Delivering Consistently Superior Customer Service

Achieving Business Excellence Through…

Why should I listen to you?

A few of my clients:

What does this mean to me?

How can I use this idea?

What can I do right away?

Reality CheckKnowing – Doing

1 -10

Organization Effectiveness Audit

Page 2Be “Brutally Honest”

Scale of 1 – 10

2

The Pattern of Business Success

3

(T + C + ECF) x DE = Success

3

Extreme Customer Focus

LVC

4

VERY rough estimation of LVC

Think of an “Ideal Customer”

Average purchase amount per visit# of purchases per year# of years of loyalty for a good customer

# of new customer they bring to you ****

Lifetime Value of a Customer

Average purchase = $5.90

# of visits = 4.2 per week = 24.78

X 52 weeks = $1,288.56

X 20 years = $25,771.20

$14,099

LVC workshop page 4

4

A few good quotes…

• “We are not in the coffee business serving people… we are in the people business serving coffee.” Howard Schultz, CEO – Starbucks

• “We took our eye off the ball and it damn near put us out of business. We forgot that the customer pays ALL the bills. We are here to serve them, help them, support them. Not keeping that at the front of our minds almost cost us everything.” Lou Gerstner, CEO - IBM

• “The very future of our company hinges on our ability to understand and serve our customers better than any other firm. It is all about customer service, the products are actually secondary.” Jeff Immelt, CEO – GE

• “The only critic whose opinion counts, is the customer” – Mark Twain

The level of highly satisfied and engaged EMPLOYEES in your business.

The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…

Fully Engaged Customers deliver a

23% premium over the average customer in terms of share of wallet, profitability, revenue,

and relationship growth.Harvard Business Review: Manage Your Human Sigma 4

Customer satisfaction drives customer loyalty… and customer loyalty drives profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Customer Satisfaction

Detractors

Promoters

A 5% increase in loyalty among your best customers…

Can produce a profit increase of 25% – 85%

5

When customers receive GREAT service…

73%

54%43%

18%

Will return to use the

company again.

Upgraded or added to first

purchase.

Bought a second

product or service.

Will recommend

to friends and family.

5

Zappos Sales in 1998 = 0 Sales in 2008 = 1.2 Billion Looking back, a big reason we hit our goal early

was that we decided to invest our time, money and resources into three key areas: customer service (which would build our brand and drive word-of-mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team).

Even today, our core belief is that our Brand, our Culture and our Pipeline are the only competitive advantages we will have in the long run. Everything else can and will be copied.

Tony Hsieh – CEO Zappos

Highly satisfied and engaged employees can

drive as much as a 189% increase in profitability! While actively disengaged employees could cost you as

much as 22% of total revenues!!!

Culture = Cash

What do engaged employees look like? Page 6

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 1 - 10

6

HUGE data set…

• 600,000 employees at 500 companies.• 6,800 senior executives.• 900 books and academic articles.• 30 CEOs of Fortune 500.

From: Beyond Performance by Keller and Price

Nine Elements of Organizational Health

From: Beyond Performance by Keller and Price 6

Key attributes of winning cultures

• High aspirations and a desire to win

• Extreme customer focus

• A “think like owners” attitude

• Bias to action

• Individuals who team

• Passion and energy

Bain & Company

1 - 10

7

From the Employee’s Perspective:

7

Fundamental Customer Expectations

• Reliability: The ability to provide what was promised, on time, dependably and accurately. (Honesty)

• Assurance: The knowledge and courtesy of employees, and their ability to convey trust and confidence. (Competence)

• Empathy: The degree of caring and individual attention provided to customers. (Concern)

• Responsiveness: The willingness to help customers and provide prompt service. (Attitude)

• Tangibles: The physical facilities, equipment, and appearance of the personnel. (Professionalism)

Read page 8

The Five Levels of Customer Service

I don’t really care

Why try harder

Good enough is good enough

That’s nice

Holy #@%& – you guys are awesome!!!!!

Workshop Page 9

How the best get better… 6 key factors

They listen to, understand, and respond (often in unique and creative ways) to the evolving needs and constantly shifting expectations of their customers.

Own the VOC

1. Extreme Customer Focus

10

How Many of these do you employ?

10

10

Voice of the Customer: Workshop Page 10

10

They establish a clear vision of what superior service is, communicate that vision to employees at all levels, and ensure that service quality is personally and positively important to everyone in the organization.

2. Shared Customer Service Credo

11

Read credo example pages 11-13

3. MOT: Process = Repeatable success

• They create systems, processes and protocols to ensure that service delivery is flawless… without stifling the creativity and initiative of their employees.

14

Moments Of Truth

14

MOT Practice Round

Dry CleanerHair SalonTailorPlumber

14

Moments of Truth: Workshop page 14

14

They establish concrete standards of service quality and regularly measure themselves against those standards, guarding against the “acceptable error” mindset by establishing as their goal 100% customer satisfaction performance.

4. Clear Standards + Accountability

15

They hire the best people, train them carefully and extensively so they have the knowledge and skills to achieve the service standards, then empower them to work on behalf of the customers to build very high levels of TRUST

5. Customer Focused Employees

15

They recognize and reward service accomplishments, sometimes individually, sometimes as a group effort, in particular celebrating the success of employees who go “one step beyond” for their customers.

Deal decisively with mediocrity

6. Reward and Celebrate Success…

15

The Rule of 3

• Wow – breakthrough teams commit to a clear and specific standard of world-class performance.

• No Surprises – all team members are accountable for openness and honest debate, and each knows what to expect from the others.

• Cheer – team members support, recognize, appreciate and cheer each other and the group to victory

From: The Orange Revolution by Gostick and Elton 15

Understanding the Customer-driven Company: WS page 16

• Create a customer-focused Vision• Flood the organization with VOC• Become an expert on delivering

superior customer service• Turn your employees into customer

service champions• Destroy any barriers to superior

service performance• Measure, measure, measure• Walk the talk

16

Web of Value: VOC + MOT + WOM

43% - 74% of purchasing decision = WOM

17

WOM = Your BEST form of advertising!

78.9%23.4%

17

You MUST have a Referral PROCESS

Identify Ideal

Customer

ReferIdeal

Customer

From John Jantsch: The Referral Engine Workshop Pages 17 & 18

Final workshop page 19 & 20

THANK YOU VERY Much!!!!

If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com

My twitter address is: @awesomelysimple

Also, you might find value in the ideas I share in my blog. You can sign up for it at:www.blog.johnspence.com

Lastly, these slides and a BIGGER workbook have already been uploaded to:

www.slideshare.net/johnspence