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One of the most overlooked gaps in well-meaning organizations is recognizing the need to treat internal customers even BETTER than external customers—at least initially.  Within an organization, it’s easy to fall into the trap of thinking of your fellow employee as your family that you can treat however you want because “they have to love me, they’re family,” when in reality, they are your most important customer.  Why?  Because how we treat each other within the organization is a reflection of how we are going to treat our external customers in the long term.

One of the first things to think about then, as we look at creating a culture of service, is how well do we ask for and listen to feedback from teammates on how we are serving them.  Let me give you a great example I heard just this past week to illustrate this point.

I have a very good friend who is a professional golfer on the PGA Tour. My husband and I had dinner with him last week and he shared with us how he meets with his team at the beginning of each year to set goals for the season.  I was surprised to hear that in addition to his caddy, he has a personal trainer, a swing coach to help him with his golf swing, a short game coach to help him with his short game, and his agent.  While in their meeting, my friend gave his swing coach some feedback about how he would like to see him out on the golf course more to be able to better analyze his swing and offer suggestions.  The swing coach did not like the feedback his team member (as well as his boss!) gave him, and became very defensive about the feedback and was clearly not open to hearing it.  The end result was that my friend hired a new swing coach who was committed to delivering on the service my friend was looking for.

Good service begins at home

Just because we work for the same company doesn’t mean we should treat our fellow employees as second class citizens. On the contrary, we need to listen to them and thank them for their feedback the same way we would to an external customer.  My friend’s swing coach didn’t understand the idea of “serving the golfer” to help him get better and it cost him his job.

Ideally, this internal customer focus will start at the top of the organization with senior leaders recognizing the importance of consistently providing both the positive and constructive feedback to employees about what is expected of them, praising them for what they do well, and giving them ideas where they can improve.  Next, individual department leaders should continue the process by encouraging team members to ask for feedback from each other, as well as from other departments on how well they are serving them.

Learn from the positive and the negative

One important note about negative feedback.  When someone complains about your service, or shares some unpleasant feedback with you, remember they must care enough about you to share it and want you to improve, so thank them for the feedback!  If my friend’s swing coach had done that, he probably would still have his job!!!

About the author:

Kathy Cuff is one of the principal authors—together  with Vicki Halsey–of The Ken Blanchard Companies’ Legendary Service training program.  Their customer service focused posts appear on the first and third Thursday of each month.

The 2011 American Express Global Customer Service Barometer reports that 60 percent of U.S. consumer respondents believe that businesses have not increased their focus on providing good customer service.  Even more surprising, 26 percent think companies are actually paying less attention to service.

Wow—now is your chance to be the one who CAREs about service!  Here are three places to start being the one who leads the charge so everyone in the organization has a customer service mindset:

1. Declare “legendary customer service” as an imperative. Put it out there. Say, “We want to be #1 in our space for delivering Legendary Customer Service.” Show any metrics you currently have and set new targets /metrics for success by showing what a good job would look like.  Explain the business imperative for service and have a kick-off meeting where senior leaders model the service they want others to emulate—greeting people at the door, shaking hands, valuing them for all they do, etc.  In this meeting, actively involve people in activities, get them fired up about the initiative, and have them challenge each other to rally to serve customers and contribute to the vitality of the organization.
2. Establish a service champion team who will go out and walk in the customer’s shoes.  Do some action learning.   Map the flow of customers and research positives and negatives by asking customers, employees, suppliers, and anyone who is in the service chain for their thoughts on what is working and what could be improved. Put them on the agenda at all company meetings to share their findings and use time to brainstorm options, set goals, create first steps, and assign roles.
3. Immediately showcase individual employee customer success stories and create images for everyone of the optimal service you are looking for. Remember that the brain stores in images and not words, so to create momentum, be sure to highlight ideal service successes and let people see their outstanding peers in action.  Show examples of customers singing praises to demonstrate the impact of great service. Share any improvements such as fewer complaints, improved referrals, or more repeat business.

As a leader, it’s important that you demonstrate a service mindset and show others how to accomplish it.  By following these three steps, you can get your organization off to a good start on a path that will lead to better performance.

