Tuesday, August 31, 2010
Friday, July 30, 2010
THE THREE A’s OF CUSTOMER EXPECTATIONS MANAGEMENT
The frequent changes in the educational system in this country can sometimes leave one very confused. The apparent misunderstanding in the system makes one wonder why the old system was scrapped in the first place. Why was the system not tweaked to suit the realities of modern times? Was it necessary to have thrown it all away? I am told the old system was a relic of colonialism and that is why it had to go. Who am I to argue against that? Anyway, I miss the good old days of the O’s and ‘A’s. I reminisced on the days of the much-feared pink papers. Writing the GCE A’ Level was war, at least for some of us. I am sure there were some folks who just waltzed through those exams.
I wonder how the early folks wrote A’ Level Ad Maths without calculators and still managed to come out with a chain of A’s because I wrote mine with a huge CASIO by my side and I still struggled. In those days, when you hear of a fellow who had had three or four ‘A’s, you looked at that person twice. We held such people in such high esteem. I happened to have written my GCE A’Levels as part of the last batch of the “old school” and never made 3 ‘A’s. I would not lie about that. Scoring ‘A’s, in any, or all, of the three electives and General Paper, was no easy feat. Mnay were those who had to go for 2nd and 3rd World Wars. Some even earned the nickname ‘Addo John Sulley’ after the infamous name used as an example for how the exams forms were to be correctly filled. Those were interesting times.
Recently I came up with another form of A’s-this time in an ‘examination’ for business on customer care. Businesses condition the minds of their customers, either directly or indirectly, as to what to expect from their products or services. I have found out that there are three A-factors that firms used in affecting customer expectations. A business that intends to win the loyalty of its customers must be conscious of these factors. Just like me, many businesses MIGHT also find it very difficult to score ‘A’s in all three A-factors.
Advertising
Advertising is one of the most direct means businesses use in conditioning the minds of their customers. Through advertising, firms tell us what to expect of them. However, in creating those expectations in the customer, it is essential that a line is drawn between customer expectations and actual business performance. The firm must know what it can actually do and what it tells its customers to expect.
The advertising message must ensure that expectations are not too high that performance falls way below the expectations, while at the same time raising expectations high enough to entice customers to be interested in the company’s offering. It seems this is where some of the firms in this country fall short. They overpromise and under-deliver. MTN’s “Everywhere you Go!” slogan always amuses me, especially in the light of the many complaints from patrons about the “out of coverage area” phenomenon. I have been trying to get a broadband Internet access from Vodafone in my house for sometime now. It is taking so much of my time that I wonder if that is not a reflection of the real meaning behind their “It’s Your Time” tag line. Maybe it is really their time not mine. I am eagerly waiting for GLO to begin operations so that I can see if I can really “Rule My World”!
I know of a microfinance company around Kokomlemle that claims they can give a loan within 30 minutes. That is a message I wish they had not put out there. It is not the impossibility of the claim that worries me. Having spent a number of years in banking, I am fully aware that a loan can be disbursed within thirty minutes; that is, if all conditions are met. What I have a problem with, however, is whether they can do this for every single client every single time.
Just this past Tuesday, I was a gentleman who had gone to that particular company for a loan. I am sure he was expecting the money within 30 minutes but it never happened, even though as far as he was concerned he had met all obligations. I am sure we could argue that the gentleman might not have provided the necessary documents to merit the loan in 30 minutes, but that is not the point. The customer’s perception is very important. If customers find out that a company is unable to meet claims that it has made, the company is worse off, in the mind of the customer, than if it had not made those claims at all.
Even the medium used in advertising has a way of psyching patrons up about the product-service offering. One of the findings of a research I did for my second degree on billboard advertising was that many Ghanaians believe billboards are a very expensive advertising medium. Therefore, it is assumed that products (or services) advertised on billboards must really be good. This heightens the expectations of customers for that brand. I find it interesting that one bank uses a number of billboards to advertise their brand while customers have to beg for pay-in slips.
Ambience
Research has revealed that elements of a business’s location, such as music, lighting and aroma and decor have a profound influence on customer mood, satisfaction and expectations. At the point of purchase, the atmospherics matter a lot. The ambience created can elevate the expectations of customers. Readers will recall from last week’s piece about my encounter with the waakye seller that I was fooled by the atmospherics. The ambience around the woman’s booth worked my taste buds into a state of high expectation. I believe some good restaurants in this town are doing well with their ambience. The cool music at the background, arousing aroma and well-dressed attendants increases the expectations of patrons.
Even the dressing of company staff has an effect on the expectations of patrons. I doubt the professionalism certain private security companies claim just by the looks of their officers. How do you convince a client that the scruffy-looking gentleman will be able to keep her home or office safe face if he cannot even take time to dress decent?
Attitudes
We are judged by the friends we keep; companies are judged by the personnel they keep. If sales and customer service reps are professional in their interactions with customers, the expectation is that the product-service offering must be good. Whenever I have to go to the Ministries for business, I lower my expectations just because of the attitudes of the people there. This is because I have experienced so much unprofessionalism at those offices that my expectations are always lowered.
Attitudes can be very infectious; therefore when sales people or customer care reps do not possess the right attitudes, customer expectations are not only lowered but purchase of the offering might not occur at all. Salespeople who sell as if they have being forced to do so by their bosses end up lowering customer expectations of the offering. Many times these wrong attitudes affect the customer who eventually declines the sales offer. It is interesting when these same mediocre salespeople come back to report that people are not buying these days.
Great companies are very careful about the expectations they create. Every advertising message is carefully crafted. Every single item that forms part of the atmospherics of the firm is carefully selected. Every single employee is made aware of his or her role in sending the right corporate message out. When such companies make a claim they ensure that they put their resources behind the claim and ensure that the expectations of customers are, in the very least, met.
Mediocre companies, on the other hand, have a habit of mismanaging customer expectations. They say things they know they cannot do. They spend a lot of money and time on advertising and neglect the atmospherics in the offices. As far as I am concerned, the worst of these companies are those that try to manipulate customer expectations by the use of ambiguous statements. The most popular these days is “Terms and conditions apply.” What does that statement mean? Is it a ploy to cheat customers, as many people I have spoken to believe? I believe I should talk to some legal brains over that statement.
The product or service a company offers is important but a good product (or service) is not enough to ensure business success. As we have seen, there is more to satisfying customers. Companies must ensure that they create the right expectations or else they will end up scoring three F’s instead of three A’s.
I wonder how the early folks wrote A’ Level Ad Maths without calculators and still managed to come out with a chain of A’s because I wrote mine with a huge CASIO by my side and I still struggled. In those days, when you hear of a fellow who had had three or four ‘A’s, you looked at that person twice. We held such people in such high esteem. I happened to have written my GCE A’Levels as part of the last batch of the “old school” and never made 3 ‘A’s. I would not lie about that. Scoring ‘A’s, in any, or all, of the three electives and General Paper, was no easy feat. Mnay were those who had to go for 2nd and 3rd World Wars. Some even earned the nickname ‘Addo John Sulley’ after the infamous name used as an example for how the exams forms were to be correctly filled. Those were interesting times.
