The Third Zone

Specialists in Organizational and Executive Leadership

  • Home
  • Our Team
  • What We Do
  • Successes
  • Blog
  • Reading
  • Contact

May 18 2022

Retaining Customers – Added Challenges in the Emerging New Normal

best service stamp 1

Attracting and retaining customers has forever been the drive and the key goal for business of any type. And as the goal it has often presented challenges that have been created by various circumstances not always in the control of the organizations.  This has definitely been the situation of the past 2+ years. Now, in May of 2022, we are hopefully emerging out of the pandemic that in various ways hijacked the best plans and intentions. And, as has often been stated, in emerging we are not returning to the business atmosphere that was. We are emerging to an environment of the new normal. So, in terms of attracting and retaining customers, what does that mean?

First, let’s explore how various organizations have looked at the loss of a customer(s).  Perhaps it was the oldest, biggest or most profitable and the reactions regardless of the customer varied.  I’ve seen some try to laugh it off.  Another was simply angry … at the client given all ‘we have done for them’.  A third reaction was just being sad and puzzled. Yet regardless of the initial reaction actually examining the situation generally takes all to a place of concern.

Upon reflection and examination, what created the puzzle and lack of understanding as to why the customer was lost included:

  • They didn’t recall any negative conversations and viewed this as an easy customer.

  • They may have done a poor job of really listening to their contact and missed some warning signs of discontent.

  • They realized they had no real relationship or interface with any people in higher positions if the customer was a company, thus making them vulnerable.

  • They viewed this customer as a long-term relationship requiring little attention.

Do you see any red flags? I bet you do. Even though doing things to change the above pitfalls seems so logical we find that getting comfortable … too comfortable … is not a rare occurrence.

HOW THE CHALLENGE HAS INTENSIFIED SINCE 2020

angry cust face 1

Now consider today and what might be different that can intensify the threat of losing our customers. It has much to do with what the customers have had to endure and what adapting has required.  Regardless of a particular business thriving in a COVID impacted world or suffering, it is the customer’s lives that have been turned upside down. For us to retain past/current ones or attract new ones we need to focus on and understand what they have endured.

cust service sign

The answer is defined in two simple words … CUSTOMER SERVICE.  Most people do understand that the places they like to go to do business have also been challenged.  Most people have also been extremely frustrated in adapting to the changes that have been imposed … just as the business has.  However the one thing that customers see as in their control is the level of service they receive when working with a company of any type.

Shep Hyken is a customer service and experience expert and a New York Times and Wall Street Journal bestselling author. Perhaps logically, he has explored and researched this very issue and the experience of customers navigating the challenges related to doing business. Here are some of his key findings as presented in his Forbes report:

  • There was a major jump in customer inquiries, complaints and support calls. Companies adapted with digital support—some better than others.
  • At first, customers were a bit more understanding about long wait or response times, but quickly lost patience as they realized the companies and brands weren’t making an effort to adapt to their changing needs, which were based on the rapidly changing times.
  • A survey of more than 1,100 consumers found that 50% have prioritized customer service as a deciding factor about whether or not to do business with a brand. If you’re a company that focuses on customer service you could have a competitive advantage.
  • One third (33%) of the consumers surveyed claimed they had switched brands due to poor customer service since the beginning of COVID-19.
  • Sixty-four percent would switch after just two or three bad interactions. Furthermore, 67% report having the same or less patience for bad service since COVID-19 began.

STEPS TAKEN TO RESOLVE THIS THREATENING SITUATION:

Concerning?  For sure and it should be.  And the question becomes what to do about it that will resolve this very real and threatening situation?  Here are some very practical steps to be taken within the entire organization as it relates to customers:

  • Adopt the mindset of ”NEVER AGAIN” and communicate this to all in the organization

  • Look at a loss as a signal of other potential problems within the customer base.  Attributing it as just being ‘that’ customer is a serious oversight.

  • Create a litmus test to perform on each relationship to uncover weaknesses and vulnerabilities. Accept every customer comment as delivering a message that may need to be addressed and improved.
  • Openly share each incident with the organization and certainly the management group to discuss changes that can avoid this going forward regardless of how big or small the issue appears to be.

    here to help sign 1

  • Resolving an issue or answering a problem on the first call makes sense. Nobody wants to keep calling back regarding the same issue a second or third (or fourth or fifth) time. Nobody wants to wait on hold wondering when they are going to get to someone who can help them. That’s customer effort.

Shep Hyken concludes his findings like this. Eighty percent of customers say that when their problems and complaints are managed well, they feel more emotionally connected to the company. Note: You can’t have customer loyalty without an emotional connection.

staff training sign

So, how do you lose customers? Even more important than price or product quality, just give them a bad customer service experience. Make them work hard to get to someone who can help. Waste their time with long hold times, not giving them an option to have a callback. Connect them with people who haven’t been properly trained or don’t have the knowledge to answer questions. If you’re guilty of any of these (or other related customer service blunders), it’s time to change course. In these times of heightened customer expectations and demands, you have to be good enough for them to say, “Even when there is a problem, I can count on them. I’ll be back.” Otherwise, say, “Goodbye.”

litmus paper

The longer we have a relationship with a customer the more relaxed and comfortable it becomes from all sides. However, when easier and comfortable spills over the line wherein we take the relationship for granted we risk finding ourselves on a rocky and unstable path. Clearly the past recent years have left their mark.  It becomes the job of every business to respect and respond to this reality. Does it make sense to take inventory in your customers? Litmus paper is VERY inexpensive and a great tool for an on-going check-up.
Mike Dorman

Written by Mike · Categorized: Changing Business, Customer Management, Leader as Learner, Managing Change

Apr 05 2018

How Do You KNOW That You Do, In Fact, Deliver Great Customer Service?

