BEFORE YOU CAN BE CUSTOMER CENTRIC, YOU MUST BE EMPLOYEE CENTRIC

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One of the most popular phrases in customer service today is customer centricity. This is simply a focus on the customer, which means that everything the company does, every system and process that runs the business, has the customer in mind. The customer centric organization wins because it focuses on the customer. This reminds me of Jan Carlzons organizational chart from the 1980s: the upside down pyramid. Carlzon ran Scandinavian Airlines and took the loosing airline to the most admired airline in the industry. Originally, the CEO was at the top of the pyramid and the organizational flow went to the second tier or, senior management, to the next tier, or middle management, to the base of the pyramid or the, front line. Only this last group, connected directly to the customer. Carlzon said this was upside down. The customer should be at the top. Everything should flow up to the customer, who should be at the top, not the bottom, of the pyramid. This was brilliant thinking, and almost thirty years later business experts now refer to this as a customer centric organization. Carlzon also said that if youre not directly serving the customer, you are probably serving someone who is serving the customer. Possibly this is the origin of the concept of the internal customer. Carlzon knew that employees had to support each other internally, in order to take care of the companys outside customers. But just servicing the internal customer isnt enough. More to the point, the way you service the internal customer needs to be just as customer centric as you want the organization to service the outside customer. By the way, Im making the assumption that you want the experience for the outside customer to be amazing. So, it stands to reason that your organization must be employee centric before it can becustomer centric. Take a look at the most admired places to work. There is a direct correlation between companies that are rated high in work environment and those that are rated high in customer satisfaction ratings. More important, this also leads to more financial success. Since weve been talking about airlines, Southwest Airlines is arguably the most profitable airline in the industry. Ive written about Herb Kellehers belief that if you take care of the employees first, they will take care of the customers (passengers). In turn, the customers will come back. This process contributes to the bottom line. Thats because Southwest Airlines is not just customer centric, but more important, they are employee centric. So, which comes first, customer centricity or employee centricity? I believe you first choose to be customer centric, but must first execute on the inside of your company and be employee centric.

Dell Customer Service Think Tank Recap

This past Monday in Austin, I moderated a Customer Service Think Tank that was hosted by
Dell. Companies

such as Intuit, Citrix, Nationwide and Wells Fargo as well as

customer experience experts Liz Strauss, Becky Carroll, and Susan Abbott were in attendance. We discussed challenges and best practices in social service, internal issues, mobile, tools and technology, and more. We also talked about trends and the future of service.

HURRICANE SANDY GIVES OPPORTUNITY FOR CUSTOMER SERVICE FOCUSED COMPANIES TO SHINE
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Hurricane Sandy is causing havoc on the East Coast. My prayers go out for all of those who find themselves in harms way of the storm. Its events like Sandy that rally great people together for a cause bigger than just themselves. This is where the unselfish get the spotlight, even if they dont want it. Businesses can offer their support as well. This morning I was asked by several people about customer service and catastrophic events. Here are some of my comments. First and foremost, this is a great opportunity for companies to show they care more about the customer than they do about the sale. Customers in need are different than customers in want. This is where the words helpful and caring come into play.

The customer focused companies are the ones that assemble a team of volunteers to support the communities in trouble. Youll see employees rallying together to raise money and form teams to go out and help those in need. For example, in past natural disasters, Ace Hardware, who is known for being involved in the community, goes out with chain saws to help cut and remove trees that block roads, provide generators to run electric for hospitals and disaster centers, help remove snow I think you get the idea. The bottom line is that they are there to help. Companies must also be careful about being perceived as opportunistic, even if they arent. Sure, there are organizations who will take advantage of a bad situation, but fortunately that happens less than those that truly want to help. I just received an email about a hotel chain offering 20% off their rates. Their intention is to offer a lower than usual rate to those in need of a room, however it may be perceived by customers as a company trying to take advantage of people versus trying to help them. Customers must also show some consideration. It is not only about businesses doing their part. Companies impacted by the storm are in catastrophe mode, which means they may not be able to get to their office or be open for business. Please be patient and tolerant. These organizations arent taking a vacation. They are just as frustrated and concerned as you are. Realize they want to take care of you, but nature is getting in the way.

