Building Your Own Pocket of Greatness

There are two Best Buy stores that are less than a 15 minute drive from my home. For the past several years, I've instinctively gone to the one that's "in town" because that's the general direction I went for most of my shopping. Unfortunately, I was often turned off by long lines, crowded parking lots, and indifferent service. I like Best Buy's selection of products, so recently I tried shopping at the other store near my home that was "out of town". This store was a whole new world. Every time I've been there I was greeted by a friendly, knowledgeable associate who helped me make a good purchase. And, there was always plenty of parking and rarely a line at the cash registers.

Same chain of stores. Different locations. World of difference.

Jim Collins, the Good to Great guru, wrote, "you can build a pocket of greatness without executive power, in the middle of an organization." He argues you can find ways to create a great team, department, or business unit regardless of your company's reputation, your boss's capabilities, or the resources at your disposal. Today's economic climate presents a perfect opportunity to stand out from the crowd and demonstrate your value.

Resources
Jim Collins has a great website with lots of tools. You can also check out my recent interview on NBC San Diego.

Receiving the gift of (online) customer feedback

There is a growing list of websites that are dedicated to allowing customers to share feedback and reviews with each other and even the companies they are rating. These sites can be a powerful tool for companies that are willing to listen and act on what they hear. The sites can also dramatically hurt businesses that aren't paying attention or are unwilling to take corrective action.

Here are just a few sources I've found to be quite helpful:

consumersearch. This handy website compiles product reviews from multiple sources. Last night, I used it to check out vacuum cleaners. I've wanted a Dyson for awhile, but Consumer Reports gave it mediocre ratings. A quick check on consumersearch revealed that most people were overwhelmingly satisfied with it. I wonder if the Dirt Devil and Hoover folks are checking this site?

yelp and kudzu. These websites feature user-generated reviews of local area businesses. These are great sites for small businesses to be aware of.

Get Satisfaction. This site takes it a step further by allowing customers to provide each other with tips and ideas on resolving customer complaints. This site primarily features larger companies, and the smart ones are joining in on the conversation to spot (and fix!) customer complaints quickly.

epinions. Another great site for customer feedback, especially on service providers.

Industry-specific Feedback
There are a lot of website that offer feedback for your specific industry and a customer-focused company would do well to pay attention to what your customers are saying. The hospitality industry has many sources to choose from, including Expedia, Travelocity, and Hotels.com. I've also used Service Magic to find home improvement contractors and even get quotes from registered service providers.

Check out this helpful article from Inc. Magazine for more information on customer feedback tools.

DHL Express to take "the DHL" out of the shipping business

DHL announced last week it plans to pull out of the domestic express delivery business within the US. I haven't had much good to write about DHL (see my November 2 post), but this one takes the cake. A recent BusinessWeek article quotes John Mullen, CEO of DHL Express, as saying, "It's hard to see what could have been done that would have led to a different result."

Recently, I saw a keynote address from a former Navy fighter pilot who is now a motivational speaker with a group called Afterburner. The speaker stressed that "debriefing after the mission" is one of the most crucial, but often overlooked, steps to achieving high performance. With this in mind, here is what we can learn from the demise of DHL Express. i

• Be careful what (and how) you outsource
• Beware of icebergs
• Listen to your customers

Be careful what (and how) you outsource
The delivery driver plays a crucial customer service and public relations role in a delivery company. He or she typically visits clients every day, drives a mobile billboard (i.e. branded delivery truck), and is the starting and ending point for package delivery. In short, the delivery driver is critical to clients' perceptions of a delivery service.

At DHL, delivery is outsourced in many (if not all markets). The contractors driving DHL trucks in San Diego are often aggressive drivers, making a poor impression in traffic. (I live near DHL's San Diego hub.) I've also heard many reports of these contract drivers being surly and unpleasant with clients.

The lesson here is be careful when you outsource. Outsourcing may save a few pennies, but could cost you a few dollars if the function is vital to your success. At the very least, you should hold contractors to your own service standards if they have regular contact with your customers.

Beware of icebergs
An iceberg is typically bigger and more dangerous below the surface. In business, what you can see (above the surface) may indicate much bigger problems below the surface. A few years ago, I was a Customer Service Manager at a catalog company that shipped most of its orders via Airborne Express (now DHL). The Airborne Express order tracking system was error-prone and inaccurate, especially when compared to their competitors, UPS and FedEx. As a result, they'd often lose shipments mid-route and try to tell us we never shipped the package. Typically, the package would turn up in one of their warehouses a few days later.

These situations should have pointed DHL towards operational challenges that urgently needed fixing. Instead, they were written off as one-time flukes. Companies who ignore or do not investigate icebergs risk seeing their strategies fail, their productivity decline, and their customers defect.

Listen to your customers
DHL's recent ad campaigns and CEO John Mullen's comments show how out of touch DHL is with their customers. In classic Dilbert fashion, the marketing department decided to promote something (outstanding customer service) that operations couldn't deliver. (Ha ha, no pun intended, but it worked.)

Your customers will tell you where you are doing well and where you can improve. If you are going to promote a particular benefit in your advertising, you would do well to first ensure you can deliver that benefit. The trick is to resist the urge to assess your capabilities through internal measures alone, but to instead listen to the voice of your customers.

They Say Tomato, They Do Potato

Advertising often speaks to a companies more subjective qualities like customer service. They're paying for it, so they can generally say what they want. Even if they are the only ones that feel that way about themselves.

Here are a few examples:

DHL
Not long ago, DHL ran a series of commercials that focused on their apparent ability to put "customer service back in the shipping business". You can watch one of these commercials below.



The public may disagree with DHL's take on their own service. They rate a miserable 1 star (out of 5) for customer service on Epinions. Read the full review here.

American Airlines
It's pretty hard to get a smile from an American Airlines employee these days. I'm traveling on American Airlines today and I've tried all the standard techniques like smiling, saying "hello", being a customer, you name it. There have been a few kind people, but overall hey seem a bit preoccupied. (Their Epinions rating is 3 stars out of 5.)

This reality didn't stop the editor of their in-flight magazine from writing about "service with a smile" in the latest issue of American Way magazine. You can read for yourself (page 12 of the magazine, page 14 in the reader).

Misalignment
There's a lot of reasons why customers may experience something different than the marketing message. Perhaps the clearest indicator is when there is no deliberate connection made between the message and the action. Employees don't know what's expected, don't receive training, and may not even know about the marketing message itself. Supervisors don't incorporate the message into their supervision. Management doesn't manage or measure how well they deliver to the message. And so on.

Are you letting sales walk out your door?

I've had an experience yesterday that illustrated how indifference and apathy towards customers can cause sales to walk out your door. If your company is doing awesome, then stop reading. Otherwise...

Three May be a Crowd
I think there were a total of three customers in Office Depot last night when I walked in to load up on a few supplies and buy a computer monitor. By my count, there were a total of four employees on the sales floor, but all seemed engrossed in some form of task. No one looked up to welcome me as I walked in.

I picked out some paper and then walked over to the aisle with the monitors. "Ahh, now they'll come greet me," I thought as I wandered into the "bigger ticket" section of the store. Um, not really. Just me, left alone to browse.

After some investigation, I found the monitor I was looking for and took the inventory ticket to the register. The cashier, Manny, looked up the product and told me they were out of it. Manny also said the other Office Depot stores in the area were out of the monitor too, but they might get some in on Friday.

Choose Your Own Adventure
Here is the part of the story where I invite you to guess what happens next.

1. Did Manny suggest I "check back" on Friday to see if they have the monitor I'm looking for? OR
2. Did Manny offer to take down my number and call me when the monitor I wanted was in. OR
3. Did Manny offer to have someone help me find a suitable alternative from among the many monitors that were in stock?