Recently I came up with another form of A’s-this time in an ‘examination’ for business on customer care. Businesses condition the minds of their customers, either directly or indirectly, as to what to expect from their products or services. I have found out that there are three A-factors that firms used in affecting customer expectations. A business that intends to win the loyalty of its customers must be conscious of these factors. Just like me, many businesses MIGHT also find it very difficult to score ‘A’s in all three A-factors.
Advertising
Advertising is one of the most direct means businesses use in conditioning the minds of their customers. Through advertising, firms tell us what to expect of them. However, in creating those expectations in the customer, it is essential that a line is drawn between customer expectations and actual business performance. The firm must know what it can actually do and what it tells its customers to expect.
The advertising message must ensure that expectations are not too high that performance falls way below the expectations, while at the same time raising expectations high enough to entice customers to be interested in the company’s offering. It seems this is where some of the firms in this country fall short. They overpromise and under-deliver. MTN’s “Everywhere you Go!” slogan always amuses me, especially in the light of the many complaints from patrons about the “out of coverage area” phenomenon. I have been trying to get a broadband Internet access from Vodafone in my house for sometime now. It is taking so much of my time that I wonder if that is not a reflection of the real meaning behind their “It’s Your Time” tag line. Maybe it is really their time not mine. I am eagerly waiting for GLO to begin operations so that I can see if I can really “Rule My World”!
I know of a microfinance company around Kokomlemle that claims they can give a loan within 30 minutes. That is a message I wish they had not put out there. It is not the impossibility of the claim that worries me. Having spent a number of years in banking, I am fully aware that a loan can be disbursed within thirty minutes; that is, if all conditions are met. What I have a problem with, however, is whether they can do this for every single client every single time.
Just this past Tuesday, I was a gentleman who had gone to that particular company for a loan. I am sure he was expecting the money within 30 minutes but it never happened, even though as far as he was concerned he had met all obligations. I am sure we could argue that the gentleman might not have provided the necessary documents to merit the loan in 30 minutes, but that is not the point. The customer’s perception is very important. If customers find out that a company is unable to meet claims that it has made, the company is worse off, in the mind of the customer, than if it had not made those claims at all.
Even the medium used in advertising has a way of psyching patrons up about the product-service offering. One of the findings of a research I did for my second degree on billboard advertising was that many Ghanaians believe billboards are a very expensive advertising medium. Therefore, it is assumed that products (or services) advertised on billboards must really be good. This heightens the expectations of customers for that brand. I find it interesting that one bank uses a number of billboards to advertise their brand while customers have to beg for pay-in slips.
Ambience
Research has revealed that elements of a business’s location, such as music, lighting and aroma and decor have a profound influence on customer mood, satisfaction and expectations. At the point of purchase, the atmospherics matter a lot. The ambience created can elevate the expectations of customers. Readers will recall from last week’s piece about my encounter with the waakye seller that I was fooled by the atmospherics. The ambience around the woman’s booth worked my taste buds into a state of high expectation. I believe some good restaurants in this town are doing well with their ambience. The cool music at the background, arousing aroma and well-dressed attendants increases the expectations of patrons.
Even the dressing of company staff has an effect on the expectations of patrons. I doubt the professionalism certain private security companies claim just by the looks of their officers. How do you convince a client that the scruffy-looking gentleman will be able to keep her home or office safe face if he cannot even take time to dress decent?
Attitudes
We are judged by the friends we keep; companies are judged by the personnel they keep. If sales and customer service reps are professional in their interactions with customers, the expectation is that the product-service offering must be good. Whenever I have to go to the Ministries for business, I lower my expectations just because of the attitudes of the people there. This is because I have experienced so much unprofessionalism at those offices that my expectations are always lowered.
Attitudes can be very infectious; therefore when sales people or customer care reps do not possess the right attitudes, customer expectations are not only lowered but purchase of the offering might not occur at all. Salespeople who sell as if they have being forced to do so by their bosses end up lowering customer expectations of the offering. Many times these wrong attitudes affect the customer who eventually declines the sales offer. It is interesting when these same mediocre salespeople come back to report that people are not buying these days.
Great companies are very careful about the expectations they create. Every advertising message is carefully crafted. Every single item that forms part of the atmospherics of the firm is carefully selected. Every single employee is made aware of his or her role in sending the right corporate message out. When such companies make a claim they ensure that they put their resources behind the claim and ensure that the expectations of customers are, in the very least, met.
Mediocre companies, on the other hand, have a habit of mismanaging customer expectations. They say things they know they cannot do. They spend a lot of money and time on advertising and neglect the atmospherics in the offices. As far as I am concerned, the worst of these companies are those that try to manipulate customer expectations by the use of ambiguous statements. The most popular these days is “Terms and conditions apply.” What does that statement mean? Is it a ploy to cheat customers, as many people I have spoken to believe? I believe I should talk to some legal brains over that statement.
The product or service a company offers is important but a good product (or service) is not enough to ensure business success. As we have seen, there is more to satisfying customers. Companies must ensure that they create the right expectations or else they will end up scoring three F’s instead of three A’s.
Tuesday, July 27, 2010
THE CUSTOMER SATISFACTION EQUATION:
Improving performance or lowering expectations?
By J. N. Halm
Customer Satisfaction = Performance
Expectations
A few days ago, I decided to have ‘waakye’ for brunch-I believe many readers would appreciate that feeling, especially those who had, at one time or the other, caught the ‘kobolo’ bug. That feeling for some good old ‘waakye’ grabs you so tightly that you have no choice but to hit the road in search of that irresistible rice and beans combination. Pretty soon after I set out, I came across a 21st century ‘waakye’ seller-you know, the kind who has the food in a huge food flask inside a glass cage with everything so neatly arranged. I got attracted immediately and my expectations shot to a high. This must be good, I thought to myself.
I bought as much as I thought would satisfy my hunger and went back home to feast. However, I was bitterly disappointed with the ‘performance’ of the food. I believe it had to do with the ‘pepper’ or sauce. One thing I know is that ‘waakye’ is all about the pepper. This woman’s pepper just did not meet the standard of those I had enjoyed growing up in the suburb of Dansoman. I must add that the we’le’ or tendered cowhide was also quite disappointing. (Readers can think the worse of me at this time, but it’s all good!). In short, my expectations had not been met and I was a very dissatisfied customer. I have no plans of paying that woman any visits in the future.
