8 Strategies to Improve Customer Service

Every brand believes that its customer service is excellent. In reality, however, customer service across brands is mediocre. The experience is generally inconvenient, unpleasant, unsatisfactory, sometimes humiliating, and definitely expensive.

Good customer service is an integral part of business. It affects important brand and business objectives like customer satisfaction, loyalty, retention, repeat purchase, up selling and usage revenue. In light of these business implications, there is continuous pressure on brands to improve customers' perceptions of their service.

Improving customer service should not be that difficult. It can happen if organizations reconsider certain business strategies. In my opinion, the following eight strategies are very important to improve customer service:

1) Incorporate in business planning: The quantum and nature of service requirements are dependent on the activities of many other functions. Organizations should incorporate customers' service requirements into all aspects of business activities like product design, procurement, production, handling, pricing, communication, people, and culture. This would help organizations to prepare better for service eventualities and at the same time make customer service the responsibility of the entire organization.

2) Change attitude to service: Despite being a critical business activity, customer service function does not command the same respect that many other functions do. Many perceive it to be dirty, menial, and unpleasant. Service center appearances and resources are always far inferior, especially to that sales and marketing. If an organization treats the service function in this manner, customers are likely to get the same treatment from the service function.

Organization's attitude to service is a reflection of its attitude to customers. Management has to go far beyond providing mere lip service if the rest of the organization has to respect customer service and customers.

3) Integrate with marketing: Customers are an important marketing resource. They are the most credible brand ambassadors, their word of mouth recommendation is far more effective than all other marketing activities put together. Given its importance to marketing, organizations should make marketing solely responsible for customer care and if necessary create a separate customer marketing function to protect, nurture, and leverage its core assets (customers) far more productively. Integrating it with core marketing will also remove the stigma associated with service.

4) Shed the profit center approach: Many organizations try to make a profit through customer service. In a profit center approach, revenue-generating activities like sales of maintenance contracts, spares, and expensive call charges become more important than the aforementioned business objectives. Selling at low margins is normally the reason for the profit center approach. Attempting to increase profit through service would anyway not work as customers expect service charges also to be low if the product purchase price was low. Expensive service charges would also force customers to choose cheaper third party service providers.

Brand and business objectives should be the only purpose of the customer service function. The collective value of these business measures, in near term and long term, would always be higher than the profits made from normal service activities. A profit center or cost center approach, disregarding business objectives, would be detrimental to the brand.

5) Adopt retention pricing: Product pricing should include the cost of acquisition and the cost of retention including the service cost. Discounting the service and retention cost to make the sale price attractive would only force the brand to recover the lost margin through subsequent transactions.

It is wrong to believe that customers do not deserve good service just because the sale price was low. Every customer, irrespective of the price that he pays, expects good service. The product price should therefore, have a sufficient margin to meet those expectations.

6) Manage expectations: Customers have explicit and implicit service expectations. Explicit expectations are formed basis the claims and promises made by the brand at the time of purchase. The brand has complete control over explicit expectations. Implicit expectations formed basis the customers' perception of brand image, stature, reputation and the price premium they pay for a brand are far more difficult to gauge and manage.

Most often organizations measure only the explicit commitments. Failure to identify and measure implicit expectations is a big reason for the gap between its understanding of the quality of service rendered and customers' perception of the service received. Customers' perception of service will improve only when both these expectations met.

7) Recognize the role reversal: Brands make an emotional pitch to sell but provide service by the rulebook. Customers though, buy rationally but react emotionally to product and service failures. Recognizing this role reversal will help brands to appreciate the customer's pain better and adopt an appropriate service response. Brands should remember that they are not dealing with failed products but with people's emotions caused by failed products. An emotional approach to service, similar to the sales pitch, might work better than a rational response.

8) Focus on customers' convenience; not yours: Most service facilities and procedures are not customer friendly. Service centers are far and few, the locations are remote, phone lines are always busy, the service center timings always conflict with customers' work hours, and the waiting time at the service center is invariably long. Further, asking such aggrieved customers to fill lengthy forms, answer questions (often interrogatory and structured to make the customer feel that he or she is responsible for the problem), wait inordinately, listen to policies and rules is inconsiderate and humiliating.