Manny chose option 1, which is interesting employee behavior since Office Depot posted a loss and a year over year decline in revenue in their latest quarterly report. Office Depot's stock is at $3.43 per share as I write this. Maybe Manny isn't fully invested.

If Office Depot could sell the equivalent of just one additional $250 monitor per store, per day, they would have over $150,000,000 in extra revenue in one year's time. Or, we could all go give our business to Staples, Best Buy, Fry's, CDW, or any number of other places that sell the same or similar products.

Nifty ways to increase productivity now

A lot of business-related news lately has reminded me of one of my favorite South Park episodes, the one about the underpants gnomes. For the uninitiated, the underpants gnomes sneak into your room and steal your underpants. One night, the boys follow the gnomes to their underground lair to learn the secrets of corporate takeovers. The video below explains it all.

Translate this to how many companies are handling the current economic mess and you have a simple business plan:

I bet you have already skipped ahead and solved the puzzle, but just in case, step 2 is "people". A gut-wrenching, cost-cutting strategy won't make your company any stronger if your people don't execute. Your visionary, game-changing strategy won't make the company grow any faster if your people aren't carrying it out. Simply playing a recording that says "your call is really important to us" on your toll-free hotline doesn't mean your customers will feel their call is actually important to you.

The best way to get things moving is to engage your people in your strategy and ensure they are carrying it out. Here are five ideas you can use right now to make that happen.

Idea #1: Make a contest out of checking people's work. The best supervisors I've met make doing things right fun through contests and games. This approach can cause employees to welcome additional supervision and oversight since they know doing it right leads to positive results. Some enterprising employees may even bring their accomplishments to your attention!

Idea #2: Hold outsourced providers to the same service standards. Hotels, call centers, delivery services, and other companies often outsource business functions that have a high degree of customer contact. Outsourcing may save you money, but it will cost you customers if you don't hold these service providers to the same service standards you expect from your employees. Offer them training and resources to understand your service culture and check on them often.

Idea #3: Stand-up and listen. Many great supervisors use pre-shift meetings (often called "stand-ups" because they are so short) to keep the team focused and informed. Holding regular pre-shift meetings is a great idea, but you can also use this to gather and share valuable intelligence from the team. What is selling well and why? What problems are customers reporting that we can easily fix? Who has a success story they can share?

Idea #4: Don't miss an opportunity to upsell. Customers are pretty good at tuning out sales pitches, but you can train your team to upsell like a pro by arming them with a few simple questions they can ask their customers. A retail sales associate may ask, "Is there anything in particular you are looking for today?" to find out where to direct a customer. A hotel associate may ask, "Are you in town for business or pleasure?" to better understand which hotel amenities to recommend. Better yet, make it fun and create an up-selling contest!

Idea #5: Empower the team to do what's right. We all need a few guidelines, but make sure the guidelines you give your employees make sense. If there are exceptions to the rules, such as an opportunity to make a big sale or keep an important customer, let them know. At a minimum, train your employees to involve you if they think the rules need to be bent a little bit.

Poor service from the DMV (gasp!)

I had an experience today that was a lot like discovering Santa Claus has the same handwriting as my mother. Today, when I called the California's Department of Motor Vehicles toll-free 'customer service' number, I received poor service. Yes, you read correctly, I received poor customer service from the DMV. You may want to stop reading for a moment to verify the earth is still spinning on its axis.

The situation started when I received a 'delinquent renewal notice' for my auto registration. This struck me as odd since I had not received an initial renewal notice. The part that stood out was the $154 late fee, so I made the call. I should have known things were not going to go well when (after 10 minutes on hold) the woman who answered the phone identified herself as "Agent G-7".

That may be the first problem...
Customer service at its best is between two human beings. At its worst, "Agent G-7" works diligently at getting "Customer 1234" off the phone as quickly as possible because the call is viewed as a cost rather than an opportunity to delight a customer.

It gets better (the story, not my situation)...
Agent G-7 looked up my account and informed me a renewal notice had been mailed in May. It didn't matter to her that I never received it. I asked her what she suggested I do and she replied, "I don't know, we don't take payments at this number." I again asked her what she suggested I do to resolve what I felt was an unreasonable fee and she suggested I go down to my local DMV office. What she didn't add, but I will, is that the trip would have likely resulted in a wait of one hour or more only to speak with an equally unsympathetic person who would tell me, "You have to pay the fee."

I asked Agent G-7 if she had any other ideas and she replied, "We don't take payments at this number." Um, yeah G-7, I got that part. So what else should I try? "Well, you could try calling Sacramento." With that, she gave me a phone number and hustled me off the phone. You may be surprised to learn the phone number Agent G-7 gave me didn't go anywhere -- it just rang and rang.

Thank goodness my call is very important to the IVR
A little editorial: I don't like "interactive voice response" or "IVR" systems. Those are systems where a computerized voice tries to interact with you and asks you to say "Yes" for English, "Si" for Spanish, or "Account Balance" to learn your account balance. I don't like IVR for two reasons. First, it sends the message to me that I'm not important enough for these people to pay a real human being to talk to me. Second, IVR often doesn't work too well.

Case in point was the DMV's IVR system. I called it next to pay my bill, but it couldn't understand a word I said. It even lectured me on how to say my license plate number so it could understand me better. I followed it's instructions, but it still didn't understand me. I got so frustrated, I briefly thought of giving Agent G-7 a call back before I remembered they don't take payments at her number.

OK, DMV, you got me.
The end of the story is I paid the fee. Not happily, not proudly, but because I felt it was the best of my terrible options. As a California resident, I know it would be tough to take my vehicle registration elsewhere (without moving), but I do have a few suggestions for the DMV to save a few dollars.

1. Humanize your customer service representatives. Let people use their first names and give them the okay to empathize with their customers. Why? People like to be human, so your employee retention is likely to improve. People also like dealing with humans, so your average call time may go up a little, but your total number of calls will go down.
2. Ditch your IVR. It doesn't work and annoys customers.
3. Respond to the online customer service survey I completed. (The result on that one is still to be determined.)

Do you have a customer service success story?

Many of us, including myself, are guilty of focusing on what's wrong with customer service. Maybe that's because it's so easy to point out negative examples. At the same time, there are a lot of companies out there using outstanding service to stand apart from the competition, engage their customers, and make more money.

I'm collecting those success stories for the October edition of Service Sense, my email newsletter. If you, your department, or your organization has used customer service to make a difference in the marketplace, I'd like to hear about it. More specifically, I'm interested in hearing how a specific focus on service (employee training, strategic planning, process improvement, etc.) yielded great results. The best stories will be shared in the October Service Sense.

Please email me or post your comment to share a story.

Indifference Doesn't Pay

According to the American Society for Quality, 68% of customers who stop buying from a company do so because of employee indifference or the failure of employees to resolve a problem. It's a scary statistic that suggests many companies are missing out on a lot of revenue. Not because they don't have great products, or a killer strategy, or charismatic leaders, but because they don't have a clear and compelling vision for customer service that employees buy into.

Here's an example:

I like shopping at Macy's because they typically have reasonable prices and a good selection of the clothes I like. However, I often find myself wandering around the store trying to find what I came for. Most of the time, their sales people don't greet me when I walk into their department. They're usually too busy chatting with each other or walking in the other direction. The people don't have a customer-focused vision, so they focus on tasks, their co-workers, and themselves.

The last time I visited Macy's, I was surprised to encounter a very helpful sales person. (He must have been new!) He answered my questions and even made a few suggestions, including showing me a sport coat that was on sale for $150. I hadn't planned on buying a sport coat, but the sales person made a great recommendation, so I bought it.

