Category Archives: Customer Service

Service enables us to identify our customers

Your customers can be colleagues, your supervisor, the staff who report to you, the people and/or organisations to whom you provide services, the people who pay for your services or products even though others may use them. Often your service or product will have multiple layers of customers. The customers who actually use your service or product may be different from the customers who purchase your service or product. A service focus helps both you and your organisation to identify and differentiate the expectations of these different customer segments. If you don’t get this right, you may be left with no customers at all.

Understand your customers across the multiple levels of service you provide. Do you understand yours?

Quote from a research participant
“I first thought that this service training stuff was a load of, well, you know! But it got me thinking. Who are my customers? Funnily the first person who’s head popped in my mind was my boss’s. I’d never really thought of my boss as a customer. Yet, she probably is.”

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

Service helps us make sense or our strategy at the day to day level

Business strategy focuses upon enabling an organisation to move from its present state to a desired future state. It provides the ‘roadmap’ for this movement. Ultimately this results in thousands upon thousands of actions happening throughout the organisation. The intention of these actions is to move the organisation in the desired direction that the strategy dictates.

Each action is therefore an example of the organisation’s ‘strategy in action’. A clear service focus enables these actions to ‘make sense’ in the context of the overall business strategy and can help to connect the people within the organisation to the business strategy on a day to day, action by action level.

Quote from a research participant
When I understood that all I had to do was to focus on understanding the expectations of the people I serve, the whole service thing became a lot clearer. I’m not into big words and I’m not a manager, but I can find out what people expect of me and do my best to fulfil those expectations.

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

It’s good business to increase complaints!

The American Express Global Customer Barometer has highlighted the importance of being easy to complain to, especially in places like Australia.

The Australian figures, second to Mexico, highlighted that 86% of Australians will cease doing business with an organisation after a bad service experience. Yet the majority of these Australians will not tell the organisation about their experience. Rather, they will tell their social network, especially if asked. The research reveals that the reason for this behaviour is that Australians find organisations notoriously hard to complain to. So instead they simply switch and tell their friends.

What is interesting is that approximately one in two of these same Australians are willing to give an organisation a second chance, especially if they have previously had good service experiences with that organisation. The issue is that after the second chance, the Australians will simply ‘disappear’ as customers, especially if there is a viable alternative that is available to them.

The pure economics of the above statistics highlight that it is good business to increase complaints. If an organisation were to become ‘easy’ to complain to, that same organisation would have more of a chance to ‘recover’ the customer and maintain a positive relationship with them and stop them from leaving. In simple terms this means that the company ensures that future expenditure from this customer will remain with them.

We are fortunate to live in a world where a customer complaint can be made to a social network and, if you are easy to complain to, that complaints will be heard even though it wasn’t said directly to your organisation. At the end of the day it doesn’t really matter where the complaint is made, it matters that it is heard and acted upon.

As an example I recently had a poor service experience about an organisation. I ‘tweeted’ that I was going to write a blog about my experience, which I did the following day. Within eight hours of posting my blog I was contacted by a representative of the company asking for more details and wanting to know how they could resolve my issue for me. Within a couple of days a resolution for my poor experience had been created and I have remained a client of that organisation.

I had no idea that the company had set up (due to a recommendation from a teenage casual contact centre staff member) a ‘twitter watch’ and a ‘blog watch’ to look for complaints (and positive comments) so that they could fix them as quickly as possible.

It is in this manner that an increase in customer complaints should be seen as a positive measure rather than a negative one. Unfortunately it is my experience that most companies see increased complaints as a poor result rather than a positive one. Alas, most companies are poor to complain to because they don’t want their complaints metrics to rise. Silly, isn’t it!

How easy is your organisation to complain to and what are some examples of how this is done?

Gary Ryan has led service excellence award winning teams in multiple categories and is a co-creator of the OTM Service Strategy.

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

Service excellence guides resource allocation

Organisations that are clear about meeting and exceeding the expectations of their customers are also clear about where resources should be allocated. Maybe your organisation has discovered that it has a serious Service Delivery Gap. Where would you allocate resources if you discovered such a gap?

