In this short YouTube video, James Grima, Founder and CEO of Positive Training Solutions explains why you should choose Positive Training Solutions for your quick service retail establishment.
This question has become legendary – reported to have generated $5 Billion for McDonald’s… Of course whenever a GREAT idea is used, others jump on the bandwagon with total abandon, hoping to re-create the original success. Sometimes, as in this example – the imitator puts a new spin on it. Sometimes it works and sometimes well… it’s taken a little too far.
Today’s lesson is two-fold (1) Life’s too short to be too serious and (2) whenever you take a great idea, be careful not to take it to an extreme or distort the ORIGINAL intention of the strategy.
Often the success is all about the NUANCE. For example “Would you like fries with that?” was an INSTANT success, but the alternate “Would you like an apple pie with that?” was not. People did not associate hot apple pies with hamburgers, even though the apple pies were good.
James Grima, founder and managing director of Positive Training Solutions recently recorded this brief YouTube video just for you – click on the 2 minute video below to learn how you can get your customer service staff trained on a cost positive basis!
I know that the previous blog posts have been focused on the dark or negative side of customer service with a focus on Bad Customer Service and the costs of losing a customer. But let’s face it – there’s nothing like a little motivation to get the message across that this is costly! I want to start shifting the conversation to a more positive approach with an interesting case studies…
Customer Service Case Study #1: One Delay Turns Into 5,000 Reasons To Come Back
This case study is about American Airlines.[i] The author of the original article was on his way from a business conference in Denver to his home in Chicago. Shortly before arriving at the airport he received a text message from American Airlines stating that his flight was to be delayed by thirty minutes. While waiting in the airport he received several more text messages, each subsequently stating that his flight was to be delayed for even longer. It turns out there was a mechanical problem with the plane and he ended up leaving five hours after his original departure time.
The author, like many disgruntled customers, did not complain to American Airlines. However, American Airlines recognized their mistake, sent the author an unsolicited apology letter, and offered him 5,000 free frequent flier miles for his trouble. American Airlines preemptive good service gave the company another loyal customer.
Customer Service Case Study #2: A Bad Process Is Reversed
Continue reading ‘When Bad Customer Service Turns Good’
Did that subject line get you? I thought it would 
The customer is mad. You didn’t do what she wanted, maybe you weren’t friendly enough, maybe you didn’t know enough about the product. Whatever the problem, you have to fix it, the consequences for not doing so are severe. Even if she’s mad, you’re going to want to keep her as a customer. It costs five to six times as much to get a new (first time) customer as it does to keep a current one. [1]
Furthermore, long term customers are usually more profitable. A 5% increase in customers retention can boost profit by 25% to 125% [2] You also run the risk of her leaving and telling other people and losing potential customers because of her bad experience. Clearly you have to keep her from leaving angry, but how?
Play Nice
Customers were asked what single factor best defines high-quality service. The most frequent response was personal attention. [3] You have to let the customer know that you are concerned that they are upset. Tell them that you will personally do everything that you can to fix the situation. Make them feel like you are on their side.
Be friendly from your first interaction, whether or not the customer is complaining, an aura of kindness goes far in any industry. There are certain customers that will make it hard to be nice. You have to try to maintain your cool, no matter what the customer does or says, you have to respond politely. Her reaction will escalate if you respond in anger, whereas overreaching politeness has the power to diffuse the whole situation.
Give It Away
Continue reading ‘Retail Make Up Sex’
One of the worst things about bad customer service is the fact that 96 percent of the time the customer will not file a complaint. At face value this does not seem like a bad thing, less complaints means less for service representatives to deal with. Ninety-one percent of those who don’t complain won’t come back. [i] It seems that they just quietly decide to patronize another company. Unfortunately, it is not that easy, the slighted customers are still complaining, they’re just complaining to other customers and prospects.
From previous blog posts, you know that (1) for every poorly served client, you’re handing him/her over to a competitor and (2) the costs of bad customer service can be astronomical.
How ‘herding’ makes a bad situation worse
Continue reading ‘Bad Customer Service Made Worse With Herding’
In a previous blog post with the provocative title how to grow your competitor’s retail business and run yours into the ground, I was pretty graphic about the costs of bad customer service. That being said, I thought it worthwhile to do a few more calculations to really hammer home the costs:
The Costs Of Bad Customer Service
Example #1: One sale of $100 with $20 of revenue per month:
Continue reading ‘The Costs Of Bad Customer Service’
I know this is a bold way to start a blog, but you know what? It needs to be said and then dealt with. It’s not about being sensationalistic, but making the point blatantly to get your attention. I know that as a retail food establishment the pressures on you are enormous. I know from personal experience which I will share with you in future blog posts. For today though, I want to focus on customer service and technology.
The introduction of technology in the workplace speeds up interaction and makes for smoother customer service, right?
Well, in many cases that’s wrong. Customers crave old-fashioned, friendly, and informed service over speed. What’s more, the quality of customer service is vital to any company because poor customer service is the number one reason that customers switch to another company.
Nearly 70% of all customers who switch companies switch because of poor customer service.[i] Inadequate customer service doubles down on trouble for a company because it drives business away and into the open arms of their competitor.
Business’s desire to use technology to streamline the customer interaction process has actually sped up the switching process!
Many patrons feel that point-of-sale (POS) technology gives the service representatives an excuse to ignore customers in favor of a screen. The representative may also rely on technology to retrieve information, which makes them appear unknowledgeable about the product or service. These reasons, plus a lack of customized solutions, and/or policy-driven bureaucracy, are the main motivations for service related company switches.
Don’t forget the painful truth – every time someone leaves you it means your competitors gain a new client – OWCH!
The problem is particularly severe in the retail industry, which has the highest customer turnover rate.
In the past year, 19% of people have patronized a different retailer, such as a grocer or department store, because of poor customer service. [ii]
This means that, if you company is retail, it’s likely that poor customer service has sent almost 20% of your business to a competitor. There is not a single company out there that can afford to be giving away business at that rate. Let’s say that your small retail company would net $150,000 in income every year, if you lose patrons due to poor customer service than you are losing upwards of $28,500 a year. That’s $28,500 that you are literally giving away to your competition, you might as well be handing them a $30k check.
The problem is compounded by word-of-mouth on customer disservice.
The average disgruntled consumer tells up to twenty of their friends about their negative experience. Many of those informed will also chose to do business with another company to avoid a repeat of their friends bad experience. If we go back to the original small business example, and take an average of ten friends foregoing a business because of rumors of bad service, the small business in now losing $285,000 a year. That’s negative income, that’s bankruptcy.
So, why aren’t all retail stores bankrupt? It’s because patrons are constantly switching companies in search of better customer service. The only way to break the cycle is have innovative, friendly, and well-informed service that none of your competitors offer to their patrons. Then your business can start collecting all the ‘bad-service’ checks from competitors. Poor customer service may be an easy way to lose a lot of business, but good customer service has the potential to increase your income tenfold.
Want to know how to cash all those checks in?
You’re at the right place – bookmark this blog and stay tuned – we’re going to show you how to do that — EXPONENTIALLY!
[i] http://blog.gartner.com/blog/crm.php
[ii] http://www.redorbit.com/news/technology/186467/poor_customer_service_is_top_reason_consumers_switch_service_providers/
This is exciting for us here at Positive Training Solutions – we have a lot of information, insights and inspiration lined up for you. Make sure you subscribe to the blog so that whenever a post is published, you will get it by e-mail instantly, so you don’t miss out on a great idea that can make all the difference, because you know that it only takes ONE IDEA to start momentum building – like the pull of the merry-go-round… Once it starts turning, it gets easier and easier!
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