RESTAURANT MANAGER SETS BAD CUSTOMER SERVICE EXAMPLE

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The other night I had dinner at a favorite restaurant. Unfortunately, a bad customer service experience tainted the evening. The good news is that this event created a learning opportunity. By the way, you dont have to be in the restaurant business to appreciate and learn from this story. As I take you through the story and the lessons we can take away from it, think about how they apply to your business. On that evening I ordered the pasta dish that Ive been ordering for years. It came out wrong. It had peas in it. Not just a few peas, but loaded with peas. And I hate peas. I picked up the menu and confirmed that I hadnt misread the description. Nowhere did it say peas. I motioned the server over and told her about the problem. She had a great attitude and was happily going to take care of the situation. But, just about then, the manager who had been observing, stepped in. I had never seen this manager before. He didnt apologize, and instead told me that they have two chefs and that this one likes to put peas in the pasta dishes. He said that most people find that the peas are a pleasant surprise. Ah, that explains it. A pleasant surprise not for me! And I nicely told him so. He just stared at me. I could tell how uncomfortable the server was at this interaction. She wanted to do something, but the manger had taken over, and he was blowing it. Eventually, the manger asked if I would like to get a different pasta entree. I asked if they could make the same dish without the peas, as was on the menu. He finally took the dish away. Several lessons come out of this incident: 1. 2. 3. 4. The server was handling things just fine. The manger got in the way of her taking care of me. The manager didnt respond with the same enthusiastic attitude of taking care of me, the way the server did. He didnt even apologize. Managers should set examples good examples. The manager should have immediately taken the dish away. If you can get a problem out of the customers sight, do it quickly. Once the dish has been taken away, then launch into recovery mode. The manager made an excuse rather than give an explanation. There is a fine line between excuses and explanations. An explanation comes with an apology and doesnt come across as defensive or aggressive. The manager wasnt listening to me. Why would he call the peas a pleasant surprise when he knew I didnt want them in the pasta? Because, he was defending the decision of his chef to change the ingredients. (Read that as changing a process if you arent in the restaurant business.) of confidence. The next time I order this pasta dish Im going to have to ask if it has peas, because you never know whos cooking in the back. Will it be the chef that likes to pleasantly surprise people with ingredients that arent listed on the menu or the chef that follows the recipes I love the ones that make me want to come back again and again. The restaurant is great, and Im going back, because I know this is an isolated incident. But, what if this was my first or second time at this restaurant? Given all of the good places there are to eat, would I want to spend my hard-earned money at a restaurant, or with any type of business, that makes mistakes? My friend Tom

5.

6. Finally, the incident broke the consistency of prior experiences, which now leads to a lack

Baldwin, former CEO of Mortons Steakhouse says, Great service is mistakes handled well. Thats great advice for any business.

Why You Need to Do the Math for Your Customers

Too many of your interactions with customers involve numbers and math. Your company markets 30% discounts or $15 off your next order. While sales and discounts can motivate customers to take action, there is a downside to them. These number-based discounts require that the customer does some math. Unfortunately, math isnt always the easiest thing to do in your head. Sure, customers could pull out their phone and use the calculator. However, this is extra friction between the customer and the purchase. You need to remove this friction. You need to do the math for your customers. At a glance, you want your customers to understand your pricing and any associated deal they will be receiving. On a recent trip to Old Navy, I spotted this pricing chart next to a discounted rack of clothes: The pricing table clearly shows you what youll pay for any given product. Just find the list price on the clothings tag and you can easily spot the actual price you will pay. A chart like this is great at bridging the math gap in prospective customers heads. While the example above is effective, it is still a solution to something other than the root problem. The ideal solution would be that the customer picks up a shirt and sees they price they will pay. No questions. No doubts. However, by showing the list price and discounted price side-by-side the customer can internalize the great deal and savings they will be getting. In this case a little friction (checking the label and the chart), plays in favor of the store because it enforces the value proposition of the discounted merchandise. Take a look at how you present prices, numbers, and discounts to customers. Are they having to do the math, or are you presenting an easier way that helps them see the actual, final number and makes you look like a great deal?

