CustomerCare News The Promenade at Coconut Creek
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Emerging strategies to improve customer and employee satisfaction Nullam a consequat quam. hendrerit arcu. Suspendisse potenti. Duis Morbi consequat porttitor imperdiet.
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The Best Companies Get Results Through People page 14
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Smithson linkes to knock off early, going on expensive golf junkets paid for by corporate lobbyists.
quis tincidunt dictum, urna nisi egestas
sapien, nec laoreet magna orci at ligula. CCN
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Customer Service: Should the Airlines Go Back to Basics? page 22
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eros, in sagittis felis tellus in purus. Suspendisse non tortor sapien. In at magna eu odio aliquam condimentum at eu est. Integrating Customer Service Into Every Day page 18
A Celebration Media Publication
Can an Employee Recognition Program Build Customer Loyalty? page 08
CustomerCare News
Fall 2011
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Emerging strategies to improve customer and employee satisfaction
Subscribe to Customer Care News Magazine Latest Reading on Customer Care page 5
No cost for your next digital edition. Read about what others are doing to improve their online reputation and evaluate their own customer service progress. Research shows that the reason customer satisfaction is so important is because of its impact on the many factors that affect a company’s bottom line. It generates higher customer loyalty, repeat business and increased revenue. In general terms, more satisfied customers make happier business owners, shareholders, employees and managers. The more a company focuses on customer care, the more it reaps the rewards of higher customer satisfaction. This creates a customer who will be more loyal, spend more money, treat staff better and spread the word online and in everyday conversation. Happy Customers beget Happy Bottom Line and Reputation This Management Happy Stakeholders. should be the call of every company in America. page 6
Thus, customercarenews.com was created to shed light on issues and trends in the area of customer satisfaction and customer care. The publication will cover the leading industry providers of education and resources, which are vital to assisting companies in improving their customer satisfaction scores. As a subscriber to Customer Care News, you will be engaged with the latest solutions to underlying problems that inhibit the best intentions as they relate to improving customer care. Read each issue by subscribing to the magazine. Do so by going to our website at customercarenews.com or e-mail us at subscriptions@customercarenews.com.
Customer Care News Magazine 32000 Northwestern Hwy.,Suite 128 •Farmington Hills, MI 48334 Engineering Students and E.I. Phone: 888-438-9528 ext 807 page 10 A Celebration Media Publication
Associate Publisher’s Letter
M
ost, if not all organizations and company leaders know the
importance of providing good customer service. They recognize it can cost up to 10 to 20 times more to attract a new cus-
tomer than it does to keep an existing customer. Or, that a five percent increase in
overall customer retention equates to a 25 to 55 percent increase in profitability. Statistics like these and others are readily available for company leaders. So why do companies, large and small, still struggle with satisfying their customers?
There is no need for a Mensa level of intelligence to understand that valued
and satisfied customers are paramount to every organization. Unfortunately, however, common knowledge does not always equate to common practice. For
many companies, customer service remains a challenging and neglected area leading to the loss of profits and potential opportunities.
Providing superior customer service requires several components. First, customer service begins at the top and is woven into the
fabric of the company — in other words, the organization’s culture. Slogans, clichés, and badges are all meaningless if the culture
does not support what it declares. The critical piece is how leaders treat their staff. An autocratic leader who employs the YST (yell, scream and tell) style of management and then expects the staff to treat external customers with respect and friendliness is totally misinformed. Employees will perform as they are treated. A customer-centric culture is one that treats internal customers the same as external customers.
A second element to providing excellent customer service is for companies to establish processes and systems to ensure custom-
ers are satisfied. Far too often, company policies are reactive and defensive. Instead of empowering staff to exceed the customer’s
expectations, policies are such that they pit the staff against the customer. The disempowered employee is forced to respond to an unhappy customer with the following toxic statement, “The company policy states we cannot...”.
From the company’s culture to its processes and procedures, there is one common denominator — the staff. The human con-
nection is the final element to providing superior customer service. If employees are treated as software to be downloaded in a computer, you reinforce mindless obedience. On the other hand, when employees are empowered, encouraged to truly connect with the customer, trained to provide the finest service, and supported by a customer-centric culture, satisfaction is almost guaranteed.
It becomes imperative, therefore, to provide employees with the education and training necessary to consistently deliver excep-
tional service. This involves more than a 30-minute video or “rah-rah” speech from leaders. Just as product and technical training is
necessary for employees to do their jobs, interpersonal skills training is equally important. Some of these skills include communica-
tion, team building, dealing with difficult customers and managing stress. These skills are not inherent. They need to be taught, trained and reinforced by a culture that honestly respects and values the employees and customers.
Part of customer care includes giving back to the community. We at CCN would like to congratulate a local organization that
is doing just that and has recently received recognition for its community service. Monroe Bank & Trust (highlighted on p. 18) won the 2011 Governor’s Service Award for corporate community involvement, beating out four other competitors, including Comerica
Bank and AT&T. The award is designed to recognize businesses statewide that excel in community involvement by employees and includes corporate volunteer programs, monetary contributions, in-kind gifts and employee-driven volunteer service
As you read through this edition of Customer Care News, you will gain an additional perspective on the importance of providing
exceptional customer service. Customers are the lifeblood of all companies, and how you treat them could determine your company’s survival. Enjoy!
Dr. Keith Levick
www.customercarenews.com
1
Fall 2011
Associate Publisher
klevick@customercarenews.com
Table of Contents 03
06
Employee Insight Drives Performance
Can an Employee Recognition Program Build Customer Loyalty?
Recent evidence shows a correlation
work and increased customer satisfaction
Associate Publisher Keith Levick, Ph.D.
klevick@customercarenews.com
Editor-in-Chief Jamie Rawcliffe
provides insight into a company’s success
11
djaslove@customercarenews.com
Survey Says: Get it Right with Net Promoter Score
08
Publisher Dale Jaslove
information on customer experiences
Asking customers the right questions
Fall 2011
Employee surveys can provide pertinent
CustomerCare News
jrawcliffe@customercarenews.com
Production Manager Chris Schramm
cschramm@customercarenews.com
Editorial & Materials Coordinator Anne Seebaldt
between recognizing employees’
People Power Sets the Pace for Innovation
aseebaldt@customercarenews.com
Editors/Writers Mella Barnes
mbarnes@customercarenews.com
In today’s economy, maximizing the
18
innovation are essential
Monroe Bank & Trust demonstrates the
service into all facets of the business
14
company’s workforce and supporting
The Best Companies Get Results Through People
Work For, a human resources awards
successful strategies for improving the
22
program, highlights companies with
Training, communication and the
customer satisfaction for airlines
lives of employees
26
Fall 2011
effectiveness of incorporating customer
101 Best and Brightest Companies to
24
2
Integrating Customer Service Into Every Day
Customer Service: Should the Airlines Go Back to Basics?
right people can elevate the levels of
Parallels Between Athletic Coaching and People Performance: An Exploration of Shared Concepts
Aspects of successful coaching can cross over to managing employees
Never Underestimate the Importance of Education
Training employees for more than
the technical role of their job is key in
every company’s customer service success
Amy Pagett
apagett@customercarenews.com
Operations Manager Jennifer Barth
jbarth@customercarenews.com
Account Manager Fran Cohen
fcohen@customercarenews.com
Website Design Melissa Sherwood Contributing Writers Susan Ellerin, Ph.D.; Jerry Klein; Jennifer D. Kluge; Ross Kramer; Cathryn Noyes; Wendy Warrington Parker; Dr. Heather L. Strouse; Joan Travelstead Website Consultant www.sherwoodandblack.com Customer Care News 32000 Northwestern Hwy., Suite 128 Farmington Hills, MI 48334
www.customercarenews.com Customer Care News is designed to provide accurate and authoritative information in regard to the subject matter covered. The publishers have taken all reasonable steps to verify the accuracy and completeness of information contained in Customer Care News. The publishers may not, however, be held responsible for any inaccuracies or omission of information in any article appearing in the Customer Care News. Entire contents copyright 2011 by Customer Care News. All rights reserved. Reproduction or use of editorial content in any manner without written permission is strictly prohibited.
Customer Care News
Employee Insight Drives Performance M ost organizations regularly survey employees, but these programs are typically limited to
measuring employee engagement, identify-
operations or policies in other parts of the company that affect their ability to serve the customer.