Customer Satisfaction
Many business leaders would agree that knowing what keeps customers satisfied and doing that very thing always is what business success is all about. Good managers realise that a customer, who makes a purchase or patronises a service, comes into that transaction with a certain expectation. A customer will never be satisfied if the performance of the product or service does not meet that expectation. If the performance of the product-service offering equals the customer’s expectations, that customer walks away satisfied, in the very least. When the product’s (or service’s) performance exceeds expectations, customers become very happy. This is a basic understanding that I am sure that every business person knows.
What this relationship indicates is that to keep customers very satisfied, a business must do one of three things: It must either work to make certain that the performance of its offering (products and/or services) exceed customers’ expectations. The business can also work at lowering the expectations of customers about its offering so that customers are satisfied with the best that the business can offer. Lastly, the business can work at lowering expectations whilst at the same time improving its performance.
Lowering Customer Expectations
Of all the three options, I believe the easiest one for businesses is the lowering of customers’ expectations. I am well aware of the demerits of this strategy, especially in the face of stiff competition but I am convinced that it is better to leave customers satisfied than dissatisfied. If in attempt to match up to the competition you create high expectations about your offering, you end up putting yourself in a position where you might not meet those expectations thereby guaranteeing massive customer dissatisfaction.
In attempting to win my custom, the ‘waakye’ seller should have rather resorted to lowering my expectations rather than increasing it. I went into the transaction expecting something out of this world of this world but I never had that. If I had been expecting something ‘normal’ and had received something ‘normal’ I would not have complained. Anyway, I cannot blame her too much-she was acting with the knowledge available to her. How does a customer go about lowering expectations?
The 7 Elements of Expectations
The first step in lowering customer expectations is in understanding how those expectations are formed in the first place. When it comes to the causes of customer expectations, experts agree that there are seven main elements that create and modify expectations.
• Past Experience
“Once bitten, twice shy” so goes the old saying. When it comes to what to expect from a product or service, a customers’ past experience is, almost always, the best teacher. My past experience with some wonderful ‘waakye’ in the past had conditioned my mind to expect a certain standard. Participants at the ExSellers International seminars all have certain expectations when attending new programmes and so we make conscious efforts to ensure that we always surpass the standards set for all programmes. This is a challenge to all businesses throughout the world-having to consistently meet and surpass old standards.
• The firm
The information I got from the set up of the ‘waakye’ seller also fuelled my expectations. If she had taken all that time to put up such a pleasant, eye-catching display, then the food had to be very good, or so I thought. That experience even made me believe that the not-too-clean nature of the ‘waakye’ I used to enjoy had something to do with the wonderful taste. However, that is another matter all together.
The kind of advertising a firm puts out has a huge effect on the expectations of patrons. I am planning to take on the issue of advertising and customer service in a separate article and so would not want to go into details this week. It is however important to know that, customers’ expectations are formed, to a large extent, by the kind of advertising the firm does.
• Other customers
I am sure the absence of a long queue at that ‘waakye’ seller’s booth should have given me a signal that all was not well. Better still, I should have even asked around before making the purchase. Feedback from other customers is another way customers form their expectations about products and services. Customers do not mind so much about the consequences of inconsequential purchases such as my ‘waakye’ but when it comes to important purchasing decision such as buying a house or a car, customers make it a point to “ask around.”
• The Competition
Customers are ‘comparers’, like it or not. We are all in the habit of comparing what the competition is offering before making a purchasing decision. Businesses know that and that is why they are trying to outdo each other on the market just to get our attention. The intensity of the competition in these times is enough proof of this fact. The most interesting industry to study this phenomenon is the telecommunications industry. One network brings out a novel service one day and the very next day, another network pops up with the same service or better still, an upgrade of that service. At this point in time, I do not envy whoever is in charge of introducing GLO into the Ghanaian market. Our expectations are so high that I doubt if they would ever be able to meet them.
The banking sector is also another industry experiencing this intensity of competition. One bank comes out with an innovative product and pretty soon, all others follow suit. The actions of the competition have a nice way of shaping the expectations of customers before they even try the product. I can only imagine what a new entrant into the banking sector would have to do to sway Ghanaians like Standard Trust (now UBA) did a couple of years ago.
• The Media
The power of the media to shape minds is one that has been studied for centuries. Theories and principles abound on the potency of the media to shape the minds of people. The story of contaminated flour being used in the production of certain of brand of biscuits by ace investigative journalist, Anas Aremeyaw Anas had a tremhttp://www.blogger.com/img/blank.gifendous effect on the expectations of consumers of that brand of biscuit. I am also of the opinion that some of the causes of the demise of the national airline had to do with the image the media had created about the airline. We all knew what to expect from Ghana Airways just by listening to the news.
• Regulators
The actions of regulators also have an effect on the expectations of customers. I find the insurance industry an interesting case study for this phenomenon. One day, we hear one company is AA rated and pretty soon, others were running for their AAs and flaunting them in the faces of those who did not have them.
• Consumer Groups
In Ghana, it seems the Consumer Protection Agency is yet to attain its full potential. I am sure that very soon Ghanaians would begin to recognise the importance of that very important body to consumerism in this country. I wonder how many people turned off their mobile phones in protest as urged by the CPA last time round.
• Newer technology
A customer who has had the privilege of experiencing a certain technology in one product will expect something akin to that in a similar product. These days it is expected that all new mobile phones should have at least some basic technologies. With the advent of the phones from TECNO, rLG and G-TIDE, it seems all phones should accommodate double SIM cards and have, in the very least, some FM radio functions.
I believe with this knowledge of what informs a customer’s expectations, business people will manage customer expectations better so as not to leave their cherished customers in a state of dissatisfaction. The aim of all businesses should be that every customer that enters into any interaction or transaction with the business must, in the very least, leave satisfied. Customer satisfaction is the key to long-term business success; anything other than that is definitely out of the equation.
Improving performance or lowering expectations?
By J. N. Halm
Customer Satisfaction = Performance
Expectations
A few days ago, I decided to have ‘waakye’ for brunch-I believe many readers would appreciate that feeling, especially those who had, at one time or the other, caught the ‘kobolo’ bug. That feeling for some good old ‘waakye’ grabs you so tightly that you have no choice but to hit the road in search of that irresistible rice and beans combination. Pretty soon after I set out, I came across a 21st century ‘waakye’ seller-you know, the kind who has the food in a huge food flask inside a glass cage with everything so neatly arranged. I got attracted immediately and my expectations shot to a high. This must be good, I thought to myself.
I bought as much as I thought would satisfy my hunger and went back home to feast. However, I was bitterly disappointed with the ‘performance’ of the food. I believe it had to do with the ‘pepper’ or sauce. One thing I know is that ‘waakye’ is all about the pepper. This woman’s pepper just did not meet the standard of those I had enjoyed growing up in the suburb of Dansoman. I must add that the we’le’ or tendered cowhide was also quite disappointing. (Readers can think the worse of me at this time, but it’s all good!). In short, my expectations had not been met and I was a very dissatisfied customer. I have no plans of paying that woman any visits in the future.
