Tom Peters and Robert H. Waterman introduced us to modern Customer Service with their breakthrough book “In Search of Excellence” over 25 years ago. Many great companies have gone on to adopt the World-Class CS culture with great success.  I have visited many companies who created their own brand of World-Class Customer Service and I’ve listed a few of them at the end of this article.

World-Class Customer Service is not for any particular sector or industry – it’s for every organisation whether Government, Charity, Public or Privately owned. So don’t let anyone tell you that World-Class Customer Service is not possible in any business or organisation – including Government! So what is it that these and other companies have and most others do not?

It is called World-Class Customer Service – or making sure your customer is delighted, excited, grateful, astonished enough that they will come back for more! I challenge anyone who has been treated courteously, promptly, graciously, sympathetically and made to feel valued – not to remember or enjoy that experience!

Great Customer Service – is more fun, try working for someone who believes in excellence – in going way beyond expectations – now go and work for someone else – know what I mean? A Great Service organisation is more challenging, there is more energy around the place and people are naturally happier and more knowledgeable about their work. Fewer mistakes are made in companies that strive for excellence therefore the cost of non-conformance is much less.

If it is not extraordinary service then it’s not World-Class Customer Service! The sort of Customer Service that I am talking about gives IBM its longevity as being the gentle and intelligent giant of the Technology Sector, or Ritz-Carlton Hotels their ability to remain in a guest’s memory 10 years after a one-night stopover! It gave Nordstrom its passion for ensuring that you are 100% delighted with your purchase and if not they will give you your money back and no questions asked, or Granite Rock, a Quarry company who say “Yes we will” before you even ask the question!

As I travel around Airports, Government Departments, Supermarkets, Shops and any organisation that serves us, I am constantly disappointed in the deterioration and level of Customer Service. Whilst some companies strive to exceed customers’ expectations – most do not. My memories are dimming of visits to Woolworth’s where the experience was always worse than you expected! If Woolworth’s Management had enrolled their key staff in the Ritz-Carlton Leadership Training Centre they would not have gone bust. You see, customers become loyal to organisations that provide them with a great customer service experience and reward them with more purchases and return visits.

Note the difference between

Nostalgia

“Woolworth’s was where I bought my first LP“

and

Excellence

When I stayed at the Ritz Carlton the porter arranged to forward my extra luggage to my next hotel with one phone call and no fuss and the room service was so good I didn’t want to leave the room

- I can’t wait to return!

In this article I am interested in the excellence of customer service; businesses like Woolworth’s simply didn’t get it and look what happened to them!

The reason that great companies spend so much of their efforts on achieving World-Class Customer Service is simple – it improves their profits and their employee’s experience. It also enhances their reputation – and you can almost taste the “feel good factor” of employees who work there. Striving for World-Class Customer Service is so worthwhile I guarantee you that you will spend all your time achieving what others say is impossible.

Hard to choose my favourite Customer Service story, let’s try this one from Sewell Village Cadillac in Dallas, Texas:

The local Hospital Matron had booked her car in for a service – she declined the use of a replacement car which all customers are offered at Sewell’s – she asked that her car be brought to her at the hospital when it was ready and in any case no later than 11am as she had an important meeting to go to. Unfortunately the agent had typed a noon delivery on the Customer Service System at Sewell’s – when the Matron called them at 11.10am to ask where her car was – the agent immediately realised his mistake. The General Manager of Sewell’s hearing what happened and knowing that the car was in fact ready, drove the car himself over to the Hospital, followed by the agent in another car. Arriving at the Hospital, they apologised to the Matron and informed her that there would be no charge for the service performed that day. They escorted her to her car and saw her drive off to her appointment. As she drove away, the Matron noticed that a large bunch of flowers and a box of her favourite chocolates had been placed on the passenger seat together with a note and two tickets to the Opera.

The meeting the Matron was going to was actually an interview on the largest Dallas Radio station to talk about the new Hospital Wing that had just opened. At the beginning of the interview and live on air, the Matron told the listeners the story about her car experience that morning. Sewell’s were inundated with phone calls and enquiries for new cars and car maintenance requests for months after this event. This story took place some 15 years ago – Sewell’s continue to push the boundaries of World-Class Customer Service – the people who work there will do anything they can to keep their customers happy – every day.

IBM told me once that (as a key supplier) they felt that I cared more about their products than they did. Do you have any idea how much faith customers will put in you if you care and perform great deeds on their behalf. World-Class Customer Service is so important that we should teach it to every student in school. Not understanding the significance that World-Class Customer Service can have to our economic well-being is unacceptable. Just think how much better our life experiences would be if a new generation of employees understood the true meaning and value of World-Class Customer Service – and executed them every day. The new generation would be better-trained, happier at work, more competitive and productive than any past generation. Most of all they would be better equipped personally to be successful in the future.

You see, World-Class Customer Service relies on the skills and personality of the individual; it prospers when people make decisions for themselves and for the customer – without referring upwards. It is at its best when the lowest grade employee serves you with great service, the sort of service that goes beyond expectations – one that customers remember and can’t wait to tell others about.

