Three Proven Strategies that Build Customer Loyalty

Most organizations struggle to find ways in which they can build customer loyalty and reduce customer churn. Many of these companies spend large amounts of money and time creating costly reward programs, sending out expensive marketing materials, and investing in expensive customer relationship management systems. While each of these components has value and contribute to customer satisfaction; the following are three proven strategies that build customer loyalty can be used by customer service representatives.

1. Become a trusted customer resource. Customers often encounter life challenges that require expertise beyond their capabilities. For example, an electrical light switch stops working, a toilet starts leaning, their computer starts giving error messages, or they start experiencing problems with their car. In each of these instances, people will often turn to a reputable source for assistance to help resolve the issue. If you are that source, take the time to listen empathetically and then demonstrate that you have the knowledge and expertise to assist them. By effectively and efficiently helping navigate the problem and coming to a speedy and cost-effective resolution, you can show value for the products and services that you and your organization provide. You can also increase customer satisfaction and help ensure that they will return to you again in the future.

2. Demonstrate integrity. In a world where stories of unethical or illegal behavior from businesses and service providers are commonplace, you have an opportunity to excel in demonstrating your own integrity. You can do so by:

Keeping your word and meeting agreed to timeframes and commitments.
Being honest.
Being consistent and reliable in your service delivery.
Providing quality products competitive warranties and guarantees.

3. Address service breakdowns professionally.

Things do not always go the way you plan. An unexpected delay may necessitate a schedule modification or a product may fail to perform as expected or promised. When such glitches occur, take the opportunity to listen to your customer and immediately take the appropriate action(s) to address the situation. Work professionally to identify the issue and cause, and then negotiate an acceptable remedy. By showing that you are committed to resolving the issue to the customer’s satisfaction in a timely manner, you can retain their trust and confidence that you are working in their best interest.

By taking these three simple steps as a customer service representative, you can assure your customers that you are interested in meeting their needs, wants and expectations. You also show that you will put forth the effort to ensure that they are satisfied.

What are other customer loyalty strategies that you use, or have experienced, related to building customer loyalty?

In addition to the three proven strategies that build customer loyalty listed above, you can find many additional ideas for building and maintaining strong customer relationships in these resources – Customer Service Skills for Success, Please Every Customer: Delivering Stellar Customer Service Across Cultures and How to Be a Great Call Center Representative.

POSITIVE Global Customer Service Model

by Robert W. Lucas

POSITIVE Global Customer Service Model – Serving Diverse Customers

The following acronym (POSITIVE) provides some strategies for creating or contributing to a positive global service environment and building strong relationships with your customers. It provides a model to move you from good customer service to the best customer service possible.

Put your best foot forward. Maintain a positive approach to situations involving customers, smile frequently, and have a “can-do” attitude. When dealing with customers and potential customers, never forget that they are your reason for employment.

Offer whatever level of assistance possible. In addressing customer needs and wants, go out of your way to uncover and resolve problems and to build a strong customer-provider relationship.

Stay abreast of current industry trends and strategies for delivering quality customer service. By upgrading your knowledge and skills regularly, you will be prepared to address any type of customer situation.

Identify true customer needs by listening to proactively. You have two ears and one mouth. Use them accordingly.

Take the time to get to know more about your customers. The more you know, the better you can provide quality service.

Invite your customers to open up and share information. Ask open-ended questions (e.g. Who, What, When, How, Why, and To What Extent) that typically lead to more detailed responses from others.

Verify understanding. When a customer provides information, ensure that you heard and understood it correctly before responding. Use closed-ended (typically start with an action verb) to gather this information.

Engage in relationship-building strategies immediately. Use strong interpersonal communication skills. Start with a smile (on your face and in your voice and words) and a professional greeting when meeting customers face-to-face, over the telephone or in an email. If something goes wrong, immediately start on a course of service recovery with a sincere apology and taking steps to “make the customer whole” again with any appropriate compensation.

