What Customers Really Want
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The cost of acquiring a new customer is on average five times greater than the cost of retaining an existing customer. In spite of that statistic, most organizations spend more effort on acquiring new customers than on investing in the maintenance of current ones. This is both foolish and poor business. Retention equates to lower acquisition costs, greater word-of-mouth referrals, more stable and predictable customer interactions and generally improved organizational morale. Join us for an hour of learning and insight into the mind of the customer and what he or she really wants. In order to be effective, “extraordinary” customer service must be translated into every behavior and action that all employees understand. These “standards of excellence” are the minimum level of acceptable performance from any member or process at any time. https://www.hrdqu.com/webinars/what-customers-really-want/
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What Customers Really Want
- 1. © 2008 HRDQ 1
- 2. Presented by Deb TopkaPresented by Deb Topka
- 3. Course Objectives Explore the concepts and benefits of extraordinary customer service. Set extraordinary customer service standards. Identify ways of building customer rapport. Be an influential communicator. Implement strategies to stay cool and avoid burnout. 3
- 4. Defining Extraordinary Service Extraordinary: Beyond what is usual, ordinary, or regular Extraordinary service: Going beyond what is expected, “out-of-this-world” helpfulness 4
- 5. Who Is Your Customer? In short, we need to think of everyone as our customers. 5
- 6. Moments of Truth A moment of truth is any time a customer comes in contact with your organization and thereby forms an impression of it. 6
- 7. Lifetime Value of a Customer The total revenue they will bring to your organization across their entire relationship with you. 7
- 8. Cost of Poor Service Acquiring a new customer: 5 times the cost of retaining a customer 8
- 9. Understanding Strategic Objectives It is essential for all aspects of an organization to be aligned to the same strategic vision 9
- 10. Transforming Employees into Ambassadors Employees who view themselves as “owners” of a company will tend to be ambassadors and not just cogs in a wheel. 10
- 11. How the Customer Defines Service Excellence ? ? ? ? 11
- 12. How the Customer Defines Service Excellence Reliability Responsiveness Speed Competence Value Friendliness 12
- 13. Seven Steps to Resolving Customer Complaints 13 Listen actively Listen for feelings, then facts Paraphrase and record Determine expectations Provide a solution Confirm the resolution Follow up
- 14. Treat the Customer as a Unique Person View your organization from your customer’s perspective. Individualize and personalize the service you deliver. 14
- 15. Active Listening Eliminate distractions. Suspend judgment. Don’t interrupt. Tolerate silence. Take notes. Ask questions. Paraphrase to confirm understanding. 15
- 16. “Mirroring” Match the customer’s rate of speech. Be aware of an “interruption gap.” Mirror the “loudness” of a person’s energy and body gestures—up to a point. 16
- 17. Controlling the Call Take ownership of the call. Avoid having the customer repeat information. Restate the problem back to the customer. Make your word “golden.” 17
- 18. Friend Act as host. Make customer feel comfortable. Do not make promises that cannot be kept. Use initially or when customer has experienced poor service. 18
- 19. Detective Solve problems. Be persistent. Use when the customer has a problem. 19
- 20. Teacher Gently educate. Never be condescending. Use when customer is unsure or misguided in what they need. 20
- 22. Saying “No” Positively 22 Negative Phrase Positive Phrase No. I can’t. We won’t. That’s not my job. It’s not my fault. Calm down. I don’t know. The computer lost your information.
- 23. Customer-Focused Explanations State your purpose. Build your case. Be constructive. Be realistic. 23
- 24. Five Steps to Remaining Calm 1. Breathe. 2. Control adrenal responses. 3. Change your self-talk. 4. Put the situation in context. 5. Move on from an angry customer. 24
- 25. Positive Self-Talk 25 “This customer must be having a bad day.” “I can fix this problem.” “This is only one customer. ” “This is not about me.”
- 26. How to Calm an Angry Customer 1. Lock in. 2. Let them vent. 3. Empathize. 4. Match energy. 5. Restate emotion and content. 6. Problem solve. 7. Bail out. 26
- 27. Avoiding Burnout Avoid/relieve stress. Maintain a positive attitude. 27
- 28. Principles of Exceptional Customer Service Customers think of themselves as people who need your help. Customers talk to YOU, not the “company.” You must CARE about your customers. Don’t just listen—learn. 28
- 29. Principles of Exceptional Customer Service (cont.) Don’t just solve problems—create opportunities. Great service starts with a good attitude. There’s only one judge of great service— THE CUSTOMER. 29
- 30. Questions? 30
- 31. Thank You for Participating! Shop the store: LIMITED-TIME OFFER Save 50% LIMITED-TIME OFFER Save 50% Enter WebinarWCW at checkout. Offer expires 6/3. Includes: Downloadable files for the Instructor Guide Participant Guide PowerPoint Presentation What Customers Really Want
Editor's Notes
- Moderator does introductions
- Extraordinary service = Out-of-this-world helpfulness, usefulness, value, teamwork, or friendliness. Going beyond what is expected. When you provide this type of service customer responses may include: Tells others Pays more Overlooks imperfections in the product Promotes you/your product Transition: In order to provide extraordinary service you need to know who your customer is….
