Latest / Customer Service Revolution | Customer Experience & Employee Experience for Business Leaders / 199: Creating a Zero-Risk Customer Experience
Transcript
- 0:01Hello, revolutionaries.
- 0:03Welcome back to another episode of the customer service revolution podcast.
- 0:09I am here with your host, John DiJulius, and I am Denise Thompson, managing partner of the DiJulius Group.
- 0:18How are you, John?
- 0:20I am doing fantastic.
- 0:22How are you?
- 0:23I'm doing great.
- 0:24I'm doing great.
- 0:25Thank you.
- 0:27I wanted to tell you a story.
- 0:30I recently got new glasses and are you familiar with Warby Parker?
- 0:37Well, this is one pair.
- 0:37I actually got two pair.
- 0:39So Warby Parker.
- 0:42Yeah, I use them.
- 0:44I think they're great.
- 0:45They have great service.
- 0:46So I got two pairs and the one pair I just did not like at all.
- 0:51And my own fault, I actually tried them on in the store, but when I received them at home, didn't like the color, didn't like a couple of things about them, took them back and you
- 1:01expect you would get some kind of flack and none whatsoever.
- 1:07Not only did they happily take them back and help me to select a new pair, but even said,
- 1:13We don't need the case or the cleaning cloth that came with it.
- 1:17Would you like to take that home?
- 1:19you know, made it easy as pie to do.
- 1:24And then I got my second pair that, you know, my replacement that came and something's not right.
- 1:31There's a, the field of vision at the bottom.
- 1:37And any other place I would be concerned about having to go back again, but you just know that.
- 1:43have a pattern of complaining.
- 1:46Right.
- 1:46Yeah, that's that's what I look like.
- 1:49I am the squeaky wheel.
- 1:51This is the one that's not happy with yeah but I know that it's going to be an easy transaction because They are easy to deal with so it's something I wanted to talk about
- 2:02today is being zero risk Being a company that You know people have no challenge doing business with they make it easy to do business with them
- 2:15Yeah, and you're, go ahead.
- 2:18I was gonna say, and it happens to be the topic of an upcoming live stream workshop that you are doing in June.
- 2:26Yeah, so zero risk is exactly what you described.
- 2:32To be a zero risk company, what it doesn't mean is that company never screws up or drops a ball.
- 2:39That's impossible.
- 2:41What a zero risk company does mean is that they probably screw up, drop the ball less than their competitors.
- 2:53But just as important,
- 2:55maybe more importantly is when they do drop the ball, they pick it up and make it right.
- 3:00And in your cases, know, and Amazon, it's not just about being easy to do business with, but it's when something goes wrong.
- 3:11you know, Amazon to me is zero risk.
- 3:15Nordstrom's is zero risk.
- 3:17Apple is zero risk.
- 3:19You know, I just, I know like with Nordstrom's, I don't have to worry if it's like,
- 3:24past 30 days or I can't find the receipts or you know like you said you know because in so many cases you think of all these arguments and what they're gonna down and you're gonna
- 3:35come back with this and then when they don't do that you're kind of like you know I want to fight but like Amazon I and this always happens is now it's just what I expect but one
- 3:47time I bought a digital viewer you know the picture frame
- 3:54where put digital thing.
- 3:56And I don't know why, but I bought it in August as a Christmas gift.
- 4:00I no idea why, I'm usually not that thing.
- 4:02So I never opened it until Christmas or right before Christmas.
- 4:05And now whoever it was for, I wanted to load pictures and it wouldn't go on.
- 4:12And I'm I'm screwed.
- 4:15It's December, I bought it in August, but I thought I would try just the same.
- 4:21And so...
- 4:22went to Amazon and they did say you have to deal with the third party.
- 4:27I'm like, now I'm really getting...
- 4:28Third party said, kind like what you said, they said, keep it.
- 4:36Maybe you can go, maybe it's a plug, you can go get it Radio Shack or whatever it is.
- 4:40We'll send you a replacement one.
- 4:42And I was blown away and made me trust Amazon because Amazon...
- 4:49is so strict with their vendors that their vendors have to keep their customers happy, otherwise Amazon will kick you off.
- 4:58But that's zero risk.
- 5:00And that's one of the elements is having protocols in place for when the ball is dropped or a customer is unhappy.
- 5:08Anticipate it.
- 5:10And so the best companies know where they're gonna drop the ball.
- 5:14They don't know if it's gonna be today at 10 or tomorrow at two, but they know.
- 5:18These are the four most common places we drop the ball.
- 5:20So let's create some systems that get it from 5 % to 2%.
- 5:26Huge victory.
- 5:27But, but, still going to happen 2 % of the time.
- 5:32So let's be prepared for when it does.
- 5:35That the 18-year-old hostess or the GM can handle and the customer isn't upset.
- 5:43So what does that look like being a company that knows where they dropped the ball?
- 5:49How did they figure that out?
- 5:51So, you know, it's from your research, it's from complaints, it's from all your service defects, it's, you know, what do companies complain about?
- 6:01And usually, it was funny, we did it for the hair salon, you know, 25 years ago.
- 6:10And at the same time, I was working with Price Waterhouse, consulting with them.
- 6:16And our four or five places we dropped the ball the most were the exact same.
- 6:21Hair salon, Price Waterhouse.
- 6:27In no particular order.
- 6:29First one was, let's say Price.
- 6:34And it was more of a communication of price.
- 6:38That on our menu, on the website, whatever it says, know, highlights, start at $150.
- 6:45But you have long hair, thick hair, you ask for, you know.
- 6:48a lot of different things and you get up and it's $260 and you're like, it's only 150, right?
- 6:57We didn't manage expectations.
- 6:58We didn't say based on the thickness of your hair, how long your hair is, what you're asking for, this is what that will be.
- 7:05It's gonna be about $260, giving that guest the option to say, hell no, or.
- 7:14what can I do to get it lower?
- 7:15We can not do this, this, this, and then doing that.
- 7:18So it's usually a miscommunication of price.
- 7:22Quality of work.
- 7:23You just don't like what you got, what you left with, what they did.
- 7:26All right, that's number two.
- 7:31Delay.
- 7:34You might have a three o'clock appointment at the doctor's office or we're expecting your financials.
- 7:43Tuesday at nine and you know got blown way past that right.
- 7:50Professionalism of an employee.
- 7:53They gave you an attitude.
- 7:55They were you know whatever how they made you feel.
- 7:59And I might be missing one but you know those I couldn't believe those were the same for a hair salon and the same for Price Waterhouse.
- 8:09So now once you know them
- 8:12Alright, what can we put into place that reduce the appointment mistake slash delay?
- 8:22Alright, so, you know, back in the day when we started, before we'd hang up and we had the software tell us, because you called up and you're talking about, you know, EY haircut
- 8:33with Sandy and I'm giving you all Sandy's availabilities and, you know, she has three o'clock on Thursday or six on Wednesday.
- 8:42And we talked about so many times that you hung up and you thought it was six o'clock on Thursday, right?
- 8:48So now before we hang up, all right, Denise, that's Thursday, February 1st with Sandy at the Solon location for a haircut at 6 p.m., right?
- 9:01And it's a little script that reduced the, wait, I thought you said, but it's still gonna happen.
- 9:11Right?
- 9:11If we can get it from, you know, if we make one percent of appointment mistakes a week, you know, we're pissing off 20 people if we are 99 % accurate.
- 9:25So now what do we have in place for when that client walks in and we don't have her down for the time she thinks, you know, now we have, you know, boom, if it's a minor
- 9:34inconvenience, like 10 minutes, or we can get, you know, don't let her know or thank her for her patience.
- 9:40If it's a major one, you gotta do major recovery.
- 9:45And that might be it's on us and you're getting something else on top of that because we have to ask you to come back tomorrow or wait two hours.
- 9:57Here's something that I have an issue with with companies that, you whether it's you're taking something back, you had to wait too long, whatever it might be.
- 10:07And this just happened to me with an app I was trying to get rid of.
- 10:14And I had to call and the person told me they could, whatever they told me they could do.
- 10:20I'm like, well, you're, they advertise themselves as,
- 10:28365 day return policy or something like that.
- 10:32Well, I could return the first part at full under that, but then that's all I can do.
- 10:40And so I asked, there someone else I can speak with?
- 10:43Well, let me put you on hold.
- 10:44So they put me on hold and then they come back and they say, well, I can do this.
- 10:49And I'm like, that's still not, it just wasn't right.
- 10:52And is there somebody I can speak with?
- 10:55And they put me on hold again and they kept coming back and it kept getting better and better and better until they finally gave me what I had originally asked for, which was
- 11:05frustrating.
- 11:06Right.
- 11:06Now that person could be a retention specialist who, you know, that's their job to try and get you to either stay or to not give you something back, which some companies are known
- 11:21to have, right?
- 11:22A cable company maybe.
- 11:25and all that employees incentives and pay is predicated on them not letting people quit.
- 11:38It's not the employee's fault.
- 11:40right, right.
- 11:41And I completely understand that.
- 11:42And I was almost laughing speaking with the person knowing that these things take place.