Source: Please Every Customer: Delivering Stellar Customer Service across Cultures, Lucas. R.W., McGraw-Hill Professional, New York, NY (2011).
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Bob Lucas B.S., M.A., M.A, CPLP is principal in Robert W. Lucas Enterprises, Inc and an internationally-known author and learning and performance professional. He has written and contributed to thirty-one books and compilations. He regularly conducts creative training, train-the-trainer, customer service, interpersonal communication and management, and supervisory skills workshops. Learn more about Bob and his organization at www.robertwlucas.com and follow his blogs at www.robertwlucas.com/wordpress, www.customerserviceskillsbook.com, and www.thecreativetrainer.com. Like Bob at www.facebook.com/robertwlucasenterprises

Do You Feel That Fast Food Chain’s Prices Are Reasonable?

by Robert W. Lucas

Do You Feel That Fast Food Chain’s Prices Are Reasonable?

Have you ever suspected that what you pay is not what is always advertised on the menus at McDonald’s and Burger King restaurants? In recent weeks, I have visited several McDonald’s and Burger King fast-food restaurants. Generally, I have not had a problem, but on two occasions (one at each company’s locations), I have received an item on which the cost was more than what was listed on the menu.

In the case of McDonald’s I explained to the cashier that I wanted a hamburger the size of the Quarter Pounder, but I did not want all the normal items (e.g. American cheese, ketchup, mustard, pickles, and onion) on it. Instead, I specified “lettuce, tomato, and mayo only.” I asked if there was anything like that on the menu and she said they could just switch items on the Quarter Pounder. Obviously, they saved money because the sandwich no longer had all the add-on and instead substituted the three items I requested. When I went to pay for the meals, I found out that there was actually a .50 upcharge because I added tomato. I did not see this charge indicated on their menu, nor did the cashier mention it before ringing the item upon the register. Interestingly, they do not give credit for the items they do not supply on sandwiches in such instances.

To McDonald’s credit, when I went online to complain through their website, the district manager did call me back later to discuss the issue. He was very apologetic and said they would address my concerns since customer satisfaction is a major goal for the franchise. He even mailed me a coupon for a free meal.

On a second occasion, when I visited the drive-through to get a Whopper less than a week later, I ordered a sandwich with mayo and tomato only. The cashier asked “do you want cheese?” and without thinking, I said yes, since it was for my mother who likes American cheese. Again there is no notation on their menu that there is an additional charge and the cashier did not mention it. When I got the receipt and realized that there was a .50 cent upcharge, I asked why they had not indicated so on the menu. The cashier’s response was, “I guess they should add that.” Since I had gone through the drive-through and did not feel like wasting time to complain, I have no idea how it would be handled. I can tell you that several years ago, I had another issue with the same location and did complain but nothing seemed to change. I guess I should have learned my lesson then.

Maybe it is just me, but in a competitive business world where the fast-food companies vie daily for customer loyalty, brand loyalty, and customer retention, it seems that these little add-ons might be just the thing to make customers think about going to a competitor that does not upcharge for everything (e.g. Chic-Fil-A or Checkers). I know that when I consider either McDonald’s or Burger King as a possible source, I pause. Also, if I owned a fast-food restaurant, I know I’d certainly list all costs on the menu and provide customer service training to my employees in order to ensure that add-on costs are pointed out during the order process.

Have you had similar experiences? Let’s hear them.

Ways to Achieve Customer Service Excellence

by Robert W. Lucas

Ways to Achieve Customer Service Excellence

– 3 Strategies for Professional Development

There are many ways to achieve customer service excellence. Professional customer service representatives who truly want to excel at their jobs find ways to acquire the knowledge and skills necessary to succeed. In many organizations, professional development training and information are provided. These resources help employees gain the tools needed to provide stellar customer service and interact with a diverse variety of customers.

If you find that you are not receiving the support you need, there are options that you should consider in order to ensure that you have the information, skills, and support to achieve customer service excellence. The following are three strategies for professional development that can help.

Strive for improvement. Customer service can be frustrating and, in some instances, monotonous. You may need to create self-motivation strategies and continue to seek fulfillment or satisfaction. By remaining optimistic and projecting a can-do image that makes customers enjoy dealing with you, you can influence yourself and others. Smile as an outward gesture of your “I care” philosophy. Many self-help publications and courses are available that can offer guidance in this area.

The reality in many of today’s work environments is that organizations have downsized and some are still struggling to come back from the worst economic recession in recent memory. This has impacted productivity, revenue, employee morale, customer perceptions, and overall societal values. The new business norm is what it is today for many organizations and their employees. The result is that employees and their supervisors are learning to adapt to the changing face of customers related to their needs, wants, and expectations. That means that you on an individual level must step back and analyze your job and role in the service culture so that you can better prepare to meet the challenges and opportunities that you will surely encounter.

