Service Innovation by Arnold Beekes

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CUSTOMER SERVICE: nuisance or added value?

Last month I did fly from Paris to Mexico City, where I was supposed to catch the next flight to Puerto Vallarta. Yes. I needed some sun and warmth…. While we were already boarded in Paris and waiting to take off, the message came that there was a delay due to maintenance issues. Well, that is not a problem in itself, as I rather wait than fly with troubles. The delay lasted for more than 1,5 hours. So, when we arrived at Mexico City I did miss my connection to Puerto Vallarta. Many more people missed their connection. However, nobody told us what to do next. Finally we did find out that we had to go to the customer service office of this particular airline. It was a challenge to find it, as it was located next to the parking garage and there were no signs at all. After searching for a while, we did find the office, or rather the closed door to the office. There was a small sign on it which mentioned that they were only open between 12 and 2 pm. And the current time was 11 pm……! The door was locked so we pushed the button on the intercom and waited. We were surprised that after a while the door opened slightly and a woman asked what she could do for us. Once she received our papers, she went back in, closed the door and we (3 men) were supposed to wait on the corridor. There were no chairs, nothing, just a dark corridor. After more than 30 minutes the door opened again and the lady returned. She had booked us all in a hotel and we were booked on the connecting flights for the next day. Well, that was fine, because we were rather tired anyway. The next day when I wanted to check in for my flight, they said there was no reservation in my name……… “ I am sorry Sir, you are not booked on this flight”. Then I went straight into the office of the airline for the connecting flight. That was new to them, customers are not allowed in here. But they understood that I was rather determined to get this solved, so finally they helped me out. What can be learned from this? In my opinion customer service is really crucial to the way in which I perceive the quality of a company. Things can go wrong, we are all human after all. And I rather have the airplane fixed than a crash. Then it would be appropriate to have an open office, which can be easily found and accessed. Maybe even with a waiting area and friendly people who assure me that they will take care of my problems. If they do that in a professional and attentive way, I will even become enthusiastic about their service and tell it to others. Now the opposite is the case. When I arrived at my home after my holiday, I received a letter from the airline. They apologized for the delay (fine) and credited my frequent flyer card with 2000 miles…… A nice gesture, but I had not asked for that and I don’t care at all about the number of points/miles on my card. So, why not give me a choice between several options? I am wondering what they would do if I didn’t have a frequent flyer card. What even anointed me more was that the letter was not signed and there was no name of the representative mentioned. It clearly was an automatic process which distributed the letter, rather than a personal approach. Customer Service can really add a lot of value to the relationship with the customer, even more than from the product or service itself. This means that it should not be treated as a nuisance, a necessary evil in itself!

SERVICE INNOVATION

Fuelled by the Frontline

www.theproperway.com

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For the environment………

In most hotel rooms you will find a card in the bathroom, which says:

‘Together we can contribute to improving the environment. We should avoid unnecessary use of water or detergent.

If you leave your towel in the bathtub, we will replace it with another one; if you think you can use it again, please leave it on the towel rail.’

 

Obviously this sounds good and it triggers me to consciously support the environment. And it does it a positive way. There is no threat in it.

So, it is easy for me to comply and to hang my towel on the rack after usage.

 

But guess what happens when I return and my room is cleaned? A new one replaces the towel. Well, I thought that must be a mistake. But the next day, the same happens, my towel is replaced again!

 

What does this mean? Actually two things, which are crucial for implementing any new service.

1. The people (in this case: the maids who clean the room) who have to deliver the service have to be instructed on the new policy/service. They have to know what has changed, why it has changed and what new behaviour is expected from them. And this has to be checked regularly, until the new behaviour has become a habit. Research indicated that it takes 21 days to form a new habit.
2. Management has to measure the impact and result of their new procedure.  If they measure the daily amount of towels, which go to the laundry, they should notice any difference. If there is on average no change, they should investigate what the reason is. If they do this they can notice that the only real change has been to put the card in the room. The rest has not changed.

 

This means that it is crucial to bridge the gap between management and the frontline by clear communication and training. And putting in place the right metrics to monitor the effect of the new policy/service.  

 

SERVICE INNOVATION

Fuelled by the Frontline

www.theproperway.com

 

 

 

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CUSTOMER SERVICE: DIFFERENTIATOR OR NUISSANCE?

Last week my car had to have maintenance. I went to a general service provider, so not a brand dealer. They are located close to where I live, the pricing is excellent and the quality is very good.But the best reason to be their customer is the service they provide.

