Customer service often requires proper handling of mistakes.

We all make mistakes.  Admit it, you do.  Your company does as well.  And, although we all have those customers who are inconsolable when we makes mistakes, you’ll find that most customers are fairly understanding of the mistake when you handle it properly and make it better than right.

Take it a step further ….

Put yourself in the shoes of your customer who had the misfortune of bearing the brunt of your last mistake.  You’ve  apologized profusely, perhaps even gave a free product or service, sent a gift certificate, or done something as a token of good faith that you are deeply sorry.  (By the way, if you don’t do any of these things when you make mistakes, you may as well stop reading now…. the rest of this will seem completely foreign).

So, in your customer’s shoes, you receive a phone call or email from your company.  It goes something like this…

Hello Kristina,

I wanted to follow up with you since our last conversation about the package being sent to the wrong location.  It’s important that you understand how seriously we take these issues and want to do everything that we can to make doing business with us a pleasurable experience.

As a result of our mistake, we’ve closely examined our processes of order entry and shipping methods.  We discovered two areas where we needed additional training and focus.  We’ve put steps into place to prevent a recurrence of these issue and we hope that you’ll give us another opportunity to show you our dedication to providing a superior product and service.

Again, please accept my apologies for this happening in the first place.  I appreciate your patience in working through this issue to improve our internal processes.

Best regards,

Kristina

Now, I don’t know about you, but if I received a letter or phone calls along these lines, I’d be giving this company a second chance.  It is clear to me that they didn’t take this situation lightly and have made a few changes based on my input or as a result of the mistake they made with me.

How does your company handle mistakes?  How well do you follow up with your customers to let them know you’ve made some changes as a result?  If you aren’t sure about these answers, now may be the perfect time to start thinking about it.

Customer service, customer satisfaction, loyalty programs, customer centric, CRM …. these and countless other terms are more than familiar to business just like yours, both large and small.

If you are reading this post, you are also more than likely aware of the fact that it costs up to 20 times more to acquire a new customer than it does to retain your current customers.  But knowing this fact and keeping this fact in the forefront of your operations are two entirely different things.

Acquiring new customers is essential for any business.  But how much attention do you pay them once you get them?  How much tracking of customer trends do you do?  Do you share customer information between departments?  Do you operate internally as separate silos of information, or do you practice the “It Takes a Village…” mantra to take care of your customers?

Customer satisfaction and customer loyalty dramatically improve when customers feel that they are truly being cared for at a personal and company level.  You can accomplish this in many different methods.  The first and foremost is simply…. be nice to your customers during your interactions.  Take this then to next level by sharing information internally that is appropriate.

Example… Joe Smith normally orders casual polo shirts from your company.  All of a sudden a new order for dress shirts is sent in by Joe Smith.  If you are like 95% of your competition, you process the order smoothly and the Joe is satisfied.

But, if you are really on the ball with paying attention to your customers as a company, someone in your order processing position noticed this and sent the info along to the customer relations manager.  That manager then had a conversation with inside sales to determine if there have been any conversations around Joe’s company  and any new areas of focus.

Either the customer relations manager or the inside sales team would then impress Joe by calling him to let him know that his order was received and, by the way, is he venturing into new markets?  Is this a one time order into a new shirt or is this a new product offering?  Would he like the link to other dress shirts or a catalog sent to him?  What are his customers asking of him that you may be able to help him provide? Is there anything that your company can do to help him with these types of orders that will make life easier for him? Is there any feedback that he can provide you that will help you improve the way you deliver products to him?  If you have one, do you log this information in your CRM program to track these answers and adjust accordingly?

Asking these types of questions, using your CRM software and/or soft skills will actively engage this customer and exponentially increase his customer loyalty.  How could it not? Hardly anyone pays attention to their customers like this and when they do, they are seriously rewarded.

By spending just a little bit of time with your existing customer base, you’ll be doing more than any of your advertising dollars could ever accomplish.  There is an article in Inc magazine that ties in some of these points with the concept I’ve just described.  Please leave a comment as to what you think of this concept and/or the article and ways that your business has succeeded or could use some focus on existing customers.

In a recent article posted on CRM Daily, the discussion of online ease of use versus “in person” assistance comes into play.

The discussion surrounding the way that the internet had become such a huge part of our everyday lives leads us to ask – at what point can ease of use override the need for a real person to assist us?  This particular article revolved around online banking and it’s growth, posing the question as to if the local bank branches that so many of us use may eventually close.

Speaking from personal experience, I utilize the web and many online services more than most people that I know.  I buy clothes, medicine, photos, pet supplies, vitamins, movies, books, cosmetics and numerous other products online.  I also do most of my banking, bill paying, and other financial services online.  This allows me to spend more time with my family and doing the things I enjoy.

BUT, the minute I run into a problem, there is no way that I’m satisfied with resolving the issue online.  I need to talk to a real person, either on the phone or in person.  The relevance of that article in CRM Daily was especially true for me this week.  I ran into some issues trying to consolidate my access codes for my personal and business accounts online.  I went into the local branch of my bank and spent 40 minutes with the branch manager.  He not only consolidated all of my accounts into one login code, he saw that my account activity would benefit by being in a different account grouping, set me up for automatic bill pay for my business credit card, and then proceeded to inform me that I had a sizeable cash payout coming to me from that credit card if I cashed in the reward points.  I think it’s a pretty safe bet that I would not have figured out any of that out on my own online.