One of the biggest challenges that any type of business faces is to know with confidence that they are viewed by their customers for being as wonderful, caring, responsive and concerned as they believe themselves to be.  It is somewhat surprising to me that when the question is asked of those involved in any type of business, the answers are based on what they think and why they think it.  Yet the question that doesn’t bring a definitive answer is … How do you KNOW  that you, in fact, deliver GREAT customer service?

Sam Walton, the founder of Walmart, put forth a meaning quote:
“There is only one boss. The customer. And he can fire everyone in the company from the chairman on down simply by spending his money elsewhere.”

To the extent you can subscribe to his statement, you come to realize that having a truly satisfied and happy customer actually overrides the product or service you might provide in terms of critical importance.  And if you agree, the next question becomes how can you actually know that what you envision as providing in this regard is being perceived and received in the same way by those on whom you depend to keep your organization in business?

I’m confident that we have all had experiences at both ends of the customer service spectrum.  When it’s outstanding we tend to sing the praises of the organization, the product or service and continue to happily return time and time again.  On the other hand, when our experience falls short of what we want or need, we return as a customer only when we feel we must or even more likely, we look for another avenue to get a similar product/service.

Personally, I  believe that those organizations who take the time to determine just how their customers do the customer service they provide are those that stand the very real chance of increasing the overall success they experience.  Here are some steps that one might consider that will enable you to 1) know what your customers think and 2) inform you as to any changes you will want to make to improve how you are valued by your customer.

  1. Clearly Identify Your Customer
    This sounds perhaps obvious and even a bit silly, however when we ask several people in our organizations to identify our primary customer the answers (plural) will be a surprise. Just the lack of a single, common answer is an indication of the lack of clarity and with that, how can we expect all of our customers to be treated in the same way regardless of the individual or department providing what we do?
  1. Find Out What Your Customer Wants and Needs
    Of course they came to you because they think they want what you can provide. However, by taking a small amount of time to ask your customers what it is they are truly looking for from us it allows the organization to make tweaks to their customer service that will hit the mark of the very people who we depend on to keep us in business and successful.
  2. Knowing What I Want and Need … Can Your Organization Truly Meet My Expectations?
    One place that organizations get into trouble with customers is when they are so intent on saying ‘yes’ to any piece of business that they commit to providing it when, in fact, they don’t have the knowledge, experience, skill or bandwidth to do so. Thus, saying ‘yes’ is one sure way of disappointing the very people on whom your ultimate success depends.
  3. Use The Best Source Of Customer Satisfaction … Your Team Working With Your Customer!
    Too often it is a group sitting in the ivory tower of an organization that ponders and determines how great customer service is defined resulting in what is to be provided by all involved. And yet, residing in that same organization are those who have the ongoing interface with your customers and thus, the best ones to convey to those in the ‘tower’ what must be provided in order to create raving fans that all seek to have. Use them and truly use their input to define the customer service that all will provide.

If, in reading to this point, you come to question or realize that you don’t have company-wide or departmental definitive answer as to how your customers really perceive the service you provide in the course of doing business, hopefully you’re curious and determined to find out.  There are avenues you can take to do so and I’m confident that the result will be anything but wasted time.  In fact you may find yourself exactly where you strive to be.  Consider these steps:

  1. Survey Your Customers
    Put together small groups or individual customer inquiries during which you and other representatives of your company become master listeners asking questions like …
  • What are the things you expect of our product or service?
  • What should we be doing to earn your praise as providing the best customer service you have experienced … anywhere?
  • What about your experience, if anything, has left you feeling undervalued and unimportant?
  • What are the things you experience now that reinforce the importance you are to the company?
  1. Train ALL members of the organization on the ‘new’ program
    Once you have determined what you are going to do that will meet your customer’s expectations of customer service convey and train every single person within the organization as to what they are all expected to provide and how they are to do it. Anything less will represent wasted time and effort unless there is the initial commitment from within to listen and implement based on the findings.  Without the intent and goal to implement based on the findings the risk is serious loss of those same customers.
  2. Create a system of ongoing inquiry to insure ongoing success
    Implement a systematic method of continual evaluation with every customer at every instance. Is it a 1 minute telephone survey following the call or is it an emailed questionnaire that will provide instant feedback that allows you to know the extent to which you were successful in the eyes of each customer?  Regardless of the method, your customer will continue to be impressed with how much you continue to care and the consistency it represents.

Of course, whatever our product or service, this is the business we see as what we do.  And yet there is little argument with the fact that without maximizing our customer satisfaction we are leaving opportunity and some degree of success on our table.  Bill Gates once said “Your most unhappy customers are your greatest source of learning.”.  Perhaps it’s really time that we take that refresher course?
Mike Dorman

Written by Mike · Categorized: Customer Management

Contact

Toll Free: (866) 902-3777
Direct Phone: (949) 733-3777





    The Third Zone
    (Headquarters)
    5319 University Drive #212
    Irvine, CA 92612

    Copyright © 2023 The Third Zone

    Powered by Guild™

    Please wait...

    Subscribe to our newsletter

    Want to be notified when our article is published? Enter your email address and name below to be the first to know.
    SIGN UP FOR NEWSLETTER NOW

    190220 Ebook CTA image

    Being Thrown Under the Bus:
    What to Do When It happens to YOU in the Workplace

    Chapters include:

    • The Meaning of Being Thrown Under the Bus
    • The Ones Who are Likely to do the Throwing
    • The Impact on the Individuals and the Organization Where Throwing Under the Bus is Tolerated
    • Responding After Having Been Thrown Under the Bus … You Get to Choose
    • How to Minimize the Likelihood of Finding Yourself Under the Bus

      Your Name (required)

      Your Email (required)

      Your Phone

      Thanks for your message!

       

      Loading Comments...