Clearly there is more than one answer to this question and the actions that may be taken and the resulting allocation of resources will be guided by the organisations overall business strategy and the level of importance of closing the Service Delivery Gap in the short term. In this example there may not be a long term future for the organisation if it does not address the short term Service Delivery Gap. In this context, a service focus enables short term decisions to be made in the context of achieving the organisation’s long term desired future.

Quote from a research participant
We’re a small operation. Just three of us operate the store. We know everyone who works on the larger site; it’s like we are one community. Rather than spend our money on marketing pamphlets etc we hired a student to work in the store with us. We targeted one who was well connected within the community. It’s amazing how much business she has brought in. It’s the smartest money we have ever spent and all our jobs are just that little bit more secure!

What are your experiences regarding organisational resource allocations?

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

Understanding expectations – it is where great service starts

This is the starting point for great service. If you don’t understand the expectations of your customers, then everything that you do is likely to contribute to failing to meet them. Customers will have expectations whether you understand them or not.

They usually consist of outcome factors and process factors and have a zone of tolerance for them to be acceptable. The outcome factors relate to the reliability of the service/product and determine whether the service/product meets the customers’ expectations. The process factors relate to the customers experience and will determine if the customers’ expectations have been exceeded or not.

Quote from a research participant
Once you realise that the starting point is understanding expectations, everything else becomes a whole lot easier. All you have to do is ask people what they want, and then do your best to deliver that to them.

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

OTM Service Strategy TM

Over many years we have experimented and developed our own model for service excellence. Our model includes six re-enforcing elements. Like any re-enforcing model, when performed correctly the model creates a virtuous cycle (things get better and better).

On the flip side, if any of the elements are missing or not performed correctly, the model generates a vicious cycle, that is things get worse and worse.

The six elements of our model include Understanding Expectations, Service Standards, Develop & Recruit, Listen, Measure & Respond and Recognise, Reward & Celebrate. Each element includes a series of sub-elements, the contents of which provide the detail for implementing each of the six core elements.

At the highest level the model itself is a story.

In order to best serve your customers you need to understand their expectations. Once their expectations are understood the organisation can create appropriate service standards that will give the organisations the best possible chance to meet and/or exceed the expectations of its customers.

Existing staff need to be developed so that they have the capacity to meet/exceed customer expectations and the organisations recruitment processes musty give it the best possible chance to attract appropriate people to the organisation.

Everyone must listen. Management need to listen to staff, staff to management, everyone to their stakeholders, colleague to colleague, department to department and everyone to their customers.

The organisation must then be able to measure how it is performing against its service standards and be able to swiftly respond if it discovers that it is off course.

Finally, the organisation as a whole must be excellent at recognising, rewarding and celebrating great service. A culture that celebrates great service will re-enforce the importance of understanding expectations and the cycle continues.

The OTM Service Strategy is supported by a 50 point assessment tool that can be used to asses an organisation’s current practice of service excellence.

Please feel free to comment on this article or to share your approach to providing service excellence on a consistent basis.

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

Is the word ‘customer’ right for you?

Many people get hung up on the word ‘customer’. This is the challenge with the concept of ‘customer service’ because many people don’t think that they have customers. And maybe they don’t. Maybe they have clients, colleagues, administrators, staff, stakeholders, lawyers, doctors, labourers, community members, students, guests and any other label that you can think about. The issue is not the label; the issue is the ethic behind how you treat people.

This is why we prefer the term, “service excellence” over “customer service”. Unfortunately because many people don’t think that they have customers (because they use a different term) they think that service has nothing to do with them. But it has everything thing to do with them. Everyone is your customer. Everyone.

Quote from a research participant
“You know that I can’t stand the word ‘customer’. The people I serve are staff, not customers. I find out what they want and I do my best to exceed their expectations every time. So I wish people would stop saying that I have to be ‘customer’ oriented. I’m staff oriented and that is what is important!”

What words do you use to describe your ‘customers’?

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

Discover the five service ‘gaps’

Parasuraman, Zeithaml & Berry introduced the SERVQUAL framework in 1985. It is essentially a process that describes five potential service gaps that organisations should minimise if they want to be known for consistently delivering service excellence. Minimising each gap contributes to an organisation’s capacity to meet or exceed the expectations of its customers.

The gaps are described below with an examples provided to help you to understand what each gap ‘looks like’.

