This is the third in our series that looks at leadership capacity and its impact on organizational growth. The full series will be available for download as a white paper once it is completed.

In our last article, we discussed the characteristics of transformational leadership that impact organizational growth. Now we want to investigate how to effectively assess a leader’s capacity to lead their company.

Rarely is a great leader born. Developing leadership capacity and the “must have” leadership characteristics does not happen by accident. Organizations cannot sit back and hope leaders develop.

Building leadership capacity is a process that starts with understanding the concept of leadership capacity, defining the expectations of leadership within your particular organization, and then building intentional, implementable steps that help leaders assess and develop their ability to be a leader.

Assessing your organizational leadership

Here are three techniques that will help you assess leadership capabilities as an initial step to developing future leaders within your organization:

1. Clarify organization leadership standards:

In order to develop the type of leaders you want in your organization, you first need to decide what a leader looks like in your organization — to define an organization wide standard for leadership. Take the time to develop and refine a leadership model that will lay out the skills, behavior and “must have” characteristics that are desired by the leaders within your organization.

Leadership standards will vary company by company and will need to address the specific needs and fit within your organizational culture. Since organizational culture is based on the leadership team, leaders need to take the following steps to define a standard for leadership:

• Assess your personal leadership style
• Ask other senior leaders to assess their personal leadership style
• Have the leaders in your company assess each other’s leadership style
• Define the most important leadership standards and characteristics you want to embed into your culture
• Work with other leaders to define the standard characteristics for leadership that best fits your company and its culture

2. Assess leaders against the standards:

Once you have a clear picture of what the ideal leader looks like, develop feedback channels to assess your leaders. Gathering feedback about the current performance of potential and current leaders will help companies assess the current state of individual leaders against the standard. Through the use of assessment tools, companies have the ability to monitor their leadership capacity — individually and collectively — to determine where gaps lie. Consider using some of these tools to garner feedback about your leaders:

• Self-assessment: Who knows better what is needed for a specific position then the person who is currently in the position. Provide individuals with the opportunity to perform a self-assessment to determine which skills and training they require to improve and develop as leaders.Consider developing feedback or self-assessment forms that leaders can fill out on a quarterly basis to ensure they are in tune with the company’s standards for leadership.
• Feedback channel: Provide employees with a feedback channel to solicit input and understand their perspective of your organizations leadership performance. Place the box in a high traffic area, or create a special email address for easy input. Make sure to encourage honest, constructive feedback and reward employees with effective and implementable ideas.
• Employee surveys: Polling employees is an effective way to get information about the leadership structure of your company. Gather input from all levels of the organization to get a holistic assessment of organizational leaders and their capacity to lead. Consider having a yearly company survey to assess the state of leadership within your company.
• Open channels of dialogue: Create an open line of dialogue for employees to talk with leaders about leadership capacity and its impact on organizational culture. Consider setting aside a block of time each week or month to allow brainstorming sessions or meetings related to leadership.
• 360 Degree Assessments: Solicit input from peers and subordinates in all formal assessment process. This ensures that each leader has a fully objective viewpoint of their strengths and areas for improvement as part of their personal growth and development. This is often the most honest and therefore the most useful of all assessments.

3. Develop a meaningful review process:

Many organizations have review processes in place — some similar to those mentioned above.

Unfortunately, for too many organizations, they are just another task that must be completed rather than seen as a valuable tool. In order for reviews to be a valuable activity, leaders need to take action based on the insights and implementable actions they discover during the review process.

