FACT: If you are the same as the rest then why should customers bother to buy from you?
SO WHAT?: Ignore the one-liner at your peril! Wake up and smell the coffee!
In a world where competition seems to be everywhere, you need to separate yourself from the rest.
FACT: If you compete on price, only the customer will win – in the end the company with the lowest prices (and biggest buying power) will get the business. This is no place for the timid.
SO WHAT?: If you try to be the same as the rest, a ‘me-too’ business, it is incredibly difficult to survive in the long run. After all, the only way you can differentiate yourself if several businesses are selling the same product will be on price. And if you differentiate yourself on price then it becomes inevitable that you enter a price war – customers will chase the cheapest prices – those businesses with the biggest market share (and economies of scale) will be able to command better prices from their suppliers. As a result, these competitors will be able to pass on those savings to customers while maintaining healthier profit margins than their competition. You will end up cutting your profit margins, probably until you go out of business.
Legendary, remarkable customer service will be your secret weapon.
I have spent my whole working life in the business world. Before creating Ecademy in 1998, I was sales and marketing director of a computer distributor. I worked for an entrepreneurial managing director and he had an excellent hold on the value of a customer to our relatively small company. We won respect and loyalty in a very competitive market by truly seeing the value of each of our 6,000 customers.
An interesting learning curve for me was that my ‘boss’ also gave me the responsibility for customer service. He felt the outcome and quality of that department were intrinsically linked to sales and marketing - and of course he was right. However, his beliefs and foresight are only just beginning to be vindicated now that consumers and businesses have a loud voice on the Internet.
In 2010, I see many opportunities for businesses to have an impact on the relationship they have with their customers. One area I am fascinated by is the relationship that will have to be formed between the customer service and marketing departments.
In a recent study carried out by CPP Group, they investigated what constitutes bad customer service and how consumers are by no means shy about telling their friends and family about their experiences. In this study they saw a growing trend toward utilising social media to share frustrations rather than telephoning or writing to the ‘offending’ company directly. A shocking set of statistics were:
“…. young adults under the age of 35 could do the most damage to an organisation’s reputation as they are most likely to talk about poor customer service online. Nearly three in ten (28.6%) of 16-24 year olds and two in ten (19.2%) 25-34 year olds would specifically use Facebook, versus only 2.7% of consumers aged 45-54 years old; highlighting the persuasive influence of this single website”.
Source: CPP Group Plc survey – October 09 (CPP White paper on Customer Service)
The use of social media by the under 35’s begs the question ‘What are companies doing to actively seek out the conversations online that can destroy a brand?’
I believe the opportunities and threats that have emerged for companies and brands within the conversations inside social networks will continue to rise at an unprecedented speed. We are only at the cusp of the use of these social networks, with the use of mobile devices only just beginning to integrate social networking into their functionality, and the utilisation of these sites by the mass to vent their frustrations.
In 2010 we will see growing use of mobile interaction with social networks. Through this avenue, consumers will create a much larger demand for high levels of customer service. The ability to spontaneously vent frustration at the exact moment of disappointment will capture irrational, gut-felt emotions in real-time. This will require a rush to get to the ‘disrupted’ customer before their conversations become viral and damaging. Speed of feedback and use of sophisticated search mechanisms to find these conversations will be critical. Microsoft have launched their new search engine, Bing, now indexing Twitter conversations, and Google will follow. Ths is an indication of the desire to seek conversations and be part of them fast.
Customer service will become a game of ‘hunting out the customer’s emotions’, not just waiting for them to call and complain. At this point the customer service team will need to become pro-active rather than reactive. I predict that the customer service team will have as much influence on the marketing and belief in a brand as the marketing teams do.
At the start of the week we asked you to put forward your key ideas for a best practice customer service manifesto that small businesses should adopt and you didn’t let us down. Below are the best tips that any small firm should abide by, not on occasion but all the time. Thank you very much to everyone who contributed.
“Great customer service as a standard, not a bonus.”
