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The World of Customer Service Third Edition

Pattie Gibson, Ed.D. Assistant Professor

Northern Arizona University Flagstaff, Arizona

Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

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The World of Customer Service, Third Edition

Pattie Gibson, Ed.D.

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TABLE OF CONTENTS

PART 1 The Customer Service Environment 2

CHAPTER 1

What Is Customer Service? 4 Customer Service Today 6 / Identifying the Customer 9 / Needs of Customers 10 / The Social Customer 11 / Wrapping Up 15 / Summary 16

CHAPTER 2

The Global Customer 21 Impact of Globalization 22 / Cultural Diversity and the Global Customer 24 / Customer Personalities 28 / Generational Differences 30 / The Disabled Customer 33 / Wrapping Up 36 / Summary 36

CHAPTER 3

Exceptional Customer Service 41 Customer Perceptions 42 / Earning Customer Loyalty 47 / Who is Right for Customer Service? 49 / Wrapping Up 52 / Summary 52

CHAPTER 4

Customer Service Strategy 56 Customer Service Intelligence 57 / Customer Relationship Management 61 / Service Infrastructure 63 / Marketing and Sales 65 / Wrapping Up 66 / Summary 67

PART 2 Essential Customer Service Skills 70

CHAPTER 5

Critical Workplace Skills 72 Time Management 73 / Organizational Skills 77 / Stress Management 78 / Anger Management 82 / Teamwork 83 / Wrapping Up 85 / Summary 85

CHAPTER 6

Problem Solving 88 Understanding Complaints 89 / Problem Solving 94 / Negotiating Skills 97 / An Effective Win-Back Plan 99 / Wrapping Up 101 / Summary 102

CHAPTER 7

Extreme Customers and Customer Retention 106 Extreme Customers 107 / Proactive Problem Solving 112 / Measuring Customer Satisfaction 113 / Customer Retention 118 / Wrapping Up 119 / Summary 120

CHAPTER 8

Managing Customer Service 123 Setting Service Standards 124 / Understanding the CSR Position 126 / Retaining Service Professionals 128 / Managing a Customer Service Department 130 / Wrapping Up 133 / Summary 133

iii Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

PART 3 Communication Skills 136

CHAPTER 9

Communication Essentials 138 The Basics of Communication 139 / Communication Styles 141 / Communicating with Customers 143 / Fundamentals of Business Writing 148 / Wrapping Up 151 / Summary 151

CHAPTER 10

Customer-Focused Listening 155 Levels of Listening 156 / Ineffective Listening 158 / Effective Listening 158 / Roadblocks to Listening 163 / Wrapping Up 164 / Summary 165

CHAPTER 11

Nonverbal Communication, Dress, and Manners 169 Customer-Friendly Body Language 170 / Dressing to Make a Good Impression 173 / Practicing Etiquette and Manners 176 / Wrapping Up 180 / Summary 180

CHAPTER 12

Telephone and Digital Communication 184 Answering the Phone 185 / Voice Technologies 188 / Evaluating Your Voice Delivery 191 / Telemarketing Activities 192 / Web-Driven Service Technologies 192 / Wrapping Up … Future Challenges for Customer Service 194 / Summary 195

Glossary / 199

Index / 205

iv TABLE OF CONTENTS

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PREFACE

T he third edition of The World of Customer Service is written in a

practical, commonsense manner and reflects current customer

service accepted wisdom, concepts, and hints. This multidisciplinary

textbook is designed to teach exemplary, yet “down-to earth,” applied

customer service thinking in business organizations—public or private,

domestic or international.

The customer service function continues to be a critical element in

the success and future of all businesses competing in today’s economy.

With global markets more common than ever, it is a major challenge

for organizations to attract and retain customers because more companies

are competing for the same customer. The secret in getting and keeping

loyal customers today comes in creating new business and using

a customer-centric approach with technology tools to communicate on

a global scale.

Successful organizations are emerging with a common focus—

customers. Further, these thriving organizations live the mantra that

each member in an organization is involved in delivering exceptional cus-

tomer service.

v Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

AUDIENCE FOR TEXTBOOK The World of Customer Service is designed to be used at any level of higher education or for corporate training programs in business and industry. For example, students may be enrolled in a customer service course offered in community colleges or career schools. This text is also ideal for a concentrated study of customer service in career readiness cur- riculums at the community and career college levels.

AT A GLANCE

Part 1: The Customer Service Environment In the opening part, Chapters 1–4, the reader is introduced to the basic concepts of customer service. Coverage begins with describing what customer-centric service is and how a customer is defined. Discussion pro- ceeds to identifying the global customers served today and what exceptional customer service is. Finally, customer service strategy and its importance in developing a strong service culture are introduced.

Part 2: Essential Customer Service Skills Chapters 5–8 focus on the essential personal skills that a customer service representative must demonstrate on the job. This part first addresses time, stress, and anger management, as well as the benefits of teamwork and orga- nizational skills. Next, problem solving, identifying dissatisfied customers, handling their complaints, and then winning them back is covered. Finally, the importance of managing, training, and rewarding service professionals is examined.

Part 3: Communication Skills Communication skills needed for effective customer service are covered in Chapters 9–12. These skills begin with understanding the essentials of communicating and continue with the importance of customer-focused listening skills, nonverbal communication, dress, and manners. With the emergence of many Web-driven technologies, effective digital com- munication is also discussed.

NEW TO THIS EDITION To update and further strengthen coverage of the current research and practice in the customer service field, topics throughout the text are cov- ered in more depth, with an emphasis on the global customer, the impact social media has on customer decision making, and the importance of new digital technologies as a means of gathering and supporting a cus- tomer base.

vi PREFACE

New Chapters Customer Service Strategy, Chapter 4, focuses on gathering customer intelligence and analyzing marketing and sales information in order to maximize revenue and customer satisfaction.

Critical Workplace Skills, Chapter 5, is a fresh look at time, stress, and anger management, teamwork, and organizational skills.

Problem Solving, Chapter 6, addresses the skills and strategies needed for recognizing, negotiating, and resolving customer complaints.

New Features Business in Action launches each chapter with a close look at a real-world company and how it handles customer service issues.

Make it a Habit provides information about the qualities and skills that will help students polish their customer service behaviors and attitudes.

Focus on Best Practices offers short case studies of how various busi- nesses address the topic in each chapter.

What Do You Think? asks students to reflect on the concepts they have learned and how they relate to their own experiences and philoso- phies in a short journal entry.

New Online Supplement CourseMate—Cengage Learning’s CourseMate brings course concepts to life with interactive learning, study, and exam preparation tools that support the printed textbook. Students will have access to an interactive eBook, videos, flashcards, quizzing, and other tools to guide and encour- age learning. Watch student comprehension soar as they work with the textbook and the textbook-specific website. Experience it today.

ADDITIONAL FEATURES Many features remain from the prior edition because they have proven to be well received and hold the reader’s attention:

• Quotations introduce each chapter with thoughts from famous people or historians that prompt and focus interest.

• Customer Service Tips provide practical suggestions from customer ser- vice providers.

• Ethics/Choices demonstrates ethical dilemmas and gets students think- ing about how they would handle difficult situations.

• Remember This guides students in reviewing key points in each chapter while serving as a reference tool for addressing on-the-job problems.

• Industry Profiles introduce each of the three parts and profile a real person in the customer service profession. These profiles share personal

PREFACE vii

information about attitude, education, and work experience as applied to essential elements of customer service today.

END OF CHAPTER ACTIVITIES

• Critical Thinking questions offer challenging ways for students to apply their learning skills.

• What Do You Think NOW? requires students to revisit their journal entries and further relate concepts to their philosophy and work experiences.

• Online Research Activities are designed to expand on customer service topics. Guided instructions are given to assist students in gathering pertinent data for completing these projects.

• Communication Skills at Work presents opportunities for students to apply their communication skills to resolve customer service problems effectively.

• Decision Making at Work provides students with the opportunity to apply their decision-making skills as they think through and effectively address customer service concerns.

• A Case Study reinforces chapter content using real life scenarios to address important issues in the workplace that include human relations and worker attitude problems.

AVAILABLE SUPPLEMENTS

• Instructor’s Resource CD includes the Instructor’s Manual with chapter outlines, teaching suggestions, and solutions to book activities and projects. The IRCD also includes two variations of the course syllabus, PowerPoint® presentations for each chapter, and ExamView® test banks with solutions for each chapter.

• Product Website provides flashcards, crossword puzzles, links to additional Internet resources, and more.

www.cengage.com/marketing/gibson

viii PREFACE

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ACKNOWLEDGMENTS

D uring the development of this textbook, it underwent several prac-tical and constructive revisions. I would like to recognize and thank all those who helped make this a stronger and more cohesive book. Special thanks to the outstanding reviewers for this edition:

Russell Brown Navarro College Corsicana, TX

Edward M. Dell Cuyahoga Community College Cleveland, OH

Kimberly Goudy Central Ohio Technical College Newark, OH

DeAnn Hurtado Sinclair Community College Dayton, OH

Amanda McClellan Antonelli College Hattiesburg, MS

D. Ross Thomson, Ph. D. Careers by Choice Clifton Park, NY

R. L. Whipple Carrington College Boise, ID

ABOUT THE AUTHOR For over 35 years, Dr. Pattie Gibson (Odgers) has taught a variety of courses in computer applications and business systems to high school, community college, and university students in Arizona and overseas in West Berlin and Stuttgart, Germany. She received her bachelor’s and master’s degrees from Arizona State University and her doctorate from Northern Arizona Univer- sity. She is currently an associate professor at Northern Arizona University where she works with graduate students and teaches graduate-level educa- tional leadership and technology classes.

ix Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

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PART 1

The Customer Service Environment

Chapter 1

What Is Customer Service?

Chapter 2

The Global Customer

Chapter 3

Exceptional Customer Service

Chapter 4

Customer Service Strategy

Siobhan Love, Massage Envy, Flagstaff, Arizona

Recognized recently by Massage Envy as managing one of the top-ten customer service locations in the United States, co-owner Siobhan Love is an example of a contemporary customer service provider who combines technology and the personal approach when serving clients.

2 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

Delivering a welcoming customer service environ- ment is essential to our success. A high percentage of the population has had no, or minimal, exposure to massage, and may be intimidated by such a per- sonal experience. From the time we advertise, to booking an appointment, to confirming, to standing and greeting customers, to providing services, and finally to thanking them when they leave, the entire experience should be welcoming. By doing so, we help customers change their view of massage as something that is simply a luxury to a view that recognizes it as a necessity for health maintenance.

n1 What are the biggest challenges in customer service today?

The biggest challenge in customer service is having your employees subscribe with enthusiasm to your service approach. When this goal is achieved, busi- ness soars. So, knowing how to encourage service providers, build morale, and maintain excitement takes ongoing and creative efforts. We are highly selective of the people who want to join our environ- ment. We look for applicants who are personable, genuine, wholesome, open, and honest with a desire to listen and learn.

n2 What advice would you offer customer service representatives?

With the vast use of technology at our fingertips, it’s incredibly powerful that we can get our name out there, advertise, promote, and entice customers globally. Still, one-on-one personal interactions can- not be replaced. Communications with people make the difference because connections are cultivated, not automated.

People want to be treated well. They don’t just want to be acknowledged—they need to be appre- ciated. They are paying for a service and deserve per- sonal recognition. So, our front-desk service reps stand up and greet customers, remember their names, thank them, ask them how their day is; and as they get to know them, inquire how their family is doing, where they’re going on vacation, and so forth. You can make someone’s day better just by showing sincere interest in them and you can also make huge steps toward developing a loyal customer as well.

n3 To what extent do you use social media and online technologies?

We use social media, such as Facebook and Twitter, because of its ability to reach a vast audience. It provides a free and easily accessible avenue to dis- perse information. We use social media to promote specials, announce events, and to touch base with subscribers on a regular basis. Though its reach is somewhat interactive and superficial, it does create a reminder of our business and a memory prompt of the feeling they had the last time they experienced our services.

Online forums, opinion sites, and blogs are trickier because they are independent reviews not endorsed by the company. Everyone knows that personal views are subjective and can vary greatly. These, however, create a challenge (and an oppor- tunity) to most businesses to ensure their quality of care is consistently high, because they never know when a negative online review will impact them harshly!

n4 What technologies do you use to collect customer feedback?

In our clinic, every client who chooses to have an email address on file automatically receives an elec- tronic comment card from us. This ensures that we receive feedback; and if necessary, we address any customer service concerns immediately one-on-one. This action prevents a negative review that may be posted in cyberspace and cannot be easily addressed. It’s worth restating that personalized interaction with customers is extremely important. In my opin- ion, it’s far easier for a disgruntled client to type vitriol into their computer about a poor experience, when they don’t have a distinctive relationship established with the business.

FIRST IMPRESSIONS

How does Siobhan Love combine technology and the personal approach in her business practice? Record your impressions in your journal.

3 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

CHAPTER 1 What Is Customer Service?

There is only one boss—the customer. And he can fire everybody in the company, from the chairman on down, simply by spending his money somewhere else.

SAM WALTON, FOUNDER OF WALMART

OBJECTIVES

1. Define customer service and list its goals and challenges.

2. Defend the organizational benefits of serving both the external and internal customer well.

3. List customer needs.

4. Describe the concept of social customers relative to their purchasing habits and impact on organizations.

4 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Zappos

The shoe and clothing website Zappos.com defines customer service in its own effec- tive way. It has built its brand and success by placing customer support as a core strategy. For example, customer service representatives are encouraged to take whatever time is needed, using chats and e-mail messaging for example, to help customers find the specific shoes they are looking for. To the firm’s owner, Tony Hsieh, employees don’t have to be passionate about shoes, but they do have to be passionate about service.

Zappos operates 24/7/365 from a 77,000 square-foot Las Vegas warehouse. It is unique among wholesale/retailers because it physically stocks vast numbers of

styles and brands rather than shipping orders from specific shoe manufacturers. In that way, Zappos can assure customers of immediate delivery with a product return policy good for up to a year from purchase. Coupled with a free shipping and return policy, Zappos cultivates loyal and repeat customers.

The company is being sold to Amazon for almost a billion dollars. This selling price is a clear indication that companies like Zappos, who emphasize excellence in service, can become valuable com- modities. Amazon and Zappos are two companies that use a customer service channel as an integral part of selling its products.

SOURCE: Barry Moltz, “The 10 Customer Service Trends for 2010,” Small Business Trends, December 15, 2009, http://smallbiztrends.com/2009/12/customer-service- trends-2010.html accessed November 2, 2010.

What is customer service? It is not about fancy products or intricate corporate culture; it is about dedicated, trustworthy employees and loyal, satisfied customers. Today, with more competitors vying for customers’ attention, exceptional customer ser- vice is essential to staying profitable in business. Businesses—large or small, industrial or retail, new or established—cannot survive without customers. To attract and retain them, companies listen to customers and strive hard to serve them well.

The approach in this book is to place you in the role of a service provider. In your career as a customer service representative chances are much of your on-the-job success may depend upon your ability, knowledge, and willingness to provide excep- tional customer service. According to the Bureau of Labor Statistics, there is a demand for service- related jobs. Between 2008 and 2018, employment in service occupations is projected to increase by

4.1 million, or 14 percent, which is the second-largest growth rate among the major occupational groups.

To help you imagine yourself in the role of a customer service provider, this book provides a vari- ety of interactive exercises to connect your under- standing of the role of customer service provider with your experience as a consumer. The develop- ment of quality customer service skills is emphasized in nearly every exercise and feature in this edition of The World of Customer Service. These activities are intentionally designed so that you can reflect upon issues and refine the service skills you need based largely on how you would like to be treated as a customer. For example, in responding to the What Do You Think? feature, you are asked to react to a

1Occupational Outlook Handbook, 2010-11 Edition, Bureau of Labor Statistics http://www.bls.gov/oco/oco2003.htm accessed November 12, 2010.

CHAPTER 1 What Is Customer Service? 5

chapter topic and prepare short and simple journal reflections drawn from your experiences. Respond to these exercises thoughtfully and use this interactive text as practical preparation for the interactive world of customer service.

CUSTOMER SERVICE TODAY Successful customer service involves distinct, critical components that, when merged together, produce a cohesive, efficient whole. These critical components include global considerations, the use of diverse forms of online communication media and technol- ogy, and the delivery of service that is sensitive to the needs of customers.

It is an inescapable fact of the contemporary business world that customers today demand excep- tional customer service. To that end, a successful company, like Zappos in our opening feature, recog- nizes that its competitors may easily be able to copy its products, its prices, and even its promotions; but competitors cannot copy an organization’s employ- ees and the distinctive and exceptional service each employee provides.

Customer Service Defined Even though every customer is unique, they all expect three things—a quality product, reliable timely ser- vice, and reasonable prices. In other words, customers want to receive what they feel they have paid for.

Customer service means different things to different people. In reality, however, the only perspec- tive that matters is the customer’s concept and per- ception of good service at the time it is needed and delivered. Some examples of good customer service are

• For a busy traveling executive, an international flight that leaves and arrives on time.

• For a harried executive administrative assistant, working with a dependable office supply store that keeps a good inventory of products on hand and delivers dependably.

• For a lonely retiree, conversation and kindness from a waitress when frequenting a neighborhood restaurant.

• For a college student entering a new school, competent and caring advice from an advisor on the best course of study.

Though there have been changes in the customer service industry, the definition of customer service hasn’t changed. Comprehensively stated, customer service is the process of satisfying the customer, rela- tive to a product or service, in whatever way the customer defines his or her need, and having that service delivered with efficiency, compassion, and sensitivity. That definition still stands even though social applications such as Facebook, Twitter, and blogs, engage customers in a new way.

There is a new worldview of customers at work that product or service organizations must either embrace or ignore at their peril. The customer- centric service worldview meansthat businessrevolves around the customer. What was once a company- controlled marketplace has become an uncontrolled, customer-directed, and transparent global environ- ment. Whether online or offline, savvy customers have unparalleled power to research and transact with companies when, where, and how they choose.

A customer-centric customer service represen- tative is respectful to the customer’s point of view and lets the customer know that his or her point of view is heard and valued. A customer-centric organization puts customers first, is service oriented, and thoughtfully listens to, develops, and satisfies a loyal, repeat customer base.

Developing a loyal customer base isn’t easy. Each time customers come in contact with an orga- nization, they get an impression of the service and the products. Everyone in an organization touches customers. The employee’s behavior and attitude affect how the customer feels about the company. As the customer service representative (CSR), or frontline service provider who deals with customers on a day-to-day basis, you come to signify all that your company stands for—both good and bad. To the customer, you are the voice and personality of your organization. Customers who experience exceptional customer service will come back for more. They will be less likely to shop around as a result of how well you listen to and treat them.

6 PART 1 The Customer Service Environment

Customer service is shaped by the needs and behaviors of both consumers and businesses. As the demands and characteristics of customers and businesses change, customer service continues its fascinating evolution. Thriving companies view a customer across all communication channels. For example, the following diverse forms of communica- tion have greatly influenced this evolution.

• 24/7/365 Service Delivery Because BlackBerry smartphones, iPhones, and other Smartphones now support a generation of consumers in this always-on mode, customers demand quicker re- sponse times. These new forms of communication allow customers to chat directly to service repre- sentatives, either through written or video chats, any hour of the day or night.

• Self-Serve Approach Customers are increasingly online. They want self-service options and demand responses in real time. In addition, social media, such as Twitter and Facebook, have grown to be an important new channel for interacting with custo- mers and engaging customer-to-customer interac- tions in innovative, helpful ways. In addition to checking a company’s website and its brochures, many customers research information on products and services from social networking sources, such as blogs and online user rating websites.

• Customized Service Technology allows compa- nies to personalize customer website visits. For example, they welcome customers back by name and suggest items based on previous purchases. With the immediacy and personalization of this fast-paced Internet world, great customer service is only what the customer says it is at a particular point in time. Service difficulty is amplified because this standard varies from person to person. More companies are customizing shopping or service experiences either online or in person because consumers want it.

• Growth of Communication Channels Customers can now compliment or complain in different ways—video, audio, blog, forum, etc. With the growth of these communication channels, poor customer service experiences can be shared with the world in seconds. Customers increasingly control the kind of service they would like to

receive by switching organizations, or communi- cating it through social channels. Tools like Face- book, Twitter, and YouTube allow customers to tell or show potentially thousands of people about pleasure or dissatisfaction with a company immediately following a service interaction. Every satisfied customer can be a booster for a company and every dissatisfied customer can be harmful.

Goals Organizations, like people, require direction and focus to achieve stated goals. The quality of service that a customer receives is greatly influenced by an organiza- tion’s goals—often identified by its mission statement and its vision of doing business. As simple as the state- ments “Good service is good business” or “Our custo- mers are #1” can be, either one may say all that is necessary to represent a company’s overall customer goal. Another example of a purpose statement is the Ritz-Carlton Hotel’s motto: “We are ladies and gen- tlemen serving ladies and gentlemen.” If employees at this hotel follow the motto to the letter, they pro- vide the finest personal service and facilities for their guests who will always enjoy a warm, relaxed, yet refined hotel experience. Skills, resources, competi- tors, partners, and customers all need to be consulted in assessing the starting point.

Planned goals ensure that daily business deci- sions, actions, and behaviors are customer-focused and designed to adapt as needed to changes in customers’ needs, desires, and expectations. For instance, Nordstrom, an upscale department store, consistently strives to deliver superior customer ser- vice. When helping customers, top management has empowered employees with a basic core value: use good judgment in all situations. Employees are told that, beyond this basic mandate, there will be no additional rules. Nordstrom’s staff proves the com- pany philosophy works, as it is usually ranked by Fortune magazine as one of the best companies for which to work.

2Mike Patel, “Customer Service—Nordstrom way” http://maheshmikepatel .wordpress.com/2010/01/21/customer-service-nordstrom-way/ accessed November 12, 2010.

CHAPTER 1 What Is Customer Service? 7

When companies ask employees to put them- selves in the place of their customers, they are asking that the employees’ efforts provide the same treat- ment and service that they would expect to receive if they were the customers. This is a variation of the Golden Rule, “Do unto others as you would have them do unto you.” For lack of a stated mission and values statement, many companies use this as a guiding principle when serving customers.

Customer service is not new, but there appears to be much confusion as to its importance and degree of practice in today’s marketplace. When organizations commit to a way of treating customers by writing down their mission statement, values, and goals, they create a corporate culture that is better understood and lived by all who work there. Figure 1.1 lists five com- mon customer service myths and corresponding facts that speak to an organization’s corporate values.

Challenges The Internet, mobile/wireless technologies, and social networks have created challenges for service providers because they have influenced an unparal- leled shift in the balance of power from companies to their customers. Diverse global consumers, armed with instant 24-hour access to information, are not only reshaping the products that a company offers

Figure 1.1 Common Customer Service Misconceptions

REMEMBER THIS

MYTH FACT

We are providing good service, but there is a perception outside the organization that we are not.

You may, in fact, already be providing good customer ser- vice, but you can improve it. Moreover, if the customer’s perception is that you are not providing quality service, then you need to determine why that perception exists.

You can’t improve service without more people and a larger budget.

It is far more costly to provide poor service than it is to provide high-quality service. Eliminating long, repetitive customer interactions and responding to customer com- plaints more efficiently saves time and money.

Why all the concern over customer service? If customers don’t like the service we provide, they can go elsewhere.

Before they go elsewhere, customers could circulate nega- tive commentary interpersonally or to the online commu- nity in a way that can be unfavorable for you and/or your organization.

I don’t need to worry about customer service because I don’t deal with the public.

You cannot provide high-quality service to your external customers until you provide high-quality service to your internal customers.

You can’t provide high-quality customer service when the requirements you must implement force you to tell customers “no.”

Quality customer service is not saying “yes” to every cus- tomer request. People can accept “no” if it is presented in the right way, but they cannot accept loss of dignity and loss of control.

CUSTOMER SERVICE TIP

One way to exceed customer expectations is

to promise good but deliver great! Always

strive to go above and beyond what is

expected.

8 PART 1 The Customer Service Environment

and the distribution channels it uses, but are also demanding a higher level and quality of service than ever before.

The power shift from companies to their custo- mers underlies the new customer economy where con- sumers can use social media applications to make complaints, praise companies, and open a dialogue around a particular service issue or product. Businesses must realize how the depth of their online community relationships with customers and the perceptions of those customers are linked directly to maintaining their reputations, credibility, and profit margins.

For example, in April 2010, Echo Research con- ducted an online survey of a random sample of 1,000 American Express consumers aged 18 and older. The survey explored specific attitudes and preferences toward customer service and revealed overall that nine in ten consumers believe that the level of cus- tomer service is important when deciding to do busi- ness with a company. Of those surveyed, the three most high-ranking factors consumers use to decide which companies they choose to do business with are: personal experience (98 percent), a company’s reputation or brand (92 percent), and recommenda- tions from friends and family (88 percent). Other survey findings said that nearly half (48 percent) of consumers always or often use an online posting or blog to get others’ opinions about a company’s cus- tomer service reputation and that 58 percent will spend more with companies they believe provide excel- lent service with the average spending 9 percent more.

Because online social communications and digital technologies have changed the way people seek out services and products and choose to shop, companies must carefully craft who they are and how they want to conduct business to maintain their reputations. As a result, many businesses will have to reshape their corporate cultures and customer service initiatives to take these new forms of communication channels, opinion sharing, and shopping into account.

IDENTIFYING THE CUSTOMER Richard Branson, British entrepreneur of Virgin brand, said, “If you look after your internal custo- mers you don’t have to worry about the external customers.”4 Branson means that while companies focus thousands of dollars on external customer service in hopes of wooing and retaining customers, little attention is being paid to the effect poor internal customer service has on overall customer satisfaction. Sooner or later the ripple effect reaches external customers. A company’s commitment to internal customer service must match its company’s external focus on customer care.

External Customers External customers, the persons or organizations that purchase and use a company’s products and services, are the customers whose needs we tradi- tionally think of serving. To be successful, an orga- nization must first identify its customers and learn as much about them as possible—including their age, gender, income level, lifestyle, and occupation. This collection of demographic information creates a customer profile, which explains who the custo- mers are and what they want in terms of service. Companies identify their main customers for a very good reason—so that they can develop and market the goods and services their customers want. External customers are critically important because they sustain a company’s existence.

WHAT DO YOU THINK 1.1

Which two myths and facts do you think are most significant for customer service reps to understand? Write a brief statement in your journal explaining why.

3 “Global Customer Service Barometer: Findings in the United States” A research report prepared for American Express by Echo, 2010, http://about.americanexpress .com/news/pr/2010/barometer.aspx accessed November 2, 2010.

4Stephanie Edwards, “12 Ways to Ensure Your Internal Customers Look after Your Internal Customers,” MYCUSTOMER.com, March 15, 2010, http://www .mycustomer.com/topic/customer-experience/12-ways-ensure-your-internal- customers-look-after-your-external-customers-0 accessed November 2, 2010.

CHAPTER 1 What Is Customer Service? 9

Internal Customers Internal customers, vendors, consultants, or depart- ments within a company that rely on colleagues to provide the support they need to serve their own internal and external customers are as impor- tant as external customers. These customers directly impact revenue and customer retention. For exam- ple, if you work at an organization’s computer help desk, your internal customer is anyone who requests your assistance in using a company-provided soft- ware application. Or if you work for a multinational corporation, you want to fully support your overseas colleagues with helpful troubleshooting service and other customer support issues. Typically, the way internal customers are treated translates into how a company is perceived by its external customers.

There is a clear link between job satisfaction and productivity. However, job satisfaction also depends on the service culture of an organization. This culture comprises the things that make a busi- ness distinctive and make the people who work there proud to do so. When employees of the “Top 10 Best Companies to Work For” were asked by Fortune magazine why they loved working for these companies, it was notable that they didn’t mention pay, reward schemes, or advancing to a more senior position. Instead, these employees spoke first of the sincerity of the relationships at work, that their work culture felt like an extension of home, and that their colleagues were supportive.

When colleagues support other departments with service, products, or information to help them do their jobs, everyone wins. Excellent internal cus- tomer service starts with good morale. Happy employees are productive, and customers take note. Corporate values that emphasize treating internal customers well translate to good external customer care. In companies where internal customers are often ignored or taken for granted, productivity is compromised and workflow will suffer.

A similar characteristic of external and internal customers is that they both have their own set of needs that they expect the company to meet. When service professionals take the approach—“How can I help you?” rather than “I’m here to do a job,” it changes the nature of customer service. Both internal and external customers are best served when service revolves around satisfying the needs of any customer, rather than simply going through the motions that most jobs require.

NEEDS OF CUSTOMERS One of the foundations of a flourishing business is an understanding of customer needs. However, under- standing customer needs is not as easy as it sounds. Customers often confuse needs with wants and expectations. By asking key questions and probing for additional information, you can help them define their needs. As emphasized by Ms. Love of Massage Envy in the Part Opener, one reason for her busi- ness’s success is because after each service, customers receive a comment card that allows concerns to be addressed immediately, in a one-on-one basis.

WHAT DO YOU THINK 1.2

How closely do you identify with the idea that an internal customer is important? Write a journal entry explaining your response.

What is the importance of understanding the customer profile?

D ig ita l V is io n/ G et ty

Im ag e s

5Ibid.

10 PART 1 The Customer Service Environment

The reasons consumers buy vary considerably, but they typically stem from basic needs that each of us has.

1. The need to feel welcome. We all want to be acknowledged and welcomed warmly by someone who sincerely is glad to see us. A customer should never feel she or he is an intrusion on the service provider’s workday. Little things mean a lot. Acknowledgment, name recognition, and eye contact make a person feel more important and appreciated. That first impression a customer gets from a service professional is critical. Anyone doing business with a company and is made to feel like an outsider will probably not return for future products and services.

2. The need to be understood. Customers need to feel that the service person understands and appreciates their circumstances and feelings without criticism or judgment. Even though emotions, customs, and language barriers can complicate communication between the customer and the service person, every effort should be made to work with these challenges.

3. The need for fair treatment. Customers need the assurance and confidence that they will be taken care of promptly and fairly—whether online or face-to-face. Customers want their needs addressed as quickly as possible, and not deferred because of class distinction or other discriminatory judgment. The more people or time it takes to address a customer’s needs, the greater chance of customer dissatisfaction.

4. The need for control and options. Control, in this case, represents customers’ need to feel that they have an impact on the way the service experience turns out. Customers have little patience for policies and procedures; they want to deal with a reasonable service provider who can interpret the policies for them. In addition, customers need to feel that other options are available for getting what they want accomplished. They become upset when they feel they have wasted their time and thus, accomplished nothing.

THE SOCIAL CUSTOMER Businesses must go where their customers are and right now, customers are turning to social media as a customer service channel. According to Forrester Research, three in four American adults in 2010 used social tools to connect with each other compared with just 56 percent in 2007.6

Websites such as Facebook, Twitter, Yelp, and YouTube give customers unparalleled power to influence the way others view products and ser- vices. When consumers use social media channels to make complaints, praise companies, and open a dialogue around a particular issue, it can be a good thing. It puts the power into the hands of the

How would you prioritize your needs in a customer-provider exchange?

6Dan Power, “Interface: Confessions of an Active Social Networker,” March/April 2010, http://www.information-management.com/issues/20_2/confessions-of-an- active-social-networker-10017314-1.html accessed November 12, 2010.

Ph o to d is c/ G et ty

Im ag e s

WHAT DO YOU THINK 1.3

Think about your needs as a consumer. In a brief journal entry, rank the four needs listed above in the order of their importance to you. How might your feelings influence the service you provide to others?

CHAPTER 1 What Is Customer Service? 11

consumer and reminds companies that customers are talking to each other. What is increasingly challenging for companies, however, is to know how to handle their customer service relations through this new medium because currently there are no rules.

Today’s customer profile is unlike any the busi- ness world has seen before. Customers not only know what they want, but they can tell you when and how they want it. What customers do not want is to be “managed” because the social customer con- sumes information in a different way. They learn about new products and brands through social chan- nels. Figure 1.2 lists some additional characteristics of today’s social customer.

The Impact of Social Media As social media continue to grow, the ability to reach more consumers globally has also increased enabling a potentially massive community of parti- cipants to productively collaborate. When it comes to social media for business, there is no one-size- fits-all strategy. But to ensure results, a business must align this movement with its overall business objectives.

Below is an overview of customer service social media “listening tools” in use today on the Internet:

• Facebook is a social networking website launched in February 2004 with more than 500 million active users as of July 2010. Users can add people as friends, send messages, and update their personal profiles to notify friends about themselves. Facebook allows anyone who declares their age as 13 or older to become a member of the website.

• Twitter is a popular instant messaging system that lets a person send brief text messages up to 140 characters in length to a list of followers. Launched in 2006, it was initially designed as a social network to keep friends and colleagues informed throughout the day; however, now it is widely used for commercial and political purposes to keep customers, constituents, fans, and others up-to-date. Twitter messages, or tweets, can be made public and sent to anyone requesting the feed, or they can be sent only to approved followers.

• A blog is a type or part of a website and is usually maintained by an individual with regular entries of commentary. Most blogs are interac- tive, allowing visitors to leave comments and messages to each other. Many blogs provide commentary or news on a particular subject; others function as personal online diaries. A typical blog combines text, images, and links to other blogs, Web pages, and other media related to its topic.

