Because there is no way in the world that I can know as much about your business as you do, many of my suggestions and ideas I present will be somewhat generic, which means it is up to YOU to take the ideas I present and figure out how to make them work in your company, in your specific market, with your customers, with your employees. If you will continually ask the three questions above every time I put up a slide, there is a good chance that you will uncover something that will help your business significantly.
Achieving Business Excellence Through… Delivering Consistently Superior Customer Service
A few good quotes…• “We are not in the coffee business serving people… we are in the people business serving coffee.” Howard Schultz, CEO – Starbucks• “We took our eye off the ball and it damn near put us out of business. We forgot that the customer pays ALL the bills. We are here to serve them, help them, support them. Not keeping that at the front of our minds almost cost us everything.” Lou Gerstner, CEO - IBM• “The very future of our company hinges on our ability to understand and serve our customers better than any other firm. It is all about customer service, the products are actually secondary.” Jeff Immelt, CEO – GE• “The only critic whose opinion counts, is the customer” – Mark Twain
The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…The level of highly satisfied and engaged EMPLOYEES in your business.
Fully Engaged Customers deliver a 23% premium over the average customer in terms of share of wallet, profitability, revenue, and relationship growth.Harvard Business Review: Manage Your Human Sigma 4
Customer satisfaction drives customer loyalty… and customer loyalty drives profitability Promoters 100% Zone of Affection 90 A 5% increase in loyalty 80 among your best 70 Zone of customers… 60 Indifference Loyalty 50 40 Can produce a profit 30 Zone of increase of 25% – 85% Defection 20Detractors Extremely Somewhat Slightly Very Dissatisfied Dissatisfied Dissatisfied Satisfied Satisfied Customer Satisfaction 5
When customers receive GREAT service… 73% 54% 43% 18% Will return to Will Bought a Upgraded or use the recommend second added to first company to friends and product or purchase. again. family. service. 5
Zappos Sales in 1998 = 0 Sales in 2008 = 1.2 Billion Looking back, a big reason we hit our goal early was that we decided to invest our time, money and resources into three key areas: customer service (which would build our brand and drive word-of- mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team). Even today, our core belief is that our Brand, our Culture and our Pipeline are the only competitive advantages we will have in the long run. Everything else can and will be copied.Tony Hsieh – CEO Zappos
Culture = Cash Highly satisfied and engaged employees can drive as much as a 189% increase in profitability!While actively disengaged employees could cost you as much as 22% of total revenues!!!
What do engaged employees look like? Page 61. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 1 - 10 6
HUGE data set… • 600,000 employees at 500 companies. • 6,800 senior executives. • 900 books and academic articles. • 30 CEOs of Fortune 500.From: Beyond Performance by Keller and Price
Nine Elements of Organizational HealthFrom: Beyond Performance by Keller and Price 6
Key attributes of winning cultures• High aspirations and a desire to win 1 - 10• Extreme customer focus• A “think like owners” attitude• Bias to action• Individuals who team• Passion and energyBain & Company 7
Fundamental Customer Expectations• Reliability: The ability to provide what was promised, on time, dependably and accurately. (Honesty)• Assurance: The knowledge and courtesy of employees, and their ability to convey trust and confidence. (Competence)• Empathy: The degree of caring and individual attention provided to customers. (Concern)• Responsiveness: The willingness to help customers and provide prompt service. (Attitude)• Tangibles: The physical facilities, equipment, and appearance of the personnel. (Professionalism) Read page 8
The Five Levels of Customer Service I don’t really care Why try harder Good enough is good enough That’s nice Holy #@%& – you guys are awesome!!!!! Workshop Page 9
2. Shared Customer Service Credo They establish a clear vision of what superior service is, communicate that vision to employees at all levels, and ensure that service quality is personally and positively important to everyone in the organization. 11
3. MOT: Process = Repeatable success• They create systems, processes and protocols to ensure that service delivery is flawless… without stifling the creativity and initiative of their employees. 14
4. Clear Standards + AccountabilityThey establish concrete standards ofservice quality and regularly measurethemselves against those standards,guarding against the “acceptable error”mindset by establishing as their goal100% customer satisfactionperformance. 15
5. Customer Focused Employees They hire the best people, train them carefully and extensively so they have the knowledge and skills to achieve the service standards, then empower them to work on behalf of the customers to build very high levels of TRUST 15
6. Reward and Celebrate Success…They recognize and reward serviceaccomplishments, sometimesindividually, sometimes as a groupeffort, in particular celebrating thesuccess of employees who go “onestep beyond” for their customers.Deal decisively with mediocrity 15
The Rule of 3 • Wow – breakthrough teams commit to a clear and specific standard of world-class performance. • No Surprises – all team members are accountable for openness and honest debate, and each knows what to expect from the others. • Cheer – team members support, recognize, appreciate and cheer each other and the group to victoryFrom: The Orange Revolution by Gostick and Elton 15
Understanding the Customer-driven Company: WS page 16 • Create a customer-focused Vision • Flood the organization with VOC • Become an expert on delivering superior customer service • Turn your employees into customer service champions • Destroy any barriers to superior service performance • Measure, measure, measure • Walk the talk 16
THANK YOU VERY Much!!!! If you have any questions at all please do not hesitate to send a note or call. My email address is: email@example.com My twitter address is: @awesomelysimpleAlso, you might find value in the ideas I share in my blog. You can sign up for it at: www.blog.johnspence.com Lastly, these slides and a BIGGER workbook have already been uploaded to: www.slideshare.net/johnspence