“Creating an environment where goals are clear, where success can be seen, and where learning is encouraged will help employees engage customers with a true sense of meaning.”               

– Garry Ridge, President and CEO, WD-40 Company

Now that the holidays are over, the true test of customer service begins…Black Friday has come and gone; all of the holiday specials, the “one day only” sales and then the post holiday sales have all died down, so what’s left to attract customers into your stores or businesses?

A big part of it is the memory your business has created in the minds of your customers.  Were you easy to do business with in all of the hustle and bustle of holiday shopping?  Were your employees friendly and inviting and patient with the customer?  Did you welcome returns and exchanges and use that time to chat about people’s best memories of the holidays? It is not too late!

I worked for many years with a number of ski resorts in Colorado and the biggest message I needed to impress upon the employees was that by working in  a seasonal business, there was only a small window to make a great impression on their guests so that they would remember their positive experience and want to come back again next season.  The same is true for all companies and businesses.  Even during your busiest times, that’s when your customers are watching for, and expecting, great customer service.

I have read countless of comments on my Facebook from friends sharing their frustrations of horrible customer service they received over the holidays.  They were mad and frustrated and couldn’t wait to post it on Facebook for the world to read!  Research shows that people don’t make buying decisions anymore based on only their experiences.  They  make those decisions on friends’ and family members’ experiences, and now with the help of social media, based on thousands of strangers’ experiences as well!  That one bad service story spreads like wildfire and can ruin your reputation very quickly.

So what do you do as a business owner, manager, or even as an employee of a company to start a legendary story of service?  Remember that customer service is ALWAYS important and should never be discounted like your prices! Make each interaction with a customer so memorable, that the product becomes the by-product.  Remember that great service with external customers starts with great service to your employees or internal customers. Praise employees when you catch them giving great service, and  constantly keep “serving others” front of mind.  If you do this and stay focused on serving people, your customers will reward you with their devotion and loyalty.

This guest post by Kathy Cuff is the latest in a series looking at exceeding customer satisfaction and loyalty.  Kathy, together with Vicki Halsey, are the principal authors of The Ken Blanchard Companies’ Legendary Service training program.  Their posts will appear on the first and third Thursday of each month. 

This is the season for joy, love, and kindness—yet it seems like a holiday miracle when you get any joy, love, and kindness as you are out shopping for holiday gifts.

I was at a huge warehouse store last week. It was a bit wild. There were rabid sample-seekers, last minute bargain hunters, multitudes of screaming children, and people with lists and carts and flatbeds a mile long, trying to find everything they needed. Emotions were running high and products were running out. Some examples from my personal experience included:

• Early in my shopping, I found a great sweatshirt for my son and put it in my cart. Moments later, as I was looking through the mass of books on the book table, out of the corner of my eye I noticed a lady actually removing the sweatshirt from my cart! That’s one way of shopping, I guess. I sure hope it was the size she needed. 
• Another person grabbed a lasagna sample when I was clearly reaching for it—my hand was literally an inch away from the little cup. Hey! That was my bite!  Of course it was the last sample and the next batch of lasagna had ten minutes left on the timer.
• Someone else bashed me in the ankle with their humongous solid iron flatbed cart. Fa la la la la, la la la la!

What kind of lasting memories do you think these experiences might have left with me? Aggravation? Anger? Frustration? Actually, as it turned out, none of these. For me, the most vivid memories of the day were the gifts provided by four different people—who all happened to be employees of the store.

• The first angel was working in the clothing department. She came sprinting over when she saw the woman take the sweatshirt out of my cart, and said, “We have more of those—what size was that? I see your confusion. I’ll go get one for you right away.” Really?  
• Then, during the speedy checkout process, the cashier asked me, “How was your week?” and “How do you like this product?” She seemed to be so interested in me at that moment. Even though she was routinely scanning products through the register, her total focus seemed to be on me and making me feel cared for and important.
• On my way out, I stopped at the member service area to get my picture taken for my membership card. After the gentleman took my picture, I asked him how it looked and he replied, “In my 15 years here, I have never seen such a beauty!” Oh yeah, make my day!
• And then the person at the door, who I’m sure marks off hundreds of customer receipts each day, took the time to say, “I love how healthy everything is that you bought. You must love your family very much.”