Most organizations not only miss the opportunity to solicit
ing the drivers of employee satisfaction, and soliciting sugges-
systematic input from their employees, even worse, they inad-
in-depth questions about the workplace, rarely do they ask the
critical observations. Surveys in which employees are solicited
tions for improving working conditions. While surveys include questions whose answers could most dramatically affect the
overall quality of the customer experience and efficiency of
operations. Companies miss the opportunity to ask, for example, “What stands in the way of providing the best possible customer service? What do you need to perform your job better? What
do you think is key to attracting and retaining the highest value
vertently create cultures that make employees reluctant to share for a 360-degree view of the company’s key performance mea-
sures can fill these voids. For example, STAT Resources, Inc. has just developed a new Employee Generated Optimization (EGOSM) survey program that is the first to use employee insight in this way.
A corporate EGO survey not only gives Care a voice that
customers?” Yet, apart from customers themselves, no one is
can be heard in the C-suite about what stands in the way of
employees on the front line — staff who also understand the
cross-company, also enlists the entire organization in reaching
better positioned to report on customer experiences than the operational challenges and constraints in providing a stellar customer experience.
Employees across the organization — from front-line
sales reps to backroom IT specialists — all may have valuable intelligence about what will drive measurable improvements in
world-class service and market dominance, but, if implemented these goals. Even surveys of just the Care departments can give an enormous leg up on operational and quality improvements. A lesson from the security industry
A major security company was eager to launch service qual-
products and service quality delivery. However, there is probably
ity improvements to increase customer satisfaction. Company
obstacles to success than the frontline of your Care organiza-
phone with customer service, the higher the customer sat-
no group in the company in a better position to identify the
are rarely asked to, and of course, have little if any control over
www.customercarenews.com
Fall 2011
tion. While Care reps can often identify these obstacles, they
research showed that the less time a customer spent on the
isfaction scores were. In response to this finding, company management offered service representatives financial incentives
3
to reduce time-spent-in-queue and for decreases in total average call length. Surprisingly, while the company dramatically
increased the speed of response and call completion, customer
• Take care to align rewards and recognitions with objectives.
satisfaction plummeted — along with employee morale. Why?
Benefits of employee involvement
reason that shorter calls were associated with more satisfied
tomers can be difficult, and certainly expensive. Consumers
time-satisfaction link was often simply the result of quicker
are especially delighted or distressed. Customers are growing
Had management enlisted employees in understanding the
customers, they would have learned that reps believed that the resolution time for simpler issues. More difficult and complex
issues took more time and effort to resolve. When surveyed, employees agreed that reducing time in queue was relevant
to customer satisfaction, but that simple remedies such as
removing confusion in contract terms to reduce logjams would improve call satisfaction also. Similarly, they advocated aligning incentives with problem resolution rather than speed.
Implementing changes to contract terms had positive
Collecting rich and insightful feedback directly from cus-
are often reluctant and inattentive participants unless they increasingly weary of being asked about their experiences and perceptions in every aspect of their life — from the store that sells them pens to the restaurant where they had dinner the week before. Fortunately, it is possible to learn almost as much
by asking the right questions of employees as you can from trying to extract insights from over-surveyed consumers with little motivation to provide detailed or reflective answers.
Employees offer quick, efficient and economical perspectives
impacts on customer satisfaction, but when incentives were
that research has shown are highly consistent with those of cus-
reps and teams for percent of “first-time fixes,” customer satis-
by sensitivity to organizational constraints and challenges. This
shifted from rewards for throughput to rewards to individual faction really soared.
There are three, perhaps obvious, but frequently overlooked
lessons from this:
• Before launching any improvement program, examine
tomers themselves. In addition, employee feedback is enhanced understanding is key to identifying feasible improvements to the customer experience.
Most robust employee surveying
EGO surveys replace traditional employee surveys and
and validate all assumptions.
certainly complement — and perhaps even replace — customer
sure the true drivers of quality are understood.
pany performance in four major areas, each of which has two
• Do not confuse correlation with causation — make
surveys with a structure for a 360-degree examination of commain components (see Figure 1):
• Human Capital Optimization
HR Management: Does the com-
pany offer attractive compensation, benefits and working conditions?
Employee Loyalty & Engagement: Do employees feel valued, empowered and supported?
• Customer Centricity
Customer Retention: Do we create an environment that inspires customer loyalty? Customer
Relationship
&
Communication: How well do we
communicate with and listen to our
Fall 2011
customers?
4
Customer Care News
• Product and/or Service Quality
Value Proposition: What do customers GET from our
An extra benefit of mining employee intelligence
It is now commonplace to recognize the strong relation-
products and services?
ship between employee loyalty and satisfaction and the loyalty
customers have problems or need support?
employee feedback to guide improvements becomes an improve-
Care & Support: How well do we handle issues when
• Brand & Market Dominance
Brand & Positioning: What is communicated to
the market and company stakeholders to create dominance?
Sales & Acquisition: Are we effective in acquiring new customers?
Typical results can then be displayed in a radargram
(see Figure 2). Here we see a company that is quite strong in
typical employee loyalty and HR measures, but is fairly weak in
customer relationship and communication as well as care
and satisfaction of customers. Here, the very act of soliciting ment in itself, communicating to employees that their opinions are valued. In changing the communication culture of the sys-
tem and enlisting employees as partners in change, inevitably, the end result is increased morale and satisfaction. Satisfied employees are more likely to stay put, and their tenure provides
their organization with a knowledgeable, experienced and stable workforce — the kind of workforce that is most likely to lead to happier customers. And not only does improved employee
satisfaction lead to increased customer satisfaction and loyalty, it works the other way around too: satisfied customers improve employee satisfaction. And around and around it goes. CCN
and support, resulting in low scores in customer retention.
Susan Ellerin, Ph.D., is the founder and president of STAT
positioning, value proposition, and sales and acquisition,
for STAT. STAT has worked with many high-technology,
Why is this? The company scores well in brand and indicating that the product or service being delivered is of reasonable quality and that it is successfully acquiring good potential customers. Does the company need to introduce loy-
alty programs? Review customer care processes? Overhaul its can provide insight that would help to identify problem areas and possible fixes.
www.customercarenews.com
financial, consumer products and services organizations over the course of its 30-year history. Ellerin specializes in focusing senior management teams on interventions that have immediate
and sustainable impacts on the loyalty of high-value customers, improved operational effectiveness, and increased market domi-
Fall 2011
communications strategies? Employee feedback in these areas
Resources, Inc.; Cathryn Noyes is the director of insight research
nance. STAT can be reached at 617-340-2173 or via e-mail at cnoyes@stat-resources.com or sellerin@stat-resources.com.
5
Survey Says C
:
Get it Right with Net Promoter Score
ustomer feedback is imperative for the growth of your business. Whether it’s product or
service related, you need to understand how
customers feel about their interaction with your organization.
But that doesn’t mean you should stop asking your cus-
tomers for feedback. It just means that you have to find a better way.
Marketers understand the value, which is why they spend
One minute, two questions
and through scheduled e-mails deployed at regular intervals;
to solve this problem. The concept is simple. A single ques-
posts throughout the day to monitor both positive and nega-
or friend?” — lets you know how your customers feel about
time surveying customers online after purchases are made
not to mention meticulously searching Twitter and Facebook
tive comments. Receiving feedback is timely and costly, and
results are typically so skewed that it’s unwise to take decisive action based on the data.
The biggest flaws with e-mail and online surveys are the
number and type of questions asked. Most customers would be happy to provide feedback if it:
• Didn’t take up too much of their time; and
• Gave them the opportunity to express themselves openly and honestly.
Questions such as “How did you hear about us?,” “How
easy was our website to navigate?,” and other marketingrelated questions do not belong in surveys. First of all, that
information is available through web analytics — and it will be more accurate from this source as well. Also, these questions are meaningless to customers, so few of them will take the time to answer.
Net Promoter Score (NPS) was developed several years ago
tion — “How likely are you to recommend us to a colleague your organization. Based on a scale
of 0 (not likely at
all)
10
through
(extremely
likely), responses are broken down into
three
cat-
egories. Customers who 0-6
are
answer
While it might be tempting to survey your customers on everything from product selection to customer service knowledge to the size and color of your shopping cart icon, doing so is a mistake.
called
detractors, as they are clearly unsatisfied. Customers who
answer 7-8 are passive, as they don’t have strong feelings either way. And customers who answer 9-10 are your pro-
moters. They’re the customers who love your brand and sing your praises.