Bottom line, customer satisfaction is driven by the convenience factor.  Customer loyalty is driven by the relationship factor.  Relationships are nurtured by that human touch.  While it is possible to develop a personal tone online, the face to face interaction will always be needed at some point.  The trick is to find the balance and provide customers the portal they personally desire.

Besides, what online banking portal is going to offer you a lollipop?

Admit it, if you are in customer service or customer relations, you absolutely HATE to say the words “I’m so sorry!”

Well, if you handle yourself right, you can win the loyalty of your customer by owning up to your mistake and increase customer engagement.

A client told me the story of how her company had shipped out a package using the wrong shipping method.  It was sent collect to her customer, so the customer would have to pay the shipping charges.  My client was so sorry and embarrassed and promised that it would never happen again.  She didn’t know why the mistake had been made because their processes didn’t allow for much deviation.

The next order came in from that customer and, guess what?….. the same thing happened again.  My client was mortified.  She immediately contacted the customer when she became aware of the situation.  She told me that her apology to the customer was as follows….

“Linda, I am so sorry that I have to tell you this.  Your second package shipped out today, but unfortunately it went out collect again.  I’ve contacted the shipping department supervisor and we’ve identified that it was a training issue and we have taken steps to retrain that individual and have built in a double check to that process.  This is not the way we do business.  We pride ourselves on delivering a quality product on time to our customer using the shipping method they specify.  I know this looks bad for us.  This is  the second time we’ve made the same mistake in as many orders.  I truly hope you believe the sincerity of my apology and understand that we truly value your business.” ….. then she held her breath.

Linda said “Well, at least we found out right away so the order isn’t being held at the carrier this time.  I really appreciate you letting me know as soon as you became aware of the situation and that you are taking steps to make sure it doesn’t happen again.  If it were any other company, I’d probably write you off.  I can tell by the fact that you are following up so quickly and you sound truly sorry that I know this won’t happen again.  I’m not happy, but I’ll be happy to give you another chance.  If you blow that one, then I may have to walk away.”

My client, Catherine, said “Linda, if I personally have to, I will drive it all the way out to California myself to be sure you are happy!”
They both had a good chuckle over it, but Catherine knows that she will personally babysit that next order to ensure that all goes according to plan.  Had she not called Linda immediately, she would most likely have lost that customer’s business forever.  Because she took the time to personally reach out, give her solutions to the problem, and promised to do right by her, she has won that customer’s loyalty for the next order.

To engage your team and identify even more ways to build the loyalty of your customers, you’ll want to check out this resource.  It gives you the know how to set yourself apart from your competition in the minds of your customers.  If you don’t focus on your customers, someone else will.

When we are looking to increase customer satisfaction and loyalty through customer intimacy, it again boils down to asking questions of your customers.  You know you have a good quality product.  You know you provide pretty good service.  But do you really think it’s a case of “Build It and They Will Come?”

You need to really be in tune with your customers.  You need to ask them the right questions to determine what it is about your products that brings them back to you.

Ask these questions…

What is it that they like about your product or service?  What is it that they DON’T like about it?  How do they benefit by using your product?  If you are business to business, how do your customers make money with your service?  What challenges do they face when using your product?

Now, a lot of you may think that you already do a pretty good job of asking these or similar questions of your customers.  If that is truly the case, then congratulate yourself because you are already ahead of 95% of your competition.  They are still lagging behind in the “Build It and They Will Come” mentality.  Really, that’s so 1989.

If you want to be even smarter about the way you do business and tailor it to your customers, take this next step…

Ask those same questions, but instead of asking about your product or service, substitute the word “business” to get a better gauge on how your business itself is serving your customers.  How is your response time?  Are your salespeople really helping solve problems or just trying to sell product that your customers don’t really need?  Are your customer support staff knowledgeable enough about  your products and services?  Are there any obstacles that make it difficult to do business with you?

There was a saying that I used when I was young to defend my constant question asking.. “The one who asks the most questions learns the most.”  As a business leader, you could use this same premise with a twist…

“The business that asks the most questions and acts on them EARNS the most.”

What do you think?

Do You Know Who Your Customers Are

Increasing customer satisfaction through customer intimacy depends on one very important thing – How well you know your customer base.  Who is it that is doing business with you?  This may seem very basic and rudimentary, but it is actually one of the factors that most businesses have taken the time to ask themselves.

We all know that customer are the ones who bring dollars into our company and sustain us financially, but who are they really?  It’s time to discuss this point with your leadership team.  You need to clearly define who your customers are in order to take the next step toward customer intimacy.   You can’t get to know someone intimately on a personal level without getting to know more about them.  The same holds true in the professional world.