Look for a strong mentor in your organization. Many organizations have realized that they need to provide succession planning for the future. To do that, they must create a system whereby frontline employees, junior supervisors, and managers or future leaders are guided in their personal and professional development by those with more expertise, tenure, and contacts. This is going to become even more crucial in the future because of the coming “brain drain” in which thousands of older workers will retire and exit the workplace in virtually every industry and type of organization. When they go, they will take decades of experience and knowledge and leave behind a huge gap in many organizations, especially those that have not created an effective exit strategy or prepared others to step into key roles and positions. One viable strategy that some organizations are using is to put into place a strong sponsored and supported mentoring program.

If your organization does not have a system in place to pair newer employees in the profession with those more knowledgeable and skilled, try to find someone who is a superior customer service professional and get to know him or her. As your relationship grows, become a sponge and soak up as much of his or her knowledge as possible. Additionally, do an Internet search for professional organizations that cater to your profession (e.g., customer service representatives, call-center representatives, sales professionals, or whatever your job title). Often they offer networking opportunities on a regular basis locally where you can attend meetings to hear guest speakers who share their expertise in the field. Through such events, you can likely identify other professionals who are looking to share best practices and information while growing their knowledge and skills.

Avoid complacency. Anyone can go to work and just do what he or she is told. The people who excel, especially in a service environment, are the ones who constantly strive for improvement and look for opportunities to grow professionally. They also take responsibility or ownership for service situations. Take the time to think about the systems, policies, and procedures in place in your organization. Can they be improved? How? Now take that information or awareness and make recommendations for improvements. Even though managers have a key role, the implementation and success of cultural initiatives (practices or actions taken by the organization) rest with you, the frontline employee. You are the one who interacts directly with a customer and often determines the outcome of the contact.

Some people might throw up their hands and say, “It wasn’t my fault,” “Nobody else cares; why should I,” or “I give up.” A special person looks for ways around roadblocks in order to provide quality service for customers. The fact that others are not doing their job does not excuse you from doing yours. You are being paid a salary to accomplish specific job tasks. Do them with gusto and pride. Your customers expect no less. You and your customers will reap the rewards of your efforts and initiative.

Like many other aspects of your job, customer satisfaction and retention often depend on how well you do your job. By taking personal pride in what you do and striving to achieve the best possible outcome of any task you begin, you can help ensure a sense of personal pride. At the same time, your initiative and efforts will likely be recognized and rewarded at some point.

For additional ideas and strategies on ways to achieve customer service excellence, search this website for related articles. Also, check out Please Every Customer: Delivering Stellar Customer Service Across Cultures and Customer Service Skills for Success.

Do you have personal service improvement strategies that have worked well for you that you are willing to share with others? Offer one here.

Time Management in Customer Service

by Robert W. Lucas

Time Management in Customer Service

Tips for Service Professionals

In today’s harried world, effective time management in customer service is crucial. When was the last time that you actually felt that you had time to do everything that your boss or customers expect from you? There is an ever-growing list of tasks to accomplish for customer service professionals. This is especially true in customer care centers. In addition to understanding the needs, wants and expectations of a diverse customer base, you must also deal with a variety of job-related functions.

Some customer service professionals have learned to better manage their time than others. One way to improve on your own time management in customer service is to observe coworkers who seem to be able to easily accomplish their work and efficiently interact with all types of customers. Ask them for advice or opinions about things that you might do to better harness elusive time. If you can master yours, there is an opportunity to reduce your stress and improve job performance while better satisfying your customers.

The following are some proven strategies that can assist you in your efforts to move toward better time management in customer service.

Evaluate Your Perception of Time. Depending on your personal background, influencers and cultural values and beliefs, you view time in a manner that could differ from some of your customers and others around you. Once you recognize your time preferences, you can start to work on improving how you do things. For example, you may either currently take your time and are slow and methodical in accomplishing tasks. Or, you may rush from one task to another while quickly trying to multitask and get many things. In the first instance, trying to do everything perfectly could be causing a backup in calls or customers waiting for service. In the second example, you may be frustrated and disappointing others because your performance is substandard in their view. The key is to find a balance between the two approaches. Asking your customers or other questions to explain their expectations can sometimes help you realize that you are not doing what is actually needed or wanted. Pay attention to verbal and nonverbal cues when interacting with others. Based on their comments or cues, you may want to adjust your service delivery accordingly in order to enhance customer satisfaction.