If you are in the minority and work in a company or organisation that has wonderful customer service, then send me details or a case study and I will carry your story on this Blog. If you are one of the millions who are fed up with the poor Customer Service you encounter every day, join me in fighting for World-Class Customer Service to become part of our daily experience instead of something that we seldom witness. Maybe we could organise a Great Customer Service Day – imagine all the smiles and astonished customers!

Let us fight for Great Customer Service – in our Health Services, Police Service, Local Authority, Petrol Stations, Corner Shops, Airports, Train Stations, Supermarkets and Hospitals.

Stand up for World-Class Customer Service:

Become a beacon of hope and confidence in what you and your organisation do

Train employees in all sectors and levels to take responsibility for Great Customer Service

Everyone has to have authority to do what it takes to provide a Great Service

Let employees follow their instincts – I bet their right!

Do something new for your customer – astonish and delight them – every day

Trust your employees – they do care if you train them and get out of their way

Finally, Customer Service is not for the faint-hearted, as it requires you to give up control and train and encourage front line people to use their own judgement every day. Striving to exceed your customer’s requirements is good business and makes you and the customer feel good and we could all do with a bit of that!

World-Class Customer Service is good for business and profitability, it improves the individual, it encourages customers to return again and again, it helps increase profit, lowers costs, improves products and services – it makes things better and better still.

Send me your case studies and I will publish them here.

Alex

References;

South West Airlines

http://www.southwest.com/about_swa/?ref=abtsw_fgn

The Ritz-Carlton Hotel Company

http://corporate.ritzcarlton.com/en/About/Default.htm

Charles Schwab

http://www.schwab.com/public/schwab/home/why?cmsid=P-985960&lvl1=home&lvl2=why

Nordstrom

http://about.nordstrom.com/aboutus/companyhist/companyhist.asp?origin=aboutus

Longo Toyota

http://www.longotoyota.com/MiscPage_3

Granite Rock

http://www.graniterock.com/

Sewell Village Cadillac in Dallas

http://www.sewellvillagecadillac.com/AboutNewsEventsDetail.aspx?NewsID=7

My career was going just great – I worked for a great company and had gained a reputation as a Trouble-shooter and Turnaround Manager, perhaps also some would say I was a bit of a Maverick. Whilst I provided the drive and hands-on change management leadership – the company supplied me with the comfort of having a multi-billion dollar corporation behind me. Specialist staff, experienced operations people and top-class executives always available to help me when necessary. My projects had included closing down a disastrous union-dominated site, playing a lead role in transforming a government-owned facility into a dynamic highly productive enterprise, saving a multi-million pound long-term manufacturing contract from being lost, and removing an entire Management Board that did not understand the meaning of strategy.

I would not underestimate the skills required to undertake any of these assignments, but what made them achievable was the corporation’s full backing and encouragement. However, the particular project I will uncover now was somewhat more challenging, this time without any Corporate backing or support. Indeed I was told no – in no uncertain terms!

The division I was running had moved from a basket case (£10m sales/ (£1m) loss) to a profitable, high growth, award-winning company. We had trebled the sales and achieved an excellent profit ratio. I had cajoled and threatened the young workforce to either out-perform our competitors or face closure. We trebled our training budget, got rid of the managers who had become obstacles to success, and encouraged the employees to take an active part in running the business, including making decisions on recruitment, investment, quality, customer service and product development. The division had won a multi-million pound two year contract under the noses of the sitting local supplier who was located almost next door to the customer’s assembly line. Despite the fact that our plant was 200 miles from the customer’s assembly line – we had won 90% of their business! Our plant had become a winner and was held up by our customers and suppliers as a model of how committed employees can make a real difference to profitability, service and quality levels.

So when the new contract came up for renewal, we were confident that we would hold on to what we had worked so hard for. Although the process was on a Tender basis, we decided to not only present the Tender Documents, like everyone else – but unlike everyone else – also requested time to present our case via a PC Presentation (this was the early 1990’s and before the digital revolution) the presentation involved famous cartoon characters and our employees – with a voiceover from yours truly helped by one of our ‘sexy voiced’ customer service ladies. Knowing our desire for the unusual the customer’s purchasing group had gathered together their senior and middle management teams to be in attendance in their main management auditorium for our show. My young dynamic team showed their unique talent and wowed the blue-chip audience. The PC presentation included cartoons and great music, we demonstrated just how committed our employees were to the customer. We received a tremendous applause and great encouragement.

Within weeks the good news came through that we had been awarded another two-year contract with additional volumes and good pricing. But the contract was clear – the client would award the contract based on us creating a new “near-site” facility – to be located within a short distance from their assembly line. It was vital to them that key suppliers were “clustered’ near to their assembly line as they had to meet the ever increasing demand for fast response to their growing market.

