Categories
Healthcare Call Centers

The Net Results

By Peter Lyle DeHaan, Ph.D.

I first heard about the ‘net in the early 80s from one of my college buddies. He landed a job with a computer mainframe manufacturer and was assigned to work at a university.

Author Peter Lyle DeHaan

He regaled me with tales of instantaneously sending text messages across the country and doing so at no cost. “That is fantastic,” I enthused. “How can I get in on this?”

“You can’t,” he replied matter-of-factly, “not unless you’re at a major university or work for a defense contractor.”

I was disappointed. My visions of fast and free communications faded as quickly as they had formed. With little more thought or contemplation, I quickly dismissed the Internet as a non-issue, one with limited utility and no future.

That was in 1981. Fast-forward 15 years. Suddenly, it seemed, everyone was talking about the Internet. I was perplexed. How could something so limited be treated like the next big thing? Had something changed to make the Internet a practical reality for the masses? Indeed, things had changed.

I soon obtained a dial-up Internet account. Back then, using the Internet seemed to me to be a waste of time. It took eons to be connected, a bit of luck to stay connected, and patience to accomplish anything useful – not that there was much to do from a business standpoint.

When a colleague would get email I would excitedly make note of the address, but would invariably pick up the phone for any communications. As more people became connected, I tried to check email once a day, while checking voicemail multiple times daily.

However, it wasn’t long before I was checking email several times a day and voice mail only once or twice. Now I have dedicated Internet access and spend all day connected, receiving and sending hundreds of messages. All too often, I forget to check voicemail!

I recently gave some thought to what my day would be like without email. Indeed, over 95 percent of my work on this magazine is accomplished via email. Articles are submitted electronically, then routed to our proofreaders, passed back to me, and forwarded to production.

Design proofs are sent as PDF attachments and most progress reports and requests from our printer are sent via email. Without email, we would be forced to rely on snail mail and overnight delivery services, adding to our costs and lengthening our production cycle.

In fact, if I only had the phone and delivery services for communications, I would likely need to hire an assistant just to accomplish the same amount of work. Plus, I would not be nearly as effective or efficient. In short, the Net results are great!

Email is just one aspect of the internet; the world wide web is another part. Once the realm of large companies with big budgets, websites are now common for organizations of all sizes.

In many cases, divisions, departments, and even projects within organizations boast their own website. Nowadays, an organization without a website is perceived as second rate or as a non-player. Websites are also a great equalizer, leveling the playing field between major corporations, smaller competitors, and start-ups.

This site currently boasts 1,400 pages and grows larger every year.

While the purpose of the website is to provide useful industry information, other organizations may have different goals. Some merely want to drive as much traffic as they can. These sites are commercial, for-profit creations, which generate revenue from ads.

Other sites are fee-based, intended to be revenue-generating vehicles, while password protected sites are used as a member benefit or to serve customers. Another common goal of websites is promotion and marketing.

One seemingly obvious feature of websites is to provide a means for further communication. Therefore, a contact page is a common element.

As such, it is surprising when contact information cannot be found; this is confounding. These organizations should want to interact with customers and prospects, but visitor to these sites can’t call, can’t write, and in some cases can’t even find an email link.

Of course sending a message to an email address found on a website isn’t any guarantee of dialogue. In researching a recent article, I used a search engine and contacted the first ten companies listed via email. The results were appalling.

One site responded within five minutes with a personal response. Two more followed later that day, and a fourth, three days later. But six never responded or even acknowledged receipt of my message.

Now it could be that a message or two got lost in cyberspace. That does happen, but certainly not 60 percent of the time.

In another instance, I sent out a targeted email to over 100 addresses gleaned from printed directories and listings. Again, the results were disconcerting.

Six percent were returned because the mailbox was full, eight percent were rejected because the domain name was “unknown,” 14% were refused because the user name “could not be found” and 61% did not respond; only 11% replied.

This all suggests some valuable services that a call center can provide, first to its own organization and then to help others. The first service is to verify that a website is up and running.

True, there are software programs that can do this, but who is checking to make sure the programs are actually running? Plus, who is watching for error messages?

A second call center service is to periodically send out test email messages to important email addresses. If it bounces back or there is an error, the recipient or technical staff can be contacted to correct the problem.

This is especially needed for generic email addresses, such as info@…, sales@…, customerservice@…, and so forth. An even better idea, and the third service opportunity, is to actually access the email sent to these common addresses, responding to it as appropriate or forwarding it to the proper individual.

By expanding your view of a call center to include these and other Internet services, will enhance the standing of your operation and thereby increase the ‘net results.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Call Center

Let’s Get Personal

By Peter Lyle DeHaan, PhD

It seems that lessons can be found all around us – life lessons, business lessons, lessons of what to do, and lessons of what not to do. I wonder how many of these learning opportunities are missed because I am too busy, too caught up in myself, or too preoccupied to spot them. The ones that I do notice, I find instructive and beneficial. It seems that whenever a principle, concept, or example is played out before me in real life, that the theoretical becomes existent and the obscure becomes comprehensible.

Author Peter Lyle DeHaan

A case in point is my printer. I am looking for a new one. Not the printer that prints this magazine, but rather my local printer who handles or more correctly, handled – my business stationary and other printing needs.

I had been using the same printer for 17 years – or what was essentially the same printer. This bridged a time of many changes. On my part, it transcended two places of employment, with different office locations; on their part it spanned three ownerships, a time of expansion and then contraction, several name changes, and finally a merger. We had stayed together through it all. Until something happened.

I began using this printer because they were close to my office, had competitive pricing, and were accommodating and easy to work with. These are astute business reasons for making a wise and prudent vendor selection: convenience, price, and service. So began my saga.

What struck me was their collective friendliness. It didn’t matter who I talked with, whether it was on the phone or in person. When we conversed, they were always friendly. The next step beyond friendliness is acquaintance and finally relationship. I got to know the owner, who never felt it condescending to wait on me — and his key staff. We had a relationship. With a relationship comes understanding, tolerance, and forgiveness. Let me explain.

Although they exemplified the adage to “under promise and over deliver” there were occasions when things did not go as expected. Sometimes this was my fault, sometimes theirs, but we worked together for the common good of our long-term relationship to figure out an acceptable solution. I understood that they were in business to make money, that ultimately they needed me to be a profitable account; likewise they understood that I needed their product to be in an acceptable and usable form. If we didn’t have a relationship, instead of seeking our mutual benefit, we would have sought our individual self-interest; we would have become adversarial.

Similarly, relationship begets tolerance. Tolerance overlooks the small stuff, the things that don’t really matter. If the wrong paper was used, but didn’t affect its essential utility, it was tolerance that accepted it. However, if the paper selection was integral to its final form or function, then reprinting was in order, and it was relationship that prompted their desire to reprint and tolerance that gave me the desire to allow for extra time.

Lastly is the relational benefit of forgiveness. If a deadline was missed, I would want to be forgiving as a byproduct of our relationship. If I needed to unexpectedly move up a routine project to a rush job or needed to change a parameter in mid production, they would choose to not only be accommodating, but tolerate of any lack of forethought or planning on my part.

One day I walked into their shop. In the time that it took me to stride from the door to the counter, three people momentarily stopped their work, glanced up smiling, and cheerfully greeted me by name. They were glad to see me and I was happy to be there. It was Bob who approached me. “We’re just like Cheers,” he beamed, “We’re the printer, where everybody knows your name!” He was right, they did know my name and that made me feel welcomed and appreciated. Although I lack the requisite first-hand experience to comprehend the importance of going to a bar where one is known, I do understand the benefit of being known and appreciated at one of my business partners.

