May 24 2012

The Good, the Bad, and the Needed of Municipal Customer Service

The Tulare County (California) government has launched a new customer service program. According to Fifth District Supervisor Mike Ennis in the article County unveils customer service program, “Customer service is the lifeblood of any successful business, including local government. Thousands of residents utilize Tulare County services every day. These residents expect and deserve great customer service.”

We’ve worked on improving customer service for local municipalities for over ten years, and we’ve seen the Good (a county IT department going from “worst to first” in customer service), the Bad (employees who bring bad attitudes into training because “it’s not like the residents have a choice”), to the Needed (municipalities lacking customer service standards and plans) of municipal customer service.

And as with many businesses, when organizations do start to focus on customer service, the first thing they think about is training. While training is important, it should never be the totality of a customer service program. The ultimate goal of any customer service program is to provide consistently high levels of customer service to internal and external customers.

To gain that comprehensive focus, training is important – it creates a baseline definition of core expectations, principles, and service skills for employees. But the consistency comes from having a customer service vision defined, having management model the way, having organizational structures, incentives/accountability systems, processes, measures, communication plans, and ongoing reinforcement all aligned toward that vision.

When you think of creating a “customer service program,” don’t just fallback to training as a panacea. Ensure you’re doing all you need to do to truly create a culture of customer service.

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

May 23 2012

They Booed You. Should You Boo Back?

When Cleveland Indians’ pitcher Chris Perez chastised fans for not showing up at the stadium and for booing the first place team, a Sports firestorm erupted. How dare the player get on the fans?! What right does he have to rip fans?! Where does a rich player come off chastising people who pay their hard earned money for entertainment…and his paycheck?!

In the article Chris Perez calls out Indians fans, Perez’ rant is documented, and the team’s counter to his comments is noted as well. The team distanced themselves from his words, and praised the fans.

When you hear about this story, what it essentially comes down to is last place attendance for a first place team. So Perez’ solution to the issue is to say “Hey! We’re in first! Support us!” It’s an emotional reaction from a guy who apparently wants to win and wants support.

But that’s just the solution; nowhere in the article does it get at the root cause of the attendance problem. Many sports teams (many businesses for that matter) address issues with attendance or sales or revenue or retention with solutions without ever determining the root cause of the problem.

I was once told by the owner of a professional football franchise that the only thing that drives attendance is “wins and weather.” Well if that was true, then we could put a mathematical calculation together that looked at weather forecasts and wins, and determine attendance every year. If that were true, you could fire most anybody in business operations as well as game day staff, and there would be no impact on attendance. So while wins and weather have some impact, they don’t tell the whole story.

For the Cleveland Indians or any organization to truly fix attendance/sales/retention issues, they have to learn how to get to the root cause – what can be controlled in business operations, in particular. They have to think about how to – on an ongoing basis – learn from fans, develop relationships with fans, retain and grow business with fans.

Don’t let your company’s players try to guilt fans into spending their money with you. Find out why they left, and address those root causes to keep them.

Interested in addressing your team’s fan relations/retention? Check out: http://cssamerica.com/csssport.htm

May 16 2012

Retention is Not Marketing

One of the biggest philosophical errors in business today is the thought that marketing should drive customer retention. In the article Customer acquisition versus customer retention, the author talks about which of these options (acquisition v. retention) is the best use of marketing dollars. While there are several good points in the article, the bigger point I’m focused on is the “best use of marketing dollars” concept.

Marketers far too often view “retention” as the next “campaign” where we’ll push this product or that message in an e-mail blast or a glossy newsletter. We’ll promote this event or offer that discount with a big ad push.

But customer retention needs to be viewed differently. It’s not transaction-based or event-based. It’s not push-oriented. It’s relationship-oriented. It’s dialogue-oriented. It’s 1-on-1.

Now don’t mistake this statement to think that I’m promoting retention as something that has to be labor intensive and high cost. I’m addressing the mindset of it because this affects the strategy of it. Once you start thinking how can I retain Joe or Mary or Sue, once it’s Andre or Bea or Randy, the approach changes. It’s more personalized, more customized, more person-focused and less number focused.

You begin to think “How can I develop a relationship with this individual?” You ask “How can I keep them for the long-term?” You consider “How can I become vital to their day-to-day activities?” These types of questions lead to longer-term strategies, longer relationships, higher retention, and higher revenue.

Think about retention in 1-on-1 terms, not broad based marketing terms. Your decisions will change, and your performance will improve.

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

May 10 2012

Mind (and Mine) Your Own Business

When an Iowa City economic development group won an award for how it takes care of its current customers (i.e., local businesses), it noted that its Business Retention and Expansion (BRE) program’s name is “Minding Our Own Businesses” – great name!

In the article ICAD recognized for business retention and expansion efforts, the BRE program noted how it targets about 90 businesses per year, but the interesting point is that “65 to 70 of [the businesses] consistently provide data for its annual existing industry report.” That means that about 70-80% of local companies are providing information/intelligence that will help Iowa City to best retain them and grow with them. That’s a significant level of involvement from what are essentially the City’s customers.

So think about your BRE business or your company’s customers. If you target certain customers for retention, don’t just view them as a group you should “Mind” (i.e., take care of and build relationships with), but also look at them as customers from whom you should “Mine” data. Customers are your greatest suppliers of the information you need to retain and sell to them, so developing relationships, targeting what information to obtain, and having simple but effective methods of gathering intelligence (either through surveys or even more passive means) are all vital to retention.

Don’t just view retention and growth efforts as initiatives that involve providing great one-on-one customer service. While that’s a part of it, realize that having an intelligence-building research strategy is vital to any retention and growth strategy.

Mine your own businesses.

Check out our BRE Survey Approach: http://cssamerica.com/cssbresurvey.htm

See what CSS can do to build your existing industry intelligence through BRE News Research: http://cssamerica.com/cssbrenews.htm

May 9 2012

HCAHPS – How Performance Measurement is Driving Fear and Opportunity

Transparency is an often-used term by business executives, sometimes noting it as one of the organization’s values – being open with information within the business. But when transparency means having your performance publicized for all the world to see, it can drive a wide range of emotions.

Hospitals are dealing with this new level of transparency, according to Janette Jones of The Jackson Group – a healthcare research provider and consultancy. The Federal Government’s mandated performance measurement process called HCAHPS not only has led hospitals to survey patients with specific/consistent questions about their experience, but it has also touched on two key components of a business, its customer’s opinion and the impact of those opinions on its financial success.

According to Ms. Jones, the customer satisfaction ratings (along with multiple quality indicators) are currently being posted online for consumers to see. These patients and family members will increasingly “Look at the overall ratings and the nursing/doctor information. They’ll see how hospitals have scored, and do a comparison – ‘What is this hospital’s overall rating v. that hospital’s rating?’, and for the informed consumer, all those domains will be important if they have a choice – particularly if they are going to have surgery,” said Ms. Jones.

So when these hospitals think about how their performance – as perceived by the customer – is being measured and posted for all to see, it can create anxiety and fear – but also opportunity.

Imagine that you outperform your competitors. Having those customer satisfaction metrics posted online is free marketing. It’s an objective, customer-based opportunity for you to differentiate yourself from competitors.

Whether you’re a hospital or not, you can learn from the HCAHPS measurement and reporting process. Remember, this is essentially word-of-mouth on a government website.

So think about your current experience through the customer’s eyes. Think about who you hire and how you train them to make the impression on the customers who are evaluating you and sharing their feelings with friends. Think about what drives their satisfaction and loyalty and what you need to do to capitalize on it. And think about your competitors – find out where are they better and worse so you can improve and differentiate.