• An Internet forum, or message board, is an online discussion site that can contain a wide range of content, including news, gossip, and research. It reflects the expansion of media production through new technologies that are accessible and affordable to the general public.

• Social data consists of information about an individual’s relationship to other people, groups, events, things, and concepts. This human- generated data is usually expressed in the form of very simple facts. Individually, these facts have

Figure 1.2

REMEMBER THIS

Characteristics of the Social Customer

• Turns to friends and online networks for advice and recommendations

• Is open and vocal about online and face-to-face buying experiences

• Is savvy, confident, and fast when using the Internet to research products to purchase

• Expects organizations to have an online presence, and wants to make contact with brands through online channels such as email, chats, or an easy- to-complete contact form

• Wants confirmation that a complaint or comment was heard, acknowledged, and taken into consideration

• Connects good and bad customer service directly to future purchasing decisions

12 PART 1 The Customer Service Environment

little value but collectively, and in sufficient quantity, they can represent a richer view of cus- tomers and their purchasing environment. The value of social data is that it can be harvested from retail systems and user-generated social media activities into meaningful customer processed data using specialized software tools.

• YouTube is a very popular video-sharing site that lets anyone store short videos for private or public viewing. Founded in 2005, it was acquired by Google in 2006 for $1.65 billion. Within a couple years, more than 25 quadrillion bytes of videos were being streamed from the site each month. Videos are streamed to users on the YouTube site or via blogs and other websites.

• MeasuredUp is an example of a leading customer service resolution website where millions of connected, loyal, and involved consumers share service experiences with each other and directly with companies. The power of the collected consumer voice combines with the reach of the Internet to answer questions and encourage com- panies to listen to and resolve a variety of customer problems. MeasuredUp is not a place for ranting, profanity, or slander. It is a place for caring and thoughtful consumers to post reviews about great and inferior customer service.

• Angie’s List is a review service of companies designed to take the angst out of hiring contractors. The service has grown to more than one million members in some 200 cities and serves up reviews in 500 categories, primarily home and healthcare services. No anonymous reviews are accepted and the website provides live call center support and help if a project goes bad.

• Yelp was founded in 2004 to help people find great local businesses such as doctors, repair shops, and restaurants. More than 33 million people visited Yelp’s website in one month alone (June, 2010). Yelpers, as they are called, have written over 12 million local reviews, with more than 85 percent of them rating a business three stars or higher out of five. In addition to reviews, consu- mers can use Yelp to find events, special offers, or to talk with other Yelpers. Any business that

chooses to can set up a free account to post offers, photos, and message their customers.

In summary, the social customer may go to Twitter with a question, an Internet forum with a customer service query, Facebook with a compli- ment, or Yelp.com with a complaint.

Customers challenge companies to be aware of what is being said about them. Businesses need to learn a new way of listening to customers, and this can benefit everyone. A common thread linking all definitions of social media is a blending of technol- ogy and social interaction that creates a new level of value for both an organization and the customer it serves. Which social media process a business chooses to use depends on its ability to respond to consumers quickly and with the most accurate and relevant information.

A yet to-be-solved organizational problem is that the functions of a customer service department don’t quite fit with how social media works because most customer service departments are not available 24/7/365 as social media applications are. Some credible brands, like McDonalds and IBM, are uti- lizing social media to reach customers and to build or maintain their reputations.

An added advantage of social communication channels is being able to unite all of these contact interactions within one customer record using social customer relationship management (CRM). Even though social CRM is mostly about people and processes, companies need the right tools to achieve the ability for everyone to engage and be in align- ment. For example, there must be a process in place

CUSTOMER SERVICE TIP

Always strive to improve your overall

service by focusing on the small details

of each transaction. It will mean a lot

to the customer and make a difference in

total customer satisfaction.

CHAPTER 1 What Is Customer Service? 13

by which each message is automatically routed to the right person, classified by type (question, complaint, or compliment), and studied. In addition, a CSR must take action to satisfy the customer. Finally, the company must determine the extent of the influ- ence each concern will have on future customer exchanges.

Multichannel Customer Contact Points Customers expect to contact a business at their convenience using their preferred method. As a customer service representative, you will serve customers through various contact points. A contact point is the method that a customer uses to commu- nicate with a company. For example, customer con- tact occurs in person, on the phone, through written communications, and online. To the customer, it doesn’t matter where the interaction takes place as long as the frontline employee, the CSR, takes ownership of the problem.

A caring, friendly atmosphere and quick reso- lutions to problems create positive points of con- tact. Clean, neat surroundings—whether in an

office, a store, or a restaurant—say, “We pay atten- tion to details because we value them as important to our success.” Accurate invoices, prompt ship- ments, and returned phone calls help convey a pos- itive impression to customers. Easy-to-navigate websites with on-demand 24/7 access to customer service representatives via chats, phone contact, or responsive e-mail communications are others. For example, at Massage Envy, Ms. Love emphasizes the importance of delivering a welcoming customer service environment. For them, it begins with stand- ing and greeting customers at the time of service and concludes with a sincere thank you for their patronage.

Examples of negative points of contact include letting a business line ring five or six times before answering it, leaving the customer on hold for two or more minutes, and not replying promptly to an e-mail request for information. This translates to the customer as “We don’t value your time.” Long lines, out-of-stock items, and difficult-to-complete online order forms are other ways to leave an unfavorable impression about the company and its product or services.

Though the aforementioned positive and nega- tive points of contact seem obvious, when the obvious isn’t stated for the record, these important reminders have a tendency to be taken casually or not at all. Any successful company strives to make sure that all its points of contact with customers are positive ones. In the final analysis, all customers deserve exceptional service at each point of contact, regardless of the means they use to seek customer service.

Ethics / Choices What best reflects your views, in general, of deal-

ing with customer service issues: “I tell the whole

truth, all the time” or “I play by the rules, but

I bend them to my company’s advantage when-

ever I can.” Which view best reflects the prefer-

ence of social customers? Explain.

MAKE IT A HABIT

Basic Service Reminders

Don’t miss a chance to make a good

impression. Practice the following guidelines

to help make all customer service exchanges

positive.

• Conduct all service interactions with

consideration and friendliness.

• Demonstrate to the customer that you are

doing everything in your power to satisfy

him or her.

• Don’t assume you know what a customer

needs; take time to listen with interest and

ask the right questions.

14 PART 1 The Customer Service Environment

Tiered Service In years past, most thriving companies gave all their customers special attention, regardless of the size of their purchase. The thinking then was that a customer who makes a small purchase today might make a large purchase tomorrow. Many companies are asking themselves, “Why invest the same amount of customer service effort and expense in a one-time customer as we would in a customer who has a multimillion-dollar history with our business?” This approach to serving customers is referred to as a tiered service system, a concept that understands customer service to be fundamen- tally inter-related with a customer’s actual or poten- tial value as a consumer. Many companies use a database of customer transaction records, which have been stored and analyzed with the help of computers and customer relationship management software. The concept and use of CRM software will be discussed in depth in Chapter 4; however, the underlying principle of CRM is that every inter- action with a customer is part of a larger relationship. With CRM, the company should be able to capture, maximize, and use organized meaningful reports to help analyze customer loyalty and potentially increase sales.

What does tiered service look like? Whether we realize it or not, we are already being served by this concept each time we choose to fly. Airlines typically place their customers into three tiers of service: basic, or coach-class; enhanced, or business-class; and premium, or first-class. For the customer, the good news with a tiered service system is that there are a lot more choices on price, convenience, and comfort. Also, consumers have the option to upgrade seats and request additional legroom. On the other hand, companies can invisibly identify individuals who do not generate profits for them and may provide them with inferior service.

Although tiered service exists, customers should never feel that they are getting a certain level of service because they are buying a certain level of business. All customers should feel that they are receiving the same level of customer service when it comes to assistance with problems or the handling of complaints.

WRAPPING UP It is clear that Zappos and Edward Jones (see page 16) define customer service each in a unique way. Chapter 1 presented an all-inclusive response and argument to what customer service is. With intention, a successful organization like Zappos or Edward Jones bases its service standards with the following awareness in mind: its mission and business goals, who its internal and external customers are, and how the challenges of social media and global competition might impact its existence and future growth plans. With this information, the study of the Global Customer chapter that follows will seem all the more relevant.

WHAT DO YOU THINK 1.4

Do you use social media tools on a regular basis? If so, what tools do you use most frequently when sharing a positive or negative customer service interaction? Write a brief journal entry describing your experiences.

CHAPTER 1 What Is Customer Service? 15

SUMMARY

• Customer service is the process of satisfying a cus- tomer relative to a product or service, in whatever way the customer defines his or her need, and then delivering that service with efficiency, compassion, and sensitivity.

• The power shift from companies to their customers underlies the new customer economy, in which the depth of relationships with customers and loyalty to those customers are critical to an organization’s success.

• Both internal and external customers are important because they impact company revenue and customer retention.

• Customer needs include the need to feel welcome, to be understood, to be comfortable, and to be in control.

• The social customer consumes information in a different way and learns about new products and brands through social channels.

FOCUS ON. . . BEST PRACTICES

Edward Jones

Edward Jones boasts on its website that it is unlike any

other investment firm. Many would agree because it is

most unique in how it honors the needs of both its

internal and external customers.

This customer-oriented company has been named to

the top ten of Fortune magazine’s “100 Best Compa-

nies to Work For” list for eight years. That prestigious

recognition doesn’t just happen without client-focused

guiding principles and a high regard for its dedicated

associates. To illustrate the point, the investment ad-

viser boasted that, during the recent recession, none of

its 12,615 offices closed, nor were any of its employees

laid off. Salaries were frozen, but profit sharing

continued. Internal customers (employees) supported

the company because they felt a vested interest in its

success.

In a similar way, Edward Jones meets several basic

needs of its external customers. Being accessible and

approachable to its clients in offices on Main Street

instead of high-rise corporate structures, Edward Jones

offers unparalleled customer-friendly interactions. A

typical customer visit begins with a warm greeting by

the branch office administrator and continues with a

comfortable unhurried conversation with the financial

advisor. This consulting session is fully focused on the

client needs in a private, uninterrupted environment.

SOURCE: Regina Deluca-Imral, “Edward Jones Ranks No. 2 by FORTUNE Magazine in its 11th Year on Best Companies to Work For List Ranks in the Top 10 for Eight Years,” Edward Jones Press Release, January 21, 2010.

16 PART 1 The Customer Service Environment

KEY TERMS

Angie’s List blog contact point customer-centric service customer profile customer service customer service representative

(CSR)

external customers Facebook internal customers Internet forum MeasuredUp service culture social CRM social data

social media tiered service system tweets Twitter Yelp YouTube

CRITICAL THINKING

1. Why are organizations’ mission statements for customer service different from each other?

2. How can a company successfully serve its external and internal customers?

3. In what ways do customer needs relate to the reasons people buy from certain companies?

4. To what extent do you feel social media has affected the way businesses serve customers today?

5. If you were the president of a retail organiza- tion, would you be fearful or appreciative of

receiving complaints via social media applica- tions? Describe what actions you would take with customer-community feedback and comments.

6. Name two advantages to organizations of providing customers with multichannel contact points.

7. If you owned your own business, would you provide your customer base with a tiered service system? Defend your position.

WHAT DO YOU THINK NOW?

Project 1.1 Assume you are doing a report on best practices in serving internal customers. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some day-to-day practices that support internal customers? What situations and practices might diminish efforts to support colleagues in an organization? What skills are required to serve internal customers well? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 1.2 Students are Customers with Needs Too Assume you are writing a report on higher education (universities and community colleges) meeting the needs of students in your state. Identify what you feel are five of your needs as an educational consumer. Visit the websites of at least four institutions of higher education in your state and locate each school’s mission statement and vision. In addition, identify other available services those schools offer that might

CHAPTER 1 What Is Customer Service? 17

assist students in their decision-making process. Finally, compare and contrast your needs with each school’s identity.

As a result of your research and analysis, write a brief report indicating which school best meets your needs and why. Present your findings as part of a moderated panel discussion or other activity as directed by your instructor.

COMMUNICATION SKILLS AT WORK

Project 1.3 Social Media CSR Assume you have been asked to participate on a company task force with two co-workers to review the qualifications for a new CSR position focused on social media. Review the job description below with your team.

Job Title: Customer Service Social Media Representative

Job Description: Build rapport between the company and its customer base through exemplary customer service engagement.

Roles/Responsibilities:

• Monitor the company’s social media outlets/networks (Facebook, Twitter, etc.) for customer service related inquiries, complaints, concerns

• Answer all customer service inquiries on any social networks immediately and in the company’s tone (conversational, but informative)

• Organize customer service inquiries, concerns, and responses for future reference

• Track the types of questions that appear on social media

Qualifications: The ideal candidate should demonstrate the following:

• Exceptional communication skills (verbal and written)

• Attention to detail including a firm and patient demeanor

• Strong grasp of the structure, purpose, and tone of social networks

• Ability to think quickly, and formulate responses within a short turnaround time

• Ability to communicate on social networks in a professional way

• Ability to multi-task

• Strong organizational skills

• Proficient with Microsoft Office programs

• At least 3 years of high volume e-commerce customer service experience.

Working in small groups, discuss the content of this job posting, identify skills and competencies that are different from typical CSR positions, and write up your task force findings for a later discussion, as directed by your instructor. As an alter- native, follow your instructor’s directions to join a group and use the instructor- designated discussion board to complete the group project.

18 PART 1 The Customer Service Environment

DECISION MAKING AT WORK

Project 1.4 Tiered Service—a New Approach Richard Lee, President of Elgin Technology Products, recently returned from a Technology Conference in downtown Chicago. As a result of talking with leaders of other companies, he is now considering establishing a tiered service system, an idea he shared with the manager of the Customer Service Department.

Mr. Lee’s basic thought is to reward the customers who give Elgin Technology Products $100,000 worth of business with an end-of-year “thank you payment” that reflects a 5 percent discount on all yearly purchases. In addition, those customers would receive a commitment to next-day turnaround time on the resolution of all customer service problems. Moreover, the customers who purchase $500,000 or more annually would receive a 10 percent discount and a commitment to a four-hour resolution of customer service problems. Mr. Lee has requested that you and three other CSRs share your opinion and concerns regarding this decision.

1. Name some advantages of making the decision to use a tiered service approach at Elgin Technology Products.

2. Name some disadvantages of making the decision to use a tiered service approach at Elgin Technology Products.

3. Based upon your findings, would you endorse the decision to use a tiered service approach or not?

CHAPTER 1 What Is Customer Service? 19

CASE STUDY

Project 1.5 Customer Orders Are Perfect or They Don’t Pay

Thunderbird Container Products President, Beverly Whisenhunt, stormed out of her office and said, “Customers’ orders are perfect or they don’t pay. That’s a critical goal of ours that customers expect and we are going to deliver!” At first, those in earshot thought she must be kidding, but the seriousness with which she made that statement and her demeanor said differently. Give some thought to this pronouncement and be prepared to discuss the following three questions in a class discussion.

1. In your opinion, can a company afford to live by this statement? Why or why not?

2. Can you think of any situations in which an organization may have difficulty honoring such a customer pledge?

3. What are some potential benefits to the company by setting such a high standard?

20 PART 1 The Customer Service Environment

CHAPTER 2 The Global Customer

It is the service we are not obliged to give that people value the most.

JAMES C. PENNEY, FOUNDER, J. C. PENNEY STORES

OBJECTIVES

1. Discuss the impact of globalization on customer service.

2. Describe diversity in the workplace relative to serving the needs of diverse personalities in global customers.

3. Identify the four personalities of customers and distinguish among them.

4. Contrast customer service wants among the five generational groups.

5. Discuss ways to communicate effectively with disabled persons.

21 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Craigslist

Craigslist, a website for local classifieds and forums, is an example of a company being impacted by globalization. The company’s success, in part, has been due to its inclination to embrace this customer- to-customer sales phenomenon in the U.S. and around the world. Seventh worldwide in terms of English-language page views, the website has more than 50 million people who use this Internet site in the U.S. alone. Craigslist is also available in French, German, Italian, Portuguese, and Spanish with total users self-publishing about 50 million new classified ads each month.

Total website traffic is in excess of 20 billion page views per month.

“It’s important to create an atmo- sphere where customers want to help each other,” notes Craig Newmark, founder of Craigslist.org and a customer service rep himself. “It begins with treating customers the way you’d like to be treated, taking customer service seriously, and following through. The way we run our site encourages people to give each other a break because of that culture of trust.”

SOURCE: Craigslist Factsheet, http://www.craigslist.org/about/factsheet accessed October 13, 2010.

IMPACT OF GLOBALIZATION As simple as it may sound, best-in-class global ser- vice is all about delivering the right information in context to optimize business processes, applications, and activities that support service. In the opening feature, it is clear that Craigslist provides the right information for customer-to-customer self-service, whether on a domestic or global level. Of impor- tance is this: If content, processes, and people are not managed accurately, a business cannot deliver the customer service expected of it, and service be- comes a weakness rather than a strength. This, of course, is compounded by globalization.

As business has turned more to an integrated world market to meet its needs, the difficulties of communicating at a global level have become in- creasingly widespread. Any service communication channel requires transparency where customers can- not detect that the company is not directly handling, similar to face-to-face encounters.

Because rules differ among cultures about how to talk to and act toward others, service communication

problems arise. For example, customers and service reps often are unsure if it is alright to look someone in the eye while speaking, to express feelings openly, or to show emotions in e-mail and live chat com- munications with those we don’t know. When companies outsource the service function, correct cultural interactions are difficult to control and impossible to fully oversee. Customer service repre- sentatives must take care to avoid potential damage to a company’s reputation if the quality of service is deficient or uncaring.

To their credit, companies can and do offer multichannel service options to mitigate service risks. For example, a mix of locations such as do- mestic, outsourced offshore, nearshore, and home- shore virtual agents offer choices to the customer that fit each one’s unique needs in particular buying situations.

1 “The State of Service in Insurance,” IBM Enterprise Content Management, May 2010, 6, ftp://public.dhe.ibm.com/common/ssi/ecm/en/iuw03006usen/ IUW03006USEN.PDF accessed October 13, 2010.

22 PART 1 The Customer Service Environment

Outsourcing Outsourcing, also referred to as subcontracting, is the purchase of labor from a source outside of the company, rather than using the company’s own staff. Many feel, however, that the practice of outsourcing customer service to offshore call centers may be a good idea carried too far. Critics of the practice point to a growing body of evidence that suggests faulty economics and customer dissatisfaction are forcing a rethinking of the low-cost service approach.2 Cus- tomer resistance, combined with data security con- cerns and the unexpectedly high costs of managing offshore call centers, offset and dilute their prom- ised economic benefits.

India’s previous outsourcing success, for exam- ple, has diminished, and the country is now seen as a strong source for non voice-related customer care offerings. Back-office and non-voice services includ- ing keyboarded chats and e-mail messages are now delivered from this global location.3

Nearshoring Nearshoring is a form of outsourcing in which busi- ness processes are relocated to locations that are low- wage, but close in geographical distance and/or time zone to the client company. A viable nearshore op- tion could be located in North America or even a Latin American country like Argentina. As opposed to outsourcing, which refers to sourcing from low- cost countries from across the globe, nearshoring offers certain advantages such as similar time zones, cultural and linguistic affinity, geographical prox- imity, as well as economic, political, or historical linkages. Further, service reps from Latin American locations tend to have a high degree of customer empathy and often share a much needed bilingual capability. Bilingual online service representatives are a major driver for nearshoring in the United

States because of the need to support the expanding Spanish-speaking population.

Homeshoring “Virtual Home Agents”

Imagine a work commute that is just down the hallway, a few minutes from your coffeepot and the morning news. You plug in your headset to the phone, boot up your computer, and begin taking calls from customers. After 30 minutes of call time, you move on to a scheduled break to tend to a few chores around the house. You get another cup of coffee, finish a few small household tasks, and return to your desk to begin taking calls again.4

The previous description appeared in an article about virtual call centers and it is a fairly good re- presentation of a day in the life of a virtual call center agent. An increasing number of companies are mov- ing customer service jobs out of high overhead call centers and into what is possibly the lowest overhead place in the United States: workers’ homes. Compa- nies are hiring U.S. home-based call agents as an alternative to the more expensive in-house operators or less qualified offshore call centers. This work style trend is called homeshoring. When compared to offshoring or nearshoring, homeshoring is less likely to risk the accent fatigue, cultural disconnection, and customer rage.

While homeshoring provides a flexible and cost-efficient domestic delivery solution for many companies, generally the type of service support delivered from at-home virtual agents involves struc- tured programs such as customer care, order taking, and sales with well-defined processes and pre- established goals. A homeshoring agent is paid any- where from $7 to $30 an hour and typically prefers a more flexible family-friendly schedule.5

Companies benefit from using homeshoring agents. They save money and report a higher worker

2Norm Alster, “Customer Disservice?” CFO, October 26, 2005, http://www .cfo.com/article.cfm/4390954/c_2984406/?f=archives accessed October 13, 2010. 3Brendan B. Read, “Which Shore to Land On?” TMCnet, June 1, 2010, http:// www.tmcnet.com/call-center/features/articles/92323-which-shore-land.htm accessed October 13, 2010.

4Melissa Brewer, “Homeshoring Brings Legitimate Work-at-Home Jobs Into American Homes,” http://www.worldwideworkathome.com/articles/ homeshoring.html accessed March 22, 2011. 5Ibid.

CHAPTER 2 The Global Customer 23

retention rate as well as more satisfied customers when they contract with virtual agents who do not require work space or paid benefits. In addition, phone and broadband technology now make it sim- ple for companies to forward their calls to home- based workers and allow only need-to-have access rights to internal corporate database systems.

A drawback for home agents is they are often left out of the social safety net. Freelancers don’t have access to affordable insurance, are taxed more than traditional employees, and have limited access to benefits such as unemployment insurance, retirement plans, and unpaid wage claims. The up- side to this movement, however, is the rise of homeshoring employers. Homeshoring has paved the way to legitimate work from home that allows flexibility for a whole new workforce that includes work-at-home parents, elder caretakers, military spouses, and people with unique medical needs or disabilities. Forrester’s 2010 survey of contact center decision makers found that 35 percent of companies

had plans for expanding their virtual home agent program.

CULTURAL DIVERSITY AND THE GLOBAL CUSTOMER Culture is defined as a system of shared values, beliefs, and rituals that are learned and passed on through generations of families and social groups. Most individuals’ cultural make-up is simultaneously shaped by several dissimilar elements, such as eth- nicity, family, religion, and economic status. Culture affects a person’s perception of the world. More important, during customer interactions, it often de- fines what behavior is acceptable and unacceptable.

It is particularly essential to understand that the meaning of “good service” has different interpreta- tions in different cultures. Understanding colleagues from different cultures makes for a more cohesive and effective organization. Internal customers, like external customers, have their own unique needs and perspectives. Strategically aligning products and services to meet those needs will reap benefits. The more service providers know about their custo- mers and culture, the better customer relations willWHAT DO YOU THINK

2.1

Survey two or three family members and friends to see if they would like to work as a home-agent and why. From your discussions, record in your journal some pros and cons of working with customers out of your home.

Ethics / Choices Suppose you have a co-worker who tells culturally-

slurred jokes. They are meant to be funny, but, in

fact, are offensive to you and other co-workers.

Would you ignore the issue, talk about it with

the offender, or discuss it with your manager?

Explain.

D ig ita l V is io n/ G et ty

Im ag es

6Elizabeth Herrell, “Contact Center Manages Embrace Home Agents as Smart Move,” Forrester Blogs, http://blogs.forrester.com/elizabeth_herrell/10-05-24- contact_center_managers_embrace_home_agents_smart_move accessed October 13, 2010.

In what ways is a diverse global workforce good for customers, employees, and the organization?

24 PART 1 The Customer Service Environment

be and the more sensitive to others the workplace will become. Organizations and their employees who are aware of cultural differences definitely have a competitive advantage.

Because language barriers and cultural misun- derstandings can get in the way of effective com- munication and create complexities in customer situations, one could ask, What role does culture play in customer service? It is accepted that customer service representatives will interact with people of diverse cultural backgrounds every day; and while it is impossible to know about every element of a person’s culture, keep in mind that each internal or external customer should receive the same courteous, professional, and knowledgeable service.

Our cultural values provide a subconscious view that we use to function and interact with others. We begin to learn this view at a very early age, even before we acquire language skills. It guides our re- flexive behavior by providing us with guidelines on how to respond in a wide range of situations—how formal to be, how close to stand to someone, what physical contact is appropriate, how much eye con- tact to maintain, how to demonstrate respect in writing and face-to-face, and so forth.

A manifestation of one’s own culture is that it is often taken for granted and accepted as the norm, not examined and questioned. This means we are often unaware of the filter through which we are looking at others. This presents the possibility of service-related problems because people from diverse cultures encode and decode messages differently. These differences increase the chances of misunder- standing, especially nonverbal behaviors and concepts of time, space, and authority, which can be particu- larly troubling during customer service encounters.

Nonverbal Behaviors Cultural differences in nonverbal behaviors are a common source of misunderstandings and conflict in the workplace. For instance, many Westerners like to make eye contact, interpreting it as an indication of interest and honesty. Moreover, they also show friendliness through relaxed body language. When these behaviors do not happen, it can sometimes

be interpreted as shiftiness, coldness, or disinterest. However, in Eastern cultures the opposite is true. Eye contact shows that you see yourself as equal or are being belligerent. Additionally, constant eye con- tact with a superior is considered rude because it may be seen as defiance or a challenge to authority.

Being aware of these nonverbal nuances will help reduce negative impressions in intercultural communications with customers. Low-context cul- tures such as the United States and Canada tend to give relatively less emphasis to nonverbal commu- nication. People in these settings tend to place less importance on the unspoken word than on the literal meaning of words themselves. In high-context set- tings such as Colombia, however, understanding the nonverbal components of communication is rela- tively more important than receiving the intended meaning of the communication as a whole.

Concept of Time The perception of time is one of the central differ- ences between cultures. In the West, time tends to be seen as quantitative, measured in units that reflect the march of progress. It is logical, sequential, and present-focused. Conversely, in the East, time is treated as if it has unlimited continuity, an unravel- ing rather than a strict boundary. For example, busi- ness meetings will often run longer and later than Westerners are accustomed to when conducting negotiations in Eastern countries.

Concept of Space Another variable across cultures has to do with ways of relating to space. Crossing cultures, we encounter very different ideas about appropriate personal space. North Americans tend to prefer a large amount of space. Europeans, on the other hand, tend to stand closer to each other when talking, and are accustomed to smaller personal spaces. The difficulty with space preferences is not that they exist, but the connota- tions that are attached to them. For instance, if someone is accustomed to standing or sitting very close when they are talking with another, they may see the other’s attempt to create more space as evi- dence of coldness, condescension, or a lack of interest. In contrast, those who are accustomed to more

CHAPTER 2 The Global Customer 25

personal space may view attempts to get closer as pushy, disrespectful, or threatening. Neither is cor- rect, they are simply different.

Concept of Authority Authority is the power or right to give commands, enforce obedience, take action, or make final deci- sions. How a given society views authority can signif- icantly affect business-related communication because perceptions of authority figures can shape how a message will be received. For example, David Victor observes in his article “Cross-Cultural/ International Communication” that “in a relatively decentralized business environment—as exists in many highly centralized U.S. companies—people generally pay attention to a person based on how convincing an argument he or she puts forth, re- gardless of that person’s rank or status within the organization or society at large.”7 In contrast, highly centralized cultures such as China believe high rank equals high respect. Therefore, messages from high ranking officials are taken as truth, regardless of whether individuals agree or disagree.

Serving Diverse Customers Well As companies expand across the globe, challenges in customer service grow. In order to avoid cultural collisions with customers—when emotions, habits, or judgments taint service efforts—a customer ser- vice representative (CSR) needs to be aware of how communicating effectively with different cultures plays a role in the service encounter. One suggestion is for CSRs to identify their own cultural differences and be conscious of not stereotyping customers. Stereotyping happens when people categorize indi- viduals or groups according to an oversimplified standardized image or idea. Because stereotyping can lead to poor interactions that result in misunder- standings and prejudgments, it strongly hinders positive customer service encounters.

It is the responsibility of the CSR to understand each customer, regardless of any cultural differences

or accents. Accents can be hard to understand, but the responsibility for understanding what is being said rests with the CSR. When serving customers with a spoken accent, apologize to them when you do not understand what they are saying. Be sure to speak to them slowly and clearly. Repeat back, or paraphrase what they have said to you using other words for clarification. Or, if necessary, ask them to repeat what they have said. It is as important for a listener to attempt to understand a heavy accent as it is for the other person to make strides toward improving his or her English skills. Because some cultures consider feedback or criti- cism damaging to one’s reputation, CSRs might paraphrase often.

To communicate effectively with other people, we must know them as individuals—their unique background, personality, preferences, and style. Cus- tomer service interactions can be complex under the best of conditions. Issues of language, race, gender,

MAKE IT A HABIT

Cross-Cultural Communication Techniques

For more effective communication with do-

mestic and global customers and colleagues,

consider the following:

• Use a variety of communication methods

(written, visual, and verbal) to get your

message across.

• Err on the side of formality. Most cultural

groups value formality, and it will demon-

strate respect on your part.

• Make an effort to pronounce names and

titles correctly. If you are not sure about

proper pronunciation, ask.

• Respond to what is being said, not how it

is said.

• Never make a derogatory comment about

any culture, generation, or disability.7David A Victor, “Cross-Cultural/International Communication,” Encyclopedia of Business, 2 ed., http://www.referenceforbusiness.com/encyclopedia/Cos-Des/Cross- Cultural-International-Communication.html accessed October 13, 2010.

26 PART 1 The Customer Service Environment

religion, age, or disability can complicate communi- cation efforts. A significant point for understanding diversity is for CSRs to recognize that it is recipro- cal. That is to say, if someone is different from you, then you are different from them. Accepting the diversity of others is expressing your desire for others to accept your diversity.

To be more specific relative the major ethnic groups, consider,

• Hispanics Recent statistics show the Hispanic American population is growing at a rate of four times that of the general population. The 2010 Census revealed that over the past 10 years, the Hispanic population has increased from 35.3 million in 2000 to approximately 50.5 million in 2010.8 The purchasing power of Hispanics is expected to reach 1 trillion dollars by 2013.9

• Asians No one Asian subgroup makes up more than 25 percent of the total U.S. Asian popula- tion, and each has a more distinctly different set of cultural values, beliefs, and attitudes making Asian consumers more difficult to target as a separate shopper segment. As a group, however, Asians tend to have more education and higher incomes than the general population. In 2009, 14.5 million Americans—4.7 percent of the country’s population—claim Asian ancestry, which makes the group a powerful force in the U.S. consumer market. The Selig Center projects that the nation’s Asian buying power will climb from $509 billion in 2009 to $697 billion in 2014.

• African-Americans Although most African- Americans share a common cultural heritage, they are, by definition, native citizens and make up part of the broader culture of the United States. The Selig Center projects that the African- American buying power will rise from $910 billion in 2009 to $1.1 trillion in 2014.

Maximizing the Potential of Global Diversity Creating and sustaining a diverse workforce and a diverse customer base are competitive advantages. Diverse ideas come from diverse people, and diverse revenue streams come from diverse customers. It does not matter if the diversity is race, age, gender, sexual orientation, ethnicity, physical ability, religion, educa- tion, appearance, or any other characteristic.

Sensitive companies that provide a good cross- cultural employee training program find it to be very helpful. The content of this training program might include an explanation of the differences between cultures, as well as formal manners and etiquette to follow when serving international customers. How CSRs perceive the needs of customers may depend on their own cultural, personality, and generational perspectives.

The previous discussion about the shift in pur- chasing power in the United States provides further evidence for the importance of cultural diversity. As the diversity of the American population increases, the future of multicultural growth opportunities will be very exciting to businesses. Businesses that take the extra steps to effectively communicate with multicultural customers will have a clear competitive advantage over those who do not.

8US Census Bureau, http://2010.census.gov/news/releases/operations/cb11-cn125. html accessed April 8, 2011. 9Octavio Orozco, “The Hispanic Market,” Multicultural Marketing News, January 28, 2010. 10Jeffrey M. Humphreys, “The Multicultural Economy 2009,” Georgia Business and Economic Conditions, http://www.terry.uga.edu/selig/docs/GBEC0903q.pdf accessed October 13, 2010.

11Elisabete Miranda, “Multicultural Markets,” Multicultural Marketing News, January 28, 2010.

WHAT DO YOU THINK 2.2

Describe a customer service encounter you have experienced or observed where the service provider did an outstanding job in serving a culturally diverse customer. Conversely, describe a service encounter where the service provider was insensitive to the needs of the customer.

CHAPTER 2 The Global Customer 27

Ph o to d is c/ G e tt y Im ag es

CUSTOMER PERSONALITIES Even with the wonders and complexities of global communication, the CSR still has to contend with variables that are intrinsic to the human personality. Though the term personality can be defined in dif- ferent ways, relative to customer service, it relates to the pattern of collective character, behavioral, tem- peramental, emotional, and mental traits of a person. Personality is another dimension of the challenge of diversity issues when serving customers well. Today we know more about basic human personality types than ever before. We also know how each personal- ity type should be handled. When CSRs apply this knowledge on a regular basis, customers will feel they have been treated properly.

