Service Untitled

I started Service Untitled way back in April 2006 to document my experiences running customer service teams at a variety of quickly growing companies. I wanted to learn from others and share what I had learned myself.

As it turns out, running customer service at quickly growing companies took up a lot of time and as I continued to get busier in my “day jobs,” I had less time to blog. My mom (who readers know as Cheryl) took over most of the regular blogging in January 2010, with me continuing to contribute every now and then. Since then, she has gotten busier with her “day job” as a freelance journalist.

Sine starting Service Untitled, I’ve had the privilege to lead some amazing teams, including the customer service teams at HostGator and the entire team/company at A Small Orange. Each of these companies was and continues to be very customer-centric and were great experiences for me.

Since I am focused on other activities now, the best place to keep up with what I’m doing, and what I’m thinking in regards to customer service, is on Twitter. I’m @douglashanna on Twitter and regularly tweet about customer service and the customer service experience.

This is the 1,243rd and final post on Service Untitled. It’s been a great experience and I’m grateful to the readers, contributors, and friends of Service Untitled that I’ve had the pleasure of getting to know over the past eight years. I’m looking forward to continuing to discuss customer service on Twitter, in person, and elsewhere.

This year, we decided to give copies of To Sell is Human: The Surprising Truth About Moving Others by Daniel H. Pink (signed by the author himself) to all of our employees at A Small Orange as part of our holiday gift package. As a very service-centric company, we wanted to illustrate the fact that sales isn’t what it used to be and isn’t all about conning people into making a buying decision they otherwise would be against. We believe that sales should be consultative and should focus on helping customers choose the right combination of products and services and we wanted this book to help explain that.

Here’s a quick summary of some key points that I prepared to help capture my full understanding of the book. I hope it’s helpful, though keep in mind I was a casual reader and my understanding of some of the key points may vary:

Part one: Rebirth of a salesman

• Sales used to be defined as a certain profession, like the Fuller Man who went door to door to sell cleaning supplies and such. Today, more than 15 million people work in sales (more than manufacturing and only less than office and administration works).
• Through a survey, the author determined that people (who don’t work in sales in the traditional sense) still spend 40% of their time engaged in non-sales selling such as persuading, influencing, and convincing others that don’t involve a purchase. The question was “What percentage of your work involves convincing or persuading people to give up something they value for something you have?”
• Small business owners (i. e. 0-3 employees) and entrepreneurs spend much of their time selling, whether that’s dealing with customers, enticing partners, negotiating with sellers, or motivating employees.
• Some companies don’t have traditional sales people. Pink cited enterprise software company Atlassian and Palantir as examples. Atlassian has no formal sales people (therefore requiring everyone to pitch in) and Palantir puts engineers in sales roles (called “forward-deployed engineers”).
• Educators and medical professionals also have to convince people to part with things (time, energy, habits, etc.).
• People largely hate sales people in the traditional sense. Used car salesman comes to mind when most people are asked what they think about sales people.
• Today’s world makes high pressure sales less effective because of reduced information asymmetry. In other words, the world of sales is switching from caveat emptor (let the buyer beware) to caveat venditor (let the seller beware).

Part two: How to be 

• Instead of “Always be closing,” Pink suggests that the new ABCs of sales are “Attunement, Buoyancy, and Clarity”.
• Attunement is about looking at things from the other person’s perspective. It starts with increasing power by reducing it – essentially a lesson in having the humility to put your assumptions aside and listen to others and their concerns. It also requires understanding what others are thinking (such as understanding any biases or preferences) in addition to just what that they are feeling. Strategic mimicry in a non-obvious manner can also be effective.
• Ambiverts tend to be more successful at sales than extraverts or introverts.
• The first step in buoyancy is interrogative self-talk, which is asking if you have the ability to do something. Research shows it’s more effective to question rather than just pump of confidence.
• Sales people need a good ratio of positivity and negativity to flourish. The research ideal is between 3:1 and 11:1 (positive:negative). Appropriate negativity helps keep people motivated and egos in check. Too much negativity is wearing.
• Sales people with “optimistic explanatory styles,” or their thought process of explaining negative events to themselves do better than sales people with negative explanatory styles. Those with optimistic explanatory styles tend to explain negative events as specific, temporary, or external.
• Finding the right problems to solve is important. It’s about being a partner with the buyer and thinking of the right solution instead of just trying to close a deal. This is commonly called consultative selling.
• Frames of reference are important. Think about the question, “compared to what?” Potential frames of reference are more/less, experiences, labels, blemishes, and potential.
• Providing clarity on how to act (an off ramp) is important. A lot of sales focuses on trying to improve clarity of thinking while ignoring clarity of acting, which is just as or more important.

Part three: What to do

• There are six main pitches types: the one word pitch, the question pitch, the rhyming pitch (helps increase retention), the subject line pitch, the Twitter pitch, and the Pixar pitch (story like).
• Improv can teach a lot about sales. Hearing offers, saying “Yes and”, and making your partner look good are all improv lessons that apply to sales.
• In service (and sales), personalizing things (demonstrating an account is a person) and adding purpose (illustrating doing something has a meaningful impact on someone besides the seller) are applicable to both sales and services. Emotionally intelligent signage and language helps too.

The Review: To Sell is Human is a great book to help you and your employees reframe your thinking of sales. It’s a simple enough read where it’d be appropriate for just about anyone, but still has enough examples and references to various social science studies to be useful for more experienced and senior professionals. The book is not a sales manual, but it will serve as a frame of reference as you think about how best to sell as an individual or an organization.

Pros: The book is a quick and easy read and is well written. There are a number of actionable exercises after each chapter and frequent references to academic studies that provide additional context for those who are interested in finding them.

Cons: Some may find the points mentioned somewhat obvious the arguments simplistic. However, the book is not supposed to be an in depth sales manual or a treatise on how sales has changed as a profession.

Interested: To Sell is Human is available on Amazon in a variety of formats (including the Kindle and in audio formats), starting at $9.99.

The Ritz-Carlton Hotel Company is known worldwide for it’s “legendary service.” So much so, Apple uses the luxury hospitality brand as a model for its owner customer support traditions. Part of their success can be credited to one simple mantra – “Radar On – Antenna Up.” This means seeking out the customers unanticipated and unvoiced needs. This could be as simple as replacing an empty tube of toothpaste while a guest is out on business, or handing Roarie the stuffed Ritz-Carlton lion to an crying toddler.

These practices have not only increased word of mouth and brand loyalty. Ritz-Carlton also boasts among the best employee retention rates around. To create raving fans, they start with inciting brand enthusiasm from their team.

Recently, I sat down with Ritz-Carlton Vice President Diana Oreck to see if she could share any more secrets to the company’s customer service super sauce. She heads up the company’s executive training program, The Ritz-Carlton Leadership Center. Here is what she had to say:

The answers in this article have been modified from the original transcript of Diana Oreck’s interview with Software Advice.

Q: One of the Ritz-Carlton Gold Standards is “anticipate unexpressed needs.” Why is this important to customer service success and how do you train employees to recognize and act on unexpressed needs?

A: It’s very important because legendary service is about surprise and delight. It’s not robotic, it’s not scripted. And the way we teach it is through a class called “radar on, antenna up.” Golden nugget: You cannot give legendary service if you’re on autopilot. We have a daily lineup everyday in every [Ritz-Carlton] hotel around the world where we provide scenarios and discuss the best approach in the class. For example, we might go to a room and see you have one drop of toothpaste left in your toothpaste tube, so we are going to replace that tube of toothpaste without you asking and that’s a nice surprise when you return from business.

Q: What metrics or qualitative data does Ritz-Carlton use to measure customer service training success (How do you know it’s working)? How do you collect this data? 

A: Oh yes, we poll our guests once a month. The Gallup organization sends out a survey to 38 percent of guests that stayed the month before. It’s done randomly with the hope we will get 8-10 percent return. We live and die by that guest engagement number. This is the sum of responses to about 30 questions, including How likely is that guest to recommend Ritz Carlton? Were they delighted and satisfied with their stay? If there was a problem, did we take care of their problem? We know that if that guest engagement number goes up, we know that our training programs have been successful.

Q: Retention is a big issue for a lot of customer service teams. Is the same true for Ritz-Carlton? What does the company do to retain talent?

A: We’ve got a vast list. Rewards and recognition is huge. Ranging from our first class card, which is the most popular form of recognition at Ritz Carlton. It’s just a card that we give it to one another as a thanks. It can be peer to peer, peer to manager, employee to president, president to employee. And then we have things like birthdays, where we give gift certificates. Employees can become ‘five-star’ of the quarter. We don’t do employee of the month, because we find it’s much for meaningful if it’s the quarter. We are also one of the only hotel companies that still provide meals for their staff.

Q: What are the biggest mistakes companies make when training customer service staff?

A: They’re not being specific enough. They’ll say things like “Give great service.” Well that’s nice, but people need a road map. Never assume anything, make sure you have your service standards written down and allow people to observe you in action. Don’t assume that their mother or father, or previous employer taught them what really great service looks like. Have a written service strategy.

Q: What other successful customer service strategies have companies adopted by studying Ritz-Carlton?

A: It’s all about empowerment. The thing that our guests are most wowed about is that every single employee has $2,000 a day per guest to delight, or make it right. But we never use the money because that money is just symbolic. We are saying to our employees – we trust you. We select the best talent. Just help the guest. We do a lot of training around empowerment. So I would say this – you need to empower employees. You also need to make sure that you are inspiring employees to bring their passion to work everyday and to volunteer their best. And you do that by reinforcing their purpose, not their function.

About Diana Oreck: 

Diana leads The Ritz-Carlton Leadership Center – a corporate university created to provide opportunities to leadership and learning professionals wanting to benchmark human resources, leadership, quality and training practices. The program has twice won the Malcolm Baldrige National Quality Award in 1992 and 1999. Diana has more than 30 years experience in hospitality and customer service expertise.

About Ashley Furness:

Ashley is a CRM Market Analyst for Software Advice, where she writes about customer service, marketing and sales strategy. She has spent the last six years reporting and writing business news and strategy features. Her work has appeared in myriad publications including Inc., Upstart Business Journal, the Austin Business Journal and the North Bay Business Journal. Before joining Software Advice in 2012, she worked in sales management and advertising. She is a University of Texas graduate with a bachelor’s degree in journalism.

This isn’t related to customer service as strictly as most of the other posts here on Service Untitled, but as I was typing this up, I figured I’d post it here because some folks might get some value out of it.

Like many people, I have a lot of respect for Steve Jobs and what he accomplished. I pre-ordered his biography as soon as it was announced and have read a lot about him and talked to people who have worked for him. When I saw this post on the Harvard Business Review blog, I liked that it summarized some of the more applicable leadership lessons and wanted to write some of them down.

Here’s my summary of the summary of what leadership lessons people can learn from Steve Jobs.

Focus:

• Minimize the amount of products / services you offer.
• Make three great products instead of 100 okay products.

Simplify:

• “Simplicity is the ultimate sophistication.”
• The best simplicity conquers rather than ignores complexity. In other words, true simplicity is more than removing clutter.
• Asking “Do we need this?” about everything, even the things that seem obvious, is an exercise worth doing.

Take Responsibility End to End:

• Seamless integration is an important part of simplicity.
• It can be difficult to have a truly exceptional user experience without end-to-end responsibility for it. In other words, take responsibility for “the whole widget.”