Bob and I got to know each other quite well over the years. Our kids were both in marching band at their respective schools, giving us a commonality and non-business point of connection. Although I am not a hunter, I enjoyed hearing of his adventures in the woods and his ensuing success or lack thereof. In like manner, he heard about my business trips, weekend plans, and home improvement projects. When Bob bought into the business, he was quick to share his exciting news; now we had one more area of connection and mutual understanding.

I changed jobs and Bob’s downtown shop was no longer convenient for me, but I kept going anyway. When he relocated to manage a satellite store, I followed him there, rejoicing that it was closer for me. Later, when a downturn in the economy made it necessary for that location to be shuttered, my loyalty followed him to a third location. It was not as convenient, but the extra drive was worth it to see my friend Bob.

A while ago, they “merged” with another company. This resulted in yet another name change and a subsequent closing of Bob’s satellite office. A month ago, needing to have some envelopes printed, I returned to their original location. I hoped to find Bob there and the other people who I had known for so long. I was dismayed to see no one I knew and for no one who knew me. They didn’t understand my history with them that spanned decades and they made no effort to be friendly or to get to know me. To them, I represented an order, not a relationship; I was an invoice, not a business partner.

It’s not that these things are integral to having envelopes printed; they are not, but they are a pleasant bonus. Having a personal connection with my printing vendor does not have a direct bearing on the quality of their output and does not affect the utility of the final product. In a hard core business sense, these things don’t matter.

Or do they? When I picked up my order, I was shocked at the bill. Their rates had gone up a lot, but foolishly I had not checked.  I had given the new regime the trust earned by the old and was paying the price — quite literally – for that lapse. When I began using the envelopes I was again distressed. There were problems with two of the first 20 envelopes that I grabbed. A 10% error rate is not the quality that I expected or paid for. Although, that ratio has grown decidedly better as I have worked through the box, that initial impression has stuck with me. In the old days, I would have called up Bob and we would have worked something out, but now I did not know whom to call – and didn’t really care. There was no relationship any more, no real reason to complain. Mentally, I was already searching for another printer.

What I learned, what we can all learn, is to get personal with those whom we do business; build relationships with them. Then when an expectation is missed, you can work together to understand and develop a mutually beneficial solution. If a minor problem occurs, tolerance will win out and forgiveness can take place. When the business moves, the name changes, and new owners show up, it is the personal relationships that will hold clients close and keep them from seeking out the competition.

So get personal. In the long run, it is good business.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

I’m Busy

By Peter Lyle DeHaan, PhD

Perhaps you’ve heard this story. Imagine you’re sitting in a college class. It’s one of those big classrooms, with tiered seating, able to accommodate hundreds of students. The class is assembled in eager expectation; what will the professor do today?

Author Peter Lyle DeHaan

At exactly 8 o’clock, he strides in and without acknowledging the classes’ presence, reaches under the lectern and produces a gallon glass jar. He sits it on a nearby table. Then he pulls out a box of rocks and sets it next to the jar. Finally, he fixes his gaze on his charges and with their attention sufficiently garnered, he clears his throat, gestures to the rocks, and asks, “Who would like to show us how much you can fit in the jar?”

Unable to contain himself, an eager-to-impress freshman shoots up his hand. With no other volunteers, he is summoned forward. Desiring to make a profound and positive impression on his instructor, Mr. Eager-to-Impress works quickly but carefully, astutely positioning rocks in the jar until it is satiated.

“Is the jar full?” The professor inquires.

“Yes!” the students reply in strong unison.

“Can you fit any more in the jar?” He deadpans.

“No!” is the enthusiastic chorus.

Then the instructor produces a bag of pebbles. “How about now?” The students emit a collective gasp; a hush falls over the room. Mr. Eager-to-Impress is in a quandary. Should he cut his losses and remain silent or attempt to salvage his bravado. Somewhat hesitantly he raises his hand and is again beckoned forward. With greater care and less haste, he places a handful of pebbles at the top and by tapping, shaking, and rotating the jar, they make their way to fill the gaps below. Satisfied he has done his best, with hopeful confidence he returns to his chair.

“Is the jar full?” The educator again inquires.

“Um, yes,” is the students’ cautious reply.

“Can you fit any more in the jar?”  He questions.

“No,” they guardedly answer.

Next the instructor brings out a pail of sand. Many students begin to smile. “How about now?” Eager-to-Impress is not so eager any more, but feels his fate has been decided. Without being asked, he slinks back to the table and using the same technique, filters the fine sand through the courser maze of rocks and pebbles. Red-faced, he sits down, anxious for class to end.

The teacher gleefully asks, “Is the jar full now?”

No one will venture a response. Whatever they might say, they fear would be wrong; plus, no one wants to stand out like Eager-to-Impress.

The professor ignores their silence, “Can you fit any more in the jar?”  He questions. More silence ensues.

With practiced timing, the learners are left to squirm in the hush of the moment. Without a word the teacher reaches under the podium and brings forth a picture of water. Some students groan; others smile. Unable to contain himself, the skillful educator grins. “How about now?”  He asks? He doesn’t ask for volunteers and none would be forthcoming anyway. Slowly he begins pouring the water into the jar. Gradually, it permeates every crack and crevice. He fills it to the top and then adds a bit more to overflow the jar. There is no doubt as to whether or not the jar is full.

“What can we learn from this?” is his final query.

Eager-to-Impress, wanting to salvage something from this debacle, summons his courage and hesitantly proclaims, “It means that no matter how busy you are, you can always fit more in!”

“No,” the professor bellows, pounding his fist on the table for emphasis. “It means that unless you take care of the big things first, they will never get done!”

I have heard several variations of this narrative. Since I have not been unable to track down the source of this tale, or its author, I share my version of it, with a tip of my hat to “Anonymous,” grateful for the lesson shared.

I can confidently state that I am quite adept at handling the pebbles and sand in my life, topping it off with an abundant supply of water to make things seem complete. However, I’ve discovered that it requires forethought and intentionality for me to handle the rocks, those big and important things. I find that without careful planning and deliberate action, the big stuff gets put off until tomorrow. It becomes all too easy to go from day to day, week to week, month to month, and even year to year, attending only to life’s minutia, without ever tackling its priorities.

This seems to be an epidemic; everyone is busy. We are busy at work and leave to be busy at home; we are busy in rest and recreation and busier still on vacation, needing to go back to work to rest up. All too often, our busyness distracts us from what is important, from what really matters, from those things that could truly make a difference. I’ve pondered my own busyness and am working towards my cure.

Time Management: The traditional thrust of time management is controlling how we spend our time so as to allow time to do more. This doesn’t bring relief or reduce stress, it just means that we are squeezing more into an already full day. Turn time management on its head, using it control how we spend out time, so that we do less. This is my first prescription against busyness.

Multitasking: When I multitask, I am not really doing two things at once, but merely quickly switching back and forth. I fear that my pursuit of multitasking has only served to make me ADD! In last month’s issue, there was an excellent article by Dr. Rosanne D’Ausilio about the effects of multitasking. Not only is multitasking inefficient and counter-productive, it can also mess up our brain. This certainly gives one pause.

Keep a Time Log: Before I went solo and when I had employees, I used to unintentionally irritate my managers by periodically asking them to keep a time log for a week; I would do it too. They hated it and so did I, but the results were instructive. You may elect to keep a time log, too, or merely consider how you spend your time. Let’s look at some easy categories. How much TV do you watch a day? The average is four hours! How much time do you spend on the Internet? Again the average hovers around four hours! It makes me wonder, are people multitasking, watching TV and surfing the Web at the same time? All this amounts to a lot of time that could likely be put to better use, attending to the big things, not squandered in passive activities of no real consequence. One may argue that this down time is “needed” to relax, but I submit that if we weren’t so perpetually busy, we wouldn’t need so much time to escape.