They are open till well after 5 pm and onSaturdays, which is exceptional. They discuss with me what the best and cheapest solution is to certain problems. When they are working on my car, Iget a rental car for free! And when I returned with a problem, they immediately helped me out, without any waiting time. There are many customers who like them very well, as it is rather busy at this Saturday morning.

The owner explains to me that he get new customers from dealers who show them their invoices. He is really surprised by the hours,which are charged, as well as with the rates. These dealers even tell him to charge more. But he says that he only charges for the real hours worked and for a reasonable price. Wow, that is an honest businessman who attracts throughthis ‘simple’ service a lot of customers!

 

A friend told me quite another story. He had a man over at his house to do the yearly check up of his stove. The guy worked for four hours (!), but couldn’t get the heating up and running again.It was after 7.30 pm, the house was cold; dinner could not be cooked, because there was no gas. He decided to call his boss who had to come over and fix the problem. When the boss checked the installation it became clear that the repair guy had forgotten to turn on the gas again……..?! Then my friend asked to settle the bill, as he wasn’t prepared to pay for the lack of experience of the repair guy. It was clearly a huge mistake on their side. But the boss was not willing to discuss this and he said he would just send an invoice. It goes without saying that my friend was not a happy customer.

 

This means that the way you treat your customers, your service and behaviour is a real differentiator. This customer service is most of the time even more important than the products, which you deliver.

PS 1. Please check out The ProPer Way for more information
PS 2. GROW YOUR PEOPLE, GROW YOUR BUSINESS!

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INNOVATION: WHERE TO START?

The current state of the economy is ideal for making a fresh start. There is so much changing inside and outside of the organization that you need to formulate an adequate response. It was SusanJeffers who said: “if you do what you did, you get what you got”. This is true ate the personal level as well as at the organizational level.

 

So, assuming that you want better results,you have to do something differently. And all doing starts with your thinking.This means that ‘fresh’ thinking is required. This applies to all leaders,managers and employees. To make a start with fresh thinking, you can gather adiverse group of people, people from different age groups, race, gender,experience, functions etc. Even better is to reach out for people outside of the company’s boundaries. For instance if you want to cultivate growth, you can involve a farmer or a biologist. If you want to excel at your service delivery,you have to involve your (potential) customers.

 

Going to seminars outside of the scope thatyou are used to can give you new ideas (= thoughts), The same applies to reading books about different subjects. Crucial is to be open and suspend yourj udgement. Remember what Einstein said that you have to solve a problem at adifferent level than where it originated. This is not a one off activity; you have to create a habit of ‘fresh’ thinking.

 

Once your thinking is stretched you can andif you really want to excel, you must have a thorough look at your culture. The culture represents basically the shared beliefs in your organization. Beliefs are the dominant thoughts, which you held.

 

There are different elements of yourculture, which you can re-examine:

 

1. Purpose: To make as much profit as possible.
2. Management Style: Managers  give commands to employees on what, when and how to accomplish goals.Managers control employees
3. Customers: Product-out push. Transaction focussed
4. Rewards: People are only interested in their salary
5. Metrics: Mainly financial; profit and shareholder value
6. Workplace: The standard workplace is defined by managers
7. Working hours: 9-5, 40 hours per week, on-site
8. Training: There is limited room for professional development
9. Information: Info is distributed according to your position

 

So, maybe you can come up with a purpose,which is truly meaningful for all the stakeholders. Or you can measure the‘triple’ bottom-line. Or you can share info as freely as possible.

There are so many possibilities and thegains can and will be huge 

But……… you have to start INSIDE first. Start with allowing and stimulating different thoughts from yourself as well asform all people involved.

PS 1. Please check out The ProPer Way for more information
PS 2. GROW YOUR PEOPLE, GROW YOUR BUSINESS!

06:56 am | 1 recommendation | 3 comments

RETAIL AND SERVICE

Last week I had two quite distinct experiences with the customer service offered in retail stores.

 

In the first store , I was looking at the video cameras, because it would be nice to have a videoblog as well, isn’t it?I was looking whether they had the Flip Video which was featured in the last FC issue. I was the only person in the store, but he didn’t pay any attention, as he started to vacuum clean the entrance. So, I decided not to wait and ask for help. When I told him that I was looking for the Flip Video, he asked me whether I knew the part number, so he could check it in the computer….?! The computer did not know about this product. Then I checked the other cameras. For which he had to open the special display. When he handed me one of the camera sI tried to use it, but it didn’t work. He said that is because the battery is not inserted. As he made no effort to correct this, I stopped my search……..

