Spring Issue/Volume 5
 


The Map is a quarterly newsletter of useful information in quick-read format for business people seeking ways to improve their bottom line.

This publication is produced by Gail Finger of Finger Consulting, Laurie Breitner of Breitner & Associates, and Jeanne Yocum of Tuscarora Communications, Ltd. Drawing on decades of professional experience, these business owners and their guest authors target their message to the needs of other business owners and leaders.

The goal of The Map is to provide information that will help you:

  • Become more competitive and profitable
  • Work more effectively and successfully
  • Create harmony and energy in your organization
  • Manage significant change
   
 
   
 

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The Map includes information appropriate for a general audience. However, use of these opinions is no substitute for legal, accounting, investment and other professional services tailored to your specific organizational needs.

COPYRIGHT © 2004
 
 
   
 

Invest in Customer Service to Improve Profits by Laurie Breitner
  Studies across industries have shown that a 5 percent increase in customer retention can increase profits by more than 25 percent and double overall growth. One important way to support customer retention is through excellent customer service.
> read more...		  
 
  Care for Your Customers with Good Writing by Jeanne Yocum  
  As a consumer, how many times have you received written communication about a product or service that was confusing or even incomprehensible?
> read more...		  
 
  Does Your Customer Service Staff Fit Your Success Profile? by Gail Finger  
  Often, companies minimize the importance of getting the "right" person in customer service because the role is viewed as "unskilled" and therefore not worth the time, effort, or expense. This mistake is common in a labor market like the one we have had during the past couple of years.
> read more...		  
 
 
   
  From Hornets to Honey: Five Steps to Diffuse Volatile Situations in the Workplace by Jan Morton  
  Almost everyone, especially front line customer service staff, has been confronted by an enraged, hostile individual. In fact, the most commonly asked question in my customer service training workshops is, "How do I handle it when someone is really angry at me?"
> read more... 		 
 
Invest in Customer Service to Improve Profits
by Laurie Breitner
     
 

Studies across industries have shown that a 5 percent increase in customer retention can increase profits by more than 25 percent and double overall growth. One important way to support customer retention is through excellent customer service. Employee longevity is a critical component of outstanding customer service. It takes time for employees to learn the complexities of an organization’s products, services and processes. Research consistently links low employee turnover to increased customer loyalty and consequently to higher profits. An engaged and loyal front-line workforce is a formidable advantage in today’s hotly competitive marketplace.
The link between customer service, customer retention and profitability are well documented.

One study found that that 68 percent of customers who stopped doing business with a company did so because the employees who served them treated them with indifference.
 
  Here are some ideas to help your customer service staff feel more confident, competent and appreciated.  
     
  1. Don’t skimp on customer service training. Customer service is often the only direct point of contact between a company and its customers. The quality of an organization’s customer service can be a great advantage or a serious problem. On-the-job training or in-house training provided by existing staff does not result in front-line workers at the top of their games. Also, training in only telephone or face-to-face communication is inadequate if customer service workers also communicate through e-mail, fax, voice mail or other methods. On-going professional training that includes all needed skills will pay dividends in a workforce better equipped to handle growing and changing customer demands.

2. Give your customer service staff authority to satisfy customers’ demands. Little is more frustrating for both the customer and the front-line worker than having to appeal every decision to a supervisor. Policies that tightly limit authority are a lose/lose proposition. Customers are forced to tell their stories over and over; staff time is wasted if it takes two or even three people to resolve what one could have handled.

Keep customer service staff informed about company goals and let them use their best judgment to satisfy customers’ needs. If supervisors later disagree, rather than second guessing decisions, examine whether the action was correct in light of company goals, learn and move on. Front-line workers who have the authority to rapidly satisfy customer demands will face fewer irate customers, get a better sense of completion, be more in control of their work and feel supported and appreciated by management.

3. Customer service is a place for your best and brightest. Retaining satisfied, loyal customers is key to profitability. Studies show that it costs ten times more to attract and serve a new customer than it does to keep an existing customer. Be sure your customer service area is staffed with highly skilled, well-trained employees who can help to retain your hard-won customers. Put your company’s best foot forward.

4. The customer is not always right, at least for your company. A small percentage of a company’s customers, what Larry Selden, coauthor of Angel Customers & Demon Customers, calls the "demon" customers, can consume 75 percent of profits. They take time away from loyal, profitable customers. Companies need to target efforts at profitable customers and either change the habits of unprofitable ones or get rid of them. Empower your customer service workers with training to handle difficult customers, but if they are really demons, give employees the authority to set limits. Do not expect customer service workers to take abuse; allow them to "fire" your demon customers.