Can you imagine what would happen if all the salespeople at Macy's had a vision to help customers make great purchases? If just 10 people a day spent $150 extra because a sales person spent a few minutes helping them, that one store would bring in more than $500,000 in additional revenue per year. This store has 3 floors and countless departments, so I'm pretty sure adding an additional $1,500 in revenue per day from simply helping people is a conservative estimate.

The Rising Cost of Recovery

A few months ago, I wrote a post about a service recovery related to my stay at the Sir Francis Drake Hotel in San Francisco. (Read the post here.) Well, the epilogue to that story is quite interesting and also a great reminder that service recovery becomes increasingly expensive the longer you let the problem continue.

To bring you up to speed, the short version of the story is I experienced some minor problems while staying at the hotel in May. A few days later, I filled out an online survey noting the good and bad aspects of my visit. Not long after I submitted the survey, the hotel's Front Office Manager called me to follow-up and promised to send me a certificate for a free night's stay as an apology for the poor service. Unfortunately, the certificate never arrived.

The Story Continues
A week or so ago I received a phone call from the Front Office Manager. "Mr. Toister," he said, "I understand you never received that certificate we promised you."

"Yes, that's true," I said.

"Well, I don't know what happened, maybe my assistant forgot to send it. I'll have my assistant send one out to you first thing next week."

I got off the phone and thought about the conversation. It was great to get the follow-up phone call, but the manager was deflecting ownership. The certificate would have been nice to receive in May, but now it was not enough to entice me to return. So, I called the manager back and laid it out for him. I told him I was planning to visit the area again later this year and stay for three nights. I was also meeting a friend, so I'd need two hotel rooms for three nights apiece. One free night wouldn't get me to stay there, so was there anything else he was willing to do?

The manager offered to comp one of the rooms for the three nights and give me a good rate on the other room. Yes, that was enough for me to make a reservation and give the Sir Francis Drake another try.

Cost Escalation
If you look carefully at this situation, you can see how recovery got increasingly expensive.

1. An apology. I was impressed the manager called me to follow-up on the survey and apologize for the poor service. That was enough to make me consider his hotel the next time I traveled to San Francisco.
2. A free room night. The offer of one free night was very generous and I was even more impressed. Had the certificate arrived in a timely fashion, it is likely I would have made a reservation at the hotel for my upcoming trip.
3. Three free room nights. Of course, the promised certificate never arrived, so the manager had to up the offer to three free room nights to get me to stay there.

The purpose of service recovery is to retain the business and maintain the organization's reputation. In this case, the cost of service recovery escalated from a simple phone call and an apology to three free nights. The lesson here is the faster you can recover, the less it is likely to cost you.

Job Applicants Are Customers Too

It's amazing how so many companies fall all over themselves to serve their paying clients but fall well short when it comes to serving less obvious customers like job applicants. Job applicants not only represent potential great hires, they may also be current or future customers. Companies can serve candidates well by following a few simple steps.

1. Make a good first impression. Go to an office where people are warm, friendly, and having fun and you may want to work there. On the other hand, an unpleasant atmosphere and unpleasant people can make your organization a lot less desirable.
2. Respect their time. I once went to an interview where the hiring manager made me wait for an hour before meeting with me. On top of that, she seemed put off when I explained I only had 30 minutes to meet rather than our agreed upon 60 since I had another appointment. Hiring managers may get busy with other things, but job candidates are often busy themselves and may even be sneaking in from another job.
3. Sell your company. Yes, candidates should tell you why they are so great, but you should do the same. Your company is much more likely to attract great people if interviews feel like a courtship and not an interrogation.
4. Follow up. OK, show of hands, how many of you have been promised a phone call at the end of an interview, only to never hear from the company again? Recruiters may not want to share unpleasant news or they simply don't have any news yet to give, but not following-up as promised makes your company look unfriendly and disorganized.
5. Be honest, but be tactful. If you interview 10 people for 1 job opening, 9 people will probably end up disappointed. That doesn't mean they deserve to be ignored or treated rudely. Be honest and tell them they weren't selected, but also tell them how much you appreciate their interest. In some cases, you may even know of another opening in your company or someone else that may be a good fit.

Flying the Angry Skies

Have you flown lately? Not that flying has been a picnic for sometime, but it seems to have gotten even worse. Sneaky fees, frequent delays, and surly airline workers are all conspiring to make us give Amtrak and Greyhound another look.

Failure Breeds Failure...

Lack of success can be contagious. Among the major carriers in the United States (American, United, US Air, Delta, and Continental), all posted large operating losses in the first quarter this year. Losing money doesn't feel good for employees and it will probably get worse. There are painful mergers, cut-backs, contract concessions, and the doom and gloom of an uncertain by probably negative future hanging over the employees at these airlines. Those are the lucky people. Employees at Aloha Airlines and ATA abruptly found out they didn't have jobs this past April. In short, there's nothing to be excited about.

Unfortunately, these employees are increasingly disengaged with their employers and their customers. On a recent cross-country trip, I encountered one rude employee after another. One gate agent was typing on her computer while I approached the counter so I waited patiently. She said, "Yes" in my general direction, so I held out my boarding pass that required a seat assignment. Without looking up she said, "Can I help you?" in an exasperated manner. "It's right in front of you," I said, "but I didn't want to interrupt you." "Oh, I can multi-task." Great, lucky me.

Not to be a fear monger, but I really hope the mechanics and pilots don't get too angry. This happened last week at United Airlines when a pilot reportedly became too upset to fly. Fortunately he was self-aware enough not to fly the plane anyway. Check out this bizarre story here.

Self-Reinforcing Circle

When the employees on the front lines are disengaged and providing poor service, the customers begin to get angry too. Angry travelers are a notoriously difficult, impatient, and potentially dangerous bunch. They also make it that much harder for airline employees to do their jobs. So, the airline employees get more and more frustrated and provide poorer and poorer service and the passengers get angrier and angrier. I witnessed this self-reinforcing circle time and time again throughout my travels over the past several months.

United Against, Well, United (et al)

The problem as I see it is the airlines are becoming their own worst enemies. They are making air travel less pleasant through rude employees, ticky-tack fees ($25 to check a bag, $5 for a snack pack, $2 additional to check a bag curbside), cancelling popular routes, and frequent whining about the high cost of oil. (Southwest hedged their bet on fuel prices awhile back and had an $88 million operating profit last quarter.) Even the loyalty programs breed less loyalty with fewer options, higher mileage requirements, more blackout dates, and expiring miles.

There's nothing here to root for. No passion behind the brand. And customer service ratings prove it. Epinions has the big five carriers at 3 out of 5 stars (Continental is 3.5 out of 5) and JD Power's rankings leave even more to be desired with United bringing up the rear with a 2 out of 5 rating. Yikes!

Yes, times are tough for the airlines, but what they ought to do is invite employees and passengers alike to be a part of the process. Do something to make travel easier, less stressful, even pleasurable. Create a price structure that allows you to make a fair profit, but do it in such a way that customers see the value of what they are paying for, rather than making passengers feel penalized. Stop the doom and gloom conversation with employees and invest in employee engagement initiatives.

We Need a Hero

Southwest Airlines still stands out in my mind as a positive example. Their employees are typically much more energized and friendly than other airlines. Their fares and flights are usable reasonable and convenient. They have even taken recent steps to address their Achilles heal, the boarding process, but implementing a system that virtually eliminates the dreaded cattle call. And, get this, they are still profitable.

Fumble, Recovery, and Fumble Again at the Sir Francis Drake

A well-executed service recovery can go a long to towards cementing a positive reputation in a customer's mind. On the other hand, a poorly-executed recovery can make a bad experience that much worse. My wife, Sally, and I recently experienced both after staying at the historic Sir Francis Drake Hotel in San Francisco. Here's a quick re-cap of what went right, what went wrong, and something just for fun.