The LAKE approach to Measure Customer Experience

On Friday when our associate Bruce Lebowitz spoke on BlogTalk Radio on Branding Dialogues and one of the points he addressed was the LAKE approach to measuring the customer experience in the call center. LAKE stands for:

- Language, the language and vocabulary the agent employs, - Attitude, the attitude demonstrated by the agent during the interaction,

- Knowledge, the knowledge employed and demonstrated by the agent during the interaction, - Effort, the effort required by the customer to get to complete the interaction.

Employing the LAKE approach it is possible to assess the agents ability to connect with the caller and demonstrate the companys commitment to serving the customer.

This approach ties into and links to the desired customer experience and should echo or mirror the brand expectations created by Marketing. The LAKE approach is well aligned with the Taylor Reach Customer Experience Snapshot (CX Snapshot) audit process. The CX Snapshot measures the emotional and rational connections between the agent and the caller and the effort the customer is required to expend in the process

Treating customers kindly increases loyalty, business

Remember when a friendly greeting and a genuine smile used to be part of doing business? It may sound oldfashioned, but it wasn't all that long ago that making a customer feel special -- not the lowest price or fastest shipping -- is what won their loyalty and kept them coming back. In these fast-paced, technology-driven times we live in, when most business transactions occur online and not in person, we seem to have lost touch with the importance of being kind to one another. And yet, none of us have lost the desire to be treated kindly, nor has technology changed the value of kindness. Without costing a penny, it is still the most effective way to build greater brand awareness, boost customer loyalty and keep employees happy. Thankfully, businesses are finding innovative ways to bring back kindness. One random act of kindness that went viral recently is the story of a young man from New Hampshire whose grandmother was gravely ill with cancer. While in the hospital, she told him that she was craving a bowl of clam chowder from her favourite restaurant chain, which only sold that particular variety on Fridays. The grandson called the local franchise and the manager not only made a batch of chowder especially for the grandmother, but included a complimentary box of cookies as a gift. The young man shared his story on Facebook, which then got posted on the restaurant's fan page, generating over half a million "likes" and more than 22,000 comments of praise and appreciation. The manager's thoughtful and empathetic gesture resulted in the type of global attention, word-of-mouth advertising and a surprising boost to the company's reputation that money just can't buy. Consumers are hungrier than ever to be shown a little kindness and compassion. We've become so accustomed to dealing with impersonal and inflexible corporations that it's little wonder that such thoughtful acts are so well received.

It is possible to embrace technology and at the same time, hold true to the belief that efficiency should not come at the expense of humanity. Companies, large or small, can find ways to incorporate kindness into their everyday actions for no other reason than giving back makes good business sense. Not only does it create a feel-good factor around your brand, it has been reported that 71 per cent of people make it a point to buy brands from companies whose values are similar to their own. At the same time, kindness is a key factor in retaining valuable employees in a competitive environment. Keeping your people happy creates a positive and productive workforce, and even the smallest pick-me-ups, from treating staff to free ice cream to handing out free coffee mugs, can make a huge difference. Companies can also be kind by: -- Showing genuine interest in customers and colleagues; after all, people can see right through superficial small talk. -- Being polite and courteous in all types of communications, both internally and externally. -- Taking the time to listen when a customer has a problem or frustration and going out of your way to right a wrong. -- Sharing the glory with your people when the company wins an award or meets a target goal. -- Going the extra mile for someone when they least expect it -- even if it's not in your job description. -- Being kind to those who aren't kind to you; understand that there's a hidden reason why they are upset and that you have the ability to disarm the situation with compassion. -- Lending a helping hand (regardless of job title or status) and pitch in to help the team or company succeed. -- Providing constructive feedback to an employee or to a co-worker with the intent on helping them to learn and grow. -- Staying in touch with what people are saying about your company (and industry) in social media and using the information to reach out to customers. In his book It Worked For Me, former U.S. secretary of state Colin Powell writes about the power of kindness, and that being kind doesn't mean being a pushover. "You can never err by treating everyone with respect, thoughtfulness and a kind word," he says, a notion that is obviously as true in the situation room as it is in the board room. "Always show more kindness than seems necessary because the person receiving it needs it more than you will ever know."

