Most businesses spend more time, money and energy trying to find new customers than they spend developing an outstanding customer service experience.
Good customer service is not good enough anymore, it has to be a great "emotionally connected" legendary customer service experience. A recent Gallup survey showed a customer who is "emotionally connected" to your place of business is likely to spend 46% more money than a customer who is merely "satisfied" but not emotionally bonded.
The logic behind providing a great customer experience is simple - not only will happy customers spend more money with you but they will tell their friends and family about your business and the way you treated them, resulting in the greatest least expensive form of advertising, word of mouth.
The most difficult task for a company's leadership is developing a clear, compelling, meaningful vision of "sensational customer service" that comes alive on the front line, because front-line employees are the key to legendary customer service.
The company's excitement, passion and determination about "emotionally connecting" with customers must be known, owned and energized everyday by front line employees.
Here are eight steps to building a legendary customer service culture.
1. The company must understand, first and for most, that it is in the customer service business and not just a retail, manufacturing or professional service business. Zappos sells shoes online but they are extremely successful because they WOW customers, employees and vendors with their "total commitment" to a customer service culture. Customer service isn't a department at Zappos it is the company.
2. Make aggressive efforts to determine the unexpressed wishes, needs and wants of your customers. Great, legendary customer service is obtained by providing something more than what customers traditionally expect.
3. Select the right people. In the book, From Good to Great, Jim Collins said, "People are not your most important asset, the RIGHT people are." Most businesses do a poor job of hiring people. They hire just anyone and place them on the front-line with customers. Spend more time recruiting and hiring the right people with friendly personalities, that are passionate and enthusiastic about serving others.
4. Outline the behaviors you expect from your employees; continually communicate your passion and vision for how employees should act, speak, and respond to customer needs and requests. Train and empower employees to fix problems on the spot. An estimated 95 percent of the factors that determine the reputation of a company are in the hands of front line employees. They create impressions in the minds of customers and prospects that form an organization's reputation. They especially need to be trained and money must be spent training and continually motivating them.
5. Sustain on-going training, communication, reinforcement and recognition. Good customer service skills are not natural for most people. Effective customer service training must be reinforced and taught on a recurring basis. For example, the Ritz-Carlton hotels provide a thorough customer service training program for all of its employees during their orientation. Then each supervisor conducts a daily "huddle" to review one of the companies core values with their employees before each shift.
6. Appreciate, recognize and reward great customer service behavior. Yes, employees want to be paid well, but they also want to be treated with respect and shown appreciation. The front- line manager has the greatest impact on motivating and inspiring employees. Reward those who exceed the standards and provide training and motivation for those who do not.
7. Get feed back from your customers and reduce your defection rate. On average, businesses lose 15-20% of their customers each year to their competition. All businesses encounter a defection rate, but few do much about it. Develop a feed back system that allows the customer to make an evaluation. Measure the results and make sure employees see the scores. "You can't improve what you don't measure."
8. Seek customer complaints with enthusiasm. A 2006 study from Wharton Business College of Pennsylvania and the Verde Group found that when retail shoppers became angry with a company, only six percent contacted the company to complain. However, thirty-one percent told their family or their friends. Of that thirty-one percent, eight percent told one person and eight percent told two people.Things get more frightening. Six percent told six or more people. Out of one-hundred angry customers, according to the survey, companies stood to lose thirty-two to thirty-six other current or potential customers.
It really makes no sense to destroy good marketing by making customers angry; a bad experience will upset customers as quickly as anything else you can do. Look at customer complaints as a golden opportunity for improvement.
Bill Gates said "Your most unhappy customers are your greatest source of learning."
Bill Glass has coached, consulted and held workshops with numerous business owners, CEO's and professionals on marketing, employee relations and creating a customer service philosophy and culture. He is a platinum expert author at EzineArticles.com and a certified business coach and an authorized marketing consultant.