The Stay
We decided to stay at the Sir Francis Drake hotel on a recent trip to San Francisco because of its proximity to Union Square, the fact it is a Kimpton hotel (we like Kimpton), and above all else the historic, but quirky image it projects. Overall, the stay was good and in line with our expectations, but we did experience a small problem at check in.

We arrived early, so our room wasn't yet ready. This wasn't a big deal, so went out for a bite to eat. We checked back after an hour and a half and were told the room would be ready in 20 minutes, so we continued waiting in the lobby. Another 45 minutes went by before we checked with the front desk agent again (who knew we were waiting) and she admitted she had forgotten about us. Finally, we got checked in, but then had to wait another 30 minutes for the bellman to bring our bags to the room (after being told they would be right up). None of this was major news, but it wasn't as high a level of service as we would expect.

The Recovery
Like many hotels, Kimpton sends out a survey to guests after they stay at one of its properties. I took a few moments to complete their survey, giving full credit for the exemplary service we received in several areas and also mentioning the small service problem at check in. To my surprise, the front desk manager called me a day or two later to ask for additional feedback. He was very polite, very apologetic, and offered to send me a certificate for a free night's stay to make amends for the problem. This was much more than I expected, so I was very happy. The manager's actions also caused Sally and I to rethink our decision to try another hotel the next time we visited the area.

The Fumble
The promised certificate never arrived. Maybe my neighbors received it instead, or maybe the mailman's dog ate it, or maybe the front desk manager never sent it. The reason it never arrived doesn't really matter at this point, and I don't plan on calling to ask for it. Yes, it would be nice to have a free night's stay, but the issue was great service (or lack of), not getting compensated. What is really too bad is Sally and I felt the front desk manager had worked so hard to recover our future business before this disappointing turn of events.

A Final Surprise
Did I mention 'quirky' was one of the reasons we decided to stay at the hotel in the first place? Our room was very small, but it did have a walk-in closet. In the closet was a set of leopard-print pajamas for sale. Simply open the plastic and enjoy, and a small charge of $30 will be added to your room bill. Nice.

Wine Tasting in Napa Valley - It's All About the Experience

My wife, Sally, and I recently made our annual trip to Napa Valley to do some wine tasting and stock up on wine. It dawned on me that we go back every year for the wine but also the experiences. There really is a lot to learn about service from these wineries! So, here's a quick summary of where we go, why we go, and what we can learn from it all.

Lodging

There are not a lot of major chain hotels in the Napa Valley area, so the way to go is a nice inn or B&B. We enjoy staying at the Napa River Inn in Napa. They've created a wonderful experience for their guests. A highlight is breakfast at the "Sweetie Pies" bakery, which is included in the room rate. They have two large community tables where you can often catch a hot tip from one of the locals that frequent the shop.

Wineries
We tend to stick with the smaller wineries unless we reserve a tour since you get a more intimate experience (and often better wine). The taste of wine is so subjective, so I'll refrain from commenting on quality (they were all good in their own right) but here are a few highlights of the experience.

Sterling. You get there via a gondola ride up the hillside to the winery and tasting room. The views of Napa Valley are awesome from this suspended cable car! Sally and I took a tour this time and had a wonderfully insightful and informative guide, Robert. Lessons learned: a great environment needs to be matched by great people!

Dutch Henry. This is about as informal as it gets. We did our tasting in a small office because they were bottling wine in their normal tasting venue, their barrel room. The lady doing our tasting was a lot of fun and drank wine along with us. Now that's being committed to your product! Lessons learned: breaking the ice and being less formal often creates great service situations and can overcome a lot of other deficiencies.

Cuivaison. It's a well-known secret that most wineries will pour wines not on their tasting list if you show an appropriate level of interest. The guy serving us did a great job of asking questions and learning our preferences, and he poured several "off the list" wines for us to try. (It worked quite well - we bought several!) Lessons learned: Listen to your customers before proposing a product or service! You'll sell more and they'll be even happier!

Frog's Leap. This winery is appointment-only, but they have a very cool tour. Mindy, our guide, took us through their gardens and wine making operation and told some interesting stories along the way. For example, the founders lived on an old frog farm and "liberated" the grapes for their first wine from Stag's Leap, thus the name of the winery. Lessons learned: Involving your customers in your story can help build passion and a deeper sense of brand-awareness.

PlumpJack. No time for tasting here, just a quick stop to buy a bottle of one of our favorite Cabernet Sauvignons. They were doing tastings for $10, but we just asked for a splash of the wine we bought, which we were offered on the house. A woman standing next to us noticed our bottle of wine had a screw cap and that launched also sorts of questions that probably deepened her experience too. Lessons learned: It pays to make your customers feel like a VIP, even if they only bring a small amount of business. And, it never hurts to have something unusual about your product or service that is a conversation starter.

Peju Province Winery. Most wineries have you saunter up to the tasting counter like you are in a bar, but Peju does it a bit differently. A greeter welcomes you in a lobby/gift shop area and asks you to wait a few minutes for the next tasting. They gathered about eight of us and led us to our own wine counter where a very knowledgeable and friendly gentleman led us through our tasting. We all received more attention, had a chance to ask more questions, and likely bought more wine than if we had to elbow our way in to get a tasting. Lessons learned: It costs more to have extra staff, but giving your customers the attention they deserve should pay off handsomely through higher average order values.

Hess Collection. This winery is another big producer, but they're off the beaten path, so they don't get extremely crowded. The lady who helped us was very friendly and knew a lot about their wine. She shared her knowledge, such as having us sample a few different wines side by side so we could taste the difference. That helped make it a very unique experience. Lessons learned: Make sure your people are able to educate customers on your products or services. This enhances your customers' understanding of what they're buying and can deepen their connection to your brand.

Customers should have names, not numbers

It has just dawned on me that I have not been addressed by name for two days. On the other hand, I've been many numbers. Here are just a few of my numbers:

• B55 (Southwest Airlines)
• "Next" & Space 340 (Hertz)
• Room 108 (Courtyard, by Marriott)
• Guest #33 (In-n-Out)

Here's an example at Hertz:

I arrived at the rental counter along with what seemed like every other person to ever rent a car at Hertz. In reality, there were 7 people in line ahead of me along with a customer at each of the four open counters. My wait was longer than expected and I calculated (nerdy, I know) that it took the 4 Hertz counter agents an average of 5 minutes per customer to rent a car. It was slightly more than 20 minutes before I made it to the counter.

"Hi, my name is Sheila!" said Sheila. "Hi Sheila, my name is Jeff." Ahhh, now someone will call me by name, I thought. Well, no. Apparently, Sheila just wanted me to know her name. She did try extra hard to sell me the refueling option and finally told me my car was in space 340.

These situations get me thinking. For example, I can't remember how many times I've had a situation like the one I experienced with Sheila and the person hasn't used my name. Then, when they look up my account, they suddenly exclaim, "How are you today, Mr. Toister?!" Uh, huh.

What the best do...

Service is about a connection between people. The name isn't necessary, but it sure helps and I'd much rather be a name than a number. Customer Service Reps that work for a client of mine overcome this by keeping a list of their most important customers' account numbers. When Mr. Smith calls, Mr. Smith never has to give his account number. The customer service rep looks it up for him, so the formality of a little number never has to get between them.

Forget the averages - service happens one person at a time

Most of you have heard about the rash of recent flight cancellations due to bankruptcy (Aloha Airlines, ATA, etc.), safety concerns (American Airlines, Delta, Southwest, etc.), and the usual weather problems experienced at this time of year. Thousands of travelers have been impacted, creating a major customer service headache for these airlines. I'll avoid the statistics for a moment and suggest that our impressions of service in these situations come down to two questions:

1. Was I directly impacted?
2. If the answer to question 1 is "Yes", how was I treated?

Example #1: American Airlines

I was directly impacted by weather delays when I flew American Airlines to Washington, D.C. a few weeks ago. I had to spend an extra night in D.C., so the answer to question #1 was "Yes, I was directly impacted." It's one thing to read about thousands of people you don't know being delayed or stranded, but it's another thing to be one of them!