"Striking" Success Through Customer Experiences: What Corporate America Can Learn From Bowling
In the last two decades, it seems everything in our world has undergone some sort of change -- from the way we watch our entertainment, make purchases, or even communicate with friends and colleagues. But despite market shifts and technological innovations, some things just don't change. Let's talk about the industry I love -- bowling. It's an industry that has seen profound change but at its core, the game remains the same: the person who knocks over the most pins wins. Bowling centers themselves, however, have undergone a significant transformation, from the demographics of our most frequent customers to the investments we make and the services we offer. And in the last few years, bowling's popularity has remained America's largest participatory sport -- ranking higher than football, baseball, basketball or golf. In fact, last year, more than 71 million Americans hit the lanes at more than 3,500 bowling centers around the country.

The bowling customer has evolved as well. While there are still lingering misperceptions of smoke-filled lanes dominated by male bowlers, the reality of today is quite different. Walk into any bowling center across the country and you'll see a clean environment filled with women, kids, young adults and hipsters (and some of us middle-aged guys too). Our consumers today are educated and in higher income brackets. As a result, we've had to tailor the bowling experience to these new crowds -- competing not only for their money, but more importantly for their time. There are a few things we believe other brands can benefit from our successes and experiences, such as: It's not about the brand -- it's about the experience. Bowling centers saw attendance drop in the late 1980s and early 1990s. As an industry, we were failing to evolve and the world was changing quickly around us. However, we listened to what our patrons wanted and made investments in our offerings accordingly, from the kinds of food we provide to in-center games and entertainment and even to the music that we play across our centers. The bowling center once again became more than a place to bowl It was a place for friends to gather, eat good food and have a memorable experience. That's when we saw the numbers start to rise. Seek first to understand and then be understood. Great bowling proprietors tell us that they stay at the top of their game by listening to their customers -- mingling with them, asking questions and gathering as much feedback as possible. And we do the same by speaking with our proprietors -- these people know our industry better than anyone and help our association maintain relevancy and deliver value. The underlying message here is that before you move forward in marketing to any of your stakeholders, it is wise to do plenty of listening and engage with them to help you shape your approach in creating a stellar customer experience. Adapt to the local community without the national pressure. Fine dining, laser tag, sports bars and redemption arcades -- every single bowling center has its own unique footprint shaped by the needs of that particular community. That doesn't mean the bowling industry is decentralized; rather, we've empowered our local proprietors to act on behalf of the customer. If anything, solidarity across our industry is now unprecedented. Remember, it's not about building a big national brand -- it's about providing that memorable customer experience to each and every customer, no matter where they live. Think outside your four walls. In many ways, the essence of social media has been alive in bowling centers for some time. People from all backgrounds and age groups gather in one place to share a common interest and express their affinity for a game they love. So, social media was a natural evolution for the bowling industry. Today, we're working on increasing our social media presence with apps that share scores and tips and increasing the conversation among bowling fans and supporters, including celebrities ranging from Justin Bieber to Jeff Bridges. Work just as hard as your employees do to enhance the customer experience. Bowling is a seven-day-a-week business and an industry with an incredible work ethic and "roll up your sleeves" attitude -- not just at the local level but at the national level. It's imperative that our senior leaders "walk the talk" and demonstrate the importance of the customer experience by showing personal efforts to connect and deliver service to consumers. Walk in the shoes of the customer. In the bowling industry, this could be taken literally -- and from time to time, we do slip on some bowling shoes and take a stroll. But more importantly, we aim to understand exactly what our customers expect from the moment they walk into our doors to the moment they leave. We make sure we know what defines a good customer experience and, equally as important, what could turn a good customer experience bad. It only takes one unpleasant interaction to leave a bad taste in the customer's mouth. Make sure you're providing your managers with constant education, opportunities for knowledge sharing, and the tools to train their staff to ensure every customer experience is the best it can be. The world is still changing, and few businesses will be the same in 10 years as they are today. But the customer experience should always be the number one priority of any growth strategy -- and the hallmark of a timeless brand. In today's environment, the competition is fiercer than ever and it is the brands that deliver the best customer experience that will win.