People often feel they do not belong to any one personality group, but each of us has one dominant personality style that defines our behavior. Although every customer is different, as Peter Bender notes in his article “How to Deal with Difficult Customers,” most can be categorized into one of four groups: analytical, driver, amiable, and expressive. Here are some basic characteristics of each personality style alongwith suggestionsfor howbestto serve eachone.

Analytical People with an analytical personality are known for being systematic, well organized, and deliberate. They value numbers and statistics, love details, and tend to be introverted. These individuals appreciate facts and information written and presented in a logical manner. They enjoy completing detailed tasks and take the time to analyze and compare their choices before making a purchasing decision. They believe the more thought they put into it, the hap- pier they will be with their decision. Others may see the analytical person as being cautious, structured, and someone who does things “by the book.”

Because this personality type often works with numbers and technology, they seek careers in engi- neering, computer science, finance, purchasing,

quality control, and accounting. When working with analytical customers, a CSR needs to provide facts and work with them in step-by-step fashion when delivering service.

The Driver Those with a driver personality want to save time, value results, love being in control, and doing things their way. They are extroverted and may show little or no emotion. They are called drivers because they are the people who make things happen—they take tremendous pride in getting tasks and objectives com- pleted. The driver thrives on a challenge and the inter- nal motivation to succeed. They are practical people who can do a lot in a relatively short amount of time. They usually talk fast and get right to the point. Others often view them as decisive, direct, and pragmatic.

These dominant risk-takers quite often end up at the top of an organization. Business owners and doctors often fall into this personality category. As

Analytical Driver

Amiable Expressive

Put yourself in the role of a customer at a restaurant or a department store. Which personality type do you prefer to serve you? Why?

12Peter Urs Bender, “How to Deal with Difficult Customers,” Professional Selling, http://www.peterursbender.com/articles/difficult.html accessed October 13, 2010.

28 PART 1 The Customer Service Environment

customers, drivers will tell you exactly what they want, and they do not want to hear a lot of “fluff.” When you tell them what you will do for them, they expect you to follow through and do it quickly.

The Amiable The amiable personality type wants to build rela- tionships, loves to give others support and attention, values suggestions from others, and fears disagree- ment. These people tend to display a lot of emotion. Amiables are dependable, loyal, and easygoing. They like things that are non-threatening and friendly. They dislike dealing with impersonal details and cold hard facts. Often described as warm and sensi- tive, they can be perceived as wishy-washy.

Amiable people gravitate toward professions such as nursing, teaching, and jobs that require teamwork. They like to work in groups, are very family-oriented, and resist sudden changes. Ami- ables want sincerity from a salesperson, and they appreciate a stable environment in which to buy. One of their worst fears is to buy from a disreputable operation and to be taken advantage of.

CSRs will find that this personality tends to be the most challenging because their cautious nature keeps them from getting too enthusiastic about any- thing.Theytendtobefactuallydrivensowhenworking

with these clients, give them a lot of information and do not pressure them to make a decision. Remember, when serving this personality type, be vigilant about keeping appointments, staying on schedule, and hon- oring commitments because the amiable personality likes everything to be predictable and planned. They want to know how things are going to be handled.

The Expressive The people who have expressive personalities value appreciation and a pat on the back, love social situa- tions, like to inspire others, and are extroverted, readily showing emotion to others. People of this type are usually identified as the life of the party and are very outgoing and enthusiastic with a high energy level. They can be great idea generators, but may not have the ability to see an idea through to completion.

Often thought of as a talker, overly dramatic, impulsive, and manipulative, expressive people are great communicators and are attracted to professions such as sales and marketing. They are comfortable with people and spend a fair amount of time “shoot- ing the breeze” in order to develop trust. They tend to be disorganized and dislike details. More often than not, they are slow to reach a buying decision.

Figure 2.1 recaps in table form characteristics of each personality type.

Figure 2.1 Personality Characteristics

REMEMBER THIS

ANALYTICAL DRIVER AMIABLE EXPRESSIVE

• controlled

• orderly

• precise

• disciplined

• deliberate

• cautious

• diplomatic

• systematic

• logical

• conventional

• action-orientated

• decisive

• problem solver

• assertive

• risk-taker

• forceful

• competitive

• independent

• determined

• results-orientated

• patient

• loyal

• sympathetic

• team player

• emotional

• considerate

• empathetic

• persevering

• trusting

• congenial

• verbal

• motivating

• enthusiastic

• convincing

• impulsive

• influential

• charming

• confident

• optimistic

• animated

SOURCE: Don Straits, “The Toughest Question in the Interview,” All Business, http://www.allbusiness.com/print/1605-1-22eeq.html accessed October 13, 2010.

CHAPTER 2 The Global Customer 29

Here are some tips for your own personality type when dealing with others who are different than you:

• Analyticals should speak and smile more. Show appreciation and personal interest. Relax. Share information and be more open to others.

• Drivers must slow down when dealing with other personality types. Take more time to listen. Try to hold back from dominating and learn when to relinquish some control. Show more patience and be more relaxed.

• Amiables need to be more assertive in customer situations. Talk more, listen less. Take control and take some risks.

• Expressives should listen more and slow down. They should write things down and set specific goals. Check details and remember to stay calm. Learn to focus.13

GENERATIONAL DIFFERENCES Though generational differences are not universal among people in the world, it is still helpful to have an awareness of a customer’s generation and to know that generation’s service preferences. These are two steps that lead to excellent customer service. Understanding and appreciating the factors that shape each generation can help with everything from recruiting new employees and motivating seasoned ones to serving a generationally diverse customer base around the world.

At no time in our history have so many and such different generations been asked to work together. The once linear nature of power at work, from older to younger, has been dislocated by changes in life styles and health, an increase in longevity, as well as the demands of technology and a digital knowledge base.

Whether a CSR or consumer is located in Asia, Europe, or America, each individual has been influ- enced by different formative events of his or her generation. As such, each brings a unique set of core values, skills, and expectations to the job or marketplace. These generational differences can re- sult in a synergistic explosion of productivity or the opposite—a downward spiral of miscommunication and misunderstanding.

Good service must be seen from a customer’s point of view. In service interactions, what you do, how you do it, how well it must be done, and proving you can do it again are all based on who the customer is. To that end, each generation tends to have its own definition of service. What might seem like excellent customer service to one person might be offensive to another, particularly if they are from different generations.

Understanding these generational differences is critical to CSRs who are willing to adapt their per- sonal styles to meet their customers’ needs. These understandings have the promise of creating har- mony, mutual respect, and joint effort where today there is often suspicion, mistrust, isolation, and employee turnover. There are presently over 309 million people living in the United States. They can be divided into the following five generations: the Mature Generation, Baby Boomers, Generation X, Generation Y, and Generation Z.

WHAT DO YOU THINK 2.3

Out of the four personality types just de- scribed write down the one you most identify with. Given your personality type, in what ways should you adapt your service skills to other personality types?

CUSTOMER SERVICE TIP

By examining customer service through

the perspectives of the different genera-

tions, you can apply specific customer

service techniques that will be successful

in each generation’s context.

13Ibid.

30 PART 1 The Customer Service Environment

Mature Generation The oldest population group is referred to as the Mature Generation. The Matures, born prior to 1946, comprise in excess of 60 million people within the United States. They grew up in the midst of war-time shortages and economic depression of the 1940s. To some, their work ethic and desire to do the right thing by others make them unique among generations that follow.

Matures grew up learning the value of a dollar. Even now, they remain conservative spenders, opt- ing to do without rather than spending impulsively. When they decide to purchase an item, they gener- ally save up the money to pay for it in cash.

Baby Boomers The Baby Boomer Generation, born between 1946 and 1964, came of age in the midst of tremen- dous economic expansion, learning to use all the convenience-oriented products that came on the market during their youth. Because of their genera- tion’s size, approximately 80 million strong, Boom- ers have a significant influence on every aspect of society. They currently make up the majority of the political, cultural, industrial, and academic lead- ership roles in the United States.

Boomers have always put in long hours because of how closely they associate their occupation with their identity. Even as they edge into retirement, predictions are that most of them will still want to work after they reach retirement age. Baby Boomers were the first credit-card generation and many used it extravagantly.

Generation X The U.S. Census Bureau estimates Generation X, those born between 1965 and 1981, to be some 50 million strong. They “work to live,” not “live to work,” as the previous generation does. Because many of them came from homes where both parents worked, they have been the most unsupervised generation and have developed into self-sufficient adults. They were

the first generation to expect diversity and to fully ac- cept women in positions of power in the workplace.

Generation Xers operate as people “who walk the talk.” They are verbal, globally aware, street smart, process driven, and technically adept. They want respect for their expertise, loyalty in relation- ships, and products that are modern.

Having watched their Baby Boomer parents put in long hours, Gen Xers have developed a different perspective about work. They do not necessarily equate productive work with long hours. Instead, they look for ways to work smarter, resulting in fewer hours but greater productivity.

This generation views training and develop- ment as a means for enhancing their versatility in the marketplace—as an investment in their future with any employer, not just the present organization. They believe that a job is a contract and the burden is on the organization to keep them engaged and growing. If that doesn’t happen, they will move on to another job that is more challenging for them.

Having come of age after the chaos of the six- ties and seventies, coupled with watching their par- ents spend extravagantly, Generation Xers have chosen the more conservative paths of saving and spending prudently. They value time off, which pro- vides the work-family balance they seek. Finally, they look for an enjoyable atmosphere where work is not taken too seriously.

Generation Y Generation Y (also called Millennials) presently account for nearly 85 million people in the United States. Born between 1981 and 1990, this genera- tion is one of the most unique groups. They have been highly nurtured by family and others and the Internet is their medium for communicating, enter- taining, and learning.

Millennials live in an era of technology and rapid change. As the Millennials have entered the

14U.S. Census Bureau, http://quickfacts.census.gov/qfd/states/00000.html accessed October 13, 2010.

15Emily McRobbie, “Generational Differences are Important.” (presentation, Coconino Community College Employee Development Day, Flagstaff, AZ, October 30, 2009.)

CHAPTER 2 The Global Customer 31

workforce, employers have discovered that “fun” and “stimulation” seem to be the operative words for re- warding this generation. Employers embracing these desires have been able to maintain lower turnover rates and achieve higher productivity.

As customers, Millennials are usually known as those that need instant gratification. Once they de- cide they want something, they usually make a pretty quick decision to get it—especially with technology purchases, because they are very techno-savvy.16

Generation Z The newest wave of customers is from Generation Z (also called the Silent generation, iGeneration, and Net generation). They were born after 1990 and into a time when technology was ruling the world. They are estimated to number more than 25 million strong and growing. The majority of their commu- nication takes place on the Internet, and they show

very low verbal communication skills. Most of their formative years are spent in cyberspace. They are used to instant action and satisfaction due to Inter- net technology and their extensive use of various social networking tools.

According to the California Teacher’s Associa- tion website, Generation Zers prefer to communi- cate online—often with friends they have never met. They cannot imagine life without cell phones or social networking websites. They prefer computers to books and want instant results. They are very col- laborative and creative. It is predicted that they will change the workplace dramatically in terms of work style and expectations. These are the children of Generation X parents, who came of age during the greatest technological leap in history.

Figure 2.2, above, recaps in table form charac- teristics of each generation.

Figure 2.2 Generational Differences

REMEMBER THIS

MATURE GENERATION A Mature is patriotic, loyal, fiscally conservative, and has faith in institutions. These customers tend to struggle with technology and typically need more attention than others.

BABY BOOMERS A Baby Boomer is idealistic, competitive, questions authority, desires to put their own stamp on things, and challenges institutions. These customers are independent with a “can-do” attitude. They like to dig in and overcome obstacles all on their own.

GENERATION X A Generation Xer is resourceful, self-reliant, distrusts institutions, and is highly adaptive to both change and technology. These customers have very strong opinions and are very in-tune with issues regarding relationships, community, and the environment.

GENERATION Y A Generation Yer is confident, ambitious, and very technologically sound. These customers can be impatient and need information quickly as evidenced by their use of technological instruments and their ability to multi-task with ease.

GENERATION Z A Generation Zer is more self-directed and processes information at lightning speed. As a result, they are ushering into society novel approaches to thinking, communicating, and learning.

SOURCE: Reprinted, in part, with permission of Emily McRobbie. ADDITIONAL SOURCE: “2010 Report: Generation Analysis,” Sparxoo, http://www.slideshare.net/sparxoo/2010-generation-trend-report accessed August 10, 2010.

16Ibid.

17Sherry Posnick-Goodwin, “Meet Generation Z,” California Teachers Association Magazine, http://www.cta.org/Professional-Development/Publications/Educator- Feb-10/Meet-Generation-Z.aspx accessed October 13, 2010.

32 PART 1 The Customer Service Environment

Serving Different Generations It is a major challenge to serve multiple generations all at the same time. Specifically, when serving the newest customers in Generations X, Y, and Z, some unique service reminders are in order. First, these generations tend to be unforgiving about poor cus- tomer service, expect 24/7/365 service, and are pre- pared to negotiate service relationships. When getting their needs met, they believe that if they do not ask, then they will not receive.

On the whole, the younger generations prefer to conduct business and make purchases online or by phone instead of face-to-face. Because they are in constant communication with others, using cell phones, PDAs, and other electronic Internet-based devices, they have high consumer awareness and use this understanding to obtain what they need or desire.

In contrast, this concept of “customer service” can take a different twist when working with the senior market that consists of the older Mature and Baby Boomer generations. These consumers are typically more loyal, but simultaneously, more demanding. They want less noise and fewer visual stimuli in their on-ground shopping experience. Many prefer not to shop online and are often not very computer savvy.

Customer service representatives should be sen- sitive to the special needs of some global seniors. Many retirees struggle with hearing and vision loss. Their mobility may be restricted, they may be in pain, and it may take them a bit longer to do things. More- over, they may be more resistant to asking for help outside of their family and friends.

In addition to physical challenges, countless re- tirees may suffer emotionally from a lack of signifi- cant social contact. While no one expects CSRs to wear the hat of therapist, it is important to under- stand the importance of spending a little extra time with senior customers. Service providers should not brush off seniors or cut off conversations with them. Keep in mind that a senior’s trip to the bank or to the store may provide his or her only social contact for the day. It takes so little to be kind to others and it can mean so much.

THE DISABLED CUSTOMER Dissimilar cultures react to disabilities in different ways. Regardless, it is important to ensure that the dignity of persons with disabilities is respected when services are provided. A disability is a condition caused by an accident, trauma, genetics, or disease, which may limit a person’s mobility, hearing, vision, speech, or mental function. Specifically, as noted by the Americans with Disabilities Act, an individual with a disability is a person who:

• has a physical or mental impairment that sub- stantially limits one or more major life activities;

• has a record of such an impairment; or

• is regarded as having such an impairment. 18

Discrimination against customers with disabil- ities is often unintentional. It may stem from a gen- eral lack of awareness that many of us have about disabilities. Consequently, it is important for com- panies to plan ahead to meet the requirements of their customers with disabilities. Wherever necessary

WHAT DO YOU THINK 2.4

Out of the five generations just discussed, which generation do you represent? Given your characteristics, record how you might adapt the delivery of your services to other generations.

CUSTOMER SERVICE TIP

In delivering great customer service, cre-

ate a customer experience in a way that

is unique to that person and isn’t the

same as the next customer’s.

18Wisconsin Department of Health Services, http://www.dhs.wisconsin.gov/ disabilities/physical/definition.htm accessed October 13, 2010.

CHAPTER 2 The Global Customer 33

and reasonable, service providers should adjust the way they offer their services, so that people who are physically challenged can use them in the best way. It is perfectly acceptable to consult with them about how they might best be served. Often, minor measures that are embedded in common sense work wonderfully. One example is to practice patience and to allow more time to deal with disabled customers.

Understanding Disabilities The Americans with Disabilities Act and the efforts of many disability organizations have made strides in improving accessibility in buildings, increasing access to education, opening employment opportu- nities, and developing realistic portrayals of persons with disabilities in television programming and mo- tion pictures. However, progress is still needed in communication and interaction with people who have disabilities. Non-disabled individuals are some- times concerned that they will say the wrong thing, so they say nothing at all—thus further segregating people with disabilities.

Etiquette considered appropriate when inter- acting with disabled people is based primarily on respect and courtesy without being condescending. Outlined below are several lists of tips to help service providers when communicating with persons who have disabilities.

Communicating with Physically Disabled Persons

• When introduced to a person with a disability, it is appropriate to offer to shake hands. People with limited hand use or who wear an artificial limb can usually shake hands. (Shaking hands with the left hand is an acceptable greeting.)

• If you offer assistance, wait until the offer is accepted. Then listen to or ask for instructions.

• Do not be afraid to ask questions when you are unsure of what to do.

Visually Impaired Persons

• Speak to the individual when you approach him or her.

• State clearly who you are; speak in a normal tone of voice.

• When conversing in a group, remember to identify yourself and the person to whom you are speaking.

• Never touch or distract a service dog without first asking the owner.

• Tell the individual when you are leaving.

• Do not attempt to lead the individual without first asking; allow the person to hold your arm and control her or his own movements.

• Be descriptive when giving directions; verbally give the person information that is visually obvious to individuals who can see. For example, if you are approaching steps, mention how many steps.

• If you are offering a seat, gently place the individual’s hand on the back or arm of the chair so that the person can locate the seat.

Hearing Impaired Persons

• Gain the person’s attention before starting a conversation (i.e., tap the person gently on the shoulder or arm).

• If the individual is lip reading, look directly at the individual, speak clearly (in a normal tone of voice), keeping your hands away from your face.

What suggestions can you give a co-worker to enhance a service encounter with disabled customers?

Im ag es

34 PART 1 The Customer Service Environment

Use short, simple sentences. Avoid smoking or chewing gum.

• If the individual uses a sign language inter- preter, speak directly to the person, not the interpreter.

• If you are telephoning, let the phone ring longer than usual. Speak clearly and be prepared to repeat the reason for the call and who you are.

Mobility Impaired Persons

• If possible, put yourself at the wheelchair user’s eye level.

• Do not lean on a wheelchair or any other assistive device the customer may be using.

• Do not assume the individual wants to be pushed—ask first.

• Offer assistance if the individual appears to be having difficulty opening a door.

• If you are telephoning, allow the phone to ring longer than usual to allow extra time for the person to reach the telephone.

Speech Impaired Persons

• If you do not understand something the individual says, do not pretend that you do. Ask the indi- vidual to repeat what he or she said and then repeat it back.

• Be patient. Take as much time as necessary.

• Try to ask questions which require only short answers or a nod of the head.

• Concentrate on what the individual is saying.

• Do not speak for the individual or attempt to finish her or his sentences.

• If you are having difficulty understanding the individual, consider writing as an alternative means of communicating, but first ask the indi- vidual if this is acceptable.

Learning Disabled Persons

• If you are in a public area with many distractions, consider moving to a quiet or private location.

• Be prepared to repeat what you say, verbally or in writing.

• Offer assistance completing forms or understand- ing written instructions and provide extra time for decision-making. Wait for the individual to accept the offer of assistance; do not “over-assist” or be patronizing.

• Be patient, flexible, and supportive. Take time to understand the individual and make sure the individual understands you.

Service Animals Many people with disabilities use service animals. Although the most familiar type of service animal is a guide dog used by the blind, service animals are assisting people who have other disabilities as well. Many disabling conditions are invisible. There- fore not every person who is accompanied by a service animal appears to be disabled. Currently, a service animal is not required to have any special certification or identification as such.

A service animal is not a pet. According to the Americans with Disabilities Act, a service animal is any animal that has been individually trained to provide assistance or perform tasks for the benefit of a person with a physical or mental disability, which substantially limits one or more major life functions.

Remember when serving a person who is ac- companied by a service dog that you should not touch the service animal, or the person it assists, without permission. In addition, do not make noises at the service animal as it may distract the animal from doing its job. Finally, avoid trying to feed the service animal, as it may disrupt his or her schedule.

WHAT DO YOU THINK 2.5

How comfortable are you with the tips to help service providers when communicating with persons who have disabilities? Respond in your journal.

CHAPTER 2 The Global Customer 35

WRAPPING UP Mindful of the cultural diversity of today’s market, Chapter 2 presented exceptional customer service ideas and concepts needed to serve several types of internal and external consumers through global media. At the same time, the chapter presented tips relevant for one-on-one service to customers with distinctive personalities, customers belonging to multi-generational groups, and disabled persons. As an example of best practices in customer service, Burger King is featured above. This global corpora- tion is widely recognized as one that serves diversity well. The information in this Global Customer chapter is a good foundation for understanding how best to deliver Exceptional Customer Service, the topic for Chapter 3.

SUMMARY

• Globalization of customer service through outsour- cing, nearshoring, and homeshoring are three trends

whose benefits most businesses cannot afford to ignore in today’s competitive global economy.

• Creating and sustaining a diverse workforce and a diverse customer base are competitive advantages to any business enterprise.

• Identifying personality types and then interacting with each individual as he or she would like to be treated is another aspect of diversity. The four types of personalities are analytical, driver, amiable, and expressive.

• Understanding generational differences allows ser- vice providers to adapt their personal styles to serve global customers with respect to the customer’s in- dividual set of core values and expectations. The five generations in today’s marketplace include the Matures, Baby Boomers and Generations X, Y and Z.

• Whenever necessary and reasonable, service providers should adjust the way they provide their services to customers with disabilities so that people who are challenged can still receive the best possible service.

FOCUS ON. . . BEST PRACTICES

Burger King Corporation

Burger King Corporation received the Profiles in Diversity

Journal’s 2010 Diversity Leader Award, which recognizes

companies for their commitment to diversity and inclu-

sion communication practices. BURGER KING® is dedi-

cated to recruiting, retaining, and developing its

employees from diverse backgrounds, as well as creating

a workplace where everyone can thrive both personally

and professionally. Its diversity and inclusion efforts are

built on a four-pillar strategy, encompassing its workforce,

community, restaurant guests, and operators/suppliers.

“As we globalize our processes and procedures to

ensure consistency, we still need to remain compliant

with local laws [and] rules around the globe,” said

Marlene Gordon, vice president and assistant general

counsel for Burger King Corporation (BKC). The com-

pany’s diversity initiatives and commitment to flexibility

are not new concepts; rather, these values are at the

core of the company’s culture and are reflected in its

inclusion mission statement: “We value, honor, and

respect differences in our employees, customers,

franchisees, and suppliers.”

Operating more than 12,000 restaurants worldwide,

approximately 90 percent of BURGER KING® restaurants

are owned and operated by independent franchisees,

many of them family-owned operations. In 2008, For-

tune magazine ranked BKC among America’s 1,000

largest corporations and the company was recently

recognized on the top 100 “Best Global Brands” list.

SOURCES: Michelle Miguelez, “At Burger King, Women and Minorities Can Have It Their Way,” http://www.diversity-executive.com/article.php?article=785 and Michelle Miguelez, “Burger King Corp. Receives 2010 Diversity Leader Award from Profiles in Diversity Journal,” http://www.businesswire.com/portal/site/home/ ?permalink/?ndmViewId=news_view&newsId=20100408006725&newsLang=en accessed July 31, 2010.

36 PART 1 The Customer Service Environment

KEY TERMS

amiable personality analytical personality authority Baby Boomer Generation culture disability driver personality

expressive personalities Generation X Generation Y Generation Z homeshoring Mature Generation nearshoring

outsourcing paraphrase personality service animal stereotyping

CRITICAL THINKING

1. In your opinion, what service factors contribute to the global success of Craigslist?

2. If you were the owner of a business that needed to provide customer agents through either outsourcing or homeshoring, which would you choose and why?

3. Why is diversity in the workplace deemed advantageous to businesses like BURGER KING®? In what ways can diversity be chal- lenging to an organization?

4. In your own words, give a simple description for each of the four personality types. Think of

people in your life who fit these personalities and the different ways you interact with them based on their personality type.

5. If you were a guest service agent at a fine hotel in your area, how would your personal service approach be different when serving each of the five generations of customers?

6. Describe an experience you have had or have heard about where a person with disabilities was served in an exemplary fashion.

WHAT DO YOU THINK NOW?

Project 2.1 Assume you are doing a report on spotlighting global companies that serve diverse customers. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some thoughtful service techniques and practices that serve customers best regardless of a CSRs personality or genera- tion? What situations and practices should be avoided when serving the global cus- tomer? What skills are needed to serve diverse customers around the world? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 2.2 Homeshoring Hiring Issues Many companies are still working through the best employment strategy to use when hiring dependable homeshoring virtual agents with good communication skills. Con- sider the following examples of two people who are interested in applying for this position.

CHAPTER 2 The Global Customer 37

• Rosie has over 25 years of customer service and administrative experience. She has a home office with high-speed Internet, a state-of-the-art phone service, and most everything else she needs to work from home. However, she has been fired from her last three jobs because of excessive absences due to caring for her elderly parents. She is fluent in Spanish.

• Matt has muscular dystrophy, which robs him of motor skills and his ability to hold down his last job as a technical data clerk. His physical challenges prevent him from working outside his home, but he has excellent communication skills. He sees working as a homeshore representative as an opportunity to be productive and earn money for his family by taking customer service, technical support, and inbound sales calls from his home.

Conduct research to learn what the best qualifications for an online service represen- tative are. Working with two other classmates, discuss the following questions and report your findings, as directed by your instructor. As an alternative, follow your instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

1. Given these two persons who show interest in a homeshoring position, evaluate each one’s strengths and weaknesses relative to a largely unsupervised position of working at home.

2. What skills and factors should be considered when evaluating a person for a homeshoring position?

3. To what extent do you think the concept of homeshoring will change the type of person who applies for these kinds of positions?

38 PART 1 The Customer Service Environment

COMMUNICATION SKILLS AT WORK

Project 2.3 Communication Styles among Generations Younger generations seem more detached in their communication styles. A great deal of the differences among communication styles can be attributed to the development of electronic technology. Brainstorm with one or two students and jot down your first ideas as you answer the following questions.

1. What impact are generational variations in communication styles having on the workplace?

2. How should employers deal with these differences effectively?

3. List your ideas that are critical to serving all generations of customers well.

DECISION MAKING AT WORK

Project 2.4 Free Personality Test for CSR Position Many employers look for specific personality types to fit certain roles. For a CSR position, for example, they might look for someone who is an Amiable and has these general tendencies: cautious and thoughtful; hesitant until they know people well, then affectionate and caring; very literal and aware of the physical world; uncompro- mising about personal standards; diligent and conscientious; organized and decisive.

What is your personality type? Go to www.cengage.com/marketing/gibson and find the Web links for Chapter 2. Visit any of the websites listed there for a free assessment of your personality type. After you have determined your personality type, do the following:

1. Assume you are a CSR interacting with each of the following personality types in a customer service situation: a) analytical, b) driver, c) amiable, and d) expressive. Use the information covered in the chapter to decide how you would react, based on your own personality type, to each of the personality types in a customer situation when the customer is returning a faulty product and wants cash back, not credit toward a future purchase. Your company’s policy gives you the authority to make that decision.

CHAPTER 2 The Global Customer 39

2. Prepare a one-page synopsis in which you summarize these four situations. Be prepared to discuss your ideas in class before submitting your report to the instructor, if directed.

Here is an example: You are the CSR and you are an Expressive. Your customer is an Analytical. As an Expressive, you really want to understand your customer as a per- son. You like to get enthusiastic about things. However, that’s the wrong approach with an Analytical. You will need to be as systematic, thorough, deliberate, and as precise as you can in your approach. Provide analysis and facts.

CASE STUDY

Project 2.5 A Complaint from a Disabled Customer At Juniper Computer Works, customers seldom complain because customer service is a top priority. However, recently the president of the company, Mr. Walter Marcel- lus, received a complaint in writing from a person who is disabled. Mr. Marcellus knows that he not only must respond, but perhaps change policies and procedures in the company regarding serving the disabled in more appropriate ways. Mr. Marcellus has asked for a focus group to be formed to give him advice on handling the com- plaint and what steps the company should take at this time.

In part, the complaint read,

Today I was at your store and wanted to purchase a new laptop computer. I never write companies when small incidents occur (concerning my disabil- ity and being confined to a wheelchair), but I feel that today’s behavior by your sales staff warrants this letter. I chose to inform you, the president, so that others in my circumstance at your place of business will not be so offended.

I felt very patronized when, after asking questions of Joanne, your service/ sales representative, she responded in almost a child-like voice—not once but three times! Then she proceeded to lean on my wheelchair as she was demonstrating the laptop to me. I felt it was more appropriate for her to use a chair; so when I suggested she do so, she said, “Oh, this will only take a minute or so more” and then continued to lean over me for another five minutes!

I am incensed enough to write this letter! By the way, after leaving your store I purchased my laptop from another store within the hour.

Analyze the case and determine:

a) if the customer has a legitimate complaint, b) what Mr. Marcellus’ response should be to the customer, and c) what recommendations as far as training, policies, and procedural changes you

might make to Mr. Marcellus.

Be ready to participate in a class discussion as directed by your instructor or to submit a case analysis, if requested.

40 PART 1 The Customer Service Environment

CHAPTER 3 Exceptional Customer Service

They may only call once in their life, but that is our chance to wow them.

TONY HSIEH, CEO, ZAPPOS

OBJECTIVES

1. Explain the relationship between customer expectations and customer perceptions.

2. Cite examples of customer first impressions.

3. Describe the three customer turnoffs.

4. Discuss the importance of customer loyalty.

5. Discuss the traits and skills CSRs should possess.

41 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Ritz-Carlton Hotels

The Ritz-Carlton does not “hire” employ- ees, as other organizations do; the hotel “selects” new members for the Ritz-Carlton team. Every day at the chain’s 73 properties in 24 countries, all 38,000 Ritz-Carlton em- ployees participate in a 15-minute “lineup” to talk about one of the “basics.” For ex- ample, Basic #14 states “Use words such as ’Good morning,’ ‘Certainly,’ ‘I’ll be happy to,’ and ‘My pleasure.’ Do not use words such as ‘OK,’ ‘Sure,’ ‘Hi/Hello,’ ‘Folks,’ and ‘No problem.’” The “lineup” ritual makes the hotel one of the few large companies that sets aside time for a daily discussion of its core service values.

Moreover, if you are employed by Ritz- Carlton, the hotelier will spend several thousands of dollars to train you. First, you will go through a two-day service intro- duction to the company values including the “credo” and the 20 Ritz-Carlton “basics.” Employees are then required to take a 21-day course that emphasizes spe- cific job responsibilities, for example, the 28 steps used by a bellman when greeting

a guest. To reinforce these teachings, the hotel requires each employee carry a plastic card imprinted with the credo and the basics, as well as the “employee promise” and the following three steps of service.

Step 1: A warm and sincere greeting. Use the guest’s name. Step 2: Anticipation and fulfillment of each guest’s needs. Step 3: Fond farewell. Give a warm good- bye and use the guest’s name.

With all this training, it is not surprising that employees are empowered by top management. Simon F. Cooper, president of the Ritz-Carlton Hotel Company, explains the commitment to empowerment in this way: “Every single Ritz-Carlton staff member is entrusted, without approval from their general manager, to spend up to $2,000 on a guest. And that’s not per year. It’s per incident. Though the option doesn’t get used much, it displays the deep trust we have in our staff’s judgment.”

SOURCES: Bill Lamphton, “My Pleasure”-The Ritz-Carlton Hotel PART II, Expert Magazine, November 4, 2010 http://www.expertmagazine.com/EMOnline/RC/part2 .htm; About Us: Gold Standards, http://corporate.ritzcarlton.com/en/about/goldstandards.htm; Rober Reiss, “How Ritz-Carlton Stays At the Top,” Forbes.com, November 4, 2010 http://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html; and Duff McDonald, “Roll Out the Blue Carpet How Ritz-Carlton Can Teach You To Serve Your Customers Better,” CNNMoney.com, May 1, 2004 http://money.cnn.com/magazines/business2/business2_archive/2004/ 05/01/368262/index.htm accessed November 11, 2010.

CUSTOMER PERCEPTIONS Exceptional customer service is obviously provided at Ritz-Carlton hotels, but remember: Exceptional service ultimately is in the eye of the beholder—the customer. How does the customer determine whether a company has provided exceptional customer service? It usually depends on two factors: the customer’s ex- pectations and perceptions. Customer expectations are the beliefs about service a customer has before a

transaction. Typically, a customer forms expectations from several sources: Internet social media (i.e., Face- book, YouTube, Twitter, blogs), print/TV/Internet advertising, previous experience, word of mouth, and the competition.

Customer perceptions in contrast, are the opi- nions created about service during and after a trans- action. Customers’ perceptions are based on how actual service measures up to their expectations. If

42 PART 1 The Customer Service Environment

customers get more than they expected, the end re- sult is exceptional customer service. However, if cus- tomers get anything less than what they expected, they perceive a performance gap; in that gap lies customer disappointment. Disappointed customers will leave an organization and take their business elsewhere, and poor service is responsible for much of the disappointment experienced by customers.

According to a study by RightNow Technolo- gies, 73 percent of customers leave because of poor customer service. Another recent study conducted by the Rockefeller Corporation is more specific. It reported that 68 percent of customers leave because they think the business does not care about them. In dealing with the question as to why businesses lose customers, a study conducted by the Small Business Administration (SBA) notes that “the perception that members of the sales staff don’t care ranks as the leading factor.” The study notes further that “nearly 70 percent of those polled in the SBA study indicated that the perception of a non-caring staffer led customers to leave and buy from other businesses.” By comparison, product dissatisfaction ranked second, with only 14 percent of those polled.

The Value of Exceptional Customer Service In practice, what does exceptional customer service really mean? Mahatma Gandhi once said in refer- ence to how to serve others, “A customer is the most important visitor on our premises and he is not de- pendent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of

it. He is not an outsider in our business. He is our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.”2

If you know what success is, and why it is im- portant, then you have a much higher chance of succeeding. Delivering an exceptional customer ser- vice experience is no different. Understanding what exceptional customer service is and what it is not is important to make clear for any business. Figure 3.1 on page 44 compares the types of service experiences customers have based on three aspects—product, service standards, and people.

Exceptional customer service is a mindset that defines each company’s culture. It is pervasive, visible to others, and everyone’s responsibility. Although this unity of purpose begins with hiring and training the right people, it also requires organizations to keep the basic company functions in superior shape so that CSRs do not get bogged down with cleaning up pro- blems, correcting errors, or being on the defensive with customers. Figure 3.2 on page 45 suggests ac- tions companies can take to improve performance by applying solid approaches to customer service.

Service is not easily managed, because it in- volves many variables. Everything from needs, wants, and personalities to technological issues make global management a considerable challenge. Therefore, when focusing on serving customers in the best way, remember the following truths:

• Customer service happens instantaneously, either right in front of the customer or at a distance through the use of technology.

• Service must be individualized for each customer. It cannot be standardized or routinely applied univer- sally, such as the use of scripts online or at call centers.

• Different customers have different needs; further, the needs of the same customers continuously change.

CUSTOMER SERVICE TIP

If a company doesn’t take care of its custo-

mers, some other company will.

1Ann Barr, “The Number One Reason Why Customers Leave,”ENX Magazine, http://www.enxmag.com/2010%20months/AD%2021001/article_abarr_The% 20Number%20Ine%20Reason%20Why%20Customers%20Leave_jan2010.htm accessed November 4, 2010.

2Cited in Karin Fowler, “Customer Service Tips with Karin Fowler,” Center for Business Industry and Labor, May 2010 Newsletter, http://www.cbil.org/ May_news10.htm accessed November 4, 2010.

CHAPTER 3 Exceptional Customer Service 43

• Complete customer service requires others in your organization to support you; it requires customer service teamwork, with everyone committed to the same goal.

Critical First Impressions According to an old saying, “You never get a second chance to make a first impression.” Nowhere is this more applicable than in business situations, because how you initially communicate with people is key to your overall and continued success. In general,

CUSTOMER SERVICE TIP

Customers with high expectations—some-

times referred to as tough, demanding

customers—make a business better. The

secret is to use the situation as an oppor-

tunity to maximize customer retention

and improve customer services.

Figure 3.1 Types of Customer Service Experiences

REMEMBER THIS

ASPECT NEGATIVE EXPERIENCE PERFECT EXPERIENCE EXCEPTIONAL EXPERIENCE

Where expectations were not met Result: Customer went to competitor

Where expectations were fully met Result: Customer experienced nothing negative

Where expectations were fully met and something special was added Result: Customer received 10 percent over Perfection—and didn’t expect it!

Product • Did not have product in stock

• Stocked only low-end products

• Had the right product of good quality

• Received good value for the money

• Offered extra information of value to customer

• Went the extra mile

• Received a relevant free offer (discount, coupon) with the product

Service Standard

• Could not find anyone to help

• Didn’t feel they cared about what customers needed

• Were quick and efficient • Were both personal and appropriate

• Provided immediate solution to concerns

People • Were joking around together instead of helping customers

• Noted careless dress and grooming practices

• Liked the experience and the people

• Were professional, courte- ous, and respectful

• Remembered name from a previous visit

• Made a check-in phone call to follow up

• Used previous likes and needs to satisfy current purchase

CSRs need be reminded of delivery level on a regular basis by asking themselves—In my role, • what actions will trigger a negative customer experience?

• what actions will create a perfect experience?

• what is the value-added, unexpected experience that I might provide?

44 PART 1 The Customer Service Environment

consumers spend their money where they are treated well.

Successful companies examine and evaluate their customer service program regularly to establish a baseline standard for serving customers. A base- line standard is the minimum level of service it takes to satisfy customers under ordinary circum- stances. Here are some examples of practices that constitute a baseline:

• Greet all customers just after they enter your business.

• When possible, use a customer’s name.

• When asked, walk the customer to the product and place the item in his or her hand.

• Always return voice and e-mail messages within 12 to 24 hours of receipt or sooner.

Moment of truth is a term coined by Jan (pro- nounced Yon) Carlzon of Scandinavian Airlines Systems (SAS) in turning around his company as

a result of a tremendous loss of profits in the early 1980s. Simply put, a moment of truth is an episode in which a customer comes in contact with any as- pect of the company, however remote, and thereby has an opportunity to form an impression. This moment of truth happens in a very short time pe- riod, from 7 to 40 seconds. That is the amount of time you, as a CSR, have to make a good impression on your customer. It is this impression that will guide the rest of the service encounter.

If the moment is favorable, the whole interac- tion will be pleasant. If it is not, a positive customer relationship has been tarnished. Carlzon’s idea is that, if his company’s 10 million passengers had an average contact with five SAS employees, the com- pany had 50 million unique, never-to-be repeated opportunities, or “moments of truth.” With these moment-of-truth events and supportive employees, over the course of two years the company recovered from an $8 million loss to a profit of $71 million.

Keep in mind that a positive first impression is not going to be effective in the long run if a sub- sequent negative experience eclipses it. The best way to maximize the value of a positive first impres- sion is to reinforce it with favorable experiences throughout the course of future interactions.

Though typically not acknowledged, positive first impressions are influenced by customer service representatives’ personal habits. While it seems an obvious point, when a CSR’s hair is groomed, hands and fingernails are clean, clothing is appropriate and fresh, then these general actions mirror profession- alism on the job. Moreover, when CSRs interact with customers online and their technical skills clearly dem- onstrate attention to detail, accurate forms processing, and a pleasant voice during conversations—these prac- tices also send a positive impression to customers.

Indicative of the age of quick response time that we live in, returning calls promptly, delivering pro- ducts or services quickly, and using modern 24/7 technology to decrease response time are always

Figure 3.2

REMEMBER THIS

Actions That Advance Extraordinary Approaches to Service

• Decide who you are and what you can deliver. It is important to know what you can and cannot provide in alignment with the company’s mission statement and values.

• Decide who your customers are and what they want. It may be that what you think customers should value might not really be what they value.

• Deliver more than you promise. Make sure you give your customers more than they request, and ensure it is something they will value.

• Treat your employees as you expect them to treat your customers. Treat your employees with respect. Make them feel special. The result is that they will treat customers the same way. In business, this idea is referred to as the mirror principle, which says, your employees won’t treat customers better than you treat them.

3Jan Carlzon, Moments of Truth, New York: Ballinger Publishing Company, 1987, 3.

CHAPTER 3 Exceptional Customer Service 45

smart business moves. Each of these actions helps to create superior first impressions because newer gen- erations of customers simply are not willing to wait.

Empowerment Empowering employees with the resources and trust to solve customer concerns is a critical component to making a great first impression. This is a cor- nerstone of the Ritz-Carlton customer service plan. Defined as giving somebody power or authority, empowerment must follow a top-down model that conveys authority through the ranks to front-line service professionals. It enables employees to make administrative decisions based on corporate guide- lines. When employees can do whatever they have to do on the spot to take care of a customer to that customer’s satisfaction, that is empowerment. If the customer doesn’t win, then the company loses.

One significant benefit of empowerment is the elimination of nearly all multi-level problem solving that involves management. Scores of managers talk about empowerment, but many have difficulty put- ting it into practice. Too often, they don’t really understand what empowerment is. For example, many managers believe empowerment means giving employees the authority to make a decision to take care of the customer—as long as the action the employee takes follows the rules, policies, and pro- cedures of the organization. True empowerment means that employees can bend the rules to do whatever they have to do (within legal bounds) to take care of the customer.

Empowerment is an important aspect of leg- endary customer service for any business. Employees at the Ritz Carlton are allowed to spend up to two thousand dollars without consulting with a

supervisor to resolve a customer problem. Having a team of empowered employees who are afraid to make a decision is as bad, if not worse, than not having an empowerment program at all. When employees make a customer-related decision, the greatest concern for many of them is they will be reprimanded—or worse, fired—for making what management sees as a bad decision.

For empowerment to work, employees should know they will not be fired if they make an error and that it is okay to make mistakes in the process of working to win customer satisfaction. Once em- powered, CSRs have the responsibility to exercise that authority when the need arises. Ultimately, an empowered employee has far-reaching effects in keeping a customer who would consider going else- where for the product or service. It is of little value to talk service unless employees are also empowered to deliver exceptional service and rewarded for doing so.

Customer Turnoffs Attracting replacement customers is an expensive process because it costs many times more to generate new customers than it does to keep existing ones. Unfortunately, few companies even track customer- retention rates, much less inquire about what issues might be driving their customers away. Could it be fear about discovering the answers that prevent busi- nesses from ever asking the question “What turns you off as a customer?”

CUSTOMER SERVICE TIP

Undeliverable promises can do more harm

than saying “no” to a customer. Always

honor the commitments you make to

customers.

Ethics / Choices Time after time, when entering the employee

break room, you overhear other CSRs talking

about how bad the management is at your

company—specifically, your manager. What is

your reaction to this situation? Would you enter

the discussion to express your personal views,

would you ignore the discussion, or would you try

to reason with your co-workers and advise them

against spreading negative thoughts? Explain.

46 PART 1 The Customer Service Environment

If asked, customers would probably cite three categories of turnoffs.

1. Value turnoffs. When a customer says, “I didn’t get my money’s worth on this product,” this is a value turnoff. Value turnoffs include inade- quate guarantees, a failure to meet quality expectations, and high prices relative to the value perceived of the product or service.

2. System turnoffs. These irritations arise from the way a company delivers its products or services. When transactions are unnecessarily compli- cated, inefficient, or troublesome, customers experience system turnoffs. For example, employees who lack the knowledge to answer customer questions and organizations that have just one person capable of fulfilling a key function are symptomatic of system failures. So are voicemail menus that are unnecessarily complicated and time-consuming. Slow service, lack of delivery options, cluttered workplaces, unnecessary or repetitious paperwork require- ments, and inadequate reordering processes are additional examples of system turnoffs.

3. People turnoffs. These are the turnoff occur- rences most often associated with poor cus- tomer service. Examples include showing customers lack of courtesy or attention, using inappropriate or unprofessional behavior or language, and projecting an indifferent atti- tude. In short, any behavior that conveys a lack of appreciation, care, or consideration for the customer is a people turnoff. Of the three

turnoffs just discussed, people turnoffs are the most serious concerns to business because once customers feel unappreciated or disrespected, their loyalty is lost. Customers who return to these businesses after being treated poorly generally do so only when there are no other alternatives available.

Customer-centric organizations make every effort to avoid customer turnoffs in their quest for customer loyalty.

EARNING CUSTOMER LOYALTY As we have noted in Chapter 1, profound changes have transformed the business world. Ask most managers what is different in today’s economy and they will tell you that markets are more crowded with global competitors, and it is harder than ever to attract and retain customer attention as buyers who spend do so with increasingly limited dispos- able income.

Interestingly enough, a momentous inverse shift has occurred—we have, in effect, entered an age ofWhat can you do to show customer appreciation?

CUSTOMER SERVICE TIP

Don’t pass blame. When a customer calls

with a problem you personally did not cre-

ate, don’t rush to point out that, “I didn’t

do it,” or “It’s not my fault.” Instead of

dodging the issue or blaming someone

else, immediately apologize for the cus-

tomer’s inconvenience and take speedy

action to resolve it.

WHAT DO YOU THINK 3.1

What business-based situations and actions turn you off as a consumer of products and services? Record your responses.

io fo to /S hu

tt er st o c k. co

CHAPTER 3 Exceptional Customer Service 47

customer scarcity. Customers have become the most precious of all economic resources to businesses. Earning and keeping their loyalty is essential to successful companies.

Customer loyalty can’t be bought; it must be earned. Customer loyalty occurs when an organiza- tion retains its best customers as a result of finding, attracting, and intentionally retaining customers who regularly purchase from them. Earning trust and rela- tionship building is at the heart of customer loyalty.

The best way to survive in the current market- place is to build a wide base of loyal customers, by

tailoring the shopping experience, whether online or in person, to support customer-oriented behaviors and policies as much as possible. According to Fred Reichheld, author of Loyalty Effect, a mere 5 percent increase in customer retention can result in a 75 percent increase in customer value.

In companies across America, a disconnect between expectations and reality may be driving away customers. Incredibly, the disappointments that customers experience are often the result of failed expectations that the company has experienced within itself. For example, customers are routinely disillusioned because many businesses fail to meet their promised deadlines, fail to back up their pro- ducts adequately, or provide inconsistent product service and support after the sale. Clearly, customer loyalty is not earned in these ways.

Customers tend to stay with organizations that enable them to feel valued and appreciated, even if an organization cannot always respond to all of their needs and problems. Most people shift from one supplier to another because of dissatisfaction with service, not price or product offerings. It is the ser- vice provider’s responsibility, therefore, to manage the emotions in customer service exchanges.

In summary, there is an equation for keeping customers. It’s not exactly a secret, considering the multitude of books on the topic. It is as fol- lows: Take a good, first reaction with the customer; add in reliability, a quick response time, quality services and products, plus empathy; and the result is a satisfied customer. Take away any of these fac- tors and customer loyalty will begin to decline.

MAKE IT A HABIT

Exceptional Service Reminders

To provide top service interactions that pro-

mote customer loyalty, make these practices

spontaneous:

• Neglect other duties temporarily if you

sense you need to spend extra time with a

customer in need.

• Realize you have as much to do with the

tone of a customer transaction as the

customer does, so smile and receive each

customer warmly.

• Always go the extra mile and give unex-

pected value with the service you provide.

What does a loyal customer look like and expect?

WHAT DO YOU THINK 3.2

What reasons justify your loyalty to a partic- ular business? Make a list of your responses.

Fa nc

y/ Ju p ite

r Im

ag es

4Frederick Reichheld, The Loyalty Effect: the hidden force behind growth, profits, and lasting value, Boston: Bain & Company, Inc., 1996, 56.

48 PART 1 The Customer Service Environment

Figure 3.3 lists some tips that are useful to earn repeat business from customers.

WHO IS RIGHT FOR CUSTOMER SERVICE? For a customer loyalty program to be effective, a business must factor in the performance of its front-line employees. Superior service doesn’t just happen; it is a process. Next to a company’s product, excellence in customer service is the single most im- portant factor in determining the future success or failure of a company. Regardless of what a company does to make a profit in terms of the product or service it provides, the company is also in the busi- ness of providing customer service.

If you look at companies that are not doing well or have gone out of business, one of their common threads is failure to deliver superior customer service. A look at today’s successful companies will show that they took the necessary time to listen, under- stand, and then deliver what their customers said they wanted. More importantly, they are believers in the value of hiring the right people and providing customer service training for not only frontline em- ployees, but for management and all other support

workers as well. Top organizations carefully select people to fill the position of customer service repre- sentatives because CSRs count in these companies.

Who is right for customer service? A reason- able response is that any and all employees who are committed to a company’s mission are right for customer service, but employees with a very specific skill set are right to be customer service representatives.

The Role and Traits of CSRs The CSR’s primary service focus is always to resolve the customer’s problem as quickly and completely as possible. This requires exercising judgment; posses- sing knowledge of the product, customer history, company information, and competitive data; and using that judgment and knowledge along with common sense.

When hiring customer service professionals, companies should look for a helping attitude. You can teach anyone almost anything, but the feeling of customer service has to come from within a per- son. First-rate CSRs intuitively sense what irritates their customers. For example, seemingly minor issues such as the way a carton is labeled or a product is packaged are not minor, if they bother the customer.

Figure 3.3 Tips to Earn Repeat Business

REMEMBER THIS

Ask questions Never make assumptions about what customers expect in terms of quality and service.

Be honest For long-term success, honesty is not just the best policy; it’s the only policy.

Fix the problem When a mistake occurs, give your customers two things: an apology and a solution to the problem at no expense to the customer.

Learn from the competition

Pay attention to the service provided by competitors; then try to improve on that level when you are dealing with your customers.

Back up your company’s promises

Nothing ruins credibility more than when customer service representatives promise what their company cannot deliver.

Offer “one-stop” service Customers do not like being passed along from one person to another. Always try to take care of the problem personally and immediately.

Build an emotion-friendly service culture

To deal effectively with customers’ emotions, employees must be aware of the full range of their own emotional states—both positive and negative.

CHAPTER 3 Exceptional Customer Service 49

The most important task in hiring CSRs is to select individuals who fit in with the company’s cus- tomer service culture and have a demonstrated skill and interest in working with the public. Companies look for a variety of character traits, abilities, and experience levels for customer service jobs. The pro- file for an exceptional CSR includes the following characteristics:

• Initiative Takes the initiative to resolve issues before they become problems; ensures that cus- tomer needs are met

• Objectivity Is open-minded; is respectful to others; treats others equally and fairly; tolerates different points of view

• Positive attitude Is optimistic; maintains a cheerful attitude; looks for positive resolutions to problems

• Problem solving Provides appropriate solutions to problems; capably handles customer requests; finds positive resolutions to problems

• Relationship building Is friendly and courteous; easy to talk to; tactful and diplomatic; respectful and considerate

• Resilience Is open to criticism; feelings are not easily hurt; tolerates frustration well

• Resistance to stress Works effectively under stressful conditions; remains calm; copes well when under pressure

• Responsiveness Looks for speedy solutions to pro- blems; goes the extra mile to please the customer; responds quickly and effectively

• Sensitivity Shows an understanding of and an interest in customers’ needs and concerns

A customer service representative can work in a variety of settings and have any number of job titles. For instance, a CSR might work at a help desk, with customers at a counter face-to-face; on the phone in the role of telemarketing; or on the Internet in a multi-contact, technology-infused center that pro- vides immediate assistance and technical informa- tion to internal and external clients. Regardless of the setting or job title, the CSR’s role, in general, is to answer questions, solve problems, take orders, resolve complaints, and share customer concerns with management.

Service Duties and Skills Although the responsibilities of a CSR are many and varied, most companies write the job description to include the following duties:

• Provides in-house support for salespeople whenever a customer requires information or assistance

• Provides communication between levels of man- agement and customers

• Represents the customer’s interests, rather than those of a department within the company

• Helps develop and maintain customer loyalty

• Handles customer complaints and strives to have the company set them right

• Alerts upper management to trends or conditions within the company’s products or services that lead to customer dissatisfaction and recommends solutions to problems

Figure 3.4 identifies the critical skills CSRs need as well as the tools and technology they use when applying those skills.

Ethics / Choices Assume you are answering a customer’s inquiry

about a product. After an amicable conversation

with you, the customer realizes she cannot afford

your product and thanks you. You know that a

competitor offers the same product in her price

range. What do you do?

WHAT DO YOU THINK 3.3

Which service skills, shown in Figure 3.4, are the most difficult for you? Describe why you chose the ones you did.

50 PART 1 The Customer Service Environment

FOCUS ON. . . BEST PRACTICES

Loyalty Program Award Recipients

Customer loyalty programs are experiencing a

resurgence. Organizations that offer these programs, as

part of their customer loyalty strategy, hope to increase

sales and reinforce their brands by encouraging

consumers to concentrate all or most of their related

purchases on the company’s product. The net result of

these programs is to encourage customer loyalty

through such marketing strategies as reminder mail-

ings, cross-sell and up-sell offers, and discounts on

future purchases.

The COLLOQUY Loyalty Awards is a prestigious

competition that rewards innovative customer retention

strategies. Two of the top winners in 2010 were Godiva

and Hyatt.

• Godiva Chocolatier’s Godiva Chocolate Rewards Club program provides a creative way to reward and retain customers. In addition, the Rewards Club allows Godiva to track and analyze customer activity. Since May 2009, its numbers have exceeded 2 million, and more than half of Godiva’s sales come from Rewards Club members. Records indicate that Rewards Club purchases are 20 percent higher than those made by non-Loyalty Club customers.

• Hyatt anchored its Hyatt Gold Passport by offering generous perks, including free Internet service, and suite upgrades. In addition, Hyatt has empowered its employees to provide exceptional customer service by providing guests with complimentary dinners, laundry services, and massages. Overnight stays had risen by 41 percent in 2009 over 2008 among members.

SOURCE: “Citi, Hyatt and Godiva among winners of the first ever COLLOQUY Loyalty Awards honoring outstanding innovations in the loyalty industry,” September 17, 2010 http://www.colloquy.com/breaking_view.asp?xd=7580 accessed November 1, 2010.

Figure 3.4 Service Skills and CSR Tools and Technologies

REMEMBER THIS

FUNDAMENTAL SERVICE SKILLS TOOLS AND TECHNOLOGY

Know how to:

• build rapport, uncover needs, listen, empathize, clarify, explain, and delight customers.

• handle customer complaints, irate customers, and challenging situations.

• avoid misunderstandings, manage expectations, and take responsibility.

• work in teams and build internal cooperation and communication within the organization.

• communicate well in writing, and speak effectively to others to convey accurate information.

• show a positive customer service attitude and actively look for ways to help people.

Tools:

• Autodialing systems

• Wireless telephone systems

• Wireless telephone headsets

• Multi-line telephone systems

Technology:

• Contact center software

• Customer relationship management software

• Electronic mail software

• Enterprise resource planning software

• Network conferencing software

CHAPTER 3 Exceptional Customer Service 51

WRAPPING UP Keeping in mind the insightful experiences each of us have had with exceptional customer service, Chapter 3 emphasized the important relationship between customer expectations and initial percep- tions, and emphasized further how these first impres- sions affect the economic success of organizations and their products. In contrast, the chapter also discussed what turns customers off and how those turnoffs might affect customer loyalty. Companies like Godiva and Hyatt pride themselves in providing much sought-out customer loyalty programs to counter these turnoffs and support their best customers. Clearly, these and other companies recognize that customer attraction and retention can only occur when a company has an aggressive and comprehen- sive strategy in place. Prepare now to see how busi- nesses use crucial bits of information to create their Customer Service Strategy, the subject of Chapter 4.

SUMMARY

• Customer expectations are what a customer wants before a transaction; customer perceptions are created during and after a transaction.

• The best way to maximize the value of a positive first impression is to reinforce it with favorable experiences throughout the course of future interactions.

• Three customer turnoffs relate to value, system, and people.

• The depth of relationships and loyalty to custo- mers are critical to an organization’s success.

• Regardless of the setting or job title, a customer service representative’s primary duties are to answer questions, solve problems, take customers’ orders, and resolve complaints.

52 PART 1 The Customer Service Environment

KEY TERMS

baseline standard customer expectations

customer loyalty customer perceptions

empowerment moment of truth

CRITICAL THINKING

1. Why are customer perceptions one of the most critical aspects of exemplary customer service? Do you think guests of the Ritz-Carlton have a preconceived notion of the quality of service they might expect to receive? Discuss some reasons why.

2. Think of a business you’ve purchased from recently that resulted in an exceptional cus- tomer service experience. What made that experience exceptional? Does that business provide a loyalty program? If you have first- hand knowledge, what is your opinion about loyalty programs?

3. Do you agree with the statement “you never get a second chance to make a first impres- sion”? Why or why not?

4. Describe a local business that you regard yourself as loyal to and then explain why.

5. Of the three types of customer turnoffs— value turnoffs, system turnoffs, and people turnoffs—which do you feel is the most often violated by organizations? Why? Compared to other hotel chains, why might the Ritz- Carlton have fewer people turnoff situations to deal with?

WHAT DO YOU THINK NOW?

Project 3.1 Assume you are writing a report about the skills CSRs must have to provide exceptional customer service. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are sure-fire techniques and practices that provide superior customer service? What situations and practices might provide easy traps for mediocre or inferior customer service? What skills are necessary to be truly outstanding in your profession? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 3.2 Social Media’s Effect on Loyalty Visit a website such as Amazon or Barnes and Noble and locate three recent books that discuss the effects of social media on customer loyalty and retention. Prepare a one-page report summarizing three pieces of key information from each book. (Often the websites have a section for each book that gives an Overview or Editorial Reviews of the book that will provide the information you need.)

CHAPTER 3 Exceptional Customer Service 53

COMMUNICATION SKILLS AT WORK

Project 3.3 Moment of Truth Examples Look at the list of customer-oriented industries below and write down specific actions a customer service professional can make to improve a moment-of-truth experience as it relates to each of the four industries. For informal research, ask another adult if they have had a moment-of-truth experience in the past week and if so, have them describe it. Be prepared to share your findings and written ideas as part of an in-class or online discussion.

1. Hotel (e.g., Holiday Inn Express)

2. Restaurant (e.g., Chilis)

3. Retail store (e.g., Walmart)

4. Airline (e.g., Southwest Airlines)

DECISION MAKING AT WORK

Project 3.4 Customer Turnoffs Discussion You are sitting in the company lunchroom with two other CSRs, Doug and Chris- tine. Doug is relating a troublesome customer problem he has just experienced and is asking how you and Christine would have handled it. You discuss it, then the discus- sion moves to other examples of situations that turn customers off and how each of you would handle those situations. Listed below are three major customer turnoffs, which are not specific to a particular industry.

1. Waiting on the phone while the CSR is processing a purchase order and hearing others in the background laughing and socializing

54 PART 1 The Customer Service Environment

2. Red tape—such as refunds, credit checks, and adjustments on account 3. A company’s failure to stand behind their products or services

Upon your instructor’s direction, pair up with a classmate and role play each of the given situations that can turn customers off. In a class discussion, be prepared to state how you, representing a specific company, might address each scenario in a positive way. As an alternative, follow your instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

CASE STUDY

Project 3.5 The Mirror Principle Helen Harrison, marketing director of a major manufacturing plant on the East Coast, was driving back from an early morning Chamber of Commerce meeting and was reflecting on a statement made by the breakfast speaker. The speaker de- scribed the mirror principle by saying, “Your employees won’t treat your customers better than you treat your employees.” Given the increasingly fragile employee morale, decrease in sales, and increase in customer service complaints at the plant over the past six months, Helen is wondering if this is what is happening at her company.

1. If you were Helen, in what ways would you translate your feelings into an action plan for improvement?

2. What steps would be included in your action plan to turn around these problematic customer service issues?

CHAPTER 3 Exceptional Customer Service 55

CHAPTER 4 Customer Service Strategy

However beautiful the strategy, you should occasionally look at the results.

WINSTON CHURCHILL, ENGLISH STATESMAN

OBJECTIVES

1. Describe customer service strategy and its relationship to a SWOT (strengths, weaknesses, opportunities, and threats) analysis and a strategic plan.

2. Connect the importance of data warehousing to the efficiency of a customer relationship management strategy.

3. Identify the major components of a customer service infrastructure.

4. Discuss the changing role of CSRs as it incorporates additional marketing and sales activities.

56 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Amazon

Amazon.com, a Fortune 500 company based in Seattle, Washington, is one of the top global leaders in e-commerce. Jeff Bezos started Amazon.com in 1995, and per their website, today “offers everything from books and electronics to tennis rackets and diamond jewelry.” Operating sites in the United Kingdom, Germany, France, Japan, Canada, and China, Amazon maintains over 25 fulfillment centers around the world.

The online giant is obsessed with pro- viding quality service to consumers and targets two strategic goals: the satisfaction of a customer and efficient corporate growth. Its marketing strategies are near- legendary, because Bezos has noted: “Start with customers and work backwards … Listen to customers, but don’t just listen to customers—also invent on their behalf … Obsess over customers.”

These goals were backed by an unexpected business philosophy—Bezos expected to operate at a loss for 4 to 5 years. In “Marketing Strategies of Amazon.com” Melvin Ram notes that, “despite its massive growth, Amazon.com remains relentlessly focused on the con- sumer. Out of 452 company goals in 2009, 360 directly affected the customer experience.”

According to Small Business Notes, “Amazon.com offers a personalized shop- ping experience for each customer, book discovery through Search Inside The Book, convenient checkout using 1-Click Shop- ping, and several community features like Listmania and Wish List that help customers discover new products and make informed buying decisions.”

SOURCES: Melvin Ram, “Marketing Strategies of Amazon.com,” June 22, 2009 http://www.webdesigncompany.net/amazon-com-marketing-strategies accessed December 10, 2010. Small Business Notes. http://www.smallbusinessnotes.com/history/corporatestories/amazon.html accessed December 10, 2010.

CUSTOMER SERVICE INTELLIGENCE Whether you are an international corporation like Amazon.com or a sole proprietorship, a strong cus- tomer service strategy is important and is often what separates the successful organizations from the rest. In a business-model sense, many organizations con- sider customers strategic assets. As such, most com- panies regard assets (customers) as items that must be protected and their value maintained and even maximized over time.

When companies identify their essential cus- tomer service standards early in the process of gathering customer intelligence, these standards

provide a basis for measuring results. Figure 4.1 on page 58 provides examples of general customer service standards, as well as those for external and internal customers.

With these standards identified, organizations next need to identify who their customers are, and what their customers want so they can develop a customer service strategy that fulfills those customer expectations. While the elements of good customer service are generally in place at most organizations, a strategy is needed to pull them together. In order to formulate that plan, it is necessary to conduct an in-depth preliminary analysis of the company’s strengths and weaknesses.

CHAPTER 4 Customer Service Strategy 57

SWOT Analysis A SWOT analysis is a formal review of a business organization’s strengths, weaknesses, opportunities, and threats that ultimately contributes to a compre- hensive strategic plan. It provides information that is helpful in matching the firm’s resources and capabil- ities to the competitive environment in which it operates. As such, a SWOT analysis is vital to have when formulating a strategic plan because an organi- zation’s strategy will be more successfully implemen- ted if a business organization can correlate internal strengths and weaknesses with external opportunities and threats.

The SWOT analysis begins with specifying the objective of the business venture or project, such as providing unparalleled customer service. With that objective in mind, identify internal and external factors that are favorable and unfavorable to achieving that objective.

• Strengths: These are characteristics of the business that give it an advantage over others in the

industry. A firm’s strengths are its resources and capabilities that can be used as a basis for devel- oping a competitive advantage. Examples of customer service strengths include: strong brand names, superior service reputation among custo- mers, the addition of Customer Relationship Management (CRM) that improves service and product promotion, and low product returns (below 5 percent).

• Weaknesses: Characteristics or deficiencies that place the organization at a disadvantage relative to others are termed weaknesses. The absence of certain strengths, for example, may be viewed as a weakness. Each of the following may be consid- ered a weakness as well: a weak brand name, poor service reputation among customers, and a recent defective product that caused increased customer complaints.

• Opportunities: The external environmental analysis may reveal certain new opportunities for increased sales and growth or occasions to make improve- ments in products or processes. Some examples of

Figure 4.1 Customer Service Standards

REMEMBER THIS

TYPE STANDARDS

General • Make it a goal to exceed the expectations of all customer groups.

• Proactively anticipate customer needs.

• Be accountable to service commitment.

• Be aware of communication style (i.e., audible voice, eye contact); always communicate professionally.

External Customers

• Greet customers courteously and professionally.

• Listen actively to customers’ requests and take prompt action in response.

• Respond to website questions/requests within 24 hours during normal business hours.

• Conclude encounters with customers courteously and professionally.

Internal Customers

• Interact with colleagues courteously and professionally.

• Work to resolve issues with colleagues through direct discussion that results in agreed- upon solutions.

• Be considerate, cooperative, and helpful to every staff member.

• Be unilaterally accountable for addressing inappropriate behavior and comments.

SOURCE: http://thethrivingsmallbusiness.com/articles/customer-service-standards/ accessed November 10, 2010.

58 PART 1 The Customer Service Environment

such opportunities include: customers unsatisfied with a major competitor’s products, arrival of new technologies, and a competitor no longer in business.

• Threats: Changes in the external environment may present challenges to the business that hurt its ability to profitably serve customers. Some exam- ples of threats include: shifts in consumer tastes away from the company’s products, the emergence of substitute products, and changes in state or Federal tax laws.

Figure 4.2 illustrates the four components of a SWOT analysis.

Forward-thinking companies conduct a SWOT analysis in an effort to answer the following questions before they write the strategic plan document.

• Where is the business trying to get to in the long- term (i.e., 5–10 years)?

• In which markets should a business intentionally choose to compete?

• How can the business successfully outperform the competition in those markets?

• What types of resources (financial, skills, technical competence, facilities, and personnel) and orga- nizational infrastructure are required to compete profitably?

• What external environmental factors (positive and negative) affect the businesses’ ability to compete?

Levels of Management Businesses typically have three levels of management— top, middle, and lower or supervisory. The skills required at each management level are similar, but they are applied differently because the activities performed by each are different.

Top Management Typical job titles for this level are president, vice president, and superintendent of schools. These managers focus on long-range strate- gic decision-making that sets the tone and vision for the future in terms of new products, new markets, new facilities, etc.

Middle Management Department heads, branch managers, and deans fit in this category of managers. They implement the strategies that have been deter- mined by top management with intermediate-range tactical decisions.

Lower Management Individuals in these posi- tions include supervisors, department chairs, call center managers. They make daily decisions that ensure specific jobs are performed that meet the or- ganization’s objectives. In the past, traditional man- agers typically developed these plans with limited input from subordinates. However, in organizations that use the strategic planning process, this trend has changed.

