Overcoming a Customer Service Disconnect

A friend of mine works for a large, highly recognizable insurance firm.  We got to talking about customer service and she shared the fact that in her company the historical culture was the opposite of customer focus.

“We were the only place certain people could obtain insurance and so they were lucky we even took their call.  We didn’t need to offer service because they needed us more than we needed them.”

However, as time went by, competitors began to offer insurance to those same “uninsurable customers” and so her company had to expand their customer base. 

“We’ve learned that it costs a lot to advertise and attract new people but costs almost nothing to resign an existing customer.  However, resigning a customer requires we offer services we just aren’t trained or encouraged to offer.”

So what do you do when there is a disconnect between company  culture and doing what is best for your customer?

I guess it depends on where you are in the management hierarchy.  If you are in a position to make changes – then you need to make a case for a change in philosphy. 

“Companies spend 6 to 10 times more to acquire new customers than they do to retain existing customers. But a 5% increase in customer retention can have a bottom-line profit increase of 75%, depending on the industry.” 

-Don Neal, Director of Business Development for Hallmark Business Expressions

That fact alone should be enough to start the conversation about changing to a more customer-focused culture.  For it is only through exceeding our customer’s needs that we gain their loyalty.  And when customers are loyal they remember – refer and return.

Still unconvinced? 

“Profit in business comes from repeat customers, customers that boast about your project

or service and that bring friends with them.”         – W. Edward Deming

Although some may still view customer service as touchy feeling and not measurable – the opposite is true.  Just ask your customers.  Exit surveys and Mystery Shop programs will help uncover how your customers really feel about you.  If referral-based marketing is 80% effective in persuading someone to try your company then isn’t it important that what is being said about you is positive?

But here’s the kicker – just deciding to become more customer-focused won’t change a thing.  Every person within the organization needs to understand the value of customer service.  Every function – every role needs to support the customer-focused strategy.  Every training program needs to be centered around meeting/exceeding customer expectations and ultimately compensation should be tied to customer service. 

If bonus programs are still tied to profitability or sales dollars – then the focus will be on making the register ring.  Not the customer.  Customers don’t want to feel like a transaction – they wanted to be treated as people.  They need to feel like they matter.  If you are too busy ringing the register – the customer becomes the means to an end.

Big companies are in a world of hurt right now.  They may realize they need to make a change but the process of actually changing will take herculean efforts.  However, entrepreneurs can turn on a dime.  If your focus has been on the bottom line and you realize that customer service needs to play a more important role – today is the day to start your new focus. 

Gather your staff and ask them:

• What does our customer want?
• When a customer has been really pleased – what was it about the experience they liked?
• If you could change one thing you do to be more focused on the customer’s needs – what would it be?
• What do you need to make it happen?
• How can I help?

Start today.  You can overcome the disconnect between thinking about being a customer focused business and actually being a customer focused business.