Categories
Business

Good Customer Service Keeps Its Promises

Say What You’ll Do and Do What You Say

By Peter Lyle DeHaan, PhD

Repeated stories in these posts relate to cell phone companies. It’s a sad commentary on the industry, yet these lessons apply to all businesses. 

For cell phone companies, a disregard for existing customers and preference for new business drives existing customers to their competitors every two years. I have ample stories to share, none of them good. 

What’s interesting is that each switching cycle starts online and may shift to the telephone before moving to in-person to finalize the transaction. Once completed, interaction may move back to the telephone for a time before reverting to online for the long term. There is a significant disconnect between these channels. 

Through the decades of the every-other-year carrier switch, I can recall none that occurred as expected. None ingratiated me to my new provider, and each one took too much time. Most incurred unexpected charges or hidden fees. Hidden is a generous word. Lied to is more common.

No carrier stands above the others in treating customers right and attempting to hold on to the ones they have rather than continually churn them.

A New Twist

Though our existing carrier was content to continue service under the terms of our original agreement, they took no steps beyond that to keep our business. It was only through the work of an independent sales unit that we learned of a plan that worked for us and would not force us to switch providers.

Key to this was a generous trade-in allowance for our existing phones. Factoring the credit into our calculations would allow us to upgrade our phones at no cost and enjoy a slight decrease in our monthly rate. It seemed too good to be true.

We scrutinized the fine print in their offer and found no flaw. The decision to upgrade service was easy. After confirming the details of their offer, we committed to move forward. Switching took much longer than it should, which happens each time we upgrade. But we walked out of the store with our new phones and began transferring information so we could use them and then return the old units.

A Shocking Development

After wiping the memory on our old phones and shipping them in to receive our trade-in rebates, we encountered a shock. They reviewed our working phones, listed made up problems, and downgraded our promised rebates to less than 10 percent of what we expected. The carrier was unwilling to discuss this. The discrepancy between their promise and their reality was a couple thousand dollars.

An online search for resolutions revealed many people who felt similarly duped. The only successful recourse was to wait three months for the final determination and then reporting them to the Better Business Bureau. Once aggrieved customers filed their complaints, the carrier made good on their promise.

That’s not a wise business strategy. 

Customer Service Success Tip

Uncover times your customers may have felt tricked by your marketing promotions and customer retention initiatives. Eliminate these disparities between fact and fiction.

If you don’t address these issues, you’ll alienate customers. And they’ll tell everyone they can, further hurting your chances of gaining new business.

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

The Name Game

Use Names to Facilitate Effective Communication and Not Obscure It

By Peter Lyle DeHaan, PhD

In “The Perfect Answer,” we talked about using your name when answering phone calls. This makes a personal connection with the caller and facilitates productive communication to result in positive outcomes.

Besides phone calls, names are equally important for online and in-person communication. Here are some further thoughts on names.

The Alias

A friend once worked for a collection agency. All day he placed calls to people who owed money to his clients. Since he was attempting to contact people who didn’t want to be found, he often met with opposition and even threats. Because of this, he never used his actual name and adopted an alias for his work. 

This was a company policy to protect employees from reprisals by those they pursued. Since he presented himself as a named person, he met with more success than he would’ve had he been a nameless voice from the dreaded collection agency.

As a side effect, assuming a new name enabled him to adopt a different persona at work. Contrary to his mellow personality, his collection agency character allowed him to become a determined sleuth unaffected by avoidance tactics and threats of retaliation.

In this case, using an alias was both safe and effective.

The Switch 

While attending a banquet, it surprised me to see a friend working there as a server. Chloe shared that she took this occasional part-time work to earn extra money. After chatting a while, I glanced at her name tag. It said “Jennifer.”

She smiled. “They make us wear name tags, but they never said we had to wear our own. So, we all switch.” Her eyes twinkled with excitement. “Sometimes I swap with Jeremy.”