Customer Satisfaction
Many business leaders would agree that knowing what keeps customers satisfied and doing that very thing always is what business success is all about. Good managers realise that a customer, who makes a purchase or patronises a service, comes into that transaction with a certain expectation. A customer will never be satisfied if the performance of the product or service does not meet that expectation. If the performance of the product-service offering equals the customer’s expectations, that customer walks away satisfied, in the very least. When the product’s (or service’s) performance exceeds expectations, customers become very happy. This is a basic understanding that I am sure that every business person knows.
What this relationship indicates is that to keep customers very satisfied, a business must do one of three things: It must either work to make certain that the performance of its offering (products and/or services) exceed customers’ expectations. The business can also work at lowering the expectations of customers about its offering so that customers are satisfied with the best that the business can offer. Lastly, the business can work at lowering expectations whilst at the same time improving its performance.
Lowering Customer Expectations
Of all the three options, I believe the easiest one for businesses is the lowering of customers’ expectations. I am well aware of the demerits of this strategy, especially in the face of stiff competition but I am convinced that it is better to leave customers satisfied than dissatisfied. If in attempt to match up to the competition you create high expectations about your offering, you end up putting yourself in a position where you might not meet those expectations thereby guaranteeing massive customer dissatisfaction.
In attempting to win my custom, the ‘waakye’ seller should have rather resorted to lowering my expectations rather than increasing it. I went into the transaction expecting something out of this world of this world but I never had that. If I had been expecting something ‘normal’ and had received something ‘normal’ I would not have complained. Anyway, I cannot blame her too much-she was acting with the knowledge available to her. How does a customer go about lowering expectations?
The 7 Elements of Expectations
The first step in lowering customer expectations is in understanding how those expectations are formed in the first place. When it comes to the causes of customer expectations, experts agree that there are seven main elements that create and modify expectations.
• Past Experience
“Once bitten, twice shy” so goes the old saying. When it comes to what to expect from a product or service, a customers’ past experience is, almost always, the best teacher. My past experience with some wonderful ‘waakye’ in the past had conditioned my mind to expect a certain standard. Participants at the ExSellers International seminars all have certain expectations when attending new programmes and so we make conscious efforts to ensure that we always surpass the standards set for all programmes. This is a challenge to all businesses throughout the world-having to consistently meet and surpass old standards.
• The firm
The information I got from the set up of the ‘waakye’ seller also fuelled my expectations. If she had taken all that time to put up such a pleasant, eye-catching display, then the food had to be very good, or so I thought. That experience even made me believe that the not-too-clean nature of the ‘waakye’ I used to enjoy had something to do with the wonderful taste. However, that is another matter all together.
The kind of advertising a firm puts out has a huge effect on the expectations of patrons. I am planning to take on the issue of advertising and customer service in a separate article and so would not want to go into details this week. It is however important to know that, customers’ expectations are formed, to a large extent, by the kind of advertising the firm does.
• Other customers
I am sure the absence of a long queue at that ‘waakye’ seller’s booth should have given me a signal that all was not well. Better still, I should have even asked around before making the purchase. Feedback from other customers is another way customers form their expectations about products and services. Customers do not mind so much about the consequences of inconsequential purchases such as my ‘waakye’ but when it comes to important purchasing decision such as buying a house or a car, customers make it a point to “ask around.”
• The Competition
Customers are ‘comparers’, like it or not. We are all in the habit of comparing what the competition is offering before making a purchasing decision. Businesses know that and that is why they are trying to outdo each other on the market just to get our attention. The intensity of the competition in these times is enough proof of this fact. The most interesting industry to study this phenomenon is the telecommunications industry. One network brings out a novel service one day and the very next day, another network pops up with the same service or better still, an upgrade of that service. At this point in time, I do not envy whoever is in charge of introducing GLO into the Ghanaian market. Our expectations are so high that I doubt if they would ever be able to meet them.
The banking sector is also another industry experiencing this intensity of competition. One bank comes out with an innovative product and pretty soon, all others follow suit. The actions of the competition have a nice way of shaping the expectations of customers before they even try the product. I can only imagine what a new entrant into the banking sector would have to do to sway Ghanaians like Standard Trust (now UBA) did a couple of years ago.
• The Media
The power of the media to shape minds is one that has been studied for centuries. Theories and principles abound on the potency of the media to shape the minds of people. The story of contaminated flour being used in the production of certain of brand of biscuits by ace investigative journalist, Anas Aremeyaw Anas had a tremhttp://www.blogger.com/img/blank.gifendous effect on the expectations of consumers of that brand of biscuit. I am also of the opinion that some of the causes of the demise of the national airline had to do with the image the media had created about the airline. We all knew what to expect from Ghana Airways just by listening to the news.
• Regulators
The actions of regulators also have an effect on the expectations of customers. I find the insurance industry an interesting case study for this phenomenon. One day, we hear one company is AA rated and pretty soon, others were running for their AAs and flaunting them in the faces of those who did not have them.
• Consumer Groups
In Ghana, it seems the Consumer Protection Agency is yet to attain its full potential. I am sure that very soon Ghanaians would begin to recognise the importance of that very important body to consumerism in this country. I wonder how many people turned off their mobile phones in protest as urged by the CPA last time round.
• Newer technology
A customer who has had the privilege of experiencing a certain technology in one product will expect something akin to that in a similar product. These days it is expected that all new mobile phones should have at least some basic technologies. With the advent of the phones from TECNO, rLG and G-TIDE, it seems all phones should accommodate double SIM cards and have, in the very least, some FM radio functions.
I believe with this knowledge of what informs a customer’s expectations, business people will manage customer expectations better so as not to leave their cherished customers in a state of dissatisfaction. The aim of all businesses should be that every customer that enters into any interaction or transaction with the business must, in the very least, leave satisfied. Customer satisfaction is the key to long-term business success; anything other than that is definitely out of the equation.
Friday, July 16, 2010
HAPPY CUSTOMERS: The Best Defence against the Competition
By J. N. Halm
Your product can be copied,
your price easily imitated,
your place ferociously invaded
and your promotions effortlessly re-created;
but Exceptional Customer Care, Always! will always be hard to beat.”
(J. N. Halm)
So finally, the month-long football fiesta is over-the Iberians have been crowned worthy winners and talks of a Spanish dominance have already started permeating the football atmosphere. After all, they now carry both the European and global trophies. Ghana’s participation will go down as one of the most admirable and it is fact the history of Africa’s first World Cup will be incomplete without a mention of the exploits of the gallant Black Stars of Africa.
The story will have been much sweeter had it not been for the fact that the Uruguayans came on to the pitch in that epic quarter final with two ‘goalkeepers’. This fact goes to attest the resurgence of Ghana in the beautiful game. I am convinced that beyond the first round a team could only beat the Black Stars if it had two goalkeepers on the field of play.