Just Say No: We tell our kids to say “no” to certain behaviors and could do well to heed that advice. Negative behaviors range in severity from, say, occasional overeating to addictive substance abuse. These should be easy to spot and stop, but it’s not always done. Other behaviors are neutral or even positive, but still may be inadvisable. Sometimes its prudent to say “no” to some good things in order to protect ourselves from over-committing and ending up too busy to do anything well.

Set Limits: I’ve learned that my tolerance for work is about 50 to 55 hours a week. If things balloon beyond that, I find that out of self-preservation I cut back until I again have a tolerable schedule. If I was self-policing to a 55 hour work week, I theorized I could learn to limit myself to 45 hours. It took some time, but I was able to do it. In looking back at my output and quality during those 45 hour work weeks, I can see nothing that suffered or was left undone. I was also more relaxed, less stressed, and had more free time. Unfortunately, maintaining that schedule took effort and I soon fell back into the 55 hour work week habit. Once again I am working to reclaim those lost 10 hours a week.

Know Yourself: My tendency is to handle the pebbles and sand at the beginning of my day and then attend to the rocks in the afternoon – if there is time. This is not wise for me, as my time of greatest focus and peak energy is in the morning. Ironically, I was handling trivial stuff at my peak while reserving the important tasks for my low point. I’ve noted a similar cycle throughout the week and another that is seasonally affected. It takes a concerted, ongoing effort, but I strive to prioritize key tasks for peak times, while delegating lesser activities to my off moments.

Now We Can Do the Big Things First: Once you’ve taken steps to resume control over life’s activities, there is then time to attend to the big things. Without the cumulative pressures of countless trivial concerns pushing in, there is the freedom to focus on the important, the life-altering, and the significant, removing us from the rut that all too easily goes from day to day, week to week, month to month, and even year to year – all without notable advancement.

Above all, it is imperative to guard against getting so busy dealing with life that we forget to live it.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Healthcare Call Centers

Providing Quality Service

By Peter Lyle DeHaan, Ph.D.

Growing up, I heard a radio commercial with the tag line, “Service sold it.” Even as a young child I was able to grasp the concept that providing quality service was a great way to close more sales and gain new business.

Author Peter Lyle DeHaan

Over the years, I have heard this mantra repeated, again and again, either verbatim or conceptually, by various local, national, and international companies – answering services included. Yet I now give this grandiose platitude only passing consideration. This phrase has a hollow ring; it seems a disingenuous assurance, holding an empty promise. What was once good business turned into good ad copy and now gets lost in the clutter of promotions that we no longer believe. In fact, the louder this claim is trumpeted, the less credence I give it and the more I assume that their quality is lousy, that their ad campaign’s only goal is to convince us of the contrary. To paraphrase George Bernard Shaw, “He who can, does. He who cannot, talks about it.” It seems that no one provides quality service any more.

Recently, I placed a series of calls to my computer vendor. They offer a quality package at a good price, provide fast shipment, and facilitate ordering. Yet the quality of their service is rotten. Two prior interactions with their “customer service” staff resulted in one failure and one partial success. My latest episode, requiring a dozen or so phone calls over the span of weeks, ultimately resulted in a satisfactory outcome. But it required great patience and persistence, long hold times, being transferred to the wrong departments and back again, and talking with “English” speaking reps who could not effectively communicate in a language I comprehended. One humorous example was a representative who said, “Excuse please the silence while I hold you.” To accomplish my objective, I had to escalate my call, invoke their “100% Satisfaction Guarantee,” and insist that they accept the return of my entire order – not just the computer in question. As you might suspect, I deem it a waste of money to buy their extended customer support plan.

Next I attempted to resolve an ongoing problem with my caller ID. The feature that sold me on the product was the promise that, working in conjunction with call waiting, it would display the number of a second caller while I continued talking to the first. Unfortunately, it never worked. I called repair and reported the problem. I was given the time and date by which it would be repaired. It was not. I reported it again. No change. I pulled out the multi-page manual and found a small-print footnote, which said that the feature I desired needed to be installed separately. Thinking I was on to something, I called and ordered it. Again, the promised due date came and went. I called again, only to be informed that the desired feature was not available in my area. Four “service” people decided to take the easy way out, pushing me through their system or hoping I would give up, rather than simply check to see if the feature was available.

On to cable TV. With the escalating costs of cable, it eventually became less costly to switch to satellite. Now I can get 100 channels and still not have anything to watch!  The installation and support of the satellite system was excellent (more on that later), but the simple act of canceling my cable service took months. With each passing month a new bill would arrive, announcing an escalating monthly balance. A call would be placed to the cable company; an assurance would be given that our service was indeed cancelled and that they had no idea why we kept being billed. This went on for over six months. I seriously doubt that any company can be that incompetent, so my cynical nature speculates that they were intentionally doing this to pad their receivables.

When I installed DSL Internet service, the big challenge came in disconnecting my unneeded dialup Internet line. Because of a previous service debacle, my Internet line had become the billed number and my listed number became secondary. The representative, fortunately one knowledgeable and thorough, apologized that the only solution was to cancel the entire bill and the reinstall my main line. This would only be a billing function and my phone service would not be interrupted. However, there would be side effects. First, I would need to call their DSL division to make sure my DSL wasn’t cancelled and to update my billing arrangement. (Apparently, this was common, because the DSL representative immediately understood the problem and knew just what to do.)  Then I would need to call my long distance carrier to make sure that when my service was “reinstalled” I would be put on my same rate plan and not their higher default plan. A third call needed to be made for my white page listing. Surprisingly, each call had its desired effect. But imagine the turmoil that would have ensued had the first representative not fully informed me of all the ramifications and exactly what needed to be done. Exceptional customer service, however, would never have put me in the position to make those calls in the first place and even good customer service would have done so for me. Quality service didn’t sell it, being the only game in town did.

We all know someone who left one company because of poor quality and then subsequently left their competitor for the same reason. Eventually, all available alternatives had been tried and subsequently rejected. They were then faced with the necessity of returning to a previously unsatisfactory company. Their new goal was simply to pick the provider that was the least bad.

Does anyone provide quality service anymore? Fortunately, yes. In previous columns, I mentioned my mechanic and optometrist, both stellar success stories. In concert with this, it is noteworthy to mention that the authorized agent for my satellite television is a local company. Is being local then, the key for my satisfaction? Not entirely. My local credit union, bank, and doctor have all caused me repeated consternation. Besides, there are also good service examples that are not local. To produce this magazine, the sales, graphic design, and proof editing are all handled by extremely competent individuals who are not local, yet provide an exceptional level of service and quality work. The common thread here is that they are all small organizations. So then, is company size the key? No, there are many other small organizations that have demonstrated the ability to disappoint.

Although being local and being small are two elements that decidedly allow the potential for providing quality service, they are not requirements; the real key is the personal touch. With each unfavorable example I gave, I dealt with a department, not an individual – not really. The representative had no accountability to me and no stake in the outcome. With subsequent calls, I would talk to a different person. To them I was not a customer; I had no real value. I was just another phone call – a problem – one to get rid of in the shortest time possible, so they could go on to the next call, and eventually punch out for the day.

However, with each positive example I cited, it was a specific person who made the difference. This was someone who genuinely cared and had a real interest in the outcome, someone who was willing to make me his or her priority and do what was required.

Every telephone answering service I know claims to offer quality service, but is this a reality or a hoped for fantasy? Is a one-on-one personal relationship provided to clients? Whether you are on the receiving end or the provider, can you honestly say, believe, and prove that your telephone answering service provides quality service? If not, what changes need to be made?