When Behind, Leapfrog:

• If you’re behind, make sure your next step puts you ahead instead of on par.
• If getting ahead means cannibalizing yourself, it’s better than someone else cannibalizing you.

Put Products Before Profits:

• Don’t compromise.
• If you make great products and are passionate about it, profits should follow.

Don’t be a Slave to Focus Groups:

• Customers don’t always know what they want
• Henry Ford said “If I’d asked customers what they wanted, they would have told me, a ‘A faster horses!”
• Jobs said “Our task is to read things that are not yet on the page.”

Bend Reality:

• Don’t accept what seems to be impossible.
• If you have to, push people to make the impossible happen.

Impute:

• Mike Markkula urged three principles: empathy, focus, and impute.
• People form an opinion about a product or company based on how it is presented and packaged.
• Packaging can be as important as the product.
• Similarly, design can send a message.

 Push for Perfection:

• Don’t be afraid to step back and ensure everything is perfect before launch.
• Just because you can’t see it doesn’t mean that it’s okay for it not to be perfect.

Tolerate Only “A” Players:

• Work with only the best to prevent “the bozo explosion”
• Hold those people to high standards.
• It is the founder/CEO/visionary’s job to be honest.
• If you expect great people to do great things, you can often get people to do great things.
• Loyalty has to be a factor if you’re going to be brutal.

Engage Face-to-Face:

• Spontaneous interactions can lead to great things.
• Jobs said “People who know what they’re talking about don’t need PowerPoint.”

Know Both the Big Picture and the Details:

• Individual products make up a big picture and it’s important to know what that big picture is.

Combine the Humanities with the Sciences:

• Being a great technologist isn’t enough.
• Being a great designer isn’t enough.
• Being at the intersection of humanities and the sciences can be useful.

Stay Hungry, Stay Foolish:

• There can be a place for a rebel and counterculture streak in the business world.
• As one of Apple’s famous ads said “the people who are crazy enough to think they can change the world are the ones who do.”

This is the fourth and final part of my interview with Rob Siefker, the Director of the Customer Loyatly Team at Zappos. In this part of the interview, Rob talks about performance reviews, how Zappos encourages employees to further their knowledge (and pays them for doing so), what he thinks about seniority and tenure amongst call center agents, how Zappos handles scheduling, how the company encourages “personal emotional connections,” and finally, what Rob thinks companies can do to deliver Zappos-like service.

You can read part one of the interview here, part two here, and part three here. To read this part, click “read more.”

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This is the third of a four part interview with Rob Siefker, the Director of the Customer Loyatly Team at Zappos. In this part of the interview, Rob talks more about the service metrics that Zappos tracks, how the company empowers its Customer Loyalty Team Members (and has avoided bureaucracy), how escalations to managers work at the company, how the Zappos compensates its employees, and the extensive continuing education programs employees have access to at Zappos and how they work.

You can read part one of the interview here and part two here. You can also jump ahead and read part four here. To read this part, click “read more.”

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This is the second of a four part interview with Rob Siefker, the Director of the Customer Loyatly Team at Zappos. In this part of the interview, Rob discusses how Zappos motivates members of their customer loyalty team, what programs they have in place to recognize good service, and what service metrics the company tracks and how.

You can read part one of the interview here. You can also jump ahead and read part three and/or four. To read this part, click “read more.”

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After interviewing Zappos CEO Tony Hsieh  and seeing the company’s HQ outside of Las Vegas, I knew I wanted to learn more about the nuts and bolts and day-to-day operations of Zappos. To get this information, I spoke to Rob Siefker, Director of the Zappos Customer Loyalty Team. In part one of this four part interview, Rob talks about what he does at Zappos, how the company handles operating 24/7, what the training process is like for Zappos employees, and how the company makes the most out of cross-training its employees.

Click “Continue Reading” to see the questions and answers. You can also jump ahead and read part two, three, and/or four.

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