Monday 9 January 2012

Good Customer Service


I don’t know how many company 'Value Statements' I have read which proclaim the customer experience is the reason for their existence, yet find that the actual customer experience is anything but exemplary!  We believe we know what to do, but, the delivery remains unsatisfactory.

How do we get it so wrong?  Let’s examine one story.

Bob decides to start a business.  He has great rapport with people and knows he can provide a better customer experience than what he has witnessed.  He’s a terrific salesman.  So, he labours for several years developing a sustainable auto dealership.  This is a tremulous industry as any number of factors can affect the bottom line, recalls on vehicles, ratings on vehicles, economy and price point, etc.  But Bob, has himself a dealership and he has great loyal clients and he treats every client as though they are his most important client.  His sales and service people are instructed to do likewise and the dealership flourishes under his guidance.  Complaints are minimal, but, are dealt with immediately.  Clients are treated as though their time and satisfaction is the most important thing to Bob and consequently, loyalty to Bob and his dealership even in tough times becomes solid and thrives. 
Now, Bob has a son of whom he is most proud.  His son will someday take over from Bob.  Bob ensures his son has every opportunity and advantage and provides him with a solid education and exposure to things that Bob himself didn’t have as he was growing up and during his struggle to develop his business.
At last, after 25 years of running his business, Bob installs his son, Jack, in the business.  Jack has a university degree and many years of living the kind of life he likes, golfing, travelling and hobnobbing with the upper middle class.  He knows what they like and he knows he can do a great job with the business, catering to them.  Within a couple of years of working with his dad, Jack finally becomes manager of the business. 
The first year of his management with his father’s guidance, Jack provides a respectable showing. 
The second year, his father removes himself from day to day guidance to allow Jack the opportunity to assert his management style into the company.  Jack likes to look at the bottom line; after all, he's an MBA graduate.  The spreadsheets tell him his money is in the service department, but, there is an ongoing expense there that he’d like to eliminate – the 'loaner'.  The loaner is a vehicle loaned to clients when their vehicle is being worked on.  The practice, started by Bob, provided his clients with the ability to continue working for the day, even while their vehicle was out of commission.   This practice was especially appreciated by business people who couldn’t stop making business calls for a day to allow their vehicle to have work done on it.  Unfortunately, Jack, who always had a vehicle at his disposal from a doting father, doesn’t understand the good will this has created and decides it’s an unnecessary expense.  He cancels the 'loaner'.  Instead, he keeps a shuttle vehicle, driven by an employee, to provide his clients rides back to their homes or businesses.  The new practice is not well received, but, the difference in the bottom line over-rides any hesitation Jack may have had at keeping it.  Jack loses some customers who don’t buy their new vehicle from his establishment when they decide to buy again.  But, service is still where the money is and there are enough existing customers to warrant maintaining the status quo. As existing clients drift away, developing new clients come through advertising campaigns and Jack is pleased with the progress.  But, the ever demanding cost of creating new clients is daunting.  Jack sees this as a sign of the times.  He decides it’s time to ensure that everyone who comes into the showroom knows that they are committed to good customer service.  Consequently, when anyone arrives at the dealership they are greeted by a smiling fresh-faced – ‘20 something’, who asks them if they can be of assistance and directs them to sales, service, warranty or whatever their request may be.  This person is minimum wage but let’s people know they are interested in their business.  The person at the parts/service counter, is also very helpful, and they always let you know they're giving you great customer service. 
Unfortunately for Jack, what he doesn’t realize is, when you give great customer service, you don’t have to tell people – they will tell you!
Poor Jack.  His understanding of business management is strictly from a spreadsheet perspective.  He understood customer service was important, but, didn’t know how to provide it without cost to himself which he was unwilling to give.  He consequently paid more for advertising than his father ever had and still needed to constantly advertise to make up for the annual percentage of lost clients.
Jack’s father, Bob, learned good customer service from face to face encounters with his customers.  He listened and knew what to do to get it right and because he listened to those who were opening their wallets to spend at his dealership, he was rewarded with extremely loyal clients, who would never think of buying anywhere else. 
The same principles apply to all businesses where repeat clients are the lifeblood.  Actively listening to clients, providing them with added value, understanding good will and being mindful of others' time, dollars, and decision making power!  When all of these align, you will work hard to establish clientele, however, you won't have to worry about constantly developing new clients at the same rate as our friend, Jack.  

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