Use this HCAHPS example as a challenge that spurs your organization to become better than you are today.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

May 3 2012

Of College Football and Fan Retention

A University of Tennessee Volunteers football fan of 40 years is not renewing his season tickets. What makes this story interesting is that one person encapsulated many of the problems that fans of sports across the nation experience in one letter to the UT Athletics Director. The now former season ticket holder addressed:

  • Game times/scheduling that appease television networks but are inconvenient to ticket holders
  • How high-definition television has made the at-home experience “much more attractive”
  • Pricing of concessions v. pricing of ‘a beer in my fridge at home.’

If these points could be boiled down to two key items, those items are price and convenience. The price difference between staying at home v. going to the game is significant. The convenience of going to the fridge v. driving to the stadium, finding parking, waiting in ticketing and concession lines, finding your car, and going home are also significant.

So how do you overcome the significant price and convenience gaps? It comes down to the experience and the value. The game day experience has to be better at the stadium. The value (through the entertainment, the perks/benefits, the relationship-building environment (relationship-building between fans and between fan-team/club), the quality of the play, etc.) has to be significant enough to overcome the alternative – staying at home.

To simplify the challenge of retaining season ticket holders whose alternative is that at-home option, think of the challenge in these terms – What can you do with the experience and the value to overcome differences in price and convenience?

Narrow the battle to those four factors, and build a game plan for success.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

May 2 2012

Check Out These Customer Service Plans from the US Government

If you go to http://customerservice.performance.gov/, you’ll see on the “Official Website of the U.S. Government,” the result of an Executive Order that the President put into play in April 2011. The President required that all Federal Government agencies create Customer Service Plans. Those plans are seen at the bottom of the US Government’s Customer Service Site.

Click on a few of the Agencies to see what they included. The Executive Order required the following:

  • “Establishing one major initiative (signature initiative) that will use technology to improve the customer experience;
  • Establishing mechanisms to solicit customer feedback on Government services and using such feedback regularly to make service improvements;
  • Setting clear customer service standards and expectations, including, where appropriate, performance goals for customer service required by the GPRA (Government Performance and Results) Modernization Act of 2010 (Public Law 111-352);
  • Improving the customer experience by adopting proven customer service best practices and coordinating across service channels (such as online, phone, in-person, and mail services);
  • Streamlining agency processes to reduce costs and accelerate delivery, while reducing the need for customer calls and inquiries; and
  • Identifying ways to use innovative technologies to accomplish the customer service activities above, thereby lowering costs, decreasing service delivery times, and improving the customer experience.”

Whether or not you agree with the plans, let’s at least consider their required components. They want to improve the customer experience through the use of technology. They want to gain customer feedback and use that for change. They want to have clear standards/expectations. They want to adopt best practices, streamline service processes, and reduce the demand for customer contacts.

These components are positive. They focus on customer satisfaction, data to drive decisions, efficiencies, and use of best practices. It would be nice if there were an employee/cultural component and an overriding Customer Service Vision, but we’ll take what we can get.

Review several of the plans, and ensure your organization has at least these basic components of a Customer Service Plan.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Apr 25 2012

Of Napoleon and University Retention…

Apparently Napoleon and today’s higher education system have something in common…really.

According to Associate Provost for Curriculum Gregory Heileman from the University of New Mexico in the article ASUNM talks retention rates, “Student retention and graduation rates are similar to Napoleon’s march from Paris to Moscow in 1812. It started out with 400,000 soldiers but ended with only 10,000 soldiers.”

The point is – many students come in, but comparatively few graduate. Based on enrollment data from 2005-11, only 45% of students who had first enrolled in 2005 had graduated by 2011.

To resolve this, UNM plans to modify courses that have high failure rates to enable all students to “choose the pace of the course.” This teeters on the brink of lowering standards (or at least expectations) to make sure people keep moving through the system, but UNM assures that they “won’t let you move forward without knowing a concept.”

What else is interesting in the article is that the #1 cause of student loss if the cost of the education, but the main tactic being employed to address this is offering more extended pay plans.

