Latest / Customer Service Revolution | Customer Experience & Employee Experience for Business Leaders / 196: Navigating Price vs. Quality in Service
Transcript
- 0:44Welcome back, Revolutionaries, to another episode of the Customer Service Revolution podcast with John DiJulius.
- 0:52I'm Denise Thompson, Managing Partner for the DiJulius Group, and I am here with the Chief Revolutionary Officer of the DiJulius Group, Mr.
- 1:01John DiJulius.
- 1:02Hello, hi Denise.
- 1:04Welcome back, John, good to see you.
- 1:06Great to be seen!
- 1:08Where have you been?
- 1:10I was in, where was I last week?
- 1:12DC, DC.
- 1:13It was really good.
- 1:14It was a great group of ophthalmologists and their staffs.
- 1:18And LASIK, we'll throw them out there, Vision ophthalmology partners.
- 1:24But I love dealing with companies like that because they do LASIK.
- 1:28So anything elective.
- 1:30I think in medical they work harder at the patient experience because elective is optional and there's so many different price points.
- 1:40know, versus if it's just a, if it's a dentist that, you know, not doing cosmetic or any type of doctor that takes insurance, you know, they don't, you know, it's not a, you know,
- 1:51they don't have.
- 1:52I guess there's no competing on price in that regard and everyone needs it and has to have it.
- 1:57But so I've always liked elective, working with elective and medicine because they work a lot harder.
- 2:03But it's funny, obviously one of the challenges is it comes up that we worked on is, you know, how do you answer the question, I can get it cheaper somewhere else.
- 2:16And that, you know,
- 2:17And everyone has that.
- 2:19Everyone has that.
- 2:21But that freaks me out that people want to go to the lowest bidder for their eyes.
- 2:28Right?
- 2:30How was your eye surgery?
- 2:32Well, not so good.
- 2:34Don't see as well as I could, but I only spent $450 per eye.
- 2:39Right?
- 2:39You know?
- 2:40I mean, if it's a lamp, and it's the same lamp, and I can get it for 20, 30 % less, I'm all for that.
- 2:48It's like hurts.
- 2:49do see specials though, know, buy one eye, get one.
- 2:54So how do you, and I don't even know what it costs for that surgery, but if it's $5,000 an eye, how can you justify 10,000 versus 5,000?
- 3:09Well, so it's changing the narrative, right?
- 3:11It's, you know, so when we were working with this, it's like anything else.
- 3:15What's the, you know, so apples to apples, you know, so they were coming up with some examples of, you know, that their competitors say that you have lifetime, whatever,
- 3:25guarantee.
- 3:27But they said that's not really true because the lifetime guarantees only goes with that doctor.
- 3:32And if the doctor quits, retires, dies, the lifetime guarantee goes away.
- 3:38so making sure it's apples to apples, making sure that, you know.
- 3:44And how many procedures has that doctor done or that practice done?
- 3:53You know, it's kind of like Botox.
- 3:55like a group on to get people.
- 3:58but even Botox, like, you know, it used to be done just by, I don't know what the doctor was called, but now there's people that go to school for that procedure, but they aren't
- 4:09doctors.
- 4:11And I'm not discrediting it, but like, you know, who do you want it done by?
- 4:14Someone that just got out of a certification class?
- 4:19Or, you know, I don't know.
- 4:23So it's changing the narrative.
- 4:24It's like anything, you know, you know,
- 4:27Making sure that people realize that the cheaper you go, the more it's gonna cost them.
- 4:33And with eyesight, right?
- 4:35With a heart surgery, I mean, you're talking about some serious stuff versus I chose a cheaper cable company or internet company.
- 4:43Yeah, that sucks.
- 4:46And I'm gonna have outages or can't get ahold of a human being for tech support or all those things.
- 4:53which does cost you more and you just wish you would have paid the better price.
- 5:00But when you're dealing with it, even like when we worked with companies like Goodyear and they were talking about competing on price.
- 5:07I don't know, maybe I'd be, I don't know if I'd be a good or poor salesperson, but if a guy came in and said, I want the cheaper tires, I'd be like, well, let me ask you, how
- 5:20much do love your wife and kids?
- 5:23Right?
- 5:24Because, you know, for $75 more a tire when they're living in the Midwest in January, don't you want that peace of mind?