5. Involve your customer service workers in company changes that will affect them. If there’s a product or policy change, customer service should be the first to know and, ideally, be involved in making decisions. Front-line workers interact closely with customers and can offer their perspective on suggested changes. If it’s a change that will be unpopular, like a price increase, make sure customer service staff understand the reasons for the change and are armed with information they’ll need to diffuse discontent. If there’s a product or service improvement, customer service workers will need information to help get the good news out.

6. Expect everyone in the organization to spend time with customers. No one should be exempt from participation, especially top managers. Not only will this provide insight into day-to-day challenges faced by customer service staff, it may offer senior managers valuable information about how their customers’ view the company’s products and services. Managers who work side-by-side with customer service staff clearly demonstrate the importance of that role; employees who feel their work is valued and appreciated will be more engaged and loyal.

In today’s hotly competitive business climate, superior customer service is an increasingly important way to outshine competitors. The proliferation of products and channels through which to buy them adds to the demands on customer service workers. As customers and their buying patterns change, methods for providing customer service must change too. Customer service workers shouldn't have to face each day with dread. Give your staff what they need to thrive in today’s marketplace.		  
     
  Laurie Breitner helps businesses on the road to success through strategic planning, organizational development, project management, operational improvement and technical and process documentation. www.breitnerandassociates.com  
   
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Care for Your Customers with Good Writing
by Jeanne Yocum
     
 

As a consumer, how many times have you received written communication about a product or service that was confusing or even incomprehensible? A friend recently received a newly formatted utility bill with no accompanying explanation. She told me that the bill was so unlike the company’s previous communication that it took her a while even to realize what it was! In contrast, another company that was also updating its billing format sent an advance notice with a complete explanation of what to expect, including a sample bill.

Which company made a better impression? And which company probably received a flood of calls from confused customers who were unable to interpret their bills?

Clear written communication is a must for good customer service. Sending customers murky messages will lead to higher volumes of calls to your busy customer service staff. The final outcome: frustrated customers and overloaded front-line workers.

In today’s hectic world, customers are inundated with information. Wasting their time with confusing messages is not an option if you want to have a reputation for good customer service. Here are ways you can assure that your company puts its best foot forward in its written communication:

  
     
 
  • Become familiar with readability tests. The Flesch Readability Test, for example, involves counting syllables, words, and sentences in a paragraph and then putting the numbers into a formula to come up with a readability score. Years ago, when I worked for a large insurer, the state mandated that we apply the Flesch Test to our insurance policies. Yes, the test was tedious, but I quickly found that it was teaching me the fundamentals of readability—short words, short sentences, and short paragraphs. Now, even years later, I regularly think back to the Flesch Test when I’m editing copy. It’s amazing how many unnecessary words can be cut out of nearly any first draft!

  • Consider a specialized writing course. Information Mapping, an international company based in Waltham, MA, helps professionals in all types of organizations master the skill of making complex information easy to understand. Several friends who have participated in this training program are among the clearest communicators on paper that I know. To learn more, visit www.infomap.com.

  • Understand that different mediums require different writing techniques. The Internet, for example, requires a whole new way of writing. Because people scan when reading on the Web, messages should be approximately half as long as they would be in a letter or brochure. Key words should be highlighted and bulleted lists used wherever possible. Sun Microsystems’s Web site contains an excellent tutorial on how to write effectively for your Internet audience; check it out at http://www.sun.com/980713/webwriting.

  • Test drive your customer service message. Something that may be crystal clear to you may make no sense at all to customers. This happens because it’s all too easy to forget that you are privy to important background information that your audience knows nothing about. Of course, it is critical to involve your front-line workers so they can provide guidance and prepare for any questions. In addition, it makes good sense to test your message on a few people outside of your organization. See what questions they have. These are the same questions that are going to come into your customer service lines!
  
 

 

  
  You fight hard in the marketplace to get customers. Take extra care when communicating with them and you’ll be sure to keep them for a long time.
   
 

Jeanne Yocum, president of Tuscarora Communications, Ltd., has over 20 years' experience in planning and implementing corporate communications and public relations programs. She has worked with clients in a wide variety of fields, including commercial and residential real estate, retailing, health care, financial and legal services, manufacturing, IT analysis, management consulting, architecture, and banking. She also writes book proposals and ghostwrites business books. www.yourghostwriter.com

  
     
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Does Your Customer Service Staff Fit Your Success Profile?
by Gail Finger
     
 

Often, companies minimize the importance of getting the "right" person in customer service because the role is viewed as "unskilled" and therefore not worth the time, effort, or expense. This mistake is common in a labor market like the one we have had during the past couple of years.

With many people seeking work, companies have been able to fill open slots easily. Sometimes filling a customer service slot with anyone who seems reasonably presentable works in the short-term, but long-term, it isn’t benefiting your business. When an employee doesn’t have the right mix of skills, talents, and competencies to do a superb job, your business suffers.