Anyway, I am not one to cry over spilt milk. It is all in the past. However, I cannot speak about Ghana’s participation in SA 2010 without special mention of our back line. Conceding four goals in five World Cup matches is no mean achievement. Just ask the likes of the North Koreans and even the Mighty Brazil. We had a good defence and it came in handy when the going got tough. The key to winning is in having good defences.
Talk of competition and defences brought my mind home on the intensity of the competition in business circles in Ghana. From the fierce mobile telephony war zones, through the battlefields of life and general insurance, through the banking terrain to the relatively new battlegrounds of the traditional and herbal medicine, it seems the competition within industries will continue to boil. What are the best measures a company can adopt to defend itself admirably against its competitors?
Business school teaches us some competitive strategies that businesses can adopt to beat off the competition. However, the fact remains that outside the walls of academia, there is a reality check. In a cutthroat and intense competitive market, much of what we learn in school does not seem to do much good.
After some in-depth reading into several competitive moves and after talking to a number of business leaders in the community I came to the sad conclusion that these strategies might work, but only for a brief period of time. In seeking an advantage over one’s competitors, many of the competitive moves fall short in the long run, especially in an environment like ours where some of the basic laws of business seem not to apply.
Price Wars do not last
Competing on prices has been proven to be just a temporary measure. Price hikes or price dips do not stand the test of time. Eventually, competitors find that they have cut away so much flesh from their profits that they become “financial skeletons”, barely able to stand on their own two feet. This is what might result in the insurance industry in this country if the trend of undercutting continues. With the way some new entrants in the general insurance are aggressively going about their business, pretty soon payment of some claims might become problematic. I hope the NIC is doing something about this disturbing trend.
New Inventions become old, sooner or later
When IBM introduced the PC in late 1981, I am sure they thought they had gotten a cash cow that will provide them with milk for a long time. However, barely two years later, other manufacturers had introduced “clones” that were matching IBM’s machines. By 1987, IBM’s machines accounted for less than half of all PCs sold worldwide. Sooner or later, someone as smart as you are, or even smarter, will take your invention, make changes on it and sell it on the market at less than half the price of yours.
Technology has its limits
I remember when the first ATMs were released into the banking sector; the few banks that had it were making sure that we all knew they were the ones with the ‘machines’. It appeared in all their communications. A few years down the line and it has become the norm. Investments in automation hold off the competition, but only for a while. Development of entirely new processes and changes to old processes might give a firm some competitive advantages but these have limits. I read quite recently some studies indicating that 60 to 90 percent of all new technological breakthroughs leaks away to the competition within a very short period of time.
Smart New Executives matter little
The human resource of every organisation is vital to its long-term success. This is fact that very few will attempt to debate. I believe it is for this reason that each and every edition of this newspaper carries faces of new executive appointments.
“Mr. A has been appointed the new CEO of ABC Company Limited. Before this appointment, he was the Deputy MD of XYZ Company.”
When a well-known face crosses carpets it definitely sends shivers down the spine of industry players, especially direct competitors. However, as has been proven time and time again, smart executives matter very little if their smartness is not translated into increased profitability for the company. The competition eventually strategizes to face the ‘new’ competition with renewed vigour. Interestingly, in many of these cases, someone emerges from the ranks of the old company and proves to be smart(er) and ready to hold the fort. Other times, a smarter executive is ‘poached’ from another industry to join the ‘fight’.
Lower labour costs do not lower the competition
We all appreciate that labour is vital to an organisation’s overhead. An organisation that is able to lower its labour costs eventually gains a competitive edge. In the 1960s, the Europeans were offering the Americans stiff competition due to their lower labour costs. In the 1970s, the Japanese started beating the Europeans on the lower labour costs issue. From the 1980s up till now, the Japanese are being given a taste of their own medicine as the Chinese are prepared to work for far less. In fact it is not only the Japanese that are running scared of the Chinese, the whole world is. Because there is always someone willing to work for less money, using lower labour costs as a competitive move is not sustainable.
Marketing Strategies are not enough
Recent occurrences in the mobile telephony industry prove that inventive marketing strategies were not enough to beat off the competition. I recall the early days of mobile telephones in this country-the days of MobiTel, OneTouch and Spacefon-when SIM cards were so exclusive that only the ‘privileged’ had access to them. A decade or so down the line, and SIM cards are being marketed like ‘agblikaaklo’ on the streets of Accra. I find it pretty interesting, that these days the marketing strategy for SIM cards and accompanying mobile phones is with much fanfare-young men and women clad in branded Polo Shirts dancing on the streets or on trailers to attract attention. It does not take too long for competitors to jump on a single strategy and “flog it till its dead.” These days, music and film producers all seem to have adopted a strategy of selling their CDs and tapes in small vans with irritatingly loud speakers.
Markets are not yours forever
We are told that another way to beat off the competition is to target a specific market and serve them so well that the competition will only play catch-up when it comes to that market. ‘Niching’ is helpful, but only up to a point. Procredit and other such non-banking financial institutions made the informal sector their domain until the ‘big boys’ started looking in that direction. In the US, Wal-Mart stores made small towns their niches because the larger chain of supermarkets did not find those markets very profitable. However, decades later those small towns grew into larger towns and that was when the ‘big boys’ stepped in. Wal-Mart’s competitive advantage disappeared into thin air.
Regulations do not protect forever
In order to beat off competition from across borders, indigenous businesses often call on their governments to help stave off the attacks. The decline of Ghana’s textile industry in spite of regulations is a testimony to the truism that governmental interventions are, at best, temporary ways of fending off the competition. I recently read that in spite of the heavy protection of the Japanese computer industry, IBM holds 45 percent of the market. Dr. Milind Lele in his book, The Customer is Key, puts it best; “If there is a market worth having, competitors will find a way around and all regulation.”
So, what is the best strategy?
The best strategy is the one that keeps customers happy! As can be discerned from the preceding discussion, competitive moves are at best temporary measures against the competition. A business that makes customer satisfaction, an overriding goal that seeps through the entire organisation is virtually indestructible. No amount of competition can kill that business. Interestingly, whilst others are engaged in price wars, such great companies can even increase their prices and still maintain their loyal band of customers. While their competitors lose clients because of a change in technology, the customers of the great companies are patient to wait while the business adopts and adapts to the new technology.
Organisations in which customer satisfaction pervades the entire fabric of the organisation-where considerations of the customer’s satisfaction are factored in product-service design, manufacturing, sales, after sales care, etc-are the real winners. Companies that make the provision of superior customer satisfaction the cornerstone of their entire existence will always win.
As stated by Dr. Lele, great companies know how to
“……… maximise customer satisfaction and thereby obtain higher profitability through the ability to charge more for its products than its rivals, obtain more repeat business, and reduce its marketing and sales expenses.”