Examine Your Time Reality. Everyone has the same amount of time each day (86,400 seconds, 1,440 minutes, or 24 hours). Some people use their time more efficiently than others do. Depending on the type of work environment in which you find yourself, your stress may increase because of your difficulties in using time effectively. For example, if you work in production areas (e.g., telesales or customer care centers) where you are held accountable for production rates, have timed standards for productivity, or work at a hectic pace, time can seem like your enemy. Often, high levels of stress may be caused by too few people handling too many tasks. In such environments, you may often have to work extended amounts of overtime or on weekends and holidays in order to meet established goals or standards. The frequent result is that you have little time to think before you speak or act. This is why a good system for time management and effective strategies can come in handy. Even if you can squeeze out a few minutes here and there, those precious minutes can help you efficiently deal with your time reality and more effectively serve your customers or accomplish other tasks.

Determine the Relativity of Projects or Tasks. Assigning priorities is a matter of relativity. Some tasks and projects are rated higher than others. You should be guided by the question “What is the best use of my time?” Many people fill their daily schedules with frivolous or easy tasks and with tasks that they like to do. This often produces a hollow feeling of accomplishment, for they may get a lot done and enjoy doing it, but they have not added a lot of value to customer service or the organizational goals. Keep in mind when setting priorities in the workplace that your No. 1 focus should be your customers and activities that support them.

Be Realistic About Timing. Reality and deadlines have a way of dictating priorities. The starting time of a project or task also may establish priorities. Once you begin a task, there must be enough time to finish it. If this is not possible, you may have to prioritize or seek assistance. The key is to be realistic about the time it will take to complete a task. Make sure that you schedule that much time, plus a little extra, on a daily planning sheet that you create. Also, consider your peak time period for performance. This is your circadian rhythm – the internal clock that makes you more energetic either in the morning or evening. Each person typically has a period of the day in which he or she has more energy and can get more done. Capitalize on your peak period and schedule high-priority tasks during that time, if possible.

Time management is not a secret. It is learned and practiced behavior. If you want to improve, you can do so. There are many resources online, in classrooms and in books and other materials. Make time to assess, evaluate and improve. Only you can do that.

For additional ideas on time management in customer service, review other similar articles on this blog. Also, check out Please Every Customer: Delivering Stellar Customer Service Across Cultures for information about how customers from different cultures perceive time and ideas for interacting with them.

What are the strategies that you use to improve your time usage in your customer service environment? Share them with other readers below.

Building Customer Relationships Leads to Customer Satisfaction

by Robert W. Lucas

Building Customer Relationships Leads to Customer Satisfaction

When was the last time that you had a positive, memorable customer service experience at a bank, store, laundry or other organization? In an age when technology-based service dominates many aspects of business, many organizations have lost the ability to make customers feel special and appreciated. Smart managers and their organizations can separate themselves from the pack by focusing on old-time customer service. When all employees are trained in the skills necessary for creating and maintaining strong interpersonal relationships with customers, companies can take a lead from their competition. That is because building customer relationships leads to customer satisfaction.

To be successful in creating a stellar customer service environment, organizations must prove that they are customer-centric. Customer service must become a strategic initiative driven from the top and practiced by all. Employees at all levels must be trained and held accountable for making customers feel valued. Service in such organizations is a standard, not an exception provided by a few.

The following are strategies that each employee can use for building customer relationships.

Communicate effectively. With so much communication occurring during any given day via technology, many people are forgetting how to effectively communicate with one another face-to-face or over the telephone. Sound verbal and nonverbal communication, coupled with active listening skills, are the keys to any successful interpersonal relationship. This is especially true in a customer service environment where building customer relationships often determines whether someone makes a purchase and shares their positive experience with others or goes away dissatisfied and spreads that message. Through corporate training sessions, online courses and videos, professional development events, articles and books, there is a plethora of information on how to better communicate with others. Each employee should take responsibility for enhancing and honing the communication skills necessary for building customer relationships.