5 Tips for Using Social Media to Boost Customer Loyalty

One of the biggest challenges businesses today face is maintaining customer loyalty after the sale. And today, with 1 in 5 people using some form of social media , it only makes sense that businesses have also set up accounts on these social media sites to reach these people. In fact, more businesses have created a Facebook page (11 million) than have claimed their Google+ Local listing (8 million). Plus, as 63% of consumers using social media choose local businesses with a social media presence, it is crucial that businesses take advantage of these platforms to stay engaged and connected with their customers and increase customer retention rates. Here are five easy ways to retain customer loyalty through social media engagement. 1. Ask for Customer Feedback The first action that you can take to boost customer loyalty is to ask your customers for their feedback about yours products, services, and customer support. Whatever your business offers, you can ask your customers, Do you like this? You can always directly ask them after a transaction, but you can also elicit feedback indirectly. For example, you could post a positive review on a social media site or a picture of the waiters at your restaurant with a statement like, We think our staff is awesome. Dont you? or Like/RT this if you think our staff is great! Some customers will agree with you, but some may post a comment about a negative experience with your business, so its best to be prepared if they do. But no matter what they say, youll learn more about what you can do to change and grow your business as well as letting your customers know that they have a voice about your business. 2. Run Social Media Contests What better way to boost customer loyalty than to have a fun contest for your social media fans and followers? If done consistently, you could potentially see an increase in your customer engagement on sites like Facebook. One easy Facebook contest you can try is a photo caption contest, and you can do this with or without a giveaway option. The concept is to post a photo, with a tagline like: Caption This Photo, and your audience will make up their own headlines to describe the photo. You can use photos related to your business, like someone eating a delicious plate of food from your restaurant, or a cute animal visiting your vet clinicalways with permission, of course. Whether or not you are giving away a prize for the best headline, like a coupon or freebie, you should publicly recognize the winning customer, and if theres a prize, share what they have won. You can also ask your customers to submit their own appropriate photos for the next round. This type of social game is sure to encourage more engagement and boost customer loyalty. 3. Post and Pin Engaging Content Posting engaging content on Facebook and other social media sites is an essential way to stay connected to your audience. For instance, the first thing customers will see when they visit yourFacebook timeline is either the newest piece of content you have posted or the content you have pinned to the top. So, by pinning fresh content to the top of your page, like photos and videos, interesting stories, engaging questions, and useful tips, youre more likely to engage consumers right away. In fact, one Facebook study from Wildfire shows that images get more comments in a business timeline, and that pinned content generated 39% more likes and 32% more shares than unpinned content.