So, if your intention in business is to beat off all competition and rise to the top, make the maximisation of customer satisfaction your priority. If you manage to pull this off, your competition will need more than two goalkeepers to keep you from beating them.
By J. N. Halm
Your product can be copied,
your price easily imitated,
your place ferociously invaded
and your promotions effortlessly re-created;
but Exceptional Customer Care, Always! will always be hard to beat.”
(J. N. Halm)
So finally, the month-long football fiesta is over-the Iberians have been crowned worthy winners and talks of a Spanish dominance have already started permeating the football atmosphere. After all, they now carry both the European and global trophies. Ghana’s participation will go down as one of the most admirable and it is fact the history of Africa’s first World Cup will be incomplete without a mention of the exploits of the gallant Black Stars of Africa.
The story will have been much sweeter had it not been for the fact that the Uruguayans came on to the pitch in that epic quarter final with two ‘goalkeepers’. This fact goes to attest the resurgence of Ghana in the beautiful game. I am convinced that beyond the first round a team could only beat the Black Stars if it had two goalkeepers on the field of play.
Anyway, I am not one to cry over spilt milk. It is all in the past. However, I cannot speak about Ghana’s participation in SA 2010 without special mention of our back line. Conceding four goals in five World Cup matches is no mean achievement. Just ask the likes of the North Koreans and even the Mighty Brazil. We had a good defence and it came in handy when the going got tough. The key to winning is in having good defences.
Talk of competition and defences brought my mind home on the intensity of the competition in business circles in Ghana. From the fierce mobile telephony war zones, through the battlefields of life and general insurance, through the banking terrain to the relatively new battlegrounds of the traditional and herbal medicine, it seems the competition within industries will continue to boil. What are the best measures a company can adopt to defend itself admirably against its competitors?
Business school teaches us some competitive strategies that businesses can adopt to beat off the competition. However, the fact remains that outside the walls of academia, there is a reality check. In a cutthroat and intense competitive market, much of what we learn in school does not seem to do much good.
After some in-depth reading into several competitive moves and after talking to a number of business leaders in the community I came to the sad conclusion that these strategies might work, but only for a brief period of time. In seeking an advantage over one’s competitors, many of the competitive moves fall short in the long run, especially in an environment like ours where some of the basic laws of business seem not to apply.
Price Wars do not last
Competing on prices has been proven to be just a temporary measure. Price hikes or price dips do not stand the test of time. Eventually, competitors find that they have cut away so much flesh from their profits that they become “financial skeletons”, barely able to stand on their own two feet. This is what might result in the insurance industry in this country if the trend of undercutting continues. With the way some new entrants in the general insurance are aggressively going about their business, pretty soon payment of some claims might become problematic. I hope the NIC is doing something about this disturbing trend.
New Inventions become old, sooner or later
When IBM introduced the PC in late 1981, I am sure they thought they had gotten a cash cow that will provide them with milk for a long time. However, barely two years later, other manufacturers had introduced “clones” that were matching IBM’s machines. By 1987, IBM’s machines accounted for less than half of all PCs sold worldwide. Sooner or later, someone as smart as you are, or even smarter, will take your invention, make changes on it and sell it on the market at less than half the price of yours.
Technology has its limits
I remember when the first ATMs were released into the banking sector; the few banks that had it were making sure that we all knew they were the ones with the ‘machines’. It appeared in all their communications. A few years down the line and it has become the norm. Investments in automation hold off the competition, but only for a while. Development of entirely new processes and changes to old processes might give a firm some competitive advantages but these have limits. I read quite recently some studies indicating that 60 to 90 percent of all new technological breakthroughs leaks away to the competition within a very short period of time.
Smart New Executives matter little
The human resource of every organisation is vital to its long-term success. This is fact that very few will attempt to debate. I believe it is for this reason that each and every edition of this newspaper carries faces of new executive appointments.
“Mr. A has been appointed the new CEO of ABC Company Limited. Before this appointment, he was the Deputy MD of XYZ Company.”
When a well-known face crosses carpets it definitely sends shivers down the spine of industry players, especially direct competitors. However, as has been proven time and time again, smart executives matter very little if their smartness is not translated into increased profitability for the company. The competition eventually strategizes to face the ‘new’ competition with renewed vigour. Interestingly, in many of these cases, someone emerges from the ranks of the old company and proves to be smart(er) and ready to hold the fort. Other times, a smarter executive is ‘poached’ from another industry to join the ‘fight’.
Lower labour costs do not lower the competition
We all appreciate that labour is vital to an organisation’s overhead. An organisation that is able to lower its labour costs eventually gains a competitive edge. In the 1960s, the Europeans were offering the Americans stiff competition due to their lower labour costs. In the 1970s, the Japanese started beating the Europeans on the lower labour costs issue. From the 1980s up till now, the Japanese are being given a taste of their own medicine as the Chinese are prepared to work for far less. In fact it is not only the Japanese that are running scared of the Chinese, the whole world is. Because there is always someone willing to work for less money, using lower labour costs as a competitive move is not sustainable.
Marketing Strategies are not enough
Recent occurrences in the mobile telephony industry prove that inventive marketing strategies were not enough to beat off the competition. I recall the early days of mobile telephones in this country-the days of MobiTel, OneTouch and Spacefon-when SIM cards were so exclusive that only the ‘privileged’ had access to them. A decade or so down the line, and SIM cards are being marketed like ‘agblikaaklo’ on the streets of Accra. I find it pretty interesting, that these days the marketing strategy for SIM cards and accompanying mobile phones is with much fanfare-young men and women clad in branded Polo Shirts dancing on the streets or on trailers to attract attention. It does not take too long for competitors to jump on a single strategy and “flog it till its dead.” These days, music and film producers all seem to have adopted a strategy of selling their CDs and tapes in small vans with irritatingly loud speakers.
Markets are not yours forever
We are told that another way to beat off the competition is to target a specific market and serve them so well that the competition will only play catch-up when it comes to that market. ‘Niching’ is helpful, but only up to a point. Procredit and other such non-banking financial institutions made the informal sector their domain until the ‘big boys’ started looking in that direction. In the US, Wal-Mart stores made small towns their niches because the larger chain of supermarkets did not find those markets very profitable. However, decades later those small towns grew into larger towns and that was when the ‘big boys’ stepped in. Wal-Mart’s competitive advantage disappeared into thin air.
Regulations do not protect forever
In order to beat off competition from across borders, indigenous businesses often call on their governments to help stave off the attacks. The decline of Ghana’s textile industry in spite of regulations is a testimony to the truism that governmental interventions are, at best, temporary ways of fending off the competition. I recently read that in spite of the heavy protection of the Japanese computer industry, IBM holds 45 percent of the market. Dr. Milind Lele in his book, The Customer is Key, puts it best; “If there is a market worth having, competitors will find a way around and all regulation.”