Weaknesses

Strengths

Internal Analysis

Threats

Opportunities

External Analysis

SWOT Analysis Framework

Ethics / Choices With the ability to take online academic courses

and to buy food, clothing, and other necessities

online, it is now possible for people to limit their

face-to-face interaction with others. What long-

term effects—positive and negative—of this

decline in person-to-person contact might occur

on both personal and societal levels? How might

it affect customer service in the future? Should

businesses strategically study and plan for an

increase in this phenomenon?

Figure 4.2

CHAPTER 4 Customer Service Strategy 59

Formulating Strategic Plans Typically, a strategic plan for any organization has an easy-to-follow structure that includes the follow- ing elements relative to customer service:

• Objectives: Broad statements describing the targeted direction of customer service

• Goals: Service objectives that are quantified and stated in terms of a specific time period

• Strategies: Statements of how the service objec- tives will be achieved and the methods employed to achieve those objectives

• Tactics: Specific steps to be taken to implement the strategies and identify who is responsible for their completion

• Performance Indicators: Measures of customer service performance that show progress in meet- ing the goals and also monitors service and the degree to which quality customer service is delivered

Having a well-thought-out customer service strategy is the foundation for a strong service culture. Without one, management and emp- loyees often flounder, lacking a roadmap to guide them.

With these comprehensive elements in mind, a business organization must consider the following as a means of formulating and implementing the strategic plan:

1. Identify service goals: Create specific goals and standards for achieving customer satisfaction so employees understand and promote the target organizational objectives.

2. Share the vision and goals: Employees need to understand what the vision and goals for cus- tomer service are and what their responsibility is to achieve them. For example, an organiza- tion that shares a customer service vision with employees and customers is very different from an organization that does not share them, but leaves front-line employees untrained and unprepared for dealing with both routine and sensitive customer issues.

3. Hire right: When hiring employees, carefully screen candidates to ensure they possess the disposition and skill set needed to support a strong customer service environ- ment. Most employers realize that essential service skills can be taught, but attitude cannot.

4. Train service providers: Make time to train all employees in the best practices for serving customers. It is helpful to role play various service exchanges, such as: how to respond to customer complaints, how to be responsive to customers on the phone and in person, and how best to meet customer needs by applying the organization’s customer service standards.

5. Solicit customer feedback: Customer needs must be assessed because organizations can’t meet the needs of their customers without a good understanding of what those needs are. Soli- citing customer feedback through customer focus groups, surveys, or comment cards helps to develop a comprehensive plan to meet and exceed customer needs. Feedback survey in- struments will be more fully discussed in Chapter 7.

The strategic plan provides the basis to deter- mine how another business strategy—Customer Relationship Management—should be put into operation.

WHAT DO YOU THINK 4.1

Have you or someone you know ever worked for a company that either conducted a comprehensive SWOT analysis or created a strategic plan? What was that experience like? Do you feel these strategic activities improve the delivery of service to customers? Record your ideas in your journal.

60 PART 1 The Customer Service Environment

CUSTOMER RELATIONSHIP MANAGEMENT To implement customer service strategy, a business organization must have data about itself and about its customers as well. Customer satisfaction and cus- tomer loyalty are quickly gaining ground as reasons to get a customer relationship management system up and running. In an economy that sees demand level- ing off, making the most of the customers a company already has is essential. In fact, to most businesses, maintaining or improving customer satisfaction and loyalty can be more important than reducing budgets.

Working hand-in-hand with a strategic plan, customer relationship management (CRM) is a business strategy that integrates the functions of sales, marketing, and customer service, using tech- nology and massive databases of information. It is all about understanding customer needs and leveraging that knowledge to increase global sales and improve service in a more personal way.

The customer focus that CRM brings to a company is the direct result of the electronic world and the Internet. Few other approaches can offer companies the unparalleled opportunity to personal- ize services, provide consumers multiple choices for customer support, and track customer satisfaction.

The use of CRM in corporations is on the rise. According to Forrester Research in a study pub- lished in July 2010, “Fifty-six percent of the 455

large organizations we recently surveyed in North America and Europe have already implemented a Customer Relationship Management (CRM) solu- tion—and many of these companies plan to invest more to upgrade their tool set. An additional 20 percent have plans to adopt a CRM solution within the next 12 to 24 months.”1

Briefly, how does the CRM system work? Rather than only collecting, analyzing, and reporting on cus- tomer information, CRM allows electronic measures to be taken automatically on the basis of analyzing customer information. For example, if the CRM sys- tem detects a customer problem, it can be programmed to immediately send the customer an e-mail message, alert a CSR to call the customer and personally follow up on the problem, and access the billing system to set up a credit on the customer’s next invoice.

Purpose of CRM Companies justify their CRM investment cost by recognizing that strong, lasting relationships with customers encourage recurring revenue, which offsets the cost. CRM software is relatively simple to use, and there are many benefits; however, implement- ing it requires massive cultural changes in most organizations. CRM is more than technology; it involves a change in philosophy and attitude.

To be effective, CRM needs to be viewed by organizations as an all-encompassing business strategy—a customer-centric philosophy of doing business that affects every consumer touch point. When companies want to implement a successful CRM strategy, they need to consider thoroughly what each element of implementation means— knowledge management, database consolidation, and channel and systems integration.

• Knowledge management: At the heart of CRM implementation is the careful acquisition and secure storage of information about eachcustomer,aswell as the analysis, sharing, and tracking of this knowledge.

1William Band and James Kobielus, “Customer Service Platforms Enable Integrated Multichannel Experiences,” The Forrester Wave™: CRM Suites Customer Service Solutions, Q3 2010,” Forrester, July 2010, 2 http://www.microsoft.com/presspass/ itanalyst/docs/07-19-10CRM.PDF accessed December 10, 2010.

How would you summarize the importance of a strategic plan and how it supports customer service?

Fo to lu m in at e/ Sh

ut te rs to ck .c o m

CHAPTER 4 Customer Service Strategy 61

• Database consolidation: This involves consolidating customer information from any form or type of contact into a single database. The goal is to have all interactions with a customer recorded in one place and readily accessible to employees on a need- to-know basis when serving customers in mar- keting, sales, and support activities.

• Channel and systems integration: Merging informa- tion so it is readily accessible, secure, and easily updated just makes good business sense. The orga- nized and complete snapshot of customer informa- tion allows CSRs to respond to customers in a consistent and expert manner through the customer’s channel of choice. That channel may be via e-mail, a phone conversation, or an online video or text chat.

Benefits of CRM Customer relationship management allows a com- pany to collect information about customers, such as account history and prior questions or complaints they have had. Once that information has been col- lected, it can be analyzed using CRM software, and the company can more accurately gain insights into how to serve each customer better. In addition to a greater awareness of each customer’s interests and problems, the biggest benefits CRM companies experience are less customer attrition, better service results, and increased customer loyalty.

Moreover, with the ability to collect important data from customers that identifies their buying habits, including preferences and frequency, CRM systems give businesses a closer look at their custo- mers’ wants and needs. Businesses can then provide better customer service solutions. Through a CRM system, CSRs have detailed, factual, and current information about their customers readily available

on their computer screen as a result of data ware- housing and data mining.

Data Warehousing and Data Mining Data warehousing works in conjunction with and enhances the value of customer relationship manage- ment systems. This coordinated, enterprise-wide approach to data integration enables cross-functional analysis, and secure storage and management of critical business processes.

Specifically, a data warehouse provides a com- mon location for all crucial business data regardless of the data’s source. This makes it easier to report and analyze information than it would be if multiple data sources, such as sales invoices, order receipts, and general ledger charges, were used separately to retrieve information.

Setting up a large company-wide system like this is necessary prior to the application of data mining. By its very nature, data mining is the process of extracting patterns from data located in the data warehouse.2 Mining is an essential tool that transforms data into business intelligence giving companies that use it an informational advan- tage. Its ability to identify patterns among customers

What aspects of CRM seem most useful for providing effective customer service?

CUSTOMER SERVICE TIP

Successful companies don’t use technol-

ogy to replace human relationships, but

only to enhance them. 2Duane Sharp, “From Data Warehousing to Data Mining,” Suite 101®.com, February 5, 2009, http://www.suite101.com/content/from-data-warehousing-to- data-mining-a93631 accessed December 10, 2010.

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62 PART 1 The Customer Service Environment

targets, for example, the customers most likely to respond to an upcoming mail campaign or to pur- chase a new product about to be launched.

Data mining works because it utilizes several data analysis and modeling methods to detect spe- cific patterns and relationships in data. This helps companies understand what customers want based on previous purchases and also forecasts what they may buy. Other benefits of data mining include:

• Better business decisions based on a solid fact- driven understanding of specific customer behaviors

• Profitable customers that can be identified quickly and, therefore, better served with specific loyalty programs

• Marketing messages for new and improved pro- ducts that can be targeted to customers more effectively and thereby, significantly reduce direct marketing expenses

Preferred Customers Around the turn of the twentieth century, an Italian economist named Vilfredo Pareto created a mathe- matical formula that described the unequal distribu- tion of wealth in his country. Pareto’s formula stated that eighty percent of the nation’s land was in the hands of twenty percent of the population. Later, in the 1930s and 40s, a business writer named Joseph Juran applied Pareto’s formula to business in what he called the 80/20 Rule, noting that twenty percent of something is often responsible for eighty percent of the results, thereby making the distinction be- tween “the vital few and the trivial many.”3

While some question the correlation that claims eighty percent of sales comes from twenty percent of clients, CSRs know from careful study of data that a core group of customers are often responsible for a large percentage of sales. It is prudent customer service strategy to encourage and reward that group through preferred customer benefits. Members of

preferred customer groups often receive special news- letters, have exclusive first picks at new items and sale items, and accumulate reward points that translate into discounts, travel tickets, and other free gifts. Author and consultant Ron Ackerman notes that, “Success begins when management actually cares enough about this customer group to get actively engaged.”4 Leadership encourages preferred cus- tomer strategy to insure “internal and external com- munication that motivates customer centric behavior from all corners of the organization.” A “gold card member” in a diners club might move to the front of a line and receive the first table available on a Friday or Saturday night because the management knows who he or she is. Such treatment encourages continued if not increased sales.

SERVICE INFRASTRUCTURE In addition to housing customer data in one place, there are other service infrastructure components that customers also expect to be in place. Customers look for companies with solid reputations that are sup- ported by a well-designed customer service strategy and infrastructure. Clear service standards, like those noted in Figure 4.1 on page 58, and a strategic plan to achieve them require decision makers to take the next step to evaluate and develop a framework, or service infrastructure.

To establish a service infrastructure, begin with the fundamental challenges to which every

3http://management.about.com/cs/generalmanagement/a/Pareto081202.htm, accessed January 30, 2011.

4http://ezinearticles.com/?Preferred-Customer-Strategy—Crisis-in-Execution&id= 5438693, accessed January 30, 2011.

WHAT DO YOU THINK 4.2

How do you feel about special treatment for preferred customers? Can a company go too far in rewarding them? Record your response in your journal.

CHAPTER 4 Customer Service Strategy 63

service-oriented business must respond. These in- clude concerns about: hiring the best people, provid- ing a quality management team for support, ensuring transparent communications throughout the organi- zation, and consistently monitoring service policies and procedures. Part of this effort is for companies to spend the time and effort needed to assess and provide the best facilities, tools, CSRs, and needed ongoing training that meets strategic customer service goals.

Facilities and Service Tools Organizations honor their customer service strategy when they ensure that the service location and facili- ties are adequate and that the needed equipment, such as communication devices and software, are up to date in the customer contact center.

The contact center must be modern because it is an essential point of any organization from which all customer contacts and interactions are managed. It is also an integral part of the company’s customer rela- tionship management system. Contact center repre- sentatives don’t just communicate on telephones. In addition to calling, today’s customers also initiate communication with companies by emailing, visiting websites, instant messaging, and even blogging.

Just as the role of the contact center has ex- panded into a source of intelligence for the whole organization, the scope of expectations on the part of the customer has expanded as well. With all these expectations, a service advantage of CRM software is that it tracks service issues from the moment cus- tomers report them until they are resolved. This tracking requires no human intervention; it produces immediate and current information.

Customer Service Life Cycle One strategic use of Internet technology involves use of the Customer Service Life Cycle (CSLC), a concept that encourages companies to think in terms of differentiated involvement with the customer dur- ing distinct stages of use of a product. A recent arti- cle by Gabrielle Piccola and Bonnie R. Spalding outlines those stages as: the requirements phase, in which a customer realizes the need for a service or product and begins to research specific qualities about it; the acquisition phase, in which the customer orders, purchases, and receives the product or ser- vice; the ownership phase, in which the customer deals with any issues that arise from usage; and the retirement phase, in which the customer retires the product in some way, evaluates usage, and perhaps thinks about further purchases. CSLC reminds companies that customers have distinct needs at each one of these stages, and creative Internet strat- egy that responds to those needs provides quality customer service and increases retention.

Some of the examples that the authors note include a creative response to the requirements phase made by the arrangement between Denny’s Restau- rants, Fairfield Inns, and Mapquest. When custo- mers type in a destination, they can click the box that indicates the Denny’s or Fairfield Inn en route to their destination. Discovering the availability of these establishments is a useful supplement to the customer’s travel research. Likewise, Four Seasons Hotels offers an interactive website that allows

Ethics / Choices What should corporations and their employees

do to be more socially responsible (acting to ben-

efit society) to the community from which they

operate and profit? Should social responsibility

be a part of a company’s long-range customer

service strategy? Do customers expect it to be?

What risks are there to organizations when they underestimate the power of one unhappy customer?

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64 PART 1 The Customer Service Environment

prospective or potential customers to investigate the facilities of one of their establishments. Viewers can zoom in and have a closer look at rooms, restaurants, and banquet, meeting, and recreation facilities.5

While critics argue that the stages sometimes over- lap, CSLC is another reminder that that creative Internet service is becoming more and more essen- tial to cutting edge customer service.

CSRs and Training Implementing customer service strategy means put- ting the right people in place, who are trained in the latest communication devices and digital technolo- gies. For example, with the popularity of wireless communication devices, businesses reach their cus- tomers through Smartphones and other telecommu- nication gadgets.

When communicating with customers, CSRs use e-mail, text-based Internet chatting (the ability to hold a real-time conversation over the Web by typ- ing back and forth), voice-over Internet protocol (VoIP, the ability to have a real-time verbal conver- sation over the Internet), and push technology (the

ability to send a customer a specific image over the Internet directly to the customer’s computer screen).

Savvy customers who need help from a CSR expect more, because they have already covered the simpler, more basic answers and solutions on their own through the electronic avenues provided to them on the company’s website. This makes it very important to keep CSRs well trained in the latest service technologies and to pay careful attention when hiring and training service professionals.

Online CSRs, sometimes referred to as e-reps, require top skills, and these skills need continual updating through training programs. Of particular note is training in oral and written communication skills to conduct real-time, verbal- and text-based conversations with customers. Accurate and fast keyboarding skills are necessary so they can respond quickly to customers without making careless typo- graphical, spelling, or grammatical errors. In addi- tion, skills in multitasking (a component of work efficiency) are critical because reps frequently re- spond to several customers at once in the online, real-time chat mode.

MARKETING AND SALES In the service of implementing the goals of a cus- tomer service strategic plan, the role of a customer service representative has taken a more hands-on involvement with company marketing and sales ac- tivities. To increase the selling of products and ser- vices requires a concerted effort by everyone involved in the sales team. Two examples of this are up sell- ing and cross selling, both of which contribute to the direct profitability of the company.

MAKE IT A HABIT

Pride and Personal Responsibility

At the end of the workday, feel good in know-

ing that you have made a sincere effort to:

• Perfect an aspect of your oral or written

communication skills.

• Learn an additional work technique to

streamline your productivity.

• Support customer service objectives and

strategic plans in the best way you can.

• Put your best foot forward as you demon-

strate high standards of professional

service and communication with each

customer interaction.

WHAT DO YOU THINK 4.3

Describe the CSR you’d like to become and the service infrastructure you’d need to support your efforts. Record your thoughts.

5http://www.entrepreneur.com/tradejournals/article/79382268_3.html, pp. 1, 3, accessed February 1, 2011.

CHAPTER 4 Customer Service Strategy 65

Up Selling and Cross Selling Today, more CSRs are adding up selling and cross selling to their existing duties, since many organiza- tions realize now more than ever before that the contact center is the primary touch point for consu- mers. As such, one of the primary goals of customer service is not only to satisfy and retain customers, but also to close a sale, thereby increasing revenue and customers at the same time.

Although up selling and cross selling have been in practice for years, when done right, these are two of the least expensive and most effective techniques businesses can use to increase sales. Up selling refers to an improved sale. When you persuade the customer to buy a more expensive product compared to the one he or she asked for, that is up selling. For example, think of the last time you were in a retail store that sold television sets. It becomes easier for the floor sales person to upgrade your purchase decision because you were able to quickly compare the resolution and visual quality of many TVs at one time and perhaps be swayed to buy a more expensive one. The purpose of up selling is to position higher priced products in a good/better/best progression.

Cross selling, on the other hand, is when the sales person promotes products related to the one ordered; thus selling an extra product in the process. In other words, when you cross sell, you offer the customer a product or service related to whatever he or she is already buying. Cross selling can be as sim- ple as the waiter asking if you want an appetizer or salad to go with your main entrée. Or when you buy a book at Amazon.com, the site automatically lists and shows photos of other books purchased by people who bought the book you just ordered.

Both techniques seek to build on an existing customer base, rather than bring in new customers. Both methods also encourage customers to spend a little more, and that results in boosting overall sales. Two advantages of using up selling and cross selling techniques are: (a) they are relatively inexpensive be- cause no advertising or other promotion gimmicks are used or needed and (b) there is no need to hire new people for promotion because regular service

staff (CSRs) can promote new products along with the ones they are already servicing.

It is important to note that many cross-selling opportunities arise naturally. For example, if you are selling a baseball glove, you can also offer a bat, balls, and other sports clothing and accessories. Busy customers appreciate being told about additional pro- ducts or services that might better meet their needs or about new items that were not offered in the past. The key to successful cross selling and up selling is to focus efforts on meeting the customer’s needs, rather than simply pushing more products on consumers.

WRAPPING UP Regardless of the industry in which a company is classified, all of its employees are in the business of customer service. If a company cannot give customers the appropriate information, response, or resolution within a reasonable time frame, service and pricing won’t matter. Chapter 4 has presented a conceptual way to achieve a high-level of service throughout an organization by developing a well thought out Cus- tomer Service Strategy. Conducting a SWOT analysis, developing a strategic plan, employing CRM com- plete with data warehousing capabilities, and carefully designing a customer service infrastructure in organi- zations are steps that serve customers well, make a profit, and promote a solid reputation.

Infrastructures are run by people, and so it is time now to examine the personal skills that a CSR must demonstrate to ensure that those structures function effectively. Essential Customer Service Skills, the topic of Part 2 chapters begins with a focus on Critical Workplace Skills.

WHAT DO YOU THINK 4.4

Describe the last time you either upgraded a product or bought an additional product you didn’t expect to buy as a result of up selling or cross selling. Record your experience in your journal.

66 PART 1 The Customer Service Environment

SUMMARY

• Having a well-thought-out customer service strategy is critical to creating a strong service culture.

• A SWOT analysis helps a business organization prepare for formulating a customer service strategy by providing information about a company’s strengths, weaknesses, opportunities, and threats.

• Customer relationship management (CRM) is a business strategy that enables the implementation of customer service strategy by analyzing the func- tions of sales, marketing, and customer service, using technology and massive databases of information.

• Data warehousing works in conjunction with and enhances the value of customer relationship management systems because it provides a com- mon data location for all crucial business data regardless of the data’s source.

• To establish a service infrastructure, begin with the fundamental challenges to which every service-oriented business must respond: staffing, quality management, transparent communica- tions, and the latest service policies and procedures.

• The role of a customer service representative has expanded by adding cross selling and up selling activities.

FOCUS ON. . . BEST PRACTICES

Comcast

Service technicians must exercise great care when

responding to in-home service calls and corporate

America must take note. Comcast, for example, got

some unwanted large-scale publicity when a YouTube

video was broadcast to the world and captured a

service technician asleep on a customer’s couch. As a

result, company executives revisited the biggest U.S.

cable company’s business plan and quickly created

some new strategies in an effort to improve Comcast’s

image.

According to an article in Multichannel News, one

strategy was “deploying new software—‘Grand

Slam’—that gave customer-service agents and field

technicians the ability to recognize and diagnose

problems in every device in the customer’s home. The

software also lets technicians and customer-care agents

determine whether the problem is isolated to one

customer or is more widespread.” Another initiative

called MOSS—Make Our Supervisors Successful—gives

supervisors of CSRs and technicians special training

and a new focus as employee coaches. As the article

describes, “MOSS is designed so that 60% to 70% of

a supervisor’s time is dedicated to coaching and

empowering front-line employees to be more

successful.”

Companies must be ever vigilant to customer con-

cerns that can pop up instantly. They must be quick

to apply whatever strategies are needed to minimize

customer dissatisfaction. With a living customer service

strategic plan that reflects an understanding of custo-

mers and the current business environment, the job

is easier to do.

SOURCE: K. C. Neel, “Comcast Empowers Customer-Care Crews: Listening to Front-Line Employees Leads to Bottom-Line Satisfaction Gains,” Multichannel News, July 12, 2010, http://www.multichannel.com/article/454631-Comcast_Empowers_Customer_Care_Crews.php accessed December 10, 2010.

CHAPTER 4 Customer Service Strategy 67

KEY TERMS

cross selling customer relationship

management (CRM) customer service life cycle

(CSLC)

data mining data warehousing e-reps service infrastructure strategic plan

SWOT analysis up selling voice-over Internet protocol

(VoIP)

CRITICAL THINKING

1. What do you think about CEO Jeff Bezos’ controversial approach to starting Amazon.com? Why was the approach successful?

2. What are the service advantages to customers when a business sets its goals and strategies based on the findings from a comprehensive SWOT analysis? In your opinion, can students use the SWOT analysis successfully as applied to school and work decisions (i.e., selecting a particular job or a particular course of study)? Explain.

3. Defend an organization’s right to collect cus- tomer data. Are there limitations companies should impose on the protection and use of this information? Discuss.

4. Forecast what you think the customer service infrastructure will look like in five years. Evaluate your prediction with regard to how it will change the way customers are served and how CSRs will perform their ever-growing list of duties.

WHAT DO YOU THINK NOW?

Project 4.1 Assume you are doing a report entitled, “The Best Uses of Customer Service Data: A Business Strategy.” Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some decisive uses of a SWOT analysis and CRM in serving customers? What specific situations and practices should be monitored more carefully when using CRM strategy? What kind of infrastructure would best serve customers? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 4.2 Abuses of Data Warehousing Research a number of websites and locate several articles on the abuses of data ware- housing and data mining. As a result of your research, present your findings in a class discussion, as directed by your instructor.

68 PART 1 The Customer Service Environment

COMMUNICATION SKILLS AT WORK

Project 4.3 Strategies and Customer Service Life Cycle Work in a group with five classmates. Assume that you are part of a management team for a new company that manufactures and installs home security systems. Brainstorm and de- velop a customer service strategy for this new company that integrates a projected customer service life cycle for its product. Develop a chart presentation that contains these two items about your company and present it to the class either in discussion or panel format, as directed by your instructor. As an alternative, follow you instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

DECISION MAKING AT WORK

Project 4.4 Up Selling and Cross Selling Dilemma “But I don’t want to sell anything—that’s not why I became a CSR!” exclaimed Hillary. Hillary was reacting to a recent service department meeting, where her man- ager told CSRs that they were to begin up selling and cross selling products as a part of taking phone orders starting next week. As an incentive, the top two CSRs in product sales will get a $150 gift certificate to a first-class restaurant in town and be recognized in the monthly newsletter. Unfortunately, it appears that Hillary is not the only CSR who is upset. Management is appropriately concerned that morale may go down as service attitudes become increasingly negative.

For this activity, form a decision-making group and brainstorm a multi-step strategy to promote this new sales approach with CSRs. You will need to be as systematic, thorough, deliberate, and precise as you can in your approach. Evaluate also the manner in which Hillary’s organization announced this added responsibility. Provide analysis and facts in a class discussion or written report, as directed by your instructor. As an alternative, follow you instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

CASE STUDY

Project 4.5 Establish a Knowledge Base The customer service department is often separated from the rest of the company, training and operating in a “silo” rather than as a company-wide service system. (The term “silo” is an idea that each department in an organization is independent from the others and operates accordingly.) Management has determined that this situation is not in sync with identified customer service goals and strategies. You have been asked to serve on a task force, charged with developing a plan to “turn the situation around.”

Brainstorm with several students as many ideas as you can to improve this “silo” im- pression. After your group comes up with at least two ideas that have merit and address the problem, present your plan as part of a panel discussion. As an alternative, follow you instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project. Submit your project as a group-developed paper.

For example, one way is to establish a company wiki where all departments can contribute customer service knowledge and real-time lessons learned.

CHAPTER 4 Customer Service Strategy 69

ur ha

n/ Sh

ut te

rs to

ex us

PART 2

Essential Customer Service Skills

Chapter 5

Critical Workplace Skills

Chapter 6

Problem Solving

Chapter 7

Extreme Customers and Customer Retention

Chapter 8

Managing Customer Service

Al Smith, Vice President of Customer Service, Lexus Division, Torrance, California

Responsible for all activities in the parts, service, and customer satisfaction departments for Lexus, Al Smith joined Toyota in 1990 and has held a number of management positions at Toyota’s corporate headquarters in Torrance, California.

70 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

We have a philosophy and a covenant at Lexus that speaks to building the best cars in the industry, building the best dealer network in the industry, and treating each customer as a guest would be treated in our home. We also believe that every customer we have deserves special attention because he or she has made a commitment to us by purchasing a Lexus, and we should reciprocate by providing the best customer experience. We also understand that customers are our best advocates.

n1 For Lexus, what are the biggest challenges in customer service today?

Our customers have high expectations of us from the relationships we’ve built over the 20 years we’ve been in business. As you might expect, those expectations have evolved and our operations have changed to meet and hopefully exceed their expectations. Lexus custo- mers know that they are able to make a phone call to Lexus, or visit their dealer and get great service. But, today, they should also be able to text us, chat with us, or connect via social media. Most of the challenge, I would say, is just managing the customer relation- ship in a dynamic environment or the “new normal.”

n2 In light of the “new normal”, is Lexus hiring a different type of call center rep?

We don’t think we need to hire a different type of person, but we do need to learn how to give our people more leeway to use good judgment. We ex- pect our associates to have the courage to challenge the rules sometimes. They are trained to treat each contact according to the circumstance of that partic- ular situation. We have over 35 people answering calls and five of these associates are supervisors. I’d prefer 35 people with the mindset of our supervisors, willing to go all out for our customers. It’s a matter of hiring those persons who want to go the extra mile to support the customer—those who are patient enough to listen and understand the circumstance

and bold enough to challenge protocol in advocacy of the customer.

n3 What advice would you offer customer service representatives?

There are some people who can turn hostile situations into productive conversations by leveraging their calm- ing demeanor. They can effortlessly diffuse most situa- tions. So, when selecting team members we look for those traits. Soft skills are very important in customer service roles. We can teach them the hard skills, but it is the soft skills that make the difference in our busi- ness, quite frankly. At Lexus, we do extensive training for all of our associates. They learn techniques on how to diffuse a situation, how to speak confidently and compassionately; and how to interact with customers to seek the most positive outcome possible.

n4 Any additional comments? From the standpoint of delivering exceptional cus- tomer service, we launched a new service organization at Lexus last year, our Social Media Team. The Team’s direction is pro-active customer service. Under normal operating approaches, we wait for customers to contact us—and we react to the circumstances presented. However, this particular team is tasked with reaching out to the customer. Through social media channels, for example, team members watch, they listen, and they understand what the concerns of customers are. At the right time, they will intervene and introduce them- selves as Lexus representatives, and then seek to resolve any issues that they hear about on the Web.

FIRST IMPRESSIONS

What are some of the traits that Al Smith admires in a customer service representative? Record your observations in your notebook.

71 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

CHAPTER 5 Critical Workplace Skills

Time is the coin of your life. It is the only coin you have, and only you can determine how it will be spent. Be careful lest you let other people spend it for you.

CARL SANDBURG, U.S. BIOGRAPHER AND POET

OBJECTIVES

1. Identify techniques to better organize and manage time.

2. Discuss the importance of understanding and managing stress.

3. Understand the difference between positive and negative stress.

4. Define anger management and list ways to control it in the workplace.

5. Describe the benefits to customers of the teamwork approach in organizations.

72 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Google

Why shouldn’t work be challenging and fun at the same time? It was those concepts that Google built its company culture around. As a result, the Googlers, as they are called, enjoy their jobs in a creative, team-oriented environment with minimum stress.

According to Google’s website, here are a few things you might see in a Google workspace:

• Bicycles or scooters for efficient travel between meetings; dogs; lava lamps; massage chairs; large inflatable balls.

• Laptops everywhere—standard issue for mobile coding, email on the go, and note-taking.

• Foosball, pool tables, volleyball courts, assorted video games, pianos, Ping-Pong®

tables, and gyms that offer yoga and dance classes.

• Healthy lunches and dinners for all staff at a variety of cafés.

How would you like to work at Google?

SOURCE: The Google Culture, http://www.google.com/corporate/culture.html accessed December 10, 2010.

TIME MANAGEMENT How well we deal with time- and stress-related issues is a reflection of our attitudes, beliefs, behaviors, and organizational skills. Setting priorities and keeping them straight is a challenge in this fast-paced world. When CSRs learn to manage their time and stress levels, they not only increase their productivity, but they also improve their overall attitude and well- being.

Webster’s Dictionary defines time as “the period between two events or during which something exists, happens, or acts.” We have the ability to use time in constructive ways. Rather than letting time control work situations and outcomes, CSRs can be in charge of it by applying smart time management techniques. In general, time management consists of identifying activities that must be completed, and then prioritizing those activities so that the most important ones are accomplished first. CSRs should not attempt to squeeze more activities into an already overloaded schedule, instead, they should plan well and use the time they have in the most effective way.

Time management is an application of self- management. To manage ourselves, we need to examine our work habits, our environments, and how we manage our time and organize our work- load. Do we manage time or does it manage us?

Effective time managers find that the key to controlling how they use time is to record important tasks and appointments, rather than keep everything in their heads. Using an electronic device such as a personal digital assistant (PDA) or Smartphone can help organize a busy schedule. A personal digital assistant (PDA) is an electronic hand-held personal organizer. Although Smartphones have largely taken over the handheld computing space, PDAs are still

Ethics / Choices Have you ever set unrealistic time frames for

yourself, or have others pressed you to complete

a rush project? What do you think prompts us to

behave in this way and then experience stress in

work situations?

CHAPTER 5 Critical Workplace Skills 73

used for personal and work uses. A Smartphone is a mobile phone that combines the functionalities of a PDA and cell phone with Internet connectivity capability.

Time Management Tips When you schedule your time wisely, you control your life and can get more done each day. Effective time management has important health benefits, too. By managing your time more wisely, you can minimize stress and improve your quality of life. On its website, the Mayo Clinic discusses several time- saving strategies.

Plan and prioritize tasks Planning your day can help you accomplish more and feel more in con- trol of your life. Write a to-do list, putting the most important tasks at the top. Keep a schedule of your daily activities to minimize conflicts and last-minute rushes. Remember that time-consuming, but rela- tively unimportant, tasks can consume a lot of a ser- vice professional’s day. Prioritizing tasks will ensure that you spend your time and energy on those tasks that are truly important to you.

Say “no” to nonessential tasks Consider your goals and schedule before agreeing to take on additional work. If possible, look at your to-do list and consider what can be delegated to someone else.

Take the time you need Doing work right the first time may take more time upfront, but doing a job too quickly will result in errors, and usually the time spent making corrections will end up taking more time overall.

Limit distractions Block out time on your calen- dar for big projects. During that time, close your door and turn off your Smartphone, pager, and e-mail alert.

Take care of yourself Get plenty of sleep, eat smart, exercise regularly, and take breaks. A healthy lifestyle can improve your focus and concentration, which will help improve your efficiency so that you can complete your work in less time. Too much stress can derail your attempts at getting organized. When you need a break or a short walk, take one. Do some quick stretches at your workstation. Take a day or two of vacation to rest and re-energize.1

Time Wasters Poor time management can interfere with every- thing you do. For CSRs, it limits the number

MAKE IT A HABIT

Organizing Your Time

When organizing your time, ask yourself:

• What do I want or need to do that I am

currently not doing?

• What do I want or need to complete that

I have not yet completed?

• What do I want or need to start that I have

not yet started?

Then, list the tasks from highest to lowest

priority: first, highest priority to complete;

second, important to complete; and last, nice

to do in spare time.

Why is good time management one of the most important skills for customer service representatives to master?

St o ck b yt e/ G et ty

Im ag es

1 “Time management: Tips to reduce stress and improve productivity,” 2010, http://www.mayoclinic.com/health/time-management/WL00048/METHOD=print accessed December 7, 2010.

74 PART 2 Essential Customer Service Skills

of customers they are able to serve in a day. It also influences the time they have available and need to fully handle customer concerns and problems. To eliminate time wasters, be honest with yourself.