 

I have nothing personal against this young man. There is a lot to improve for his boss though. It looks like that all the management effort is geared towards getting the  right products with the right prices and discounts on the shelf. However, it is key to understand that the consumer needs help in buying the electronic articles. Most articles are quite complicated, so it helps me in my buying process when someone shows me how they work. It is like having a test drive. Just looking doesn’t give me the right experience. This means that the young man who helped me needs training. Training is needed on how to socialize with the consumer and on how to showcase the usage of the products. This small investment in time will have a great pay off.

 

The opposite of this experience was when I visited a new supermarket, which just opened. I was looking for certain products but couldn’t find them. So I asked one of the girls where I could find it. It surprised me that she walked with me to the right place and showed me the article. That was fine. I went ahead with my shopping and I couldn’t find another article, so I asked again. And again she walked with me to the right aisle and shelf. I asked her whether that was not a nuisance, as many customers would be asking her this. She replied that it was very understandable that this happened and that after some time it would no longer be needed, as the customer would know their way around. Another pleasant surprise was when I checked out.Because I had bought for a certain amount I did receive a free box of apples. I liked the apples, but it is hard to take it with you on a bike. So, I asked whether she had another idea. As a response she put the apples for me in a plastic bag, so they would be easier to carry. This store clearly has understood that you have to train your people on the right behaviour. And that pays off!

PS 1. Please check out The ProPer Way for more information
PS 2. GROW YOUR PEOPLE, GROW YOUR BUSINESS!

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SAVING COSTS OR INCREASING ROI

The financial crisis is taking all the headlines. Not only in the news, but also ‘the men in the street’ is talking about it. This is quite understandable; given the impact it has on every individual. Whether you lost your job, lost your money or are worried about the safety of your savings.

 

However, the more you talk about it, the more energy you attach to it. And things, which you give energy, will grow.This is one of the reasons why a recession will grow and continue.

 

Also the people are feeling worried and uncertain. It is better to focus your energy on positive outcomes. That will make you feel fulfilled and enthusiastic. Instead of focussing on cost cutting or lay offs it is much better to focus on what you do want to achieve. What are goals, which get you, and your employees fired up?

 

As a leader you are not alone in this task.If you engage your employees you will surprised about their ideas and commitment. That starts by being open (and sometimes even being vulnerable)about the current challenges and asking them what their ideas and suggestionsare to claim or regain your position in the market.

 

Once you have a process in place where you seriously listen to their input and take action on the most promising ones, the employees will be more than happy to support you. In fact, this is what they have been waiting for.

 

Globally, only 20 percent % of the employees feel that their strengths are in play every day.

 

This means that 80 % of the employees are not doing what they actually love to do. So, the costs are tremendous both for your organization and for the employees. Organizations pay 100 % in salaries,but they are not fully using the human potential. And the employees feel undervalued, stressed and neglected.

 

However, more than 90 % of the employees think it is important to be passionate about their work. And in today’scompetitive environment your organization really needs a committed,enthusiastic and productive workforce.

 

This means that focussing on the engagementof your employees is by far the most profitable action you can take under these circumstances!

PS 1. Please check out The ProPer Way for more information
PS 2. GROW YOUR PEOPLE, GROW YOUR BUSINESS!

 

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BOTTOM UP CHANGE

 All the news media are having a very busy time. The election for the next world leader, the credit crunch and at a distance the climate crunch. There is so much happening and it is very unclear what the outcome will be.This creates uncertainty with in companies, customers and the general public. Will I keep my job? What is happening to my savings? Will my bank survive? For how long will this last? Is it wise to invest now?Banks, which exist today, might be gone tomorrow or be tuned into ownership by the government.It is impossible for leaders to have all the answers. It is the collective genius of all the employees, which need to be mobilized. This situation has threats, but also provides a lot of opportunities. If you use all the ‘eyes and ears’ of your employees you will clearly find a stimulating direction. It is even more powerful to create a new movement from the bottom up. The Designers Accord, as mentioned in the recent FC article, is an excellent example for this. This makes the job of a leader easier as well. They just have to make sure that an open attitude towards collaboration within and outside of the organisation is stimulated.What is needed is innovation, which has a pull from the people involved. This works much better than pushing it from the top.
PS 1. Please check out The ProPer Way for more information
PS 2. GROW YOUR PEOPLE, GROW YOUR BUSINESS!

05:18 am | 1 recommendation | Be the first to comment

OUTGREENING THE STATUS QUO

 

I just finished reading the new book from Thomas Friedman, Hot, Flat and Crowded. It is a real eye opener and not for those with a weak heart. After the credit crunch, he says we are very close to the climate crunch.

 

He makes it clear that the green revolution we need will be the biggest innovation project in history. It will change everything, from what you put into your car to what you see on your electric bill.