These inconveniences dissuade customers from choosing company service. Removing such irritants, besides improving customer experience, would also encourage more customers to choose company service over third party service. Increase in service revenue because of more customers choosing company service should compensate for the increase in cost, if any, of providing service at customers' convenience.

Pratap Singh

Website: http://www.pratapsingh.typepad.com

LinkedIn: http://www.linkedin.com/in/pratapdsingh

Twitter: @pratapdsingh

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Want to Improve Your Profits? Improve Your Service

Reduce overheads! Increase prices! Come up with special promotions! Squeeze the supplier! How many times have you heard these answers to the question "How can we increase our profits?"

These tactics can provide a temporary solution -- especially when cash is tight. But temporary is hardly good enough. What you are really after is long-term sustainable growth. So you need to shift your thinking from tactical to strategic, from short-term to long-term.

And this is where service quality comes in.

The Achilles' heel of most businesses today, service quality is also the most effective competitive strategy available, leading to a loyal customer base, growth in profits and motivated employees.

It is also one of the most misunderstood concepts of business; and for two main reasons.

First of all, a lot of entrepreneurs and managers take a very short-term view of their business -- their biggest preoccupation is to conclude a transaction as fast as possible, and move on to the next. Only when you change your mindset, and start thinking in terms of building long-term customer relationships based on trust and mutual-benefit, rather than quick'n'easy transactions, can you really start appreciating the importance of delivering a good service, and its potential impact on the bottom-line. The second reason is that service quality is many times treated as an after-thought. Good service, however, requires good planning, with clearly defined objectives and targets.

Benefits of delivering a good service

The link between service quality and profitability is clear, and has been documented through various empirical research. It affects different areas of your business which in turn create the ideal platform for enhancing your profitability.

Energise your people

When your customer-facing staff know they are delivering a service which is valued by the customer, they are motivated to continue improving and go the extra mile in satisfying clients' requests. Part of planning for a good service delivery involves the development of the right HR policies, especially recruitment, training and compensation. Think of linking compensation and with the level of customer satisfaction achieved!

Profitability

Satisfied and loyal customers translate into lower administrative and sales costs. This because the cost associated with acquiring new customers (in terms of promotion, marketing, etc) is many times higher than keeping current customers delighted. Teach your sales people to think in terms of customer lifetime value (that is, the value that can be obtained from a specific customer over a lifetime of business) rather than the immediate sale. You will see your costs going down and your profits going up!

Surround your business with a positive buzz

Word-of-mouth marketing is the most effective marketing tool available, but it's difficult to obtain. The best way to achieve this is by having delighted customers, customers whose expectations where exceeded with your excellent service and product. Word-of-mouth is more effective and powerful than any advertising and promotion you can do, for a simple reason -- whose opinion you think your customers will trust the most? That of a paid advert in a magazine and the one coming from trusted family members and friends? So don't just create customers - create brand ambassadors!

Lead the pack

Creating a sustainable competitive advantage is of utmost importance into today's highly competitive business environment. Excellent service quality is one such competitive advantage, which not only allows you to lead your industry but is extremely difficult for your competitors to imitate.

Difficulties encountered in delivering an excellent service

So if delivering an excellent service and having delighted customers is so beneficial for business, what stops us from doing it right? Why is it that, as customers, we are continuously exposed to abysmal standards of service?

Firstly, reaching such a relatively superior level of service quality is not easy. There are various tangible and intangible variables that have to come together in a seamless manner. Furthermore, the choice of similar and competing products available to your customers is phenomenal, and continues to increase. The benchmark is being continuously raised and you have no alternative choice but to go along for the ride! Secondly, much of what stops us from delivering the level of service we know is expected by our customers is psychological, myths about what it takes. So let's try to unveil some of these persistent myths and prove them wrong!

You can't measure service!

YES, you can. In business, EVERYTHING is measurable. And I do mean, everything; including the level of service you are delivering to your customers and how it compares to their expectations. There are various research tools that can be implemented including surveys and focus groups which can give you an in depth analysis of your service performance, but there are also more basic tools that can be used in your day-to-day management. Says Joe Meilak, Managing Director of CSQM International Ltd, a specialist in customer service certification and training, "Make sure you have a feedback loop and get your clients to talk about your service - such as through a post-service phone call. This knowledge is worth its weight in gold and is free of market research fees!" Allow me to add something: Include your customer-facing staff in this feedback loop. They are the ones dealing directly with customers. Exploit their proximity to the customer touch point, capitalise on that feedback and allow them to participate in the decision-making process. Not only you will have more satisfied customers, but also more motivated and involved employees!