- 5:38So, I think it, you know, changing the narrative and making sure it's apples to apples and making sure, you know, that you're exploring what the true cost of going cheaper could be.
- 5:54So there were a lot of companies too, and I think of this with, whether it's retail or whether it's the eye surgeon that will, let's say nickel and dime you.
- 6:03So I have a lower price, but I'm maybe not gonna you about the perfect example.
- 6:10Right, and Frontier, it's, my god, it's $79 to Cleveland and Miami direct flight.
- 6:18But.
- 6:19but you have to stand and you have to...
- 6:21Yeah, you have to pick a seat or you have to pay for a seat.
- 6:25You have to pay for your carry-on.
- 6:27You have to pay for your luggage.
- 6:28You have to pay for a pilot, right?
- 6:31Anything else you want.
- 6:32And you know, now it gets a little up there.
- 6:34Besides, you have to incur horrible customer experience.
- 6:39I mean, you know, it sounds bad, but I probably was never so happy to see a brand file bankruptcy.
- 6:45this past year with Spirit Airlines just because they represent everything wrong or against what we preach.
- 6:53they're the anti-antithesis of good customer service.
- 6:57So Southwest was known for a long time, think, as being a lower cost.
- 7:02I don't know how low cost they are compared to some of the other ones now.
- 7:06However, they've always managed to provide great service.
- 7:09What makes them different?
- 7:10Well, I think they've taken a hit like Starbucks, the past, and maybe it's since the pandemic, but I feel like they aren't the darling of US.
- 7:23I feel like Delta has passed them, and I think this customer satisfaction has shown that.
- 7:28But yeah, they've always had a culture.
- 7:30I was flew on them last week to BWI, and it just...
- 7:34I chose the front seat because I didn't need my luggage because it's still as of today choose your own seating, right?
- 7:44I know they're changing but just at the front first row they have the southwest heart.
- 7:51Right?
- 7:51It's kind of like their logo, if you will.
- 7:54And I've always liked that.
- 7:55I just think they've done a great job.
- 7:57I operationally they're great.
- 7:59I've always just marveled that when you land and pull up to the gate, man, that door is open and they're unloading.
- 8:06It seems to be less than a minute versus everyone at why?
- 8:10Why can they do that?
- 8:11And it seems like it's several minutes, if not 10 minutes.
- 8:16before any other airlines gets it open.
- 8:18But their staff has always been more friendlier.
- 8:21I think they've always really obsessed over the culture.
- 8:24It may have been declined.
- 8:25And again, you know, the pandemic is really, are still, brands are, some haven't come back fully.
- 8:32A lot haven't come back fully.
- 8:34So you go to the Starbucks, which is in the news, and an article that it will,
- 8:41have come out, I think, by the time this thing come out.
- 8:45I talk about the Starbucks, the commoditization of the Starbucks experience 2.0.
- 8:521.0 was in 2007.
- 8:56Then CEO Howard Schultz sent an internal memo that the watering down of the Starbucks experience, we've just became obsessed with comp sales, same-source sales, and you know.
- 9:11all these things and we no longer are the third party place and that memo got leaked and it was a great, you know, scolding of looking in the mirror that Howard Schultz did and
- 9:23around that time, you know, that's when they hired us.
- 9:25And he came back, he came back to Starbucks, he had left, retired, if you will, and he came back and he resurrected it and
- 9:34like to think we had some part of that, then for the next, from probably 2009 to, you know, maybe close to a decade, they were the Darlings again.
- 9:45But now it's happened again, where they've had, I think, at least four quarters or four periods of decline in sales, consecutive, and...
- 9:56They're not the Darlings anymore and they got obsessed with efficiency and online ordering to go digital.
- 10:07They've reduced the size of their in-store.
- 10:10They just got away from the third party place.
- 10:15A lot of other things.
- 10:16So I think it's Brian Nicol, the former Chipotle.
- 10:20CEO is now the new CEO and you know I just wrote about all the things he's doing but he's even going back to writing names and you know I don't know messages and cups which some
- 10:32people don't like I've always loved that I've always loved that but getting back to the in-store experience you know and the thing that made Starbucks a third-party place
- 10:43So it sounds like you're saying they might need to bring you back though.
- 10:46Yeah, yeah.
- 10:48No, it's so, you know, it's all of these things of we get too caught up in profitability, efficiency, and we forget what made our brands so unique.
- 11:01Speed of Service makes me think of Domino's when Domino's hired the DiJulius Group specifically.
- 11:11So the example there was when they hired us, they said, what was it?
- 11:18They said, before they hired us, their commitment and all their advertisements, 15 years ago was all about speed of service.
- 11:26And back then, their mantra is, if you didn't, your guarantee was if you didn't get it within 30 minutes, it was on us.
- 11:32I think that was it.
- 11:33And so they said they committed to speed of service and over the course of time they were so proud that they accomplished that only to realize their friendly was last.
- 11:48So they became number one in speed of service and last in the industry at Friendly, their KPI.
- 11:55So that's when they hired us to help.
- 11:59resurrect, bring back that friendly hospitality without compromising speed of service.
- 12:04Which we did.
- 12:05and talk about a top it really came from the top with them.
- 12:11So Glenn
- 12:12So you're talking about their biggest US franchise-er.
- 12:18Correct, Glenn Mueller.
- 12:21Lived and breathed service.
- 12:25I remember seeing him actually physically run into stores and greet people.
- 12:31And Alan Lovelace, who is now, I see him opening locations.
- 12:36Another one, a big cheerleader for the people all the time.
- 12:39So they have an interesting model and they encourage people within the business to...
- 12:44to get to a point where they can open their own locations and they're always working to grow their people, which I think is fantastic.
- 12:53They changed from speed of service to becoming more service oriented, but they didn't change the people.
- 12:59Well, again, They wanted to balance.
- 13:03know, operational excellence with friendly hospitality.
- 13:07You know, it can't be one or the other if you don't want to be the spirit airlines of your industry.
- 13:15But they did it without having to change people, which I know is a concern for some people.
- 13:20How do I get the people that have worked with me for so long to become more service oriented?
- 13:26And we talk about
- 13:26have a quote that says you can dramatically improve the level of customer experience you're delivering with the exact same employees you have.
- 13:35Doesn't mean you have to go and clean house.
- 13:37Doesn't mean everyone, but I would be more worried about a leader that maybe has to go if they don't believe in it, they don't walk the talk.
- 13:46But I believe employees are more product of the training and culture they're put in.
- 13:53We talk about this all the time.
- 13:55Our first business, John Robert Spa, that I think is pretty well known in the Cleveland area for great customer service and all those things, hire from the exact same labor pool
- 14:05beauty schools that all the other salons in Northeast Ohio hire from.
- 14:09Yeah, these recent cosmetology graduates
- 14:17I don't know if they're any better or at their last job they were doing what they're expected to do.
- 14:25It's the culture and training you put them in.
- 14:28I think the kid parking cars for valet at the Ritz-Carlton or cashier at Chick-fil-A wasn't always world class.
- 14:35It's something about the atmosphere and culture.
- 14:39constant reminder of this is who we are.
- 14:42How do you constantly remind?
- 14:44Toma, top of mind awareness.
- 14:46It's from the branding on the, before you've interviewed them, right, of narrowing down your talent pool so we're not wasting your time, on the interview process, which is
- 14:58another podcast, but making sure that we're selecting people that have the potential for the service aptitude.
- 15:04Then the training that they go through.
- 15:07But the thing with training is,
- 15:12You can train a new employee perfectly, but the moment they, on what you want them to execute, but the moment they go out in their environment, their departments, and the
- 15:27majority of their coworkers aren't doing it, they're not gonna do it.
- 15:33So it's not just about what we do with new employees, it's holding the existing employees accountable.
- 15:38So yeah, it's...
- 15:39It's not training once a year.
- 15:40It's not training the only time in new employee orientation.
- 15:43It's constantly training.
- 15:44It's holding them accountable, having KPIs that hold them accountable.
- 15:49so it's the coaching, but it's also the celebrating and reinforcing the behaviors that we should be hearing about customer experience every day.
- 16:01It might be a 30 second, hey, I want to give you an example of what Denise did, how she was the best experience.
- 16:08in a customer's day by this.
- 16:11And that's something that's finding the baby in the burning building that she rescued, that's going to be less likely.
- 16:21And I think as an employee, I'm not going to get that opportunity ever or rarely.
- 16:28Denise was lucky she fell into it.
- 16:29It's the simple thing that Denise remembered the last time the client was in.
- 16:37her daughter was applying for this college, or remembered that the client likes her coffee this way, or whatever those little things are.
- 16:46Celebrating those little day-making acts to reinforce the peer pressure of this is who we are.
- 16:54This is what we do.
- 16:55to do when you're face to face.
- 16:58What about all the businesses that may be online?
- 17:03Yeah, I think it's the same.
- 17:05So I don't know if it's easier because the way we find out about it, and so we have two businesses.
- 17:14John Roberts said it's B to C, business to consumer, brick and mortar.
- 17:19And then we have the DiJulius Group, which is B to B, business to business.
- 17:23So we have both business models, if you will.
- 17:26And so it's about reinforcing
- 17:30You know, your never's and always, your client experience action statement, those things.
- 17:35And then it's about, so this just happened that, you know, recently, I was sharing with our customer experience executive academy last quarter, I think it was winter quarter,
- 17:48yeah, that, you know, we were doing the,
- 17:53customer experience action statement workshop for the 2025 attendees.
- 18:00So we're giving examples of all the great brands and their customer experience action statements and what they mean besides just the word.
- 18:08And so I got to the DiJulius groups.
- 18:12And ours is, what is ours Denise?
- 18:15Carpe Momento.
- 18:17Yeah, memento, yes.
- 18:19Seize the moment.
- 18:20And I see what that means is that every opportunity we interact with a potential client, existing client, vendor, team member, in the smallest of ways might be an email.
- 18:33Hey, know, there any chance I can get a call with, you know.
- 18:37one of my consultants, whatever, can I order books?
- 18:41Whatever the minuscule thing, not just the big product, the presentation or the workshop that's being conducted.
- 18:50said that's, Claudias, Denise, John, all of us, opportunity to seize the moment, own that moment, the way we respond to that.
- 19:04email, not just by saying, yes, we can do that, but you know, the professionalism, the accuracy, how fast, doing a little bit more than maybe they asked, we think.
- 19:16And so I was explaining that's what Carpe Memento means.
- 19:20One of the attendees said, I want to give you an example of that.
- 19:24I just reached out to Claudia, who is the salesperson for the Adjulius Group.
- 19:29and asked her about something about the project and realizing she's not the person I deal with for this part of the project.
- 19:38That should have been either Dave, my consultant, or Lindsay, the consultant's kind of liaison.
- 19:44And Claudia was like, absolutely, I can get that.
- 19:46And she did it all for me.
- 19:48And she goes, and then I was like, yes, we made the right decision.
- 19:52And this was like before the work got started.
- 19:54I think she had remembered after she sent the request to Claudia that in the introduction email after she signed that Claudia kind of said, all right, Lindsay will be taking it
- 20:06from here.
- 20:07But she ought to have it sent it to Claudia.
- 20:10But so back to that point, when she said that, I said, can you send me an email?
- 20:16so I can celebrate that, and so I shared it in our Slack, and this is an example of Claudia walking the talk.
- 20:22A couple different reasons, one, I won't do as good of a job, even now, articulating the way she said it.
- 20:30So I wanted to capture it in an email.
- 20:32Then I can celebrate it to everyone and get everyone realizing that's what we do, shame on me if I'm not doing that more often.
- 20:42but also demonstrating people other than the consultants, you know, do this, you know, and it's always the salespeople, the accountants, the hairdressers, the whatever, they get all
- 20:54the praise, but sometimes support people don't get the recognition, so you want to capitalize on that.
- 21:01So that's just another example.
- 21:02And then I had one, I did this again, I was speaking to Joseph Beth's booksellers, GMs.
- 21:11And I was just talking, and so after the person that booked us came up, and it was so funny, this one word just stuck out at me.
- 21:19They go, I just want to tell you, your team walks the talk.
- 21:23Every time I email Lindsay about something, her response is absolutely.
- 21:29And just that one word, right?
- 21:31Absolutely, not yes, here it is, attached is what you're asking for.
- 21:36But they're like, she just is on it and it's always absolutely.
- 21:40And so it just shows a little bit.
- 21:41So celebrating that, bringing that, recognizing Lindsay, but recognizing everyone that this is Lindsay living the client experience action statement, Carpe Memento.