So what do you notice about each one of these people? They personalized their interaction with me, showed they cared, and noticed something unique about me from my world and my life. They did their job with great skill, but then went the extra mile to leave a lasting memory and connection, to build a relationship with me.

Create a memory

Take a moment to consider your interactions with your customers and think, “How could I notice the person behind the customer?”  Emotions are high during the holiday season and this could be your best chance to leave a lasting memory. Leverage the time; share the love!

Happy holidays!

Editor’s Note: This guest post by Vicki Halsey is the second in a series looking at exceeding customer satisfaction and loyalty.  Vicki, together with Kathy Cuff, are the principal authors of The Ken Blanchard Companies’ Legendary Service training program.  It will appear on the second Thursday of each month.

What’s your favorite place to shop?  One of my favorites is my local Ace Hardware store.  It has a unique combination of the home improvement products you’d expect plus décor items to make your house feel more like a home.

But that is not why I really shop there.  What stands out for me and why I love to shop at this store has to do with the people that work there.  Sure, the products got me in the door originally, but when I started shopping there and interacting with the employees that work there, I quickly realized this store was different than many other stores because of the way I felt when I was in the store.

The moment you walk in the door, you are greeted (in a sincere way, not the phony tone you so often hear) and asked if you need help locating anything.  There is always somebody nearby to ask a question, say hello to me, or asking how your day is going.  I feel welcomed, like when you go to a friend’s house.

I recently went to this store to have a key made for my car. Now, there are numerous places to have a key made these days, so I had lots of options to choose from.  Again, I chose to go to Ace because I like the way I feel when I am in there, knowing that the employees really care about me and want to serve their customers.

And it isn’t just one or two employees—it is everyone in the store that works there.  As I was waiting for the guy to make my key, two different employees walked by me, aware I was waiting, but took a moment to just make small talk with me, letting me know that they noticed me, which made me feel good.  So often an employee walks right by you, not even acknowledging you standing there.  Ace management has obviously trained their employees to recognize customers and make sure each and every customer feels taken care of.

It’s about the feelings you create

So why does this store have such an impact on me?  It is not the products or services that they provide, since they aren’t really unique from other stores or businesses.  It is not the price of the items, since they are definitely competitive with others but not the cheapest deal in town.  It boils down to the people that work there and how I feel when I am in the store, whether purchasing something or not.

What’s the experience customers have when they interact with your people?

Your competition can replicate your products and services, but it’s your employees that really make or break that shopping experience.  Getting them to understand and believe that serving people is their job is the winning ticket.  When the customer feels like the employee cares about them, it will bring your customers back and also have them share their experience with others.

Editor’s Note: This guest post by Kathy Cuff is the first in a series looking at exceeding customer satisfaction and loyalty.  Kathy, together with Vicki Halsey, are the principal authors of The Ken Blanchard Companies’ Legendary Service training program.  It will appear on the second Thursday of each month.

The average organization is losing an amount equal to 7% of their annual sales because of poor leadership practices. That’s the surprisingly large amount of money identified by companies who completed the Blanchard Cost-of-Doing-Nothing online calculator. 

In the December issue of the Blanchard Companies Ignite newsletter, I discussed some of the initial findings from an analysis of the 200+ companies that shared their current and desired levels for customer satisfaction, employee retention, and employee productivity in their organizations.

That analysis found a 14-point customer satisfaction gap, a 16-point employee productivity gap, and a 45-point employee retention gap which translates into over $1 million dollars for the average organization.

The role of leadership

Strong leadership and management practices can close the gap in all three of these areas.  Academic research has established a strong correlation between employee satisfaction scores and subsequent customer satisfaction scores and in both cases these have been tied back to leadership practices. The bottom line is that leadership practices matter. Companies that have good leadership practices outperform companies that don’t.

Organizations that do not address leadership practices suffer a persistent drag on performance that keeps results down. When times are good, this drag on performance can be manageable, but when times are tough, it’s critically important that everyone perform at their best—especially in terms of creativity, innovation, and breakthrough thinking.

