Never Underestimate the Importance of Education

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

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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

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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

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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

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Customer Care News