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Customer service

Customer service

  1. Eliminate service rather than provide it

  2. Prioritise the human relationship with the customer

  3. Develop the service across customer needs

  4. Personalise the service

  5. A happy team creates happy customers

  6. Analyse feedback dispassionately

 

1) Eliminate service rather than provide it

Customers don’t want help they want your product. Unnecessary communication has a cost and its prevention is far better than its use. Therefore the best service is no service, or even sometimes enabling the customer to serve themselves, as at petrol pumps, ATMs and supermarkets. If engagement with the customer is essential, the aim is to eliminate risk and uncertainty. This is done by being reliable, and demonstrated by alignment across people, processes and equipment. If problems do happen and they should be resolved capably and generously so issues don’t escalate. If they have already, stretch out the apology, then ask questions, then resolve the customer's sense of injustice by providing something extra. 

 

2) Prioritise the human relationship with the customer

Your most important, all-encompassing and effectively only job is customer service. 'There’s only one boss, the customer, and he can fire everyone from the chairman down.' This service starts as soon as you come in to contact and never stops. Every interaction either increases or decreases your reputation. When a business loses a customer this is 70% as a result of negative human interaction and only 15% due to poor quality, and another 15% price. So basic relationship principles have a huge effect. The best way to manage this is the same way you would with your friends, family, and team members. Be uplifting, supportive, and human. Put their needs first and you will find your own are fulfilled. Zappos, the online shoe store, is the famous example of taking this as far as it will go. They will help with whatever you want, even the weather or a local pizza restaurant.

 

3) Develop the service across customer needs

The lifetime value of a customer is vast. Thinking in terms of a relationship rather than a transaction maximises your contribution to this value. This leads to a long-term approach of building one customer at a time and aiming to never lose them. Not only is this better for your company it is also better for the customer. Larger sales generate less admin and greater efficiencies on both sides. Cross-selling can then deepen relationships and increase efficiencies further. So, having understood your customers' needs, look for more services to provide. The typical example is a travel agent linking car, flight and hotel information. Customers' needs change over time, so consistently analyse them and seize opportunities to serve as they arise. 

 

4) Personalise the service

A deeper relationship enables you to anticipate rather than react and provide a more valuable service. Therefore the more personal the relationship the less commoditised you are. Do this by getting to know your customers intimately and personally. Imagine and follow their lives in detail, know why they buy from you and then you can provide accordingly. Keep close track of their behaviour to make sure you’re continuing to provide the best possible service. Your responsibilities don't end at your product. For example, a good doctor doesn’t just give you a prescription, he makes sure you take it. Netflix’s recommendation algorithm consistently monitors and tailors the product to its customers' needs. However, they also encourage human customer service when necessary. Avoid use of 'company policies' and 'rules' which are unpersonalised and therefore the antithesis of this.

 

5) A happy team creates happy customers

One person cannot have every customer interaction, the majority will be with team members. They form an essential part of the product. So a kind and caring approach requires happy and engaged employees. Put your team first and they will put their customers first. This process starts at search by ensuring the right attitude, generally seen to be 75% the result of training and 25% hiring. Then create a vision which inspires and empowers them. Back this up with real power, for example, the Ritz Carlton provides all staff with control over a large recovery fund. Then every interaction with team members is ‘orientation’. Be professional, be thoughtful throughout. Watch your language in particular. Remove words like ‘policy’ and don't use 'no problem' which would indicate it could have been. Always ask if there is anything else I can do for you? For example, in Disney, you’re a guest, not a customer. Overall, do not divide business and work. They’re both all about relationships. 

 

6) Analyse feedback dispassionately

Feedback, both good and bad is essential for identifying and serving customers' needs. Imagine complaints and compliments as manuals for service. So make sure you are getting enough of them. Provide direct cell phone numbers where possible and treat feedback with genuine compassion and empathy. Everything is your problem. As well as tracking it carefully, ask for suggestions and always presume improvement - 'you’ve probably thought of some ways we can improve'. What’s the first that comes to mind? Avoid yes/no questions and ask how instead. Work out what interactions cause extreme positive and negative sentiment and monitor them. Enjoy developing the relationship as you do. Bear in mind people develop emotional reactions to people and products and are bad at working out what they like or don't like and why. So observe impartially.

Product management

Product management

Platform businesses

Platform businesses