Read more in Peter Lyle DeHaan’s Healthcare Call Center Essentials, available in hardcover, paperback, and e-book.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of AnswerStat and Medical Call Center News covering the healthcare call center industry. Read his latest book, Sticky Customer Service.

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Categories
Call Center

It’s Your Move

By Peter Lyle DeHaan, PhD

A few days ago, I casually entered the conversation with some friends; they were talking about chess. One gave me a sideways glance, “You play?” It was stated as a question, but an underlying astonishment was imbedded. I nodded affirmatively.

Author Peter Lyle DeHaan

“Any good?” came the follow-up query.

Good is a relative term. Casual-player good, I am. When I do play I am pleased with the results, still I chose to not respond directly.  “I haven’t played for a while,” I evaded.  That seemed to satisfy his curiosity.

My cousins had taught me how to play when I was in third grade. My parents were a bit dubious that I could grasp the complexities and nuances of the game. Seeking to protect me from possible frustration or disappointment, they urged caution and tried to lower my expectations. Bravely, I forged ahead. The older of the cousins patiently taught me the names of the pieces and how they moved. He would gently quiz me from time to time in order to gauge my understanding and assess my retention of his tutelage. Soon we were playing a real game. Despite my novice errors, momentary memory lapses, and quirky moves, it was grand fun. We played until he grew weary and I moved on to his siblings. They had less tolerance for my sloppy play and geeky exuberance; by mid afternoon the board was put away and we were on to other things.

The next morning, however, was a new day. I challenged my instructor-cousin, who agreed. Before the day was done, I had won my first game. He rallied, winning the next two, but I sensed I was beginning to challenge him. Seeking to avoid another disconcerting loss, he feigned boredom with my incessant pleas to play one more game and retreated to a safer activity. I then plied his younger brother. Discerning that I had now advanced enough for it to not be too demeaning, he condescended to pick up where his brother left off. By the time their visit concluded, I was hooked.

Practice Makes Perfect: Although my desire to play chess was strong, the opportunities to do so were limited. I attempted to enlist family members, but each had a reason not to learn this game that I pursued. My neighbor wasn’t much help either, as he proved to have only a passing interest. Not to be deterred, I would play against myself. Sometimes I would play the white pieces (which moves first and takes the offensive); other times I would take the black side (which responds and defends). Sometimes, I would switch sides midway through the game, giving up an advantage of superior position to assume a lesser one. There were even times when I would switch perspectives after each move. That may seem a bit schizophrenic, so let’s keep it to ourselves.

These mental diversions were to occupy way too much free time and may not have been the optimum methodology to improve my game, but improve it, they did. When it came time for a real game, I was ready; that time spent practicing paid huge dividends.

Read All About It: Although enjoyable, playing against myself begin to have a diminishing return in terms of ongoing improvement. So I turned to books. First, I learned some esoteric rules, like “en passant,” which I have yet to use in a real game. Then I studied opening moves. These actually have names and are categorized, with variations on how they unfold and recommended defenses. In a serious game, I open with my King’s pawn; conversely, I have trouble defending a Queen’s pawn open. I also learned techniques, like the pin, the knight fork (a personal favorite), discovered check (a great way to confound your opponent), and gambits, as well as end game tactics.

Having consumed several tomes on strategy and techniques, I zeroed in on one entitled, “How to Beat Bobby Fischer.” The premise of the book was that in tournament play it was statistically more probable to beat him than to force a draw – of course, he was nine times more likely to win than to lose. I actually read, studied, and reenacted many of the 61 games he lost. I reasoned that to improve, I needed to be studying the master.

Don’t Give Up: The unspoken credo among my chess-playing buddies was that you never conceded a game. No matter how dire the situation, we would never quit, but play to the bitter end. Resigning a chess game was for those of lesser character and not worthy of this noble pursuit to which we aspired. Having this perspective taught me two things.

First, it taught me how to be a good winner, to be kind and gracious to the other player as a person, all the while dismantling his army and backing his king into the corner for an acrimonious checkmate. I wanted to win and do so decisively, but desired to not belittle the ability of my opponent or assault his self-esteem in the process – after all, I may want to play him again sometime!

Playing to the end also taught me how to be valiant; to remain strong and dignified in defeat. That is much harder — especially when the vanquishing conqueror is relishing his impending victory a bit too much. Yet, these are the moments when character is truly strengthened and perfected.

Play it Again: Losing is never fun, especially when you deem yourself to be the superior player, but it will happen, even to the best. I learned to accept these disappointments as an inevitable part of the game and to grow through them. Yes, I wanted to learn how to play better, but more significantly, I wanted to grow to be a better person in the process. It is a truism that one can learn more and grow more in defeat than in victory.

It is also important to not wallow in self-pity and incriminations when these set-backs occur, but to shake off the disappointment and forge into the future. So, regardless of how close I came to winning or how big the loss, my first response was invariably, “Wanna play again?”

Change the Rules if You Have to: In high school, I sometimes played during study hall. It was there that I garnered an after-school detention for being too animated in explaining the correct way to do a Queen’s side castle. Regardless of who was in study hall, I could count on a worthy opponent being present. Once we set up an impromptu chess competition, complete with round-robin play and capped off by a single-elimination tournament.

My track bubby, Spenser, was in study hall, too, but he didn’t play chess. Still he was attracted to it like a magnet. The variations of pieces and different moves endlessly intrigued him. I tried in vain to teach him, but his attention span was too short. Tired of being left out of the action, he one day blurted out, “Let’s play checkers – all-kings-jump-your-own-man.” I’m not sure if he made that up or not, but I was willing to try. Lacking checkers, we used my chess set, arranging the chessmen like checkers. Since every piece was automatically a king, they could move both forward and backwards. Also, you could jump your own piece (though you left it on the board) to catapult yourself into enemy territory to jump your opponent’s pieces. It was a wild game and Spence played it with great abandon and immense joy.

Playing all-kings-jump-your-own-man checkers with a chess set would elicit all manner of snide and demeaning comments from the uninitiated and casual observers, but we didn’t care. Spence had changed the rules to make a game we could enjoy together and I was happy to oblige.

Make it Fun: Sometimes, we would play “rapid chess.” It was like regular chess, but you had to move within five seconds. We had no timer, so it was self-policing. It made you think astutely and react quickly. I had a knack for it, able to hurriedly assess a situation and make a snap decision that was founded on a hastened logic, but often couched with intuition or consisting of pure reaction. Games lasted about five minutes and were so intense that it only took a couple to induce a headache.

I sometimes employed a “rapid chess” mindset in a regular game. Although my hurried moves were not always ideal, the unending swiftness of my responses would unnerve my opponent, causing him to get flustered and make blunders. From his perspective, it was always his turn and he was always intently concentrating. I, on the other hand, was able to relax and have fun. I realized that it is often better to make a quick decision, based on initial reactions and facts, than to make the ideal determination that might not seize the moment.

To imply that life is like a game of chess is a shallow metaphor. However, just as a good game of chess requires an articulate strategy and reasoned approach, so does running a good business and living a good life. It’s your move; what’s it going to be?

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Call Center

Counting Chickens

By Peter Lyle DeHaan, PhD

In my office is an evocative black and white aerial photo of my grandfather’s chicken farm, circa 1960. Grandpa and Dad ran the farm, along with a revolving assortment of hired help. The farm consisted of five barns, in two interconnected groups. Together they accommodated 15,000 hens.

Four buildings housed “layers,” with eggs being the farm’s principle product. Each building was staged, with the hens’ age being staggered by four months. When egg production for a building would taper off, those hens would be sold, ending up in cans of condensed chicken-noodle soup. (The ratio of cans per chicken intrigues me to this day.)  The fifth building was the “pullet” house; think of it as the nursery.