Fortunately, I encountered a kind ticket agent, Thomas Lee, who gave me a hotel voucher and booked me on the first available flight home the next day. Mr. Lee said they weren't normally able to provide hotel vouchers due to weather delays, but weather hadn't yet been "officially" logged as the cause, so he was able to get me into a hotel at no charge. So, the answer to #2 was "I felt as though I was treated well."

Example #2: A customer service call center
Last week, I gave a talk on Employee Engagement to a San Diego networking group for call center professionals called CCPN. Preparing for the talk reminded me that an organization may have an average customer service rating of 85%, but that doesn't mean every agent satisfies 85% of their customers. More likely than not, some agents satisfy nearly 100% of their customers while other agents may satisfy less than 50%. Your personal impression of their customer service all depends on which agent you get when you call - the 100% person or the 50% person.

Here's an example from a small call center I managed several years ago. Our goal for quality assurance monitoring scores was 85%. Over one particular period we achieved that 85% goal. Pretty good, huh? Well, not really. When you looked at average monitoring scores by individual rep, you noticed some interesting trends (names have been changed to protect the innocent).

Our average was 85%, but I was really hoping customers would get Cara (100% average), Kristy (100% average), or even Betty (95% average). Conversely, I cringed every time Preston (70% average) and especially Steve (55% average) took a call. Preston and Steve were both given opportunities to improve and eventually asked to leave the organization, but that didn't change the impact they had on the customers they spoke with.


Lessons Learned
My call center experience taught me the value of having top performers and how necessary it was to improve or move performers who couldn't meet the minimally acceptable standards. I also suggest companies like American Airlines pay special attention to hiring and developing more people like Thomas Lee. I've flown American since then as a direct result of his service. I have two trips coming up and I'll probably fly American again thanks to him.

Taking a look through the customers' eyes

On a recent trip, a stop in the hotel gift shop reminded me that companies all too often fail to see things from a customer's perspective. This myopia can lead to frustration, poor service, and sometimes humorous consequences. Check out the picture below and note the third option down.




I'm sure they meant "assorted" but that's not how I read it in the store. You can only imagine a frustrated manager scratching his head and saying, "I don't understand it, these fruit stix just aren't selling!" A simple look at this sign through the eyes of a customer would help that manager spot the problem instantly.

Here are a few other examples (OK, pet-peeves) that are definitely not customer-focused!

• Entering an account or credit card number into an automated phone system so they can "better serve you" only to have to repeat it when a live person answers the phone.
• Cashiers who hand me my change with the coins on top of the bills, especially in the drive-through line. You have to be careful to catch the coins before they go flying!
• Airline workers and cashiers who ask to see my identification and then don't look at it. (I once showed a cashier my zoo pass with a picture of a gorilla on the front and he didn't even blink.)
• Employees who respond to a question that begins with "Where is..." by pointing in that thing's general direction rather than helping me find it.
• Valet parking attendants who leave my seat all the way back and my radio blasting on a station I don't listen to.

Starbuck's listens to me (and you) with Pike Place Roast

Starbucks launched a new roast today in response to customer feedback about their often burnt-tasting brews. I was an unwitting 'early adopter' when I stopped by a Starbucks this morning and tried a cup. To my great surprise, it was very good. As in, the best cup of Starbucks coffee I've tasted in a long time good.

Starbucks launched the new flavor after soliciting extensive customer research. They are also reconnecting, it seems, with the reason many people started going to Starbucks in the first place -- the taste of the coffee.

"We are returning to the very best elements of our heritage and bringing back the simple romance and excitement of coffee,” said Howard Schultz, chairman, president and ceo. You can read all about the Pike Place Roast here.

When being right is really wrong

Major League Baseball's opening day is fast approaching and hope springs eternal. You'd think this would mean they are gearing up the customer service at their online store, but at least one experience suggests this may not be true.

Full disclosure: this 'one experience' is represented by my wife, Sally. She represents 100% of the people I know who have recently made a purchase at http://www.mlb.com/, so according to my data 100% of the people that shop there have a bad experience. Yes, I know that's not statistically significant, but it's significant enough for me.

Disappointment!
It all started when Sally ordered two items, paid for overnight shipping, and then received one item a day later than expected. She responded to a survey she received from a 3rd party and shared her dissatisfaction:

completely dissatisfied with shipping. Paid a high shipping cost to have the items delivered overnight - while it did say 1-2 business days, I received 1 item in 3 business days, and another in 4 business days. I will be requesting a refund on shipping.

Proactive Service
Sally received a prompt email from http://www.mlb.com/ in response to her survey response. Very good move, but the email she received wasn't so helpful:

Dear Sally,

Thank you for contacting Customer Support at www.shop.mlb.com.

We have received your response through BizRate regarding our website and thank you for your feedback. Your opinion as a consumer is greatly appreciated and will be used to aid in the development of our online store to better serve our consumers.

We apologize for any misunderstanding. Our records show that the both packages shipped on 03/13/08 and that the one package that was shipped via UPS was received on 03/14/08. The package that shipped via DHL was also shipped on 03/13/08 and was delivered on 03/17/08, which was the 2nd business day. As indicated on our website, business days are considered Monday-Friday, excluding weekends and Federal Holidays. We hope this information is helpful.

Please let us know if there is anything else we can do for you, and thank you again for contacting Customer Support at www.shop.mlb.com.


Sincerely,

Magritha M.
Customer Service Representative
Customer Support at www.shop.mlb.com

What part of 'overnight' takes 2 days???
Dear Margritha,

When I confirmed the order and items said were in stock, I was expecting to receive by Friday, 3/14 at the latest, for overnight shipping. Per your email, you state that both packages shipped on 3/13. Overnight shipping would arrive by 3/14, for both packages.

I am requesting refund for overnight shipping of the one item not received by Friday, 3/14. This was the expectation, and what was paid for, and you have confirmed in your email the item was not shipped overnight.

Appreciate your cooperation,

Sally

Really MLB?! Really?
Dear Sally,

Thank you for contacting Customer Support at www.shop.mlb.com.

We again apologize for any misunderstanding. Our website indicates that if you select overnight shipping that you can expect the order to arrive within 1-2 full business days. Business days are Monday-Friday, excluding federal holidays within the United States. Both items were delivered within the stated timeframe, and we can unfortunately, not credit you back the shipping. To view the shipping information as indicated on our helpdesk please click on the link below, or copy and paste the link into the URL of your internet browser:

http://shop.mlb.com/helpdesk/index.jsp?display=ship&subdisplay=shipMetho
ds

We again thank you for your order. We apologize that we could not assist with your request.

Please let us know if there is anything else we can do for you, and thank you again for contacting Customer Support at www.shop.mlb.com.


Sincerely,

Magritha M

Read the fine print
If you read the fine print you'll discover Magritha at MLB is technically correct. And, I don't even doubt she's responding exactly as she's been instructed to respond. The problem here is them item was shipped via 'overnight' shipping and it took 2 business days to arrive. If you dig through the MLB website, you'll find their text explaining that their 'overnight' service is really 1 - 2 day service, but then why call it overnight? Undoubtedly because it saves MLB a few bucks on shipping costs, but it sure creates confusion and unfulfilled expectations.