Listening. By @picseli
Being nice, being helpful and being there. By @RealTrevorLever
Honesty. By @Web_D
Thinking about how we would wish to be treated in the customer’s position. By short couture
Understanding the context of our customers. How does your service affect their life/business? By @tazbride
Good communication and respect for your customers. By @atkirby
Under promise and over deliver. By @busyaccountant
Show that we appreciate their business. Say thank you once in a while. By @SonjaJefferson
Think of our customers' needs. Focus on their problems and make ourselves invaluable. By @SonjaJefferson
Care (and don't just pretend). By Digital Jonathon
Treat our customers as we would like to be treated. Call when we say we will, even if we have nothing new to tell them. By @nigel_dean
Act fast, speak truth, admit mistakes, undertake to fix and follow through fast...do NOT pass the buck! By @DebraTemplar
Acknowledge it is OK to make mistakes but crucially, to learn from them. Be genuine and humble in our apology. By @jamesainsworth
Communicate in ways they appreciate. Find out how they want to hear from us. Don't spam. By @SonjaJefferson
Be reliable. Do what we say we'll do or be honest when we can't. By @SonjaJefferson
Measure our success - get regular feedback from customers on our service quality. By @benpopps
Be consistent. By Will Stone
Give authority to ALL staff to fix problems for customers without miles of red tape. By @DebraTemplar
Provide multiple contact channels. Customers are different and have diff contact preferences. By @benpopps
Empower front line team to recover service without having to go to a 'supervisor' - give a budget and ensure they spend it. By @michellecarvill
Incentivise 'extra mile' service from staff. By @benpopps
Always be thinking about what we can do that their larger competitors can't. By Andrew McMillan
Treat every customer as an individual. By Chris W
Adopt proactive communication...at beginning, middle and end of service delivery. By @benpopps
Transparency helps in customer service - if we are open and honest customers often feel they can trust more. By @ronkelawal
Stay in touch. Too many businesses chase new business when existing customers are much more valuable. By @mickdickinson
Have a phone number so a customer can contact a real person directly. By @yBCmels
The quicker a caller speaks to a real person the better, even if they gone on hold/into a queue after that. By @jakepjohnson
Have we missed anything important? Please share your thoughts and comments with us in the box below.
When the Marketing Donut asked me to make a short contribution to their customer service manifesto for small businesses, I struggled to keep it brief. That’s because I think there are three customer service ingredients that are critical to every business, and they are all connected - leadership, communication and motivation.
The first, leadership, is easy to sum up concisely: it’s about having a vision of where your business is going.
Communication is very strongly linked to leadership, because every piece of communication between your workforce and your customers has to be aligned with your business vision. When I say communication, I don’t just mean what you say and write, but everything you convey to your customers. It’s the impressions and experiences they take away with them.
The third ingredient in good customer service is what I call ‘aligning the motivators’. Let me explain: what I see in most organisations is that they have a great vision of what they want to be and they have lots of communication around that vision. Then they motivate people to do the wrong things.
I’m thinking, for example, about the call centre with a strong customer service promise that gives people bonuses based on the number of calls they make per hour. The result is that if someone gets a difficult call, it’s in their interest to end the call as quickly as possible rather than to deal with the problem properly. So what about the customer service promise? The rewards you offer your team for work well done have to promote your vision, not undermine it.
So we have leadership, communication, motivation – the three ingredients of effective customer service. Then I thought about integrity. Really, what we’re talking about here is integrity - of vision, of communication and of practice.
You can’t be saying how important customers are to you and then slating them behind their backs. Nor can you say that your people are your greatest asset and then call them your ‘staff’ and not your ‘team’. You certainly can’t sell a product that’s not right for your customer. Whatever you do, do it with integrity and strong customer service will follow. Believe me, the customer soon knows if the integrity isn’t there.
If you have a really well run business with customers at the heart of everything you do I believe that should be, and is, a perfectly understandable reaction. In all seriousness, I do think that National Customer Service Week is a really good idea, but I would liken it to the annual employee appraisals that exist in many large businesses. When conducted properly, the annual appraisal should be a reflection and written confirmation of all the activity that has gone on in the past year. Sadly that is often not the case and the first an employee hears of their good performance or areas for development is at their annual appraisal. Similarly Customer Service Week, in a well run business, should be an opportunity to reflect and celebrate all the excellent service that the business has been delivering over the last year and not a focus on its customer service for one of the 52 weeks of the year.
There is lots to celebrate, too. Last week I was involved in the judging of the annual WOW! Awards for customer service and one of my categories was small business. I was really taken with how responsive and caring these businesses were and how they were using the benefits of their relatively unstructured systems to do what was best for their customers either collectively or individually. Many of the larger businesses I work with would really struggle to deliver the individual attention to detail these finalists were demonstrating.
So, one way in which you might approach this week is to concentrate on identifying all the really good things you do for customers and celebrating them with your employees. It’s very easy in a busy pressurised environment to feel that customer service is just ‘doing your job’ but using this week to take the time to recognise and celebrate your achievements could deliver great benefits for many weeks to come. Who knows, you might even enjoy it so much that it becomes a feature of every week of the year, just like a well managed annual appraisal.
At some point in time there was a shift in customer care in British retail and services. From the days of being ever-so British and polite, we now only talk about customer service in the positive when it is good — as a bonus, not a standard.
As the various political parties are in full conference swing and talking policy and proposals, here at the Marketing Donut we thought we’d produce a manifesto of our own.
This week is National Customer Service Week and to that end we want you to help us draw up a Customer Service Manifesto by sending your suggestions to us. At the end of the week we’ll turn your ideas into our golden standard of customer care and, of course, give credit where it is due to you the contributor.
What would you add to a Customer Service Manifesto to be the minimum level of practice for small businesses all the time and not just in exceptional circumstances?
Please keep your contribution brief and to the point and send it to us by: