Service Untitled

Amazon’s $20 increase for Prime members certainly drew a lot of derogatory hoopla this past week with social media and forums all buzzing with criticism about the 25% hike. In fact, according to Brand Key, a loyalty consulting agency, Amazon’s ratings dropped from 93% to 83% two days following the hike.

“Based on immediate Prime member reactions, they may have underestimated the negative effects of the increase,” stated Brand Key.

For anyone not familiar with the Amazon loyalty program, there are estimated to be about 20 million Prime members in the United States. These are the people who spend twice as much as non-Prime members annually, and it’s all about convenience, selection, and price comparisons. And why does this happen? Say it anyway you want, but the best part of any kind of loyalty program is the money a customer saves versus the cost of the rewards’ programs. Now Amazon has never raised the price of their premier rewards incentives since its conception in 2005, and the “thinkers” threatened members with a $40 increase, and then magnanimously acquiesced to only a $20 increase.

My formal declaration arrived yesterday:

Dear Cheryl:

We are writing to provide you advance notice that the price of your Prime membership will be increasing. The annual rate will be $99 when your membership renews on August 1, 2014.

Even as fuel and transportation costs have increased, the price of Prime has remained the same for nine years. Since 2005, the number of items eligible for unlimited free Two-Day Shipping has grown from one million to over 20 million. We also added unlimited access to over 40,000 movies and TV episodes with Prime Instant Video and a selection of over 500,000 books to borrow from the Kindle Owners’ Lending Library.

For more information about your Prime membership, visit our Prime membership page.

Sincerely,

The Amazon Prime Team

So what am I getting for the extra money? Amazon has promised to maintain the free two-day shipping, although there have been lots of complaints about delivery in that time period. Amazon has promised access to their digital library also, but I haven’t read where my customer service is going to increase with the higher dues, but I’m still going to renew my subscription.

And so all of that brings some ideas to promote customer loyalty in smaller businesses. All loyalty programs seek to turn consumers into loyal customers. Thoughts are that even though some customers are going to leave Amazon because of the “principle,” but let’s face it – Prime customers spend an average of 150% more than non-Prime consumers because they want to get their money’s worth.

For many of us with a small business that might benefit from a reward’s program, can we be a bit more innovative than just showing a card after spending a ton of money? No doubt the free reward cards are an incentive to customers returning, but why not give the Amazon Prime idea a turn? For instance, a local restaurant might offer a membership fee which then entitles patrons to preferred seating, preferred reservations, a bottle of wine or special appetizers. Perhaps a retail establishment could offer prepaid bonus cards where an initial fee is paid, and then the customer enjoys a constant discount on merchandise and special incentives during holidays and peak shopping hours.

In the Jacksonville, Fla. area, a beachwear boutique offers their customers a subscription to newsletters and special promotions. Many ardent swimsuit devotees take advantage of the latest styles, health, beauty hints, and private promotions which always includes two-day free shipping.

Not everyone is going to be a disciple of reward programs, but the whole structure of the idea is just a motivating factor into customers buying more and staying loyal; we all want to get our money’s worth!

Facebook gives organizations the opportunity to “WOW” customers with their human and approachable touch so important to building business, loyalty, and the development of a company’s brand. With over one billion active users, why not use Mark Zuckerberg’s brilliant social platform to help to build an audience, engage them in interesting conversation about one’s product or service, and then have the opportunity to convert visitors into more customers?

Facebook isn’t just about tracking down your old boyfriend, sending birthday wishes to your friends instead of the snail mail obligatory birthday cards, or posting photographs from your high school graduation cheerleader captain days; now it’s also about interest groups and ones that are organized by workplaces intended to target visitors to specific sites. In addition, business pages encourage friends and their friends to “like” us, and thus engages another opportunity to share feedback and to help people. After all, we do tend to share our best referrals with our friends and relatives.

The best business pages make answers easy to find. In the very complex world of algorithms, Facebook business pages crawl to the top of the popularity lists through comments, shares, and “likes.” Leading the parade are comments and shares, and of course it is better when customers praise a company with positive comments. Mind you now, this is a perfect opportunity to acknowledge the positive comments with “thank you” responses. On the other hand, it still provides an excellent venue to listen to complaints by responding quickly and being able to help with solutions.

Customer service always comes with the territory on Facebook, as it gives consumers an outlet for airing their issues and allowing  for the most frustrated to have their voices heard. Imagine Ralph Waldo Emerson’s “shot heard around the world” as the American Revolutionary War in 1775 began on the North Bridge in Concord, Massachusetts as the first shot rang out killing British soldiers? Although not nearly as dramatic as America’s fight for freedom way back when, disgruntled people are always searching for solutions, and the more people who they can engage, the more drama that emerges.

Although Facebook promises to provide opportunities to boost businesses, an important caveat needs to be considered; the staff monitoring the page must know their business and be diligent and prompt with responses. Unhappy customers become even more disgruntled if they are ignored; maybe it’s not intentional because staff members are attending to other business dealings, but it’s doubtful a customer whose product has failed will have much sympathy. There is even a good possibility the customer has already tried to communicate via telephone and was met with “please don’t hang up; your call is very important to us” while waiting 15 minutes on hold listening to the same advertisement about the company over and over again. Therefore if a business decides to use Facebook as another customer service portal, make sure to be diligent with sharing feedback, personally answering customers, and responding quickly with solutions.

Constant monitoring can help customers find answers before comments become negative. Even building a FAQ can drive customers to helpful answers. Setting up keyword alerts for words like “frustrated” or “disappointed” depending on the type of business or service, can notify staff members to address a potentially volatile situation before it gets out of hand. Being warned beforehand can still be one of the best opportunities to turn the negative into opportunities.

Take advantage of social media; it’s here to stay.

With happy customers comes repeat business, referrals, and of course loyalty; all adding to a customer oriented culture that ultimately places an organization as being more popular and valuable. The customer-centric legend, Zappos, an e-retailer with a unique approach to selling shoes and a variety of other merchandise, focuses its culture on pleasing the customer at a personal service level. Their “Happiness Experience Form” evaluates the team member’s ability to personally connect with the customer, build a rapport, address the needs of the customer, and deliver the “WOW” experience.

Perhaps one of the best known Zappos’ customer experiences happened in December 2012 when a conversation between a team member and a customer lasted 10.5 hours. Ironically, when the duration of the phone call which concentrated more on what it was like living in Las Vegas than selling shoes aired throughout the media, Zappos did not perceive the news as bad. A Zappos Customer Loyalty Team supervisor, in fact stated:

“Zappos’s first core value is to deliver wow through service, and we feel that allowing our team members the ability to stay on the phone with a customer for as long as they need is a crucial means of fulfilling this value.”

The customer did reportedly purchase a pair of Ugg boots.

Everyone wants to work for the best company which ultimately then attracts the best potential employees; therefore costing less money to recruit the most talented. With successful companies come better revenues, stability in the economics of the company, and more opportunities for future employee growth and promotions.

Many companies question how an organization changes from being focused on products or transactions to placing the focus on customer experiences where people become engaged emotionally. Beginning at step one with employees, evaluate if they are willing to help each other, are compassionate and helpful, and treat each other with respect. Have new strategies been defined to help employees embrace the experience – both by in depth training and by the involvement of partners who are able to enrich these experiences?

Customer-centric organizations incorporate their company culture and teach by example the following basic elements:

• Customer experiences are customized; everyone is an individual and not just included in the one size fits all or “Please do not hang up. Your call is important to us.”
• Customer needs are anticipated.
• Customers receive quick responses.
• Customers are involved in the development of services needed by asking clients and consumers what they find to be important.
• Customer data is recorded and used to deliver a better experience.
• Customer trends are tracked.
• Trends and problems are shared with the team; what better way to improve customer experiences?
• Send out and collect reviews after transactions to improve the customer experience and the products being sold and delivered.

And at the end of the day, have a plan to recognize the achievements of employees. Celebrate that incredible “WOW” experience a team member managed to pull off by “stepping out of the box.” Encourage employees to focus on customer experiences and make each unique experience a part of the company culture.

For the third year in a row, customer satisfaction in the retail trade for the United States is at an all time industry high, but of course there are always some caveats since many of the top retailers who scored relatively low for customer satisfaction are among the top retailers. Go figure!

The American Customer Satisfaction Index (ACSI) report examined the implications of both e-commerce and retail businesses concluding that better customer service, discounting of prices, and lower gasoline prices offset a drop in Internet sales. For instance, gas station business is based solely on price, and with GasBuddy.com, it’s easy to check, however stations have also improved by offering customers quick options for groceries instead of having to head off to the nearest supermarket and  make another stop.

Perhaps one of the more interesting conundrums of the report stated that eight of the ten retailers with the worst customer satisfaction scores were among the 20 top retailers in 2012. Macy’s, Walgreens, CVS, Rite Aid, and Walmart with the supermarket scoring the lowest ACSI score for customer satisfaction  and poor customer relations, still received a high customer satisfaction score for mobile and Internet business. Part of the problem of low scores come from employee feedback where lack of benefits and competitive salaries evoke mediocre to low reviews from the staff.

Interesting enough however, even though brick and mortar stores suffered this past year from less foot traffic, customers were pleased with shorter waiting lines, more products in stock, and the personal service that brings consumers into a store. Add that kind of exemplary service to a romantic city street decorated with twinkling lights and attractive merchandise offered from decorated windows, the holiday season became a fun experience for shoppers.

For specialty stores, the availability of merchandise scored the highest benchmark for customer satisfaction, and in general consumers were pleased with relatively good service, clean and attractive spaces well laid out, and quicker checkout. The down part of specialty stores compared to department stores, however are less sales and promotions. (Even the wealthiest shoppers enjoy a good bargain.)

The Internet retail experience was affected this year by a huge mess of weather delays; scarcely was there a day in the news that supply and delivery didn’t make headlines. Amazon.com didn’t seem to suffer much by offering free delivery and other “wallet oriented” apologies. It doesn’t seem one can beat the convenience, the merchandise selection, ease of navigation, useful customer information on the sites, and customer support of e-commerce; especially coming from an age of young professionals who spend more time online shopping than at the mall. Brick and mortar organizations are constantly challenged to meet and surpass a shopping experience worthy of a personal adventure.

Maybe one of the worst customer satisfaction experiences lately, scoring at the very bottom of ACSI benchmark are Internet Service Providers. Comcast Corporation, as it wens it way to a $45 billion mega merger with Time Warner Cable may be destined to become the two worst companies combining for the worst service imaginable. Facebook pages like Comcast Sucks and I Hate Comcast have thousands of likes and complaints ranging from outrageous bills, endless waits on the phone for service, and inconsistency of service. It’s practically unimaginable that Internet providers will ever do better.

As a new year of customer satisfaction rolls on, let’s hope to continue to see improvements whether we step into a store or sign on to the Internet.

If you have ever tuned into the CBS show “Undercover Boss” where owners and corporate executives work undercover to examine their own companies, it is indeed an interesting concept that has aroused some significant awareness and changes in organizations. Of course, there’s always some interesting drama associated with the television production, but it’s that individual attention and demand for fair treatment and loyalty that sustains success and growth for all of us.

While it may not be necessary to don a disguise with a fake beard, hair dye, and bushy eyebrows, why not use the idea and do some anonymous shopping of your own to determine what customers want, what customers get, and how skillfully and competently customers are getting what they want? For instance, if it’s a big company and you’re rarely in “the trenches,” maybe it’s  time to go shopping? For a brick and mortar establishment, buy something, ask for help, and ask some difficult questions. Are employees knowledgeable about their products? With an Internet based business, order off of the website and check how efficient the ordering process is and how efficiently orders are handled. Ask a friend to order something; get an objective opinion.

So let’s assume the staff is well trained, industrious, customer service oriented, and all around great employees in the sales or service department, but what happens when a customer isn’t satisfied? Most employees deem it much easier to make the sale, or contribute to the desired service, but when there’s a problem, the solutions too often go awry.

Most customers begin the complaint route with the telephone. The job of keeping people calm after they’ve been on hold for what may seem like an extended amount of time can set the pace for impatience and short tempers. If I’ve had a pleasant experience buying a product and I was treated fairly, chances are I will remain loyal and pay more because it has made my life easier, but that’s rarely the end of the transaction. The real test of time comes somewhere down the road if the product breaks, fails, or the customer needs to reach out for extra service or assistance. Customers aren’t going to call you if everything is fine, but be aware the protocol for pleasing customers far more than they expect will exponentially lead to more referrals, more business, and faster growth.

Customer service, therefore is a department not to be decreased because sales are down. Look to the problems being reported and document each and every issue. Here is the time to identify problems, fix them, follow up, review and apologize. Here is an event that can show a customer that you care, and through careful monitoring by rectifying problems in a timely manner, show customers they really matter.

It’s a win, win situation which most likely will leave a smile on someone’s face.