Author Peter Lyle DeHaan

The farm had a predictable seasonal cycle to it. The hens from the oldest building would be sent to market, the vacated coop cleaned, disinfected, and refurbished, and the maturing hens from the pullet house would move in. Then the pullet house would be similarly prepped. (A window of opportunity existed, between the disinfect and repopulate stage, when I was permitted to roller skate in that building.) 

It was exciting for me when the hatchlings were delivered. They would arrive unassumingly, transported in cardboard cartoons, with 100 per, and delivered via station wagon. The shrill cacophony of their combined chirping was surely deafening to the driver; even in the open space of their new abode, their peeping was audibly overwhelming. I took great joy in my small role of liberator, watching their cute, yellow, fluffy bodies scurry in all directions, from the gently upturned box.

The farm also had a daily rhythm. Aside from the feeding, cleaning, and ongoing maintenance, there was the gathering and processing of the eggs. Each hen house was an open space (there were no caged chickens), with condo-like rows of open nests. How most hens knew to lay their eggs in the nests and not on the floor remains a mystery to me.

As a pre-schooler, I would sometimes get to go with Dad to gather eggs; it was great fun – for the first 10 minutes. I quickly learned to avoid nests with hens in them; they would peck the back of your hand. Even the jersey gloves with cut-off fingers that Dad wore seemed to be inadequate protection. I resorted to gathering eggs from empty nests, in the lower rows that I could reach. Once I needed to rest and sat on a little stool. Only it wasn’t a stool; it was a basket of eggs. I broke half of them before I could extricate myself. I was mortified. Dad patiently cleaned me off, and I think Grandpa laughed.

The baskets of eggs were put on carts, which hung from an elevated rail. The rail system snaked through the barns, terminating at the farmhouse, where the eggs were brought to the basement for processing. Once cleaned, the eggs were put in the “candling” machine, where each was individually checked by shining a light through it. The machine sorted the eggs by size. The extra-large, large, medium, and small sizes were sold; the “pee-wee” and “jumbo” eggs made it to the family table. (One morning, I ate three pee-wee eggs; another morning, a jumbo fed three of us.)

Unfortunately, due to health issues for Dad and a sudden desire by Grandpa to retire, the farm was shut down and the hens sold. The next day, as I took my usual shortcut to school though the back of the farm, I spotted a wayward hen who had escaped the deportation. My cousin Steve and I tried in vain to catch it. I knew we needed expert help and ran to get Grandpa. Although skeptical of my tale, he immediately went to help; alas, neither chicken nor Steve could be found. Grandpa suggested I get to school and I later learned that Steve had caught the skittish hen and at a loss of what to do, put her in the cab of the Grandpa’s dump truck.

“Can I keep it?” I plied Mom and Dad. Dad couldn’t say no, garnering me a private supply of eggs. My hen produced an egg every 27 hours. (The exact laying cycle varies with breed, age, diet, environment, and season.)

This was a bit short of my hope for an egg a day, so I considered a second hen. That would be more eggs than I needed, so I would share with my family. Why stop at two, my young mind reasoned. Six hens would produce enough for everyone, with some left over. A dozen hens would mean eggs to sell. How far could it grow? Soon my elementary-school entrepreneurialism envisioned me helping feed and support my family.

I’m not sure if I shared any of this vision with Dad, but when I asked for a second hen, it was soon granted. Dad, picked a strong, robust hen; she was a fine specimen and I was ecstatic.

Unfortunately, my two hens didn’t get along, with the new one dominating and attacking the original. Even with a larger pen, the abuse continued, production dropped, and soon my cherished pet was dead, killed by her associate and ostensibly by my desire for more. That day, my dream died too.

But this isn’t a story about chickens; it’s really about people. It’s not a commentary on greed or rant against capitalism, but rather a call for balance and pragmatism:

Bigger is Not Always Better: Sometimes less is more; enough said.

Increased Scope Produces Increase Challenges: I was a successful farmer of one chicken. I wrongly assumed that if I could raise one, two would not be a problem, after all, it’s a scalable concept. I never dreamed that I would have “labor” issues to deal with – it never came up in a one chicken operation!

All too often, business people expand their operation without considering the ramifications. They forget that with a bigger operation will require more support and add new and unforeseen challenges. This often occurs when a successful, one location business, opens up a second site. Suddenly neither is doing well. It might be they have the wrong management style, maybe the owners became distracted, or perhaps the requisite infrastructure was lacking.

Value What You Have: I took my hen for granted. When a better one came along, I jumped at the opportunity.

I’ve done the same with employees; maybe you have too. You have people whose work may not be stellar, but who have been steady, faithful, and dependable for years. Then a bright-eyed, eager-to-please applicant arrives and the next thing you know, the new employee has chased the proven one away. It’s only then when you realize that the newer model wasn’t the solution you thought; you long for the “good ole” days, with your trusty assistant, before things got messed up with a new hire and your longing for something better.

Be Content: We live in a society that is seldom satiated and always lusts for more. It’s not bad to have dreams and set goals; in fact, it is good to do so and detrimental to lack aspirations. However, when the push for more becomes the focus, the best parts of life begin to obscure, going unnoticed and unrealized.

The first step is to truly distinguish between needs and wants. So many things that we think we need are in reality not necessary and merely a nice extra. In the big picture, how important is a bigger house, a newer car, a grander vacation, or more “toys?” Will they bring joy and satisfaction or just make you more tired, with added pressures?

Ask yourself, “When was the last time that I actually wore out an article of clothing, as opposed to merely getting bored with it or it becoming too tight? This is starting to get at the crux of the issue. Being content with what we have is a good place to strive for; learning to be content with less is even better – and still leaves us ahead of the majority of people on the planet.

Don’t get so busy counting your chickens that you miss out on what you have.

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.

Categories
Healthcare Call Centers

Beware the Time Bandits

By Peter Lyle DeHaan, Ph.D.

In retail, the term shrinkage is euphemistically used to reference stock which “disappears” before it can be sold. In essence, it is a product that the retailer bought, but can’t sell. To be direct, shrinkage is theft. While some of this is due to shoplifting, it also results from employees, both through acts of commission and acts of omission. Regardless of the source or the motives, shrinkage hurts everyone in the form of higher consumer prices and lower company profits. This affects jobs and threatens the business’s future viability. Some retail operations take a surprisingly relaxed position about shrinkage, viewing it as an inevitable cost of doing business; whereas others see it as the theft that it is, taking aggressive steps to eliminate or at least reduce it.

Author Peter Lyle DeHaan

Shrinkage in the retail environment has an analogous application to the call center. True, a call center does not have tangible inventory that can disappear. A call center’s inventory is human capital, that is, the call center schedule. Shrinkage in a call center, therefore, is agents who are “on the clock” but who aren’t processing calls. This could be manifested by agents who are not at their stations when they are supposed to be, not being logged in, not being “in rotation”, or who employ some “trick” to block calls.

Similarly to retail, some call centers take a surprisingly relaxed position about this shrinkage of the schedule, also viewing it as an inevitable cost of doing business. Their response to it is intentional over-staffing. This only serves to cover the problem, not resolve the underlying cause. Other call enters see shrinkage as little more than stealing – stealing time. Like their retail counterparts, they too take aggressive steps to eliminate or at least reduce it. Call center shrinkage likewise hurts everyone: a lower service level offered to the caller, increased call center labor costs, decreased morale, and potentially less compensation for agents.

There are three factors that help track, explain, and counter call center shrinkage. They are the time bandits of adherence, availability, and occupancy.