Who can understand what customers want!

The individual service criteria that make up the whole customer experience have to, and can, be identified and measured. In the case of a restaurant, for example, service criteria could include waiting time to be seated, choice of items on the menu, cleanliness, etc. In the case of a b2b service provider it could be the cleanliness of your delivery trucks, attitude of sales personnel, response time to customer queries, etc. The best place to start to identify these service criteria components? Ask your customers. They know exactly what they want. And make sure to not only deliver on those criteria, but exceed their expectations! This is what leads to a sustainable competitive advantage.

I'm a small business. It's too expensive for me.

If there is one thing that I really hope you take away with you from reading this article, is that delivering an excellent service doesn't have to mean huge financial investments. Of course, if you have the financial capability of investing in focus groups and customer surveys, so much the better. The information gleaned would really give you an edge. But it doesn't have to be so. Listen to your customers, ask them for their feedback and expectations, monitor what your competitors are doing, involve your customer facing staff in the process ... all this is free! This is confirmed by Joe Meilak: "Quality service is a question of dedication to the needs of customers. Quality service can be delivered on a budget. Have a look around you and the service being delivered to you depends on the attitude of the person attending to your needs and how happy s/he is working in the place he is right now."

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Improve on Your Customer Service - The 5 Outstanding Qualities of a Service Superstar

Every once in a while we will cross paths with what I refer to as a customer service superstar. They are like diamonds in the rough. We never know when we will be served by one of these superstars. They are dispersed throughout the marketplace and look normal on the outside. But take a closer look and we will soon discover that these people are a breed apart from your average everyday customer service representative.

What is the secret that makes these customer service superstars win us over? What is their key in consistently giving each customer an outstanding service experience? One of the first and foremost secrets in their winning ways is that these superstars make their customers feel valued. These people simply treat each customer as if he or she was the most important person on the planet. Customers walk away feeling as if they were the owner of the organization.

Customers soon recognize that these special people are living a life focused on others. This in turn makes each customer walk away feeling that the service was more than simply following a job description in order to receive a paycheck. If customer service superstars were to wear a tee shirt, the caption on the front would simply read, "It's not about me."

These customer service superstars are the best because they also understand the mindset of the customer. They are sensitive to the needs and feelings of what customers think as they walk through the door. These superstars have a way of understanding the customer and making their experience as enjoyable as possible. By understanding the customer's point of view, they also begin to capture new ways to make the service experience more pleasant. Let's now look at the five qualities that define these customer service superstars:

1. Superstars maintain a positive personality

The secret in offering great service is to stay away from an uninviting attitude. Having a positive attitude is a major key in providing each customer with a great service experience. These will always go together. Customers will want to return simply because of the attraction that a positive attitude creates. These customers will also want to return and tell others because of the positive memory of the service being offered. By being positive, these superstars make their customers feel welcomed and accepted.

Remember that the perception in the customer's mind is what really matters. If a customer feels that their service experience was below average, then it was below average. In reality we are in the customer perception business. This is why it is paramount that we periodically take an attitude check and maintain a positive atmosphere for our customers.

2. The superstars are enthused about serving

The poor service experiences that we remember are typically the result of being served by a person who lacked enthusiasm. This perception that the person was not excited to assist us made the overall experience below average. But our perception takes a complete turn when we feel that the person serving us was enthused during the whole process. It is important to remember that the secret is to show our customers that we want to assist them. One easy way to achieve this is to be enthusiastic about giving them our best service. This important key will instantly make customers walk away feeling that the service was outstanding.

3. The superstars know how to respond quickly

Because we live in a fast-paced society, our customers expect to be given quick and efficient service. Without this efficiency, the customer will more than likely walk away and remember the service as average. The goal should be to show that we respect our customers by simply respecting their time. The perception of the service will then automatically improve as a result of being quick and efficient during each transaction. Customers will then walk away not only feeling respected, but will more than likely rate us higher because of the efficiency of the service provided.

We will always appreciate service where we feel that the person serving us respected our time. The best memories of five-star service will consistently convey efficiency during the transaction. The service representative gave the impression that our time was valuable and swiftly took great care to quickly meet our needs. Remember this little gem and your customers will walk away and remember the service as being outstanding!