- 11:49But on the other side, our employees that are empowered and a lot of times employers are afraid to empower their employees to do whatever it takes to make a a client customer
- 12:02happy.
- 12:03How do you get to the point?
- 12:05where you can trust and empower your employees to take care of things that happen.
- 12:10Like you mentioned in the salon, right?
- 12:13Somebody has to wait a long time depending on how long it is, is how big, how do you train that to happen?
- 12:21So my philosophy I try to always say in my companies is you'll never get in trouble for something you do, you only get in trouble for something you don't.
- 12:30Meaning just take care of it.
- 12:33I don't want this to spiral, I don't want her to have to ask for the manager, contact me.
- 12:40That's not good.
- 12:42She or he's gonna be doing brand terrorism and every time they have to retell their story they get more angry and they remember that this happened actually one time before.
- 12:51You know, now, you know, they've told everyone and, you know, they are embellishing it every time they tell it.
- 12:58So just take care of it.
- 13:00I'd rather my employees be naive than paranoid and don't punish 98 % of the customers that you're afraid 2 % are gonna get taken advantage of.
- 13:10I'm okay with getting taken advantage of 2 % of the a time because when I get back from the 98 % that we just give no hassle, right?
- 13:18We'll make it right.
- 13:19We over-correct.
- 13:21We address it and we over correct.
- 13:24I just think that's all in the culture and training that you have to give your employees.
- 13:30And just because you train them once doesn't mean because that employee, you know, they're loyal to the company and they have been pre-programmed by their past jobs, not to let
- 13:44customers take advantage of them.
- 13:46And you know, and you gotta say, no, it's okay.
- 13:49It's okay.
- 13:50You know, I don't think they are.
- 13:53know, and it's not the employees' fault, but they still will have a knee-jerk reaction, a muscle memory to defend, to question.
- 14:04And so you have to constantly be teaching them, you you don't have to, you know, them the third degree.
- 14:09You don't have to make them prove anything.
- 14:12Now there is a catch net for, like if someone always isn't happy and that, but you know, I even like to talk about that, you know, because we,
- 14:20we make that one or two percent feel like it's 50%, because that's the only conversations we have.
- 14:27But it's about training, it's about really celebrating that, hey, Sally, the 18-year-old hostess, made the Platinum VIP client so happy when we screwed up her appointment and she
- 14:42gave her next one on us and a free pedicure.
- 14:46You're celebrating that.
- 14:48versus me, would have gotten fired for doing that at my last job.
- 14:51Well here you might get fired for, you know, if you didn't do that.
- 14:55But that's a mindset, that's a culture shift.
- 14:59You know, that's really hard and you're probably not gonna find enough employees that will have that in them.
- 15:08So you have to really constantly be helping change that.
- 15:13So how do you train it?
- 15:14Is it just advertising it regularly?
- 15:18Yeah, so first off, we train where we drop the ball the most, in kind of three ways.
- 15:27it's minor inconvenience, yeah, you don't have to give away the house if we just made you wait five minutes.
- 15:33We could just...
- 15:33you know, hey, thanks for your we really appreciate that.
- 15:38If it's major inconvenience, here's what you, you come up doing it, doing whatever you need to.
- 15:47So talk about where, because you're also training them on how to avoid and reduce these in the front end by doing those things.
- 15:56And then having, you know, how do you want every employee to do it?
- 16:00This goes back to employee roulette.
- 16:03Someone may bring a complaint to you and you handle it perfectly.
- 16:06They bring it to someone else and they, again, are defensive and questioning and prosecuting and they put lipstick on something that deserved a lot more.
- 16:24Different companies have different acronyms.
- 16:26I tell my employees to do the LEAST.
- 16:30LEAST stands for Listen.
- 16:32empathize, apologize, solve and thank.
- 16:35And each one has its own training, right?
- 16:37Listen, don't interrupt, don't defend, know, listen like you're wrong.
- 16:44Because again, you know, I could get defensive and say, yeah, listen like you're It's hard.
- 16:50It's hard.
- 16:51Listen like you're wrong.
- 16:53Don't defend, explore.
- 16:55Don't defend your ideas, explore new ones.
- 16:58Let them repeat themselves.
- 17:00even though you know where they're going, even though someone already told you, they might get it off their chest.
- 17:08Empathize with them and apologize.
- 17:12And apologize might not be that you're admitting it was your fault.
- 17:17I apologize for the miscommunication.
- 17:19I apologize for that this didn't go the way you or I had hoped.
- 17:26Solve.
- 17:28and make sure they know the resources and what they can do and thank.
- 17:33Thank you.