Adherence: Adherence is a measurement of the time agents are scheduled to work compared to the time they actually work. Why is adherence important? Quite simply, it is because the schedule was developed to match projected traffic. When the schedule is not fully worked, the result is understaffing. In an ideal situation, staff should adhere 100% to their schedules. Unfortunately, this is not the case.

Adherence can be best tracked by comparing logged in time to scheduled time. Most call center managers are shocked the first time they look at this. It can represent a huge unnecessary cost to the call center, as well as contribute to lower service levels.

Several factors can account for differences between the schedule and the time worked. The first area is scheduled breaks, lunches, and training. This is the only acceptable contributor to adherence discrepancy. Depending on the length of breaks, the best resulting adherence will be around 90%. Forty-five minutes of breaks in an eight-hour shift will result in an adherence of 90.6 % (7.25 hours / 8 hours). The second consideration is absences, late arrivals, and early departures. Unless these openings are filled, the result is a disparity between the schedule and the fulfillment of that schedule. If this missed work is paid time off, such as paid sick time, then there is both a dollar cost and service impact that results. The third area is unscheduled breaks or any other distraction that causes agents to leave their positions. When factoring all of these items together, it is not uncommon for call centers to have adherence rates around 75%, although well-run centers will be in the low 90s (as determined by their established break schedule).

Adherence is the first of three related scheduling metrics. The next is availability.

Availability: A second, and related, staffing metric is availability. Availability is a subset of adherence. Of the time that staff is adhering to their schedule, availability measures how much of that time they are ready (that is, available) to answer calls. It can be easily calculated by comparing available time (alternately called, “on time,” “in rotation,” or “ready”) to logged in time. Specifically, it is the resulting percentage from dividing available time by logged in time. Although the ideal goal of 100% availability is achievable (that is, ready to process calls all of the time agents are logged in), 98% to 99% is more realistic.

Agent availability is strictly within the control of agents. It is determined by each agent’s willingness to keep his or her station in a state of readiness to be assigned calls. Simply put, it is being available to take calls.

Availability is the second scheduling related metric. The third is occupancy.

Occupancy: Occupancy is the amount of time agents spend talking to callers compared to the time they are available. Although it is possible to have 100% occupancy, the corresponding service level would be poor and generally unacceptable. One hundred percent occupancy means that agents are talking to callers the entire time they are logged in. It also means that there are calls continuously in queue, waiting to be assigned as soon as an agent completes a call. The resulting efficiency is great, but callers can end up waiting in queue for several minutes. Therefore, 100% occupancy does not produce quality service and can lead to agent burnout and fatigue.

Interestingly, ideal occupancy rates vary greatly with the size of the call center. Smaller centers can only achieve a low occupancy rate (perhaps around 25%) while maintaining an acceptable service level. Conversely, large call centers can realize a much higher occupancy rate (90% and higher) and still maintain that same service level. This dynamic relationship between occupancy rates and call center size is the underlying impetus for call center consolidation; it is a profound example of economies of scale. Call centers in the 10 to 20 seat range typically see occupancy rates around 50%.

To calculate occupancy, divide the total agent time (that is, talk time plus wrap-up time) by agent “on” time. This should be determined for each agent as well as for the entire call center.

Two Case Studies: Now, let’s consider all three of these metrics together and apply them to two medical call centers, specifically medical answering services. The first, a well run operation and the second, a mismanaged one. They are approximately the same size and both have a realized occupancy rate near 50%.

Call Center A has an adherence rate of 90% and an availability rate of 95% (along with the aforementioned 50% occupancy rate. For each 8 hour shift there is 3.42 hours of on-line time or actual work (8 hours x 90% x 95% x 50%).

Call Center B has an adherence rate of 75% and an available rate of 65% (with an occupancy rate of 50%). For each 8 hour shift there is only 1.8 hours of on-line time or actual work (8 hours x 75% x 60% x 50%).

Although the results for call center A, a well run operation, may be surprising, the corresponding number for call center B is shocking. In fact, to maintain the same service level, Call Center B would need to schedule almost twice (1.9 times) as many hours as Call Center A. Consider what a significant impact this would have on labor costs and departmental expenses.

Lest you think that these are unrealistic numbers, both are real situations describing call centers I have visited. It takes a concerted and an ongoing management effort to be like Call Center A, while all too many operations are more like Call Center B. I challenge you to run your numbers to see how you compare – and then take steps to improve them.

Don’t let these time bandits steal from you any more!

Read more in Peter Lyle DeHaan’s Healthcare Call Center Essentials, available in hardcover, paperback, and e-book.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of AnswerStat and Medical Call Center News covering the healthcare call center industry. Read his latest book, Sticky Customer Service.

Categories
Business

Customer Since 1978

By Peter Lyle DeHaan, PhD

It was an emotional moment for me. After proudly carrying and using a Shell gasoline credit card for more than 20 years, I canceled it and was in the process of cutting it up.

Not that I was angry or upset with Shell, but it no longer made sense to carry their card. You see, Shell, in conjunction with Chase Manhattan, had launched the Shell Master Card. If I used it for my Shell gasoline purchases, I would receive five percent off my fuel expenditures on my next statement.

Author Peter Lyle DeHaan, PhD

For all non-gas purchases, I would earn a one percent rebate on future gasoline. Therefore, I could use the card for more than just gas and get discounts, too. In comparison, my old trusty Shell gas card was an absolute antique. The only practical thing to do was to cancel it.

How did this long-term relationship with Shell start? It was 1978. I was attending electronics school and found myself changing jobs often and moving just about as frequently.

During one such transition of both employment and abode, I found myself on the other side of town, far away from the gas stations whose credit card I carried.

However, there was a Shell station around the corner from my ramshackle apartment, one down the street from the TV station where I worked, and another next door to the school I was attending. Add to this a gas shortage, skyrocketing prices, and Shell’s tendency to not only have gas, but to be one of the less expensive options.

This led to an easy decision to get a Shell credit card. It all began due to practicality, convenience, and frugality.

Of course, it wasn’t long before I finished school, got a “real” job, and moved again. To my delight, there were Shell gas stations both near the office and close to my new home. Soon thereafter, I married and it was a simple matter to order a second card for my wife.

In the years that followed, through job changes and relocations, there always seemed to be a Shell gas station nearby. A habit was formed. By then, even at times when Shell didn’t have the lowest prices, little thought was given to going somewhere else.

This is a lesson for anyone selling a commodity product or service: availability, convenience, and consistency produce long-term customers.

Fast-forward to a couple of years ago when the Shell Master Card was introduced. At first, I viewed their offer with skepticism, but there didn’t seem to be a downside. I could continue my Shell gasoline habit, reduce my overall gas costs, and have a more versatile card.

We applied for the card and begin using it immediately. Even so, I anxiously awaited the first statement, worried about a hidden snag or unanticipated caveat. None appeared, just my rebate to be applied to next month’s gas charges. Still the cynic, I cautiously anticipated my second statement.

Was there some fine print to let them wiggle away from the result I expected? No. The rebate occurred exactly as indicated and for the amount promised.

Even so, my old Shell card remained in my wallet – just in case. Finally, after a year of non-use, I realized the time had come to throw aside any emotional connection to my long-term companion.

It was time to cancel the card. I glanced one last time at the words I had grown to delight in – “customer since 1978” – and cut the card into pieces.

Soon the Shell Master Card was used for all our household purchases and the ensuing rebates grew. Things went well for quite some time. Then a surprise came on our statement, a $29 late fee.

My wife, Candy, called Chase Manhattan to inquire. Since our payment history was stellar and Candy can be most persuasive, it was a trivial matter to get the charge removed. We were admonished to mail the payment earlier in order to avoid future late fees.

The next month, Candy mailed our payment five days before the due date. Again, another $29 late fee appeared. This time she called to complain.

