive recipients of care provided by the great and good who cannot and must not be challenged. Happily those folks are now in the vast minority but rest assured that was the explicit culture when I started work in healthcare about 500 years ago :- ) - I have to sadly report I still occasionally hear people talk of 'THOSE GOOD OLD DAYS'

As a bit of light relief you may appreciate this that was given to me many years ago my my best friend who is a Doctor!

"The man arrived at the Pearly Gates and found a queue a mile long and took his place at the back. The day was hot and tempers were getting frayed as the delay lengthened. After a while an old man dressed in a long white coat, sporting a long white beard and carrying a black bag marched to the front of the queue through the Pearly Gates and into heaven. The Angel whose job was to guide the queue calmed everyone’s rising anger by explaining; "Don’t worry - that's just God, sometimes he thinks he is a doctor!”

Posted by Trevor Gay at July 25, 2009 4:44 AM

There are so many examples of bad customer service ... but I still think that good service is not enough. It's not nearly enough. It won't differentiate you, only make you "not bad." So, let's train people on customer service, but, by all means, not stop there.

As for Trevor's comment on the sameness of town centers: In the US, a friend of mine called it the "United States of Generica." The real estate departments of the top national chains are out leasing space in the same malls, and every place ends up having the same stores, the same look, the same generic experience.

Posted by Steve Yastrow at July 25, 2009 10:53 AM

Juan and Trevor,

Kudos to your posts! Steve...Generica is great as a sameness to many businesses in the States.

Juan----In the States, at least right now, you're better off dying than being stuck in and by the healthcare system. Very little dignity is left with hospitals that choose to keep people alive (for money's sake) than to let nature take its course. When my grandfather was dying, until the executors got to the hospital and made the executive decision to pull the plug and quit the treatments, his dying lacked dignity. The hospital would take him to PT and raise his arms and legs in a wheel chair and state to family members, "...look what he can do"; they were just raising his limbs as he was in a coma. My father said the entire ordeal was an embarrassment to his father and the family. When they told the hospital to stop, they put my grandpa in hospice and allowed him to die. The sad thing was that the hospital had another lined up right behind my grandpa, and at 10's of thousands of dollars a day, the exploitation is unreal. No wonder we're jacked up as a healthcare system. There is great opportunity there, but good luck getting by Congress and their billions of dollars in voting money.

The best thing anybody can do is have a living will and preventive health. Outside of that, just hand over your pocket book to the biggest fleecing of Americans...our healthcare system. Trevor has posted much on the Simplicity Blog (www.simplicityblogitk.com---just click his name) about NHS and he is familiar with a much better system than ours. We suck as a nation in healthcare.

Posted by The Joker at July 25, 2009 3:29 PM

Steve
Couldn't disagree more. I think this was becoming more true a few years ago but now direct customer service has declined to such a level that great service is memorable and a HUGE differentiator. I think we need to be careful about believing that because we can get information from third parties and on our own much more easily, we actually want to. Sure it's great I can google how to program my crappy Motorolla phone but I'd rather have a real live body walk me throught it - or better yet an iPhone....

Posted by Kevin Toderel at July 25, 2009 9:21 PM

To me this whole customer relationship thing is kind of a which came first debate. I work in an industry where free and unlimited would fail to satisfy the needs and expectations of many of the folks I speak to. When it costs me money to subsidize their service, I could be the best bankrupt company on the planet. If given the choice between building a relationship with the external consumer customer or the internal producer "customer", I'll build it with the front line team. Take care of the people who take care of the customers is a strategy that has placed many companies...Southwest and Zappos for example into top performing companies. They create the value and experience in relationship or loyalty marketing that keeps them returning for more.

The customer relationship is indeed changing, perhaps the new paradigm should be a laser like focus internal customer relationships...no wait, smart and profitable companies are already doing that. Leadership is a marvelous thing!

Posted by Dave Wheeler at July 25, 2009 9:47 PM

This an interesting philosophy. I'm sure many organizations preach good customer service, but very few follow up on the strategy. I think excellent customer service is still a way to be unique amongst your competition because it's something you have to be dedicated to every single day.

Posted by Promotional Products at July 25, 2009 10:54 PM

Well, I can't disagree with your point that you cannot stop with Customer Service to differentiate your products/etc. But, like the examples above, I cannot accept the premise that companies have C.S. down. Nothing could be further from the truth.