Though Chloe could pass as Jennifer, she certainly didn’t look like a Jeremy.

This was a fun way to add some variety to a fast-paced and demanding job. Yet her admission gave me pause. I wondered what else she and her coworkers were doing, contrary to the expectation of management. The staff’s reaction to their employer’s name policy hinted to workplace problems. I wondered if these issues affected their patrons in a negative way. 

If your staff engages in passive-aggressive behavior, look for the underlying cause and then fix it.

The Alternate

I once had an employee with an unusual name: Johnene. When answering the phone, she always gave her name as trained. Too often, however, callers asked her to repeat it. Growing tired of this, she tried a shortened version, Johnnie. Callers now understood her name, but many repeated it with a question in their voice to confirm they heard right. She then tried John, but that made things worse. Next, she even used Joan for a bit, but it didn’t feel right and confused her coworkers. She reverted to Johnene.

Sometimes names can impede communication, delaying the resolution that callers seek. It may facilitate customer service to use an alternate, more common name. But not always. 

Multiple times I’ve called companies and had a heavily accented representative—who I suspected was halfway around the world—tell me his name was Jeff or Mike. I seriously doubted that. I realize he did this because I was unlikely to understand his actual name or be able to repeat it. Yet with such an obvious mismatch between his accent and stated name, I felt duped, distracting me from accomplishing my goal.

A better solution than to adopt a common American-sounding name might be to use a nickname or the first syllable or two of his actual name. These options would better bridge the culture implied by his accent and the goal to facilitate quick caller resolution. 

The Bot

More companies are using bots for customer service. Guided by artificial intelligence, bots are computer programs that communicate with customers in a way that mimics human interaction. The goal is for people to never know they’re chatting with a computer program and not an actual person.

Though I have no way of knowing how many times a bot has fooled me into thinking “Larry” was real, I know that sometimes the person I assumed I was chatting with turned out to be fake. The tipoff comes as our conversation progresses and the bot becomes less helpful. Then the bot types, “Let me get someone who can help you with that.”

I recently reached out to a tech company for help. I knew the initial interaction would be computerized, but they pleased me when the chat window listed the agent’s name as “Bot.” This left no doubt that I was interacting with a computer program and they weren’t trying to deceive me. Bot understood what I needed and routed me to the right person. We’ll call this a customer service win.

Does your company use bots to trick people or help them?

Customer Service Success Tip

Consider how your employees—and apps—use names when interacting with customers. Remember that the goal is effective service. Make sure your policy on using names keeps this in mind.

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

Provider-Inflicted Pain

Balance Business Needs with Customer Impact

By Peter Lyle DeHaan, PhD

It’s a hassle when our credit card changes. We must track down every business that has our credit card number on file and update it. If we miss one company, we risk service interruptions or delivery problems.

Sometimes we decide to switch cards, but what about when our credit card company makes this change? Through no fault of our own, they force us to use a new card with a different number. This doesn’t happen often, but I have experienced it with both my personal and business accounts.

The most recent occurrence happened to me with the branded card I used for all my business purchases. They aligned with a different credit card provider, and I paid the price for that decision. I’m sure it made sense for them, but did they consider how this would affect their customers?

The Personal Impact

The first to update were the companies that automatically charged my card each month. The process to correct this was straightforward, albeit time-consuming. I looked at last month’s statement and listed everyone I needed to contact. Then I went online to provide my new credit card information. Though time-consuming and tedious, this step wasn’t hard. Some sites made updating my credit card information easy, but other sites buried this information or made the process more challenging.

But what about all the companies that had my credit card number on file, but I hadn’t bought from them in the last month? This list was much harder to compile, and I overlooked a few. But I didn’t know I had missed them until I attempted to place an order and had my card denied—all because I forgot to update my number. This produced both frustration and embarrassment.

Business Decisions

Don’t just evaluate business changes from a financial perspective. Consider how this will impact your customers. Will your decision inconvenience them or damage your relationship with them?

