Monday 26 August 2013

Getting It Right For Customers

It's easy to put small touches to a product or service that make you stand out from "the rest". Some find this comes easily, others take longer to understand what this may mean for them. 

Recently, I went to buy a cordless telephone for my ageing parents-in-law. The idea was that they wouldn't have to get up and go to the phone, but instead that they would have a cordless handset with them in the house, wherever they were. The store I went to was one of the larger department stores and had a "reasonable" selection of phones.  

I was thinking of getting a set of three to four phones (one "base" unit and two-three extra "remote" handset) that could be positioned conveniently around the house so that there was always a phone nearby. This was where the problems started. The store only sold in sets of two (base and remote handset), so really, I needed to buy two sets of two phones if I was to get the four that I wanted.  I decided that this was acceptable on the basis that if I REALLY needed four, I could buy an extra two. The sales assistant showed me the contents of the box which included the power cables for the charging bases for the handsets. On closer examination, I saw that the plugs on the chargers had the European two-pin configuration, whereas for the country in which my in-laws live, the standard plug is a UK three square-pin configuration.  

In other words, the store was selling something which was unfit for purpose. The assistant showed me where to buy an adaptor (at extra cost) that would solve my problem, but seemed mystified when I pointed out that the store was selling something that was clearly unsuitable for the current environment.  Yes, the store would kindly sell an adaptor, but my question was, would it be so difficult to specify to the supplier that the charging units should be supplied with the correct plug?  Otherwise, what about including a suitable adaptor as part of the deal? 

This made me think about what I could and should be doing to ensure that I provide those extra little "touches" that make a real difference to my customers. It seems that in some markets, the "almost-but-not-quite-there" approach is acceptable, but how much extra effort would it REALLY take to provide that little bit extra that distinguishes you from"the rest"?  I've heard people saying "We're no worse than anyone else." as if to justify a substandard product or service. In this age of choice and consumer ability to expose you on the Internet, there's little room for such complacency.  

You need to remember is that it's often the LITTLE THINGS that count (like the example above with the plugs).  They take little time and often cost little or no effort, but show that you're putting yourself in your customers' shoes and understand what matters to them. Examples could be: 

·         Greeting them when they enter your premises;
·         Addressing them by name;
·         Keeping your promises (e.g. if you say you'll call back, make sure you do);
·         Fixing any blemishes on a product you're selling (even if its the last one);
·         Including something small (to you) free in the price (think about the adapters above);
·         Having a "No questions asked" returns policy;
·         Tidying up after you leave. 

In the modern age of "packaged" or "commoditised" services and products, many people have little room for "individual" touches ("they're too expensive and don't make money!"). however, if someone feels that you're treating them just that but differently and that you care, the profits will speak for themselves.  

 

I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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Tuesday 13 August 2013

Effective Problem-Solving

Everyone wants problems solved FAST (especially customers).  Being seen as someone who comes up with a “fast” solution is “good”.  We feel good when we’ve “solved the problem”.  However, this often means that people rush at things to impress bosses, customers or colleagues.  Fast solutions aren’t always the best, particularly in the longer-term. 

Why do problems occur? It happens for any number of reasons, particularly where people are involved.  Dealing with people, faulty systems, changes in processes or technology or with  customers all give rise to the problems that we face every day. 

It’s no use moaning or getting angry (unless the problem’s been caused by someone who has already been instructed in how to “do it right”).  The fastest and most effective problem-solving approach is to have a framework that works.  Here’s what works for me. 

1.      Make sure that there IS a problem.  If so, don’t ignore it in the hope that it’ll go away.  

2.      Acknowledge and accept it.  One of my friends says “We are where we are” whenever he has an “issue” on his hands.  Accepting that there’s a problem puts you in a positive frame of mind for dealing with it. 

3.      Define the problem.  What information do you need? Gather as much as possible in the time available.  Use the “Six Honest Serving Men” (Who, What, When, Where, Why, How) to understand what happened.  Often you have to treat the symptoms first, then the longer-term causes.  During the UK horsemeat saga, food retailers had little time to work out how horsemeat was getting into beef products (cause).  The short-term solution: remove all beef products (treat symptoms).  The long-term one: review supply chains (cause). 

4.      When defining and gathering information, don’t turn it into a “blame game”.  You will make people cover up vital information, making the situation worse. 

5.      Distinguish between “causes” and “symptoms”.  Inefficient processes cause customer complaints (symptoms). Treating causes is the way to go, but isn’t always possible due to cost or other practical considerations (we can’t eliminate “human error”). Is it cheaper/easier/more to treat the symptoms rather than the cause?  