Emphasize the value. It does not matter whether you are selling products, services or both. When you come into contact with a customer or potential customer, you must share reasons why what you offer is the best possible alternative. Your goal is to show that you can meet the needs, wants and expectations of your customers. A rule of successful sales is to sell the benefits, not the features of you offerings. Show the customer why they should choose what you offer over that of a competitor. This can be challenging in a world where your competition is only a mouse click away. Often, your competitors might offer discounts or sell at a lower rate. The differentiator can be that the service and effort you put forth in building customer relationships exceed that of your competition. Think of a time when you paid a bit more for something because you liked the way an employee made you feel during an interaction. Now take that feeling and put it into action for your customers. Go a little further to listen, respond in a friendly manner and make the customer feel valued.

Maintain a flexible stance. Before you ever encounter a customer, make sure that you discuss with your supervisor the level of decision making that you have when it comes to satisfying a customer. Often, organizations that empower front line employees to take extra steps to satisfy a customer are the ones that succeed in building customer relationships. They have lower customer churn rates and higher levels of brand and customer satisfaction.

Capitalize on complaints. Many people fear feedback and often do not ask for it. This is likely based on relationships they have maintained in the past and how they were made to feel. In a service environment, you should always ask for and graciously accept all customer feedback. Look at it as a way to improve yourself, your organization and the way that you deliver service in the future. You can gather feedback at the end of customer interactions, if other customers will not be kept waiting. Take the time to ask if there was anything else that you might have done to make the customer’s experience more positive. Thank them for any feedback that they provide. After they have gone, think of whether there is a way to implement their suggestions. Share these ideas with your supervisor and peers so that all employees benefit.

Building customer relationships is not difficult. It just takes practice and a determination to put forth the effort required to exceed your customers expectations. To get additional ideas on ways to enhance customer experiences in the future, search this blog for other articles on topics on which you have an interest or area in which you need to grow. Also, check out Customer Service Skills for Success, Please Every Customer: Delivering Stellar Customer Service Across Cultures and the AMA training course – How to Be Great Call Center Representative.

What suggestions can you offer other readers related to how to build stronger customer relationships? Share them in the comments section.

4 Proven Ways to Improve Customer Service Skills

by Robert W. Lucas

4 Proven Ways to Improve Customer Service Skills

Are you consistently looking for ways to improve customer service skills? If so, that is a smart and professional strategy in today’s globally competitive marketplace. No matter what type of business or organization you belong to, developing and honing your customer service skills will put you ahead of others. The reason I say that is because many customer service representatives and employees really do not care about their job. They need a paycheck and take the first entry job opportunity which comes along to provide a steady income. This is often in the service industry. In the meantime, they are often “looking for a better job.” The result is that they are not doing themselves, their organization or their customers any real good. Instead, they are going through the motions 0f serving others. Of course, all the blame cannot be placed on the employees. Many entry-level employees receive only cursory operational training (e.g. how to run a register, operate equipment, and a basic understanding of products and services offered). Virtually no time is spent on ways to improve customer service skills.

To distinguish yourself from the crowd and gain a reputation as a stellar customer service professional, you should continually seek ways to improve customer service skills and knowledge. The following are five simple actions that you can take in order to deliver stellar customer service.

Make yourself memorable. Customer service is a “people” business. Successful service providers know how to build interpersonal relationships with their customers. To accomplish this yourself, go the extra distance when providing customer service. Don’t just do your job as it is outlined in your job description. Instead, be proactive and identify your customer’s true needs, wants and expectations. Once you know what these are, put your knowledge of your organization’s products and services into play. Efficiently decide the best course of action to serve your customers. Along the way, be personable and create a positive image or yourself and organization. This might be done through smiling, appropriate laughter, showing an interest in what your customer says, sharing interesting or useful information, ideas or suggestions, or reacting positively to a story or information your customer shares. Whatever you do, make sure that you come across as genuinely interested or concerned. All of these strategies can help build a strong customer-provider relationship.