Though this example is about credit cards, the lesson applies elsewhere too. Other considerations include updating software, changing password requirements, and migrating from one system to another. Before proceeding, consider how these changes will impact your customers. Look for ways to mitigate their frustration or minimize their inconvenience.

Customer Service Success Tip

When you make a business decision, consider how it affects your customers. Seek ways to ease the transition for them. Consider what you can do for them so that they won’t have to do it themselves.

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

Available and Accurate Support

Minimizing the Need for Customer Service Is the Best Support Option

By Peter Lyle DeHaan, PhD

As an author, I upload my books to over a half-dozen online stores and distributors, using their respective portals to enter each book’s information and files. The interface for each one differs, with some being easy to use and others being more cumbersome. Sometimes it’s clear what information they seek, and other sites provide on-page tips to answer essential questions. 

Each one of these online destinations offers a degree of customer support. 

Questionable Results

One online bookseller, the oldest of them all, has a confusing-to-navigate website that leaves users questioning what information to enter. They offer both email and telephone support, though experience encourages me to use these options only as a last resort—and then to question the results. Given the quality of communication that occurs through both options, I assume these reps are in a different country, one far removed from mine. 

I’d be fine with this if they were easier to understand, and I trusted what they told me. Too often, however, I wonder about the accuracy of their answers. And when I really question the validity of their advice, I contact them a second time and receive a contradictory response. I don’t recall ever getting the same answer twice.

Unavailable and Delayed

Another publishing vendor offers email and text chat support. They used to be most helpful and responsive. However, in the last year this has changed. Their text chat option is unavailable most of the time, turning on and off throughout the day. Checking during posted times of availability, I’ve twice seen that chat was online, but before I could enter my question, it went off-line. 

I’ve now given up on even trying chat and use email instead. I measure their response time for email requests in weeks, not hours. The good part is that I respect their answers—at least most of the time.

Professional and Accurate

The other companies all offer just email support. 

Two of them surpass all others—not only in the publishing industry but for all e-commerce companies. Though they don’t meet my hope for a quick response, they do respond, usually by the next business day. What makes them excel, however, is the professionalism of their communications and the accuracy of their answers. 

I fully trust what they tell me.

Follow the example of these two booksellers. Make sure that your online presence is easy for customers to use and offers accessible, helpful, on-page support. If you have customers or vendors who upload information to your website, make sure the backend is equally easy to use and helpful.

Customer Service Success Tip

Make your e-commerce store easier to use, for both customers and vendors. Each improvement you make online will lessen the work your customer service support staff must do later.

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

The Trials and Triumphs of Telephone Support

Phone Interactions Can Save or Ruin Your Business

By Peter Lyle DeHaan, PhD

A lot of customer service occurs over the telephone. This growing trend leaves me concerned about some things and excited about others.

A Shortsighted Attitude

On the negative side, consider a large telecommunications company that provides cell phone, internet, and long distance. Or a large national banking institution. You’ve heard of them both. And they’re notorious for their abysmal record of poor customer service. 

If I shared their names, there’s a good chance you or someone you know has had an unpleasant experience with them. To call it unpleasant is kind. Uncaring, unconscionable, and unethical are more accurate characterizations.

With these companies, once a nontypical problem occurs, there’s a strong likelihood they’ll never resolve it. This isn’t an overstatement. People have only so much patience. Then they give up. Excessive runaround, time spent on hold, and limited energy to pursue a satisfactory resolution end up overwhelming frustrated customers. They accept the problem or switch providers.

Although some of these companies’ frontline staff care and try their best, too many do not. Regardless, there seems to be cumbersome bureaucracy thwarting every move and complex support systems that make no allowances for nonroutine problems.

A Solution for Success

There’s an opportunity awaiting these two companies—and others like them—if they can just provide effective telephone customer service. With best-in-class phone support, their cancellation rates would plummet, and customer satisfaction levels would skyrocket. They’d receive a lot less negative press.

