Wednesday, July 29, 2009

Your Customer Service: It's Not as Good as You Think

Ask any business owner if he/she provides excellent customer service and they will undoubtedly answer in the affirmative. Are your customers satisfied? Again a business owner will answer yes. But the follow-up question often challenges those very same business owners: How do you know? There may be the occasional Customer Satisfaction Survey that indicates “satisfied” or “very satisfied”, but other than that, owners typically do not truly know whether or not they have established customer loyalty.

Let’s begin with some honest numbers. According to Bain & Company research, 80% of customers who leave you for your competition, told you they were “satisfied” or “very satisfied.” In that same study, out of 362 companies, 80% of companies claimed to be giving “excellent” customer service, but according to the customers, only 8% of those companies actually did. According to research by Maritz, 43% of customers who leave, do so because of poor service. To make matters worse, 73% of customers left because of employee/worker attitudes and 83% of customers told someone else about their negative experience.

This research tells us that customer evaluation tools are ineffective, at least in the traditional and typical way that they are used to collect information about customers, and their satisfaction. If these methods do not provide accurate data on the satisfaction of our customers, then how can one be sure he is delivering the highest quality of customer service? Again, I ask the question, “How do you know?”

Businesses succeed and fail on their ability to deliver consistent, high quality customer service. The quality and ability to deliver great customer service cannot be defined or determined by the business owner or the management, as research tells us there is an inability to objectively assess one’s own quality of service and customer satisfaction. When research methods indicate a “job well done” or a majority of satisfied customers, 80% will accept the results and pat themselves on the back. However, the savvy business owner, the one truly dedicated to keeping his customers, beating the competition down, and delivering the highest quality of customer service in his/her market, will refuse to accept any accolades and will continue digging for more information, and pushing to provide better service.

As a business owner one needs to obtain objective information regarding the delivery of customer service by the management team, front-line staff, and as the owner. Investing time and money into gaining objective information, is money well spent, especially considering the current cost of reaching out to and developing new customers. The goal of great customer service is not simply to have customers leave your business “satisfied.” Instead the benchmark should be one of creating “fans” who are will go out and rave about your business.

We all have those businesses we are fans of. I am a huge fan of Hogg’s Gourmet Grill in Moreno Valley. The service is unparalleled, the food is fantastic, and the owners are dedicated to each customer walking out of their business a fan. I have recommended Hogg’s in countless conversations, and have even found myself not simply asking friends if they have been there, but following up with them to make sure they have actually gone. I am not just a customer of Hogg’s, I am a fan. I am personally invested in the success of this restaurant. This is the difference between a satisfied customer, and a fan.

There are four essentials to building your business’ fan base. First, get an objective evaluation of your customer service. Second, develop a plan to build your fan base using the information you gathered. Third, retrain your managers and front-line staff members. Share with them the vision of building a fan base and how it is vital to the long-term success of your business. Finally, objectively evaluate your progress and retool as needed.

According to a 2006 University of Iowa study on customer service trends, those businesses and business owners that invest in providing a superior level of customer service are rewarded through “…superior shareholder value, higher profit margins and more stable cash flow and are better positioned to weather bad times.”


Wednesday, July 22, 2009

You Need A Go-to-Guru to Get Things Done

Every business needs a person who gets things done. Not just simply finishes assignments or tasks in a timely fashion, but goes heads down, nose to the grindstone, all out work to "git 'er dun." In other words, the "go-to guru."

Who or what is a go-to-guru (G2G)?

A G2G can be someone within your organization, or from outside the walls of the organization, you trust to get things done quickly, efficiently and even some times quietly. He or she can effect change and make things happen. They are people with connections, knowledge and, most importantly, access. Let me give you an example. Last year I was contacted by a company out of San Diego that needed to impress some clients who were going to be in town over the weekend. The company wanted to take their customers to the Chargers-Chiefs game and show them a great time. What they lacked was access. They called me and asked if I could "git 'er dun." With two quick calls and about 30 minutes of my time, they had a luxury box for 20, with field passes, catered lunch and unlimited drinks. "Git 'er dun."

Another client, who I have worked with extensively, sent an e-mail with an official letter that needed to be edited quickly and discretely. Within one business day, I returned the document, written and proofed, per her requirements.