To calculate your NPS, simply subtract your percent-
And, while it might be tempting to survey your custom-
age of detractors from your percentage of promoters. For
knowledge to the size and color of your shopping cart icon,
percent) are promoters and 10 (20 percent) are detractors,
ers on everything from product selection to customer service
doing so is a mistake. The more questions you ask, the fewer responses you’ll get.
example, if you receive 50 responses one month and 32 (64
your NPS is +44. The number isn’t a percentage as your NPS is either positive or negative.
The higher the score, the better. But it’s important to
measure your score against your industry results to help you
gain an understanding of how you are doing compared to
your competitors, since some industries, such as health care,
Fall 2011
have relatively low scores across the board.
This question alone doesn’t provide actionable informa-
tion, nor does it tell you how likely customers are to buy
6
Customer Care News
from you again. So we recommend using a simple follow-up question: Why?
Using open-ended questions in surveys is generally
frowned upon as the responses are difficult to track and measure. However, asking customers why they answered the
first question gives them the opportunity to express how they
feel about anything and everything related to your organiza-
tion. You can learn more from this one question than from
100 other standard survey questions; and, more importantly, customers will take the time to tell you their thoughts. You can see how valuable this information is. Imagine responses such as:
How likely are you to recommend us to a colleague or friend? 9
Why? I was on a tight deadline and accidentally exited
your program without saving my work. I called support, and in less than five minutes was shown where the auto-saved version of my report was located. What a lifesaver!
How likely are you to recommend us to a colleague or friend? 7
Why? I was locked out of my account. It was after hours
and your online chat feature wasn’t available, and I had to
wait several minutes on hold to speak to a rep. The issue was resolved right away, but you should have other support issues available after hours.
Ross Kramer
How likely are you to recommend us to a colleague or friend? 2
Why? Your online help manual didn’t answer my ques-
response must be read and carefully considered. It’s a good
help me, so I called and waited on hold for five minutes
ers know that you value their feedback and the time they
tions, so I tried your online chat feature. That person couldn’t before speaking to someone for less than a minute. He
transferred me to someone else, and again I waited on hold for several minutes. The next person couldn’t help, either. I was finally transferred to someone who could help, but the
rep, John Smith, was extremely rude. I hope I don’t have to call again.
These responses provide real feedback you can use to
improve your customer service department and online support materials.
Unlike other surveys, you can’t simply dump these
results into a spreadsheet to crunch the numbers. Each
www.customercarenews.com
took to respond.
Over time, you’ll discover what your customers love about
your organization and what you can do to improve. No other survey provides that kind of actionable input. CCN
Ross Kramer is a co-founder and CEO of Listrak. He has
nearly 15 years of executive leadership, successfully launching and directing three technology start-ups. Kramer is a thought-leader within the online marketing community, lending his expertise
to conferences, seminars, articles, blogs and webcasts. Listrak provides engaging e-mail solutions, services and software to
help online retailers maximize revenue and customer
Fall 2011
Closely Monitor Responses
idea to respond, personally, where appropriate, to let custom-
interaction. Find Listrak online at www.listrak.com or call at 877-362-4556 to learn more.
7
Can an Employee Recognition Program Build Customer Loyalty?
I
n today’s slowly recovering economy, employees are being asked to work longer hours, take on
more responsibilities and, in some cases, work at a
reduced rate. At the same time, managers are diligently searching for ways to increase the efficiency and effectiveness of their employees as they
continue to reduce the number of employees,
their benefits, and reduce or eliminate employee
incentives and rewards. However, there is a grow-
ing body of evidence that suggests reducing incen-
tives and rewards may be a big mistake. A number of
studies have been conducted by long-time respected
organizations that point to a direct connection between
employee satisfaction and customer satisfaction and loyalty.
One such organization, The Forum: Business Results
Through People, affiliated with Northwestern University, has
programs in place. It cited T-Mobile USA’s rewards and
organizational performance. One recent Forum white paper
win top ranking in the J.D. Power and Associates “Wireless
long researched the link between motivated employees and reported, “Today, the body of research proving the economic
benefits of making this connection has become too compelling for even the most cynical executive to ignore. Many different
organizations, coming at the issue in many different ways, have found concrete connections between employee engage-
ment and customer satisfaction.” These connections have been
researched and verified in a variety of Forum studies of the
“The company implemented a well conceived incentive pro-
gram, with rewards and recognition the employees care about,” the MII report noted. Key to success: T-Mobile took the time to conduct extensive up-front research with its employees to determine the best rewards and program structure.
To attract, retain and — best of all — delight customers,
companies now more than ever need employees to work as a
James Oakley, assistant professor of management at the
way to reward and recognize employees, the shift must be from
Krannert School of Management at Purdue University and a
Forum researcher, studied nearly 100 U.S. companies repre-
team in a collaborative effort. Therefore, when considering a individuals to the collective whole.
Incentives are a way of life. Parents use incentives to moti-
senting nearly 5,000 employees and found a clear connection
vate their children. Companies use incentives to reward CEOs.
linkage,” he said, “is through employees’ impact on customers.
retention and loyalty. And employers can use incentives to cre-
between employee satisfaction and financial performance. “The
There is a relationship between attitude and profitability…that relationship is bridged by satisfied customers. There is a direct
Retailers use incentives to boost sales and generate customer ate a collaborative and efficient workplace environment.
With shrinking budgets, however, how can employers suc-
link between employee satisfaction and customer satisfaction,
cessfully reward their work teams? An employee recognition
financial performance.”
collaboration, the focus must shift from individual recognition
and subsequently between customer satisfaction and improved Another
Fall 2011
Customer Care Performance Study” three years in a row.
healthcare, banking and insurance industries, as well as other business segments.
research
group, Marketing
Innovators
International (MII), noted that today’s best-performing companies have strong employee reward and recognition
8
recognition program, which helped the wireless provider
program’s goal is to modify a person’s behavior. To promote
to team recognition. For an incentive or reward to have the desired effect, it must offer high value and be universal for
all team members. Employees will not try to earn something
Customer Care News
grocery stores, pharmacies and convenience stores. They can also be pur-
chased online directly from merchants, in small quantities and in bulk. Many
major retailers and gift card suppliers offer companies a discount off the face
value of the cards for large purchases, thus offering companies an added sav-
ings. Additionally, gift cards are easily inventoried and fit securely in a small safe or desk drawer.
When considering a gift card pro-
gram, employers should be aware of
several new trends, some of which are
now available and others that will be
evolving during the coming years. There are new personalization and customization options with which a company can
that has no value to them, which in turn may affect their work
custom design a gift card with its corporate logo, team logo
Employers must select a reward that motivates and
beginning to emerge (but expected to grow in popularity dur-
within the larger team.
encourages the desired behavior of the entire team, but the reward does not have to be expensive to be effective. In fact, a
small, inexpensive reward given to each of the team members on a frequent, regular basis reinforces and recognizes the team’s
desired behavior more effectively. Furthermore, the reward should provide instant gratification, and avoid disconnect between the action and the reward.
A tangible gift is often perceived to have a higher value
or other personalized messages. Several new technologies just ing the next several years) include flexible options that will enhance the rewards delivery process. These include print-ondemand gift cards and gift card rewards via e-mail and mobile
phone delivery. The key to incentives is to tie the reward as
closely to the positive performance as possible. So, the sooner a team is recognized for positive performance, the more their actions are reinforced.
An employee reward program does not have to be
than its actual cost. A gift card is a solution that is relatively
expensive, difficult to plan and manage, or time consuming
instantly to team members as a reward for collaborative efforts.
sophisticated points-based system, or as simple as predeter-
inexpensive, has a perceived higher value and can be given
A $5 to $10 gift card redeemable at the local coffee shop, for a sandwich at a favorite lunch spot, or a movie ticket, gives employees immediate recognition. A gift card also serves as a long-term reminder of the accomplishment.
to be effective. Your program can be complex with a
mined team goals and reward criteria supported by a supply of assorted inexpensive gift cards to hand out when goals have been met.
Whether you go with a sophisticated all-encompassing
Gift cards continue to be a top choice among companies
program or a simple project-based program, the benefits to
than 170 Advertising Specialty Institute (ASI) distributors,
employee reward program can essentially pay for itself through
for their employee recognition programs. In 2010, more
including sales and marketing representatives, business
owners, and corporate executives from the promotional prod-
ucts industry, cited recognizing employee/team performance (20 percent), boosting employee/team morale (12 percent) and
your company will outweigh the costs. And best of all, an cost savings in increased team productivity and output. And, higher performance will be a reward in itself with a bigger and broader base of happy, loyal customers. CCN
building employee/team loyalty (11 percent) as three of the top
Joan Travelstead is senior vice president of program develop-
Launching an employee recognition program using gift
com) in Crystal Lake, Ill. Travelstead can be reached at info@
cards is relatively easy. Gift cards are readily available in local
www.customercarenews.com
ment at National Gift Card Corporation (www.ngc-group.