By clearing identifying who your customers are, you’ll be better able to decipher how to serve them better.  Discuss your customer base with your leadership team, front line staff, and sales staff.  What type of customers do you have?  Are they individuals or businesses?  Are they large companies, small businesses, or solo-prenuers?  How long have they been in business?  What field are they in?  What are their similarities?  What are their differences?  Ask yourselves these questions in order to open up the discussion to dive deeply for knowledge.  You must determine who your customers are before you can go about improving your business for their benefit.  If you don’t know who you are serving, it’s really just a shot in the dark.

Improving customer service and satisfaction requires an appreciation of the people that are currently coming to you for your products and services.  By doing this exercise, you may even discover that the people who are keeping you in business are not the ones you originally thought would ever do business with you.  You never know unless you ask.  By asking, you understand. When you understand, you are in a better position to serve and increase customer loyalty, as well as profits.

Customer Intimacy

Customer intimacy brings customer loyalty like nothing else.  No matter what you are selling or giving away, knowing your customers like no one else will bring them back every time.

How?  Well, think about it.  When you know that someone truly understands you and the challenges you face and tries to help you through them, wouldn’t you return to them?  When they recognize the way you operate and make accommodations to make your life easier, don’t you naturally go to them first see if they can meet your needs before you go to their competition?

Customer intimacy takes place on all levels of the interaction and relationship.  But there was the key word – relationship.  In order to have a intimacy, you must have a relationship or be genuinely trying to build one.  This applies in both the personal and professional worlds, but we’re sticking to the professional aspects here.

As a business leader, I know that I need to get to know my customer before I can help them.  They don’t want to hear what I have to offer unless I’ve established a rapport that will allow them to tell me what their challenges are.  Customers are completely turned off by folks who talk at them.  They want someone who will listen to them first, establish what the need is, then offer up a solution. Without following that simple formula, you are destined to be second to your fiercest competitor for customer loyalty.

We’ll be talking in the next few posts about customer intimacy and they way that it builds relationships, builds customer satisfaction and loyalty, and gives you the competitive edge.  But best of all, it will keep your business in the customer’s mind as the first resource they will go to for help.

To get you started on the path to customer intimacy, this manual outlines five of the essential factors necessary to building relationships with your customers like no one else.  I’m anxious to know what you think about it.

Why are some small specialty stores having their best year ever?  Because more consumers than ever are putting an emphasis on customer service to determine where they do their shopping. The smaller stores recognize that they may not be able to beat the larger stores in price, but they can more than make up for the difference with the service they provide. Younger adults are now more than twice as likely to choose stores based on service.  This shows that delivering excellent customer service is more important than ever before and shows no signs of fading into the background.

There is tremendous competition based on prices, so the smart retailers are focused on providing an experience, not just a deal.  The Mom and Pop stores, small retailers, and specialty stores are finding their niche in delivering something that the big box stores just aren’t providing – an enjoyable shopping experience that engages the shopper.

Readers of this blog know that there are three ways to differentiate yourself in today’s market:

• Price
• Product
• Service

Service is the easiest, cheapest, and provides the largest return on investment and effort.

Read what a small retailer in Kalamazoo, Michigan has to say about providing a unique shopping experience that sets them apart from the larger stores.

“Certainly there is tremendous competition,” said Vicky Kettner of Downtown Kalamazoo Incorporated . They’ve gone to battle for your buck, placing billboards miles from downtown and right on the front lines of its big box competitors.

Their idea is to sell a holiday experience that consumers say is lacking in modern retail.

“When someone is looking for a relaxed environment, where experience is important, customer service is important and selection is important for the uniqueness of things, then we have a good story to tell,” she said.

To really provide a unique experience to increase your profits and loyal customer base, you’ll find all of the strategies and techniques right here at http://www.kristinaevey.com/products/5-steps-to-more-loyal-customers/

Successful customer service and football.  What do they have in common?  They both rely heavily on huddles.  Think about it.  In football, the huddle is when the play and strategy is discussed.  It’s when they make sure that everyone has what they need to make the play and score the touchdown.

Customer Service Huddles Increase Customer Satisfaction

The exact same thing goes down in a huddle at the office. The manager, supervisor, or team leader gathers everyone for just a short time and makes sure that everyone knows what is needed to make that day go well for both the customers and the company.

The leader needs to make sure that everyone knows what is expected of them.  All team members must understand their role in the big picture and needs to speak up if they need help or assistance.

It’s during the huddle that the day is mapped out and challenges are prepared for.

I strongly advise you to have 5-7 minute huddles DAILY with your teams. This should be part of the DNA of your business, team, or office.  The huddles need to happen daily and consistently.  As a leader, you need to ensure that they be short in duration and full of relevant information.   They should cover what is being worked on, appointments for the day, any current customer issues, anything that is required or needed for a project to be completed, and requests for information and assistance.

Remember, prepare your team for success by giving them a game plan for the day.  Find out what is needed, what should happen, what to do in case the unexpected happens, offer assistance to those who may need it, keep those working on projects  accountable.  Find out about the challenges facing your team.  Be brought up to speed on customer issues and internal department issues.  With huddles, these should essentially act as a game plan for the day.

Using huddles in the workplace makes everyone a winner.