Are these companies simply too big or do they offer too many services to be effective? Are their help desks mismanaged, bogged down by bureaucracy, or smothered with complexity? 

I suspect the underlying reason is that upper management treats support as an expense to minimize. But exemplary customer service is good business. Investing in customer support is an investment in your future.

A Positive Outcome

I experienced the trials and triumphs of phone support after my house took a minor lightning strike. The surge affected our phone, internet, and entertainment services. I called my satellite provider and spoke with Beth in the Oklahoma call center. This was the first time I encountered a call center agent telling me her location. It seemed hokey and an overreaction to the backlash against offshore call centers, but it helped me establish a personal connection with Beth from Oklahoma. 

While waiting for various diagnostics to run, we had time to chat, which I enjoyed and found preferable to sitting in silence on hold. She soon scheduled a service call for the next day. The technician fixed the problem fast and restored service.

I wish I could say the same for my phone and internet service providers. They both required multiple phone calls. Then there were the missed commitments, wrong instructions, and conflicting information. 

That’s no way to run a business.

Customer Service Success Tip

Listen to what customers say about your service. Then do one thing to improve it. Once complete, fix the next item on the list.

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

Consistency Matters Most

Tell Your Customers What to Expect and Deliver it Every Time

By Peter Lyle DeHaan, PhD

Moving required finding a new place to service my car. A well-maintained auto repair business sat just down the street from our home, less than half a mile away. A neighbor, though he had never gone there, said they had a reputation for providing great service.

An Unexpected Twist

Before I could try them, however, another garage in the area mailed me a welcome-to-the-neighborhood coupon for a free oil change. This was a brilliant marketing move on their part. I figured I’d use the coupon and then try out the closer business, hopeful for them to become my provider of preference.

Though the second facility wasn’t as near, they were still only a couple miles away. They, too, had a nice facility—newer, larger, and more impressive than the one down the street.

I called for my free oil change, and everything proceeded as expected. New filter, fresh oil, and no bill. As a bonus, they performed a courtesy check of my car and offered a few suggestions for recommended maintenance. Their explanation of the additional work sounded reasonable. 

I later dropped my car off for part two. It cost me a couple hundred dollars this time, but I accepted it as normal for an aging car.

They impressed me with how they integrated technology into their operation, not only to service my car but also to interact with me. Despite having paid them over $200 for what I had planned to be a free oil change, I left pleased with their service and the outcome. In short, they delighted me.

Inconsistent Service

When our other car needed work, it was easy to return there—albeit not as convenient as going down the street. Again, they did their work as promised and met my expectations. Again, they had a list—this time longer—of additional work that they deemed urgent. This time the estimate was much higher. The explanation seemed less convincing. I walked away, not as happy, with the bill of several hundred dollars and only half the recommended work done.

Yet I returned the next time I had an auto-repair need.

They allowed me to schedule my appointments online, an option I appreciated given that I seldom remember to make my car repair appointments during business hours. Each time I booked my appointment, they asked for my preferred contact method: phone, text message, or email.

The first time I selected text message, but they called me instead. I figured it was an error on their part and overlooked it—mostly. From then on, I always selected email, but they persisted in calling. Once, when I didn’t answer, they followed up with a text. Never once did they email me as requested.

Another time I dropped my car off for repair and, not needing it back for at least a month (and causing me to wonder if my family really needed a second car), I told them there was no rush. “Just email me when you’re finished.”

A week went by and then two with no email (or phone call or text). Then a third week with no communication. Then a tersely worded letter arrived. If I didn’t pick up my car within 24 hours, they would charge me for storage. I went in, paid my bill, and retrieved my car. 

I asked why they never contacted me about the completed repair. Their aloof customer service person offered no explanation, only a shoulder shrug.