Fall 2011
five primary objectives to offer gift cards as incentives.
ngc-group.com.
9
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People Power Sets the Pace for Innovation The following is excerpted from a recent white paper published by
the Performance Improvement Council (PIC).
A
top-performing employees plan to leave their companies when the right opportunity presents itself.
Innovation is an opportunity to reengage the workforce. “In
s the economy struggles to rebound from
an economic downturn, innovation isn’t your best friend. It’s your
their people and re-focus on growth. To gener-
Innovation at the University of Michigan (“How to Innovate: A
the financial crisis, companies need to re-engage
ate growth, companies must maximize the value of their people
versus minimizing their cost. Innovation is an opportunity to maximize human assets, and leaders can take positive steps to
engage their people — the human capital of business — thereby driving behaviors that encourage innovation. Introduction: putting people “on game”
The massive employment reductions during the past
only friend,” says Jeff DeGraff of the Innovatrium Institute for
Step-by Step Guide,” Fortune Small Business, downloaded April
12, 2010). A recovering economy with stiff competition will only
heighten the importance of innovation, so the time to act is now. “If you don’t take the right actions in the recession, you don’t participate in the expansion. There are going to be new winners and
new losers,” predicted Vijay Govindarajan, chief innovation consultant for General Electric (HR Magazine, Sept. 2009, p. 31).
It’s no secret that in downsized organizations, people are
several years occurred with little thought about the effect on
being asked to do more with less. As they do more, people become
consequences. As companies look for ways to grow, the need to
visibility across greater parts of the business, which results in a
employee engagement strategies, leading to potentially dangerous
maximize the talents and ideas of all stakeholders — employees, suppliers and customers — is more important than ever before.
Among its other effects, the recession has left a productiv-
ity deficit in the workforce. According to a study published by
more experienced in a broader scope of the enterprise. They gain
resource pool ripe for innovative ideas. And, innovative ideas often originate in the front-line ranks of employees closest to the customer.
the Corporate Executive Board in 2009, employee performance
Engaging people for innovation
high levels of discretionary effort in their jobs. Up to 20 percent
Boston Consulting Group’s latest survey on corporate innovation,
of employees are “disengaged.” At the same time, 25 percent of
www.customercarenews.com
Innovation begins with dynamic leadership. According to the
Fall 2011
has been declining, with 53 percent fewer employees exhibiting
the right kind of leadership may not be present. “CEOs are the
11
Disney’s Academy Award-winning Pixar Animation sub-
sidiary is an example of a culture that encourages innovation. It uses patience and encourages risk-taking to give ideas a chance
to grow. Pixar’s 1,000 employees learn a practice called “plussing” in their orientation and training. When an idea is offered, it’s
restated and added to, Estrin explains. “We don’t say no, but we say yes, and….”
Risk-taking calls for a leap of faith in people. “You need to
give people the license to take risks and to fail often enough to
realize that they will not be punished for doing the right thing even though the outcome might not be what they expected,” said Thomas Koulopoulos, author of The Innovation Zone, a study of corporate innovation. “Small failures,” he added, “encourage big most visible champions of innovation at most companies,” the
vative thinking in their people. Trust in people is a necessary
real opportunity for many companies,” (BCG Report: Innovation
collective skills and experiences of those closest to the work and
2009: Making Hard Decisions in the Downturn, p.6).
Leaders need to appeal to the unique skills and talents
condition to build grassroots innovation efforts that tap into the closest to the customer.
of their people to foster a culture of innovation. “For suc-
Fostering innovative thinking among business partners
differently about innovation and act differently to mobilize
within the firm’s four walls no longer holds true. Rather, innova-
Age of Innovation. He added, “Within the corporation, engag-
and customers. Prahalad argued that “company-centric innova-
cessful management of innovation, managers must think the organization,” wrote C.K. Prahalad in his book, The New
ing employees emotionally and intellectually in the mission of
the firm will require that each employee is treated as unique. Individual employees strive to seek different personal ‘mean-
The assumption that innovation can be generated wholly
tion is increasingly generated through collaboration with partners
tion (work within the confines of the company) is giving way to ‘co-creation,’ in which firms collaborate with their customers
and business allies,” (The Economist, April 24, 2010). Prahalad
ings’ in their work, they also bring unique skills and capabili-
referred to this collaborative effort as the “dynamic configuration
all of their roles, whether they are employees, suppliers, investors
An example of innovation based on customer input is the
ties.” Prahalad emphasized that recognizing people as unique in or customers, is the prerequisite for success in creating value for any company.
Fostering innovative thinking among employees
Leaders can create a culture that fosters creative, innova-
tive thinking. Judy Estrin, author of Closing the Innovation Gap: Reigniting the Spark of Creativity in a Global Economy, identified five core values for innovation to occur. They are:
of talent.”
DVD movie provider Netflix, which carved out an innovative, high-value business model based on home delivery of DVD
and Blu-ray movies, and online wireless streaming of movies over computers and game consoles. Netflix partnered with
analysts from around the globe to build a highly sophisticated analytical database, providing a better understanding of customer preferences.
Netflix built an innovative business model by actively engaging
• Curiosity and a natural ability to question the status
its customers and its knowledge suppliers. Prahalad calls this “The
• Risk-taking and a willingness to learn from failure
other stakeholders come together and collaborate on a project.
quo
• Openness; organizations with strong silos tend to be less innovative
• Patience, tenacity and the sense of giving an idea a
Fall 2011
By fostering openness and trust, managers encourage inno-
BCG report noted, “yet fewer than 30 percent of survey respondents identified them as such, reflecting a void in leadership and a
chance to grow
• Trust, which underpins the other values
12
successes.”
Velcro Organization,” in which teams of employees, suppliers and
Virtual teams encourage out-of-the-box thinking and engage
stakeholders beyond the walls of a company. The “new thinking” required to engage suppliers, customers and other stakeholders in innovation requires that both leaders and employees extend their networks as they think about how to solve business problems.
Customer Care News
The importance of recognizing innovators
Innovation requires people to adopt new ways of thinking,
and then to apply new ways of doing things to existing situa-
tions. Recognizing innovative thinking from both individuals and groups ensures that such behaviors will continue and breaks down the barriers to thinking about the same problems in the same old way.
The American Productivity & Quality Center (APQC)
has found that to drive innovation in products and services, an organization must develop innovative approaches to rewards and
recognition, such as creating a design team, sharing success stories and promoting innovative behaviors. The leaders and organiza-
tions providing structure and consistency in rewards will in turn motivate employees to pursue creative and effective ideas.
Leading organizations that drive innovation through rewards
and recognition subscribe to several basic principles for encouraging innovative behaviors. They include:
• Linking innovation to the core values of the organization
• Sharing success stories across the enterprise about suc-
Jerry Klein
cessful new products or approaches
• Using a cross-section of leaders from HR, R&D, and business units to develop guidelines and suggestions for
• Processes to reach outside the four walls of the company
• Recognizing and rewarding positive contributions in
• Recognition and rewards for repeated behaviors that
It is critical that organizations have a consistent structure
Innovation will not occur unless it is part of an organiza-
encouraging innovation
to develop innovative practices that are market-driven
order to sustain momentum
lead to innovation
to administer the reward and recognition system for innovative
tion’s strategy and is supported by all levels of management and
in best practices include: enthusiastic management commitment
trust, leaders empower their people. Smart businesses maximize
behaviors. Elements of recognition for innovation that are based
and leadership; clear definition of procedures; communications; and a system to apply rewards for innovation consistently and equitably.
Rewarding and recognizing innovation doesn’t have to be
expensive — a positive for today’s budget-conscious companies. An effective, well-designed reward and recognition program
leadership. By building a culture of risk-taking, openness and the value of their human capital by encouraging all employees to think creatively about the business. With the support and encouragement of leadership, organizations can engage and enable their
people to be creative and innovative, and position themselves for growth. CCN
demonstrates to employees and other contributors that their ideas
The
their workforce to help them grow, they need to promote and
performance marketing executives, is a special indus-
matter. If leaders want to go beyond engagement and energize
recognize behaviors that give their people a real stake in the business.