Here are three review process ideas that leaders can implement:

• Leadership review process: Allow your employees to assess people that currently hold leadership positions. Turn the tables on leaders and allow employees to ask questions and provide open and honest opinions about where leaders are strong and need improvement. Leaders can set up this leadership assess in a number of ways:
  • Emailing a questionnaire to employees
  • The creation of an internal discussion board
  • Creating a leadership seminar
  • Having an internal leadership conference
  • Having a town hall meeting
• Project reviews: Once a project is complete, it should not be the last we hear of it. Review the performance and leadership capacity of the project lead and strategic initiatives through:
  • The development of a project review process or committee
  • Having the project lead/team assess their performance as a leader in addition to ways they could improve project inefficiencies
  • Don’t just focus on areas of improvement — make sure that you also highlight areas that went well — to ensure they are embedded into future initiatives
• Yearly performance reviews: Review the body of work of all the leaders within your organization. It is these insights that will help to set the strategic direction and lead to the continued growth of your organizations leadership capacity and development of a leadership culture. For the reviews:
  • Set up a review committee
  • Compare the defined company leadership to a leaders performance
  • Discuss leadership strengths and weaknesses with all leaders
  • Suggest areas to improve
  • Have leaders teach and discuss the leadership areas where they excel

Effective organizations have an internal structure in place to assess organizational leaders and determine their capacity to lead. It is this assessment process that identifies people who have the knowledge, skills, and potential to step up and take on a larger leadership role.

The next article in our leadership capacity series will build on these leadership assessment methods and examine how leaders can work to build a culture of leadership within their organization.

SurveyGizmo had a service outage this weekend. It inconvenienced their customers. As a result they built customer loyalty.

On the surface that doesn’t make sense — but the manner in which they dealt with the situation demonstrated the character of their company and their commitment to service. You can see their communication here.

My Perspective: SurveyGizmo did number of things right. Here are a few that jumped out in no particular order. Let me know if you see more.

1. They communicated quickly and honestly. I didn’t even know there was a problem, but yet they communicated the issue to everyone and didn’t try to hide the problem.
2. They were transparent and thorough in their explanation. I have a complete understanding in practical terms what happened and why.
3. They shared a solution to avoid the issue in the future. I have confidence that this issue won’t happen again.
4. They accepted full responsibility for the issue and didn’t try to shift the blame elsewhere.
5. The message was from the CEO and they offered a number where you could call for more answers.
6. They identified any lingering issues and what they were doing to resolve them.
7. They offered workable, alternative solutions to customers to address the problem until everything was resolved.
8. They made me feel like I was an insider.

Overall, they convinced me by their actions that they are committed to supporting my efforts no matter what happens. They will be there for me when I need their service.

So rather than being upset about this issue — I now have a stronger, more trusting relationship with SurveyGizmo than I had before.

Do your service recovery initiatives do as well? If not, have a look at how you handle issues and discover how you can turn adversity into opportunity.

Today, customers are no longer looking for great customer service — they want more. Today customers demand a great customer experience and will not settle for anything less.

It is no longer good enough for companies to provide good customers service — rather, companies need to create memorable interactions with customers that help establish a loyal relationship and promote brand advocacy.

Creating a memorable customer experience is based on the creation of an ideal experience that your customers would want to have throughout their relationship with your company. These interactions take place on a number of channels such as in person, over the phone, through email, and on social platforms such as Facebook and Twitter.

Successful customer experiences are scalable and can be managed consistently across multiple channels. Your customers experience must be unique. And, for it to be successful it needs to be clearly defined so that each one of your employees understands how to deliver the experience you want to create for your customers.

10 tips to improve your customer experience

Here are 10 ways that you can improve and refine your customer experience and improve your relationship with customers:

1. Make your customer experience clear: A great customer experience must be scalable across your company, consistent, and be easily understood and implemented by your employees. Have you defined the key elements that must be delivered to every customer? Review your customer experience documents and ask your employees if they understand what is expected of them.
2. Make your customer experience simple: If your customer experience is too complex, your employees will have difficulty delivering a consistent experience. Keep it simple. Do your employees understand what is expected of them? Are there too many rules? Consider relaxing the constraints on your employees so they can focus on creating an experience that creates a positive customer outcome rather than simply following a list of rules.
3. Define customer experience by channel: Customer experiences will vary by the channel that customers use to interact with your company. In person and online experiences are different and this needs to be reflected in how companies approach their customers on each channel.  Does your ideal customer experience vary by channel? If not, clearly outline the experience you want to create for each platform and point of interaction with your customers.
4. Address the emotional need: The focus of customer experience management needs to be on addressing your customer’s emotional need. Do you understand your customer’s emotional needs? What are you doing to ensure their emotional need is addressed?
5. Make sure all levels of your organization are involved: Creating a truly great customer experience is a company wide effort. There needs to be a consistent experience across the board. Does your company have an internal feedback process in place? How do you know your customers experience is consistent? Implement a regular review process and collect feedback about the customer experience.
6. Get your employees to buy in: If your employees do not buy in, your customers experience will suffer. If employees are not buying in, it is often a sign that your customer experience is too complex, or worse, isn’t relevant to the customer. What are you doing to ensure that your employees are buying in and creating the experience your customers want?
7. Talk to your customers: Ask your customers what they want. Be direct — ask them what your company can do to improve their experience. These conversations will help to build relationships. What can you do to better understand your customer’s emotional need? Create feedback channels that will help you capture and respond to your customer’s emotional needs.
8. Test your customer experience: Before launching any new customer experience initiatives, ask some of your customers to test drive your approach and provide feedback. You will be surprised what you will learn and uncover some of the oversights that you have missed. Plus you’ll avoid the expense of a false start that doesn’t really resonate with customers.
9. Narrow your focus: If you do not understand your ideal customer, then the experience you have created for them will be off target. Who are your customers? Do you have an ideal customer profile? What do your customers want to get out of their interaction and relationship with your company? Offer incentives to customers to get their opinion through surveys and focus groups.
10. Measure the experience: Measure, measure, measure. If you do not have the tools in place to measure your customer’s experience, then you will not have the ability to refine the experience and gain new insights. What tools are you using to measure your customers experience? Develop a system to measure your customer’s experience.

Creating a highly engaging customer experience will lead to better relationships with customers that will not only generate consistent income, but also develop brand advocates out of current customers that will help generate a new stream of business.

Recently I had to replace my 2 rear snow tires in my front wheel drive car. Shortly after, I noticed that the front end seemed sloppy when cornering and suspected that possibly I had a problem with my front tires as well. A visit to my local tire shop resulted in them assuring me my front tires were fine — good tread, good pressure and no wear or balance issues. But the sloppy feeling persisted.

So I went to my dealership and had them look at the front end — and they also indicated that everything was fine. However, they suggested that the new rear tires might be the issue.

So back I went to the tire store, explained the situation and was pleasantly surprised by their response.

First they indicated that sometimes the match of tires with cars doesn’t always work — who knew? Possibly the tires they had recommended were not a good match for my vehicle — although they were an excellent tire.

Secondly, they indicated that they would install a different, more expensive, tire they felt might be a better match.

Third, they refused to accept any money for the new, more expensive, tires — even after I insisted that I should pay for the difference. They felt the inconvenience of having to return a couple times had already cost me enough.

My Perspective: I felt that the tire shop had gone above and beyond in looking after me. They could easily have told me I owed the difference between my original purchase and the new tires. Instead they choose to put my interests ahead of their own — and created a positive obligation.

The made me feel like it was important to them that I got the right tires for my car — making me feel like I was a friend versus just another customer.

The world is based on reciprocity and they created a positive imbalance based on the excellent customer experience which I wanted to balance by telling my friends about the great service

What are you doing to create a positive imbalance with your customers — so they feel a positive obligation to tell their friends about your exceptional customer experience?

Recently had lunch with a client — we agreed to meet at restaurant near their office at noon.

I arrived 15 minutes early due to favourable traffic conditions — so I checked for a reservation (there was none) and asked to be seated.

About 12:10 I was a bit concerned. My client is very punctual, so my first thought was not that they were running late — but had they arrived and we had missed each other.

A quick tour of the restaurant proved me right. She was sitting at another area of the restaurant wondering the same thing. I am also habitually punctual and always call when delayed.

By the time we connected and were re-seated it was now after 12:15. Both had afternoon commitments.

The Manager came by to apologize and when the bill came, the entire lunch was complementary due to the aggravation and inconvenience.