Join me for a webinar on December 7

On December 7, I am going to be presenting a more in-depth look at the Cost of Doing Nothing analysis and sharing some strategies for addressing it.  This is free webinar courtesy of Cisco WebEx and The Ken Blanchard Companies.  Over 500 people are registered and I hope you’ll join us also. You’ll see some information about the webinar below.

PS: If you would like to read more of the Blanchard article, Don’t Underestimate the High Cost of Poor Leadership, just click here.  (You’ll see my recommendation for a first step that all leaders can take right away.)

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The High Cost of Poor Leadership: The three performance gaps you have to address Wednesday, December 7, 2011, 9:00 a.m. Pacific, 12:00 p.m. Eastern, 5:00 p.m. UK and GMT

Poor leadership practices cost companies millions of dollars each year by negatively impacting employee retention, customer satisfaction, and overall employee productivity. In this Webinar, Blanchard Program Director David Witt helps you take a closer look at the effect that leadership has in each of these three areas and what you can do to improve performance.

You’ll learn that

• Less-than-optimal leadership practices cost the typical organization an amount equal to as much as 7% of their total annual sales
• At least 9% and possibly as much as 32% of an organization’s voluntary turnover can be avoided through better leadership skills
• Better leadership can generate a 3 to 4% improvement in customer satisfaction scores and a corresponding 1.5% increase in revenue growth
• Most organizations are operating with a 5 to 10% productivity drag that better leadership practices could eliminate

Drawing on proprietary original research, you’ll learn which management techniques generate the best results and also look at some of the common cultural roadblocks that keep companies from implementing them. You’ll also learn how to overcome these obstacles and make the shift from knowing to doing.

Organizations need to make sure that they are getting the best out of their people by providing strong, consistent, and inspiring leadership. Don’t miss this opportunity to learn how to evaluate and improve leadership practices throughout your organization.

Register today! http://www.webex.com/webinars/The-High-Cost-of-Poor-Leadership-The-three-performance-gaps-you-have-to-address

A new white paper from The Ken Blanchard Companies shows that poor leadership is costing the average company an amount equal to 7% of their annual revenue. That’s over a million dollars a year for any organization with $15 million dollars or more in annual sales.

 The three big culprits? 

1. Employee turnover.  Poor leadership is responsible for up to 30% of the reasons why people leave their organizations according to exit interviews conducted by The Saratoga Institute.
2. Customer turnover. Poor leadership negatively impacts employee satisfaction, which in turn negatively impacts customer satisfaction and retention. Research published in Harvard Business Review calculated that every 5 point change in employee satisfaction scores caused a 1.3 point change in customer satisfaction scores.
3. Employee productivity.  Poor leadership leads to poor employee productivity.  Research from Blanchard shows that direct report productivity can be improved 5-12% through better management practices. 

Most senior executives instinctively know that leadership impacts the bottom line, but quantifying that impact has been a challenge in the past.  This new white paper (and the free online calculator that the information is drawn from) is a great way for leaders to put some facts behind their suspicions. 

You can download a copy of this new white paper, Making the Business Case for Leadership Development: The 7% Differential here.  If you are interested in calculating what poor leadership practices might be costing your organization, also check out Blanchard’s free online Cost of Doing Nothing Calculator.  This is the same free online calculator used by survey respondents in the white paper.

In a recent article entitled Waging the War for Shoppers’ Wallets, researchers at Gallup have identified that the victors in retail will be the ones who create an engaging customer experience.  Their research shows that fully engaged customers spend $20 more per transaction than average customers at the same stores. A retailers’ most effective strategy for fending off competitors is focusing on creating an emotionally engaging experience for their customers.

This past weekend kicked off the official holiday shopping season in the United States.  Over 138 million people in the U.S. alone set out to do some shopping.  I know I did, maybe you did too. All told, I visited twelve different retailers over the past three days and each store had a chance to make an emotional connection with me.  Most offered good service, but nothing beyond what you would expect–the place I bought my Christmas tree, the place I bought gas, the online purchase I made, and the book store I visited, for example.  Some got close–the place I bought coffee, the place I bought groceries, and the place I had lunch. And two stood out for me—the place I picked up my dry cleaning and the place I shopped for a present for my father-in-law. I want to highlight those two stores as examples of how easy it is to create a connection with customers and also celebrate and recommend them both to you. 