So, what is the best strategy?
The best strategy is the one that keeps customers happy! As can be discerned from the preceding discussion, competitive moves are at best temporary measures against the competition. A business that makes customer satisfaction, an overriding goal that seeps through the entire organisation is virtually indestructible. No amount of competition can kill that business. Interestingly, whilst others are engaged in price wars, such great companies can even increase their prices and still maintain their loyal band of customers. While their competitors lose clients because of a change in technology, the customers of the great companies are patient to wait while the business adopts and adapts to the new technology.
Organisations in which customer satisfaction pervades the entire fabric of the organisation-where considerations of the customer’s satisfaction are factored in product-service design, manufacturing, sales, after sales care, etc-are the real winners. Companies that make the provision of superior customer satisfaction the cornerstone of their entire existence will always win.
As stated by Dr. Lele, great companies know how to
“……… maximise customer satisfaction and thereby obtain higher profitability through the ability to charge more for its products than its rivals, obtain more repeat business, and reduce its marketing and sales expenses.”
So, if your intention in business is to beat off all competition and rise to the top, make the maximisation of customer satisfaction your priority. If you manage to pull this off, your competition will need more than two goalkeepers to keep you from beating them.
Tuesday, July 13, 2010
BEYOND CUSTOMER EXPECTATIONS: Going the Extra Mile
By J. N. Halm
Good day, Mr. Halm.
In April this year, I attended the African Banking and Financial Institutions Seminar at the La Palm Golden Beach Hotel.
A participant at this seminar who was using the escalator had her slipper trapped in the machine, there by destroying the whole thing.
I went back there recently and the escalator has still not been fixed.
As the CEO of this organization, what would you do?
Have a good weekend.
Regards
Sampson
After establishing the grounds in last week’s piece as to who qualifies as a customer, I would move into another issue that Sampson’s letter brings up. I would attempt to answer Sampson’s main question as to what I would do if I were the CEO of the Hotel. My response will however be predicated on the assumption that such a case had been reported to me, the CEO and that I am fully aware of whatever transpired. This is because there is always the temptation to blame management for issues which management has no knowledge of. However, when the issue gets to the attention of management, the onus lies on whoever is in charge to act in such a manner that will not only solve the problem at hand but to go further and win the hearts of the customer for a long-term relationship.
The Element of Pleasant Surprise
One of the keys in winning customers for life is to pleasantly surprise the customer. The element of surprise is one that can win, not only, wars but also win hearts. We live in a largely customer-unfriendly environment. Many businesses tend to take an increasingly aggressive stand when it comes to dealing with customers. The mindset of businesses is betrayed in their communications with customers. Read the notices posted on business premises and you would think there was a ‘fight’ going on. “Goods sold are not returnable”, “Terms and Conditions apply”, “Count your money before leaving the counter”, etc.
It seems there is still some deep-seated mistrust between businesses and customers. I do not intend to go into the merits or demerits of these issues. The fact remains that in this environment, customers are rarely pleasantly surprised. Many organisations in this country, and beyond, tend to be too mechanistic in their approach to customers.
Recently I came across a story in which a well-respected global brand took the stringent mechanistic approach too far. A courier was to transport the world's first windpipe transplant on an EasyJet flight. Readers might be aware that EasyJet is the no-frills airline that just gives you the essentials of travel and does away with any excesses, thereby cutting down costs for the traveler. On this occasion, EasyJet refused to allow the courier on board because it was going to require some special attention which was against company policies.
Inasmuch as I appreciate company policies, there are cases that demand special attention, and this was one of such. It was also a fine opportunity for EasyJet to develop a legendary customer service story. It simply refused. In the end, someone with a private jet stepped in to transport the courier and the precious cargo inside within the crucial 14-hour timeframe. This EasyJet story will travel around the world and will be used in customer service training lectures, seminars and symposia, further damaging the image of the company.
Many customers have become used to receiving mediocre service, especially in this country. This is where the use of the element of surprise comes in. In the eye of the blind, the one-eyed man is king, so it is said. Therefore in such an environment, going out of one’s way to serve a customer will go a long way in establishing a long-lasting relationship. Using the element of surprise therefore, my first move after getting to know of this unfortunate incident is to ensure that the woman is not physically hurt as a result of the accident. Her health should be paramount-no broken ankles or toes. I would then ask for the damaged shoe. If it is as ‘destroyed’ as Sampson puts it, then the Hotel must get the woman something to wear in the mean time whilst making arrangements for new shoes to be bought for the woman.
What!!
Mr. Halm, you might have woken up on the wrong side of the bed this morning!!
I know that will be the response of some readers to this suggestion.
Why make a big fuss about just a shoe? After all, it was not the Hotel’s fault that she got her slipper destroyed. Why get her a new shoe?
The answer is simple. Any manager can call the woman and apologise for the inconvenience but it will take an exceptional manager to “go the extra mile.” How much will it cost the Hotel to replace the shoes for the woman? No matter the costs, the eventual rewards to the Hotel will far outweigh the costs. What image do you think the Hotel will have if such a touching story was to come out in the media?
Stories on the Extra Mile
This is what I refer to as Beyond Customer Expectations. This single incident can build a customer service legend for the Hotel. It will become a story that will be told to both new employees and customers alike. Companies known for great customer service have such stories. FEDEX has the story of the delivery man who was not deterred by a heavy snow downpour, risking life and limb to deliver a Christmas parcel. There are several other such legendary stories from other such great companies. Why not have one of your own?
I have always urged business leaders to make a conscious effort to determine the kinds of stories that customers have about their business. The fact of the matter is that whether you initiate the stories about your company or not, there are stories out there about the organisation. So it is important that you determine what the public thinks of you. If you leave it is to us, we will only tell of your negative side.
Painless on the Extra Mile
Contrary to what many business managers and leaders believe, it makes perfect business sense to go the extra mile for a customer. The business does not really lose. In Ghana, it seems businesses are bent on a strict rule of giving customers just the 100% purchased; some even give less! Going the extra mile need not involve anything expensive. It could be something as simple as a phone call from the business to a customer saying ‘Hello’ ‘Merry Christmas’ or ‘Happy Birthday’. It could be the actions of the carpet salesman at Accra Central who offered to come to my office and lay my carpet free of charge. The extra mile could also be just a handwritten letter from a manager to an aggrieved client or a new customer. The personal touch will send a very powerful message to the customer that the organisation TRULY cares. If they put their minds to it, business leaders can come out with very cheap but ingenious ways to show customers that they truly care.
