WHY? Do Some Companies Get It So Right - Very Low Variation If Any, Ever?
Craig Cherry
Expert on customer loyalty, uses research to drive revenue. Speaker, Trainer, Coach, Managing Director and Founder of 'The Loyalty Zone'
This week I’m asking myself WHY? WHY, is it that I am constantly told by friends and colleagues that I should work with this company or that company because as customers they experience a massive variation in the customer service they receive?
WHY? Do I get told about this massive variation between stores within the same chain of stores?
WHY? Do I get told about the variation between people within the same team?
WHY? Does it depend on who answers the phone as to what level of service we receive?
And the same variation is mentioned when discussing hospitality venues, supermarkets etc….
WHY, are customers experiencing variation in the service they receive and more importantly,
WHY, is that level of variation considered acceptable by these companies?
WHY? Do some get it so right - very low variation if any, ever?
You know, I'm talking about those companies you know without a doubt deliver a consistent - 10/10 customer experience.?Your previous experience tells you there is no or a very low level of variation, you have come to rely on them, because you know what you're going to get time and time again.
Like Apple, who I often mentioned in my blogs because there is very low variation if any, ever - it doesn't matter what store you go into around the world they deliver 10/10 customer experiences.
And then, there are also examples like, when you are on a plane and they do the safety demonstration,?there is very low variation if any, ever. There is no room for variation – I wonder what might happen if this wasn’t demonstrated exactly as it has been designed. What might the consequence be.
Or I'm not a coffee drinker, but I know people who only go to the same place, because they consistently make a really good quality coffee. Again, there is very low variation if any, ever.
And of course there’s hotels, the rooms are always clean and the beds are beautifully made, yep, you got it – there is very low variation if any, ever.
So, what do these examples have in common? The bottom line is that in each example - It's what people do consistently that generates the result.
These companies are consistently looking for the variation.
The job of a leader is to not only ask performance-related questions but also to find the right answers and take the right course of action.
They know the value of Customer Appreciation and they know that Customer Appreciation always Minimises Variation.
I call it Customer Appreciation vs Variation.
And, they know,
Systems that identify?the action, not the intention, and identifying?who is responsible to implement?and?by when?will build on best practices and decrease the variation; the areas of improvement.
These companies invest time and money into,
Understanding the variation.
Developing service standards to minimise it.
Training those service standards into their teams.
Constant monitoring of performance.
Providing ongoing one on one and group coaching.
These companies are committed to coaching for improvement - non-performance (reinforcement) and praise (catching people doing it right).
So much so, they even have a process to manage the frequency of interaction across all levels of competence.
For example, I have a new researcher on my team, she has been with me for 2 weeks now and she is capturing really good quality data. WHY? Because I am committed to coaching for improvement at the appropriate frequency of interaction.
The first week, my senior researcher has checked her data at 12pm and again at 5pm and provided her with feedback – both improvement and praise.
The 2nd week,?my senior researcher has checked her data at 5pm ONLY and provided her with feedback – both improvement and praise.
Coming into the 3rd week, my senior researcher will check her data at 5pm on Wednesday and Friday ONLY and provided her with feedback – both improvement if required but mainly and praise.
To note, it is part of my coaching for improvement process to ensure even my long term researchers (some have been with me for many years) have their data checked at the end of the month, or at the end of a project whichever comes first.
It is also part of my coaching for improvement process to ensure the first 10% of any new clients research is conducted by my senior researchers. This ensures we have very good quality data that can be used as a benchmark for training and coaching others on my team.
Variation is the Devil for Appreciation
Which brings me back to the companies I get told about. I would assert these companies are NOT, looking for the variation.
Nor do they know the value of Customer Appreciation and that Customer Appreciation only happens if they minimise variation.
Or, that the job of a leader is to not only ask performance-related questions but also to find the right answers and take the right course of action.
And therefore, those companies, do NOT invest time and money into,
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Understanding the variation.
Developing service standards to minimise it.
Training those service standards into their teams.
Constant monitoring of performance.
Providing ongoing one on one and group coaching.
And, if that is the case – then they certainly cannot commit to coaching for improvement - non-performance (reinforcement) and praise (catching people doing it right).
How can they? WHY would they? In their world, there is no variation and therefore no need for improvement.
Consistency is key
Standards are more about people’s behaviour and peoples interactions, and the procedure is defined as a non-personal interaction.
Where there are human interactions standards provide the?behaviours?required to ensure clarity, consistency, and efficiencies within our teams and our business.
Not doing this means your team will do what they think rather than utilise the best practice standards.
So, think about your team, and think about the standards you want to cover. Include, providing feedback to your team, your customers, your contractors etc, look at inbound and outbound communication as well as handling complaints.
For example, how do you communicate with your team?
- On the internet?
- Telephone?
- Email?
- Face to Face?
Once you have listed the areas you would like to address, list the standards that you would like to implement.
And then look at HOW you will create these standards, how will you clarify best practice in each of these areas and WHO can support you in this process.
Let me give you a hint;
Everything you need to know to create solid grounded standards has been provided to you by your team.
- ?What does your team tell you is important to them?
- What do your team say they want from you?
- What have they asked you to continue to do or to change?
When developing standards with my clients I always look for the ‘best practice champions’ in the team.
I want to know two things –?Who are most effective??and?What is it they do?
Why do I want to know this?
Because I DON’T want to recreate what’s working – I want to capture what has proven to be working?really?well and create this as best practice.
Best practice standards that can be replicated, systemised, and trained into these teams.
Here’s Apples approach to customer service:
Focus on Value Creation, Not Sales
Lastly, one of the core tenants of Apple retail stores is the idea of enriching and creating value for customers, not just selling them stuff.
In an interview with the Harvard Business Review, former SVP Retail Ron Johnson talks about how?"retail isn't broken, stores are"?and outlines what makes Apple stand out from the crowd and how others can follow suit in the new rulebook they've created for retail.
?"A store has got to be much more than a place to acquire merchandise. It’s got to help people enrich their lives. If the store just fulfills a specific product need, it’s not creating new types of value for the consumer. It’s transacting. Any website can do that.
But if a store can help shoppers find outfits that make them feel better about themselves, for instance, or introduce them to a new device that can change the way they communicate, the store is adding value beyond simply providing merchandise.
For most stores, moving from a transaction mind-set—“how do we sell more stuff?â€â€”to a value-creation mind-set will require a complete overhaul.
Apple Store associates are not on commission, and they don’t try to sell you anything. They have one job: to help you find the product that’s right for you, even if it’s not an Apple product. All those things create value beyond the transaction."
Making that transition can be a long and drawn out process for big-box retailers, but as a smaller or boutique retailer, you can bring about that change almost instantly.
So, the next time a customer walks into your store, ask yourself,?how have you enriched their lives for the better?
If you want to read more about Apple click on the article link below?
To understand more about variation and?W. Edward Demings?System of Profound Knowledge, read my previous article?Variation is the Devil for Excellence in your business
If you would like to have a chat with me about?‘Customer Appreciation vs Variation’?contact me?I look forward to hearing from you
Warm regards,
Craig