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Newsletter
January 2003A
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Version in Newsletter Format January 2003A
THE CUSTOMER IS NOT ALWAYS RIGHT:
But Should Always Be First
How long have we confused putting the customer first with
the twisted concept that the customer is always right? The
customer is NOT always right. In fact, some customers are
so wrong they should be banned from using your products and
services. What's up with the overweight family that's suing
fast food restaurants for serving up fat-laden, hydrogenated
meals? Are they right? What about the patient who says he's
got heartburn when he's actually having a heart attack? Should
his doctor to put health needs first or to agree that the
patient is always right? The two views are vastly different,
and leading with the former yields higher payoffs for both
the buyer and the seller.
Run
your business (or department) with the customer's needs and
wants as your primary focus. Putting the customer first goes
beyond the creation of products and services. When you develop
systems and structures with the aim of servicing customers,
you have fewer mistakes, complaints, and returns. You build
customer satisfaction from first to last contact by building
a customer-centered business.
Want
to offer superior customer service? Here are some tips:
1. On my honor… Be honest. If your company erred, admit
it, make amends and move on. If your customer erred and you
can still help, do so. But don't play this ridiculous customer-is-always-right
game.
2. Stock the toolbox. Equip your employees to service
customers well. Train them, give them equipment and support,
and develop systems that ensure quality customer service.
These elements empower employees. Hal Rosenbluth, in the older
version of the book, The Customer Comes Second, says that
when you take care of your employees, the customer is automatically
serviced.
3. Loosen the reigns. Bad customers threaten to drain
your resources, mental and physical. After exhausting alternative
solutions, bad customers will never be happy. In extreme cases,
it should be okay for an employee to suggest that the customer
take his business elsewhere. Sometimes it just doesn't work
out, and a divorce is a necessity.
4. Decide when it's worth the fight and when to let it
go. Sometimes good customers do bad things. Home Depot
employees report a high incidence of air-conditioner returns
come autumn when summer's heat waves are over. Wal-Mart's
return policy is to pretty much accept anything without question.
Volume is the name of the game, and bickering over a $19 blender
isn't worth the time and aggravation.
5. Seek solutions. When you convey that your intention
is to find the best solution for the customer, you don't need
to falsely butter them up with the "customer's-always-right"
routine. In fact, when they're shown to be wrong in a positive
way, you teach them how to get what they want, and you strengthen
the relationship. Solve their problems and you've built loyalty.
On
the flip side, good customers understand they might not know
all the answers and are looking for solutions. Good firms
give the best solution to the issues facing customers, and
take responsibility when things go wrong anyway. Case in point,
we test drove a Suburban from a local dealership and agreed
to purchase the vehicle if certain mechanical problems were
corrected prior to the signing. We drove it home, yet the
SUV had a sound emanating from below the front passenger's
floorboard that sounded like air escaping with a continual
thump. When the car was in neutral, the sound disappeared,
ruling out the engine. Wanting a solution, we suggested that
a portion of the exhaust assembly was dysfunctional, but our
service-shop contact told us he knew better and replaced the
actual muffler. Not only did the sound still exist, it became
so loud that passengers could not carry on a conversation.
Over 8 months, the car was in the shop 7 times to solve the
problem with no success. A mechanic insisted that "all 99
GM Suburbans have this sound, because their exhaust systems
are so long." Funny, when driving in our friends' car, exact
same make, model and year, the sound did not exist. Finally,
after a battle, the dealership's new service manager (should
be "take-em-for-a-ride manager") admitted that the problem
was what we had originally concluded-a portion of the exhaust
assembly had rusted-it could be fixed, but he would charge
us for the repair, because this was a NEW problem. They quoted
us $75.00 to repair and said they would not help us on the
price. Mmm, a $40,000-vehicle sale, and they wouldn't take
responsibility for a $75 part that should have been replaced
prior to the sale. The customer wanted solutions not hassles.
Whether the customer was right or not, this certainly was
not a customer-focused operation, and the seller will lose
future sales as a result of the poor service. (Not all customers
are right all of the time, but when they are, don't penalize
them.)
Most
likely the reason the phrase, "The customer is always right,"
came about was that some frustrated owner or manager could
not get it through to the employees that customer service
had to be the number one priority. Of course, had the manager
implemented a system and training tactics to facilitate extraordinary
customer service, the butchered phrase might not exist at
all. Instituting policies that grow over time to fit different
scenarios gives employees structure and flexibility at the
same time, enabling them to make good choices for the company
and the customer.
If
you want to build a reputation of superior customer care,
be sure to build every inch of your business with the customer
as your top priority. When you do this, it won't matter who
is right and wrong. What will matter is that you'll have happy
employees, because they'll have the tools, knowledge and authority
to service customers well. You'll have happy customers, because
they'll get what they need, want, and/or expect: the right
products, the right price, the right service, with minimal
errors or inconvenience. And you'll have happier financial
stakeholders, because your firm is more likely to profit from
reducing waste and being in a good position to gain and maintain
sales volume.
_________________________________
PARTNERSHIPS:
Gaining Synergy Through Relationships
When US Air partnered with the world's leading space-tourism
company, Space Adventure, LTD, they took the idea of partnerships
beyond man's reach. Use the latter's services and earn up
to 250,000 dividend miles. Buy US Air tickets, and you could
be the grand-prize winner of a sub-orbital flight. The concept
was interesting and creative. (Unfortunately, USAir's finances
could use a sub-orbital boost these days.)
Buy
a toothbrush and get a free tube of toothpaste. That's a marketing
partnership. Fill up the tank with Mobil gas and get a free
ski pass to the resort of your choice. Eat Special K cereal
and win 1000 American Airlines frequent-flyer points. Throw
in a $10 donation to Komen Race for the Cure, and your freebie
points bump up to 2000. When choosing a partner, sometimes
the partner offers related products and services. Other times,
the products are unrelated, but marketing stats show that
the target markets are similar. The possibilities are endless.
Here
are some tips to create synergy with a partner, extend marketing
reach, and stretch your budget:
1.
Ask what relationships would catapult your company's name
in buyers' eyes.
2.
Define the many uses of your products. Toothpaste has many
dental benefits, but can be used as a household cleaner and
a blemish cream.
3.
Make sure that all partners can win in the relationship. The
partner is attractive to you, but what do you have to offer
in return?
4.
Clearly define the purpose of the alliance.
5.
Balance the value of the outcome to the cost of time and money
spent.
6.
Ask if you're getting better results with or without a partner.
The answer may depend on the economy or the season.
7.
Set time frames as applicable, and admit when the relationship
stops working for either side.
8. Keep an eye out for indications your partner's reputation
may take a nosedive. If you're linked, your company's name
could be wearing someone else's scandal.
There
are many upsides of partnering with others. In today's world,
alliances are becoming more essential to business success.
To learn more about the types of alliances, read Intelligent
Business Alliances by Lorraine Segil or Strategic Alliances:
Formation, Implementation, and Evolution (1993) written by
Peter Lorange and Johan Roos. If time is a factor, we recommend
scanning a previous MetaMatrix newsletter articles, MEGAMERGERS:
What's the Big Deal and RELATIONSHIP LEADERSHIP: Alliance
Vocabulary. You can find them at http://www.metamatrixconsulting.com/newsletters.htm
_________________________________
David & Lorrie Goldsmith are founders
of the Syracuse based MetaMatrix Consulting Group Inc. Their
firm specializes in consulting, executive management education
and speaking services. They can be reached at 315-476-0510
888-777-8857 or emailed at david@davidgoldsmith.com
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