I grew tired of going there. My first concern was that they always found something else to do. Too often I questioned the validity of their recommendations. Though they delighted me at first, they never repeated that feat. Instead, they provided mediocre service. This produced disappointment, such as not calling me in the manner requested or threatening to charge me to store the car I didn’t know was ready for pickup.

Aside from aggressive recommendations for additional work on my cars, their actual repairs were good. But the inconsistent nature of our interactions led me to seek a different alternative. Not knowing what to expect each time I interacted with them led me to disappointment most of the time. I knew they could delight me because they did once. Why couldn’t they accomplish that every time?

I gave up on them and, after much too long, contacted the garage down the street for my next oil change.

Consistent Service

Upon arriving, the customer service manager greeted me with an engaging smile. She entered my information in the computer and made my appointment. I dropped the car off as planned, picked it up when promised, and paid the bill I expected. 

Though nothing was exceptional with our interaction, it was decidedly better than average. After my recent experiences with the other garage, above average excited me. I returned. Again and again. 

Every time I had an above average experience. Each time I looked forward to my next visit. They were that good. They provided me with consistently above average interactions. I appreciated knowing what to expect and receiving it every time.

Their predictable service pleased me. They didn’t delight me just once and then disappoint. They thrilled me on every visit.

I still take my vehicles there. I know that each time I take my car in I’ll receive quality work, a fair bill with no surprises, and reasonable recommendations for possible additional work. I rate my interaction with them as consistently above average—and that’s high praise. 

I don’t recall another auto repair facility ever being this predictable. With certainty, none were consistently above average. Even a garage consistently average would surpass most of my combined experiences at other service facilities, where they seldom followed one good encounter with a second. 

Too often my auto-repair experiences were like a roller coaster: up and down. I never knew what to expect. And unlike roller coasters where surprises thrill riders, being surprised doesn’t bode well for car repair.

Consistency is the key for ongoing success. This will earn you repeat business, time after time, year after year.

Customer Service Success Tip

Before you strive to improve your customer service, first aim to be consistent. This means uncovering the experiences that disappoint and eliminating them. Continue to address the low outliers to increase consistency in the remaining interactions.

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

Penny Wise and Dollar Foolish

Customer Service Failure Exists in Both Big and Small Ways 

By Peter Lyle DeHaan, PhD

After moving from one town to another, I continued working with my long-time business accountant. Though most of our interactions occurred over the phone and through email, I persisted in making an hour-long trek to his office each tax season.

This was in part because of loyalty, but also my enjoyment in working with him. Another issue was inertia. Would searching for and finding a local replacement be an arduous task? Would the results be better or worse than my current situation?

Assets

On the plus side, my accountant was always available to answer my questions without charging me. I liked him as a person, identified with him as a business owner, and respected him as an accountant. Over the years, we had gotten to know each other, approaching a basic friendship.

Liabilities

The negative side of the ledger contained a few items as well. Besides handling my annual corporate and personal tax returns, one of my accountant’s associates also processed my payroll. Though my requirements were as simple as possible, my needs sometimes caused my assigned contact to stumble. 

I’d catch her errors. She’d apologize and correct them. But it’s worrisome when the untrained person who doesn’t do payroll uncovers a mistake made by the trained professional who does. These problems occurred each time a new person began working on my account, which happened every few years. Occasional issues popped up in between. If I changed firms, would my new selection be better or worse?

The second frustration, although trivial, caused more irritation. As companies migrated to emailing invoices and statements, my accounting firm persisted in mailing them. As the number of mailed invoices decreased, I ended up with only two folders in my accounts receivable file. One was for my accountant and the other for the United States Postal Service, which has an understandable interest in persisting to mail documents. 

If my accountant missed this simple business trend, were there other things he was out of touch with too? This question gnawed at me, reinforced by each quarter’s mailed invoice.

The third and most trivial issue shouldn’t be worthy of mention, but I couldn’t let it go. Each year, after completing my tax return, I’d receive a call from his office to come and pick up my forms and records. If I wanted them mailed, there was an additional charge—first six dollars and later ten. 

Though my accountant said he would mail it at no cost, this information never made it to his frontline people. Each year when I complained about the fee, they’d sigh and place me on hold to confer with him. They’d return to the phone sometime later to confirm they would waive the charge. This came forth as a resigned concession, as if I were taking money out of their own pocket. Never once was there an apology. Never did they show respect for me as their customer.

After a few years of this, I grew tired of asking and paid the fee, albeit with growing disdain. 

Since I was driving an hour to see them and an hour back home just to continue using their services, I felt the least they could do was mail my paperwork to me at no cost. They could have even padded my bill by ten dollars, and I wouldn’t have cared. But to announce the cost with a separate line item every year rumbled in my gut.

I paid them well over $1,000 each year. Charging me $10 to use their services was an insult. As I considered the rates I paid, I often wondered if they were competitive.

Restore the Balance

After six years of this long-distance accounting arrangement, it was time to change, to find a local provider, regardless of how difficult the transition might be. Turns out it was quite simple. My daughter-in-law recommended the firm she used for her business. Though her line of work is quite different from mine, our accounting needs are identical.

Based on her recommendation, I interviewed her CPA and hired him. Currently, he handles my taxes, and a junior CPA in his firm does my payroll. I’ve never questioned her work, and, as a bonus, she’s easier to work with and provides a higher level of service than my prior accountant’s associates.

The overall service level with my new accountant is higher, and the rates are lower. And there are no more mailing charges to irk me. Though my former accountant may have had a business reason to bill and track mailing fees as a separate line item, it served as an irritant that drove me away. 

Customer Service Success Tip

Search for business practices that might make sense from your standpoint but alienate customers. Eliminate those items to better keep their business. You’ll come out ahead in the end.

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

Customer Rip-Offs

Make Sure Your Objectives Align with Your Practices

By Peter Lyle DeHaan, PhD

To avoid the huge depreciation loss that all new cars undergo, I buy used. However, there was a season when I bought new. This story is about one of those times. 

Although it wasn’t my practice to go to the dealer for maintenance, my new car changed that habit. There was warranty work and the enticement of coupons for low-cost oil changes.

Soon my default destination for auto service changed. It was smart marketing on their part. When the discounts stopped, I still returned to them for service. Too bad their later actions drove me away.

An Expensive Oil Change

It was time for my regular service, and I had a list of other things needing attention. Since I’m not a mechanic, I tried not to tell them what work to do. Instead, I informed them of symptoms. I wanted to make sure that I didn’t ask and pay for a tune-up when the problem may have been a loose vacuum hose. It only took one passive-aggressive mechanic to do what I suggested—while ignoring the real problem—to make me change my approach.

When I dropped off my car, I said, “It’s time for an oil change. Also, it pulls to the right, and it starts hard and runs rough.” I left expecting they would change the oil, do a front-end alignment, and give my car a tune-up. Based on their posted pricing, I estimated the cost would be $100.

When I picked up my car, they presented me with a $175 bill. As I read the paperwork, my mild surprise changed to anger. 

Change oil: Oil, lube, filter, labor: $24.95.

Car pulls to right: Test drove car; recommend front-end alignment: $19.95.

Hard to start: Instruct driver not to press gas pedal while starting vehicle: $56.00.

Runs rough: Perform engine analysis; checks okay; do tune-up in 3,000 miles: $75.00.

For $175, I had my oil changed and received some costly advice. My complaints to the service manager accomplished nothing, so I left and never returned. Once again, my local mechanic, whom I trust to do quality work and charge fair prices, is servicing my cars.

Like many businesses, car dealers measure the work their employees do. Garages monitor mechanics to make sure they’re productive throughout the day, document and bill for all their work, and complete repairs within the standard time allotment. Mechanics who meet expectations receive raises and promotions. Mechanics who don’t, even when it’s in the customer’s best interest, earn poor reviews and lower raises. Or they’re fired. 