Gap 1 The Management Perception Gap
A gap can exist between managements understanding of customer expectations and the actual expectations of customers. If management get this wrong, everything else they do will be wrong and the service gap is likely to grow exponentially. Organisations must do everything in their power to minimise the chances that Gap 1 exists.

Example
Cocac Cola has dominated the soda drink market for decades. yet, in the early 1980s Coca-Cola decided to introduce ‘New Coke’ (some of you will remember, many of you won’t.) The tatse for ‘New Coke’ was supposed to be a modern taste that the ‘consumers wanted.’ Nothing could have been further from the truth. Coke sales plummetted. Management had clearly misunderstood their market and had made a series of poor decisions as a result of their misunderstanding.

If you create Gap 1 then everything else you do as an organisation will take you further away from providing what your customers want. It is for this reason that Jack Welch, former CEO of GE said:

Quote
“Service. If you haven’t got it, don’t even bother getting out of bed if you want to be a senior leader. It’s such an entry level requirement it isn’t even worth talking about it.” (Jack Welch, ex GE CEO)

Gap 2 The Quality Service Standards Gap
It is one thing to be able to understand the expectations of those you serve. A gap can then emerge if your translation of those expectations into service standards is inaccurate. Service standards are effectively the systems and processes that you put into place to ensure that you can consistently meet the expectations of your customers. This is very easy to get wrong and requires a high understanding of the expectations of your customers, as well as a high level of understanding of how your organisations works if you are to minimise this gap.

Example
An example of Gap 2 in action is provided by a quote from a research participant. The person was a fitness centre manager. In this example, niotice how it connects to the concept of Structure Drives Behaviour.

Quote (Research participant)
The members said that they wanted the gymnasium to open at 6am. So I employed the staff to start their shift at 6am. The members were still not happy. I was confused. When I asked them again why they weren’t happy they said, “We told you that we wanted the gym open at 6am, not ‘opening’ at 6am. There’s a difference!” Finally I understood. The staff would be paid to start at 5:45am so that the gym would be truly open as had been requested. I had been wrong. I had misinterpreted the expectations of the members.

Gap 3 The Service Delivery Gap
After all the systems and processes have been created, both the automated and human elements of the system must do what they are supposed to do. System errors or breakdowns and humans not doing what they are supposed to do can create immediate service gaps. No system or human is perfect or infallible. As such your organisation must consider what it will do if a Service Delivery Gap does occur.

Example
A retail operation requires staff to work from a start time to a finish time. Usually there will be a staff member who is responsible for opening the retail outlet at a certain time. If that staff member is late then the retail outlet may not be open when customers expect it to be open. In this example, human error is responsible for creating a service gap.

Quote (Research participant)
Ultimately your staff have to do the right thing. It’s important to have the best systems and processes that you can, but ultimately your staff have to do the right thing. They have to properly implement what they are supposed to do.

Gap 4 The Market Communication Gap
If you say that you will respond to online customer feedback within 24 hours and you consistently take 48 hours to do it, then you have created a Market Communication Gap.

Example
The local barber who cuts my hair has two signs out the front of his barber’s shop. One sign says that the shop will be open at 8:30am. The second says 8:45am. The barber is rarely there before 9am. He has no idea how many people have looked in his window when he wasn’t open when he advertised that he would be. My expectations are consistently not met. One day a new barber will move into an empty shop in the shopping strip. What do you think I will do?

Quote
Sorry mate. I know that I said sorry the last couple of times but my car broke down and I had to wait for my wife. Sorry mate.

Gap 5 The Perceived Service Quality Gap
The final gap is the perceived service quality that the customer has of their total experience in relation to their original expectation of the product or service. Ideally there is no gap here or, if there is a gap, it is in the context that the perceived service level is higher than original expectations. Unfortunately, the four previous gaps can create a significant negative gap at Gap 5.

Examples
I describe this gap like this because service providers are often unaware that this gap exists. As such they don’t do anything to close this gap. This leaves them exposed to a competitior or new service provider from appearing to ‘steal’ their customers ‘overnight’. The reality is that their customers were simply waiting for a better alternative to ‘pop up’, so when it did they ‘defected’ as quickly as they could. Do you think my barber (Gap 4 above) is at risk of this occuring?