“We don’t care when you mailed your payment nor do we consider the postmark,” came the arrogant reply. “We only look at the date we post your payment.”

Apparently, this was a change in their policy. Plus it seemed a bit despotic, especially considering that our payment was applied eight days after it was mailed.

“But we have no control over when you process our check,” Candy countered.

The agent’s response was quick and terse, “We always post payments on the day they are received.”

No amount of pleading or cajoling could get the late fee removed a second time. The complaint was escalated and soon the only remaining recourse was to submit our concern in writing.

Our letter of complaint was submitted as instructed and a series of automated written responses from Chase Manhattan followed. The last one promised the company would “notify (us) of our findings as soon as they become available.”

That was nine months ago. There have been no further communications from them about this matter.

Since the late fees were exceeding our rebates, we stopped using the Shell Master Card and begin buying our gasoline using an existing Visa card. This afforded us a new level of flexibility since there was no longer any need to continue our routine of looking for a Shell sign.

We could also shop for the lowest-priced gas. (When we used the Shell Master Card, the rebate would more than offset any higher price we paid for their gas.) It soon got to the point that we were seldom going to Shell.

Over the past 24 years, I estimate that we have spent about $20,000 on Shell gas. Assuming that our future gas consumption will remain constant and projecting that prices will increase, we could likely spend another $30,000 on gasoline in our lifetimes.

In line with this projection, a $50,000 lifetime customer and $30,000 in future business was lost due to a $29 late fee and the policies supporting it.

What are the conclusions we can draw from this experience?

The first is to be careful in pursuing strategic alliances. Yes, this is a business trend and, when properly done, it is a great way to retain clients and obtain new ones.

I am sure that Shell saw these benefits, which is why they formed a relationship with Chase. The failure in their strategy is that they relinquished interaction with their patrons to Chase.

Chase did not view me as a $20,000 customer or foresee a $50,000 lifetime value; they likely saw me only as an unprofitable credit card holder (since we always pay the entire balance each month and, until the end of our relationship, continually paid on time).

Hence, when forming any kind of marketing, cross-promotion, or reciprocal business relationship, make sure you retain control over your clients; don’t leave such a critical element to someone else.

The second lesson is about policies. Certainly Chase’s policy to track late fees and interest charges by the date posted is practical and easy to follow (as well as being self-serving), but is it fair?

Care must always be given to ensure that policies and procedures balance the needs of the company with the best interests of the client.

Lastly, consider your staff. The agents Candy talked to did not have the latitude to credit a late fee more than one time. Apparently, their supervisors didn’t either, nor did the managers.

Yes, there is a place for rules and policies, but to make them absolute and intractable, unfairly handicaps agents and can ruin client relationships. The last words that a frustrated client or caller wants to hear are, “It’s our policy,” or “I can’t do that.”

Because of these problems, caused by a partner company, Shell, through no direct fault of its own, has lost me as an exclusive customer and has encouraged me to spend money with its competitors.

[Postscript: We since received a notice from Chase stating in part, “Shell will no longer be participating with Chase in a credit card program.” Do you think that perhaps Shell has realized what I’ve just pointed out?]

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

Categories
Business

It’s All Virtual

By Peter Lyle DeHaan, PhD

As I contemplated my publishing business, I was struck with the realization that I had structured it as a virtual company. This wasn’t intentional; it just worked out that way.

Not only am I the only one working in the “corporate office,” there are no local vendors either. Indeed everyone who takes part in the production of our magazine is from out of state – different states!

Author Peter Lyle DeHaan, PhD

Dave, our layout genius and designer extraordinaire is in Pennsylvania. His work gets sent over the Internet to our printer in Ohio. There they work up the proofs and put them on an FTP site for Dave and me to review and then approve.

The mailing list is maintained by myself in Michigan. For each issue, I output the file and email it to our list processor. They massage the data and sort the list, in turn forwarding it to our printer.

The printer merges the mailing list with the magazines and delivers them to the post office. An army of postal carriers deliver the finished package to your home or office.

The newest member of the team is Valerie, our media rep., in New York; she handles the display advertising sales. As editor, I plan, solicit, collect, and edit the articles and press releases. Finally, our websites are hosted by a in Arizona, but I update the content remotely from Michigan.

I have never met any of these fine people in person. We conduct business via telephone and make frequent use of email. Each issue is produced without any face-to-face interaction.

For our first issue, this was somewhat disarming and disconcerting, but I am convinced that the result is better than if we all worked together in the same office.

True, we miss out on some synergy, incidental communication, and camaraderie, but we are also each free to do what he or she does best and to do so with minimal outside distraction and interruption. As Bill Murray said in the movie “Stripes,” “We’re a lean, mean, fighting machine!”

I theorize that most organizations could similarly be configured as a virtual operation. Over the years I have run into more and more situations where aspects of a business are outsourced, including billing, accounts payable, and general ledger.

They hire a computer support firm to maintain equipment, an ad agency to do marketing, and an independent sales agent (in the spirit of a “manufacturers” rep) to generate sales. Not that any single company outsources all of these functions, but many companies outsource some.

It is important to note that “outsource” does not necessarily imply another country. Indeed, despite media attention to the contrary, the majority of outsourcing occurs to business within the same country.

Conventional wisdom says that you don’t outsource your “core competencies.” However, there are those who advocate that you can indeed, farm out your core competencies as well. What if someone else can do it even better – or cheaper?

What if your labor market has near zero percent unemployment or if you’re just plain tired of the HR aspect of the business? All of these are prime reasons to consider outsourcing your operations. In fact, I am aware of several companies which have done or are doing so.

Outsourcing the operations aspect for a start-up can solve many problems and conserve cash flow while a base of clients is being amassed; then it is all moved in-house. Others have opted to form permanent outsourcing arrangements either out of necessity or preference.

The end result is that there are no staff working in their office!

There are essentially six areas of focus and effort for most organizations: operations, customer service, sales and marketing, technical, accounting, and management. I have yet to see one company do all six with aplomb and excellence, yet any viable concern excels in at least one area.

Even the strong players master only two or three. In fact, some of the most profitable companies are, at best, average at five of the six, but because of a strong, visionary, and capable management, they consistently generate outstanding profits.

Since no one can master everything, it is pragmatic and even wise to consider outsourcing the weak areas of your company. Then you can focus on what you do best and your company will be better as a result. After that you can consider taking it to the next level and outsource the rest.

Ultimately, you too, could become a virtual company; a company of one!

As you begin looking for outsourcing partners, you must be careful in your selection. A bad choice can be costly or even crippling, but it can also be quickly corrected by merely finding a new firm to handle that aspect of your business.

Those who have outsourced their operations did not put “all of their eggs in one basket,” but have divided the work between multiple vendors. No more than 50% of your business should go to any one place; this gives you greater flexibility and minimizes risk.

You should scrutinize an outsourcing partner just like you would any other vendor. “Look before you leap.” Referrals are valuable; check references.

When outsourcing operations, unless they come highly recommended, visit them in person.

  • What does their facility look like?
  • Are they big enough to handle your work? Are they small enough to care about your account?
  • Do you have a good rapport with and respect for the key people in their company?
  • Is there the potential for a long-term business relationship?

Last, find out who will be your primary contact on a day-to-day basis.

  • How well do you mesh with that individual?
  • What is their anticipated future tenure with the company?
  • Should this contact leave, will your satisfaction with the outsourcer’s service disappear as well, or will someone else be capable and able to take over without impacting your organization?

Certainly, no outsourcing agreement should be entered into lightly or without due diligence, but when it is properly executed and for the right reasons, the results can be both liberating and profitable.

