The Secret to Higher Profits in a Digitized World

people shock

The Decline of Customer Satisfaction

Customer satisfaction is going down, not up.

How can that be in a world with unprecedented technological progress?

 

“A brand is the sum of the good, the bad, and the off strategy.” –Scott Bedbury

 

Tema Frank founded Web Mystery Shoppers International, the world’s first company to test omnichannel customer service. Her new book, People Shock: The Path to Profits When Customers Rule , shows off both her decades of business experience and the research from interviewing over 150 business leaders. She developed a formula to help businesses improve the customer experience in the midst of a digitized world.

I recently asked her about her research.

 

“The key to getting work done on time is to stop wearing a watch.” –Ricard Semler

 

What is PeopleShock?

As we automate more and artificial intelligence wipes out jobs, the smaller amount that is left for human to human interaction becomes critical. Companies that are people-focused (while using technology to support those people) are the ones that will win in an era of increasing competition and social media power. If you get the people side right, PeopleShock is your key to success. Ignore it and your company will soon be history.

 

“If you’re too busy to build good systems, then you’ll always be too busy.” –Brian Logue

 

Get the 3Ps of Profit Right

Please share your 3P Profit Formula with our audience.

Customers are cranky, and they’ve got more choices than ever before. So you’ve got to keep them happy, and that means getting all of the 3 Ps of Profit right:

Promise – Having a clear aspirational, inspirational and memorable reason for doing what you do inspires staff and customers. It also gives staff a filter for decision-making: Would their action be consistent with the company’s promise?

People – Business success comes from connecting effectively at a human level with people inside (staff) and outside your organization. Outsiders include not only prospects and customers, but people we sometimes overlook, like suppliers, distributors, lenders, investors, media and the public.

Process – As time goes by, some of the processes that got you to where you are stop making sense.  To deliver consistently great customer experiences, you have to regularly re-assess how you’ve been doing things. Start by looking at processes from a customer point of view. What do they experience? Then look at how that lines up with what you do internally.

 

“CEOs are the ones who must conduct the corporate orchestra.” –Tema Frank

 

How does this translate into higher profits?

How to Provide Extraordinary Customer Service

Learn to Provide Extraordinary Service

What is it that makes customer service extraordinary?

This week is Customer Service Week, a week to remind organizations of the importance of customers and the week to especially celebrate those who provide this service day in and day out.

In honor of Customer Service Week, I want to share a conversation I had with an expert in the field of customer service, Mark Sanborn. Mark is an extraordinary professional speaker, the bestselling author of numerous books on customer service and leadership, and a personal friend. His many books have inspired me and countless others to raise our own performance and deliver exceptional service.

In this brief nine-minute conversation, we talk about:

  • What differentiates extraordinary customer service from average service
  • How good recovery means everything if you miss
  • How to use creativity instead of capital to fix customer service problems
  • The danger of indifference
  • Overcompensating for customer service misses
  • How leaders can develop a customer service culture throughout an organization

 

Customer Service Quotes from Mark Sanborn

Some of my favorite customer service quotes from this interview or from his books:

 

“Don’t sell products or services. Instead, create an experience for your customers.”–Mark Sanborn

 

“Go beyond simply satisfying the customer. Aim to astound.” –Mark Sanborn

 

“The customers who are willing to pay you the least will always demand the most.” –Mark Sanborn

Does Your Organization Have The Right Attitude?

What’s Your Organizational Attitude?

What distinguishes great customer service?

Is your website easy to navigate?

Would customers describe the experience with your organization as amazing?

Some companies are leveraging the power of the Internet in such a powerful way they are increasing market share, earnings, and revenue at an incredible rate. Others are struggling, not fully realizing the potential or understanding what it takes to win with today’s technology.

 

“Net attitude is a state of mind.” –John Patrick

 

It’s All About Attitude

What differentiates winners from losers?

John Patrick’s answer is that it is all about attitude. He says companies with a “net attitude” have an extraordinary advantage over those who don’t.

Having a net attitude “makes constituents happy,” says John Patrick. Because your “website is your brand,” it’s important to make it accessible, easy to use, and focused relentlessly on a positive customer experience.

 

“The prescription starts with a single word, attitude.” –John Patrick

 

Beyond this, John indicates business vocabulary needs to change to adapt to a new mindset.

John believes we are only using about 10-15% of the power of the Internet. The potential represents an extraordinary opportunity ahead.

Money and scale are not enough. It takes the right attitude. And any entrepreneur or company who adopts a net attitude has a sustainable advantage that will propel them to greater success.

 

“Think big, act bold, start simple, and iterate fast.” –John Patrick

 

Copyright John Patrick, Used by Permission Copyright John Patrick, Used by Permission

Embrace Complaints & Hug Your Haters to Keep Your Customers

Hug the Haters

Keep Your Customers

 

Complaints. Do you love them?

Haters. Do you hug them?

If you are angry at a business, what do you do? Take to Twitter? Facebook?

Whether angry, annoyed, or frustrated, ignoring customer concerns is impossible in the social media age.