6.      Is there more than one cause? Problems are caused by people, processes and systems.  Can they be eliminated? What will elimination cost?  Is it easier to change people/process/systems even if it’s a customer-caused problem?  With the UK’s horsemeat problem, people identified various causes (pressure to keep prices low, complex supply chains, insufficient checks of product and/or end suppliers). 

7.      Don't trust the first solution that presents itself.  Is there more than one solution?  Is it cheaper/easier/more diplomatic to change people/process/systems even if it’s a customer-caused problem?  Is there a short-term “fix” and a longer-term one?  Make sure you pick the right solution for the right problem.  

8.      How much time do you have to resolve the problem? The more time, the better the solution.  Solutions take more or less time to implement, depending on the problem and its cause(s).  Causes may take longer to treat than results.  Do you need to adopt a “short-term/long-term” solution? 

9.      What needs to be done?  Why? Where will it happen? How much will it cost? When will it happen?  Who will be in charge?  How do you explain this to others? 

10.  What will you do to make sure it doesn't happen again (eliminate), reduce the impact of it happening again (mitigate), or react more quickly if it does (anticipate)? 

A lot of people tell you to “follow your gut”.  “Gut reaction” actually involves the human brain reacting to stimuli, comparing them to past experiences and selecting a response within milliseconds (Prof. Robert Cialdini calls this the “click-whirr” response).  “Gut instinct” is great, but remember that you may react to the wrong signal and make the wrong decision. 

Have a problem-solving framework.  Include: 

·         Who does what
·         When to refer
·         Limits of authority to commit to action/expense
·         What needs to be done to eliminate, mitigate or anticipate errors happening again?
·         Encourage/reward people who spot problems (and solutions!)
·         Encourage participation in problem-solving/anticipation
·         Don’t play “blame games”
·         Remedial training/coaching facilities
·         Structured and focussed hiring and training approach
·         If someone continues to be a problem, despite all your efforts, let them go…
 

I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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Wednesday 7 August 2013

Customer Complaints: Welcome!

Most people would consider me mad for suggesting that customer complaints were a good thing.  We all strive to AVOID them, after all.  Personally, I see a complaint as an opportunity for a number of reasons: 

·         It shows where your business or organisation could perform better;
·         It indicates that there may be serious problems (e.g. fraud) of which you’re not aware;
·         You’re getting feedback from someone prepared to give it;
·         Many customers will just switch to a competitor without telling you what’s wrong.  If they’re telling you what’s wrong, they’re giving you a chance to put it right. 

No one likes to receive complaints.  However, a well thought out and implemented complaints framework will not only pacify customers but also act as a tool to improve performance and increase customer loyalty.  In my experience, these are the key actions that you can take: 

1.      Ensure that customers feel comfortable complaining:
None of us like to complain/criticise.  After all, it means we’re pointing out that someone else isn’t performing up to standard.  Equally, there are organisations (and I’ve experienced plenty) which take offense at even the most minor observation.  Train staff to listen before either making excuses or denying there’s a problem.  If a customer’s complaining, there is. 

2.      Make it easy to complain:
Customers may complain face to face, by telephone or in writing.  If they complain face to face, don’t make things difficult by saying that they have to put things in writing to such-and-such an address.  Have a mechanism for taking the complaint down in writing (preferably without the customer having to do the work).   

3.      Apologise that the customer is upset and take responsibility:
By this, I don’t mean that you immediately admit it was your mistake (unless it is obvious that it was), but that you will investigate the complaint and revert with an explanation. 

4.      Give a deadline for your response:
Some organisations’ “Complaints” or “Customer Care” departments seem to be empty rooms, for all the response they give.  Assure the customer that you will respond within a set timeframe, whether you have completed your investigations or not.  This shows that you’re serious.  Nominate a suitably experienced team member to investigate all complaints. 

5.      Provide a full and frank explanation:
However embarrassing, be honest.  Some organisations try to cover things up – don’t try to deceive customers.  State where your organisation was at fault and what will be done to fix this.  Apologise at this point if you were at fault. 

6.      Fix the problem:
Change processes, re-train staff, compensate the customer.  Check that the new processes, systems and training work and that the customer is satisfied with the outcome. 

7.      Train your staff:
No matter how good your processes, training staff in complaint handling is critical.  Being on the receiving end of a complaint can be just as stressful as what caused it.  Staff need to know what the customer is feeling, how they themselves are likely to react, how to get the essential facts in a possible high-tension situation, how to defuse the situation and how to move on.  Don’t just throw them into work with a manual. 

8.      Review:
Make sure you understand what went wrong and why.  Have there been previous instances of the same complaint connected to the same customer, product, person or department?  Is there a pattern?  Review complaints regularly, keep a register.

I’ve tailored frameworks for a number of organisations and customers and have found that everyone is different.  How could you use this framework?

I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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