Whether it be hurricanes, blizzards, fogs, or floods, inclement weather has its own way of leading an otherwise civilized society into moments of rage and unacceptable behavior. Spend a few hours in a busy airport and listen as a few narcissistic and petty customers scream profanities at service workers in fast food establishments, airline employees, or transport personnel as if the adverse weather and all of the complications that frequently occur during such times are the fault of the employees.

For airlines at least, and of course in my business of real estate sales, force majeure, or an act of God as contracts state, parties are free from liability when an extraordinary event or circumstance prevents them from fulfilling their obligations. Of course this rarely excuses them altogether, but at the same time airlines are not required to compensate passengers for hotels or other expenses during the delay, and hence something seems to click negatively in the human brain of a few, but no matter how upset we may all become, maybe a “teachable experience” can remind us of what we teach our children.

It is the responsibility of airlines and other services to safely operate during severe weather and emergency  conditions. Businesses that stay open during harsh conditions often have employees who have risked their own safety and comfort to provide necessary services. So instead of telling the person behind the desk she is a “blithering fool,” please learn how to treat people with decency and respect.

For employers who need their staff to brave serious weather conditions, be flexible and realize the difficulty of the situations. Employees are not automatically entitled to being paid if they can’t get to work, and those policies should be clearly explained in staffing contracts or the company handbook. Maintain fair and consistent employment relations with employees before emergencies and have an “adverse weather” policy in force for the continuation of services in case of such emergencies. If employees are able to work from home using remote devices, it maintains stability of the business as well as an important morale booster in times of stress for both employers and employees.

And for all of my fellow travelers in the airports of the world, although airline companies can be a challenge all of their own, use these simple suggestions to ensure a better experience during inclement weather:

• Check online before your flight or call ahead when adverse weather conditions are expected.
• Call reservations. While most delays do not require rebooking, some do.
• If you are expecting to board a connecting flight, see the reservation personnel for additional help.
• Maintain your patience.

Check the website of the airline carrier for their policies concerning inclement weather. For instance, United Airlines has some extremely useful and informative information.

Maybe your medical insurance didn’t pay for a service you thought should have been covered or that manufacturer’s guarantee should have included repairing the rip in the leather carrying case you overpaid for last year, but acting like a petulant brat on a preschool playground isn’t the way to handle the complex world of customer service representatives and real people in support positions. Companies are not inherently evil, nor are they always wrong. Our mothers told us when we were very young that we wouldn’t always get everything we wanted, and we must learn to be fair with everyone we deal with in life.

So carrying all of this along to adulthood, let’s assume there is something that compels a person to complain about a product or a service. Let the primary focus begin with becoming educated and a thoroughly informed consumer. In any dispute, there is always another side, so the better one knows “their enemy” perhaps the better to ask questions and come out with a reasonable solution. In the old days, customers didn’t have the advantage of the Internet to research issues. Possibly the organization has had issues with the precise complaint currently in dispute. Research how the company handled it; they may have visited this particular problem in the past. How was it resolved?

The cardinal rule is to never back oneself into a corner or act like an ass. Play the devil’s advocate and be prepared, however never lose one’s temper and make your bad day a bad day for everyone.

As an example, on Sunday evening, I was at JFK International Airport in New York at the Sky Lounge when an older woman called Amazon to complain about a package that obviously had not arrived in time for Christmas. There was a crowd of people sitting around since we were all weather delayed from getting home, so a few light cocktails, soft music, and comfortable chairs created a welcome respite over the blaring announcements, plastic chairs, and unruly children screaming around the other parts of the airport. That is, maybe we all spoke too soon, as the woman shouted obscenities, and slammed her expresso cup down upon the table actually flinging liquid onto someone’s James Patterson latest novel.

So may I now offer some age-old suggestions on how to act when one needs customer support?

• Do not assume everyone is having a bad day, and don’t take your bad day out on the customer representative. Maybe the representative’s child is gravely ill, or his dog just died.
• Do not exaggerate to the point when it is reasonable to assume you are lying. The absence of that new Kindle Fire didn’t ruin your daughter’s Christmas completely.
• Don’t lose your temper and raise your voice in public. Bad enough the customer support person has to listen to you being an ass; is it really necessary to bother 35 other people seeking a moment or two of peace in an airport lounge?
• Take a deep breath. Calm down. Not every customer service representative is trained in conflict management and getting angry is surely not going to solve the problem.
• Be reasonable, and ask the representative what they would suggest if placed in your position?

Be prepared to compromise; be prepared to act like an adult. And if you can’t …please carry on like an ass in the privacy of your own home.

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.