- 21:52Lindsay does that even internally with the, she's always, of course, absolutely fantastic.
- 21:59Um, and I think the, you know, you bring up something with the emails, which I have noticed, I'm sure you have, I'm sure our listeners have that emails.
- 22:08Now lot of responses you get are AI.
- 22:13Right?
- 22:13So you read them and while it may have your name, it may be personalized to your company even, but don't you just know sometimes it's coming from another source.
- 22:26It's not a human being that's actually sending the email out to you.
- 22:30So being able to personalize things.
- 22:33Well, let me just interject, Denise, I'm sorry.
- 22:36I don't know, which is really scary, right?
- 22:41I think there are some I don't know, but there are a lot.
- 22:44But when you don't know, and I'm not saying the AI is right, but it was like, it's such a generic yes, no, whatever, one word answer.
- 22:58If you don't know it's AI, that's a pretty poor experience, if it is a human being.
- 23:03So it goes back to that.
- 23:05Something that I want to ask you about, maybe it's just something that's...
- 23:10You know me, I get like all caught up in something, but when I was working with a client a few weeks ago and their potential customer experience actions they meant, they were, I
- 23:19said, my new favorite customer experience action statement would be, like I almost wanted to change ours, is to make the person you're dealing with right now in that moment feel
- 23:30like they're your most important person.
- 23:33And.
- 23:34The reason why I like that and argue if I'm incorrect is I think that's measurable.
- 23:42Right?
- 23:43Like, if you came up, let's take it in all facets of businesses.
- 23:50If you came up to a counter with products, and the cashier just finished ringing up someone, you know, and it could be a Starbucks, it could be a Hudson's thing at the
- 23:58airport, it could be any place, and she, you you put the products in front of her, and she just takes her bar scan and just starts scanning it.
- 24:09You know, and she says, there anything else?
- 24:11Right?
- 24:12I don't feel like the most important person to her in that moment.
- 24:16Versus, if we're watching on video or in person, you come up and you put the stuff in front of her, and before she picks up anything, she just looks at it she says, how's your
- 24:26day?
- 24:28Like, she just, just that.
- 24:29Two seconds.
- 24:31You know, and then she could ask you, is there anything else you want, or did you know that we have?
- 24:35But just, just, you know.
- 24:36How's your day?
- 24:37know, guy think exciting going on.
- 24:40Any questions about anything?
- 24:41You know, take it to an email.
- 24:43An email response, is that more measurable?
- 24:46Was that email response, you know, would you argue that that email response was the most, you you made that person feel like they read the most important person, the phone call and
- 24:58the phone, Zoom, you know.
- 25:00Did you do the prep work leading up to that phone call?
- 25:04of if it's someone you know, existing client or whatever, you know, you don't remember everything about them that you did, you your research, your Ford, family occupation,
- 25:15Denise, how's Ken?
- 25:17You know, have you guys been to Florida recently?
- 25:20Is he still working in Pittsburgh during the week?
- 25:23You know, how's his job?
- 25:25You know, whatever that may be.
- 25:27Or if it's a, obviously being focused, removing any interaction,
- 25:34distractions of like, boom, my text is showing up here from my son, Bo, and I'm curious of what his answer was.
- 25:42Why, you know, haven't I, why did he charge my American Express?
- 25:46All these things that could distract us.
- 25:49And to the other thing is, maybe it's someone I don't have history with, right?
- 25:55It's a potential client.
- 25:56It's whatever the case is, but we have a scheduled call.
- 26:00doing a little recon on them, right?
- 26:03Going to LinkedIn, all right, who is this, who's our mutual connections?
- 26:08Where did they go to school?
- 26:09know, and I think it takes, you I know it takes less than five minutes.
- 26:14Going to their website, you know, and being able to say, Denise, I see that you know, you know, Matt Jensen.
- 26:24How do you know Matt?
- 26:26Isn't he a cool guy?
- 26:27Right?
- 26:28I mean, you know, that right there, you know, if I like Matt and you like Matt, you know, and, you know, you're going to like me.
- 26:35just, you know, odds are, you know, maybe I have a story about Matt, you know, and just all the, you know, I don't know.
- 26:42And so tell me, am I crazy?
- 26:44Am I just onto my, you know, new thing of the week?