- 17:34I have an email signature, we probably all have email signatures, but I have an email signature for customer complaints because I wanna make sure I get it right.
- 17:46And I what it says about me that I need an email signature for people that complain, right?
- 17:50We get enough.
- 17:53But I just, wanna thank the person profusely because,
- 17:59Most of the time I don't tell a company when I'm unhappy.
- 18:02I just stop going.
- 18:05And I'm like, why don't I tell them?
- 18:06Because I don't think they care.
- 18:07Why don't I think they care?
- 18:08It's just the vibe, right?
- 18:10And I'd rather get home 15 minutes early than say, can I see your manager?
- 18:14Can I speak to your supervisor?
- 18:17And just know that that person thinks that I'm just trying to get something for free.
- 18:22I don't want to deal with that.
- 18:24I'm just never going come back.
- 18:26So then I start thinking, God, how often does that happen to me?
- 18:28in our businesses, probably all the time.
- 18:32So how can we advertise we care about your feedback?
- 18:38Did someone crush it for you today?
- 18:41Please tell us so we can celebrate that behavior and recognize them.
- 18:45Did we miss the mark?
- 18:46Please tell us so we can reduce this from happening again in the future.
- 18:51that kind of helps go with least and training them.
- 18:56on the listen, empathize, apologize, solve, and thank.
- 19:02And so that's where my thank comes in is my email is just, know, Denise, thank you so much for taking the time to share this with me.
- 19:10You could have easily not spent the time in sending me this email, calling me, whatever the interaction was, and not just, know, but you gave me the opportunity to not only make
- 19:20it right with you, but hopefully reduce this from happening to anyone again in the future.
- 19:25And then if there's a, please accept this gift card, please accept, whatever that, that's gonna be a little bit more customized.
- 19:32But back to an earlier point you said, Starbucks, when we were working with them 10, 15 years ago, I remember they had come out with, and I think they still have them, if your
- 19:49order was screwed up or a debacle or you made the wait too long, they would,
- 19:54give you your order, you pay, but they give you a card that says, sorry that your experience wasn't what you or we expected, your next beverage is on us.
- 20:04I love that.
- 20:05Like I just think that's the coolest thing.
- 20:07Versus just taking someone's money and leaving and thinking that they even know that that was like the worst experience.
- 20:13This is saying we know this wasn't right.
- 20:17And this is what we want to do to make it right, right?
- 20:19So I love that.
- 20:20But being, you know, getting to work with Starbucks at their corporate, their fear was that their employees, the baristas would give them out to, if you sneezed, everyone would
- 20:31get one, you know?
- 20:32Well, five years later, their frustration was that their employees weren't giving them out enough, right?
- 20:40That you would comment, you know, at lunch and ordered, you know, had a 12-drink order for everyone in your office.
- 20:48And you pay, then you leave.
- 20:50And then you come back 20 minutes later and say, you you missed one, one was not this, one was that.
- 20:57here it is, and no charge.
- 20:59Like, you know, they're doing something great.
- 21:00Well, you've already paid for it.
- 21:02Well, she missed her lunch.
- 21:05She spent her lunch driving back and forth, and probably having coworkers mad at her.
- 21:09You should have given her three there.
- 21:11And so, you know, most of the time, you'll see that you really have to...
- 21:16encourage and celebrate and push employees to help customers, then they're going to give away the farm.
- 21:28You brought up something with the email thanking them for bringing this to your attention so it doesn't happen to someone else in the future.
- 21:38What do do at that point to make sure it doesn't happen to someone else in the future?
- 21:44Well, that's having your customer, client, guest challenges that get documented and that we can review and find that, you know, or we're seeing, you know, is it a one-off that was
- 21:57just such a bizarre thing or is there, you know, a pattern here happening and why?
- 22:04Is it a system thing?
- 22:06Is it a training thing?
- 22:08Is it, you know, an awareness that, you know, and then being able to address
- 22:13and hopefully make that go away or get greatly reduced.
- 22:21Do we look for whose fault is it?
- 22:24Who do we blame it on?
- 22:27Not necessarily the who is the origin of the fault.
- 22:31So it could be the person on tech support's fault, lack of a better word.
- 22:41But that's because they were never trained.
- 22:44know, and didn't she go through, well no, when we hired her, we were so short staffed, we couldn't put her through the training, we had to throw her on...
- 22:52you know, on the phones, because, you and then, you know, we always said we were going to put her through the zero risk training, you know, and it just never happened, right?
- 22:59Or, you know, we have trained her on that or that.
- 23:04It's usually a coaching, you know, opportunity, or it could be assistance.