4. Respond in a Timely Manner Now that youre engaging consumers on social media, its important to respond to questions, comments, and other feedback in a timely manner. In fact, one study shows that 25% of consumers on Twitter expect a response from business owners online, but in reality, only 9% receive a response. On Facebook, 35% of consumers expect a response after Liking a business, but 58% never hear a response from a company. With your timely responsiveness, your customers will surely know that you care about what they say. 5. Get Involved in Your Community

Getting involved with your community not only helps build your brand offline, but can also boost your online reputation from customers who see you have a vested interest in local charities or organizations. You can connect with your existing customers and retain their loyalty by supporting a cause that is important to your community, like sponsoring a Little League team, volunteering at a soup kitchen, or donating to a local charity. Use this opportunity to give back to your community and show that what you do also has an impact outside your business. For instance, you could run a campaign and announce you will donate one dollar per Like or retweet to raise awareness and funds for a local charity you support to help increase awareness for the organization as well as customer engagement on your social sites. Dont forget to post pictures related to your involvement to boost loyalty with your existing customers.

Make Customers Feel Like Royalty to Cultivate Customer Loyalty

It may be a little clich or obvious, and admittedly sounds a little like the thematic line from the movie Elf (one of my favorite comedies), The best way to spread Christmas cheer is singing loud for all to hear. Nevertheless, I think its vital to continually re-evaluate your customer service approach to ensure its effectiveness, and to remind business leaders and all employees of the following: If you want to retain customers who are loyal to and advocates for your company and your brand, then you need to elevate your customer service to royalty level, befitting of nobility. Your customers want and need to feel that they are the most important aspect of your businessthat your ultimate goal is to serve them and provide them with what they need to be successful.

Are you really doing it?

According to the 2012 Brand Loyalty Survey by ClickFox: 72% of consumers indicated customer service is what makes them loyal to a brand

34% of consumers said that providing exceptional 24/7 customer service is the best way a company can build loyalty with them

63% of consumers who said they would tolerate inconveniences inflicted by certain companies or brands would do so because of superior customer service provided by the company

In order to reach a royalty level of customer service, you must give priority to the following four areas: Hire the right people and empower them to meet customers immediate needs

Build trust by providing a consistent and flexible service experience

Solicit feedback from customers to show how much you value them

Keep a client mindset (regardless of whether youre a B2B or B2C business)

Hire the Right People and Empower Them to Meet Customers Immediate Needs Hire the right people and empower them with the authority to make judgment calls to resolve customer issues without having to jump through hoops to get management approval. Front-line employees usually know best what should be done to satisfy customers immediate needs. But you need to ensure that each employee with a customer touchpoint actually thinks like a customer, and continually asks themselves if theyre treating customers the way they want to be treated. Employees need to be empowered to make on-the-spot service decisions, but at the same time challenged to continually find ways to improve their own quality and level of customer service. Customer service training must be conducted, and quality of service must be reinforced on a regular basis (e.g., through implementing recognition and incentive programs).

Build Trust by Providing a Consistent and Flexible Service Experience Establishing trust helps to build an emotional connection and, ultimately, more loyal purchasers. Build trust my making you interactions with customers the best they can be. Differentiate your customer service experience by bending over backwards for your customers. Offer genuine value in your service, with no question about your customer service promise. Aim to over-deliver. If you have the opportunity, whether online (via social media), in person or on the phone, provide some useful resourcessome unexpected extras such as offering advice to customers about using your product, giving them supplemental guidance in a particular subject area, or providing follow-up steps for them take to ensure they continue to receive quality service from you. Above all, your business (and everyone who has interaction with customers) must be consistent in the branding and delivery of your service experience.

Solicit Feedback From Customers to Show How Much You Value Them People are more likely to buy from you when you prove to them that your business understands them, so ask for feedback at every customer touchpoint. You need continual feedback from customers to understand what they want from you in terms of service, and what they think about how well you are meeting their needs. Have interactive conversations with your customers and ask them what they want and need. Use various channels and formats, including in-person interactions, surveys, and social media. Ask them how your service impacts

them and encourage customers to tell you what you could do better. Always view customer complaints or constructive criticism as an opportunity for improvement. When you take time to LISTEN and RESPOND quickly to customer feedback, youre showing them that you care about them and building relationships that result in increased loyalty to your business.