How effective a time manager are you? Find out by taking the short quiz in Figure 5.1.

From time to time, CSRs get themselves into time management trouble without intending to. The reasons frequently include:

• They can’t say “no.” Be honest about your com- mitments. Use your schedule to explain why you can’t comply with all requests for your attention. Keep in mind that you should probably say “no” to someone if the request is a last-minute one that requires an immediate response, skills that you do not have, or more time than you can reasonably provide.

• They are buried in paperwork. Schedule a specific time for doing paperwork and stick to it. Try not

to look at the same piece of paper twice; deal with it the first time.

• They procrastinate. Getting started can often be the hardest part of doing anything. Once you have started, however, you gain momentum, which makes it easier to keep going. Procrastination, the act of putting something off, comes in many forms, as described in Figure 5.2. on page 76 If you suffer from this tendency, admit it, an- alyze it, and make a commitment to conquer it. The enormity of the task could be causing you to stall. Attack the task by taking baby steps at first, and you’ll be on your way to more effective time management.

In a busy customer contact center, some eight- hour workdays seem to be only about five hours long. When you are deeply involved in serving customer needs, you may ask yourself, “Where did the time go?” It feels as if you have accomplished only part of what you set out to do during the day.

Figure 5.1 Time Management Quiz

REMEMBER THIS

YES NO QUESTIONS

□ □ 1. Do you carry scraps of paper with to-do items listed on them?

□ □ 2. Do you have trouble focusing on the task you are doing because you are thinking of other things that need to be done?

□ □ 3. Are you often behind schedule and routinely in a catch-up mode?

□ □ 4. Have you started many projects that you cannot seem to complete?

□ □ 5. Do you feel overwhelmed when you walk into work and look at your desk and work space?

□ □ 6. Do you have so many small items on your mind that you get easily distracted from your important work activities?

□ □ 7. Are you often remembering other priorities left undone at home while you are at work and vice versa?

□ □ 8. Do you arrive home feeling unfulfilled in your job, so tired that you want to escape?

□ □ 9. Do you feel that you cannot take time for physical fitness, recreation, or just plain fun?

□ □ 10. Do you find that during and after your workday, your stress level is so high that you have trouble relaxing?

If you answered yes to more than two or three of these questions, you may be showing symptoms of poor time management. The question then becomes: Do you control your time or does it control you?

CHAPTER 5 Critical Workplace Skills 75

Effective time management is a challenge for everyone every day, but it only improves (and becomes a habit) with concerted effort and regular practice. Don’t become trapped by rationalizing it away, by telling yourself a job wasn’t that impor- tant anyway or that it was too much work. When that happens, and it will sometimes, make it a habit to look back at your original to-do list and remember why you put this particular goal on the list in the first place. Finally, take a moment to feel good about yourself as you cross that item off the list!

Though not easily recognized, the final outcome for “letting projects slide” is a loss of self-esteem. As our esteem decreases, so does our motivation and energy. This, in turn, feeds future procrastination and begins an unproductive negative cycle. When you take on a task, make it a practice to honestly commit to completing it.

Figure 5.2 Procrastination

REMEMBER THIS

FORM OF PROCRASTINATION JUSTIFICATION CURE

Not wanting to do the task

Because procrastination usually involves something we don’t want to do, we fill our available time with smaller, easier, and more comfortable projects. We avoid tasks, issues, and problems that are uncomfortable to us.

Tackle your biggest project first in- stead of getting the little ones out of the way. The little ones will be easy to take care of in your spare time.

Interrupting yourself You may be interrupting yourself by get- ting another cup of coffee, stopping to talk with someone, making a quick phone call, or answering e-mail messages.

Set a time frame for the task you are doing and seat belt yourself to the chair.

Making the project too big

It is easy to procrastinate when the job seems too big to even get started.

Divide your project into smaller parts; then set realistic goals to accomplish each one.

Convincing yourself of defeat

Why bother trying when you are doomed to fail? Negative self-talk, such as, “I wouldn’t be able to do that job anyway,” is at work here.

When you start to think of a negative message, replace it immediately with a positive thought like “I know I can do this; I will get started now.”

WHAT DO YOU THINK 5.1

Evaluate your attitude toward time and how you manage it—both personally and professionally. Record your thoughts.

CUSTOMER SERVICE TIP

Enjoy what you’re doing while you’re doing

it. The results will show on your face and in

your attitude with customers, supervisors,

co-workers, family, and friends.

76 PART 2 Essential Customer Service Skills

ORGANIZATIONAL SKILLS While time management is something everyone should practice, professionally or personally, a CSR needs to be particularly organized, especially today, given the complexities of the job. To be successful, CSRs must control how they spend the hours they have on the job. Developing effective organi- zational skills is one tool that can help add more time to our busy lives and ensure less stress on the job.

Lack of organization can result in mishaps, such as losing critical information and experiencing frequent customer misunderstandings. The organiza- tional skills you apply toward planning each day provide a framework for your productivity. More important, they direct the demands on your attention and give you a sense of control.

People who manage their time well tend to be organized and in control of their workload. What makes some people appear organized and not others? Organized people are inclined to do nearly all of the following activities as a matter of routine:

• Prepare a monthly schedule. At the end of every month, calm your mind of incessant “things to do” lists and make a schedule of events and significant deadlines for the next month. Use the schedule to highlight or mark off duties as they are accomplished. There is mental satisfaction in knowing a task is completed and acknowledging that you met an important goal.

• Prepare a file folder for each item on your schedule.

Make notes on a particular project and immedi- ately file them in the proper folder to save time and not have to search for them later. Frustration dissipates when you know that you have everything you need in one place when you need it.

• Rely on technology. Use your Smartphone, PDA, tablet PC, or computer as an electronic assistant. There are several good personal information management programs, such as Microsoft Outlook®, which allow you to track

and schedule your activities, take notes, manage meetings, and so on.

• Organize your work area. Keep visible paperwork to a minimum, keeping only what is needed for the moment on your desk. Arrange your desk and paperwork so it flows in a logical sequence. For example, place important items first, left to right, in a semi circle on your desk. Disorganized per- sonal space is a very big time waster. As you work, you may have to reorganize your work area every so often throughout the day. Doing this may give you a fulfilled feeling that things are getting finished.

• Manage your communications. If you need to focus on a special project and not be interrupted, let your voicemail become your secretary. Return calls every two or three hours and keep a log of messages and their disposition so you do not have to rely on your memory to remember the details. You will instantly know if the task is completed or if there are still follow-up actions required.

A good sense of organization makes CSRs more efficient. If one of your main sources of stress is the sheer number of things that need to be done, getting organized should help you feel more in control. Not being able to find important documents is a major time buster and stress inducer.

Which types of technology do you use to stay organized?

St ep

he n C o b ur n/ Sh

ut te rs to ck .c o m

CHAPTER 5 Critical Workplace Skills 77

STRESS MANAGEMENT We live in an interesting age. Regardless of age, gender, position in life, and income, each of us experiences stress. People have never before experi- enced the amount of change, as well as the number of challenges brought about by those changes, that we encounter every day. That can be said for CSRs in particular, because of the tempo at which they must work and the uncertainties of how best to resolve the next customer call or email, which may have come from a far corner of the globe.

One way to better understand stress is to compare stress levels to blood pressure. High blood pressure or low blood pressure can be problematic, but blood pressure cannot disappear completely. The same is true with stress. When left unattended, stress can be harmful to your emotional and physical health. For example, too much stress can lead to sleep problems, general anxiety, and feelings of frustration. Conversely, without an edge, you can become apathetic and dull. Effective stress manage- ment means finding the right balance between too much and too little stress, and then maintaining that balance at each stage of your life.

What triggers your stress response? Except for major catastrophes, few events are stressful in them- selves. Stress arises when you perceive a situation as demanding. For example, your morning commute may make you anxious and tense because you worry that traffic will make you late. Others may find the trip relaxing because it allows more time to enjoy music or quiet time while they drive.

Stress is a basic component of most customer service jobs. To understand it better, another way to look at causes of stress in a customer service environment is in terms of a lack of something. It can be that CSRs, for instance, feel a lack of con- trol, lack of effective leadership, lack of continuity in performance of tasks, and lack of confidence or self-esteem. Figure 5.3 explains each one in more detail.

The Effects of Stress There are psychological, philosophical, and behav- ioral effects of stress on workers—especially CSRs. According to the American Psychological Association in 2009, “Sixty-nine percent of employees report that work is a significant source of stress and 41 percent say they typically feel tense or stressed out during the workday.” Perhaps more important to businesses is the finding that “Fifty-one percent of employees said2http://www.mind-gliding.co.uk/extra/KSAP.htm accessed December 15, 2010.

Figure 5.3

REMEMBER THIS

Causes of Stress

• Lack of control The inability to get things done, get others to co- operate, satisfy customers’ needs, and assimilate and organize the workflow manifests in a feeling of lack of control CSRs sense on the job.

• Lack of effective leadership Managers often unknowingly contribute to CSRs’ stress level through poor communications, unwill- ingness to delegate, failure to respond to inquiries and requests, changing priorities at the last min- ute, and perceived disrespect.

• Lack of continuity in performance When CSRs’ job priorities change and others rede- sign workflow processes without their input, they find it difficult to complete a task in progress and this do-again mode builds resentment and stress.

• Lack of confidence or self-esteem CSRs who feel empowered have been trained in the tools to deal with stress. As a result, customers are served by more confident service providers who have a higher self-esteem and are more efficient.

CUSTOMER SERVICE TIP

Working with positive stress and getting

rid of negative stress can be considered a

“facelift for the mind.”

78 PART 2 Essential Customer Service Skills

they were less productive at work as a result of stress.”3

Stressed-out workers cost organizations dearly in diminished productivity, employee turnover, and in- creased medical, legal, and insurance fees.

On a philosophical level, managing stress means learning how to be flexible and how to adapt to new events. Observations show that how people deal with change and other situations is what makes some people feel out of control and stressed. Among the effects of stress are loss of focus and attention, tight and tense muscles, and a conscious choice to take shortcuts or bypass procedures.

Finally, behavioral patterns that indicate stress are a decline in job performance, sloppy work habits, poor housekeeping, irritable and quarrelsome behav- ior, alcohol or drug use, an uncooperative attitude, and general negativity. In countless organizations, these effects of stress show up as worker burnout and negative office chatter.

Burnout According to BusinessDictionary.com, burnout is a “feeling of physical and emotional exhaustion, due to stress from working with people under difficult or demanding conditions.”4 Worker burnout is one of the most common reasons why employees quit their service-industry jobs. Psycho- logical exhaustion and decreased efficiency result from overwork and prolonged exposure to stress. Ironically, the more you enjoy your work and the more seriously you take the task of serving customers well, the more vulnerable you may be to the effects of burnout.

Burnout produces feelings of hopelessness, powerlessness, cynicism, resentment, and failure, as well as stagnation, fatigue, and reduced productivity. These reactions can result in levels of depression or unhappiness that eventually threaten a service pro- fessional’s health and relationships, both personal and professional.

Burnout is associated with situations in which a person feels

• overworked,

• underappreciated,

• confused about expectations and priorities,

• concerned about job security,

• overcommitted with responsibilities,

• resentful about duties that are not commensurate with pay,

• pressure to work at optimum levels—all the time.

To guard against burnout, try these four tips:

1. Don’t take work too personally. Keep in mind that when customers lash out, their frustration is over the difference between what they want and what they are getting; it is not about you personally.

2. Don’t take problems home. Give complete atten- tion to your job while you are at work, but leave concerns at work when you go home.

3. Get help from others. Remember that your co-workers are going through stressful situa- tions also. It helps to talk over these situations together.

4. Focus on the good news. When customers ap- proach you with problems, remember that most of them will become satisfied once you’ve han- dled their complaints to the best of your ability.

Negative Office Chatter Negative office chatter is a time waster and stress inducer. Time spent complaining about work, the boss, co-workers, and customers affect your attitude and that of others. Try to avoid those situations because people tend to absorb negativity through constant repetition. Staying positive can lessen stress and can be accomplished by agreeing not to talk about work at lunch and refrain- ing from excessive complaining.

Managing Stress When stress on the job is interfering with service professionals’ ability to work, care for themselves, or direct their personal lives, it’s time to take action. Part of managing stress is setting attainable goals

3 “Fact Sheet: By the Numbers,” Psychologically Healthy Workplace Organization, American Psychological Association Practice Organization, 2010, 1, http://www .phwa.org/dl/2010phwp_fact,_sheet.pdf accessed December 9, 2010. 4http://www.businessdictionary.com/definition/burn-out.html accessed December 8, 2010.

CHAPTER 5 Critical Workplace Skills 79

and not taking on too many commitments at one time. People need to enjoy the process of living, not just be directed by the goal of getting through each day. Most people who are stressed out have very unbalanced lifestyles because they are frustrated they cannot accomplish everything they want to do.

Exercise and staying physically fit rejuvenate us and help to counteract the loss of concentration caused by stress. CSRs who manage stress effectively make time for relaxation activities and humor each day. In addition, they have developed their own stress management plans from some of the tips that follow.

Stress Management Tips How would you assess Google’s commitment to provide challenging work that is also fun and near stress free? As you’ve already read, Google’s culture provides a choice of ways to cope positively with stress in the workplace. Below are a few more to include in your personal stress management plans.

• Pay attention to yourself. Identify the factors that cause stress in your life so you can change or better manage them. Make a list of the situations, relationships, and events that are stressful for you. Once you have a stress awareness checklist, you

can begin to make decisions about which ones need immediate attention.

• Don’t try to control everything. Focus on the situations that you can control and let go of those you cannot. For example, you can control your reaction to an angry customer, but you cannot control whether the customer is angry.

• Alter your lifestyle. Know when to say “no.” Do not procrastinate. Plan for and prioritize tasks. Avoid demanding perfectionism of yourself. Use time- saving tools and technology to your advantage.

• Change your thinking. Substitute positive thoughts for negative ones. “I don’t know how to do this, but I can learn” is better than “I can’t.” Drive away anxiety-producing thoughts. Give yourself a pep talk by focusing on your good qualities.

• Create an outlet. Exercise, do yoga, perform aro- matherapy, or practice meditation. Know how to relax, play, and get silly by regularly taking phys- ical and mental breaks. Nurture and develop your spiritual life by not neglecting matters of the soul. For many people, it brings a sense of inner peace, balance, and helps counteract the effects of stress.

Relaxation A fundamental part of any stress management program is relaxation. It is a much needed activity for overstimulated bodies and minds. Stress causes tense muscles, shallow breathing, increased heart rate, and elevated blood pressure. Relaxation reverses those effects.

In what ways can negative office chatter create a stress?

Ethics / Choices You and others affectionately call a co-worker

“last-minute Sam.” Sam has a good heart and

means well, but he always completes his projects

at the very last minute, stressing out himself and

others. Some workers don’t let Sam’s pattern of

work bother them. What would your reaction be if

Sam were a colleague of yours? Would you allow

his behavior to affect you?

Ph o to d is c/ G et ty

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80 PART 2 Essential Customer Service Skills

Relaxation refers to a state of being, is self- initiated, and causes physiological and psychological changes. People relax differently, but doing what works for you is the key to making this technique successful. Simple relaxation tools like those men- tioned below can help calm, de-stress, and better control angry feelings.

• Breathe deeply, from your diaphragm.

• Slowly repeat a calm word or phrase such as “relax,” or “take it easy.” Repeat it to yourself as you breathe in deeply.

• Visualize a tranquil experience, from either your memory or imagination.

• Perform non-strenuous, slow yoga-like stretches to help relax your muscles and feel calmer.

Humor Do you feel better at work when you are in the midst of happy colleagues? Most people do. A well-balanced life requires laughter and fun. One of the top ways CSRs can deal with stress is through humor. Exposing yourself to humor and determining the nature of your own sense of humor is the initial step in using this approach to cope with stress.

When you laugh, it helps reduce muscle ten- sion, release anger, deal with the unexpected, and increase your sense of overall joy. What can be done to promote the spirit of a more humorous

workplace? Here are some ideas that companies pro- vide to lessen stress through humor:

1. Sponsor weird apparel days. Wear silly hats, funny T-shirts, outrageous ties, and so on.

2. Celebrate holidays. Dress up for Halloween or coordinate a holiday meal.

3. Hold “match the baby picture” contests. Display childhood pictures of employees and see how many co-workers can correctly match babies with adults.

4. Organize lunch-hour board game tournaments. Whether you choose chess, a card game, or Scrabble®, a midday diversion activity can help workers cope better.

5. Participate on an intramural sports team. Compete for fun against other departments in regular golf, volleyball, or other no-contact events.

Aside from humor and laughter being great stress busters, they also

• make possible a more positive motivational environment,

• are great for team building,

• enhance relationships and communication,

• ignite creativity.

Positive versus Negative Stress Not all stress is bad. There is such a thing as positive stress, which people every so often need. Positive stress is a force that motivates and energizes you rather than makes you anxious and frustrated; there- fore, you can channel its energy into productive results. For example, suppose you have been asked by your supervisor to train your peers in a customer- service script that you developed for a new product. You might feel stress in the form of increased energy as you anticipate training others, but it is the positive kind because it propels you to do your best. In contrast, negative stress decreases productivity and comes from worrying about things you have no power to change.

Do you think that competing for fun promotes unity among co-workers?

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CHAPTER 5 Critical Workplace Skills 81

So, how do we get rid of unwanted stress?

• Don’t worry. By recognizing that sometimes you worry about things you can do nothing about, it’s easier to channel your worry into something productive. For example, you cannot stop snow from falling on a workday morning, but you can leave home 20 minutes early on those days to arrive safely and more stress free.

• Set goals. Focus your energy in a positive direction instead of feeling defeated by negative self-talk. Stop getting mentally and emotionally strained if you are unhappy in your job, and take action to change it.

• Finish unfinished business. Make plans to complete an unfinished task or decide to drop it altogether, and stop causing yourself stress over it.

• Resolve conflicts. Apologize to a friend, family member, classmate, or co-worker that you’ve disagreed with. This is the kind of negative stress that can keep you up at night.

ANGER MANAGEMENT Anger is a natural emotion, but when it gets out of control and turns destructive, it can lead to problems— problems at work, in your personal relationships, and in the overall quality of your life. Angry people have a tendency to speak in colorful terms that reflect their inner thoughts. When you become angry, your thinking typically gets exaggerated and overly dramatic.

Angry people also are inclined to demand things such as fairness, appreciation, agreement. Everyone wants these things, and we are all hurt and disap- pointed when we don’t get them, but angry people demand them, and when their demands aren’t met, their disappointment becomes anger.

It is quite understandable that, at times, an irate customer can make a CSR angry. When that hap- pens, how do you recognize what is happening, and more importantly, what do you do to manage anger once it starts to build? Anger management is a process of learning to recognize signs that you are becoming angry, and taking action to calm down and deal with the situation in a positive way. Anger management doesn’t try to keep you from feeling an- gry or holding it in. Anger is a healthy, normal emo- tion when you know how to express it appropriately.

For example, if you often find yourself getting angry at work, you need to first look at the possible causes for your anger and who is responsible for your feelings. Perhaps you stayed up too late and are tired or you have a critical deadline to meet and feel anx- ious about it. The first thing to do if you sense you are becoming heated in a discussion is slow down and think through your responses. Don’t say the first thought that comes into your head, instead, hold back and think carefully about what you want to say. At the same time, listen carefully to what the other person is saying. Always take your time before responding.

It’s natural to get defensive when you’re criti- cized, but don’t fight back. CSRs have to adhere to this advice especially because the nature of the job is that the customers can become irate and spark your anger, but, in the interest of all of the goals of cus- tomer service, you cannot respond in kind. The risk of lashing out is particularly real, however, when you bear the brunt of customer criticism, perceive a lack of support by superiors and co-workers, and experi- ence the empty feeling that you are alone in the struggle. As an alternative, listen to what the custo- mer’s underlying words may be saying. The message might be that this person feels unappreciated and taken for granted. Remember the longstanding cau- tion about having your mind in gear before engaging

WHAT DO YOU THINK 5.2

Describe the behaviors of someone you know who is under stress. To what extent do you think a person’s organizational skills have on minimizing or escalating stress? Record your responses in your journal.

82 PART 2 Essential Customer Service Skills

your mouth and making a real effort to think before you speak.

Compromise, when you feel it is possible. If problems can’t be resolved without tempers and hos- tility, sometimes leaving the scene of anger can be the best action you can take. Recall that you can’t control other people’s actions but you can control your own and influence them to be less angry.

TEAMWORK What do you think of when someone mentions the word teamwork? Sports teams most often come to mind, but other situations involve teamwork as well. Consider the movie industry. When producers make a movie, they have to put together a new team that includes actors, sound and light crews, makeup artists, wardrobe staff, and directors, among others. All the members of the team are needed to create the finished product, a successful movie.

Similarly, taking a team approach to customer service means working together as a group with common expectations and goals. Although compa- nies focus thousands of dollars on external customer service in hopes of attracting and retaining custo- mers, little attention is being paid to the effect poor internal customer service has on overall con- sumer satisfaction. It all starts within the organiza- tion. Sooner or later the ripple effect reaches out to influence customers.

As noted in Chapter 1, internal customer ser- vice refers to service directed toward others within the organization. It refers to building a level of responsiveness, quality, communication, teamwork, and morale. To help strengthen internal customer

service orientation, CSRs should follow these basic rules.

• Never complain within earshot of customers. It gives them the impression your company is not well run, shaking their confidence in you.

• Never complain to customers about another depart-

ment’s employees. Who wants to patronize a company whose people cannot get along with each other?

• Strive to build bridges and compatibility between

departments. This can be done in the course of cross training, joint picnics, off-site gatherings, as well as day-to-day niceties.

What does teamwork show customers? A good team approach shows buyers that the company is or- ganized and that everyone is moving toward a com- mon goal of satisfying the customer. It also means that because of shared ownership, no team member will allow the failure of one member because the entire team will fail. When team members are account- able to each other, customers know that the final objective of the team is their satisfaction.

Teamwork Communication Communication is one of the most important ele- ments of a successful team. For a team to be effective, its members must communicate with each other so everyone can stay informed and work as a unit. Whenever a team is put together, issues such as dif- ferent personalities, management styles, and company hierarchies arise. Many times, exchanging honest, open feedback is more difficult with someone you

What makes a team’s efforts worthwhile and fun?

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WHAT DO YOU THINK 5.3

When you are angry, what steps do you take to manage it? Record your thoughts in your journal.

CHAPTER 5 Critical Workplace Skills 83

work with than with your customers. This might be because the message you have to share with a fellow worker is not a positive one.

To maintain good working relationships, any negative feedback you offer a co-worker should be focused on a specific task, not on his or her person- ality. To be constructive, any criticism you offer should be accompanied by a positive suggestion on how to improve the task. By the same token, if a teammate is doing something well, be sure to mention it. Again, focus your comments on the task. An effec- tive customer-centric environment fosters forthright feedback and values honesty.

Benefits of Teamwork When customer service is built with organizational teamwork as its foundation, many benefits result. One of the most important benefits is that teamwork helps break down walls that can sometimes exist between departments within organizations. Team- work can also provide new ideas and a new slant on customer problems. Finally, teamwork can create a more effective method for delegating work and any follow-up actions that must be taken, thereby reduc- ing stress and increasing productivity.

Because no one is an expert on everything, people need to gather knowledge from others. Peo- ple who work together tend to learn things faster and retain information longer than do individuals

who work alone. Teamwork creates a synergy, which means that the combined effect of individual efforts is greater than their individual efforts alone. With synergy, problem solving becomes more ef- fective, and better organizational decisions tend to be made. Figure 5.4 provides some strategies that team members can adopt to deliver exceptional customer service.

Ethics / Choices Your company encourages employees to work in

teams. Brent is a fellow CSR with whom you

have worked before. On numerous occasions,

you have noticed that he has a poor attitude.

To you, it appears that he is always angry and

seems to put others down without realizing his

words may be offensive and insulting. Most of

your co-workers simply ignore Brent and try to

have as little to do with him as possible. What

would be your approach with Brent?

Figure 5.4

REMEMBER THIS

Teamwork Strategies That Promote Service

1. Support your teammates with information. Share what you know freely with your co-workers. Use huddles—brief, informal meetings—instead of formal meetings when time is limited.

2. Discuss new policies. Discuss any new policies with your team and jointly create a way to explain changes to your customers in a positive way. Sometimes, using a script can ensure that everyone is consistently following the same plan.

3. Identify areas for improvement. Let the ideas flow without judgment in a brainstorming session. The craziest ideas sometimes turn out to be the ones that work best.

4. Show pride in yourself and your co-workers. Celebrate others’ successes. Let the customer know you are proud of yourself, your co-workers, and your organization.

WHAT DO YOU THINK 5.4

Recall the best team you’ve ever been on (sports, work, group project). With that experience in mind, record your recollections of what made it fun and purposeful.

84 PART 2 Essential Customer Service Skills

WRAPPING UP Though critical workplace skills are many in num- ber, this chapter discussed those that will assist workers involved with customer service, especially CSRs. To be successful, a good attitude, the ability to manage time, and the ability to organize priorities are keys to reducing job stress. Understanding and applying techniques to control time, management of tasks, as well as anger management are key in build- ing positive and productive team interactions on the job. These points underscore the fact that personal skills, used individually and collectively, allow workers to respond quickly and effectively to customer-related problems, and they ready students to learn about on- the-job Problem Solving, the topic of Chapter 6.

SUMMARY

• Time management is not about squeezing more activities into an already overloaded schedule, but about prioritizing and completing those activities in a less stressful way.

• Being organized allows you to be able to quickly find what you need when you need it.

• Positive stress can motivate and energize a person; whereas, negative stress often makes a person feel anxious and frustrated.

• Anger management is the process of learning to recognize signs that you are becoming angry, and taking action to calm down and deal with the situation in a positive way.

• A good team approach shows that the company is organized and that everyone is moving toward the common goal of doing everything possible to satisfy the customer.

FOCUS ON. . . BEST PRACTICES

Addressing Workplace Stress

The top workplace issues that affect worker stress,

as reported by a recent study entitled “Stress in

the Workplace” are: health care costs, absenteeism,

and workplace safety. Though these stress issues

are unavoidable, employers nonetheless must

recognize them and provide a workplace that

offers possible solutions to counter these on-the-job

stressors.

Specific findings from the survey revealed that

“66 percent of employers have implemented at least

four programs intended to reduce stress. Twenty-two

percent have established eight or more programs.”

The top four employer-provided programs identified

are: employee assistance programs, flexible work

schedules, work/life balance support programs, and

leadership training on worker stress.

SOURCE: Ed Gadowski, Employers Using an Arsenal of Tools to Combat Workplace Stress: Survey, July 8, 2010, online http://www.buckconsultants.com/ buckconsultants/Portals/0/Documents/PUBLICATIONS/Press_Releases/2010/PR-Workplace-Stress-2010Survey-070810.pdf

CHAPTER 5 Critical Workplace Skills 85

KEY TERMS

anger management burnout negative stress personal digital assistant (PDA)

positive stress procrastination relaxation Smartphone

synergy time management

CRITICAL THINKING

1. Describe the behavior of a person who pro- crastinates doing a job or handing in a class assignment on time. Based upon your description, what remedies might you suggest to help that person be more productive?

2. Why are organizational skills important? How can you usually identify a person who exhibits these skills? What observable characteristics does the person possess?

3. Reread the Focus on…Best Practices feature on page 85 describing health care costs, absentee- ism, and workplace safety as they affect worker

stress. Evaluate the merits of the programs businesses offer to defuse worker stress.

4. Recall a situation when you experienced posi- tive stress that served you in a beneficial way. Explain why you think it helped you become more effective in the workplace.

5. In your opinion, is showing anger at work ever acceptable? Explain.

6. What are two ways a CSR benefits from contributing to team efforts at work? Why do you think some service professionals prefer to work alone rather than in a team?

WHAT DO YOU THINK NOW?

Project 5.1 Assume you are doing a classroom presentation on escalating stress-related problems in the workplace. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some service attitudes and practices that reduce stress in the workplace? What service factors should be monitored to alleviate stress-producing customer situations? Which skills should CSRs possess that mini- mize a stressful personal and professional life? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 5.2 Anger Management Seminars Research a number of websites and locate several anger management consultants who provide onsite anger management seminars. Write a short paper that compares the content offerings of any three of these workshops.

86 PART 2 Essential Customer Service Skills

COMMUNICATION SKILLS AT WORK

Project 5.3 Time-Management Suggestions Respond to the following items with a personal example of either how you have implemented or how you would implement each suggestion. After you have identified your examples, compare and contrast your suggestions with other students, as directed by your instructor.

TIME-MANAGEMENT SUGGESTION A PERSONAL EXAMPLE

1. Start with the most worrisome task

2. Complete deadline work early

3. Know your capacity for stress

4. Stay organized

5. Get physical

6. Have fun

DECISION MAKING AT WORK

Project 5.4 How to Motivate an Unenthusiastic Teammate During a weekly team meeting, you notice that one of your co-workers is quieter than usual. He acts as if he does not care to be involved in the team’s weekly sessions.

Respond to each of the following statements by role playing with another student what you might say to a team member who suffers from a lack of motivation. As an alternative, follow your instructor’s directions to join a group and use the instructor- designated discussion board to complete the group project.

1. Acknowledge your teammate’s value.

2. Discover the source of the problem.

3. Stress the importance of team harmony.

CASE STUDY

Project 5.5 Organizational Skills You had planned on getting to work early to finish an important project that is due today, but your car won’t start. You know you have the mechanic’s number somewhere, but you can’t remember where you put it. After searching all the logical places, you still cannot locate it. Now that you will be late, you will not have time to finish your project, which was assigned to you two weeks ago. You start to panic, and the clock keeps ticking.

First, indicate three organization-related problems in this scenario. Then, provide a technique or suggestion that would either eliminate each problem or reduce the its effects.

CHAPTER 5 Critical Workplace Skills 87

CHAPTER 6 Problem Solving

For every failure, there is an alternative course of action. You just have to find it. When you come to a roadblock, take a detour.

MARY KAY ASH, FOUNDER, MARY KAY COSMETICS, INC.

OBJECTIVES

1. Describe the steps involved in solving customer complaints.

2. Identify reasons that customers complain and describe the process for solving those problems.

3. List the conflict management styles and strategies to use when solving customer problems.

4. Discuss how a customer win-back plan is a necessary component for dealing with dissatisfied customers.

88 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

JetBlue

Proactive problem solving is part of JetBlue Airways success and customer service strategy. The company’s Customer Bill of Rights ensures that if a JetBlue traveler is inconvenienced in his or her travels, there is a published customer-oriented resolution in most cases. Available at the company’s website, some sample entries in JetBlue’s Rights include:

1. JetBlue will notify customers of delays, cancellations, and diversions.

2. All customers whose flight is cancelled by JetBlue will, at the customer’s option, receive a full refund or reaccommodation

on the next available JetBlue flight at no additional charge or fare.

3. For customers whose flight is delayed 3 hours or more after scheduled depar- ture, JetBlue will provide free movies on flights that are 2 hours or longer.

4. Customers who are involuntarily denied boarding shall receive $1,000.

When a major airline stands behind these public commitments, the problem- solving issues with customers are greatly diminished and help CSRs do their job more professionally as they interact with customers who complain.

SOURCE: http://www.jetblue.com/about/ourcompany/promise/index.html accessed December 15, 2010.

UNDERSTANDING COMPLAINTS Customer complaints can be a real challenge. Because businesses are complex, it simply is not possible to do everything right all the time. Many things can go wrong. Some issues, such as weather that slows down product delivery, are beyond an organization’s control, as the JetBlue feature illustrates. Yet, there are reasons customers complain. To be successful in their role, CSRs must be comfortable with the complaint- handling process their company expects them to use.

Why Customers Complain Customers complain for a host of different reasons. Some may not feel well, while others may just have angry dispositions. The most common reason, how- ever, is because the expectations customers have when purchasing a product or service are not met. It only takes one unsatisfied person to shatter a perfectly good day at work for everyone, but, more importantly, dissatisfied customers can steer prospec- tive customers away from your company.

Even when confrontations do not happen in person, the result is the same. Endless customer service e-mail loops and other service irritations frus- trate customers and cost companies in reputation and profits. The result is, that once again, dissatisfied customers often take their business elsewhere.

A call to a service rep that is completely re- solved on the first call is referred to as a first-call resolution (FCR). If the customer does not call back about the same problem for a certain period of time, consider the resolution successful.

When customers do not articulate their com- plaints, they can manifest in many negative ways: unpaid invoices, lack of courtesy to front-line service reps, and negative word-of-mouth statements. As previously discussed, an unhappy Internet customer can now reach thousands of potential customers in a few keystrokes. So, smart companies are proactive. They head off bad press before it happens by mak- ing it easy for customers to complain, and then they address those complaints seriously and quickly.

CHAPTER 6 Problem Solving 89

Further, they establish firm guidelines regarding cus- tomer response times and stick to them.

Disagreement versus Conflict Today’s best customer service is not something that can be faked: it involves being personable and sincere. That is why when dealing with customer complaints, distinguishing whether or not it is a disagreement or conflict is vital. In general, disagreements occur between people who have different opinions about an issue. Disagreements do not necessarily have to be resolved. You can, for example, agree to debate for the fun of it or even agree to disagree.