Some garages pay their mechanics based on billable work. Therefore, the more they bill, the more they make. I’ve been to those places too. At one shop specializing in foreign car repair, it seemed every bill was always around $500—sometimes more. They weren’t in business long.

Other people also bill by time. Lawyers and accountants come to mind. A lawyer once told me to never use an attorney trying to make partner. To get the partners’ attention, they must log over 2,000 billable hours a year, and their clients pay the price.

A Costly Failure

I once called my CPA’s office to discuss converting my IRA to a Roth IRA. I talked with the junior member they’d assigned to me, asking if there were any other tax ramifications I should know about. She said there weren’t and offered to do an analysis for me. 

“That’s not necessary,” I replied. “You confirmed what I needed.” 

“But we just got this new program that I want to try out,” she begged. “Will you let me run an analysis?” Assuming I was doing her a favor, I consented. The call took less than a minute. A few days later, I received a one-page spreadsheet confirming I should switch to a Roth IRA, along with a bill for $100. 

The managing partner agreed the charge was unwarranted, but insisted I pay it anyway. He promised to make it up to me later. 

I found a different tax advisor.

An Inflated Bill

Though people don’t have their TVs repaired anymore, this wasn’t always the case. Long ago a friend landed a summer job repairing televisions. He earned 20 percent of whatever he billed. An enterprising guy, he analyzed the rate chart and determined how to add $35 to each bill—for which he’d earn $7—for only a minute and a half of additional work. 

He would take the back off the unit and hit it with a burst of compressed air, charging $8.00 to “clean chassis.” Next, he would squirt the tuner with cleaning spray, charging $10.50 to “lubricate tuner.” Then he would turn on the set. If the filaments of the vacuum tubes glowed, he would bill $16.50 to “check all vacuum tubes.” With $35 of basic tasks completed, he would then repair the problem, adding even more to the bill. 

He earned a lot of money that summer.

Measuring Business Success

There’s an old business saying (of disputed origin), that “What gets measured gets done.” Some have tacked on a follow-up adage that “What gets paid for gets done better.”

Consider what you measure in your business and how you compensate your staff. The goal is to improve your operation. This could be to pursue greater efficiency, increase production, decrease costs, or maximize revenue. 

Consider the consequences with care. 

Attempting to please you, maximize their rating, or earn a raise, employees may do things that drive away customers, lower quality, or hurt your business. This is the wrong outcome.

If you monitor productivity, do your staff members alter their work habits to appear more productive? Do staff assume they need to work faster, setting aside quality? If your customer service staff, programmers, or project managers track project time, is unnecessary work performed? Are time logs padded? Do they assume they need 2,000 hours of billable time a year to get a raise?

Might your commissioned sales reps sell customers what they don’t need or want just to meet their quota or earn a bonus? Do you have a policy of not giving credits, either stated or implied, that leaves staff with no viable solution for frustrated customers?

Last, consider billing. What message do your invoices send? Are they easy to understand? Can your staff explain every charge in a way that makes sense to customers? Are you billing surcharges and blaming it on outside forces?

Yes, there may be sound business reasons for each task that you measure. These practices can leave your business stronger and on a firmer financial footing, but there’s also a risk. Take care in measuring business success. Be astute and pragmatic—from the customer’s perspective—to produce the results you want.

Customer Service Success Tip

Make sure that what you measure and pay employees to do balances your business’s financial goals with what’s in your customers’ best interest. 

Even better, strive to keep customers happy. That’s the best way to maintain a viable business.

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

Customer Service Matters

By Peter Lyle DeHaan, PhD

We hear much today about delighting our customers. This is an admirable goal, and every business should strive to do so. We must acknowledge, however, that this is not sustainable. We may delight customers upon occasion, but to expect we’ll succeed in every interaction will leave us falling short of their increasingly higher standards.