A similar gap can exist for internal service providers. I am aware of teams of internal staff who have failed to provide high service standards to others within their organisation. When their service has been ‘outsourced’ those staff and team members have become indignant. “How dare they outsource our department!”. Yet they had not been prepared to ‘see’ other staff as their ‘customers’ and treat them accordingly.

Quote (Research participant)
You know they don’t really have to do all that much. If they just met my expectations I’d be happy. But they really don’t seem to care. And as soon as I get a chance to go somewhere else I will. And they won’t even know what happened to me. It’s a shame, really. It doesn’t have to be that way.

Your challenge is to be aware of these five gaps and to be pro-active in managing them. This is a never-ending activity because customer expectations can change ‘overnight’.

Please share your experiences with relation to how you have managed the five service gaps.

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

How ‘5 Stars’ and ‘2 Stars’ can both provide examples of great service, or not!

Many people think that good service is only provided ‘at the top end’ of the service star scale. In other words, if I’m running a 2 star motel then only a low level of service should be provided. In the context of WHAT is provided and WHAT is paid, this is true. But the service experience can still be above expectations. For example, the person greeting me may be genuinely happy to check me into my room. When provided directions to my room I am asked if I am interested in knowing where some cheap but good quality food can be found. In responding yes to that question I am provided with the appropriate information, which includes a range of discounts should I choose to eat at those places. (Later, when I do choose to eat at the place, my discount is honoured and the food is reasonable for what I have paid for it).

I go to my room, the key works and my room is fresh and clean. I have asked for a non-smoking room and there is no evidence that the last person who used it smoked like a chimney. The information booklet is up to date and includes relevant information about public transport, taxis, health clubs and eateries. When I check out the staff member is courteous, quickly processes my payment and bids me farewell. If you wish to consider a poor ‘2 Star’ experience, simply go back over this story and reverse each experience that has been described.

It would not be very difficult to translate this ‘2 Star’ story into a ‘5 Star’ story. The differences in the experience will relate to what we have paid and what we then expect to receive in return. The room may be bigger. The location may be more convenient. The bed may be bigger with higher quality linen. Internet access may be available. The fixtures and fittings may be of higher quality. An on-site restaurant and 24 hour in room service may be available. Laundry services may be available and a concierge service may be available to assist us with any needs or enquiries that we may have regarding the hotel of surrounding area.

Each ‘Moment of Truth’ (MoM) can contribute to our expectations not being met if the experience of the MoM is not up to our expectations. In this way, 2 Star service can be great service and 5 Star service can be poor service. It all depends on the perceived experience of the customer.

Quote
“Visits are not limited to the public areas. I head for the heart of the house, too. There’s method to my madness. If I see smiling faces and well-scrubbed surfaces behind the scenes, I know that the rest of the hotel more than likely is doing just fine.” (J.W.Marriott Jr from his book, ‘The Spirit to Serve’)

What are your thoughts on this topic?

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com

Service excellence involves exceeding expectations

People expect good service. Period. Often, their expectations are not met. Too often. Just think about your own experiences as a customer. How often are your expectations met? How often are they exceeded? Customers expect their expectations to be met. You expect your pay to arrive when it is due. You expect your food to be delivered as ordered within a reasonable timeframe and at the appropriate temperature when you order food at a restaurant or cafe. You expect finance reports to be delivered and inclusive of all appropriate information as scheduled. You expect to be treated as a human being when you visit a government agency, education institution or medical facility.

In order to be able to consistently meet expectations, your organisation must aim to exceed expectations. It is likely that there will nearly always be a lag between when you last checked the expectations of those you serve and the actual service that you are providing them. The lag time may include a change in the level of expectations of those you serve. Unless you are aiming to exceed the expectations at the level that you understand them to be, you may not achieve a consistent level of meeting the expectations that you do know exist. This never-ending journey means that exceeding expectations is a challenge. A real challenge. A challenge worthy of your commitment. Is your organisation currently worthy of your commitment? Is your performance worthy of your organisation’s commitment to you?

Quote
“Consistently exceeding the expectations of the customer, personalizing his or her service experience, and continuously improving your product or service so that it creates greater value for the customer produces a level of customer loyalty that cannot be matched by your competitor.”
(Theo Gilbert-Jamison, service excellence expert/author)

Gary Ryan enables individuals, teams and organisations to matter.
Visit Gary at http://garyryans.com