A conflict, on the other hand, involves a more serious clash of values, perceptions, or ideas. Conflict can jeopardize productivity in terms of one’s relation- ships at work and dealings with customers. Although most of us dislike being a part of conflict situations, it is smart for CSRs to realize that good can sometimes be brought about by conflict. For example, conflict can:

• foster a more profound understanding of another person’s ideas and personality.

• promote a deeper understanding of one’s self, one’s motives, and one’s effect on others.

• bring about a meaningful transformation in one’s own behavior and style of communication.

• foster more meaningful and productive relation- ships with others.

If the conflict involves a company policy or practice, a positive result can involve a change in practice or procedure.

Not all conflict, however, is good. If conflict es- calates with customers, the situation could result in accusations and threats when parties get angry and blame each other. Two possible customer service re- sults that emerge from heightened conflict are:

• General issues replace specific issues as the problem goes from a person being angry over a specific be- havior to wanting to sever the service relationship completely.

• Concern for self turns into retaliation, and the primary interest becomes hurting the company or getting even.

As noted, conflict begins because the product or service the customer purchased did not meet his or her expectations. Figure 6.1 illustrates from the Better Business Bureau’s website the most common

Figure 6.1 Causes and Complaints

REMEMBER THIS

COMPLAINTS CAUSES

Product Service • Poor product quality

• Maintenance difficulties

• Inadequate or poor repair work

• Goods/services delivery delays

• Failure to fulfill product or service warranties

• Incompetent or discourteous employees

Accounting • Billing errors

• Failure to provide timely refunds and adjustments, as promised

Sales Practice • Deceptive or inaccurate advertising

• Advertising products that are unavailable or in limited supply

• Misleading or false representations by sales staff

SOURCE: http://louisville.bbb.org/article/effective-customer-relations--bbb-advice-on-customer-service-and-complaints-8173 accessed December 11, 2010.

90 PART 2 Essential Customer Service Skills

complaints that deal with product service, account- ing, and sales complaints.

Recognizing that unresolved complaints pose a threat to consumer confidence and the climate of the American marketplace, the Better Business Bureau (BBB) has dedicated itself to playing a leadership role in the resolution of consumer-business disputes. The BBB is a recognized third-party complaint handling mechanism in the United States.

Above all, the BBB believes consumers and businesses alike are best served if they can resolve their disputes independently. However, if the matter is not resolved, the BBB will attempt to bring about a resolution by facilitating two-way communication between the parties through mediation. Mediation is a process used to resolve differences between two parties conducted by an impartial third party for the purpose of bringing about a settlement or agreement. The decision of the mediator is not binding, how- ever, as arbitration is.

Arbitration is a legally binding process that begins when both parties sign an agreement per- mitting the arbitrator to conduct a fact-finding hearing and make a final decision. This alternative to a formalized court ruling is expedient, more cost effective, consistent with most state laws, and con- fidential. After determining the facts, the arbitra- tor renders a decision, which can be in favor of the business, the consumer, or some compromise solution.

The Complaint-Handling Process It is always best when customers and the business can resolve complaints satisfactorily between them. The foundation for doing this and for maintaining customer goodwill in organizations is the publica- tion, promotion, and practice of using a sound customer relations policy. The best complaint- handling systems are structured from a customer relations policy and must operate simply, effectively, and quickly to everyone’s mutual benefit. Moreover, the policy manual and related procedures must be in writing and support all forms of communication exchanges and media used, such as e-mail, chats, and a variety of social media in addition to face- to-face and phone interactions.

A customer relations policy should demon- strate a strong commitment to customer satisfaction and encourage customers to communicate their con- cerns. In addition, the policy should spell out how, when, where, and by whom complaints and questions are handled in the company. One person within the company should have the ultimate authority and responsibility for customer relations, although all employees—especially CSRs—should know the guidelines as stated in the policy and how to implement them. At a minimum, a customer relations policy should:

• encourage customers to express their concerns using any available media or communication source.

• cover issues surrounding the business’s advertising, social media sites, sales promotions, displays, selling methods, pricing, warranties, deliveries, returns, and refunds.

• emphasize proper training of employees in customer relations matters.

• conform to federal, state, and local laws and regulations.

What should a company do to encourage custo- mers to complain and how should those complaints be handled? The answer lies in making it easy for custo- mers to give honest, regular feedback and then making sure they receive prompt and effective responses to that feedback. Businesses that treat every complaint

What are the benefits of using an unbiased third person to resolve differences between two parties?

M ar ci n Ba lc er za k/ Sh

ut te rs to ck .c o m

CHAPTER 6 Problem Solving 91

as the key to developing a better way of doing business thereby allow customers to feel safe enough to com- plain in a timely manner.

Service responses to complaints must provide specific and realistic feedback about what the next steps will be in response to their complaint. They must also be professional and courteous in manner. For example, will you research why the problem happened and how it can be resolved? Will you discuss it with your colleagues to prevent a similar situation from happening again? When will you respond to the customer? Will your response be in writing, by phone, or by e-mail? Set a reasonable timeframe for the resolution, and be sure to thank the customer sincerely for helping you improve the way you serve customers.

Customer complaints are never easy to hear. If a shift is made from being defensive to being creative, however, complaints can become advanta- geous. Thriving companies take these basic steps to completely and systematically process customer complaints.

Screen and log in information Start the pro- cedure by screening the customer call, electronically logging in the date the complaint is received, and recording all pertinent customer information.

Listen A disgruntled customer wants to know that someone is willing to listen. Being quiet, paying attention, and listening carefully to what the cus- tomer is saying—without being distracted or sound- ing impatient—are important. Try not to interrupt, as doing so may cause the customer to argue, with- draw, or simply hang up or walk away. Give a sense that you are an “active listener.” Repeat or para- phrase the concern or complaints that the customer has shared with you such that he or she has a defi- nite sense that you have heard and understood the issue. At an appropriate time during this initial con- tact, remember to thank the customer for bringing the problem to your attention.

Empathize After having the opportunity to express dissatisfaction, the customer wants to know that someone understands and cares about the

situation on an emotional level. Make certain that the customer realizes that you understand, not just the specifics of the complaint, but the customer’s feelings about what has happened. Find ways to re- spond with empathy and acknowledge the custo- mer’s feelings (upset, frustrated, disappointed). If possible, tell the customer how long it will take to satisfy the complaint, especially if a delay might occur, and acknowledge that, while this might add to their frustration, he or she is not forgotten, and a resolution is underway.

Solicit Feedback Try to get the customer to explain how the problem happened. By asking the customer for feedback on how the problem occurred, you convey concern and a willingness to understand the problem in order to arrive at the best solution. Another way to get feedback is to ask, “What do you think would be fair in this situation?” It will appeal to the customer’s sense of justice and feeling of involvement in trying to resolve the problem.

Apologize The customer wants to hear that you are sorry about the problem or inconvenience, even if you are not necessarily the one to blame. You can apologize without accepting blame by saying, “This situation is unfortunate, and I apologize for it.” A genuine apology is often the key to healing wounds. An immediate, sincere apology defuses hostility, no matter how grievous the injury. An apology is not only an expected social politeness, but also a practical step that helps open the door to further communication and possible resolution of the complaint.

Deliver Bad News Positively There may come a time when you must tell a customer that you will not be able to take a product back, that the item he or she ordered is out of stock, or that he or she must pay in advance. The following list offers some suggestions for delivering unavoidable bad news to a customer.

1. Inform the customer as early in the process as possible. Even though this part of the job is unpleasant, do not put it off.

92 PART 2 Essential Customer Service Skills

2. Get to the point quickly. You can warn the customer that bad news is coming in a kind way by saying something like, “You may not like hearing this, but …” This can sometimes soften the subsequent distress.

3. Treat the customer fairly. Customers remember your courtesy and professionalism long after the actual problem has been forgotten.

Take Ownership and Formulate a Solution If there is one thing that will frustrate a customer, it is “ping-ponging,” or being passed from one employee or department to another. Ping-ponging occurs when you come into contact with a customer service rep that either is not given the authority to resolve issues, is not trained prop- erly, or both. If the problem can be fixed on the spot, take care of it. If not, call your supervisor or transfer the customer to the appropriate person who can address the situation. Take ownership of the prob- lem and make sure that it is handled appropriately and immediately. Any solution should conform to your established customer relations policy and take into account contractual and/or warranty obligations, customer expectations, your company’s expectations, and your ability to deliver on any decision. Your company may occasionally authorize bending the rules, because doing so will ultimately cost less than it would to lose the customer or potential customers, if the dissatisfied customer leaves and relays a negative story about your company.

Communicate a Solution When your share your company’s response to the complaint, make sure your message is clear and appropriate. Try to avoid technical jargon. A respectful explanation of even an adverse decision can often preserve customer goodwill.

Follow Up Immediately follow up on any action that has been taken. Contact the customer to en- sure that the company has resolved the matter to their satisfaction. For example, appropriate follow- up action could be a letter of apology or a phone call to make sure that the problem has been fixed and that no additional concerns exist. That is also a

good time to ask for a second chance by saying, “We hope we will have a chance to serve you again.”

Using Scripts Sometimes tough calls become more manageable when the customer service representative uses a pre- pared script, or predetermined dialogue that states how to respond to common problems. Two advan- tages of using scripts are that 1) they help CSRs deliver consistent responses to common customer issues and 2) they assist CSRs in developing their own problem-solving responses. Often, when a CSR delivers the right combination of words in a sensitive and sincere tone, the result can be positive in its impact. When a script is not used well, a customer can often tell that a CSR is reading from it and this can be annoying. The response not only sounds pro- grammed, but the customer feels like the CSR does not care about his or her particular circumstances.

When implemented well, appropriate scripts include four key elements:

1. Empathy. CSRs should begin their responses by focusing on feelings. This means under- standing the situation and feelings from the customer’s point of view.

2. Acknowledgment. This involves recognizing the validity of the customer’s complaint, a key step in the process of reaching a solution.

3. Reassurance. At this point, CSRs need to restore the customer’s confidence in the company.

4. Action. Empathizing, acknowledging, and reassuring are not enough. Action is what counts most.

Figure 6.2 on page 94 provides an example of a script that demonstrates the four elements in action.

CUSTOMER SERVICE TIP

When you are trying to understand a

customer’s situation, remember that the

problem is the enemy, not you.

CHAPTER 6 Problem Solving 93

PROBLEM SOLVING In situations that require handling customer problems on a daily basis, effective problem solving skills are a highly regarded ability. CSRs that are considered especially good problem solvers are analytical and have first-rate interpersonal skills. They not only solve problems but simultaneously handle customers’ feel- ings. Complaining customers will return if a problem is resolved kindheartedly in their best interests. How good a problem solver are you? Take the quiz in Figure 6.3 to find out.

Problem Solving Process Dealing with customer issues involves more than responding to customer complaints. Records may indicate that a customer is making fewer and fewer

purchases, is slow in paying bills, no longer visits your restaurant with regularity and, when they are there, do not seem enthused or even satisfied with their service. There is definitely a problem. The challenge is determining what the problem is and how best to respond to it effectively.

People who are really good at solving pro- blems go about it systematically. They have a way of placing the problem in context. They do not jump to conclusions. They evaluate alternatives. A good way to become a systematic problem solver is to adopt the following five-step problem-solving process:

1. Identify the problem. This is critical. You must try to solve the right problem. Identify the problem by asking the right questions and learning from the responses. What is leading the customer to feel there is a problem? Is it something specific, or is it an intuitive sense on the customer’s part that things are not as they should be? Can the customer define the problem?

2. Analyze the problem. How often does the problem occur? How severe is it? What might be the causes of the problem? How long has it been going on? Has it gotten worse?

3. Identify decision criteria. How will you and the customer make decisions when the time comes? How will you weigh the criteria?

4. Develop multiple solutions. Do not stop at the first solution you identify. It may be good, but a much better solution might exist. Evaluate alternative scenarios and as objectively as possible, assess the pros and cons of each one.

5. Choose the optimal solution. Develop a base of support that will ensure you can implement the solution. Prepare for contingencies.

When problems are solved methodically, you save time, achieve better solutions, and increase your credibility with the customer and the value of what you have done.

Figure 6.2

REMEMBER THIS

A Sample Customer Service Script

1. “Natasha, you sound pretty upset with the in- formation I have just told you.” (empathy)

2. “Before we dismiss your request for.….” (acknowledgment)

3. “Let me make sure there is nothing I am aware of that has changed.” (reassurance)

4. “I would like to have Mr. Haynes in on this con- versation to listen to his ideas about alternatives. I would be interested in hearing them myself. Is that ok with you?” (action)

WHAT DO YOU THINK 6.1

Describe the best and the worst complaint- handling experience you have experienced as a customer. Record your descriptions in your journal.

94 PART 2 Essential Customer Service Skills

Listening and Responding There are times when we feel that we have solved a customer’s problem when, in fact, we have not. Based on our perception of the facts, we came up with a solution to solve the problem that made sense to us. The problem is, we did not listen carefully. We may have focused more on what we were saying than on what the customer was saying. To solve problems effectively, CSRs need to remember to apply their focused listening skills. Effective listening skills are essential to “read a situation” correctly. The ability to solve problems, resolve differences, and capture opportunities involves actively listening. Chances are, a customer will supply you with more informa- tion if he or she feels that you are truly committed to understanding what they are saying.

Service-oriented employees deal with problems on the spot. The problem may involve a customer’s conflict with another employee, an issue with locat-

ing merchandise, difficulty in finding the right de- partment or person to go to with an issue, or just general dissatisfaction or concern about the overall appearance of your establishment. However trivial or even contrived the issues may be, remember that it is real and important to the customer.

Or, the problem may indeed lie with the customer, such as an error in addition when paying a bill, the misperception of items on sale, or the mis- reading of a menu. The issue may involve an unjust accusation or unfounded comment. The customer may be uninformed, uncooperative, or just bad- tempered. The problem may be delicate, emotional (especially if the person is aged or in some way chal- lenged), and could easily escalate. The benefit of re- sponding to such issues immediately is greater customer satisfaction (even by those observing and not directly involved with the situation), which, ulti- mately, results in lower customer service costs. The

Figure 6.3 Problem Solving Skills Quiz

REMEMBER THIS

YES NO QUESTIONS

□ □ 1. When faced with a new problem, do you start by trying to determine its major cause?

□ □ 2. Do you compare the problem with other dilemmas you have solved previously to see whether a pattern emerges?

□ □ 3. Can you set aside trivial details while getting a grasp on the problem’s major facets?

□ □ 4. Can you look at a problem from several different perspectives?

□ □ 5. Do you feel comfortable asking for input from your supervisor?

□ □ 6. If a person helps you solve a problem, do you give proper credit to him or her?

□ □ 7. When you are making limited progress on your own, do you brainstorm with co-workers?

□ □ 8. Do you know when to stop gathering facts so you can make a decision in a timely fashion?

□ □ 9. When decisions turn out differently than expected, do you still consider alternatives?

□ □ 10. When you are still confused despite all your best efforts, do you set the problem aside for a short time to get a fresh perspective?

A total of eight or more “yes” answers suggest that you have excellent problem-solving abilities and the interpersonal skills to make things work for customers and co-workers. Five to seven “yes” answers indicate that you can solve problems but could probably do so more effectively with help from your peers. If you scored lower, reevaluate the process you follow when you are confronted with problems, and use these questions to guide you toward better problem-solving solutions.

CHAPTER 6 Problem Solving 95

benefits of listening and careful problem-solving anal- ysis helps CSRs to more easily follow these steps:

1. Determine whether the situation is a disagreement or a real problem. Ask the customer to state the problem from his or her point of view, and then state the problem from your own perspective. This can help determine where the problem lies.

2. Analyze your interests and the customer’s interests. Determine ahead of time what concessions man- agement will empower you to make on the custo- mer’s behalf and what limitations you have.

3. Brainstorm creative solutions and generate ideas together. If the issue is complicated, start with the easy issues and then proceed to the more difficult ones. Always attempt to establish points of agreement early in the listening process.

4. If step 3 does not resolve the situation, make some mutual low-priority concessions. Be patient. You may have to go through steps 3 and 4 more than once.

Figure 6.4 offers five additional suggestions for ways service professionals can work together with customers and be sensitive to their needs.

When problems are passed on to the next level of the organization, the price of service goes up. In other words, service cost is increased because more time to address customer concerns is needed and a more costly manager is now involved in the process. Therefore, successful problem solving early in the process is critical to a company’s financial success. Accessibility, ownership, explanation of policies, and follow-through promote effective problem solving in the most efficient manner:

1. Accessibility. When customers call your business, they need to know that they will be getting an answer quickly from an employee who is not only willing to help but also very knowledgeable.

2. Ownership. When a customer presents a genuine problem that may involve negligence or even incompetence, a CSR should accept responsibility for the situation (even if it is not his or her fault) and apologize without assign- ing blame.

3. Explanation of policies. When problems occur because of a company policy, a CSR should provide a clear explanation of what happened and why the company has this policy.

4. Follow-through. When commitments are made to customers, CSRs need to be sure they can deliver as quickly as possible on all promises they make.

Figure 6.4

REMEMBER THIS

Problem Solving with Customers

1. Keep your composure.

• Focus on the real issues.

• Be creative in your solutions.

• Know your hot buttons and keep them in check.

• Break the link between your emotions and the action that needs to occur.

2. Play it “side by side.”

• Put yourself in your customer’s shoes by showing respect, not hostility.

• Express concern for the relationship.

• Make reasonable requests.

• Ask questions and invite specific criticism.

• Use humor, when appropriate.

3. Be firm, but agreeable, to further negotiation.

• Respond to reason, but not to force or per- sonal attacks.

• Take sarcasm at face value.

4. Sidestep personal disagreements and keep talking about the customer’s issue.

• Caution, do not threaten. There is a fine line between the two actions. A threat sounds like, “Here is what I will do to you.” A caution expresses genuine concern and sounds like, “Here is what the situation will be.”

5. Look to the future.

• Say, “How do we make sure this never hap- pens again?”

• Suggest a third-party mediator, if all else fails.

96 PART 2 Essential Customer Service Skills

NEGOTIATING SKILLS Though not always needed by CSRs when solving customer problems, it is a good idea to review the basics of negotiating skills, conflict management styles, and conflict resolution strategies that may prove helpful in certain challenging customer situations.

Negotiation is an interpersonal process requir- ing a give and take between the participants. The following process is recommended to use as a basis in customer situations as well.

1. Describe what we (CSRs) want and feel.

2. Express why we (CSRs) feel as we do and the motives for our desires.

3. Acknowledge the other person’s perspective.

4. Look for solutions.

5. Choose one solution.

6. Put the chosen solution into effect.

When using this negotiating process, if a cus- tomer’s point of view is more logical, recognize that fact and say, “I am glad we explored all avenues, and at this point, I have to agree with you.” While such an admission can be difficult, put your ego aside and concede the customer’s point gracefully.

There may be times, however, that you may not be able to give in gracefully. When that occurs, take the time to think the problem over objectively. Above all, remember that your priority is to find a feasible solution to the conflict—not to win an argument. Consider using particular conflict man- agement styles in those cases.

Conflict Management Styles If you have a conflict with a customer, be aware of how you respond. The reaction you give may de-escalate the situation or fan the fires. There are five generally accepted styles for dealing with con- flict. Nothing is inherently right or wrong with any of these styles. In fact, each can be appropriate and most effective depending on the customer situation, issues to be resolved, and the personalities involved.

• Competing involves an entrenched, almost combative attitude based upon the unshakable conviction that you are right. If you compete, you are assertive in pursuing your own concerns. This style is useful when action is necessary. For example, if there are only a few products left in stock, the customer should be encouraged to place an order quickly, even though he or she hesitates to do so at the time. Care on the part of the service rep must be taken, however, not to come on too strong for fear that the customer backs away.

• Accommodating demands complete acquiescence to another’s point of view. If you accommodate, you are cooperative, but unassertive. This style is useful when you realize that you are wrong or that the issue is more important to the other person. For example, by replacing a customer’s order due

WHAT DO YOU THINK 6.2

Evaluate your results from taking the problem-solving quiz. What did you learn about yourself? Record your thoughts in your journal.

MAKE IT A HABIT

Resolving Customer Problems

Put your best foot forward and resolve cus-

tomer problems by routinely making a point to:

• Use customer’s names. It shows you are

genuinely interested in your customers

and helps create rapport.

• Give customers your name and contact

information. This action exhibits account-

ability and communicates an honest desire

to help.

• Smile through the phone. When you smile,

you sound friendly, interested, and helpful.

CHAPTER 6 Problem Solving 97

to faulty delivery practices, the CSR chooses to accommodate the customer and pay for the re-order costs. Accommodating is a small price to pay to keep a customer’s loyalty.

• Avoiding might take the form of diplomatically sidestepping an issue, postponing an issue until a better time, or simply withdrawing from a situation that is emotionally, physically, or intellectually threatening. If you avoid, you do not address the conflict. This reaction is useful when the issue is trivial, a confrontation could be damaging, or you need time to cool off or gather information. An avoidance situation, for example, can be the CSR not charging a complaining customer a change-order fee on specialized products ordered because the fee was unintentionally omitted on the original invoice.

• Collaborating requires finding creative solutions to a common problem. Rather than avoiding a prob- lem, you attempt to problem solve together with the customer to find a mutually satisfying solution.

• Compromising means finding solutions that are mutually satisfactory to both parties. If you com- promise, you address rather than avoid an issue. Compromising means splitting the difference or agreeing on a middle ground.1

Thoughtful and strategic use of these styles can effectively facilitate conflict resolution. CSRs should utilize one or more of these approaches in the pursuit of a continued and productive business relationship.

Although negotiation involves conferring, dis- cussing, or bargaining to reach agreements, most service reps realize that in practice, resolving conflicts do not always result in the preferred win-win column, but can also produce an undesirable win-lose or lose- lose service encounter.

Conflict Resolution Strategies When people bargain over positions, they tend to back themselves into corners defending their

positions, which results in a number of either win- lose or lose-lose outcomes rather than the ideal win-win result.

The win-lose strategy assumes that one side will win by achieving its goals and the other side will lose. Often this approach occurs when the parties start the negotiation process by stating the specific outcomes they want to see.

When the issues involved in a conflict are trivial or when a speedy decision is required, this style may be appropriate. It is also appropriate when unpopu- lar courses of action must be implemented—for in- stance, when implementing the policies formulated by customer service supervisors or top management.

The outcomes of the lose-lose strategy are common when one party attempts to win at the ex- pense of the other. Mutually destructive outcomes can also surface from personal disputes with custo- mers or colleagues and should be avoided. For ex- ample, feuding co-workers may destroy their own careers by acquiring a reputation of being difficult to work with or not being team players.

The win-win strategy assumes that a reason- able solution can be reached that will satisfy the needs of all parties and is the approach that is most desirable for CSRs to use. Instead of looking at their opponent as an adversary to be defeated, win-win participants see customers as allies in the search for a satisfactory solution through collabora- tive and compromising means.

In most situations, the needs of the negotiating parties are not incompatible; they are just different. The four basic components of a win-win negotiation that CSRs should use are to

1. Focus on interests, not positions.

2. Separate the people from the problem.

3. Generate a variety of possibilities before deciding what to do.

4. Insist that the best solution be based on some mutually acceptable and objective standard.

By focusing on the end result instead of the means of getting there, win-win solutions can fre- quently be found. You will want to exercise the

1Dawn M. Baskerville “How do you manage conflict?” Black Enterprise, May, 1993, FindArticles.com http://findarticles.com/p/articles/mi_m1365/is_n10_v23/ ai_13707958/?tag=content;col1 accessed January 7, 2011.

98 PART 2 Essential Customer Service Skills

win-win style with customers because you have com- mon interests and you desire to maintain a continu- ing, harmonious relationship. Should these attempts fail, organizations need to have an effective win-back plan and use it.

AN EFFECTIVE WIN-BACK PLAN As noted, an essential component of any communi- cation with unhappy customers is that you value their business and want it to continue. If it seems that customers have made a decision to withdraw their business, it is important to communicate that you want them back.

The key to success in recovering unhappy cus- tomers is having a well-conceived win-back plan. In most businesses, once customers make a decision to terminate the relationship, they do not communicate their intent to the company. A few reasons that most customers would rather walk than complain are listed here:

• They often do not know who to speak to about the problem. Customers think the available sales associ- ates do not have the authority to resolve big problems.

• They think that the complaint will never be acted on so they do not want to pursue it. Customers perceive that dealing with complaints is a low priority for the company.

• They think that the company really does not care about the problem, especially when they hear the phrase “It is company policy.”

Increasingly, the task of determining why com- panies lose clients is made easier because so many

organizations collect CRM electronic data pertaining to customers and their buying habits. For example, you can review the customer account history by look- ing for clues in call reports, replacement orders, and the like. By looking at the pattern of past orders and comparing it with the date of the customer incident, answers might become clear. Whenever possible while implementing a win-back plan, follow up with the most important recovery question, “If we fix that, will you try us again?”

When you are reapproaching any lost customer, your win-back message should include these four points:

1. Acknowledge the customer’s past patronage.

2. Point out improvements and changes made since the customer’s decision to stop buying.

3. Emphasize the ease with which the customer can re-engage and place another order.

4. Provide a meaningful financial or gift incentive, if possible.

Customer service representatives are a com- pany’s frontline of communication, and the quality of their communication greatly affects retention and win-back success with customers. People buy from people, not a company. Upset customers want to be taken seriously. They do not want to hear “You are kidding” or “No way” or “Whatever.” They want the CSR to behave professionally and treat them with courtesy and respect.

The secret to successful retention, marketing, and customer fulfillment is to get inside the heads and under the skin of your customers. In other words, think as they think, feel what they feel, and become your own customer. In that mindset, most issues become clear. Always under promise and over deliver. Then, when the product is received and used, ideally it should be better than what the customer expected.

Ethics / Choices In your opinion, is it ever acceptable to stand

your ground with a customer and not give in to

his or her demands? Explain.

WHAT DO YOU THINK 6.3

Which conflict management style makes you most uncomfortable in a customer situation? Why? Record your response in your journal.

CHAPTER 6 Problem Solving 99

Understand Why Customers Leave Everyone makes mistakes. Processes and procedures fail from time to time, as illustrated by JetBlue. Customers do not expect companies to be perfect, but they do expect companies to care and make han- dling customer complaints a priority. Further, they care immensely why customers leave.

Today’s customers interact with a company using multiple channels, and they often exhibit deeper loyalty than single channel customers. The reason is they expect to get the same consistent service whether visiting a store, logging onto a website, or calling a service center. To gain this loy- alty, a firm must internally coordinate sales and service across multiple channels so that customer preferences are accessible no matter how the customer chooses to interact. Because of this multi-channel approach, businesses need to know why customers no longer buy from them. In general, four reasons typically surface:

1. Unhappiness with product delivery, installation, service, or price. One incident is unlikely to

lose a customer, but several incidents of poor service, late delivery, or inaccurate shipment may cause a customer to look elsewhere.

2. Improper handling of a complaint. Customers who feel a complaint has not been taken seri- ously or are displeased with a resolution may search out another competitive product or service—sometimes just for spite.

3. Disapproval of unanticipated changes. Whenever companies make changes in the ordering pro- cess, price structure, product availability, or sales staff, there is always a risk of offending customers if they were not alerted to these actions in advance.

4. Feelingsofbeingtakenforgranted. New orders and even orders from established customers should not be taken for granted. Every customer should be resold on the quality of the business, product, or service in every transaction and thanked for their business each time a purchase is made.

Although customers defect for a number of reasons, Figure 6.5 describes five of the most obvi- ous signs that indicate customers may be thinking about shopping elsewhere.

Figure 6.5 Indications That a Customer is Defecting

REMEMBER THIS

INDICATION APPROACH RECOMMENDED

1. The squeaky wheel Companies should track complaints all the way through and make sure that custo- mers emerge from the process happier than when they entered. A customer com- plaint is a “customer defection alert.”

2. The product return Finding out the reason for returning any product is critical. Is the reason because the product is defective, the customer does not like the product, or it just was not the right size? A string of defective product returns is serious and should be consid- ered a red alert.

3. The quiet customer Beware of the customers who do not complain because the risk is that they will just leave and never air their grievances. Chances are, however, that they will discuss them with family or friends, other would-be customers.

4. A slow pay There may be negative issues with your products or services that cause customers to put a company at the bottom of their bill pay list. Find out what those issues are.

5. Falling revenue and reduced sales volume

When customer spending decreases, it is an opportune time to talk to customers. It could be that they have either changed their lifestyle or they have found an alter- native product or service. As mentioned in Chapter 4, the business strategy CRM provides an on-track resource to track customer satisfaction.

100 PART 2 Essential Customer Service Skills

Benefits Received from Complaints When things go wrong, customers will exercise their rights and complain. Surprisingly, these complaints can be good for CSRs to hear and beneficial for companies to learn about and act on. On his web- site, Ron Kaufman details reasons why customer complaints are good news for businesses. These rea- sons are shown in Figure 6.6.

WRAPPING UP Problem Solving is an effective skill to have on the job as well as to practice in life. Chapter 6 intro- duced the importance of really listening when cus- tomers complain and to always use a systematic approach to handling customer issues and com- plaints. A service professional’s use of conflict man- agement styles and strategies round out the arsenal of tools you can use in solving customer complaints and avoiding the need to implement a win-back plan in the future because customers choose to leave an organization. Unfortunately, that plan is sometimes complicated by extreme customers: quiet customers and vocal customers, the topic of Chapter 7.

Figure 6.6 Beneficial Customer Complaints

REMEMBER THIS

1. Customer complaints highlight key areas where your product needs improving, your systems need up- dating or your service needs upgrading.

2. Customer complaints help you identify where your current policies and procedures are inconvenient or unclear or simply not needed.

3. Complaints from customers can point out vital information that is lacking, erroneous or out of date.

4. Customer complaints often elevate important news straight to the top. Leaders and senior management learn quickly about service issues of importance to your customers.

5. Customer complaints give you valuable content and insightful case studies for your service education programs.

6. Sharing customer complaints throughout the organization educates everyone to understand what your customers experience, expect, and insist upon receiving.

7. The things customers complain about may present new business opportunities for increasing revenue.

8. Customer comments and complaints (particularly those along the lines of “company ABC does it this way) can provide you with valuable competitive intelligence, letting you know what others are doing that you are not (yet).

9. When customers complain, you learn which customers are willing to speak up. These customers can (and should) be invited to participate in customer focus groups, surveys, panels, beta-tests, on-site visits and other research activities.

10. Most upset customers simply walk away and then complain about you to their friends, colleagues, ac- quaintances and family members. Those who complain are giving you another chance!

Ron Kaufman is the author and founder of UP! Your Service. www.UpYourService.com

WHAT DO YOU THINK 6.4

What are two reasons that cause you to stop buying from a store? What could the retailer do to win you back as a customer?

CHAPTER 6 Problem Solving 101

SUMMARY

• CSRs that are considered especially good problem solvers are methodical, analytical, and have first- rate interpersonal skills.

• A systematic problem-solver uses a five-step method to effectively handle customer complaints. Those steps are: identify the problem, analyze the problem, identify the decision criteria, develop multiple solutions, and choose the optimal solution.

• When used effectively, the following conflict management styles can be a valuable approach to resolving customer complaints: competing, accommodating, avoiding, collaborating, and compromising.

• An effective win-back plan should be in place to recover lost customers because most disen- chanted consumers choose to walk rather than complain.

FOCUS ON. . . BEST PRACTICES

First-Call Resolutions

To successfully improve first-call resolutions, companies

need to focus on people, process, and product. They

also need to determine if they are using the right metrics

measurement in call centers to give them the data they

need to ensure that first-call resolutions are increased.

In a webcast, Dick Hunter, the former VP of Global

Consumer Support Services for Dell, discussed how his

company shifted from measuring call time to measuring

how often problems were solved during the first call. He

said: “It’s always cheaper to solve a problem in the first

call than to try to do it in multiple calls.”

The article where Hunter’s quote was noted further

states that when Dell asked its CSRs to focus on solving

customer problems rather than the length of the calls

themselves, the average time of a technical support call

unsurprisingly increased from 22 minutes to 32 minutes.

However, the number of incidents resolved on the first

call rose from 44 percent to 65 percent. Although it was

some time before this move paid off, it did because total

call volume fell. In addition, customer satisfaction scores

increased. Instead of cost per call, Dell began measuring

cost per resolution.

SOURCES: “Are You Measuring the Right Call Center Metrics?” IT Business Edge, September 30, 2009, http://www.itbusinessedge.com/cm/blogs/all/are-you-measur- ing-the-right-call-center-metrics/;jsessionid=CA5A8982A8FB0507B7792F5E20A9FC5E?cs=36262&decorator=print accessed January 6, 2011.

102 PART 2 Essential Customer Service Skills

KEY TERMS

accommodating arbitration avoiding Better Business Bureau (BBB) collaborating competing

compromising customer relations policy first-call resolution (FCR) lose-lose strategy mediation negotiation

ping-ponging script win-lose strategy win-win strategy

CRITICAL THINKING

1. Assume you work in a shoe store and a cus- tomer has a complaint about the quality of a pair of shoes she bought last week. What steps would you take in addressing the issue?

2. In your opinion, are the steps necessary to resolve a customer complaint applicable to nearly all service incidents? Explain.

3. Following the four points to include in a win- back message, create a message to a customer

of 10 years who wrote to say she would no longer do business with your company because during the past three service encounters, she was treated in a disrespectful manner.