The benefits of having a G2G are endless, but there are some real tangible benefits that can be derived from having a G2G. First and foremost, the job gets done quickly and accurately, the first time. The reason G2Gs are good at what they do is that they make sure they get it right every time. A G2G is only as good as his or her last deliverable. If your G2G doesn't deliver on even one project, don't use him or her again. While employees are a great resource, if they are sailing into uncharted waters, the timeline is much longer and the opportunity for error is much greater. Additionally, if someone from your team is going to perform a function that is outside of his or her job description, a task from the existing workload may be sacrificed in order to fulfill the request.

Access to resources is the second key for an effective G2G. Typically a G2G knows someone or a company or has a connection or has the ability to leverage other relationships. A G2G knows people. G2Gs know businesses. They are well-networked.

It can take weeks and months to forge profitable relationships, but through a good G2G, you can gain access in a matter of days. Another benefit is that relationships with G2Gs are reciprocal. One week you may need the G2G to provide a service to you or your business, and the next week the G2G may bring business to you. In the example I gave about the "letter" the favor was returned with a well-suited federal contract proposal.

The good news is that there is a wealth of talented G2Gs in the Inland Empire, many of them you know but have never thought of in terms of G2G or "git 'er dun." They are the entrepreneurs who always seem to make things happen and have a constant flow of projects and always seem to be on the move. These are the people whom as a business owner, you need to engage as part of your team. They are the people who get things done, when things need to get done.

Monday, July 13, 2009

Social Networks for Social Organizations

Social networking has been catapulted to the forefront of media attention in recent weeks.

We have witnessed Twitter and Facebook move from "hobby" to news outlet for world events. The power of social networks and their capacity to engage and inform is undeniable. Organizations that harness this power will have a greater ability to deliver their messages in a more effective way and enhance the community experience.

Social organizations like service clubs, community groups and religious organizations can greatly benefit from a well-orchestrated and managed social network. The benefits of developing a private social network are tremendous, for a relatively low cost and a high return on investment. Interactivity creates a sense of community, belonging and ownership by participants, allowing for the growth of organic relationships, a factor that is critical in maximizing engagement. Fundraising, advertising and communication are simplified and targeted with a reduced cost and greater impact.

The visioning of the social network is critical to the success of any private social network. What outcomes does the organization need to achieve in order for the social network to be deemed successful? In some cases that may include increased participation; in other cases revenue goals may be of greatest importance.

One of the challenges of the current popular social networks is limited capabilities. LinkedIn is great for developing networks and creating discussions, but it lacks the quick communication functions of Facebook and Twitter, both of which lack the "discussion" functions of LinkedIn. With white-label products such as The Social Collective, owners can customize the look and feel to match their organizational brandings and incorporate the best features of Twitter, LinkedIn and Facebook, at a reasonable rate.

Additionally, private social networking packages have seized on the convenience factor by allowing users to import Twitter and Facebook contacts as well as post updates simultaneously to public social networks in the same way as TweetDeck.

Not every organization will be a good candidate for a private social network. Religious organizations provide a natural setting for a high-quality, interactive social network, with the network serving as a great tool for facilitating learning, discussion and engagement. The adoption of a social network in a church gives the opportunity to expand activity and discussion to more than a once- or twice-a-week meeting or experience. It creates an environment that fosters the organic development of relationships between members, pastors and community.

Performing-arts organizations such as the Redlands Community Music Association or the San Bernardino Symphony can augment advertising and fundraising efforts by developing a community of art lovers online. With a captive subscriber audience, these types of organizations will have the opportunity to easily and efficiently solicit feedback from subscribers, promote upcoming events, develop a tight-knit community of art lovers, and, maybe most importantly, provide additional opportunities for sponsorship funding.

Private social networks work. SXSW, a music and film festival based in Texas, adopted a private social network for the 2009 music festival. More than 60 percent of all attendees participated -- actively, I might add -- in the social network. With more than 80,000 posts to the network, participants in the festival demanded a greater role for social networking. In 2010, the social network will be far more robust, allowing individuals to manage schedules and face-to-face interactions via the social network.

Organizations should not enter into the social network universe lightly. Each organization needs to have a fully developed and vetted plan for creating and maintaining a Web-based community. A static community will wither and die, leaving users with a bad taste in their mouths. Those organizations that take a purposeful approach to developing a successful social network will realize the benefits. Members and participants will feel more connected to the organization and take a greater, more active role in supporting the organization.