Cautions on the Extra Mile
Our elders say whilst we are advising the cat, we also advise the ‘koobi’. It is not my intention to give the impression that under all circumstances, businesses should throw caution to the wind and go the extra mile for their customers. Going the extra mile must be done within limits of the business’ authority. All relevant rules and regulations must be considered when offering customers that extra ‘something’. It must not be done to the detriment of the business. I must also caution that there will be some customers who will not even appreciate the extra effort you are putting in to serve them. This should however not deter you from going the extra mile for other customers.
I sincerely hope I have been able to satisfactorily respond to Sampson’s letter. I trust I have used the opportunity to create a desire in the heart of every business person to ‘go the extra mile’ to serve customers, not only today but for all times. Greatness in customer service is not achieved in doing the very things customers expect; it can be found in doing a little bit more. Resolve to go the extra mile because it is on that extra mile that many other runners fall short.
Greatness is found on the extra mile because there is less competition there.
By J. N. Halm
Good day, Mr. Halm.
In April this year, I attended the African Banking and Financial Institutions Seminar at the La Palm Golden Beach Hotel.
A participant at this seminar who was using the escalator had her slipper trapped in the machine, there by destroying the whole thing.
I went back there recently and the escalator has still not been fixed.
As the CEO of this organization, what would you do?
Have a good weekend.
Regards
Sampson
After establishing the grounds in last week’s piece as to who qualifies as a customer, I would move into another issue that Sampson’s letter brings up. I would attempt to answer Sampson’s main question as to what I would do if I were the CEO of the Hotel. My response will however be predicated on the assumption that such a case had been reported to me, the CEO and that I am fully aware of whatever transpired. This is because there is always the temptation to blame management for issues which management has no knowledge of. However, when the issue gets to the attention of management, the onus lies on whoever is in charge to act in such a manner that will not only solve the problem at hand but to go further and win the hearts of the customer for a long-term relationship.
The Element of Pleasant Surprise
One of the keys in winning customers for life is to pleasantly surprise the customer. The element of surprise is one that can win, not only, wars but also win hearts. We live in a largely customer-unfriendly environment. Many businesses tend to take an increasingly aggressive stand when it comes to dealing with customers. The mindset of businesses is betrayed in their communications with customers. Read the notices posted on business premises and you would think there was a ‘fight’ going on. “Goods sold are not returnable”, “Terms and Conditions apply”, “Count your money before leaving the counter”, etc.
It seems there is still some deep-seated mistrust between businesses and customers. I do not intend to go into the merits or demerits of these issues. The fact remains that in this environment, customers are rarely pleasantly surprised. Many organisations in this country, and beyond, tend to be too mechanistic in their approach to customers.
Recently I came across a story in which a well-respected global brand took the stringent mechanistic approach too far. A courier was to transport the world's first windpipe transplant on an EasyJet flight. Readers might be aware that EasyJet is the no-frills airline that just gives you the essentials of travel and does away with any excesses, thereby cutting down costs for the traveler. On this occasion, EasyJet refused to allow the courier on board because it was going to require some special attention which was against company policies.
Inasmuch as I appreciate company policies, there are cases that demand special attention, and this was one of such. It was also a fine opportunity for EasyJet to develop a legendary customer service story. It simply refused. In the end, someone with a private jet stepped in to transport the courier and the precious cargo inside within the crucial 14-hour timeframe. This EasyJet story will travel around the world and will be used in customer service training lectures, seminars and symposia, further damaging the image of the company.
Many customers have become used to receiving mediocre service, especially in this country. This is where the use of the element of surprise comes in. In the eye of the blind, the one-eyed man is king, so it is said. Therefore in such an environment, going out of one’s way to serve a customer will go a long way in establishing a long-lasting relationship. Using the element of surprise therefore, my first move after getting to know of this unfortunate incident is to ensure that the woman is not physically hurt as a result of the accident. Her health should be paramount-no broken ankles or toes. I would then ask for the damaged shoe. If it is as ‘destroyed’ as Sampson puts it, then the Hotel must get the woman something to wear in the mean time whilst making arrangements for new shoes to be bought for the woman.
What!!
Mr. Halm, you might have woken up on the wrong side of the bed this morning!!
I know that will be the response of some readers to this suggestion.
Why make a big fuss about just a shoe? After all, it was not the Hotel’s fault that she got her slipper destroyed. Why get her a new shoe?
The answer is simple. Any manager can call the woman and apologise for the inconvenience but it will take an exceptional manager to “go the extra mile.” How much will it cost the Hotel to replace the shoes for the woman? No matter the costs, the eventual rewards to the Hotel will far outweigh the costs. What image do you think the Hotel will have if such a touching story was to come out in the media?
Stories on the Extra Mile
This is what I refer to as Beyond Customer Expectations. This single incident can build a customer service legend for the Hotel. It will become a story that will be told to both new employees and customers alike. Companies known for great customer service have such stories. FEDEX has the story of the delivery man who was not deterred by a heavy snow downpour, risking life and limb to deliver a Christmas parcel. There are several other such legendary stories from other such great companies. Why not have one of your own?
I have always urged business leaders to make a conscious effort to determine the kinds of stories that customers have about their business. The fact of the matter is that whether you initiate the stories about your company or not, there are stories out there about the organisation. So it is important that you determine what the public thinks of you. If you leave it is to us, we will only tell of your negative side.
Painless on the Extra Mile
Contrary to what many business managers and leaders believe, it makes perfect business sense to go the extra mile for a customer. The business does not really lose. In Ghana, it seems businesses are bent on a strict rule of giving customers just the 100% purchased; some even give less! Going the extra mile need not involve anything expensive. It could be something as simple as a phone call from the business to a customer saying ‘Hello’ ‘Merry Christmas’ or ‘Happy Birthday’. It could be the actions of the carpet salesman at Accra Central who offered to come to my office and lay my carpet free of charge. The extra mile could also be just a handwritten letter from a manager to an aggrieved client or a new customer. The personal touch will send a very powerful message to the customer that the organisation TRULY cares. If they put their minds to it, business leaders can come out with very cheap but ingenious ways to show customers that they truly care.
Cautions on the Extra Mile
Our elders say whilst we are advising the cat, we also advise the ‘koobi’. It is not my intention to give the impression that under all circumstances, businesses should throw caution to the wind and go the extra mile for their customers. Going the extra mile must be done within limits of the business’ authority. All relevant rules and regulations must be considered when offering customers that extra ‘something’. It must not be done to the detriment of the business. I must also caution that there will be some customers who will not even appreciate the extra effort you are putting in to serve them. This should however not deter you from going the extra mile for other customers.
I sincerely hope I have been able to satisfactorily respond to Sampson’s letter. I trust I have used the opportunity to create a desire in the heart of every business person to ‘go the extra mile’ to serve customers, not only today but for all times. Greatness in customer service is not achieved in doing the very things customers expect; it can be found in doing a little bit more. Resolve to go the extra mile because it is on that extra mile that many other runners fall short.
Greatness is found on the extra mile because there is less competition there.
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