Each time we do something that excites our customers, we set the bar higher for next time. What delights them today and gets them to tell their friends about us will soon fade into the recesses of normalcy. Then, when we can’t meet their newly heightened expectations, we have much further to fall and their disappointment will be all that much greater.

Instead, we should set a more realistic goal. Though it’s not exciting or compelling, we should aim simply to meet customer expectations. Though this sounds boring, don’t dismiss the idea too fast. Many customer service interactions fall short—sometimes far short—of meeting customers’ expectations.

Meeting expectations is sustainable and is good business.

Constant Churn

Do you know someone who left one company because of service issues and then left the new company for the same reason? Once they have used and dismissed each company, their new goal is to pick the least objectionable one.

They no longer pursue the best option. Instead, they seek the one that is least bad, returning to a former unsatisfactory provider. This produces a revolving door of customer churn, whereas a better goal is to keep existing customers.

Does any company provide quality service anymore? The good news is yes, and I celebrate this whenever possible. Yet for each positive example, it’s usually not the company but one person who made the difference. They cared about me and had a genuine interest in the outcome. I was their priority, and they did what the situation required.

Every company claims they offer quality service, but is it real or fantasy? Is a personal connection provided to customers? Can you say, believe, and prove that your company delivers quality service? If you can’t, what changes do you need to make?

Throughout my career, from the jobs I’ve held, businesses I’ve managed, and companies I’ve owned, a consistent thread has been customer service in one form or another. Yet I’m not writing about my experiences in providing customer service, for we are our own worst judges of success. And I’ll admit to having fallen short too many times.

A Lifetime of Experience

Though sharing a lifetime of experience in providing customer service would offer useful input, it would only draw from the businesses I’ve owned and managed. Instead, in these posts I cover something I have much more experience with. Not in providing, but in receiving customer service—and in not receiving it.

We can glean a far better perspective by looking at a lifetime of receiving customer service. This provides a greater array of consideration, offering a more comprehensive approach that most customer service books miss.

I am a consumer. As someone who purchases products and services, I often need support after the sale. I need customer service. I’ll share the times that left me appalled or produced discouragement. Yet I’ll also share those times—albeit not as common—when I experienced customer satisfaction.

Customer service opportunities occur in three arenas. These are in person, over the telephone, and online. None functions in isolation. Each type of customer-focused communication informs our expectations in the other formats. Regardless of the communication channel, whether we’re speaking face to face, talking on the phone, or interacting over the internet, we deal with the same issues and desire the same outcomes.

It’s my hope that these posts will provide you with helpful customer service insights that will encourage you to do better and celebrate what you do best. Let us meet our consumers’ expectations every chance we get.

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

April Fools Day Is No Day To Market Truth

By Peter Lyle DeHaan, PhD

The month that follows March kicks off with some tomfoolery; we call this April Fool’s Day. 

As a publisher, each year I receive some April Fool’s Day press releases. While the best ones quickly become self-obvious, there were a couple that I wasn’t sure about. I scowl and press delete.  This is a great reason to never, ever make a serious announcement on April first. You don’t want your important missive to be dismissed as a joke.

I remember years ago, the head-scratcher goes to a book announcement for:

“A Paradise for Some is Paradise for None. Based on actual stories, it tells you about Ron Edelweiss. A former Swiss banker Ron Edelweiss spent eight years in the Caribbean tax, a legal and regulatory haven of the Crocodile Islands, and the challenges he and his family face there, and then in Switzerland as a consequence of his determination to resist the corrupt system.

Although based on “stories,” the book jacket said it was “an entirely and completely and decidedly and deceptively fictional novel.” A Google search of the title gave no matches, but the author is presumably real—and has a website and blog about his ordeal. The book was listed by Lulu, a publishing company that offers books-on-demand and e-books.

The whole thing smacks of subterfuge, but if it is, it is an elaborate ruse. In any event, had I received the announcement on April 2, I would have accepted it as real. As it is, I’m not sure what to think.  Perhaps that joke was on me.

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.