 

“Haters are not your problem, but ignoring them is.” -Jay Baer

 

When the Customer Hates You

But what do you do when a customer hates you?

Jay Baer shares the eye-opening results of an extensive study on customer service in the social age. Yesterday’s techniques are no longer enough.

Jay is a New York Times best-selling author and the founder of Convince & Convert, a strategy consulting firm helping companies gain and keep more customers. Since 1994, he has advised over 700 companies ranging from Caterpillar to Nike. His latest thought provoking book, Hug Your Haters: How to Embrace Complaints and Keep Your Customers is a contrarian and modern view of creating extraordinary customer service.

 

“Customer service is a spectator sport.” -Jay Baer

 

Why Customer Satisfaction Hasn’t Budged in Decades

Hug Your Haters Book CoverYou share a statistic that customer satisfaction hasn’t improved since the 1970’s. After all the books, the seminars, the new programs, nothing has changed. Why not? What are companies missing?

Customer service has historically played out in private. So even though companies have always said they emphasized it (nobody says “we deliver shoddy customer service” even when they do) they haven’t truly HAD to emphasize it. And doing it well is complex and somewhat expensive in the short term. So nothing has ever really changed. But now, customer service is becoming a spectator sport, and the truths of good vs. bad customer service are out in the open and impacting buying decisions.

 

80% of businesses believe they deliver superior service, but just 8% of customers agree.

 

Let’s say you are about to deal with a customer complaint. How do you get in the right mindset?

Don’t take it personally. Remember that the customer is using THEIR time to try to tell you how to make your company better. And remember that you don’t know what the customer has been through. And then embrace that answering a complaint increases customer advocacy, every time.

 

A 5% increase in customer retention can boost profits 25 to 85%.

 

Social media has given on-stage haters a platform like never before. Businesses were not prepared. What’s the first piece of Jay Baer advice you usually give a business?

This may be a paradox, but our advice at Convince & Convert to companies looking to improve their social media customer service is to first make sure their offstage customer service is outstanding. If you’re not great at phone and email, all you’re going to do is push people from those channels to social media and back again. Be a great walker before you run!

Copyright Jay Baer, Used by Permission Copyright Jay Baer, Used by Permission

5 Obstacles to Great Customer Service

7 Corporate Strategy Myths That Are Limiting Your Potential

Strategy Myths

7 Corporate Strategy Myths

Dr. Chuck Bamford’s new book, The Strategy Mindset, is a practical guide for creating a corporate strategy. Having read more books on strategy than I can remember, I particularly like this one. As I read the book, there were times I found myself arguing with the author. At other times, I was nodding. Still at other times, I found myself with immediately actionable ideas to improve the process at my own organization. And that’s why I enjoyed the read so much.

I think the most controversial part of his book is likely the myths section, where he takes apart existing myths of corporate strategy.

 

“Strategy is about making decisions that will impact the company in the future.” -Chuck Bamford

 

1. People Are Not A Competitive Advantage

Let’s talk about the myths.

First, you say that people are not a competitive advantage. You argue that almost all employees are interchangeable. Good employees are just “table stakes.” Is it not possible to have employees who, on average, are better than the competition?

It flies in the face of so many beliefs that it is just hard to accept. Employees are VERY important as the way that business delivers to customers. However, the moment that you actually believe that your employees are smarter than your competitors’ is the moment that your competitors will start beating you in the market. You have the same (or relatively the same) collection of amazing employees, capable employees, and poor employees as your competitors. All the HR processes in the world today have not changed that dynamic in companies. The employees that you have working in your company are a combination of luck (the biggest factor), HR practices, networking, and did I mention luck!

Bamford CoverI’m not trying to be divisive here, but most of your customers do not generally care (or if they care at all, it is slight) who takes care of their business needs as long as the needs are taken care of. This does not apply to every employee in a company, just most. At every company I have ever worked with or for, there is a contingent of “franchise” employees. Those are employees who, if they left the company, would impact the success of that company quite substantially. We all know who these folks are, and if executives are smart, they take care of these employees to ensure that they stay with the organization. These “franchise” employees are not just the customer-facing employees; they reside throughout an organization.

 

“Employees are not your competitive advantage.” -Chuck Bamford

 

2. SWOT is NOT Strategy

Second, you are not a fan of the SWOT. What’s wrong with the way most organizations use it?

SWOT is the single biggest impediment to doing real strategy that exists, and it exists because certain big consulting firms continue to use it with their clients, and it makes clients “feel good” without really having to do strategy.

SWOT was an attempt to bring some structure to the topic, and as a conceptual approach, it is still fairly robust. Unfortunately, many authors, academics, and practitioners decided that SWOT was an analysis tool and a means for a company to develop its strategy. SWOT is NOT strategy, and it is not an analysis tool.

Anyone can create a SWOT. It is grounded in your own biases and view of the world. In the end, a SWOT is simply the opinion of the person or group filling it out.

 

“SWOT is the single biggest impediment to doing real strategy.” -Chuck Bamford