Lessons Learned
Confusing policies are dumb for any business and it gets even worse when you stick to the fine print at all costs. A few bucks would have bought some good will and kept Sally satisfied. Saving that money cost MLB a lifetime of future purchases from Sally, from me, and anyone else we can convince not to shop there. Be careful of any policy that may seem cost-effective, but really drives customers away!

Minimum purchase requirements for credit cards

Do you know companies are not allowed to require a minimum purchase for Visa or MasterCard transactions? I learned this yesterday after a disappointing experience at my local produce market (conveniently called "Produce Market"). I drive by it nearly every day and often tell myself to go in there and load up on fresh fruits and vegetables. Yesterday, I finally got around to it and dropped in.

What I liked
They did indeed have a great selection of fresh produce and reasonable prices. The store had a straight-forward layout and was very easy to quickly navigate. I was feeling pretty smart as I browsed their selections since I had finally made the decision to do some shopping there.


A Heaping Dose of Surliness
Apparently, customers must accept a heaping dose of surliness in exchange for that fresh produce at low, low prices. The two employees I encountered were unfriendly and declined to say "Hello", "Good Morning", or offer any other form of commonly-accepted salutation, even after I said "Hello" to them.

What I did get was a scolding from the cashier who rang up my $7.98 sale. I handed him my credit card and he pointed to a sign that said "$15 Minimum Purchase Required for Credit Card Transactions". "I'll let you use your credit card this time, but please remember a $15 purchase is required to pay with a credit card in the future."


That Rule Is Against the Rules
My encounter at Produce Market left me a bit disappointed, but also curious about those minimum purchase requirements. These policies are very unfriendly to customers and I had heard they may actually be a violation of the merchant agreement with Visa and MasterCard. So, I looked it up and yes, these policies are a violation of the merchant agreement.

Visa
You can verify the rule for yourself on this page of their website.

MasterCard
They bury this information on page 2-22 of their merchant rules manual, but they do offer a handy complaint form you can use to zing your least-favorite non-compliant merchant.

The roof, the roof, the roof has been postponed...

A couple weeks ago I wrote about the difficulty I was having finding a roofer. By the end of the 'story' I settled on the company I call 'Roofer D' because he seemed to be moderately reliable. That was then...

Signs of Trouble

Roofer D emailed a contract to me shortly after I confirmed I wanted to move forward with his company. I signed the contract and emailed it back but then noticed a second email in my inbox. This email was asking for a 10% deposit to initiate the job, even though the contract stated the terms were full payment on completion. Perhaps this was a minor oversight, so I allowed Roofer D to revise the contract. The new contract included a 10% deposit, 50% upon delivery of materials and setting up the scaffolding, and the balance upon completion. I wasn't happy with these changing expectations, but I was eager to move forward so I signed.

Rain Delay

We set a start date for February 27, but there were heavy rains the week before, so I got a call from Roofer D on February 26 asking to postpone the job until March 5. I appreciated the call and I had told him beforehand that it wasn't a big emergency so I agreed to the new start date. Then, on February 27, I got another call from him, this time asking to extend the date until March 12. "OK," I said, "but this has to be the date." He agreed the date wouldn't change again.

Lessons Learned

I had low expectations going in, not having heard too many good stories about customer service from roofers. In this case, it's been all about simple expectations that haven't quite been met. I'll reserve judgement until the job is completed, but I wonder if Roofer D realizes the impact this job may have on future business. Consider the following ways I might promote and refer Roofer D or proclaim his ineptitude and poor business dealings, all dependant on how this story turns out.

• I do have a blog, and up to 3 people read it each and every week. I'm planning to name Roofer D upon completion of the job. One of you three people may have a roof of your own that needs help someday.
• There are all sorts of websites where you can provide feedback on local services like this, including Kudzu and ImproveNet.
• I have friends with roofs too. (For some reason, my friends aren't among the 3 people who read my blog. Ouch.) We often give each other referrals on these types of services.

What can we learn from BusinessWeek's service champs?

Not surprisingly, Alfred's Tailoring did not make BusinessWeek's latest list of their 'Top 50 Customer Service Champs'. To be fair, they didn't quite fit BusinessWeek's criteria, but I don't think they'd make the list even if they did.

My wife dropped off a suit last week for tailoring. She needed the suit no later than Saturday, so the tailor said the suit would be ready by noon if my wife paid cash up front. When my wife arrived on Saturday at 12:30, the suit wasn't ready. The response from the tailor was, "I've been really busy!" I guess we'll be too busy to go back.

BusinessWeek Top 50 Customer Service Champs
BusinessWeek has just come out with their list of top customer service companies. The list highlights a few organizations that are truly excellent while raising quite a few questions at the same time.

Dominant Industries
Three business categories account for more than 50% of the companies on the list. Auto manufacturers, hotels, and financial service companies captured 26 of the 50 spots. There were no tailors, though clothing retailers captured four places. See the entire list here.

Unanswered Questions
BusinessWeek's ranking system does raise a few questions. Part of their methodology was rating each company on 'people' and 'process'. Unfortunately, I couldn't find a real explanation for what 'people' or 'process' really means to them. If anyone could enlighten me, I'd be grateful.

Another question is how some of these companies truly made the Top 50 list. For example, BusinessWeek relied extensively on data provided by J.D. Power. Fairmont Hotels was ranked #3 on BusinessWeek's list, but only received a 3 out of 5 rating for overall satisfaction from J.D. Power. Huh?? By contrast, Ritz Carlton, #12 on the list, received a 5 out of 5 rating from J.D. Power. Several other companies on the Top 50 list received relatively poor 'people' ratings, such as B's and C's. Hardly the stuff of 'Customer Service Champions'.

Lessons Learned
These types of rankings are great discussion topics, but customers will ultimately decide who the champs are, and they will eventually vote with their wallets. The weighting of the list suggests that customers have high expectations for certain industries, so companies in those lines of work have to be constantly on their toes. My wife's recent experience also reminds me that the industries we don't expect much from (like tailors and dry cleaners) can go a long way by just being polite and responsive.

Passionate Customers

My recent posts about Starbucks gave me an opportunity to research what other people were saying. Not surprisingly, a lot of people are very passionate about what Starbucks is up to. A few bloggers have even started some very interesting conversations, such as Becky Carroll (Customers Rock!) and Jay Ehret (The Marketing Spot). Carroll and Ehret are collaborating on what they call "The Starbucks Project" to help "Howard get it right." (Howard Schultz is the CEO of Starbucks.)



This got me thinking - how nice would it be if we all had customers who were so passionate about our products and services they went to great lengths to give us feedback and help us get it right.

• I love Jimmy Dean sausage, but this guy takes it to the next level. Listen to his complaint call (careful, his language is a bit 'colorful').
• Fanpop.com is a fan club website with pages for many companies (including In-n-Out!).
• Fans, regular customers, and employees can all interact at Get Satisfaction. Check out the examples on the Timbuk2 page.
• Burger King even tried to create this sort of 'consumer enthusiasm' with their Whopper Freakout campaign.

What can we do about it?

Creating a passionate, self-motivated base of fanatical customers is both an art and a science. This could be a big discussion, but here are my top 3 strategies.

Strategy #1: Be consistent. I love In-N-Out and they rekindle that romance every time I visit, no matter which store I go to. Their service is always enthusasiatic and friendly and the product is always good. Very few companies can achieve this level of consistency.

Strategy #2: Resolve problems like a hero. This is the classic 'hero' opportunity. A customer experiences a problem and someone becomes a hero by swooping in to save the day. Kearny Mesa Acura in San Diego does a great job here. I've occasionally experienced a problem in the service department, but they've always made it right and then some.

Strategy #3: Overdeliver. The best strategy is to give customers more than they expect. The Prado Restaurant in San Diego is outstanding in this aspect. I can distinctly remember many times I've been there because they almost always incorporate an unexpected surprise. The ambience and food are both outstanding, but the service even surpasses both.