4. The superstars strive to be their best

Another feature of customer service superstars is their ability to excel in their chosen profession. They desire to be their best on the job by giving their customers outstanding service. Their work ethic stands out because of the motivation to perform at a higher level. These superstars do not need to be motivated from the outside. Their inspiration is driven from within.

It is a pleasure when I get the rare opportunity of being served by one of these customer service superstars. They always give the impression that they genuinely enjoy serving me. I leave with the impression that they truly enjoy their position. These experiences are a result of a person who simply gave 100% on the job.

5. The superstars are attentive

Comparable to being efficient with our customers, giving them attention also expresses that we care. By simply being attentive, we are telling our customers that they are important and deserve to be treated with respect. The power of giving attention is that it also conveys a certain level of respect. We must also remember that most customers enjoy playing this role because of the anticipated attention that they are hoping to receive.

Teach these five excellent traits into your training and begin to see your service improve instantly. Your team will begin to outshine the competition and your customers will also become your best advertisers simply because of the exceptional service received.

Cary Cavitt is a professional customer service speaker and has written several books on the topic, including Customer Service Superstars. He is available as a keynote speaker and for onsite seminars throughout the United States. Look for more customer service articles and authored customer service books at http://www.carycavittconsulting.com

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5 apps to improve productivity and collaboration

If you’re like me, your to-do list has taken on a life of its own, and after several failed attempts at taming it, you’re now simply looking for a way to peacefully co-exist.

Fortunately, new apps and devices are being created almost daily to help us improve our productivity and collaboration.

Coolendar is attempting to go where no calendar has gone before, integrating traditional calendar and task apps into a “planning experience.” It works as a simple list, instead of the standard calendar view, and provides alerts of tasks and plans via email, messenger, desktop, mobile and Twitter notifications. One interesting feature is its use of tags to organize items and create group plans so that events are more social (think Twitter meets Google Calendar).

Making task entries is seamless and intuitive (the example it gives: “tomorrow 8am make sure to grab the #umbrella!”) and allow for one-click rescheduling and recurrence.

We all love the days we stumble on solutions that make some aspect of our work “ridiculously easy,” and that’s exactly what Let’s Crate claims to do for file-sharing. Create an account, select a crate for storing your files, drag and drop to upload them, and then send the link to the individual file or crate you want to share. It’s that easy, and the free plan of 1 GB of space includes six crates, 1000 downloads, and a 50 MB file-size limit, with higher-capacity plans being very inexpensive.

MyDataNest is another online storage and file-sharing solution, but unlike Let’s Crate, it offers the ability to edit files online without installing any software. Files are stored online and are available to your team through shared online work spaces.

Using similar functionality to Let’s Crate, you simply upload your files and then share a link with members of your team. With their basic and free plan, you can upload files up to 50 MB in size, and that includes three collaboration folders, 2 GB of online storage, and 10 GB of monthly transfer. As with Let’s Crate, higher-capacity plans are still very affordable.

GroupZap takes the “cool factor” award in this roundup of apps, offering real-time brainstorming and online collaboration, as if you were in the same room with your team. Quickly set up your group’s whiteboard by simply entering your email address and sharing a link. Then use sticky notes to each add your own ideas and thoughts to the board. Team members can also upload images and files by dragging and dropping them onto the board or use boxes and arrows to further annotate concepts, processes, and dependencies.

Once all the ideas are in place, your team can then use stickers to vote on different items within the board, and when the meeting is over, you can create a PDF to send to your team as a record of the meeting or for follow-up. It even records the brainstorming session to show the progression of ideas throughout the meeting.

GroupZap is free for up to 100 MB per board, with each board remaining active for seven days. There are also pay-as-you-go and subscription options, which extend the life of a board to one year and include increases in storage capacity.

Social networking has become the distraction of late, but if you want to keep a pulse on what’s being said about you or your company, it’s hard to navigate away from the live feed for fear of missing something. Enter Twilert, an online app that sends email updates of new tweets on topics of interest to you. Advanced search options allow for monitoring of specific keywords, people, locations, and even links and attitudes (positive or negative posts or questions).

What are some of your favorite productivity and collaboration apps?

Image courtesy of Flickr user imglighting

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