The path to innovation requires several conditions:
• Leaders who recognize people as unique and nurture
and risk-taking
www.customercarenews.com
[www.thepicnow.org],
Improvement a
professional
Council
(PIC)
organization
of
try group of the Incentive Marketing Association (IMA) [www.incentivemarketing.org], which is collectively focused on
helping companies optimize their investment in human capital through proven and innovative reward and recognition solu-
tions. Jerry Klein, vice president, management consultant for
Fall 2011
their special skills
• A culture based on trust that fosters creative thinking
Performance
Maritz, LLC, a member of the PIC, was a contributing author and can be reached at jerry.klein@maritz.com.
13
The Best Companies Get Results Through People A Customer Care News recently asked Jennifer Kluge to provide
fter more than 10 years of conducting best
to Work For, a human resources awards program she created
regions, 101 Best and Brightest Companies
us with information about 101 Best and Brightest Companies
company competitions in several Midwest
to recognize those companies that are making the lives of their
to Work For has found that successful companies under-
lowing article highlights some of the strategies that have proved
and strength of their customer relationships, are directly
employees better as well as the community as a whole. The fol-
successful for those companies that have been deemed “The Best and Brightest.” We at CCN truly believe that learning from others’ successes (and failures) is a great way to improve your own policies and programs to ensure both your employees and customers
tied to how well they focus on the employee as a whole
person. They know that an employee who is valued and connected to his or her work is more likely to listen and
deliver the kind of value that today’s customers demand. They also know that engaged employees give higher levels
Fall 2011
are satisf ied, which will ultimately lead to business success.
stand that their business results, including the quality
14
Customer Care News
of discretionary effort and are more loyal to their organizations.
Using independent research methods that evaluate
company communication, community initiatives, com-
pensation and benefits, diversity, employee development, employee engagement, and work-life balance to single out those companies that demonstrate exemplary human
resource initiatives, the team at Best and Brightest has come to the overriding conclusion that outstanding companies purposefully keep employee welfare as a top pri-
ority. These companies achieve business results through
Perk Value Tied To People Perspective Experience has shown that the value of any employee benefit or incentive strategy is directly proportional to its relevance to employees. A 2010 entry from the 101 Best and Brightest Companies to Work For demonstrates a private club’s commitment to a positive work environment and its employees’ well-being, both on and off the job, by offering the following to attract and retain employees:
meaningful policies and innovative best practices in human
resource management, proving that well-managed companies with good benefits and desirable incentives top the
list for engaging employees – especially in today’s rapidly
• Daily changing selection of free nutritious meals that include hot entrees, soups, salads, sandwiches and desserts
changing work environment.
• Free soft drinks, coffee, milk and snacks available
tend to be,” said Red Level Networks CEO David King,
• Annual holiday cash bonuses raised from mem-
“The happier the employees, the more productive they
one of Metro Detroit’s 101 Best and Brightest Companies to Work For. “Employees thrive in a healthy work envi-
ronment fostered by executives who care not just about
the work being done but also about the people.” (“How
to Create a Positive Work Environment,” Corp! April 21, 2011; www.corpmagazine.com)
at all times bers for employee service • Free (or very minimal fee) secure, protected onsite parking • Complimentary parking to attend downtown events • Extended time off and special consideration (time off with pay) for employees who are ill,
Compensation, Benefits Go Above and Beyond
Although the economic challenges of the recent reces-
sion hindered the ability of many employers to increase wages, 68 percent of the 101 Best and Brightest Companies to Work For applicants still managed to increase base com-
grieving or have had a baby • Annual holiday turkey for all employees • Free annual flu shots and heart health screenings • Subsidized or free on-site weight management program • Retirement bonus and farewell events • Reduced rates for on-site car wash, barber shop, tailor and massage therapy • Uniform/business attire purchase assistance • Discounted catered personal on-site events • Discounted products and merchandise • Personal check cashing service • Sports, theater and event ticket/concierge service While such perks might seem a bit unusual in many work environments, they are clearly matched to employee preferences and the employer’s resources. At the same time, they allow the employees to be not only the providers but also the consumers of the
Fall 2011
very services offered in the marketplace.
www.customercarenews.com
15
pensation in 2010. Not only that, it was noted that most menu-driven benefits packages and financial incentives now go way beyond insurance coverage and merit increases to include items such as:
• Team incentives (25 percent)
Personal Well-being Is Key
More and more, today’s successful companies have
discovered the value in emphasizing the “quality” aspects
• Wellness incentives (73 percent)
human resource practices to demonstrate a genuine con-
• Referral bonuses (59 percent)
• Annual performance awards (60 percent)
• Process improvement awards (54 percent) • On-the-spot awards (58 percent)
The notable point is that these organizations concretely
Fall 2011
that customer service and performance are top priorities.
• Employee discounts with negotiated vendors (78 percent)
let their employees know how much their efforts on behalf of the company are appreciated. They understand that an
16
engaged workforce will demonstrate through daily actions
of their workers’ lives. These companies go beyond routine cern for each of their employees.
“For us, this philosophy of treating people the way we
would like to be treated means we have a collaborative and
nurturing work environment where people are given the
opportunity to grow,” said Plante & Moran’s Managing Partner Gordon Krater upon receiving one of Corp! magazine’s 2011 reader-selected Best of Michigan Business awards. (Corp! April 7, 2011; www.corpmagazine.com)
Customer Care News
Clearly, more and more business leaders understand
said, “Paying close attention to what employees think
tors and that by improving the individual well-being of
and employee engagement.” (“Strengthen Commitment:
that workers are affected by both work and non-work fac-
their employees, they are more likely to have reliable, better performing workers and stronger bottom line results.
and feel will help you increase employee commitment Focus on What Employees Think and Feel,” Corp! April 21, 2011; www.corpmagazine.com)
Companies that take care of their workers realize bet-
Work-Life Balance Grows
ter worker retention, performance and results. Experiences
tance for workers during the past decade. Of this year’s 101
that using innovative, people-focused human resource
Work-life balance issues have grown in personal impor-
Best and Brightest, nearly 75 percent offer their employees opportunities to telecommute while more than 90 percent
offer flexible scheduling that includes everything from flex-time to job sharing. Family-leave policies that often go beyond basic legal requirements are offered by nearly 60 percent of the winners while more than 48 percent offer a
with hundreds of Best and Brightest Companies prove policies and practices capitalizes on the greatest resource every company has — its human capital. Valuing the
whole person not only makes an organization an ideal place for employees to work, but it also helps that organization achieve success in the marketplace. CCN
phased return-to-work process for those coming back from
Jennifer D. Kluge, creator of 101 Best and Brightest Companies
Policies that proactively accommodate the influence of
manager, having worked for a large advertising agency, and is a
a leave of absence.
family issues let employees know that their personal con-
cerns are significant not only to them, but to their employer as well. It helps employees feel valued as a whole person rather than feeling the work/family dichotomy.
to Work For (www.101bestandbrightest.com), is a veteran HR
consummate strategic thinker, Crain’s Detroit 40 Under 40 win-
ner, and a two-time finalist for the Entrepreneur of the Year in the Great Lakes Central Region.
Community Involvement — Part of the Job
Community initiatives move an area forward and often
strengthen the local customer climate for a business. More
than 97 percent of the 2011 Best and Brightest participants
routinely make charitable donations while more than 87
percent conduct on-site activities such as blood drives and food drives. In addition, more than 80 percent sponsor
local charitable activities and more than 56 percent of the
companies formally recognize their individual employees’ community involvement. Such activities underscore community support as a vital part of both the workers’ and
the company’s roles in society, and at the same time they produce a “good will” effect among customers. Focusing on People Works
“Customer loyalty is the fuel that drives financial suc-
cess…Acquiring new customers can cost five times more
than satisfying and retaining current customers,” said cus-
tomer loyalty author Eva Jenkins. (“The Cost of Customer Loyalty Depends Upon Employee Engagement,” Customer
Service Manager (CSM) May 3, 2011; www.customerser-
Fall 2011
vicemanager.com)
Diana Moss, senior director of employee engagement
for Comcast, a Chicago 101 Best and Brightest recipient,
www.customercarenews.com
Jennifer D. Kluge
17
Integrating Customer Service Into Every Day Fall 2011
Monroe Bank & Trust demonstrates the effectiveness of incorporating customer service into all facets of the business 18
Customer Care News
As part of its ongoing commitment to helping businesses excel
in customer service, Customer Care News is pleased to recognize
those companies that are implementing and reaching success with customer service programs, such as Monroe Bank & Trust.
