Sharon Daniels . CEO . April 18 2013
Today’s business environment is one of heightened competition, and customer experiences are part of a complex matrix that determines customer loyalty. Customer experience can ultimately be an organization’s primary competitive advantage, if it is managed correctly. Exceptional customer service produces loyal customers who buy more, refer friends, resist special offers from competitors and forgive the occasional mistake. Our newest research report on customer experience sheds new light on the “seven sins” of customer experience – key missteps that make organizations stumble when it comes to customer interaction.
The study surveyed 5,500 consumers and conducted in-depth interviews with outstanding customer service employees in seven countries. Among its significant findings:
– Customers are sharing their rants and raves about their service experiences around the clock and around the globe. Almost 40% reported they posted complaints about a company or brand after a bad service experience.
– Negative experiences have a bottom-line impact. Half of those surveyed said they would defect to a competitor after only one bad service experience.
– Consumers give low ratings to customer service. Only 25% of survey respondents said that service employees “make me feel they are on my side.”
– Service employees’ interpersonal skills are what makes or breaks the customer experience. One third of survey respondents believe it’s more important to be “listened to and shown respect” than to have their issue resolved.
– Reinforcing the need for human contact, most survey respondents prefer communicating with service employees by telephone (43 percent) or personally (37 percent), compared with email (18 percent) or text (2 percent.) Though they’re quick to make complaints online, they want real-person interaction.
As the survey data indicates, the customer experience counts mightily in organizational performance. Recognizing this imperative, CEO Kevin Peters of Office Depot invites customers to a prototype store near company headquarters so they can help design a superior customer experience. Their input affects factors like the shelves on which products appear and even where employees stand as they stock the shelves.
These are the seven sins of customer experience:
1. Not Minding Your Metrics
Company leaders are failing to take full advantage of new tools that make it easier than ever to monitor customers’ experiences. The tools include a wide variety of CRM systems, voice-of-the-customer software, customer-interface technology and predictive analytics. Data on customer retention and the results of cross-selling by service reps can be especially valuable.
Obtain a comprehensive review of your customer’s opinions and actions through quantifiable metrics. Regularly survey them on key pints – whether they would recommend your company, what specifically is influencing their buying behavior, and what ideas they have for improving the customer experience.
Among the businesses that use highly sophisticated measurement frameworks is EMC, the IT storage cloud computing company. It identifies the aspects of the customer experience that have the biggest impact on loyalty. It then determines which ones require immediate changes, which to improve over time and which to promote as its strengths.
2. Underestimating the Power of Emotion
Even when the service provider can’t immediately fix the problem, customers can be satisfied if the employee connects with them on a human level. The service employee has to walk in the customers’ shoes.
Employees must listen actively so they can communicate sincere understanding, using a voice tone and/or body language that shows empathy with the customers’ emotions — even when the customer caused the problem. An angry customer may expect urgent concern, while a confused one may be satisfied simply with kindness. When it’s appropriate, an apology can work wonders and service employees shouldn’t hesitate to provide one.
3 Fumbling Defining Moments
Every customer interaction has defining moments that must be handled carefully. One of the first defining moments occurs when the customer is greeted, and it sets the tone for the entire interaction. A drive-through customer at a fast food outlet wants speedy service, as does the chain itself. KFC drive-through employees are required to greet the customer no more than five seconds after the customer reaches the intercom.
Another defining moment presents itself when the customer has a complaint. The Ritz-Carlton hotel chain, which prides itself on maintaining an excellent customer experience, allows every staff member, regardless of position, to spend as much as $2,000 to resolve a guest’s problem without seeking approval.
A customer who must return a product faces another defining moment. Customers often complain about return policies. Zappos, which has a 100% satisfaction guaranteed return policy, actually encourages customers to order several sizes of a clothing line and return what’s not wanted.
Another defining moment crops up when an employee answers a customer’s questions. The employee has to answer directly, without evasiveness or circumlocutions. Another is when asking questions. The employee has to clarify the customer’s concern without putting the customer on the defensive. Finally, the customer shouldn’t be put on hold for a prolonged period.
3. Employees on Autopilot
Service people must stay engaged. They should do it by asking a blend of open questions, which keep customers explaining, and closed questions, which help confirm facts and isolate the customer’s needs.
Employees should explain what happened in terms the customer understands. They should be clear about what they know and don’t know about the situation. They must avoid blaming anyone for the problem — the organization, another employee, and certainly not the customer.
Most importantly, they should provide the particular kind of service each customer needs. Geek Squad, which provides support for technology product users, trains its employees to understand that customers have radically different levels of knowledge about the products and to serve them accordingly.
4. Focusing on Features
Some well-meaning service providers, hoping to give their customers insights about the product, talk too much about its features rather than the customers’ problems. This can make the customers feel their concerns aren’t being addressed. This is no time to try to up-sell or cross- sell.
More than 40% of survey respondents worldwide said they get annoyed when an employee “talks to me about things other than the problem I am trying to resolve.” Customers dislike complex processes and generally want to be spared the details of internal activities and issues.
5. Getting Negative
It’s not what the employees say but how they say it that leaves a lasting impression on the customer. The interaction must be positive throughout its duration. Words like “can’t” or “won’t” can quickly send the conversation spiraling downward. It would be wise to give service employees lists of words to use and words to avoid as they communicate with customers. Verint Systems, a consulting and research firm, identifies some of the words and phrases that can antagonize customers. They include “you people,” “let me speak,” and “you promised.”
6. Escalating Anger
Angry customers sometimes express their feelings by verbally assaulting service providers. Employees must avoid responding with anger. Help them understand that customers aren’t attacking them personally. Teach them how to ease tension and clear a path to address the customer’s problems.
Customer loyalty is built one successful interaction at a time. Customer-facing associates are likely the most critical link between the customer and your brand. Indifferent or unhappy buyers among your customer base can be converted into brand promoters by taking a holistic view of the customer’s experience and determining how employee skills and behaviors fit into it.