So how did the restaurant do? Did they put the customer first? Did they create a “Woo Hoo” experience?

My Perspective: As you might guess, I feel they missed some opportunities.

Obviously there were some issues at the front desk that need to be addressed, but that is not what I want to talk about. I’d like to think about the end result — a free lunch. I should mention it was a simple meal with no alcohol, so the cost was not significant — approx $30.00.

I think the Manager gave too much away. Rather than giving us a free lunch, a significant discount would have been fine. That would have shown they appreciated the situation they had created yet they could still have made some revenue. But even that point is debatable.

The real loss was not providing us with an incentive to return and experience the type of service they were capable to providing.

They should have given us each a coupon/certificate of some kind for a discount or free appetizer with a comment something like this;

“I apologize that today we failed in our promise of an exceptional experience. In addition to the discount to address our failure today, I would like to give you each a coupon to entice you to come back again and give us the opportunity to demonstrate the exceptional service we are known for.”

With the discount we were very pleased, but had no compelling reason to return. They fixed our current problem — but weren’t thinking about the future.

With the coupon, the restaurant had now created a reason to choose their restaurant above another. They had made a commitment to do better and had created some positive pressure to get us to return to see if they were up to the challenge.

So when you are dealing with a recovery — are you just looking to correct the current situation? Or do you have an intentional plan to create a positive reason for the customer to return to your location and give you another opportunity to demonstrate that you deserve their business.

Make sure you don’t leave any lost opportunity on the table.

This is the second in our series of articles that looks at leadership capacity and its impact on organizational growth. The full series will be available for download as a white paper once it is completed.

In our last article, we discussed how leadership impacts your organizations ability to grow. Now let’s discuss some of the characteristics that leaders need to impact the growth of their organization.

There are certain core characteristics the majority of leaders possess. However, there are also an additional set of characteristics that define transformational leaders — leaders that have the ability to make an impact on organizational growth.

It is an organizations ability to develop this next level of leadership capabilities through training programs, mentoring, and skill development programs that put organizations in the enviable position to grow year over year without experiencing dips in performance.

Core leadership characteristics

There are certain leadership characteristics that, while important, do not inspire organizational change and growth that help companies develop into innovative, consistent industry leaders.

Examples of these core leadership characteristics include:

• Good judgment
• Communication skills
• Competence or knowledge
• Interpersonal skills
• Confidence

We hear about these leadership characteristics all the time and in many different contexts. While they are very important for leaders to have, there is another level of leadership characteristics that are “must haves” for transformational leaders. These are the leadership characteristics that make an impact and spur growth.

Transformational Leadership characteristics that impact organizational growth

In order to put your organization in a position to grow effectively and on a consistent basis, leaders with the following characteristics not only make them an effective leader — but also a transformational leader:

1. Internal motivation and self-management: Transformational leaders find motivation from within and use that as the driving force to effectively manage the direction of the company. The best natural form of motivation is to love what you do and ensure that your values are aligned with the organization you work with.
2. The ability to make difficult decisions: Difficult decisions are a part of being a leader. Transformational leaders do not back away or put off tough decisions. Difficult decisions are made easier when decisions align with clearly defined vision, values, goals, and objectives.
3. Check their ego: When placed in a position of power, it is easy to let your ego get the best of you. However, transformational leaders keep their ego in check and do not let it get in the way of doing what is best for business. The benefit of checking your ego ensures you put the company first over personal gain and encourages the best input from others within the organization — because when the company succeeds, you as a leader also succeed.
4. Willing to take the right risks: Anyone can take a risk. Transformational leaders take calculated risks that more often than not result in positive outcomes. Trusting your instinct, as well as your team to gather the necessary intelligence is important. Trusting your gut is easier when you have taken the time to research, evaluate and inform your decisions with input from those around you. Failure to take the appropriate risks and make these difficult decisions will inhibit change and your ability to grow.
5. Organizational consciousness: Transformational leaders share the collective conscious of their organization. They understand what actions to take to evoke change, spur innovation, and make decisions that will create growth. Since their own values are aligned with the organization they share a joint purpose with the organization and do not just view their position in the company as just a job.
6. Adaptability: Transformational leaders are willing to adapt and are always seeking new ways to respond to a constantly changing business environment. They know that the second they stand still is when they will be passed by their competitors; which means they are open-minded to change and lifelong learners.
7. Willing to listen and entertain new ideas: It is a rare individual who can build an empire. Transformational leaders understand that success is a team effort and growth is derived from the willingness to be open and listen to ideas from all levels of their organization. Transformational leaders create intentional ways to listen to their team and incorporate their insights.
8. Inspirational: People want to be inspired. Transformational leaders have the ability to make those around rise to the occasion. Inspiration comes not just from a formal motivational speech or simple recognition for a job well done, but by treating people as individuals and taking the time to understand what motivates and inspires their team.
9. Proactive: Transformational leaders are proactive decision makers. They do not wait around for others to make decisions and then react. They are willing to take risks, try new things and take an innovative approach to growing the organization. However, they also understand how to manage risk and make decisions that are backed by research, multiple insights and are well thought out.
10. Visionary: Being a visionary is about setting a realistic and concise company mission, vision, and values that fit the culture of your organization. Transformational leaders have the ability not only to effectively communicate the vision, but also get every person to buy in and work toward that vision by communicating with passion and clearly emphasizing the direction they want the company to pursue.

Transformational leaders constantly strive to have these characteristics. Developing these characteristics is what separates companies that are led by managers versus leaders.

The next article will build on these must have characteristics and examine how leaders can assess organizational leadership to improve their companies’ ability to grow.

Today, more than ever, we need courageous leaders who empower others to reach heights they never thought possible. We need our leaders to expand their capabilities and move outside of the transactional space and into a transformational space that focuses on long term solutions rather than short term gains.

Transformational leadership – growing beyond transactional leadership

Developing your leadership capacity is moving beyond focusing on the day to day operations and expanding your decision making process to focus on long term strategies that are able to sustain business over time.

Leaders need to focus on developing a transformational leadership style that creates positive change and growth. This begins with the goals and vision that are set by leaders and their ability to clearly communicate them to their team in a way that inspires then to buy in.

7 must have transformational leadership qualities

In order to get your team to buy in and be part of your vision for the company, there are certain qualities you must possess to be a transformational leader:

1. A clear vision:
   Transformational leaders have a vision of what they want to achieve and the ability to clearly communicate this vision so that everyone in the organization understands what is needed to achieve this vision. Is your vision clear? Does it need to be refined?
2. Courage:
   An effective leader needs courage; a willingness to take on new challenges, take calculated risks, make tough decisions, and be willing to go out on a limb for something they believe in. Transformational leaders have the courage to create a vision and do what it takes to achieve their vision.
3. Self-motivation:
   Leaders need to fuel their passion from within. Transformational leaders have passion and motivation that people can sense and feed off of it. Are you passionate about your vision and willing to do what it takes to see your vision achieved?
4. Inspiration:
   Transformational leaders, based on their personal passion, have the ability to inspire others and get them to buy into their vision and execute it on all levels of the company. How do you inspire your employees to create change? Are you effective at motivating and inspiring your staff?
5. Know your people:
   Personal interaction is important. The impact of a simple “hello” in the hallway or conversation in the lobby goes a long way into getting employees to feel important and want to be part of the vision a leader has created for the company.  You have the ability to impact each of your team on a personal level. When was the last time you took the time to listen to your team and get to know them as individuals?
6. Set a company standard:
   Transformational leaders model a company standard they expect everyone to follow. They clearly communicate their vision, expectations, and how this standard is to be carried out throughout the organization. What is your company standard? What standard are you setting by example?
7. Follow through:
   While it is a bit cliché, actions do speak louder than words — and when leaders live according to the standard they set, employees take notice. Leaders often promise a lot, but it is the follow through that has a true impact on a leader’s ability to evoke change and get employees to buy in. How do you follow through and ensure your standards are met?