It seems like UNM has decided not to focus on ways to build value but is instead trying to remove the near-term causes of pain (i.e., failing a class or having a higher short-term tuition payment). While these might concepts work to a point, they primarily support the philosophy of making things easier for the student as opposed to making the experience better or facilitating the student’s academic growth.

So let’s broaden this topic to ask a key question – What would you do if your customers were leaving because of an issue with a product or because of the product’s cost?

Would you look to build value or just extend payment terms? Would you look to make the experience better for the customer or remove their hassles? These are tough questions because a university which understands its role fully realizes it needs to grow the person (their willingness to take on challenges, be responsible, and hold themselves accountable) as it helps to build the student’s knowledge and abilities. Most other businesses aren’t trying to effect core changes in the makeup of their customers – such as making them more responsible or accountable.

So this is the approach that UNM is taking. What do you think of it?

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Apr 19 2012

Bet on Great Customer Service

A casino’s repeat business is purely dependent on whether the customer feels the exhilaration of the win…right?

Well the recent article Casinos Urged to Invest in Customer Service, Gaming Experience to Meet Multiple Challenges in 2012 says that it’s more than winning that drives loyalty and revenues.

The head of a casino consulting firm notes “Bare-bones state budgets, taxation, new casinos, social media and online gaming – these are all factors that will contribute to a challenging year for casinos.”

Essentially he says that if you’re a business with customers who are having financial struggles (like a sports team trying to keep season ticket holders), have competitors (like a hospital), are impacted by the proliferation of social media and alternative delivery changes for your service (like a college or university – or almost any business for that matter), then you might be having a tough time.

So if his premise applies to the situation of casinos, it probably also applies to the majority of other businesses today.

And what’s the proposed solution? Create a culture of customer service. The article notes that “The first step toward creating that culture is establishing service standards. The next step is training that helps employees meet those standards.”

So why is this suggested? This is where the author falls short…he doesn’t say why you need the culture of customer service, but I’ll fill that part in – it’s because the state of customer service is so poor today, that this is one area where you can differentiate yourself from competitors. It’s one place where Social Media doesn’t have a solid footing. It’s one place where you can build value when customers care more about the dollars they spend and with whom they spend.

Stop. Look at your competitors. Look at your customers. Look at your company.

Create a culture of customer service to build value with the customer and build a wall between your customers and your competitors.

Interested in assessing and improving your company’s customer service? Click here…

Apr 18 2012

Improve Outcomes by Involving the Customer

Imagine that you’re a hospital patient about to be discharged, and two employees (a nurse and a tech) are standing in front of you but looking at each other (not you). The tech asks the nurse “What should we do in this case?” The nurse responds, “Well much of this is a patient issue; I’d suggest that he do a better job of caring for himself at home, modifying his diet.” The tech responds, “That’s a great point. Patients need to take more ownership over their own health.”

It makes the customer want to yell “HELLO!! I’M RIGHT HERE!!”

Whether it’s a hospital patient or a banking client, a fast-food customer or an event patron, customers want you to talk with them – not about them as if they’re not even there.

So when you do need customers to do something (such as take better care of their health, complete forms, send in some paperwork, get their own condiments, or find their own seat), you want them to do so right the first time. You want your and their outcomes to be positive. And the best way to get the customer to do what they need to do is to involve them in the process. We’re talking buy-in, and buy-in isn’t just for employees; it’s for customers, too.

When decisions need to be made or processes require customer action, include the customer in the discussion – encourage and allow their input.

An article titled Getting results in practice: The importance of patient involvement is written by a nutritionist who advocates getting patient compliance and ownership over their health by building their “knowledge of one’s health and the skills and confidence to self-manage chronic conditions.” She states that “A more balanced power distribution between patient and doctor fosters patient confidence and allows the patient to play a larger role in achieving his or her health outcomes.”

Involve your customer in their process of working with you and in your decisions. It will build their compliance, their participation, and your sales.

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/