I
in fact attend a service course and probably exhibited that
same behavior during the course and still received a certificate for completion, maybe even accolades. MBT has taken
c an’t believe I am stuck waiting for this train! I
a
John mumbled to himself as the caboose honked
vice and sales. Doug
knew I should have left a few minutes earlier,
by. Now I just need to quickly f ind a parking space. A space was
waiting for him on the street. Where’s the loose change that usually sits in the console? Which one of the kids took my change?
John frantically opened the car door. He jumped out and started to fumble through his car looking for change to feed
the meter. Just then a man walked up, introduced himself and offered to make change for John.
At Monroe Bank & Trust (MBT), opportunities for ser-
vice aren’t always about banking. Ken, part of the MBTeam, directs the employee parking lot on a part-time basis. He noticed people with business downtown often had problems finding a place to park. Instead of ignoring people in distress
such as John, he saw this as an opportunity. Ken regularly
brings quarters from home to help people so they don’t need to run to get change.
John made it to his meeting on time. He was so apprecia-
tive of Ken that he brought 13 quarters for him to “give away” to others. John may have already been a customer of the bank,
very
approach
different
to
ser-
Chaffin, president and
CEO, had the vision
What used to be an anecdotal benefit when handing over your money to a teller now seems to be the driving force of sustainability in an industry that is depleted with competition and riddled with government intervention and bureaucracy.
to bring service into
the forefront of MBT’s culture. The bank’s CARE program was introduced to the organization in 2003. CARE stands for Communicate, Ask Questions, Refer/Respond and Enjoy the Results. The CARE program looks and feels just a little bit
different to each and every department, however one thing
that is the same for every department and every employee: following the program is not an option, but a basic expectation. When new employees are introduced to the CARE process, the focus is on relationship development. This is
the goal behind every interaction with every customer, both
internal and external. The message isn’t about quotas or
outcomes, rather it’s about creating win-win-win situations. It should be a win for the customer, a win for the bank and a win for the employee.
but after his encounter with Ken he is now an advocate of
Don’t treat it like an event
his days as a police officer by giving them bus money when
“required training.” The new employees are asked to attend
Service is a necessity for community banks now more
ers and situations. When they go back to their respective
Monroe Bank and Trust. Ken also helps kids he knows from they don’t have it.
than ever. What used to be an anecdotal benefit when handing over your money to a teller now seems to be the driving
For some corporations, service is treated like any other
service training. They have a great time discussing customfront-line jobs, nothing changes. There is no accountability
force of sustainability in an industry that is depleted with
competition and riddled with government intervention and bureaucracy.
Service is a solution that is simplistically, diabolically
complex. How hard could it really be? This stuff should be
innate to people because they are, in essence — consumers. Is this something that you should really have to teach, or even
verbalize as an expectation? If you assume this, you would quickly become disenchanted when simply buying gas or filling a prescription at a local drug store. You may even ask yourself as you drive off, “Why doesn’t the corporate office
Fall 2011
develop a customer service training course for these people?” It may be even more depressing to find out that the employee, who was too busy texting and chatting with co-workers, did
www.customercarenews.com
19
It has to be nurtured and modeled from the top
When these concepts were first
introduced, there were only a few early
adopters. The rest of the organization
had a “wait and see” attitude. Early on it was successful because it was talked
about and modeled at the very top of the
organization. At every employee event, Chaffin spoke about CARE. At every
meeting, Chaffin asked and requested information about CARE. His commit-
ment and reinforcement made it clear — it wasn’t a promotion or flavor of the month — this was going to be the new “business as usual.” Chaffin committed
to a bi-weekly check-in with the CEO
of the consulting group that assisted and little or no expectation for making any type of change. The reason why it’s just an event is because service just isn’t
in the company’s culture. It’s so much easier this way, isn’t it?
missed a meeting. That’s modeling from the top. Service is not one size fits all
isn’t something that can be done one time, or even annually.
for another. Regardless of what many marketers say, it is not
to service.
Ken at the beginning of this article? In another organization,
Training isn’t the end all, be all — especially when it comes
When CARE was first introduced there were training
sessions, but they were treated more like a kick-off. After each person left the session and returned to the office, the expec-
What works for one organization may not work at all
something that can be bought (not even in a can). Remember Ken’s act of service may not be regarded as that. He may even be reprimanded for not doing his job.
Often, service in banking is overshadowed by following
tation was there for things to be different. And they were.
policies, mitigating risk and the occasional slow computer.
a regular basis with one another. This included team meet-
ones. At the front lines it means taking time to understand the
Employees and managers were expected to communicate on ings and one-on-one meetings. The communication didn’t
stop at that level. Managers were expected to report to their
managers. Many corporations tend to drive information from the top down. These management routines, however, allowed
for a better flow of information, especially at the top so
the senior management team had an idea what was working
and what needed adjusting. The expectation for commu-
nication didn’t stop there. Managers were also required to observe their staff on a regular basis as they interacted with
The focus is on how to have quality conversations, not scripted customer and ask quality questions. The idea is to listen for
clues to help the customer. The goal is to become a trusted advisor not a product pusher. Behind the scenes it means taking the time to communicate with other departments and
understanding that everyone is working toward the same goal. Service is the people side of the business and these expectations must be relayed to the back office just as often as the front line.
When a customer’s loan was up for renewal, Tamara, a
their customers. The result was that managers had better
specialist in MBT’s Loan Documentation Department, had to
edge to use in coaching them on specifics. It also made
than allowing the customer to find out about it through an
feedback to give employees and also had firsthand knowl-
Fall 2011
This was a three-year commitment of which Chaffin never
Everyone can just cross it off his or her lists and go back to business as usual. Ensuring the legacy of service in a culture
it easier when it was time for mid-year and annual performance reviews.
20
with the training and implementation.
inform the customer about a rate increase in insurance. Rather automatic letter notification, Tamara took the initiative and
contacted the insurance company to understand why the
Customer Care News
increase was being applied. She didn’t stop there. Tamara then
after they move out of the area. During the summer of 2011,
served by other options. The end result was that she called her
at approximately 10 branches, including the Carleton branch.
requested more quotes to see if her customer would be better customer prior to sending the letter about the rate increase. She explained that there would be a rate increase, but she also
explained why the insurance company was raising the cost. She
then offered other quotes and options that she had requested on her customer’s behalf. In the words of Ellen, Tamara’s manager, “the customer was basically ‘wowed’ and forgot to
be upset over having to increase the…insurance. Instead, the personal ‘I care’ phone call became the tone of the conversation
and the customer had no problems with spending the extra money on increased premiums.”
What good is icing if there is no cake?
If there isn’t substance to your service efforts, then when
Chaffin was the master griller at employee appreciation events It’s quite a commitment for an already full schedule. When he
introduced himself to customers Amy and Lance they asked
who he was and what he did at the bank. He replied, “I’m the
president,” and Amy asked, “Of the whole bank?” He said, “Yes, of the whole bank.” Before they left they commented to another customer that these types of experiences are the reason
why they are willing to drive an hour away to bank at MBT. As impressed as they were to meet the bank’s president, it’s
the time that Rose and her team took to develop and nurture that relationship that laid the foundation for their satisfied
experience. Their encounter with Chaffin was just the icing on the cake.
There is no final destination point of WHEN you
you have celebrations it’s just fluff. Rose and her team at the
are a service organization. You have to build it one relation-
concept. She and her team have built solid relationships with
clear on how it defines service and then find ways to weave
MBT Carleton branch understand the importance of this customers to the extent that many continue to bank there even
ship at a time, over time. The organization just has to be
it into the culture until it becomes the culture. It has to be open to the opportunity to create
positive experiences, one customer at a time. CCN
Wendy Warrington Parker is the Vice
President, Organizational Development and Training Manager for Monroe
Bank & Trust (MBT). Having been with MBT since 2003, she is current-
ly responsible for spearheading change management
initiatives, developing
a corporate university, and consulting
with the bank’s various departments to develop and implement traditional
and web-based employee education
and management leadership programs. MBT Financial Corp. (NASDAQ: MBTF), a single bank holding company
headquartered in Monroe, Mich., is the parent company of MBT. Founded in
1858, MBT is one of the largest community banks in Southeast Michigan with
25 offices, 41 ATMs, and a comprehen-
Wendy Warrington Parker
www.customercarenews.com
Fall 2011
sive array of products and services. For more information, go online at www. mbandt.com.
21
Customer Service: Should the Airlines Go Back to Basics?