Tips for becoming a transformational leader

Leaders cannot just decide to become a transformational leader. However, they can work on developing transformational leadership by implementing these tips:

• Craft your vision and make it the focal point of the company
• Solicit input from senior management to ensure your vision can be spread throughout the company
• Have a process in place that allows your frontline workers to ask questions and get clarification
• Be clear and communicate the importance that each employees plays in the execution of your vision for the company
• Create actionable steps that align with your vision that can be executed by employees
• Understand what is needed to motivate and inspire your employees to buy in and become part of your vision

When leaders openly accept a transformational style they move beyond day to day functions and operate at a higher level that is focused on creating change in employees and culture that will lead to innovation and growth.

This is our final article in the series of six articles dealing with different aspects of excellent customer service and how it leads to an increase in your overall profitability. It is now available for download as a White Paper at www.BillHogg.ca.

If you have been following along, we have focused on a number of elements of the customer service experience that lead towards building stronger — more profitable — customer relationships.

Every single interaction with a customer affects your business. Whether it is positive, neutral or negative, the goal is to build a loyal relationship so they return again and again to spend their money with your business — and tell their friends. This leads to greater profitability. The loyal customer is the ideal customer and all employees should be focused on building loyalty at every opportunity.

In this article we’re going to cover a few key ways to turn customers who are satisfied into those loyal customers who are responsible for most of your company’s income. Loyal customers mean more profitability for the company and stronger job security for the employees. Customer loyalty literally pays the wages so taking active steps to turn satisfied customers into long-term loyal ones is in everyone’s best interests.

Actively solicit customer input
How many companies demonstrate an interest in what their customers want to see happening in the store? Regular customers may surprise you with ideas that are really good. Of course there are bound to be some that are impractical. But why not ask them what they would like? Tap into them as a vital resource.

There are different ways to get customer input. One method would be to have a suggestion box in a prominent place. Another would be to have a section on your website that enables customers to provide feedback for you to act upon.

Although many businesses can use a similar technique, we’ll use a restaurant as an example. As patrons get up to pay their bill, many restaurants ask “was everything okay…” only to receive a curt “yes” as the patron rushes out the door. A better way to handle this would be to ask them what you could have done to improve their dining experience.
This type of question signals that you are interested in hearing what they have to say and encourages customers to provide feedback on how you can improve — versus just hearing from customers who want to complain.

It’s essential that you take action based on the feedback provided and you could even give that customer a $10 voucher to use on their next visit so they can see for themselves that you have listened and taken action.

Treat every customer like pure gold
Every customer that walks through your door is a chance for you to make a good impression and create a loyal customer. But how do you do this? You have to “read” each customer because they’re all different. Watch their body language. Do they come in and demand immediate attention or do they want to browse first?

We all experience that salesperson that comes up and offers help and if you don’t need it, they stand there like a vulture, watching and waiting. Let them browse if that’s what they want. When they want help, they’ll ask for it. Once you have made yourself available, step back and give them space.

It’s essential that you provide the service they need without being too pushy. You can actually drive them out the door if you push too hard. Once they ask for your assistance, then it’s time to shine. You want to make their customer service experience a positive one so they’ll come back again and again.

Try to personalize each customer interaction to suit the specific customer. If they’re chatty, have a brief chat with them while helping them. If they prefer to simply pay for their goods, handle them courteously and professionally so they can get on with the rest of their day.
Anticipate and meet their needs on every level and they will have no reason to go elsewhere. If you exceed their customer service expectations, they’re well on the way to becoming loyal customers.

Look for Small Ways to Exceed Expectations
In many cases, your products or services may be similar or identical to those of your competitors. If that’s the case, you have to find the small things that will differentiate your experience and add up to an outstanding customer service experiences that not only inspires satisfaction but loyalty too.

Some examples can include: ordering in items that you may not normally stock, carrying heavy items out to the customer’s car, providing a delivery service, offering a free gift wrapping service, ensuring your store registers are always open when the queues build up and being a little flexible in your hours of operation if circumstances dictate.