 

This is not going to happen overnight. He sees an important role for governments to facilitate all this. But that will be rather difficult, as most governments tend to favour the interest of the powerful oil and gas lobby. So, this comes back to the willingness of governments, of companies and of individuals to change. And most would like to see that others change first………

 

This is especially true in this area of energy consumption. People will only buy these new green products and services if they are better and or cheaper than what they have now.

 

Every major change comes from individuals who share a common vision. And when more people participate the ripple effect will do the rest. It was Gandhi who said “you have to be the change you want to see”. This means that the focus of new services should be to give the customers and consumers the motivation to change their behaviour. Once groups of individuals have changed their own behaviour they will push the governments and companies to do the same.

 

This also requires a bigger effort from service companies to educate their customers. Until you understand the urgencyof the crisis, you will not act differently. This will be an extra challenge for marketing. The sharing of real information is crucial. And then the suppliers should also provide real green products and services. Why am I writing about ‘real’ products. Well it just came out that in Holland energy companies sold green electricity, but provided something else. This is killingfor the motivation of consumers.

 

This all means that educating the public,providers, suppliers and customers about the need to really change to green is a prerequisite for a real change.

PS 1. Please check out The ProPer Way for more information
PS 2. GROW YOUR PEOPLE, GROW YOUR BUSINESS!

03:35 am | 1 recommendation | Be the first to comment

THE KEY IS TRUST

 

 

 

In any service industry the product (i.e.the service) which gets delivered to the customer is the person who delivers the service. The quality of the service is perceived through the behaviour of the person who delivers. So, if you buy consulting services, the quality of the service is identical to the quality of the consultant. If you hire a projectmanager, it is the way in which he or she performs, which determines your perception of the service itself. The same is true for the maintenance engineer who comes and fixes the hardware problem in your pc or server.

 

This means that there is huge influence from the people who deliver services on the level of customer satisfaction.This means that it is crucial to make sure that your people are properly trained to perform the requested services, as well as that they are satisfied themselves. A satisfied employee will deliver much better services than an unsatisfied employee.

 

As a company you can put in a lot of money and effort in your marketing and branding, but it is even more important to make sure that your frontline is enthusiastic and motivated.

 

The way employees are treated and the example, which senior managers give, is a key indicator for the level of trustin any organization. If there is trust in the mission, vision, processes AND in the people, than your employees will act upon that trust. They will share that good energy with your customers.

 

So, have a look at the current state of the financial services industry. If the leaders are only involved in whether they can secure their own bonuses, how can you expect the individual bank employee to serve selflessly his or her customers? Trust will be earned by giving the good example.

PS 1. Please check out The ProPer Way for more informationPS 2. GROW YOUR PEOPLE, GROW YOUR BUSINESS!

03:53 am | 1 recommendation | Be the first to comment

WHO CARES ABOUT THE CUSTOMER?

 

 

 

Last week my friend from New York arrived in Amsterdam. The checking out lasted longer than other flights who arrived earlier. So I called her and asked what the problem was. It appeared that 2 containers of luggage were missing. Not just a couple of suitcases, but 2 whole containers! How is that possible? How can those be missed?

 

Okay, you have to accept the fact that it happened. Then she had to register her loss. Because there were so many people involved, she just got a blank form which was not filled out. Only a phonenumber was written on it. That was her only ‘proof’ of her missing luggage.They could not inform her when her luggage would be arriving, although there are 4 flights daily.

 

This is the most striking issue of customer service. It can happen that your luggage gets lost. But the key information thatyou need as a customer is when your luggage will be arriving after the incident. As a customer you need to plan for that. Do you have to buy a toothbrush only, or does it last longer and do you need to buy some fresh clothes etc.

 

The luggage arrived 3 days later! They called early in the morning and asked when they could deliver it. That was fine, but……. We had to stay at home in blocks of 4 hours. That was as narrow as they could plan. 4 Hours, that is half a day! Is it not possible to plan within 1 hour?!

 

So, the only innovation in the service they provide should be to inform the customer upfront when their missing luggage will be arriving. And then the delivery window should be much tighter. With all the money spend on IT and value chains, this should be really easy. And your customer will be very satisfied, even though they do miss their luggage. It is already a great relief if you know what you can expect.

 

It is really a clear case of inside out thinking from (most) airlines, that they have not yet fixed this. They don’t take the customer’s experience as the starting point of the service that they provide. It is not rock bottom science to innovate the service with the end in mind. And the end is when the customer will in fact receive his or her luggage.

 

 

 

PS 1. Please check out The ProPer Way for more informationPS 2. GROW YOUR PEOPLE, GROW YOUR BUSINESS!