- 23:08It could be a computer, it could be a technology issue.
- 23:10could, you know, be any one of those things that, you know, your complaint could be, you know, I'm on hold forever.
- 23:16It could be staffing, you know, or, you know, it takes, you know, seven minutes.
- 23:22to schedule an appointment.
- 23:24That could be a technology issue.
- 23:27by tracking your customer complaints and putting them into those buckets, you can find out and then execute on what system needs to be improved, whether it's people training or
- 23:40system.
- 23:42And then is there a follow up once someone has complained, once you've sent a letter, once they've been given something to rectify the situation, a gift card?
- 23:56Yeah, mean, like, so that email that I use is usually the follow-up because I hopefully have already talked to them and as promised, here is what I said I'd send you and that's
- 24:09the follow-up.
- 24:10If it's major, we better, you know, be following up and major, know, listen, it could be, you know, a $200,000 product service and we got to make sure and check on them as are
- 24:25things going better.
- 24:27since, you know, a few weeks ago when we talked.
- 24:31And they could say, absolutely, you know, it seems to be resolved or honestly, no, you know, they're still not getting back to me.
- 24:40You know, they're still ghosting me and all those things.
- 24:44So service recovery starts with anticipating and goes all the way through recovery.
- 24:54Yeah, to 100 % happy, which goes to the service recovery paradox.
- 25:01is scientific evidence that if you expect to, you're going to a restaurant, a dentist's office, whatever business you're dealing with, you have expectations, not unrealistic
- 25:12expectations, just, oh, this is gonna be a nice dinner, or I should get in and out of there in 45 minutes and get my teeth cleaned, whatever the thing, and you expect it.
- 25:21And if it happens like that,
- 25:24You're not blown away.
- 25:27You're not more loyal.
- 25:32I don't think not being disappointed makes us loyal.
- 25:39But it doesn't mean you're gonna go to them again.
- 25:43May or may not.
- 25:45But if someone opens, if you meet a dentist, if someone opens a restaurant, you might jump at the chance or someone gives you a gift card.
- 25:54You might jump at the chance for that.
- 25:58The service recovery paradox says that, yeah, if you have those expectations and they're met, you won't be, your expectations of lifetime value are not any higher.
- 26:10If someone drops the ball, like your Warby Parker, like my Amazon story, and make it right, you're 10 times more loyal in lifetime value and spend more.
- 26:23And so I always say, you know, the best customer loyalty program we could do is screw up first, right?
- 26:29Because of the potential.
- 26:31So I think, you know, we have to look at screwing up as in, I don't like it, but it is an opportunity to be a hero to someone.
- 26:39Because their expectations are that they're gonna fight and you're like, no, no, no, no.
- 26:48And over deliver.
- 26:52So you heard that here, folks.
- 26:54but your next one's free.
- 26:55it again.
- 26:56I said, so you heard that here folks.
- 26:59Next time you screw up at work, something happens, explain that John DiJulius taught you that this is how you're going to retain and have loyal clients.
- 27:08Yes, as long as you do the second part.
- 27:11the recovery.
- 27:14I know you're going to get into a lot more of this in the upcoming workshop in June, so I won't have you go through all of it today.
- 27:28Yeah, I love Zero Risk.
- 27:30It's one of my favorite workshops that we do and helping people figure out from how not to say no when you can't say yes.
- 27:46What are your most common areas that customers put you in a position that you can't say yes to?
- 27:52Well, how can you, what are your answers that, know, if it's not a no.
- 27:58but you can help get to a yes, give them options, give them that.
- 28:04Different exercises like that, what are the stupid questions you get asked that aren't stupid to the customer, but may be stupid to you?
- 28:16Like how long is a one hour massage?
- 28:18We get that in the salon.
- 28:20I don't know, maybe 60 minutes?
- 28:23Well, what they're really asking is,
- 28:27Can I make it to my son's tee ball game tonight?
- 28:30And quite frankly, we want them there 15 minutes before to get changed in a robe and then their massage is from 5 p.m.
- 28:40to 6 p.m.
- 28:41But 90 % of our guests will want to take a shower after.
- 28:46So while we'd only block off an hour, that's a good 90 minutes time, not counting drive.
- 28:55for someone and that's what they're really asking is, know, can I get home to my, can I make it to my next appointment?
- 29:03And so teaching your team members what is really being asked, you know, instead of what they're literally saying.
- 29:15Thank you, John.
- 29:17And we'll look forward to hearing more about this on June 9th.
- 29:21There will be a link to that in the show notes.
- 29:25And that's a wrap for today.
- 29:27Thanks, Denise.