Feb 12 2004 presentation to the Association of IT Professionals

1. The Importance of DevelopingThe Importance of Developing
Top Notch Customer ServiceTop Notch Customer Service
Skills in Today’s EconomySkills in Today’s Economy
AITP – February 12, 2004AITP – February 12, 2004
Thomas (Pete) PetryThomas (Pete) Petry
703-362-8180703-362-8180
TJPetry@aol.comTJPetry@aol.com

2. The Customer Service CrisisThe Customer Service Crisis
• Customer loyalty to many brand namesCustomer loyalty to many brand names
has been eroding for many many years.has been eroding for many many years.
• Most managers don’t know the root causeMost managers don’t know the root cause
of their customer dissatisfaction issues.of their customer dissatisfaction issues.
• Many managers don’t comprehend theMany managers don’t comprehend the
seriousness of customer dissatisfaction.seriousness of customer dissatisfaction.
• Few managers even know what goodFew managers even know what good
customer service is!customer service is!

3. Crisis ContributorsCrisis Contributors
• Increased competitionIncreased competition
• Short-term economicsShort-term economics
• Technological contributorsTechnological contributors
• Rising demandRising demand
• Rising customer expectationsRising customer expectations
• Corporate downsizingCorporate downsizing

4. Product/Service RelationshipProduct/Service Relationship
• Good Products = Good Customer ServiceGood Products = Good Customer Service
• Bad Products = Bad Customer ServiceBad Products = Bad Customer Service
• Quality ControlQuality Control
• Six SigmaSix Sigma
• ISO 9000ISO 9000
• Remember the Maytag repairman?Remember the Maytag repairman?

5. Bad Products = Dissatisfied CustomersBad Products = Dissatisfied Customers
• Problematic Customer Service IssuesProblematic Customer Service Issues
• More complicated resolutionsMore complicated resolutions
• Slower resolution timesSlower resolution times
• Higher Service CostsHigher Service Costs
• More dissatisfied customersMore dissatisfied customers

6. The Customer Service ChainThe Customer Service Chain
• Good Products = Happy CustomersGood Products = Happy Customers
• Happy Customers = More GrowthHappy Customers = More Growth
• Growth = More CustomersGrowth = More Customers
• More Customers = More Employees and ResourcesMore Customers = More Employees and Resources
• More Resources = Bigger Customer Service ChainMore Resources = Bigger Customer Service Chain
– Creates Potential for Poor Service every step of the wayCreates Potential for Poor Service every step of the way
– Even the best products and services receive complaints nowEven the best products and services receive complaints now
and thenand then
– More phone callsMore phone calls
– More phone calls = more potential to go wrongMore phone calls = more potential to go wrong
• Remember Murphy’s Law? Everything that can goRemember Murphy’s Law? Everything that can go
wrong – WILL go wrongwrong – WILL go wrong

7. Did You Know?Did You Know?
• Customers who complain represent onlyCustomers who complain represent only
5% of customers who are dissatisfied.5% of customers who are dissatisfied.
• Between 54% and 70% of dissatisfiedBetween 54% and 70% of dissatisfied
customers will do business with ancustomers will do business with an
organization again if their complaint isorganization again if their complaint is
resolved in a timely manner.resolved in a timely manner.
• Satisfied customers tell less than 5 peopleSatisfied customers tell less than 5 people
• Dissatisfied customers tell more than 20Dissatisfied customers tell more than 20

8. In a recent survey of corporateIn a recent survey of corporate
managers - When asked:managers - When asked:
• Are you sure your customer service is what isAre you sure your customer service is what is
should be?should be?
– 51%51% NoNo
– 49 %49 % YesYes
• How do you earn customer loyalty?How do you earn customer loyalty?
– 70%70% Great ServiceGreat Service
– 19%19% Quality MerchandiseQuality Merchandise
– 5%5% Thank-you notesThank-you notes
– 4%4% Low PricesLow Prices
– 2%2% OtherOther

9. The Ultimate Weapon!The Ultimate Weapon!
More and more customers are expecting the very best from theMore and more customers are expecting the very best from the
customer service organizations they deal with. They expect us tocustomer service organizations they deal with. They expect us to
show up to work on time, in the mood to help them, regardless ofshow up to work on time, in the mood to help them, regardless of
how our day is going. They expect us to answer the phoneshow our day is going. They expect us to answer the phones
immediately, consistently, without the use of voice mail technology,immediately, consistently, without the use of voice mail technology,
and always have the answer they are looking for in our back pocket,and always have the answer they are looking for in our back pocket,
ready to provide upon a moments notice. They expect us to beready to provide upon a moments notice. They expect us to be
enthusiastic, energetic, respectful, accurate, and courteous—andenthusiastic, energetic, respectful, accurate, and courteous—and
they expect this consistently, every time they call us. They expectthey expect this consistently, every time they call us. They expect
us to go the extra mile, to treat them with dignity and respect,us to go the extra mile, to treat them with dignity and respect,
regardless of the circumstances. They expect us to get everythingregardless of the circumstances. They expect us to get everything
done—and to do everything well (every time—on every call). Theydone—and to do everything well (every time—on every call). They
don’t get this very often, so when they do, they remember!don’t get this very often, so when they do, they remember!