A
s the travel industry continues to increase levels
issues are beyond the control of the individual customer ser-
often forget about the human element involved
skills, incorrect implementation of the airline’s policies and
of customer service through technology we
with airline customer service. Due to current operational and economic issues affecting the airline industry, increasing the satisfaction of customer service has not been the primary
focus for all airlines. Such oversight, however, has caused a
the control of the customer service-training department for each airline.
While the travel industry has evolved over decades of
time, we all remember when airline travel was a privilege and
travel based upon price, which is easily found through com-
become frustrating to the traveling public. So, what should the
parative travel websites. As our country continues to thrive with online travel reservations, expedited and automatic
check-in for travel, and improved information reliability, it
an exciting means of transit. In recent years, such travel has airlines do to increase customer retention? Go back to basics in the training of customer service representatives.
The key to a strong return on the human investment is
leads us to question what the human return on investment
to hire customer service representatives who actually enjoy
becoming as non-existent as the paper airline ticket?
While this does take additional time in the recruiting process
is for face-to-face customer service. Is such a value quickly Providing customer service in an industry where the
customer has little control over their purchase is difficult, to say the least. Many upsetting incidents for the customer involve delays or incidents that are outside of the airline’s
working with and providing a service to the general public. to ensure that potential candidates are the correct fit for the
position, the alternative of costly turnover can be reduced while also increasing passenger satisfaction.
There have been many debates through the years regard-
control, such as weather or unexpected maintenance. We all
ing whether individuals are born with the skills to be an effec-
sengers we are quick to become upset when an airplane has a
with education and experience. Many of the same skills are
have automobiles that break down occasionally, but as pas-
Fall 2011
procedures, and poorly trained staff are most certainly within
domino effect of customer dissatisfaction and disloyalty to
a specific airline. Passengers are much more likely to reserve
maintenance issue just the same. Many of the aforementioned
22
vice representative or airline. However, poor customer service
tive manager or leader or if these are traits that are learned also imperative to the customer service industry and are
Customer Care News
enhanced through various training initiatives. The following are key factors in training effective customer service representatives and ensuring that customer service maintains a high priority within the airline organization.
Customer service training and development
Annual and recurrent training promotes focus on the
airline’s policies and procedures, and increases the effective-
ness and performance of the employees. Customer service representatives need to be provided with the skills and knowledge to take ownership of the customer’s experience and
raise the level of satisfaction. Empowering customer service representatives through training and mentoring will provide them with skills for resolving difficult situations. Effective
training will include preparedness in handling demanding
situations and refining social skills for addressing difficult matters.
While it is essential to prepare customer service represen-
tatives for the incidents and issues that may arise, we must also train them for the positive aspects of their position. A warm welcome, a friendly smile, knowledge of the airline’s policies and procedures, and encouraging social skills can go a long way in diffusing a tense situation. Communication
Communication is critical in any industry. In the travel
Dr. Heather L. Strouse
While there are numerous factors that can increase the
industry, where passengers have little control over departing
performance of airline customer service, it ultimately depends
cation becomes even more critical. Passengers should be pro-
for the organizational culture in dealing with customer service
and arriving at their intended destination on time, communivided with accurate and up-to-date information when their
travel is affected or altered by maintenance, weather or other
delays. All departments within an airline organization should
be supported to optimum levels. Providing customer service
departments with critical knowledge and, more importantly, the ability to communicate such knowledge to passengers empowers effective task accomplishment.
Recognize and reinforce the right customer service
on whether the leaders of the airline set a positive direction and then in turn train their customer service representatives appropriately. If the leadership of the airline makes customer
service a priority, it will permeate throughout the organiza-
tion and be demonstrated through every interaction with the public. Creating a leadership culture that places customer ser-
vice at the forefront of the airline will in turn create positive customer service leadership through training, communication and reinforcing the right customer service. CCN
While excellent customer service may be an innate skill
Dr. Heather L. Strouse is an associate faculty member at Embry-
the correct management and training provided by the airline.
professional career has encompassed more than 10 years of
for some employees, it can also be learned and reinforced by Training initiatives, reinforcement by leadership and recognition for excellence can increase employees’ confidence and
their perceived value within the organization. When customer organization they are inherently more willing to go above and beyond for the passengers they serve.
www.customercarenews.com
experience in management and leadership positions as Assistant
Manager of Inflight Operations, Manager of Inflight Operations, Flight Operations Quality Assurance Auditor, Drug & Alcohol
Manager, and Manager of Emergency Planning & Response.
Fall 2011
service employees are confident and feel valued within the
Riddle Aeronautical University and Ashford University. Her
Strouse has presented at symposiums for the Federal Aviation Administration and the Regional Airline Association.
23
Parallels between Athletic Coaching and People Performance: An Exploration of Shared Concepts A white paper published by The Forum, aff iliated with
Northwestern University
The concept of applying “coaching” techniques to human resource management has been a recurring theme within business leadership ranks for a number of years, coinciding with the movement away from the traditional employer/employee relationships of the past toward more collaborative “team” approaches in the hopes that it would increase organizational productivity. In this paper, The Forum’s Academic Director, Dr. Frank Mulhern of Northwestern University, examines the key dimensions of successful athletic team coaching in light of the people performance concepts studied and advocated by The Forum. The goal of this work is to provide today’s business leaders with some pragmatic insights for
taining personal relationships between players and their coach. Technical expertise about a sport and in-game decision-making
are not nearly as important as a coach’s ability to build and
maintain close personal relationships with players and leverage those relationships into athletic performance. A commitment to
people requires creating a culture of trust and transparency and a strong desire to make players happy. Tommy Lasorda, former
Manager of the Los Angeles Dodgers, noted that “contented players perform better.”
Listed below are key dimensions of successful coaching that
reflect common aspects of people performance. We discuss each of them with regard to their relevance to the personal relationship between a player and a coach and the connections of the concepts to The Forum.
advancing people performance within their own organizations.
Know the whole person: The best coaches do not limit their
T
he Forum advocates a people-first approach to
managing, motivating and engaging employees. This paper investigates the prospect that people-
oriented aspects of athletic coaching may have some parallels to
management, and may offer some insights for advancing people performance. The importance of focusing on people in athletics
was highlighted by Bill Walsh, the famed coach of the Super Bowl-winning San Francisco 49ers, who told Harvard Business
Review that the teams that are most successful are those that “demonstrate the greatest commitment to their people.”
The literature on coaching establishes that the single most
important aspect of successful coaching is building and main-
interest in players to athletics. Good coaches get to know the
whole person and maintain a genuine interest in all aspects of the player’s life. Personally knowing players goes well beyond understanding a player’s physical and mental ability and extends
to a coach’s genuine interest in a player’s personal well-being. Doing so creates trust and friendship, leading to a meaningful personal relationship. The Forum places a similar emphasis on the social and interpersonal aspects of work — that is, the idea
that work can’t be isolated and treated as a separate aspect of an employee’s life, as The Forum advocates with the concept of employee enrichment — a true concern for all aspects of an employee’s life.
the
A culture of respect: Good
coaches create environments
where all players respect all
other players and coaches. This, too, reflects the people performance emphasis on
Fall 2011
Business Results Through People 24
interpersonal
relationships
among workers. A culture of respect is required for players to be mentally prepared
Customer Care News
to receive instruction, advice and constructive criticism from
coaches. Several successful coaches have noted that a lack of respect completely undermines the ability to coach. What
makes respect a challenging concept is that it is an intangible
should not be excessive or disingenuous — players can see through such communications and become discouraged.
Pride and a sense of belonging: Vince Lombardi stated that,
concept that is difficult to define and measure. However it
“Individualized commitment to a group effort is what makes
be restored. An emphasis on respect aligns with The Forum’s
tion work.” Good coaches instill a strong sense of pride in the
is obvious when it is lacking and, when it’s lost, it can rarely
people-first approach in that it inherently embodies respect for other people.
Individual attention: Good coaches provide personalized
attention to players as individuals. While this is facilitated by
the fewness of the players, it is crucial for coaches to be able to motivate and instruct players. This aspect builds on a coach’s
efforts to get to know players personally (as noted above). It is important that the individualized attention not just be about aspects that relate to athletic performance. Good coaches give
a team work, a company work, a society work, and a civilizateam and what it stands for (a city, school, etc.). Coaches need
to help players feel a strong sense of belonging to something
that is very meaningful. Pride, particularly a deep pride that is shared among players, elevates the importance of the sport
and leads to greater intensity. The idea of a sense of belonging closely relates to employee engagement and the meaningful-
ness of work — a concept discussed at some length in The Forum leadership paper in 2009.