However, I believe WE are the problem. We, as a society have voted for Lowest Cost, over Quality and Service time and time again. We have forced local hardware stores (who provided quality C.S.) out of business for the cheaper National Chains (Where kids often provide poor C.S.). We have forced the closing of C.S. based Department Stores and Specialty shops for the falling WallMart prices. The list goes on and on.

Will YOU pay a premium for products if they come with higher quality and service. Okay, now do you think your neighbors will?

WE have created the cheap labor/cheap products market of Asia. We buy that crap.

Posted by Dave Holland at July 27, 2009 8:56 AM

Steve, "United States of Generica." The real estate departments of the top national chains are out leasing space in the same malls, and every place ends up having the same stores, the same look, the same generic experience."

I completely agree with you. Building your competetive advantage is the key to differentiating yourself from your competitors. This should mean that you provide some type of unique service or product that appeals to or fixes a problem in society. A great example of this is from one of Toms previous posts on RyanAir. There competitive advantage is their extremely inexpensive prices. Many people that have traveled throughout Europe hate the experience of flying RyanAir, but do it anyway to save tons of money.

Every company has customer service today. However, I do agree with the comments stating it is very difficult to find exceptional customer service because of cost cutting methods. Customers will usually buy the product that is unique, but when there are two similiar competitors excellent customer relations will be the deciding factor.

Posted by Ryan Freed at July 27, 2009 9:22 AM

Steve,

As the economy continues to be mired in the mud companies continue to cut costs. And the first place is always employees whether it is a direct layoff or their benefits are reduced. As fewer employees handle more work customer service suffers even more than in the good economy.

I agree with the Zappos and Southwest idea of taking care of the employees who take care of the customer.

I work in a service industry where our work is performed in the customers home. It is more critical there than in other industries where the customer has the opportunity to walk out of a store.

Customer service may not be the only thing that is important but it is certainly on top of the list of priorities.

Posted by Bill Yeadon at July 27, 2009 3:39 PM

I think it is paradoxical that my experience in this area has continually declined during this downturn at a time when one would think the retailers would be bending over backwards to serve. It is to the point that, when good occurs, I am amazed and compliment the retailer. I didn't mean to lower my expectation bar, it just happened. I have asked a few people why they have seemed to give up rather than rise up and they look at me as if I have two heads. My family does a great deal of business with Zappos and they have definitely found the special sauce. It will be interesting to see what their pending merger does to the recipe.

Posted by David Porter at July 27, 2009 5:08 PM

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What surprises me is that we are surprised when companies like Zappo's are successful. I know nothing about the company but they clearly care genuinely for their employees; this makes the employees feel good; hey presto they enjoy their work; they produce results; they work for great leadership that operates within a set of cultural beliefs including words like humble. This is clearly rocket science to the many companies that are less successful. Great leadership as Dave Wheeler says is a marvelous thing. And I would say very simple.

Posted by Trevor Gay at July 27, 2009 5:33 PM

Tom Asacker's terrific blog, acleareye.com,had a link to the letter Zappos CEO Tony Hsieh sent to the Zappos team http://blogs.zappos.com/ceoletter. It gets directly to the question as to what the Amazon acquisition might do to the Zappos culture. Read the first paragraph or so and was reminded of what great leadership sounds like...it's pays attention to, respects, and models the companies values and culture. Credibility is a leaders greatest capital and it sounds as if Zappos leadership has a great deal of it banked!

Posted by Dave Wheeler at July 27, 2009 6:59 PM

Tom Asacker's terrific blog, a cleareye.com, had a link to the letter Zappos CEO Tony Hsieh sent to the Zappos crew announcing the acquisition. After reading the first paragraph or so I was reminded about what real leadership sounded like. Many leaders "talk" about culture and values...others respect it and live it...as Mr. Hsieh does! ordering viagra 100 mg

To me, a leaders greatest capital is credibility. Seems like the Zappos leadership team has a bunch of it in the bank As Trevor points out, the science of rockets its not!