10. Customer Service BasicsCustomer Service Basics
• Listen to your customersListen to your customers
• Put your customer service policies inPut your customer service policies in
writingwriting
• Establish support systems that empowerEstablish support systems that empower
employees to gain and maintain serviceemployees to gain and maintain service
superioritysuperiority
• Reward employees who practice itReward employees who practice it
consistentlyconsistently

11. Customer Service BasicsCustomer Service Basics
• Be certain that your passion for customerBe certain that your passion for customer
service runs rampant throughout your entireservice runs rampant throughout your entire
organizationorganization
• Be genuinely committed to providing moreBe genuinely committed to providing more
customer service excellence than anyone else incustomer service excellence than anyone else in
your industryyour industry
• Learn what your customers valueLearn what your customers value
• Let customers know what your are doing forLet customers know what your are doing for
themthem

12. Who is the customer you listenWho is the customer you listen
to?to?
• Internal or ExternalInternal or External
• Active or InactiveActive or Inactive
• Current Customer or Prospective ClientCurrent Customer or Prospective Client
• EmployeesEmployees

13. How Do Your Customers Behave?How Do Your Customers Behave?
• Contact you seeking information orContact you seeking information or
referralsreferrals
• Call you to pay a billCall you to pay a bill
• Seek information regarding network statusSeek information regarding network status
• Track ordersTrack orders
• Seeking information regarding a judgmentSeeking information regarding a judgment
or claimor claim

14. What Do Your CustomersWhat Do Your Customers
Value?Value?
• Product and Service PerformanceProduct and Service Performance
• ValueValue
• AttentionAttention
• CommitmentCommitment
• PromptnessPromptness
• CompetenceCompetence

15. See Things From The CustomersSee Things From The Customers
Point of ViewPoint of View
• They want to be treated with respectThey want to be treated with respect
• Customers love to be validatedCustomers love to be validated
• They want to feel they are importantThey want to feel they are important
• They love to have you use their nameThey love to have you use their name
• They don’t want to waitThey don’t want to wait
• They want it fixed now!They want it fixed now!
• They want the respect they deserveThey want the respect they deserve

16. Putting your Customer ServicePutting your Customer Service
Policies in WritingPolicies in Writing
• It does not have to be elaborateIt does not have to be elaborate
• It could be as simple as:It could be as simple as:
– The Customer is Always Right!The Customer is Always Right!

17. Pete’s Customer Service PolicyPete’s Customer Service Policy
• Is the Customer is Always Right?Is the Customer is Always Right?
• The Customer may not always be right,The Customer may not always be right,
but they are always the Customer!but they are always the Customer!

18. The May Company (Hecht’s) PolicyThe May Company (Hecht’s) Policy
• We are committed to providing you withWe are committed to providing you with
exceptionally friendly service, quality,exceptionally friendly service, quality,
merchandise and value. We stand behindmerchandise and value. We stand behind
the products we sell and we want you tothe products we sell and we want you to
be satisfied.be satisfied.

19. Value Option’s PolicyValue Option’s Policy
• Our mission is to provide unsurpassedOur mission is to provide unsurpassed
customer service in the mental healthcustomer service in the mental health
industry both to our internal and externalindustry both to our internal and external
clients.clients.

20. Marshall Field’s PolicyMarshall Field’s Policy
““Give the lady what she wants!”Give the lady what she wants!”

21. Be Sure Every EmployeeBe Sure Every Employee
Knows Your PoliciesKnows Your Policies
• Hecht’s: My goal is to prove that I can beHecht’s: My goal is to prove that I can be
exceptionally friendly at ALL times, under ALLexceptionally friendly at ALL times, under ALL
circumstances:circumstances:
– I will smileI will smile
– I will greet customers promptlyI will greet customers promptly
– I will be helpfulI will be helpful
– I will use the customer’s name when possible and—I will use the customer’s name when possible and—
– I will ALWAYS say, “THANK YOU!”I will ALWAYS say, “THANK YOU!”
All new employees sign the above pledge which is thenAll new employees sign the above pledge which is then
posted in the employee loungeposted in the employee lounge

22. Policies (Cont)Policies (Cont)
• Customer Service is one of the mostCustomer Service is one of the most
important assets that a company has toimportant assets that a company has to
offer its customers.offer its customers.
• In these times of increasing competition inIn these times of increasing competition in
the market place, it is more crucial tothe market place, it is more crucial to
provide the kind of service that sets oneprovide the kind of service that sets one
company apart from another.company apart from another.