The roofer's cup runneth over (or maybe he just lost my number)

No offense to the hardworking roofers out there, but most of us don't expect a lot from you. All I really need is a little honesty, some decent craftsmanship, and I'd appreciate it if you showed up within that four-hour window we talked about. Plumbers, electricians, painters, and all manner of handymen should be in this conversation too. You all provide a valuable service, work hard for your money, and do things that I can't do for myself. At the same time, some of you are sure making it hard to do business together.

How hard is it to get a quote?!

I thought I had struck the motherload when I started searching for someone to put a new roof on my home. A cool website called Improvenet had project estimators and a simple form you could fill out to get quotes. A roofer literally called me to set an appointment within one minute of hitting the "submit" button, so I was pretty psyched.

Over the next day or so, I tracked down several different companies who were willing to come out and give me a quote. I booked their visits into my calendar so I could spend a few minutes with each person and waited for the quotes to come pooring in... Four weeks later, and I finallly have someone scheduled. Well, almost. At this point, I could probably start my own roofing company (that is, if I actually knew how to roof).

Roofer 'A'

The guy who called me immediately was first on the scene. Let's call him Roofer 'A'. When I answered the door, he handed me an envelope and said, "Everything is in here. I've been doing this for 30 years, and I think you'll find we're competitive." I followed him outside and he looked up at the roof and said, "Yeah, your ridgeline is going. It will be about $7400 to replace the roof." He started heading back to his car as I followed him trying to ask questions. "It's all in the envelope," he said.

Roofer 'B'

The next guy, Roofer 'B', sent a guy named John to do the estimate. Compared to Roofer 'A', I was really impressed with John. He got up on the roof and immediately told me I only needed to do some repairs, but didn't need a new roof. John took the time to show me the problem areas and answered my questions patiently. By the time he left, I was hoping the quote from Roofer 'B' was at least competitive. Unfortunately, 10 days and a couple messages went by before I heard back from Roofer 'B'. When he did call and leave a message, he still didn't provide a quote, "Just checking in - are you still in the market?" It took a little more back and forth before I finally got a quote, more than two weeks after the visit. The quote was only $1,650 and not very thorough, so something told me I'd be in for many unpleasant surprises if I hired Roofer 'B'.

Roofer 'C'

John from Roofer 'B' was finishing up right about the time Roofer 'C' was due to come by. I went back into the house and picked up my voice mail. One message was from Roofer 'C' saying he had come by earlier that day. I was a little bummed because I wanted to meet him in person, but it wasn't the end of the world. His quote was. Roofer 'C' proposed a complete tear-down with all sorts of extras, coming in at a whopping $8900! I traded voice messages with Roofer 'C' for a few days before getting him on the phone. "Why did you propose a complete new roof while another roofer said I just needed a few repairs?" After a bit of fumbling, Roofer 'C' said I would need a new roof in 4 to 6 years, so I might as well replace it now. We discussed it a bit more before Roofer 'C' relented and agreed to furnish a quote for just the work I needed. The quote was $3,900.

Roofer 'D'

Roofer 'D' was a referal from a friend. He was pleasant and professional on the phone, but he didn't send his estimator over as promised. Fortunately, I hadn't planned to meet this guy, so it didn't interrupt my day, but I was still disappointed. I called the guy back the next day and this time he sent out Pedro within a few hours. Like John from Roofer 'B', Pedro was friendly, patient, and professional. He agreed with John's assessment that I just needed some repairs, but not a new roof. I was hoping not to repeat the delays I experienced with Roofer 'B', so I called Roofer 'D' a few days after Pedro's visit to ask for the quote. I finally got it a day or so later and even received a prompt call back when I had a question. This quote was for $3,850.

Decisions, Decisions

The roof isn't done yet, but I have told Roofer 'D' I'd like to go with him. We spoke this morning and he told me he had a full week ahead, but would call me this afternoon to schedule the job. "It's not an emergency," I said. "Just call me when you say you're going to call me and let's get this on the calendar and I'll be happy." Roofer 'D' said he could do that, so I'm giving him the benefit of the doubt.

Lessons Learned

There are many businesses out there where we don't expect much in the way of service. If you work in one of those businesses, you can really stand out by simply being responsive and keeping your promises. If you can't serve your customers at a basic level, you just may be missing out on a lot of easy sales! (Yes, Roofer 'B', I'm talking to you!)

A Simple Definition of Customer Service

A lot of people have opinions on what makes customer service good, bad, or even outstanding. I prefer a straight-forward, customer-focused defintion.

1. Good service occurs when a customer's expectations are met.
2. Poor service occurs when the customer's expectations are not met.
3. Outstanding service occurs when the customer's expectations are exceeded.

Lessons Learned:

This defintion suggests the most important step in delivering outstanding service is to learn what your customers want. So go ahead, ask them!

Is Starbucks the next McDonald's?

Two weeks ago, I wrote a post about Starbucks trying to rediscover their customer through a reinvigorated 'Starbucks Experience'. The latest updates put Starbucks and McDonald's on a collision trajectory into the same market. It makes me wonder what the 'Starbucks Experience' will truly become.

Things have gotten a little strange at Starbucks in the past year or so as something that looks suspiciously like an Egg McMuffin began taking up precious space in their display cabinet. Last week, USA Today reported that Starbucks is test-marketing $1 cups of coffee with free refills in some of their Seattle stores. I haven't heard any announcements about Starbucks adding a play ground at selected locations, but you never know. Meanwhile, McDonald's recently announced plans to add coffee bars to nearly 14,000 stores in the U.S., so things are about to get really onfusing.

Here's a picture of my cup of coffee at Starbucks this morning. (I wish it was only a $1 with free refills!) My 'Starbucks Experience' was a little bland, but certainly not terrible.

• The tables in chairs in many stores are a bit worn and this store is no exception. They remind me a bit of my desk back in grade school.
• The employees working there were cordial and friendly, but there was nothing particularly special about there service. There just isn't a lot of time for chit-chat when the next person in line needs their double mocha latte!
• I brought some work with me and planned to lounge for awhile, but it just didn't feel like a good environment for that today.

Any business needs to decide who it will be to its customers and then operate as closely and consistently to that vision as possible. I'm not sure who Starbucks wants to be anymore. Are they a convenience? An indulgence? An experience? They certainly can't be everything to everyone, but its becoming increasingly unclear who they are. I just hope they figure it out soon, because there are four Starbucks locations within 10 minutes of my house.

Why I love In N Out... and my dentist

I'm pretty sure I paid for my dentist's vacation last year or perhaps the down payment on that nice car he drives. I had a lot of work done, but I also discovered a few interesting insights along the way. Here are the big ones:

• A dentist or doctor's office can be well-run
• In-N-Out is my favorite customer service example
• Good service can overcome a lot

Insight #1: A dentist or doctor's office can be well-run

I'm not sure why my dentist bothers subscribing to all those magazines in the waiting room. If you show up on time you don't wait. During my many visits in 2007 I always got in right away and got out by the time they said I'd be done. Respecting my time goes a long way in my book.

The people that work in the office were always cheerful and helpful. I've been to the dentist where the office manager came across as a used car salesperson, but Jessica, the office manager I dealt with, felt like a trusted advisor. She explained my options and even offered to help me get the best use of my dental insurance.

Of course, I was very pleased with Dr. Brumand. He did great work, was very careful, and always explained what he was doing before he did it. I couldn't find a website, but here's their information.

Insight #2: In-N-Out is my favorite customer service example

During one of my visits, Dr. Brumand asked me "Who provides the best service these days?" Without hesitation, I answered, "In-N-Out".

"Not Nordstrom?"

"No, definitely not Nordstrom. For me, In-N-Out is the best."