This is not to advocate that everyone needs to look into outsourcing, but it does offer some intriguing opportunities and is certainly another option to consider as you look to the future and consider how to make your company better—and more profitable.

Read more in Peter Lyle DeHaan’s Sticky Series books, including Sticky Customer ServiceSticky Sales and Marketing, and Sticky Leadership and Management featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan is an entrepreneur and businessman who has managed, owned, and started multiple businesses over his career. Common themes at every turn have included customer service, sales and marketing, and leadership and management.

He shares his lifetime of business experience and personal insights through his books to encourage, inspire, and occasionally entertain.

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Call Center

Customer Service is a Strategy, Not a Slogan

By Peter Lyle DeHaan, PhD

Does your organization make customer service a priority? I expect that it does. In fact, I suspect that the phrase “customer service” is found somewhere in your mission or vision statement, etched on a wall plaque, proclaimed in your marketing material, and oft orated by upper management.

Author Peter Lyle DeHaan

However, as is often said, “talk is cheap” and “actions speak louder than words.” So the question becomes, do you actually provide quality customer service or just brag about it? Has the vocabulary of providing world-class customer service been bandied about so often that you – and the entire organization – have been falsely convinced that it is a reality, when in fact it has no basis in truth?

An astute and long-time reader may remember a previous column, “A $175 Oil Change“, in which the local car dealership charged $175, accomplishing no tangible results other than changing the oil. This was the only impetus I needed to return to the trustworthy comfort and integrity of my local service station, where I continue to be a loyal and supportive customer of their car care services. Unfortunately, the day that I dreaded came last summer, when they informed me that repairing my heat-producing air conditioner was beyond the scope of their services; I would need to take the car to the dealer.

With trepidation, I walked into the dealer’s brightly lit and tastefully decorated service department. As I walked up to the “customer service” desk, a representative, clad in business attire with tasteful tie, greeted me by name.  I explained the problem and, knowing their mode of operation all too well, asked for an estimate. With a confidence-building smile and positive words of assuredness, he sent me on my way.

His phone call came shortly after I returned to the office: $1,575!  Following my dumbfounded silence, he launched into an extended explanation, mixing mechanic jargon and automotive terminology – which I doubt even he fully understood – seemingly aimed to intimidate me into accepting their costly diagnosis. According to their investigation, a heater problem was also uncovered and somehow related to the AC repair. True, for only $980, I could fix just the AC, but then it would be over $1,200 to go back later to repair the heater.

“Let’s get realistic,” I challenged him, determined to not be victimized again.

The representative apologized that he had no other options and admitted that his “hands were tied.” I declined to authorize the repair and made arrangements to pick up the car. He kept repeating, “I’m sorry; I know I’ve lost you as a customer.”

It took some time, but eventually I heard about a full-service garage with a reputation for honesty. I took the car in. Sitting in a small and somewhat dingy office with a dated décor and amidst organized clutter, I explained the chronology of events, sharing the dealer’s written estimate. The owner of the garage chose his words carefully, “Well, they could be right, but I think we can get it working for much less.” He had a $185 solution that he wanted to try. Plus, if he was wrong, he would apply that amount to the repair the dealer recommended (for which his normal price was only $800). As far as the heater issue, he found no justification for any work.

I followed his recommendation. The $185 AC repair proved to be accurate, keeping us cool through a hot and humid summer, with the heater working without incident throughout that winter.

The dealership had talked ad-nauseam about their top-notch customer service in their ads, promotions, mailings, and sales pitch. They even put on an impressive front, but there was no substance; to them, customer service seemed to be maximizing the repair bill. The garage, on the other hand, didn’t talk about customer service; they just did it.

A second pair of customer service stories are equally illustrative. Although my family is not often prone to renting movies, we did have a membership in a nearby town. My wife and I entered their store, with a two-for-one coupon in hand and the residual amount from a gift certificate on account. Our expectation was that we would each pick a movie and pay for them using the coupon and credit balance. We were wrong.

The first sign of trouble came in the checkout line, when the clerk could not pull us up in their computer. “We got new computers,” he said curtly as he continued typing in vain. After much too long, he impatiently demanded, “When were you last here?” Our answer irritated him. “Well, that’s your problem,” he announced. “We gotta put ya in again.” He took all of our information and had us sign an ominous contract.

As he scanned the DVDs, I handed him the coupon. “We don’t accept these,” he declared disdainfully. Dumbfounded, I asked why. “It’s for Acme Video Hits and we’re Acme Video Plus, now.” I pointed to the in-store sign displaying Acme Video Hits. “We got bought out and they voided all the coupons. It happened three months ago,” he explained exasperatedly, as though this was common knowledge of which only ignorant people were unaware; “We haven’t changed our signs yet.” He typed some more. “That will be seven dollars.”

“You charged us the price for current releases,” I informed him, pointing to a sign for 99 cent rentals of older movies.

“But you got DVDs,” he said with a not so subtle sigh and slight roll of the eyes. “Ninety-nine cents is only for VHS.” He paused and, saving me from another query, added, “They changed that, too.” An unfruitful discussion ensued, but he gave up and got “the manager” when I inquired our credit balance, which had been lost during either the acquisition or computer upgrade.

The manager appeared and with great boldness and partial aplomb, began demonstrating to his lackadaisical charge, proper problem resolution skills. He aptly summarized anew the critical information that we had pieced together from the unwitting clerk. He stated the company line and confirmed the price of seven dollars. However, he soon relented and eventually offered to partially accept our coupon, zero out the balance on our unverifiable account, and only charge us three dollars.

Sensing this was the best we could reasonably do, I accepted his offer and thanked him. He smiled broadly and shook my hand, no doubt assuring himself of a successfully resolved conflict and a customer retained. My wife and I, however, left with a far different perspective. The uncaring clerk had simply dug too big of a hole for his boss to climb out of; damage had been done and it was irreversible.

It wasn’t until a movie rental chain opened a local outlet that we again rented a movie. We walked in and hesitantly approached the counter. Michelle smiled broadly and genuinely welcomed us. Upon learning that we were first-time customers, she carefully and patiently explained how everything worked, including the store layout, membership, prices, and the specials. Her pleasant and easy-going demeanor was refreshing and put us at ease.

As we began browsing, clerk after clerk would momentarily appear, helpfully restating a tidbit of information, providing direction, or offering assistance, then moving away as quickly and stealthy as they appeared.  This was not like my usual retail experience when a clerk asks if I need help and I feel compelled to say “no” even though I do. At the movie store, the clerks’ interactions were both welcomed and beneficial.

When it came time to pay, Michelle, with her effervescent personality and evident enjoyment of her job, made the process of becoming a member both pleasant and effective, reiterating the value of membership and reinforcing the specials. She even did a successful up-sell – which seldom works with me – to pre-pay for several movies; this was quite a feat considering my prior experience with having a credit balance. But when one has a compelling offer that is presented with infectious enthusiasm, it is easy to be successful.

What amazed me most about Michelle, however, was that through all of this, she was training two employees! She had the ability to give them subtle cues and brief instructions in the midst of serving us, without leaving us feeling slighted or inconvenienced.

It is not surprising that I am looking forward to my next movie rental. I have even planned my selections for that snowy weekend this winter, when I take advantage of their “buy two, get three free” special! Good customer service is always an invitation to return.

To be successful, customer service needs to be more than just a slogan, more than mere lip service. It needs to be a strategy, one that is fully and successfully implemented with the customer’s best interest in mind.

[From Connection Magazine November 2005]

Read more in Peter’s Sticky Series books: Sticky Leadership and Management, Sticky Sales and Marketing, and Sticky Customer Service featuring his compelling story-driven insights and tips.

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry. Read his latest book, Healthcare Call Center Essentials.