Responsiveness to needs: Good coaches are highly respon-
individualized attention about all aspects of a player’s life.
sive to the needs of individual players and the team as a whole.
understand individual player’s feelings and emotions and
think about people performance. Management as a profes-
Since players are motivated in different ways, coaches must
incorporate that understanding into specific communications. Importantly, this dimension of coaching reveals that there is no
template or formula for optimal coaching, or, more generally, optimal ways for interacting with people. Coaches regularly eschew the idea that they have some secret process or practice
and credit their team’s success to the players and the relationships they have with each other and the coaches.
Superior communication: Closely related to individual
attention is the need for immensely effective communication. Without exception, great coaches are great communicators. In many cases, great communication means explaining things
This is a very important concept that may add to how we
sion features an approach that management is something that
managers do to employees. A responsive approach reverses that orientation and makes the manager responsive to the employees. This seems to relate to the servant leader concept as well as the idea The Forum set forth in the end of the leadership
paper about the need for organizations to borrow the consumer insight concept from Marketing and develop “employee
insight” to guide managerial practices. Coaches seem to do this
in a more fundamental way as represented by John Wooden’s statement, “Make sure that team members know they are working with you, not for you.”
to players so they understand why coaches make the decisions
Summary
coach’s decisions, they feel a lack of respect and may lessen
performance. Businesses have long invited successful coaches
information to players, in both practice and games, which
inspiration and leadership. This paper has drawn out the
they do. In contrast, when players do not understand their their level of trust. A major aspect of coaching is conveying improves the performance of individuals and the team. Coaches must create an environment for that information to be properly received, understood and acted upon. The key
people-related aspect here is that the information only has
value because of the trust, respect and commitment the coach has engendered overall.
An additional aspect of communication is the expression
appreciation to players. While appreciation can serve as a means of encouragement, coaches caution that appreciation
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to be speakers, and their emphasis has mostly been on
concepts in coaching that reflect the people-first approach
of The Forum, and relate to people performance. Coaching
is inherently people-first. While coaches need some technical expertise in the game, their success is far more driven by
people-related skills than anything else. Perhaps most impor-
tantly, excellence in coaching results from what we might call “player enrichment” — a sports equivalent of employee enrichment, as developed in The Forum leadership paper. Players
Fall 2011
of appreciation. Coaches go to great lengths to express direct
There are many parallels between coaching and people
perform best when an organization supports all aspects of a player’s life. CCN
25
Never Underestimate the Importance of Education Training employees for more than the technical role of their job is key in every company’s customer service success Customer Care News is continually dedicated to informing business
owners and leaders on the importance of providing excellent customer care and providing information and education to help businesses improve all
I
n our fast-paced, competitive world, providing exceptional customer service is critical. Stellar service is no longer
a passing thought, but is the lifeblood of an organization
aspects of customer satisfaction. To that end, Associate Publisher Dr. Keith
— survival depends on it. When talking to business owners or HR
employees, who are on the front lines with customers every day, to provide
of providing excellent service. So, why do American companies
Levick weighs in on the importance of properly educating and training
struggle with applying what they know to be true?
Fall 2011
that level of customer service the company desires.
professionals, I have found that most understand the importance
26
Customer Care News
The Better Business Bureau (BBB) received approximately one
• Fifty percent of customers report having a negative expe-
million customer service complaints in 2010 (10 percent higher than
rience in the past six months.
the previous year), and statistics pertaining to customer service are
• A negative experience is told to three to eight people.
to struggle. Why?
• One hundred satisfied customers generate 25 new
as numerous as is the plethora of books on the topic. We continue
• It takes 12 positive stories to offset one negative story.
It boils down to education and training. Many business owners
customers.
and top leaders within companies seem to believe that common
• Most companies lose half their customers every five
that dispute that notion. From new supervisors who are thrown on
• When a customer is dissatisfied:
sense is equal to common practice. There are far too many examples
years.
the front line and expected to run a team well to customer service
• 4 percent tell management
representatives who are required to satisfy a disgruntled customer
• 96 percent go away
without proper and ongoing education, failure is inevitable.
• 91 percent never return
Effective customer service requires the ability to combine
interpersonal, intrapersonal and technical skills. Business owners
Company leaders can no longer trust that an employee intui-
certainly recognize the importance of providing technical training
tively knows the importance of or has the skills to provide excep-
training, however, many shy away. Unfortunately, this shortsighted-
training — not a pamphlet or book to read or a crash course on
to their employees. When it comes to providing interpersonal skills
ness has a major impact on the company’s bottom line. Consider the following, shown by research:
• It is 30 to 40 times more expensive to acquire new customers than it is to manage existing customers.
tional customer service. Like any skill set, it requires education and “pleasing the customer.” Developing good customer relationships
is not an event but rather an ongoing process of understanding yourself and the customer, and then providing what the customer wants and needs.
It begins with employees understanding themselves. There is a
• A five percent increase in overall customer retention
strong relationship between how one feels and thinks about him/
• Negative word of mouth results in an 8.5 percent
following cycles put this in perspective:
equates to a 25 to 55 percent increase in profitability. decrease of revenues.
herself and the level of customer service he or she provides. The
Unhappy Depressed Negative Self Esteem
Happy Positive Self Esteem
High Energy
Low Energy Less Productive
More Productive Fall 2011
www.customercarenews.com
27
Now that human behavior is reduced to two cycles (positive and negative), where would
you prefer to spend most of your time? Most of you would say, I’m sure, the positive cycle. However, research shows that at any given point in time approximately 66 percent of work-
ers are in the negative cycle. The reasons for this are numerous. From financial troubles to health problems to work hassles, people find their way to the negative cycle far too often.
If 66 percent of workers are in the negative cycle, where do they work? An employee’s
attitude (the cycle they are in) directly influences the level of customer service. Dissatisfied Customer
Satisfied Customer
Provides Poor Customer Service
Creates Loyalty Negative Self Esteem
Unhappy Depressed
Creates Disloyalty
Provides Exceptional Customer Service Positive Self Esteem
Happy
Low Energy Less Productive
More Productive
Lowers Profits
Unhappy, Less Satisfied Employees
High Energy Greater Profits
Happier, More Satisfied Employees
Greater Employee Stability
Greater Employee Uncertainty
The above service cycle demonstrates that it is imperative for employees to be aware of
how they communicate and interact with the customer. How an employee communicates
begins with self-awareness. Is the employee aware of his/her attitude when interacting with a customer after a road rage incident on the way to work? Are they aware
Effective customer service requires the ability
and the energy they bring to the
to combine interpersonal, intrapersonal and
employee aware of the micro-messag-
technical skills. Business owners certainly
of their tone of voice, body language, interaction? Equally important, is the es the customer presents? If so, do they
know how to appropriately address
recognize the importance of providing
those messages?
technical training to their employees. When
skills, respectful listening, empathic
it comes to providing interpersonal skills
tions, etc. are what set apart strong
training, however, many shy away.
These and other interpersonal
responding, asking the “right” ques-
customer service companies from the
pack. Any company can announce
they provide exceptional service, but it is the company that truly integrates it into its culture
Fall 2011
that maintains a competitive edge over the competition. When employees are educated and
trained appropriately, exceptional customer service becomes their first and foremost state of mind and action. CCN
28
Customer Care News
Goren and Associates, Inc. We Believe Learning is a Process, Not an Event!
Goren and Associates Inc., headquartered in Farmington Hills, Michigan, is an organizational training, executive coaching, and consulting company since 1981. We design and develop customized courses to fit the needs of our clients. Our goal is to create a collaborative partnership with our clients. Together, we strategically assess, define, develop and deliver the highest quality and relevant learning solutions for employees. • deliver high energy, instructor-led training • certify the organization’s trainers to facilitate our coursework • work with poor functioning teams to become re-aligned, resulting in higher performance • assist organizations in managing all phases of a change initiative • deliver organization and employee assessments • provide one-on-one leadership coaching • facilitate strategic planning and visioning • facilitate executive retreats
Goren and Associates, Inc. 32000 Northwestern Hwy., Suite 128 Farmington, MI 48334 800.851.0824 www. gorentrain.com
Our Belief Goren and Associates believes that people are a company’s most important investor. Yes, investor! They choose where, when, and how to invest their time, effort, skills, knowledge and attitude. These investors are the organization’s most valuable and vital resource. We believe that a performance driven culture where employees are treated as assets whose value can be enhanced through investments, creates a win-win return-on-investment (ROI) for both the organization and its investors.
CustomerCare News www.customercarenews.com