23. Establish Support SystemsEstablish Support Systems
• Its often not enough to say, we will giveIts often not enough to say, we will give
superior customer service.superior customer service.
• That’s a good start, but—That’s a good start, but—
• Now think more about what makes yourNow think more about what makes your
service distinct, then develop the internalservice distinct, then develop the internal
infrastructure that is necessary to maintaininfrastructure that is necessary to maintain
that distinction.that distinction.

24. Support Systems (Cont.)Support Systems (Cont.)
• Walmart: “How can I help you?”Walmart: “How can I help you?”
• McDonald’s:McDonald’s: “Welcome to McDonald’s,“Welcome to McDonald’s,
may I take your order?”may I take your order?”
• Federal Express: “When it absolutelyFederal Express: “When it absolutely
positively has to be there overnight!”positively has to be there overnight!”

25. Develop Measurements of SuperbDevelop Measurements of Superb
Customer ServiceCustomer Service
• Encourage Customer CommentsEncourage Customer Comments
• Monitor Service Rep PerformanceMonitor Service Rep Performance
• Measure Customer Right TouchMeasure Customer Right Touch
• Measure Customer One TouchMeasure Customer One Touch
• Measure % of problems resolved in lessMeasure % of problems resolved in less
than 2 hoursthan 2 hours
• Customer SurveysCustomer Surveys
– Note: Don’t Survey the customer too muchNote: Don’t Survey the customer too much

26. Reward Employees Who Practice itReward Employees Who Practice it
ConsistentlyConsistently
• Bonus PlansBonus Plans
• Internal RecognitionInternal Recognition
• Customer Service StarsCustomer Service Stars
• Recognize Cross Functional/TeamworkRecognize Cross Functional/Teamwork
• Celebrate National Customer ServiceCelebrate National Customer Service
Week (2Week (2ndnd
week in October)week in October)

27. Terminate Bad Customer ServiceTerminate Bad Customer Service
PerformersPerformers
• Don’t just “talk the talk”Don’t just “talk the talk”
• Set clear expectationsSet clear expectations
• Every employee should know what isEvery employee should know what is
expected of them and what is notexpected of them and what is not
• Develop an “If you can’t handle the heat,Develop an “If you can’t handle the heat,
get out of the kitchen” expectationget out of the kitchen” expectation

28. Be certain your passion runsBe certain your passion runs
rampantrampant
• Service is the lifeblood of any organizationService is the lifeblood of any organization
• Everything flows from it and is nourishedEverything flows from it and is nourished
by itby it
• It may be difficult to create or change anIt may be difficult to create or change an
existing corporate culture. It must startexisting corporate culture. It must start
from the top, and it often takes time.from the top, and it often takes time.

29. Be certain your passion runsBe certain your passion runs
rampantrampant
• Customer ServiceCustomer Service
– It’s not a departmentIt’s not a department
– It’s an attitude:It’s an attitude:
• Ford:Ford: “Where Quality is job 1”“Where Quality is job 1”
• Put responsible customer service leadersPut responsible customer service leaders
into positions of leadershipinto positions of leadership

30. The Acid Test of Customer ServiceThe Acid Test of Customer Service
LeadershipLeadership
• Is the person committed to top notch customerIs the person committed to top notch customer
service?service?
• Does this person reward and recognize goodDoes this person reward and recognize good
performance?performance?
• Does this person listen?Does this person listen?
• Will this person be open to constructiveWill this person be open to constructive
criticism?criticism?
• Is this person a mentor?Is this person a mentor?
• Do they posses, the “Voice of Experience?”Do they posses, the “Voice of Experience?”

31. Be Genuinely CommittedBe Genuinely Committed
• Be genuinely committed to providing moreBe genuinely committed to providing more
customer service excellence than anyonecustomer service excellence than anyone
else in your industry.else in your industry.
• This commitment must be so powerful thatThis commitment must be so powerful that
every one of your customers can sense it.every one of your customers can sense it.