Address customers professionally. Whether you are communicating with customers face-to-face, over the telephone, in writing or via technology, you must always be professional. Never forget that your customers come from diverse backgrounds and have different expectations of what professional customer service look and feel like. Depending on their age, background and other individual factors, they may be more or less satisfied with your approach in serving them. Other factors come into play to influence how they receive messages that you send. These include their personal experiences, emotional mood, available time, perceptions of you and your organization, and their needs and wants. You likely will not go wrong by treating each customer in a professional and respectful manner. This includes not becoming overly familiar (e.g. using their first name without permission). To identify their preferred form of address, you might simply ask, “How would you like me to address you?” Keep in mind that using informal slang terms in references to customers (e.g. “You guys,” “Sugar/Sweetie,” or “Dude”) can irritate or offend some customers. Another potential problem area comes if you adopt and use a term that you hear a customer’s friend or family member use to refer to him or her (e.g. “Mom,” “Dad,” or “Grandma/Grandpa”). This approach can potentially result in a smaller tip, negative comment to a supervisor, or desertion to a competitor.

Visit your competitors. A simple way to find how you are doing compared to other service providers is to contact your competitors in person or via technology. Note how they greet you, handle questions, and generally how they make you feel about the interaction. Pay attention to things that they do well or not so well. Make mental notes and then adjust your approach to service to match or exceed theirs. Specifically, look for ways to improve customer service skills that you have or add new ones to your toolbox.

Apply the 80/20 Rule. The 80/20 rule, or Pareto principle, was first suggested by management consultant Joseph M. Juran. He named the concept after Italian economist Vilfredo Pareto. Basically the rule suggests that 80 percent of effects come from 20 percent of causes. In customer service, many providers spend 80 percent of their time dealing with 20 percent of customers or similar issues. You can potentially reduce work effort by identifying these common issues in your workplace. After you have done so, work with your co-workers and supervisors to find a common solution to them. This will free up more time to allow you to focus on other customers and deliver a higher quality of service. It can also help to reduce your stress levels.

To find other proven ways to improve customer service skills, read other articles on the topic in this blog.

What techniques or ways to improve customer service skills do you use that might be useful to other blog readers?

Avoid Assumptions When Communicating Across Cultures

by Robert W. Lucas

Avoid Assumptions When Communicating Across Cultures

During interpersonal communication, assumptions can sometimes result because of culturally specific understandings. Preconceived ideas can often cause relationship breakdowns and misunderstandings when dealing with a customer who speaks a different language. Even so, there are ways to avoid assumptions when communicating across cultures with someone who speaks a different native language than you do. If you must assume, then assume that your customer is an intelligent and competent person with whom you can communicate. Then, work with a positive, “can-do” attitude to help ensure you that understand one another correctly.

Recognize that raising your voice when dealing with someone who speaks another primary language is useless. For some reason, many North Americans feel that if they raise their voice to someone who does not speak English well, the person will understand what is being said. An example of how communication can break down between people from different backgrounds was seen several years ago in the popular movie Rush Hour, starring actors Jackie Chan and Chris Tucker. In that movie, both played police officers, Tucker from Los Angeles and Chan from Hong Kong. They met at the Los Angeles airport when Chan flew into town. Here is a synopsis of a scene in which Tucker goes to the airport to pick up a Chan.

Tucker assumes that Chan cannot speak English and raises his voice as he yells, “Do you understand the words that are coming out of my mouth?” Not only did Chan understand, but he later begins to communicate fluently in English. When Tucker acts surprised, miffed, and states, “You did not tell me that you spoke English.” Chan nonchalantly says, “I did not say I didn’t speak English. You assumed that I did not speak English.”

Such actions do little to enhance communication. In fact, yelling or changing tone does nothing to enhance understanding and may well anger or embarrass your customer. It certainly makes you look foolish. Just because a customer is unable to speak English, does not mean that he or she is hearing impaired.

To prevent embarrassment and degradation involving customers, take time to research various cultures. Try to learn some basic phrases spoken by foreign-born customers who frequently do business with your organization. By improving your cultural awareness, global knowledge, and communication skills you can improve the chances that you will provide excellent service to customers.

For additional ideas on how to successfully avoid assumptions when communicating across cultures, check out Please Every Customer: Delivering Stellar Customer Service Across Cultures and Customer Service Skills for Success.

