Go to any large gathering of CEO’s and ask each person in that group to anonymously write down on a piece of paper what differentiates their company from their competitors. The result? Over 90% of them will note it’s their superior customer service that sets them apart.
So now it’s time to get skeptical. Is that superior service a reality? If 90% of your competitors answer service, it’s highly likely that service simply can’t be a differentiating factor! How would you answer that question?
At Meridian, from customer surveys we prepare and compile for companies, we have learned that many companies who pride themselves on great service actually provide only marginal service from the customer’s point of view. This can be a bitter pill to swallow for any CEO that boasts about service. As with any challenge faced in business, the first step to becoming better is acknowledging that your company may not be quite as stellar as you think or as your customers want you to be. Once you get over that hurdle and freely admit your company has room for improvement, real tangible change can begin to occur. Here’s what you need to do:
1) Find out what superior service actually means to your customers. Their definition of superior service may be completely different from what your sales department, drivers, or other employees may think it is! You want a definition straight from your best customers’ mouths, but “Mr. Customer, how do you define great customer service?” is usually too difficult a question. Instead ask, “If we could do just one thing to improve our service to your company, what would it be?” This immediately gets to the heart of their service needs and can be done expediently through telephone interviews.
2) Begin with your best customers. Start by interviewing your company’s best customers (as defined by bottom level profits) followed by potential best customers. Do NOT call customers where you are losing money already! You want to know what to do to keep the best of the best, not the bottom-feeders.
The survey question with just slight modification is great for the sales process as well. In sales, the question becomes, “Mr. Prospect, if there was just one thing you could change about XYZ’s (your competitor and their current supplier) service to you, what would it be?” Their answer immediately reveals an area of discontent, which could be your entrée to a future sale.
3) Compile the telephone survey results. You will likely find several customers providing similar answers. Prioritize the answers by frequency of occurrence. For instance, if you interviewed ten customers, and nine of the ten mentioned the same service enhancement that would come first before the one mentioned by only five customers.
3) Estimate the cost of providing each service request, starting with the top priority item and working your way down the list. If there is an upside to making the change – more sales, better margins, fees that could be charged, etc., note that as well. You are looking for a net on each item through a mini cost-benefit analysis. Also take into the consideration the possibility and probability of losing an account from not making the requested change.
4) Approach cost-effective service enhancements with a can-do attitude. Too often, we dismiss what customers want as not feasible. This is usually because we are constrained by our existing systems and thought processes. Instead of thinking about why something can’t be done, explore what it would take to get it done! To meet the customer’s request could require different internal systems for pricing or new equipment, or additional trucks. Come up with exactly what it would take to get the request done.
5) Report back to your customers. Too often we ask for input, then never inform the respondent of the results of their input. If you can’t or won’t do what your customer suggested, tell them why. If it’s something that will take some time to get done, let them know how much you valued their suggestion, you are working on it, and your timetable for completion. If it’s something that will need a “test” case, ask them if they want to volunteer. Customers are often honored to serve as a test site, especially when the new project or system was their idea! The important thing is to let them know their opinion did not fall on dead ears.
6) Measure service. If you say customer service is a top priority, that is the largest differentiating factor to your success, you need concrete, quality measures. These can include percent deliveries made within stated time frame, number of out-of-stock items, dollars in backorder, etc. If you are serious about service, measure. Each and every department in your company should have measurable, customer-driven service goals.
If you implement each of these six steps, you can know beyond any shadow of a doubt that your company does deliver truly exceptional customer service.