Posted by Dave Wheeler at July 27, 2009 7:23 PM

The area that fascinates me about this is what happens during the growth of companies (either acquired or organic). My perspective is IT support but I am sure it applies elsewhere

Often small companies are strong at customer service - usually this is realationship based. A few good people know their customers well and will go the extra mile for them. Usually the emotional side is strong and the process side is weak (but probably not needed)

As a company grows this is simply not scaleable. Products are more complex and require specialisation. Global customers come on demanding global 24*7 coverage etc. The org by definition must put in more processes and systems to function. Targets and goals start being set What tends to happen here is the emotional side takes a dip. The org is now stong on process but has lost the emotional connection. Very few businesses can carry both forward at the same time.

Sometimes there is a change of leadership in this. The new person brings in all new processes and initially there is some success in improving things (usually back upto a basic level). The problem occurs when you try to improve from there - leadership concentrates on more targets and driving more of the same. That just ends up in a spiral of madness (at least for the people of the ground!) as more and more effort is put into the same thing with diminishing return.

It takes something different again to move to the next level. Emotional and process engagament

When I have presented this type thing buy in isn't the problem. In fact everybody violently agrees - the problem is that most leadership is not capable of delivering this - it requires dealing with intangible, emotional subjects. Leaders who have clawed their way up based on facts an rationality look physically ill when you talk about these topics.

Posted by PaulH at July 28, 2009 2:26 AM

"Leaders who have clawed their way up based on facts an rationality look physically ill when you talk about these topics."

Fantastic comment Paul thank you - you've summed up perfectly the main reason there are so many ineffective leaders and therefore failed companies. Those leaders forget that we ordinary folks are not rational, logical thinking, automatons who will fit neatly and quietly into some artificial box prescribed for us by emotional-less leaders. We are all gloriously unpredictable and all the best leaders recognise and work with that splendid diversity.

Posted by Trevor Gay at July 28, 2009 5:12 AM

Paul - you may be interested in this extract from an article I wrote on customer care a couple of years ago.

Stage 1 Passion

The owner of the company starts small with a vision to establish the business. There is real passion at this stage because the owner has to work to eat. It will be a struggle to make any money. This is about making your reputation.

viagra 100mg pfizer Stage 2 Established

The owner sees the business is meeting a need and begins to break even and maybe make some money. More work is generated and the business is becoming established. The owner is still very hands on - driving the business.

Stage 3 Growth

The reputation of the business grows and more work is generated. The owner decides it is time to get some help and employees are recruited to assist. The owner is still heavily involved. The business is becoming profitable.

Stage 4 Expansion

Now things are buzzing and the owner decides that it can expand. Staff recruitment takes off, business is growing and everything looks great. The owner is now slightly more removed from the front line and customers and has people doing ‘all that stuff.

Stage 5 Comfort

The business is now comfortable in terms of profits and growth. The owner now has a monitoring role because the senior management team takes care of the day to day business including customer care.

Stage 6 Complacency

Because things are now ‘comfortable’ complacency sets in. Standards provided to customers that were hugely important in the earlier stages seem to have slipped because the business is now big and less responsive to the changing needs of customers.

Stage 7 Vulnerability

Whilst standards have slipped existing competitors and new businesses have emerged as serious rivals. You have become vulnerable. You start to notice profits are reducing and repeat business is not happening. Your employees are not as happy as they were. The owner is now far removed from the everyday business – and may even be oblivious to what is happening.

Stage 8 Arrogance

The business ignores the obvious and growing competition and refuses to learn from what is happening – a classic case of burying your head in the sand. The need for change is now smacking you between the eyes but refusal to accept the inevitable seems to be the overriding culture.

Stage 9 Death - RIP

This is what happens when we refuse to listen to what our customers are telling us. Customers are our heartbeat and if we do not listen and respond to what our pulse is telling us then the outcome is sadly inevitable. The owner – now completely out of touch – is heard to say ‘What went wrong?’

Summary

I would suggest that being closely in touch with our customers is important throughout all the first 8 stages and arguably more important from stage 5 onwards. Sadly many businesses seem to lose touch with customers once they have become comfortable.

Posted by Trevor Gay at July 28, 2009 5:19 AM

I agree that customer service is "basic business hygiene" - I compare this to quality in the auto industry - it's just expected and not a true method of differentiation. That being said, I am shocked on a daily basis at how many businesses lack solid customer service. I am consciously trying to do business with product or service providers who provide solid customer service, however this is more difficult than it sounds!

Posted by John R. Sedivy at August 5, 2009 9:13 AM