- You have many types of customers—not just your obvious direct, external customers. You also have internal customers such as coworkers you support, and indirect customers who are not direct customers, but who influence your customers. Recognizing your various customers is essential to serving them well. Transition: So how do you know you provide extraordinary customer service? Well you need to examine performance at the moment of truth….
- A moment of truth is anytime a customer comes in contact with your organization and thereby forms an impression of it. Every contact makes an impression and the last interaction is often a lasting impression. I’m sure we can all think of a time we were dissatisfied with service and it left a bad taste in our mouths. Years of good service can be forgotten in one moment of truth gone wrong. Transition: So why is each contact so important?
- The lifetime value of a customer is the total revenue they will bring to your organization across their entire relationship with you. This changes the way we view single interactions. These are not stand-alone events, but part of an ongoing marketing strategy. Every interaction moves the relationship forward or can send it backward.
- The cost of acquiring a new customer is on average five times greater than the cost of retaining an existing customer. Yet most organizations spend more effort on acquiring new customers than on investing in the maintenance stream for retention. This is both foolish and poor business. Retention equates to lower acquisition costs, greater word-of-mouth referrals, more stable and predictable customer interactions, and generally improved organizational morale. In general, customers who are dissatisfied tell twice as many people about their dissatisfaction as those who are satisfied. And marketing research consistently reveals that people are more affected by these negative reports than by positive testimonies. Transition: Keeping your current customers happy is critical. To help with this effort it is important to set standards for customer service.
- So how do we set standards for extraordinary customer service? First, everyone needs to understand the importance of customer service to the organization and how it helps the company achieve its objectives Employees need to understand their role in the success of the company as a whole. This understanding gives employees a sense of ownership in the company and its success. Transition: This sense of ownership helps them move from being employees to being ambassadors.
- Employees who view themselves as “owners” of a company will tend to be ambassadors and not just pawns. Employees who interact with external or internal customers need to understand their empowerment boundaries. They should fully comprehend the level of authority, spending limits, and scope of decision-making they have to satisfy a customer. Individuals, teams, and management need to work together to clarify these boundaries of authority before customer transactions. Transition: Ambassadors of the company can help define the next step in standard setting, understanding how the customer defines service excellence.
- So let’s think about how a customer might define service excellence. Use your chat box (right term) to type some words you think customers may use to describe service excellence (Facilitator read responses and comment appropriately)
- Here are a few of the terms we thought customers might use to define service excellence. (point out similarities to answers provided by attendees) These are very helpful but they need to be translated into behaviors and actions that all employees can understand and act on. For example, “Friendliness” might mean smiling and using the customer’s name at least twice during the interaction. Transition: After we have set standards for excellence we need to get to the business at hand….resolving our customer’s problems or complaints.
- Here we provide a seven step process for doing that. (review steps – don’t read) Transition: A process is helpful but how do we really connect with customers and create rapport?
- Establishing rapport requires building a relationship, however brief, with the customer. It means making a connection and treating each person as the individual he or she is. These tips will help you build rapport quickly: Greet the customer, and use his or her name. Introduce yourself. State your positive intent to help or serve. Keep tuned in to the conversation. Acknowledge what the customer says. Avoid being interrupted. Listen carefully. Anticipate the customer’s needs. Give the customer choices whenever possible. Be sincere and genuine throughout the interaction. Thank the customer for the opportunity to do business. Transition: When treating the customer as a unique person, we mentioned listening carefully.
- Active listening is a critical skill to develop when working with customers. We have all had times when we could tell that our spouse, child, colleague, or friend wasn’t really listening to what we are saying. That hurt or annoyed feeling is the same feeling our customer will get if we don’t listen actively to what they are saying. (review bullets – don’t read) Transition: Being a good listener isn’t the only way to build rapport.
- The principle behind matching styles, or mirroring, is that people like to do business with people who are like themselves. Don’t parrot or copy them but try to match their style so they feel comfortable interacting with you. INTERUPTION GAP???? Transition: While these techniques help you build rapport with the customer it is also your role to be an influential communicator. Influential communicators have the ability to get customers to see things differently while making them feel listened to.
- In order to influence and educate the customer you must control the call while creating an opportunity for two way feedback. Take ownership of the call Exhibit credibility and confidence Assure the customer you can help Avoid having the customer repeat information Take notes Ask questions Verify pertinent information Paraphrase and restate to confirm understanding Restate the problem back to the customer Avoid blaming others Focus on recapping: confirm and clarify Control “looping” Make your word “golden” (only make promises you can keep) Transition: During your interaction with the customer you may have to play different roles.
- Often a customer is just seeking a friendly person to help them work out their issue. (review bullets) Elaborate on needs and wants Draw out feelings Reassure customer Transition: Sometimes they need someone to figure out what is going wrong.
- This situation can have you playing the role of the detective. Obtain specific facts Guide conversation to particular focus Clear up generalizations Transition: Sometimes the problem is a lack of information or knowledge on the part of the customer.