I answered the question easily, but I had to think a bit about my reasons why. Here are a few:

• I've always had a good experience at In-N-Out. Sometimes its been great, but its always been good. I've never had a good experience at Nordstrom. I may be unique, but the sales associates I encounter are generally rushed and uninterested.
• In-N-Out sticks to what they know and delivers a great product without fail. Nordstrom started as a shoe store, but I've never been able to buy a pair of shoes there. I wear a 10 4E shoe, so you'd think Nordstrom would be the perfect place since they carry so many sizes. Unfortunately for me, not the case. On the other hand, In-N-Out always has the size of cheeseburger I want. They'll even custom make one for me if its not part of their typical selection.
• The people at In-N-Out are friendly. Yes, there's a bit of a script involved, but the people I encounter are always cheerful. That's not been my experience at Nordstrom. Maybe you just need to be an elite customer. In-N-Out seems to like their customers just the same.

Insight #3: Good service can overcome a lot

Fortunately for Dr. Brumand, he had already built up a lot of good service karma with me the day the Novocain didn't quite take as expected. He'd drill for a few minutes and then I'd feel a sharp pain, so he'd stop and give me a little more Novocain. This continued for awhile until he told me he couldn't give me anymore. "You're just going to have to tough it out," he said.

Yikes! I'd be pretty angry if this was my first time there, but by then I was willing to give him the benefit of the doubt. Fortunately, he was able to finish without any additional pain. Of course, the kicker is my mouth got VERY numb about 15 minutes after I left his office.

A final thought...

I suggest a fact-finding mission to In-N-Out if you want your organization or department to be awesome at customer service. You may even need two or three visits, just because there are so many best practices to absorb. I'd suggest you do the same with my dentist's office, but I don't think they're well-equipped for group outings.

Service With a "Dash of Jilted Psycho"

Salespeople and customer service providers often make the cardinal mistake of focusing on their needs rather than their customers'. Poor service almost always results, though it comes in varying degrees from annoying to completely absurd to the latest entry, "Jilted Psycho".

First, a note on customer focus. The way a cashier hands a customer their change says a lot about their customer focus. If the coins are on top of the paper money, the cashier is "me-focused" since they scooped the coins out of the register till first and simply dumped everything in your hand. The cashier is likely customer-focused if he/she puts the coins in your palm first and then places the bills on top so the change doesn't go flying out of your hand. Check out this cool primer on how to make change (all cashiers should be taught this).

Jilted Psycho. This is an actual email exchange between an interested car buyer and the car salesman. The names have been changed, but everything is very real. See if you can spot the "me-focus" in this exchange.

Salesman's Email:

Good afternoon Steve,

I am a little confused. I thought you wanted to deal with me and you wished for a new Explorer, but I see you stopped in today and dealt with another salesmen Jim on an Expedition? Did I do something wrong? Do you wish to deal with Jim or someone else? Are you no longer interested in the Explorer? Expedition? Please advise.

Mike Lester

Customer's Reply:

Mike,

I stopped in, he saw me and offered to help, all I wanted to do at that point was test drive an Expedition. It wasn't about dealing with you or him, it was about just getting a test drive in to think about it some more. I hadn't done so before and thought I would just check it out. After the test drive and thinking about it, i still want to get anExplorer. If you want to help me that's great, i'd still like you to find the Explorer for me.

Just do yourself a favor dude, look at the e-mail you sent me. Not exactly the most professional thing I've ever seen. It's a bit intense, some pressuring, accusatory with a dash of jilted psycho mixed in. If I didn't want to work with you, this note would not be winning me back. Fortunately for you, i still want you to find an Explorer for me, let meknow when you have something.

Steve

Car Salesman's Reply:

Steve,

I would agree with you to some extent. I am glad and understand sort of needing the test drive, but just do me the favor and ask for me. I would like to take the time with my customers and other salesmen get bent when they are with someone else's customer. Not saying Jim is one of them. I can understand and agree to some extent a quick note that may offend a consumer, but that is was certainly not my intention. I feel comfortable dealing with you, so I had just asked quick questions, as I was also confused when I asked Jim if he was able to help you and he could not clear much up. Now he is under the impression you wish to find an Expedition from him. I can explain to him though. Now if I did not know you that much, I would agree with you my email was a bit harsh, not downright rude, but harsh. I just cut to the chase as I thought you would not appreciate the long banter (which I am embarking on currently). Anyway I am glad you were not offended. I would never wish upon that on anyone let alone yourself.

The only issue with going with an XLT is they offer tan or light greyinterior. To be honest it does not look black. The eddie bauers are tan interior. I overheard we have a black interior eddie bauer in dark cherry coming in. I have not seen this one yet and do wish to take alook at this set up. I do think that its gonna come in with a tan interior but black flooring and ceiling is my guess. I hope I am wrong and its all black though. That would be nice looking. Did you get the limited emailed Saturday morning? That was all black and a limited with desired options in 2008?

Thanks for your reply,

Mike Lester

Will Starbucks rediscover their customer?

Howard Schultz , the founder and chairman of Starbucks, has returned to head the company as CEO. The press releases make it sound like he's leading a crusade, and I hope he is. Sure, the company has been growing rapidly, with revenues increasing at least 20% a year over 10 years, steadily rising profits, and an expanding global presence, but there increasingly seems to be something missing.

Mr. Schultz's stated goal is to help deliver a superior "Starbucks Experience". Here's a company that's swimming in profit, has become one of the brands, and now they want to start a customer service revolution. There's many places to get the "big picture" story, but for me the little picture is more interesting and more personal.

Why do I go to Starbucks?
This is a great question many of us can ask ourselves. Or, why do we frequent any establishment or buy any product? Are we even consciously aware of the reasons and are our reasons rational?

My reasons for going to Starbucks have definitely changed over the years. At first, it was the great coffee. There soon appeared many far superior options, so then it became their outstanding service. For a long time, they had me on that one. I was a "regular" at a local Starbucks where they knew my name and knew my order.

Over the past few years that has changed a bit and now I go to Starbucks because its convenient and the habit is ingrained in my brain. But they definitely feel more corporate, and I definitely don't feel like a regular. I guess I should have seen the writing on the wall when they stopped displaying the daily horoscopes and a barista told me it was a "corporate" decision. We all know that corporate and astrology don't mix, and Starbucks was definitely feeling more corporate.

Where do I go now?
It's a fun exercise to re-think why you are loyal to a brand. You just may find, as I did, that there are better options out there. As a customer service professional, my first thought is service, so I now have five places I go for coffee instead of one. That may seem a lot more complicated, but it actually seems to have made things easier for me. Here are my coffee house favs:

• Best Local - The Living Room. There are a few of these, but mine is near San Diego State University. They have comfy couches and overstuffed tables, coffee is served in big mugs, they offer free wi-fi, and I'm pretty sure they have a policy that all employees must have at least one visible tattoo or piercing. Isn't that what a coffee house is supposed to be like?
• Best For Meetings - Coffee Bean & Tea Leaf. This growing chain feels like Starbucks used to feel. Their coffee is good, they have plenty of locations (at least in Southern California), their stores are comfortable, and the staff is friendly.
• Best for Lunch - Panera. Panera has great sandwiches and free wi-fi, so this is a great place for a working meeting or casual lunch. Oh, and their coffee is very good too.
• Best Coffee - It's a Grind. I love It's a Grind, especially their iced coffee. I really loved the one in downtown San Diego, but a few of their key people left, so we'll see if they can sustain the service.
• Because it's there - Starbucks. I'm not anti-Starbucks, and they are awfully convenient.

So, why do you choose a brand? Or, what do you go to Starbucks? Better yet, why do your customers choose you? And, are you giving them any reasons to reconsider?