Monday, June 29, 2009

Legendary customer service comes from Company DNA and not from a program

Matt Heinz posted a blog entry which is spot-on in my view.


Going the extra mile for customers is a hallmark of great brands worldwide. The Ritz Carlton has become famous for it. More recently, so has Zappos.com.

Last week, Hyatt Hotels announced they'd really like to be known for doing extraordinary things for their customers as well. CEO Mark Hoplamazian announced a program called "random acts of generosity", in which the hotel chain will randomly pick up the tab for various amenities and services during your stay.

The concept is good, but Hyatt's trying a bit too hard. And it probably won't work.

Why is the Ritz Carlton known worldwide for exceptional, above-and-beyond service? Because it's core to their brand DNA, it's something they practice daily with every single employee, and it's something they've been doing for years.

Zappos.com has less of a history, but is equally committed to an organization-wide customer focus. Read anything from their CEO (or even their employees) and it's clear this is not a random or new initiative. It's just how they do business.

These are enviable positions, but they didn't come easy. They were earned.

Hyatt's not there. This program, ironically, could work the opposite of how they intended. Say you're sitting at a Hyatt bar, and the guy next to you has his tab picked up by the hotel as part of the program. You, however, are still paying. How does that make you feel? What are you going to tell your friends?

Even the guy who had his tab picked up can't guarantee his friends the same service when they next visit a Hyatt.

Stay at the Ritz, or buy shoes from Zappos, and the same high bar for customer service applies to everyone.

Source: Matt on Marketing



Customer service that delights starts with employee engagement

Employees: The Direct Route to Customers' Hearts
If you want your workers to delight customers, employee engagement is only the beginning .





We have all heard the advice. Companies that want to thrive in the recession and emerge stronger at its conclusion need to devote leadership time and resources to developing and implementing a growth plan. New products, sharper execution, better marketing and skills development are a must, but forgetting how much of an influence frontline staff has on customer satisfaction and retention is a key piece of the puzzle.


The link between employee engagement and business outcomes has been well established: employees that are more engaged in their work and with their companies are more likely to stay, more likely to recommend the company and its products, and more likely to go the extra mile to get the job done. But employees can also be a window to customers, and more importantly, a barometer for their satisfaction with your company's products and services.

Research involving more than 30,000 customer service employees conducted earlier this year by the Corporate Executive Board indicates that there is a close connection between employees' work experience and customer opinions. Departments where employees reported they had the authority to take actions to meet customer needs, make decisions on their own to improve quality, and respond to problems without waiting for approval had the highest levels of customer satisfaction.

The study also discovered that even a small change in employees' ability to get the job done for customers can yield big dividends. Improving the percentage of employees who reported they had the ability to easily correct customers' problems by just 5 percentage points yielded a 10% increase in customer satisfaction. Satisfied customers buy more of your products and services and recommend your organization to others. In fact, the relationships between employee and customer viewpoints were so strong that employee opinions about their ability to serve customers could be used as a bellwether for client concerns.

There is no substitute for direct feedback from customers, but it is clearly worth listening to what employees have to say about the customer experience. Using employee inputs to revamp processes, tools, and decision and authority rights can greatly enhance the customer experience, and thus better positioning your company for growth and long-term success.


Source: Blog entry by
Corporate Executive Board —What the Best Companies Do™
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