• The first is Town Center Cleaners in San Diego.  How do they create a connection? Through customer intimacy.  They know who their customers are and they demonstrate it on a daily basis.  For example, they are already hitting the button to pull up my shirts the minute they see me getting out of the car.  They always have a friendly greeting, check on how your day is going, and always make sure that Wednesday is okay for getting my shirts back.  (And they never ask how I like my starch because it’s all listed on the customer record.)  They do it so well, every  time, that it has just become a welcome part of my Saturday routine. 
• The second example is a little more subtle.  My wife and I were checking out at a local sporting goods chain after looking for some running apparel for my father-in-law.  (We didn’t buy anything for him, but I snapped up a great deal on a golf bag and umbrella.)  As we were checking out, the cashier, an assistant manager filling in during lunch break asked us if anyone helped us with our purchase.  My wife indicated that Sunny had helped us.  Pretty standard except for what the assistant manager did next which was compliment Sunny on the good work.  It was a genuine expression of appreciation and it made me feel good about the assistant store manager and the store itself.  Way to go, Sports Authority in Carmel Mountain!

What was your experience shopping this weekend?  Did anyone create an emotional connection with you?  Tell me, and the rest of the world, by adding a comment to this post.  Let’s catch people doing things right today! 

PS: Everyone who posts by the end of the day today will automatically be entered for a raffle to win a personally autographed copy of Raving Fans, Ken Blanchard’s classic customer service book, or an advance copy of Lead with LUV, Ken’s new book with Colleen Barrett of Southwest Airlines coming out next month. I’ll announce the winner first thing tomorrow morning.

Employee engagement is a popular topic these days and a whole industry has sprung up around helping managers identify people’s strengths, discover their motivations, and provide the tools and resources people need to succeed.  The goal is to create a high-energy work environment where people want to come to work and be their best.

But do high employee engagement levels translate into better bottom line performance?  Not necessarily.  There is one additional component that has to be in place in order to drive bottom line impact. Read more…

“Love” as the key ingredient to business success?  Ken Blanchard and Colleen Barrett make a convincing case in their new book, Lead with LUV: A Different Way to Create Real Success.  I received an early manuscript of this new book (due out in January) after attending Barrett’s keynote address at The Ken Blanchard Companies annual client summit in San Diego last month.  Their basic formula is simple: Southwest succeeds because it treats employees with respect, practices The Golden Rule, and loves people for who they are.  In return, the company asks employees to treat customers in a similar manner.

It’s an approach that allows Southwest’s leadership to expect more—and receive more—from their people than other airlines.  Because employees know that leadership is on their side, leaders can confidently challenge and hold people accountable for meeting expectations.  It’s a business version of tough love that only works when employees know you care.

Interested in trying a little leadership love at your organization?  Here are three tips for getting started:

1. Communicate your organizational mission and vision. Barrett explains that at Southwest, they are first and foremost in the customer service business—they just happen to express that service by providing airline transportation.
2. Define the values that will guide behavior. At Southwest values start with safety and practicing the golden rule–treating people as you would like to be treated–as a foundation.  Three additional values of Warrior Spirit, Servant’s Heart, and a Fun-LUVing Attitude guide employee behavior on a day-to-day basis.
3. Combine caring with high expectations. Leaders at Southwest treat their people with respect, strive to bring out their best, and love their people for who they are.  In return, employees are expected to buy into the company’s mission, and to practice the company’s values with each other and customers.

What’s the level of leadership love in your organization?  Do employees know that leaders truly care about them?  It’s an essential ingredient at Southwest that has helped to create long-term success and a fun-loving culture in a challenging industry.  What could it do for you?

Win an Advance Copy of Ken and Colleen’s New Book!

Would you like to get a sneak peek at the unbound manuscript version of Bringing LUV to Leadership?  Rarely made public, we have a small number of extra copies from the proofing and review process that we are giving away this Friday.  To be entered into the drawing, just sign on as a fan at Ken Blanchard’s new Facebook Fan Page by 12 noon Pacific Time, Friday, April 9.  Everyone who is signed up as a fan by that time will automatically be entered into the drawing.  Good luck!