3 Reasons Why Companies Aren't Developing Outstanding Customer
Service
Developing outstanding customer service is doable for any size business - so why is it not happening?
As a business coach I talk to a wide range of
business leaders, owners and entrepreneurs. They all talk about the
importance of customer service to their organization. Yadda yadda yadda.
Frankly, if all the people walked the talk surrounding customer service
today, the consumer would be looking at businesses a whole different way.
If you were to generalize and say "who gets it", my vote would be the
micro or small business owner. There are a couple of reasons for this, but the
bottom line is that each and every customer has a significant
impact on their business and the business owner understands and appreciates
that fact. As business grows, the owner loses that connection and it
"appears" that losing an individual customer (unless it's a big one) just
doesn't have the same impact.
Yet losing any customers should not be acceptable. Statistics show it will
cost your business about 5 times more to replace that customer than to
retain the original. Studies also show long term clients are less hassle and
spend more. Why would it be ok to let them go?
So why do companies not have (or lose) that focus on providing Outstanding
Customer Service?
The first reason that infests organizations is the DESS Syndrome. DESS
stands for that Darned Excel Spreadsheet. Managers are accountable today,
whether executive or front line based on their "numbers". You will raise or
fall, be promoted or let go, receive bonuses, raises, etc. all based on how
your numbers look on the DESS. Sure it's a bit more complicated, but
honestly not much.
The Customer Service challenge stems from the fact that bad or even just ok
Customer Service problems don't easily appear on any spreadsheet. They are
there, but you have to dig and evaluate the numbers. Things like refunds,
customer retention, problems with bill collecting, and so on are in the
numbers, but not directly tied toward. And since it's difficult to look at
those numbers, it becomes difficult to maintain the focus.
The second reason we have problems Developing Outstanding Customer Service
is how we DO evaluate it which is the customer satisfaction surveys. Most
studies show that surveys that ask for Very
Dissatisfied/Dissatisfied/Neutral/Satisfied/Very Satisfied replies average
in the Satisfied, maybe slightly higher range.
But honestly, what truly happened when you said you were Satisfied with
service? Think about how you feel if you were satisfied with the service.
It's not much. We usually think that meant the service was okay or honestly
that we were satisfied because while they didn't do anything memorable, they
didn't screw up either! And that's our standard? Companies revel in their
customer satisfaction scores! Yet, if everyone is saying that basically the
business was just ok, what does that mean? What it doesn't mean any
particular loyalty. What it doesn't mean is when it's time to order again,
that they will return to you. The bottom line is that striving for customer
satisfaction sets a pretty low bar for any business.
The third reason businesses have difficulty providing Outstanding Customer
Service is that it has a tendency of being the "flavor of the month".
Usually something happens to draw everyone's attention. Speeches are made,
consultants may be hired, a workshop is held to emphasize the importance of
Customer Service for the organization.
And then the band stops playing, the consultants go home, the managers move
on to the next "flavor of the month". While customer service needs to be a
consistent focus, companies don't focus on it consistently!
So what needs to be done to having an organization committed to Developing
Outstanding Customer Service?
Resolving reason 3 is the first thing that needs to be done. The intelligent
business has to understand that Developing Outstanding Customer Service
needs to be a core value of their business. A core value that is
consistently identified, understood and achieved from the absolute top level
of the organization throughout the organization. It is more than slogans on
the wall and words in the marketing brochure. It is not the responsibility
of just the people in front of customers, it is everyone's responsibility.
The next thing for an organization is to create a real measurable way to
judge your performance. A great way of looking at the customer is a book by
Red Reichheld called The Ultimate Question showing a viable way to
categorize and measure your customers and your performance.
Customer Service is probably the oddest business challenges out there today.
Everybody knows good service (and bad) when they see it, yet poor or
mediocre service is epidemic. Everybody knows the costs of losing or
non-returning customers, yet the money most businesses spend on bettering
customer service is incredibly small. It is the single largest marketing
phrase (we believe in customer service!), yet it rarely comes true.
Developing Outstanding Customer Service is doable for any size business. You
just need to look at industry leaders and see that happening. But it is an
awareness, an understanding and a commitment that needs to be made every
single day, from every single employee of your organization.
About the Author