I was therefore delighted to present our capital appropriation for a new “near site” facility to be underwritten by the new valuable sales contract, at the next Board Meeting. The Chairman was generous in his remarks about my personal leadership in not only turning the business around – but also growing it profitably and quickly. He held me up as a beacon of hope to the Board – we should put him in charge of all our under-performing global operations! There was a sting in the tail however – in the next breath the Chairman announced that there was to be a freeze on any new capacity/plants being approved for the foreseeable future! The Group were suffering large losses in some parts of the world and all capital and expansion would be frozen!

Back home I wondered what could be done without corporate support, they had backed me all these years until now.  I could not understand how they could not back me – especially since we had just won a large contract from one of the world’s largest companies.  I knew that I would have to face the customer sooner or later and try and explain our problem.  It was then that I decided to find a solution rather than give my customer a problem.  I felt that it would be wrong to simply take the corporate line and try and explain our Group issues to a customer who was growing strong and needed help.

George was Managing Director of one of our supply companies – he and I were good pals as well as business associates. I found myself sitting in his office a few days later. We were both suppliers to the same customer. I always liked walking around plants (management by walking about is still a good philosophy even today), and during this particular tour George showed me his warehouse next door to his production plant, which was empty. He also said that he often employed temporary employees to take care of busy periods. I suggested to George that I might want to buy him a drink at the local bar – George asked if I was feeling well – as it was unusual for me to buy the drinks! Drinks in hand George and I settled down – are you ok – you look a bit excited? I’m ok George – have another drink because I need you to say yes to what I am about to propose!

The penny had dropped in my mind – within an hour George agreed to let me have the use of his empty warehouse and also supply me with enough employees to start our new “near site” operation. Exactly how much will you be paying me for the use of the warehouse? Here is the deal George – you let me have the warehouse for nothing and you employee the number of people I need at any time – let’s start with 60 employees! They will need training and we will want them to work shifts – I would like them to start work within two weeks.

George insisted in buying the next round of drinks – excuse me young man but did I hear you say that you want me to let you have the warehouse for nothing and I have to hire the number of employees that you need? I think you missed the bit about what you will pay for this favour? I bought the next round and we made a deal that meant that George would receive 12.5% above any costs he incurred for as long as the deal lasted. We concluded the night with a plan to start the new business up under our name next month.

Terry – come to my office – Terry was a dynamic young production manager, a rather harsh young man – but someone I could trust to deliver. Yes boss what can I do for you? You will like it there Terry – up where said Terry? Never mind the detail – I want you to go there, hire a Portable Office and park it outside George’s warehouse. I have told George that you will be in charge – he will provide you with up to 60 employees, go and buy some paint brushes to clean up the warehouse that he is letting us use and get it fit for use. I found a nice flat for you – now go home and pack your bags. How long for boss? Don’t ask – I said.

Being a short distance from the customer’s assembly line George’s warehouse provided the perfect solution for our customer and would avoid me going cap-in-hand to Head Office. I did need to work quickly and keep things to myself – at least for a while.

Within two weeks we had re-painted the warehouse and rented the portable office for our Terry. George supplied us with some 60 temporary employees working on 24hour shifts. We had created I believe the world’s first “Virtual Factory” – we did not own nor had we a lease on the building; we had no employees on our payroll except Terry and he was on our division payroll in any case.

On my next visit to the customer the Head Buyer said – when could I come and see the new facility you agreed to open as a result of the new contract? Anytime you want Frank! The customer was delighted that we had moved so fast and decided to increase the sales volumes to us. They were impressed by our new facility and remarked how well trained and committed the employees were.

A few months later back at Head Office – I was summoned to the Chairman’s office and asked to explain why we had sales of over $500,000 per month in a region where we did not have a presence – where as far as he was aware we did not even have a facility. The Chairman listened carefully to my story – thinking that the end was near I finished with – and the customer has just called me to say that we have won their Vendor of the Year Award! – his reply was – maybe we should put you in charge of our investment strategy – congratulations and well done!

Postscript

Within six months the Group Directors had approved my proposal to build a state-of-the-art facility near our customer. The fulfilment centre is still in business today some 15 years after this event. I exported the “near site” business model to other parts of the world and today it is a highly successful Supply Chain Management Company.

George eventually sold his warehouse and plant to a Supermarket chain. I managed to get him some rent-free period from the local development people so he could build his new facility – coincidently next door to the one we moved into to.

Message for new executives and those budding entrepreneurs:

Learn what strengths large companies have and where their weaknesses are. Play to their advantages, but don’t be afraid when they turn you down, as they surely will – you can either leave in a huff or fight for your customer.

Never give up when you know you have the customer on your side, a winning team and good knowledge of your market. You should pretend that you have all the resources you might need, even if many are against you. Don’t quit, do what is right and be kind to your friends. Your Network costs you little and may even save your skin one day!

This article is dedicated to George who put up with my crazy ideas and trusted me with his money. “Lang may his lum reek” George is not his real name – it is a virtual one – just in case anyone wants to borrow from him again!. The story however – is true.