Customers see these little things as big to them although they may seem insignificant to your overall business. If you’re doing all the extra things that your competitors don’t care enough to do themselves, you’re sure to stand out as a business that really cares for its customers in every possible way.

Build relationships
Everyone likes to hear their name used by other people, whether they realize it or not. Employees should get to know customers and use their name (if appropriate) whenever possible. This creates a relationship that is a little more than just an employee/customer relationship.

If your team greets people by name whenever they enter the store, the customer will feel welcomed and be more inclined to keep coming back. Obviously this isn’t always possible but it’s definitely easier to do than people think, especially if the same customers keep on coming back.

If you keep a database of your customers, you can send them promotional material and discount information on a regular basis. While this may not be a new idea, you can add another function to your database. Utilize it as a reminder service and send out birthday cards to your customers, letting them know that you do care. Make sure the card is handwritten so it’s personal. Perhaps you can include a small gift card or voucher to honour their loyalty and encourage a return visit. This sort of touch lets them know you care.

Conclusion
We have covered a lot of different aspects of customer service in this series. Everything is important when dealing with customers, even if it may not seem that way at the time. Loyalty means everything to the longevity of the company and employees must be trained to have “big picture thinking.”

Without customers, your business would cease to exist and so it’s critical you do everything in your power to ensure that every single customer gets the best treatment, no matter what they need.

It’s not enough to merely satisfy your customers — you can’t differentiate yourself by simply providing that basic level of service. You need to work smarter to build loyalty.

And remember, make them unhappy, even once, and your competition will be glad you did.

This is the fifth in a series of six articles that looks at different aspects of excellent customer service and how it leads to increased overall profitability. The full series will be available for download as a white paper once it is completed.

In the last article, we covered a few of the reasons why customer service should be better than expected — but what happens when we fail to deliver an exceptional experience.

A negative experience often means the customer goes elsewhere with their business — and often they tell their friends. So each lost customer means more than just their lost business, but it results in lost business from their friends as well.

However, research also tells us that if we are able to recover from a poor experience — then customer loyalty actually increases. So if you can turn a negative experience into a positive one — that can lead to loyal customers and increased profits for the company.

In this article, we will cover 5 methods for turning a negative into a positive customer service outcome and helping to keep customers in the process. Customer retention is vital. It’s far easier and cheaper to retain customers than to find new ones.

Remain Calm
If an employee is confronted with an angry or upset customer, they should let the customer vent to express their frustration. No one is rational when they have pent up anger and emotion. Remind employees that the customer is angry at the company and not them as an individual — they’re simply the person in the position of handling the complaint. If an employee took every complaint personally, they wouldn’t survive long in the job.

Once the irate customer has expressed their frustration and calmed down, the employee can ask questions and determine the actual problem. Listen to the real concerns because part of complaint handling is giving the customer the chance to express themselves. Then training can kick in and the problem solving techniques will be put to good use to ensure that whatever the concern, the customer leaves the store satisfied because proper action has been taken to rectify the problem.

Empathize
The employee can diffuse the situation by showing the customer they’re “on their side” and want to help. Sincerity is the key. The customer should feel the employee is there to help instead of arguing or disagreeing with what has been said.

Avoid typical phrases such as “it’s company policy” or “I can’t do that” because they’re negative and will only inflame the situation. Calming phrases such as “Can you tell me exactly what happened?” or “I appreciate your frustration and I am here to help” will go a long way towards winning the customer’s trust.

Lastly, don’t be afraid to say you are sorry for the way they are feeling or their experience. “I’m sorry to hear about your bad experience — what can we do to make it right” is totally different than apologizing because the employee themselves made a mistake.

Evaluate
Review the situation objectively. Ask the customer what would satisfy them and determine the best course of action. Talk through different options if there is more than one to choose from and let the customer provide input on what they want to happen.

In these situations, it’s critical that the employee can think “outside the box” as not all complaints fall within company policy. However, there are often solutions that can be solved by using guidelines that satisfy the customer’s needs and still allow the employee to follow correct procedures to avoid possible future problems.