  
     
 
Customer Service departments have notoriously high turnover rates.
If your company doesn’t value assessing candidates for these positions, it’s time to think again.
 
 

 

  
  Lack of attention to selecting customer service personnel can have devastating effects on your business.  
     
 
  • It is critical to consider the high dollar cost of frequent turnover, including impacts on current staff, managers and training.

  • Customers become frustrated and dissatisfied when customer service reps can’t answer questions because they’re new.

  • When reps don’t communicate in a professional manner that shows your company cares about and respects its customers, your business loses.

  • Poor customer service affects customer loyalty, and no business can succeed without loyal customers.
   
  One of the best ways to ensure that your customer service department provides high quality service is to systematically determine whether candidates fit the profile of a successful customer service representative in your organization.

Significant research has been done to define which competencies are important for customer service folks to have. The basics include:
   
 
  • Good communication skills
  • Ability to handle stressful situations
  • Consistency
  • Reliability
  • Persistence
  • Ability to handle rejection
  • Emotional control
  • Empathy
  • Self-confidence
  • Ability to analyze and solve problems
   
  This information is helpful to start, but you can ensure an even better outcome by customizing a success profile for your organization. Very cost-effective, web-based tools exist for this purpose.

Each business has its own unique culture and way it wants its customers to be treated by its representatives. You may want reps to have some specific qualities that the generic model doesn’t envision. For example, your customer service staff may need to persuade, or, depending on the product or service you provide, they may need to have high attention to detail.

Creating competency models is a painless and cost-effective thing to do. Three well-known resources can help you to design your own customer service competency model and move ahead of your competition in creating lasting customer satisfaction:
   
 
   
  Use one of these tools to create a competency model that blends your company’s unique requirements with the basic position needs and helps you assess candidates’ fit with that profile. You’ll be on your way to building a winning customer service team!
   
 

Gail Finger is an organizational, leadership and management consultant with over 20 years of experience in the areas of human motivation, performance, and the psychology of change. She offers a wide array of services and programs that result in a highly motivated and productive workforce. They include leadership and management coaching, team development, succession and promotion planning, pre-employment assessments, and a variety of educational and experiential seminars. www.fingerconsulting.com.

 
     
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From Hornets to Honey: Five Steps to Diffuse Volatile Situations in the Workplace
by Jan Morton

Almost everyone, especially front line customer service staff, has been confronted by an enraged, hostile individual. In fact, the most commonly asked question in my customer service training workshops is, "How do I handle it when someone is really angry at me?"

By diffusing anger in an unhappy customer, boss, or colleague, something magic happens. You and that person are no longer at odds, focused only on your differences. You are both in control, and together can use your energy to solve problems and make a real connection.
     
  Here are a few basic points to consider that will help you build competence and confidence in your ability to handle hot situations.

As emotions increase, logic goes right out the window. Have you ever interrupted an aggravated person to suggest a solution, only to have emotions escalate? As the saying goes, "People don’t care how much you know until they know how much you care." They need to speak their piece and feel heard before they’re ready to find a solution to the problem.
When people are upset, first, they want to be heard, only then are they ready for solutions.
 
  This requires great patience. You may have heard their complaint many times before and have a solution in mind. Make time to listen; it really pays off. A very effective way to demonstrate that you have heard the person’s issue is to use active listening, that is paraphrase what you’ve just heard. Restate the gist of what was said without judging, agreeing, disagreeing or adding anything. When you paraphrase correctly, the only thing the other person can do is agree. Active listening is the quickest route to move from adversary to ally.  
     
  Here is the five-step formula to follow the next time you encounter an angry person at work:  
     
  1. First and foremost, listen.

2. Do not interrupt, argue or judge.

3. Take personal responsibility for understanding their message. If the message is confusing, ask questions to clarify. Try "I’m a bit unclear, let me see if I understood," rather than "You are not making sense to me."

4. Actively listen. Paraphrase or mirror what you’ve heard to demonstrate your complete understanding of their concerns and replace conflict with consensus.

5. Finally, when emotions cool, ask what solution they would suggest. If their remedy is not possible or they have no ideas in mind, propose alternatives. Work together to create mutually agreeable solutions.		  
     
  This simple process can yield powerful results. It would be well worth your while to try it the next time someone aims an angry outburst your way.  
     
  Jan Morton founded Self-Us-Team Collaborative in 1991 to serve the training and teambuilding needs of corporations, small businesses and not-for-profits. She has 20 years’ experience in training and facilitation. Jan holds a BA in Art/Education, is a graduate of the Creative Training Techniques Institute and is a certified literacy teacher. She helps organizations build effective teams, motivate and energize employees and mediate conflict.  
     
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