32. Be Genuinely CommittedBe Genuinely Committed
• Share information with people on the frontShare information with people on the front
lineslines
• Meet with your employees on a regularMeet with your employees on a regular
basis to discuss improving servicebasis to discuss improving service
• Solicit ideas from employeesSolicit ideas from employees
– After all:After all: They are the ones who deal withThey are the ones who deal with
the customers most oftenthe customers most often

33. Learn To Be Proactive andLearn To Be Proactive and
ReactiveReactive
• Learn to anticipate the clients needsLearn to anticipate the clients needs
• Act from the knowledge that whatAct from the knowledge that what
customers really want is to be validatedcustomers really want is to be validated
• They love being treated as individualsThey love being treated as individuals
• Never let your customers forget youNever let your customers forget you
• Set clear expectationsSet clear expectations
• Reset inappropriate expectationsReset inappropriate expectations

34. Let Customers Know what you areLet Customers Know what you are
doing for themdoing for them
• Write old customers personalWrite old customers personal
(handwritten) notes frequently(handwritten) notes frequently
• Keep it personalKeep it personal
• Remember special occasionsRemember special occasions
• Pass on information/newsletters, etc.Pass on information/newsletters, etc.
• Consider follow up calls as businessConsider follow up calls as business
development opportunitiesdevelopment opportunities

35. Principles that will make yourPrinciples that will make your
customer Happycustomer Happy
• FriendlinessFriendliness
– Using open gesturesUsing open gestures
– Smile (Even when your on the phone)Smile (Even when your on the phone)
• Validation and acknowledgmentValidation and acknowledgment
– Eye contactEye contact
– hold and call back techniqueshold and call back techniques
– Be sensitive to their wait timesBe sensitive to their wait times
• Choosing your behaviorChoosing your behavior
– Behavior breeds behaviorBehavior breeds behavior
– Behavior is not something you’re born with – It’s aBehavior is not something you’re born with – It’s a
learned responselearned response

36. What Customers want to hearWhat Customers want to hear
• I don’t know, but I’ll find out …I don’t know, but I’ll find out …
• I will take responsibility …I will take responsibility …
• I will keep you updated …I will keep you updated …
• I appreciate your business!I appreciate your business!

37. Few Customers ComplainFew Customers Complain
Studies show that the vast majority ofStudies show that the vast majority of
unsatisfied customers will never comeunsatisfied customers will never come
right out and tell you they are unsatisfied.right out and tell you they are unsatisfied.
They simply leave quietly, later tellingThey simply leave quietly, later telling
everyone they know not to do businesseveryone they know not to do business
with youwith you

38. When Customers Do ComplainWhen Customers Do Complain
Think of it as a golden opportunity toThink of it as a golden opportunity to
change that customer’s mind and retainchange that customer’s mind and retain
his or her businesshis or her business

39. Handling DissatisfiedHandling Dissatisfied
CustomersCustomers
• Let customers vent their feelingsLet customers vent their feelings
• Encourage them to get their frustrationsEncourage them to get their frustrations
out in the openout in the open
• Never argueNever argue
• Never tell a customer “You don’t have aNever tell a customer “You don’t have a
problem”problem”
– Them’s fighting words!Them’s fighting words!

40. Handling DissatisfiedHandling Dissatisfied
CustomersCustomers
• Share your point of view as politely as youShare your point of view as politely as you
cancan
• Take responsibility for the problemTake responsibility for the problem
• Don’t make excusesDon’t make excuses
– If an employee was sick or a supplier let youIf an employee was sick or a supplier let you
down, that’s NOT the customer’s problemdown, that’s NOT the customer’s problem
– It’s Yours!It’s Yours!

41. Handling DissatisfiedHandling Dissatisfied
CustomersCustomers
• Immediately take action to remedy the situation.Immediately take action to remedy the situation.
Promising a solution and then delaying it, onlyPromising a solution and then delaying it, only
makes matters worse.makes matters worse.
• Empower your front-line employees to be flexibleEmpower your front-line employees to be flexible
in resolving complaints.in resolving complaints.
• Give employees some leeway in deciding whenGive employees some leeway in deciding when
to bend the rules.to bend the rules.
– If you don’t feel comfortable doing this – make sureIf you don’t feel comfortable doing this – make sure
they have your or another manager handle thethey have your or another manager handle the
situation.situation.

42. Handling Irate CustomersHandling Irate Customers
• Focus on the situation, issue or behavior,Focus on the situation, issue or behavior,
not the personnot the person
• Maintain a constructive relationshipMaintain a constructive relationship
• Take the initiative to make things betterTake the initiative to make things better
• Maintain self confidenceMaintain self confidence
• Respect the customer—even when theyRespect the customer—even when they
don’t respect you!don’t respect you!

43. Follow up With all DissatisfiedFollow up With all Dissatisfied
CustomersCustomers
Was it delivered on time?Was it delivered on time?
• Was it just what you ordered?Was it just what you ordered?
• Was the job will be complete?Was the job will be complete?
• Encourage any and all customer feedbackEncourage any and all customer feedback