- When the customer needs further information, you may find yourself in the role of the teacher. Interpret what you heard the customer say Clarify or expand on customer’s comments Suggest course of action Paraphrase and restate to confirm understanding Transition: No matter which role you may play, a key skill when interacting with customers is knowing when to listen and when to talk.
- Influential communication is the result of balancing inquiry and advocacy. Inquiry Listening to fully understand the other person’s point of view and assumptions Asking questions to clarify Acknowledging the other person’s thoughts and feelings Reflecting on other person’s comments Advocacy Openly sharing your assumptions, data, and conclusions Making your own reasoning explicit Calling for others to explore your views Building on comments made by others In general, you’ll use your inquiry skills first, and then move to an advocacy role but you move back and forth as the interaction progresses. Transition: Unfortunately there are times when we can’t give a customer what they want.
- Nothing bugs a customer more than being told “no.” You’ll quickly lose your influence with a customer if you’re constantly negative. So let’s think about how ways to phrase “No” more positively. Use your chat box (right term) to type some words or phrases that might work better in the examples on the slide. (Facilitator read responses and comment appropriately) Examples of better responses No.Here’s what I can do. I can’t.I can… We won’t.We can… That’s not my job.(Joe) can help you. It’s not my fault.Let’s fix this problem. Calm down.I understand your frustration. I don’t know.Let me find out. The computer lost your info.I apologize; I need to ask for your information again. Transition: Another irritant to customers is being told, “That’s our policy.”
- One of the trickiest parts of the job can be providing explanations—especially when they aren’t in the customer’s favor. Follow these guidelines to minimize the customer’s frustration. State your purpose: Be clear about the issue and the policy/procedure related to it. Build your case: Your own experience with an issue, plus solid facts, are the best arguments for supporting your position. Be constructive: Concentrate on explaining how the policy is a positive solution to a problem. Instead of criticizing, help your customer understand and become aware of the merits of your position, and explain why it is the best approach. Be realistic: Understand that compromise is often part of the process of building long-term customer relationships. Transition: Sometimes our customer service interactions aren’t pleasant. Customers can get hot under the collar but we need to stay cool.
- So how do we do that? Physicians indicate that breathing is good for one’s health. When confronted, attacked, or feeling under pressure, most people catch their breath. At best, they breathe shallowly, which alters the pH of the blood and negatively affects the powers of reason. The next time you feel confronted by the customer, remember the key to breathing in is to breathe out first. So, breathe out. (This paragraph covers point one and two. The next slide is about self talk. Skim the 5 bullets.) Transition: Let’s talk a little more about self talk.
- Psychologists tell us that our internal dialogue runs 1,300 words per minute, and that most people engage in negative self-talk. When confronted with an angry customer try to keep a positive view point. You’ll stay cool if you stay positive. Our 4th step to remaining calm, Put the situation in context, may help. We need to remind ourselves of what the customer may be experiencing. Try to imagine the situation from the customer’s point of view: They may be Anxious Hurried Afraid Transferred three times Double parked Tired from waiting Remember, don’t take it personally—take it professionally. Transition: An angry customer need not become a former customer.
- A skillful person can take the following steps to salvage a potentially disastrous encounter. 7 steps to cool down a hot customer: 1. Lock in – If the situation allows, engage the customer directly, giving them your full attention and solid eye contact. 2. Let them vent - If you interrupt, they will begin over and over and over … 3. Empathize - They need to know that you “feel their pain.” 4. Match energy - They need to see and hear that you understand their level of frustration. 5. Restate emotion and content - Restate their issues—a summarized, sanitized version. 6. Problem solve Agree on the problem. Separate needs and wants. Brainstorm options. Agree on the solution. Follow up on commitments. 7. Bail out - If these steps don’t cool your hot customer, or you feel yourself losing your cool, hand them off to a coworker or a manager or delay with a brief timeout. Our 5th step in staying calm is to Move on from an angry customer. After an encounter with an angry customer, take a moment to “reset.” You don’t want to enter your next customer interaction carrying tension from your last one. Try these techniques: Vent briefly with a buddy Don’t devalue the customer Don’t let your frustration spread to your buddy Clear your thoughts Focus on successes
- In a customer service environment, a variety of things can demotivate even the best employee. It is essential to consciously practice simple techniques to avoid burnout and to organize yourself in a way that bolsters morale. Some examples include: 1. Take hourly stretch breaks. 2. Take some calls while standing. 3. Use a buddy system for difficult calls. 4. Listen to music. 5. Practice positive self-talk. 6. Bring your sense of humor to work. 7. Take a brief stretch break after a difficult call. 8. Change the direction you face throughout the day. 9. Vent with a buddy after a difficult call. 10. Set team goals, and celebrate when they are reached. 11. Post action steps for solving different types of situations.
- In summary, today we’ve talked about some of the principles of exceptional customer service. (Summarize but don’t read the bullets – bullets continue on next slide)
- (Summarize bullets – don’t read them.) Transition: I hope you’ve learned a lot during our course today. So what questions do you have?