Serving Customers from Different Cultures

by Robert W. Lucas

Serving Customers from Different Cultures

Customer service representatives in the United States (U.S.) are often not prepared for the challenges of serving customers from different cultures. This is especially true related to understanding other cultural values and effectively communicating. This is often because many people have never traveled outside the borders of the Continental U.S., nor have they taken time to research subtle differences in communication styles between cultures. In an ideal world, organizations would provide training on the topic to all employees, but the reality is that most do not.

As an example of how perceptions might differ when communicating, consider the fact that various cultures take a different view of silence during an interaction. For example, North Americans are often viewed by people from some cultures (e.g. Asian) as talkative, aggressive, and boastful. If you are from the United States or Canada you might view a customer from Japan or China as being indifferent or lacking an opinion during a discussion when they do not readily have a strong response or opinion to something that you say. They may appear to simply be listening or hesitant to respond. In reality, many people from Eastern cultures have been taught to be reflective, quiet and to observe. If the person to whom they are talking is older or of a higher socioeconomic status, they are also taught to quietly pay respect and listen to those people. This is contrary to what many people from Western cultures are often used to, which is to speak up and voice an opinion or ask a question. In either instance, there is a chance that because of misunderstanding on both sides of the conversation there could be a breakdown in communication or the customer-provider relationship.

By learning how to effectively interact with customers from differing backgrounds you can improve your chances of creating customer satisfaction. You can also potentially reduce customer churn and help develop better brand loyalty. Check out Please Every Customer: Delivering Stellar Customer Service across Cultures for additional thoughts and strategies on effectively serving customers from different cultures and backgrounds.

Making Customer Service a Strategic Organizational Initiative

by Robert W. Lucas

Making Customer Service a Strategic Organizational Initiative

In case you have not been paying attention in recent years, many time-honored national and international organizations have disappeared or are struggling to remain competitive. In most instances, this can be attributed to the fact that managers and executives have not effectively predicted societal changes. To compound the problem, they did not invest adequate resources into technology and hiring and training customer service representatives. Such neglect typically leads to employees ineffectively providing service levels expected by their customers. Often, the root cause is that decision-makers fail to make customer service a strategic organizational initiative.

In a global marketplace where the nearest competitor is likely to be only a mouse click away, inadequately planning or failing to restructure changing demands usually has dire consequences. The organizations that are prospering in the world are those that have focused on customer service as a strategic initiative.

What companies do you believe make customer service a strategic organizational initiative?

Many successful small businesses have realized that they cannot compete with larger national groups on technology, salaries, and other high-cost elements. What they can do is build a solid team of employees, treat them well, train them and make customer service a distinctive factor in doing business with customers. The result is typically increased customer satisfaction, enhanced customer loyalty, and reduced customer churn.

Some organizations that have paid the price for not adopting customer service as a strategic organizational initiative include:

Radio Shack
Borders Books
Blockbuster
Circuit City

Other well-known organizations are struggling to remain profitable:

Sears
K-Mart
JCPenney
Best Buy
U.S. Postal Service

Why do such failures occur? In many instances, because the management of the organizations fail to foresee coming customer service trends and do not effectively address changing customer needs, wants and expectations, such as:

Consumer buying pattern shifts (e.g. online and over the telephone rather than coming to a store).
Enhanced technology capabilities (e.g. Internet, mobile devices usage, and customer care centers) to provide state-of-the-art service 24/7/365.
Societal shifts that impact consumer spending (e.g. working from home).
Global competition. Many organizations now conduct B2B and business-to-consumer operations via technology where they can reach far beyond their normal geographic location. Customers now buy globally rather than just locally.
Geopolitical changes (e.g. free trade agreements). These open borders for trade and produce competitors from around the world.
Changing demographics and values. A more diverse customer base with varying needs shop today and people move from one location to another. These customers do not leave their cultural and personal preferences behind. All of this impacts product and service decision making and buying.

The reality is that customers have many choices for the same or similar products and services in today’s world. If an organization and its employees do not place customers at the top of their priority list when making decisions, it is quite likely that they may not get a second chance to work with a customer.

The effort to make customer service a strategic organizational initiative starts at the top and flows down to front line employees. For ideas on the knowledge and customer service skills that every employee needs to help make customer service a competitive distinction within his or her organization, check out Customer Service Skills for Success and Please Every Customer: Delivering Stellar Customer Service Across Cultures.