Take action
Once the optimal solution has been determined, the employee should advise the customer what steps need to be taken to implement that solution. It may be easy to do or it could mean a few different steps need to be taken to ensure the problem is rectified completely.

It’s essential that your team look for every opportunity to exceed a customer’s expectations. It’s one thing to merely satisfy their current problem but if you can take things a step further, the customer will not only be satisfied but may convert to being a loyal customer because their problem was addressed professionally and promptly.

Check back/verify
It’s not enough to just put steps in motion to satisfy a customer. It’s vital that those steps be followed up and your team should ensure that everything has been done the way they promised. Actions may need to happen in other departments or places beyond their control and so follow up may be necessary.

Contact the customer once everything has been taken care of and verify that they’re satisfied with the final outcome. Express appreciation for bringing their complaint back to your company so you had the opportunity to fix the problem.

You should always be looking to go the extra mile for the customer to keep them happy. It may not always work but the effort will often be appreciated. It will help turn the negative experience into a positive one with a hopefully happy ending.

Finally, remember to always thank them for their business and for allowing you to help. After all, they are the customer.

In our final article we’re going to talk about 4 Ways to Turn a Satisfied Customer into a Loyal Customer because that’s where the bulk of the company’s profits are made.

There are many different aspects of work as a customer service representative, regardless of whether it’s face-to-face or on the telephone. Understanding some of the key tips that improve customer service will enable staff to do their job better.

Make people feel welcome
People should always feel welcome when they enter your store or office, regardless of the reason. If they call, they should also be greeted with a friendly voice. This helps people feel more comfortable and the likelihood of them using your services is far greater.

Listen first
You can’t hope to provide great service unless you know what your customers want. Ask questions and listen to what they say. Give them your undivided attention and then help them to the best of your ability. Remember that all customers are different. This means their requirements may also be different, even if only slightly. If it’s within your power, you should help give them exactly what they need.

Say yes as often as possible
Some customers ask for things that may not be considered “normal” but could still be possible. Never say no unless something is impossible — and even then provide an alternative if possible. If you don’t know if something can be done, check with your supervisor before giving a final answer. Then the customer will know that you have at least tried.

Don’t be afraid to apologize
Things can sometimes go wrong, whether it’s your fault or not. However, you’re a representative of the company and if something has gone wrong, offer a sincere apology immediately on behalf of the organization. Customers appreciate acknowledgement of errors and once the apology has been made, you can then help remedy the situation so the customer ends up being a happy one.

Follow-up
If a customer is unhappy, try and help them. That’s a given. However, what often happens is that follow-up promises aren’t kept. If you promise to do something, it’s imperative that you do it. If you promise to return a call on a specific date and time, do it even if it’s to report that you don’t yet have the answer the customer needs. They’ll usually be prepared to wait longer if you’re honest and keep the lines of communication open.

Phone tips
In addition to the previous tips, there are some that specifically apply to people dealing with customers on the phone. Your phone manner is extremely important. You should always be courteous, polite, calm and positive. You’re there to help the customer, no matter what issue they have. Avoid using jargon when dealing with a customer as they probably won’t know what you’re talking about and that will only make them more frustrated and angry.

It’s a common thing to have to place someone on hold. Ask them if it is okay to do so and make sure you keep coming back to them if they have to wait a while. There’s nothing worse than being on hold and listening to the same droning company messages over and over again, or even worse, getting cut off.

If you have to transfer someone, make sure it’s a warm transfer. Introduce them to your colleague and explain the situation before letting them take over the call. Transferring someone into another queue where they end up having to explain the same problem all over again is the quickest way to make your customer angry.

If you get an angry or upset customer, let them vent. Someone else may have placed them in the queue and so they’re already upset when you answer the phone. Although it’s not your fault, apologize in a calm voice and tell them that you’ll endeavour to solve their problem if they can just explain it to you clearly.

Customer service doesn’t have to be complicated. Quite often it’s employees that make it that way through bad behaviour — or simply not caring enough to look after customer needs. If expectations are set early and staff are given the proper training, angry or upset customers will be kept to a minimum.