- 26:47Or is that something that you can train someone to?
- 26:52It could be a hairdresser, know, and she's cutting your hair.
- 26:55Are you the most important person to her during that 30, 45, 60 minutes, or is she more worried about all the other activity and conversations next to you?
- 27:06You know, the cashier or receptionist checking you in, technical support.
- 27:11I don't know, like, tell me.
- 27:12Tell me if I'm just being John.
- 27:15Well, you are being John, but, but I do like it.
- 27:18I, the focus of attention.
- 27:20You talked about the person checking you out, even when they just pick up their head and look at you versus just as everything's coming by and never lifting their head up.
- 27:30But eye contact, think is, is big, but to be able to say, how's your day and actually hear that.
- 27:42we start the transaction, which should be called the interaction, before we start grabbing products and scanning them, or what's your order, what would you like, is just to look in
- 27:53their eyes and say, how's it going?
- 27:56And something that made me think about this is Joseph, it was at Joseph Beth.
- 28:03booksellers, they have gift shops in the hospitals.
- 28:06And so I was trying to think, man, what do you do if you work in a hospital?
- 28:10Because you probably don't want to ask how you doing Because you're visiting, right?
- 28:16You're either one of two people their customers are, staff, nurses, doctors, you know, all that.
- 28:23Or you're visiting a patient.
- 28:27So you want to avoid that.
- 28:28So their question is, who are you here to visit?
- 28:32and then they go a little deeper without maybe going down, you know, thing, you know, which is cool.
- 28:40But just like you said, take a pause, stop in your hands and just look at someone say, hey, how's it going?
- 28:47Or who are you visiting today?
- 28:49Or whatever that is can make me feel like, you know, I am the most important person in this moment to you.
- 28:58I don't know.
- 29:00Yep.
- 29:00you don't know, you have a quick interaction, you're starting to laugh, yeah, just a simple...
- 29:08Yeah, I love the compliment thing because I don't know what percentage of the world, and I know it's changed since the work from home, but maybe I'm more vain than most people.
- 29:20But night before I'm going somewhere, work, wherever, I pick out my outfit, Shoes, socks, shirt, if there's a sport jacket or a vest or whatever.
- 29:32And then I kind of, know, and then I'll,
- 29:33You know, if Claudia's around, ask her if this works and she'll maybe give me the blood.
- 29:41I'm in trouble, right?
- 29:42So I don't know if this is different for you, but then I wake up and go to put on that outfit and I'll start second guessing.
- 29:50Do you do that ever?
- 29:52after you've laid it out the night before?
- 29:54Yeah, I'll question my judgment.
- 29:58Probably 20 % time I change my mind.
- 30:00Whatever.
- 30:03So, but we...
- 30:04about does it fit?
- 30:05Does it?
- 30:07yeah.
- 30:10But my point is I think a lot more people do that than not.
- 30:17So how cool is it to get rewarded for the decisions you stressed over?
- 30:24Like, I love that scarf with that top you have on, right?
- 30:29You thought about, you took time.
- 30:33may be stressed over that combination and how that would show up on a podcast, a Zoom or whatever meetings you might have today.
- 30:41So just take a second and authentically saying, know, I love your glasses, I love that outfit, right?
- 30:49Whatever it may be.
- 30:50It doesn't make you unauthentic or not genuine, it forces you to pause.
- 30:55and see things that you should be seeing.
- 30:58Was it Neen James who told you?
- 31:00Yes.
- 31:02Yeah, yeah, she wrote the book Attention.
- 31:06And I love that, listen with your eyes.
- 31:08Like be so focused on the person.
- 31:10The way I take it is that someone should be able to blow a firecracker off and you don't even realize it.
- 31:18Because you are the most important person to me right now.
- 31:21Doesn't mean you're more important than my family, doesn't mean you're more important than my employee, but right now in this moment, you're the most important person to me.
- 31:29That's hard, it's a lot harder, but if you train to it, if you show examples, if you show examples of when it's not, I think that's, you know, that's the type of training we need
- 31:40to be focused on.
- 31:41And I believe it's measurable.
- 31:45this was souped to nuts this week's episode.
- 31:47Thank you, John.
- 31:48Let's call that a wrap.
- 31:49Thanks, Denise.
- 31:50See you next time.
- 31:52See you next time.