4. Which conflict management styles and strate- gies are most effective for CSRs to apply in solving customer problems? In your daily interactions, which styles and strategies do you typically use? Why?

WHAT DO YOU THINK NOW?

Project 6.1 Assume you are doing a classroom presentation on resolving customer complaints. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some service attitudes and practices that promote great resolutions to customer complaints? What service factors advance immediate and careful resolution of customer concerns? Which skills should CSRs have to provide sensitive resolutions to customer complaints? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 6.2 First-Call Resolution Assume you are doing a report on the effects of first-call resolution on business profits. As a result of your search on the Internet, list three current items you might use in your report. Include the URLs where you found the information.

CHAPTER 6 Problem Solving 103

COMMUNICATION SKILLS AT WORK

Project 6.3 CSR Forums—Reacting to Customer Complaints A local utility company has recently instituted a roundtable discussion every other Friday at noon, at which CSRs are invited to attend and lunch is provided. The purpose is to allow each CSR to vent and share information about customer issues that might help others react to typical customer complaints. Today, you are discussing the following five CSR reactions.

1. Apathy: CSR’s attitude of indifference

2. Passing the buck: Giving the customer the runaround

3. Being talked down to: Treating customers as if they do not understand basic information

4. Rudeness: Treating customers in a disrespectful manner

5. Unresponsiveness: Not following up on a commitment

Brainstorm with three other students, as directed by your instructor, the severity of each reaction and what a more positive approach might be. Finally, create an appro- priate scenario for each reaction and role play a better approach. As an alternative, follow you instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

DECISION MAKING AT WORK

Project 6.4 Relocating the Office During a recent office relocation, the facilities manager of a local community college consulted with a technical expert on a variety of tools to improve communication among three remote campuses. The tools that the consultant recommended were exactly what were needed, and several of those items were purchased. A few weeks later, the college received a bill from the technical company for time spent consulting on the tools that were purchased. To the community college’s buyer, this added cost seemed unfair, since the company received a commission on the items already purchased.

Form groups of four and assume your group is the advisory committee to the facilities manager. As an alternative, follow you instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project. With your collective ideas, how might you respond to the following questions?

1. Is there a problem in this scenario? If so, what is it and what caused it?

2. What steps would you recommend the technical company follow to resolve the conflict and preserve the customer relationship?

3. Which conflict resolution styles might be appropriate to use?

4. If directed by your instructor, role play the scenario.

104 PART 2 Essential Customer Service Skills

CASE STUDY

Project 6.5 Resolving Complaints Melissa Devlin, the manager of Baby’s Little Store, overheard an angry customer yelling at a sales associate. It was obvious that Keanna, her new sales associate, was in a tight spot with a customer.

As the situation revealed itself, this new mother had recently bought a baby mattress for her newborn and was very dissatisfied with the quality of the product after using it only a short time. She felt the mattress was made with unsafe materials and was concerned for her baby’s health and safety. When the customer said she wanted her money back, Keanna said nicely, “I will have to check with the store manager to see if we can take back this used mattress for a full refund or not.” At that point, the customer lost her temper and said, “What is the issue? Why do you have to check at all?”

1. Evaluate the manner in which Keanna handled the situation. What did she do well in the customer situation and what are some errors she inadvertently made?

2. What suggestions could you make to this problem-solving approach, so that future dilemmas of this type have a more customer-oriented and positive solution?

CHAPTER 6 Problem Solving 105

CHAPTER 7 Extreme Customers and Customer Retention

Your most unhappy customers are your greatest source of learning.

BILL GATES, CHAIRMAN, MICROSOFT CORPORATION

OBJECTIVES

1. Discuss approaches to use when handling extreme customers, both quiet and vocal.

2. Describe the activities involved in proactive problem solving and customer self-service for extreme customers.

3. Analyze the uses for and types of feedback survey instruments.

4. Identify customer retention strategies and why they are important for quiet and vocal customers.

106 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Hewlett-Packard

Do you dread calling the customer support line to help solve your computer or printer problems? If so, do you then question whether or not you should remain a loyal customer of the company who manufac- tured the product in the first place? One manufacturer in particular has emerged as a leader in providing exemplary support for their customers. HP® (Hewlett-Packard) has been recognized recently by the Service and Support Professionals Association as a corporation that is committed to service and fully satisfying their customers. HP is aware that disillusioned customers fre- quently take their computer buying and service needs elsewhere and therefore makes a conscious effort to listen to and learn from their customers.

From an article entitled “Five Tips to Keep Customer Service up When the Economy Is Down,” here are two of several strategies that HP uses to retain customers.

1. Know your customers—and former customers, too. The article states: “HP’s Customer Services Group uses third- party surveys, industry benchmarks and

input from customers to get a clear picture of their needs, says Ofelda Gomez, customer innovation and advocacy manager for HP’s Personal Systems Group Americas.” For example, Gomez says, HP discovered that, when calling for technical support, some of the company’s more “tech-savvy custo- mers” considered answering basic questions posed by support personnel to be “a waste of time.” Gomez reports that “HP fine-tuned its call-in process so these customers could quickly order the specific part they needed.”

2. Reduce the need for customer service. The article also observes: “Many times, a few issues generate a large number of requests for customer support. Taking care of these identified issues immedi- ately reduces the need for increased customer support and promotes cus- tomer retention.” If, for example, the company receives frequent calls about billing issues, it tries to provide ways for customers to find answers to billing questions on their own.

SOURCE: “Five Tips to Keep Customer Service up When the Economy Is Down,” http://h71028.www7.hp.com/enterprise/us/en/messaging/feature-ent-customersup- port.html accessed March 23, 2011.

EXTREME CUSTOMERS Everyone has tales of very bad service. Customer ser- vice seems so simple—treat customers with dignity and respect, and they will reward you with purchasing your product. Customers indicate that getting a fair resolution during a product or service dispute is a reason for continuing to do business with a company. For example, L.L. Bean built an empire on the sim- ple rule that “no customer should have a product that

isn’t completely satisfactory.” Marshall Field, founder of the Chicago-based department store Marshall Field and Company, said, “Those who come to me with a complaint, teach me. Right or wrong, the cus- tomer is always right.” Field wasn’t saying that the customer is truly always right; some customers are very wrong. What Field meant was that, in dealing with complaints, you are dealing with people’s per- ceptions. Although a customer’s perception of a

CHAPTER 7 Extreme Customers and Customer Retention 107

problem may be shortsighted or distorted, in his or her eyes it is a legitimate concern.

That challenge is heightened when a CSR has to deal with “extreme customers,” that is, either pro- foundly quiet or vocal customers, whose modes of expressing those perceptions do not resemble those of the average customer. While average customers may get annoyed, they can, in some way, be dealt with fairly easily. When dealing with extreme custo- mers however, CSRs need to apply special skills in order to access and respond to complaints.

Part of the challenge is that, while many CSRs have been annoyed, even angry customers themselves on occasion, they have never been to the silent or vocal extremes peculiar to the customers this chapter will discuss. It is more difficult, therefore, for the CSR to put himself or herself in the customer’s shoes, because they have never been to those emotional edges. For that reason, CSRs must approach them and problem solve in a different way. They need specific strategies in dealing with these customers, reaching out to them, and recovering from them.

The Quiet Customer Should a CSR settle for the old axiom that “no news is good news?” Just because a company isn’t hearing complaints, doesn’t mean that all of its customers are completely satisfied. While some customers shout, many customers just leave quietly. Silent attrition is deadly, because companies do not have the opportu- nity to remedy problems and retain customers.

Quiet customers are the ones who don’t com- municate problems—they let their complaints build up to the point that they think it’s easier to simply leave rather than attempt to address the issue. These types of customer complaints are problematic because a company has no tangible suspicion that anything is wrong. According to Andrea Obston, silent custo- mers usually fit into one of these five categories:

1. The Satisfied Client. This is what we’d like to assume we have when we don’t get complaints— service is fine and customers are happy. There may, however, be fewer people in this category than we think.

2. The Accumulator. These customers allow pro- blems to mount up. Then something sets them off and they spout off, listing a string of wrongs that have been building up since their first purchase.

3. The Thinker. As Obston describes them, “These customers are the ones who say to themselves, ‘They (the business) must know this already so I’m not going to say anything.’”

4. The Runner. These customers find conflict so distasteful that they will do anything to avoid it. They would rather run and seek out a new vendor rather than directly communicate their problem.

5. The Busy Bee. Obston notes: “These customers use the excuse that pointing out a problem will take up too much of their time and energy. They tell themselves, ‘I’m too busy. I’ll find the easiest way out.’”

The quiet customer is best characterized as a silent threat because they are dissatisfied customers who don’t reach out, and thereby contribute to a picture that everything is fine when in fact it is not. They are at one end of the continuum while the vocal customer is at the other.

The Vocal Customer Occasionally, every business will encounter a cus- tomer who is best described as vocal, angry, even un- ruly. No matter how carefully you explain your position, this customer will misunderstand and take great offense. Unlike other customers, those who are especially vocal or angry do not respond to reason or goodwill and might become abusive, personal, even threatening. Although these situations are never pleasant, they require self-awareness for the CSR as well as tact and diplomacy. Attempts to understand a customer’s emotions and identify what actions and words trigger anger can help a service provider work better under these adverse conditions.

A CSR might encounter these customers on- line, a forum that might seem to provide escape but

1Andrea Obston, “Getting Customers to Complain,” Entrepreneur, October 14, 2004, http://www.entrepreneur.com/sales/customerservice/article72908.html accessed December 29, 2010.

108 PART 2 Essential Customer Service Skills

in fact poses a particular challenge. Online customer interactions automatically create a distance between the customer and the CSR because it eliminates the opportunity for any interpersonal, face-to-face exchange. Dealing with an angry customer on the phone or online (chats, e-mails, or online forums) denies you the ability to read nonverbal signals when a customer is upset. It is a big challenge for CSRs to determine customer emotions when they are not interacting face to face. Managing these types of distant interactions will be covered in a later chap- ter on communication.

Why Customers Get Angry Dale Carnegie said, “The only way to get the best of an argument is to avoid it.” Although customers become dis- satisfied for a number of various reasons, they gen- erally have one thing in common: The perceived value of a product or service is less than the cus- tomer expected. Here are three shortcomings that can cause customers to view products or services negatively:

1. Someone was rude to the customer. Whether the employee realized it or not, this was the customer’s perception. Remember that a customer’s perception is his or her reality.

2. Someone was indifferent to the customer. An employee projected a “can’t-do” attitude and left it at that— with the customer feeling frustrated.

3. No one listened to the customer. This reason is the most troubling. Failing to listen to a customer is a tragic waste of an opportunity for feedback and comes across as insensitive be- cause it hurts a customer’s feelings.

Although customers’ anger or emotions may not be directed at you personally, you are the one who receives them. To help defuse anger, CSRs must understand why customers get emotional, upset, and angry. While the following five reasons do not constitute a complete list, they are among the most important reasons that explain why angry customers behave the way they do:

1. They have had prior bad experiences.

2. They felt as if they would get the runaround.

3. They resented potential loss of money.

4. They disliked being inconvenienced and hav- ing wasted more of their time.

5. They felt a loss of control.

How Customers Get Angry The behaviors of angry customers manifest in various ways. The following are some actions you can expect to see when an angry person lashes out. When customers are angry, they

• blame others,

• can be loud and demanding,

• try to make you angry too,

• have little regard for the rights of others,

• take charge of the conversation by insisting they be heard,

• tend to interrupt the other person,

• refuse to do what you ask,

• threaten to go to your manager or supervisor.

Even the most experienced CSR has dealt with a customer who would only be satisfied by talking to a supervisor. When this occurs, first collect all the information relevant to the problem at hand and present it to the manager. He or she will then have some prior knowledge of the situation and will be able to handle the customer more effectively.

Abusive Behavior If a customer’s behavior esca- lates and is verbally abusive, a suggestion is to move to an office or another enclosure that offers privacy, where the customer can vent without disturbing others. If the customer is particularly problematic, it is advisable to have someone else present as a witness. Once the customer is calm, then decide

CUSTOMER SERVICE TIP

Customer complaints are like medicine.

Nobody likes them, but they can make us

better.

CHAPTER 7 Extreme Customers and Customer Retention 109

what can be done about the problem. Specialists state: “Keep in mind that in a confrontational inter- change, it doesn’t hurt to agree a little. When you ease a complainant by saying, ‘I understand’ or ‘What can I do to help?’ you are not necessarily agreeing with the customer’s position, only with his or her right to be angry.”2

When working with customers, always focus on determining “how can we?” When a customer is irritated, first discontinue what you are doing and present him or her with your full attention. Actively listen and empathize with the customer, even if you think he or she is wrong. It is a natural response to take it personally, but remember: The customer is annoyed about your company’s products or services, not with you. You can stay in control of your own behavior by staying cool, calm, and collected. Finally, ask as many questions as it takes to understand the full scope of the issue.

When the facts are gathered, tell the consumer what steps you plan to take to solve the problem. Always follow through on your promise to get the problem resolved.

Dealing with Customer Emotions What CSRs must realize is that an angry customer might not respond to logic. In fact, the more logical

you are, the angrier the customer may become. At such times, no matter what you say or how you phrase it, you simply will not be able to penetrate the customer’s emotional barrier. Therefore, before you can work on the customer’s problem, you must be able to deal with the customer’s emotions. To regain the customer’s confidence, you need to com- municate in a way that renews his or her faith in the relationship. Such communication usually begins with a genuine apology.

Make sure you listen to more than what is being said, because when people are upset, they don’t always convey what they mean. Ask questions to gather more information, and use softening techniques, which are positive approaches that

2 “Resolving Customer Conflicts,” Frontline Learning, http://www.frontlinelearning .com/Article_Customer_Service_Resolving_Conflicts.html accessed January 14, 2011.

How can you communicate effectively using empathy and tact with an angry person?

MAKE IT A HABIT

Managing Complaints Professionally

You create loyal customers each day when

you make every effort to:

• Admit immediately any mistake on your

part. It shows you are human and instantly

diffuses most emotionally charged

situations.

• Look for common ground with the cus-

tomer. By doing this, you will find solutions

that work for all parties involved.

• Stand behind any guarantees and promises

you make.

• Handle criticism diplomatically.

• Stress what you can do, not what you

cannot do.

CUSTOMER SERVICE TIP

The best time to deal with a customer’s crit-

icism is while the complaint is happening.

Im ag e So

ur ce

/G et ty

Im ag es

110 PART 2 Essential Customer Service Skills

help when interacting with customers. Softening techniques include:

• an open posture (no crossed arms),

• kindhearted eye contact (no eye rolling),

• moving the customer to a private area, if needed.

The critical step in calming an angry person is to stay composed yourself. Try to keep your voice relaxed. If you hear your voice sounding rushed or panicked, take a few deep breaths to help you regain your composure. If you notice your jaw clenching, relax your facial muscles. Once your emotions are under control, turn your attention to calming the customer. Use calming phrases to describe what you can do for the customer to help solve the problem, and avoid trigger phrases that may further agitate the customer. Examples of trigger and calming phrases are listed in Figure 7.1.

Recovering from the Angry Customer Most of the time, service mistakes result from situa- tions that are completely out of the control of a CSR. Regardless of whether it is a computer glitch or a mistake that a co-worker has made, it is impor- tant to remember that placing blame will not fix a customer’s problem. Instead, focus on how you can

help your company to recover from the mistake. Without top-notch service recovery, you will lose customers that were so hard to acquire.

A customer who feels betrayed will be looking for service recovery, that is, some gesture of atone- ment or compensation. To be effective, service recov- ery should be specific to the situation so it doesn’t appear like you are making a concession just to get rid of an angry customer. Typically, when a service failure occurs, a customer can be compensated for the inconvenience in the form of any combination of cash refunds, credits, discounts, or apologies. Two crucial recovery steps that customer service representatives should follow are:

• Acknowledge the receipt of every complaint immedi-

ately. This shows that you are sufficiently concerned about the problem to contact the customer and that the customer service team is on the job to resolve any issue that concerns customers. Depending how the complaint was presented, either one or a combination of the following actions are appro- priate: a verbal acknowledge or a written message (e-mail or letter).

• Explain in writing exactly how you will remedy the problem. Tell your customer what will be done to correct the problem and when he or she can expect full resolution.

Figure 7.1 Trigger and Calming Phrases

REMEMBER THIS

AVOID TRIGGER PHRASES USE CALMING PHRASES

“It’s our policy.” “Here’s what we can do …; Here’s how we can handle this … .” (Quote the policy; don’t call it “policy.”)

“I can’t; we don’t” “I can; we do”

“What seems to be the problem?” “How can I help?”

“I don’t know.” “I can find out.”

“You should have. …” “Let’s do this.” (Move to the future, not the past.)

“Why didn’t you. …” “I can see why. …”

“The only thing we can do. …” “The best option, I think, is. …”

“I don’t handle that; it’s not my job.” “Let’s find the right person to handle your concern.”

CHAPTER 7 Extreme Customers and Customer Retention 111

The Impact of Extreme Customers The following findings from a summary of several studies conducted by Technical Assistance Research Pro- grams, Inc., a company devoted to helping businesses measure and manage the customer experience, should be sobering to any customer service professional. These findings were collected and published by Bruce Temkin, who refers to himself as a customer experience transformist and consultant, in his Internet blog.

• About 50 percent of the time, customers who have a problem with a product or service are not likely to tell a company about it.

• Between 50 and 90 percent of these “silent critics” will probably take their future business to a competitor.

• Even when a customer does complain, one out of every two will not be thoroughly satisfied with the company’s efforts to solve the problem.

• Dissatisfied customers typically tell eight or more people when they have had an unsatisfactory experience with a company.

• Negative statements have twice the impact as positive information when customers finalize a purchasing decision.

• Word-of-mouth advertising is one of the most important factors influencing a customer’s decision to buy from a company.

• It costs between 2 and 20 times as much to win a new customer as it does to retain an existing customer who has a product or service complaint.3

PROACTIVE PROBLEM SOLVING If you can put your finger on a customer’s problem, you can solve it. Solving problems is one of the pri- mary goals of any customer service professional. When we think of problem solving, however, we generally think of dealing with problems after they arise—a sort of crisis-management approach. This is the traditional view of problem solving; however, to exceed customers’ expectations and provide excep- tional service, successful companies try to anticipate and solve problems before they occur. This process is called proactive problem solving. To effectively use this process, CSRs are on the lookout for customers who may be dissatisfied. This requires teamwork with and communication among departments and intentionally building a sensitivity to and awareness of both quiet customers and angry customers and how best to serve them.

Customer Self-Service Being proactive means taking the initiative by acting rather than reacting to events. When you solve cus- tomer problems proactively, you attempt to manage customer expectations and clarify incorrect assump- tions the customer may have about the product or service. As you work with your customers, try to anticipate any problems that could arise. For example, at the time of the sale, educate and inform buyers about extra costs and possible delays.

Customer self-service (CSS) is a popular pro- active approach in customer service that empowers customers to go to a company’s website and initiate most of the queries and functions normally handled by a call center, issues that might include reviewing account transactions, making payments, and investi- gating various company policies. CSS is not a substi- tute for person-to-person service options; rather, it offers customers a convenient alternative in response to their demands for responsive and reliable service.

In this way, companies encourage customers to acknowledge and address their own service issues rather than either avoid them or allow them to build to a boiling point. An attractive and informative website that is easy to use and accessible to custo- mers is a critical component of self-service. Used

3Bruce Temkin, “The Hoot Ratings Blog,” September 14, 2010, http://hootratings. com/blog/category/statistics/ accessed December 28, 2010.

WHAT DO YOU THINK 7.1

Have you personally ever complained to a business about its product or service? Was it handled to your satisfaction? Record your recollection of this situation in your journal.

112 PART 2 Essential Customer Service Skills

properly, a valuable website can act as a resource for customer “self help,” because customers like being able to find answers easily that they’re looking for, 24/7/365 within a single, accessible source. To ensure user-friendliness, websites should be de- signed simply and made intuitive for consumers to navigate. Figure 7.2 describes customer service

components that every business should incorporate into their websites, according to an article in INC magazine.4

One of the most important items self-service systems contain is an accurate and well-written knowledge base. The knowledge base is a database created and used by CSRs that contains information on how to resolve common service issues. When a customer submits a question about a service issue, the question goes to a live CSR, who responds to it, subsequently refines the response, and adds it to the computerized knowledge base for the benefit of everyone.

Businesses like self-service because it is a cost- effective way to provide 24/7/365 customer support. Customers similarly like self-service because they can find what they are looking for without delay (call waiting times to speak with an agent, email response lag time). It is an effective win-win pro- position for both entities.

MEASURING CUSTOMER SATISFACTION From cost control and customer retention to employee productivity and competitive intelligence, every business has its own unique set of objectives. One thing remains consistent—gaining insight into a customer’s needs and expectations is paramount to reaching those objectives. With customer acquisition

Figure 7.2

REMEMBER THIS

A Customer-Oriented Website

• Frequently asked questions (FAQ). A FAQ page is a place your customer can visit to find answers to the questions most often asked about your products, services, and business. Use FAQs to an- swer questions about your return or shipping policies or store hours, for example.

• Your contact information. Be sure to include either an e-mail address, toll-free telephone number, or mailing address for your business on every page. Make this information effortless to find.

• A customer feedback form. Provide an online form that your customers can fill out with specific questions they didn’t find in the FAQ. Make sure that you assign a staff member to respond promptly to any queries several times a day.

• A live chat. One of chat’s great advantages is that reps and customers can literally be on the same page. Customer service chats can give reps the chance to either “push” Web pages (by including links in their chat messages) or actually take over the customer’s browser—with his or her permis- sion. Both can be effective ways to give customers targeted information about products and services.

• An online customer forum. Online forums pro- vide an environment where customers can quickly respond to each others’ questions. The answers customers give each other are often better than answers from company staff. Often, you can learn of problems with your products quickly if you monitor postings.

SOURCE: “How to Provide Customer Service Online” INC, http://www.inc .com/guides/cust_self/20909.html accessed December 29, 2010.

WHAT DO YOU THINK 7.2

When you access a company website, which website features do you find helpful and use the most? List those features in your journal.

4 “How Can We Increase Customer Retention While Reducing Service Costs?”, http://www.destinationcrm.com/Articles/Older-Articles/Experts-on-Call/How-Can- We-Increase-Customer-Retention-While-Reducing-Service-Costs-44326.aspx accessed January 20, 2011.

CHAPTER 7 Extreme Customers and Customer Retention 113

costs high and getting higher, customer defection is a serious burden to a company’s bottom line. Measuring customer satisfaction is a useful proactive approach for all customers—especially the quiet and angry ones. Customer satisfaction is the mental state that customers have about a company and its products or services when their expectations have been met or exceeded. Most of the time, customer satisfaction leads to customer loyalty and product repurchase.

Many companies believe that, after years of working closely with customers, they know what their customers want. Not until some of these companies face a customer service obstacle do they think about spending the necessary money to solicit customer feedback or to hire someone to monitor customer comments, complaints, and compliments from social media websites. This is a tragic “too little, too late” approach to customer service.

Customer feedback—formal and informal, solicited or voluntary—is one of the major forces in developing quality standards that helps prevent customer dissatisfaction and possible defection. The resulting data from surveys should serve as a compass to guide the development of products and customization of service offerings to meet identified customer issues and needs.

One type of survey strategy employed by confi- dent companies is an internal survey. A customer- oriented internal survey is conducted as a way of “walking in the customer’s shoes.” Managers and staff complete the same questionnaire as the clientele and answer the questions the way they predict customers will answer them. Customers are asked how they would rate the company’s performance rather than how satisfied they are with the company.

Survey strategists then measure the gaps and share the results with managers and staff.

Feedback Sources There are few activities as important as finding out what your customers want for products and what they think of your service performance and current offer- ings. Fortunately, businesses can use a variety of prac- tical and available resources to get customer feedback.

• Employees An organization’s frontline employees are those who interact the most with customers. On a regular basis, ask employees and CSRs about products and services that customers are asking for and what issues they complain about the most.

• Social media feedback Social media has become a customer-driven feedback platform that is easily accessible to anyone with Internet access. Media websites, such as Facebook, Twitter, and online customer forums, open doors for organizations to increase their brand awareness and facilitate conversations that take account of concerns, complaints, compliments, and suggestions between and among their customers.

• Comment cards One of the best ways to find out what customers want is to ask them. Provide brief comment cards on which customers can answer simple questions such as “Were you satisfied with our services?” and “Are there any services you would like to see that don’t exist?”

CUSTOMER SERVICE TIP

Surveys should not be designed to tell you

what you want to hear but rather what

you need to hear.

What are some advantages to customers when they provide service feedback to a business?

Jo hn

Kw an /S hu

tt er st o ck .c o m

114 PART 2 Essential Customer Service Skills

• Competition Ask people who shop at your competitors the simple question, “What is the competition offering that we could offer to serve your needs better?”

• Documentation and records Using inventory records and sales receipts, companies can take note of what customers are buying and not buying. If the data are captured on software (CRM, spreadsheet, database), they can be charted and studied to determine buying trends.

• Mail surveys Many people are willing to fill out and return feedback forms, especially if they get something of value in return. For example, offer survey respondents a coupon if they complete the survey form (online or via mail) by a certain date.

• Telephone surveys Hire summer students or part- time workers for a few days every few months or so to conduct random telephone surveys.

The Mystery Shopper Although many companies spend significant amounts of money on training their employees, few businesses reinforce the training with a monitoring program. One way that companies can improve the level of customer service is through mystery-shopping pro- grams. A mystery shopper is a third-party person who anonymously and objectively evaluates a business for the purpose of analyzing customer service, product quality, store presentation, and other elements of the overall customer experience. Known as “undercover customers,” these shoppers visit every type of business

from restaurants to retail stores, movie theatres, hair salons, banks, and hotels.

Companies use mystery-shopping services for an assortment of reasons. Some managers believe it is a way to resolve potential problem situations before they reach higher-level executives. Other companies establish corporate monitoring programs to observe routine operations that ensure consistency. In still other instances, absentee owners monitor the actions of staff members who play an integral part in the success or failure of the business.

These evaluators follow specific instructions during their visits, complete written reports after leaving the store, and work with management to identify the strengths and weaknesses of the busi- ness. Usually, the mystery shopper prepares a final onsite visit report that outlines his or her shopping experience.

Mystery shoppers look at the overall task as though through the eyes of the business owner. They perform a variety of activities such as unan- nounced onsite visits to verify the proper handling of transactions and merchandise. They make ran- dom phone calls to a business to report how inqui- ries are handled, along with evaluations of websites, chats, and e-mail responses. Mystery shoppers are commonly asked to shop a client’s competitor so the client can compare its operation to others.

The use of mystery shoppers provides managers and employees with an unbiased evaluation of their operation’s quality, service, cleanliness, and value. The general goal of using a mystery shopper is to help in improving productivity, efficiency, and profitability for the company. Specifically, however, smart businesses use the information to reward good employees, identify training deficiencies, and make store improvements in an effort to retain loyal customers.

Feedback Tools Companies solicit customer opinions through a vari- ety of ways—Web-based surveys, social media web- sites, mailed surveys, telephone interviews, comment cards, focus groups, and feedback forms enclosed with finished jobs. The obvious goal of most customerWhy are more retail businesses using mystery shoppers?

A P Ph o to /T ed

S. W ar re n

CHAPTER 7 Extreme Customers and Customer Retention 115

feedback is to evaluate how happy customers are with service, product quality, delivery, and overall experience.

Company-developed satisfaction measurement questions typically include items like these:

1. Overall, how satisfied are you with (brand name)?

2. Would you recommend (brand name)?

3. Do you intend to repurchase (brand name)? 5

People who create survey instruments struggle with the issue of how to measure service quality. Perhaps the most widely used set of measurements is based on five dimensions that are most important regardless of the service industry. These dimensions are as follows:

1. Physical appearance: the attractiveness of physical facilities, website, personnel, and communication materials.

2. Reliability: the ability to perform the promised service dependably and accurately.

3. Responsiveness: the willingness to assist cus- tomers and provide prompt efficient service.

4. Assurance: the knowledge and courtesy of employees and their ability to convey trust and confidence.

5. Empathy: the caring, individualized attention a business provides its customers.

The benefits of developing a meaningful survey and using an “ask the customer” approach are to

• Identify unhappy customers. The information gathered could signal customer relationships that are in jeopardy. This is important because, unfortunately, most dissatisfied clients ultimately walk away and either never tell companies why, or, in some cases, do so after unpleasant confrontations.

• Pinpoint the products and services that customers

want and need. Surveying customers is a great way to identify new business opportunities and

to assess what customers think you offer. In many cases, customers may not be fully aware of all the products and services you offer.

• Solidify customer relationships. The act of asking customers their opinions shows that they matter. For example, customers may love your product but be annoyed by minor incidents such as how they are treated by the receptionist or the way a finished product is packaged. Companies may not be aware of these issues; but once brought to the surface they can be addressed and corrected.

When developing customer-satisfaction feed- back tools, consider measuring the right issues from the numerous customer-satisfaction attributes listed in Figure 7.3. Remember to refrain from using the word “survey.” Few people want to participate in a survey; however, many are willing to give feedback.

A company-initiated customer response system should include comment cards, post-episodic surveys, and other methods described below.

Figure 7.3

REMEMBER THIS

Measuring Customer Satisfaction

• Ability to meet deadlines and on-time delivery

• Accurate invoice amounts

• Clear and helpful quotes, estimates, and proposals

• Communication of changes in delivery or back- order situations

• Follow-through on commitments

• Overall value, quality, and range of products and services

• Presence of competent employees and helpful CSRs before and after the sale

• Price

• Problem-resolution approach

• Prompt shipments that match orders and specifications5“Customer Surveys,” Pure Survey, http://www.survey.co.za/customer.asp

accessed January 10, 2011.

116 PART 2 Essential Customer Service Skills

Comment Cards Hand the card to customers at the closing stage of the transaction. Ask customers to please provide their thoughts, as your company always wants to know how well customer needs are met.

Post-episodic Surveys A post-episodic survey gathers information from customers after they have completed a business transaction, such as opening a new account or getting a car serviced at a dealership. Essentially, this is a satisfaction survey dealing with just one service episode. Brief surveys are usually conducted by phone within 24 to 48 hours of the transaction.

Other Methods Electronic surveys, in-store shop- per surveys, post CSR call questionnaires, and on- site interviews can also be effective. In addition, create a forum for CSRs to provide anecdotal, sub- jective feedback from customers about a product’s features, functionality, and pricing.

Interpreting Customer Feedback When customers stop buying from a business, it is important to ask why. Certain responses to this question can help you deal effectively with these likely issues:

• The quality of merchandise

• The quality of service

• An employee’s lack of courtesy

• A mishandled complaint

• An invoice or billing problem

These concerns are problematic and compel companies to take action immediately. Further, when customers expand their responses by saying that they informed the company about the problem before they stopped purchasing, immediate action is even more important.

Following are four additional issues companies must be aware of prior to interpreting and acting on customer feedback:

1. Use thorough data-gathering and analysis tech- niques before acting on complaints. Often, a company will make a change based on feedback

from only one or two customers. That type of limited feedback is called anecdotal information and does not necessarily represent a trend.

2. Do not spend a lot of time, energy, and money gathering complaint data and then do nothing with

it. This is perhaps the biggest error organizations can make when handling customer feedback. Use the information to improve the areas that showed customer concern.

3. Do not take feedback results personally. The fact is, surveys invite customers to criticize. Custo- mers who complain the most and the loudest are really your best customers.

4. Inform customers about the impact their feedback has had on the way issues will be addressed.

Clients who provide feedback appreciate the same in return. When companies that gather customer data research fail to provide this feedback, they lose credibility with consumers.

Many service-oriented businesses use customer feedback in a different way. In these companies, the object is to uncover everything that is going right. Managers are always on the lookout for “hero stories”—examples of employees going the extra mile to deliver delight and wow experiences. Such feed- back becomes the basis for ongoing recognition and celebration. Employees see themselves as winners because someone is always being recognized as a result of customer feedback.

Benefits to the Customer Satisfaction, like quality, is in the eye of the beholder, so the best way to measure customer service satisfac- tion is to ask your customers. When customers tell you explicitly what you are doing right or wrong, and then follow up with suggestions as to how you can

Ethics / Choices What would you say to a colleague who wanted

to put up in your department a cartoon customers

could see that says, “The Complaint Department

is in the basement”? Why might this quip be

offensive to customers?

CHAPTER 7 Extreme Customers and Customer Retention 117

improve critical areas of your business, the infor- mation is precise and useful. This process benefits everyone—customers, CSRs, and the organization.

Customer feedback can help companies increase service quality, innovation, and most important, cus- tomer retention. As noted in a recent online article, surveys should meet the following criteria:

• To find and act on the issues which lead to inno- vation, employee or customer turnover, or other key operational outcomes.

• To motivate, guide change efforts, and identify the most promising opportunities for improvement.

• To record a baseline from which progress can be measured.

• To create a consensus on priorities or issues to be dealt with.

• To provide a two-way communication with employees or customers.6

It is true that you cannot change what you do not measure, understand, hear, and acknowledge. Customer-focused measurements are needed be- cause they explain reasons for lost sales, retention problems, time-consuming and costly complaints, and cost redundancies. Without measurable perfor- mance standards, employees are left to guess what good service is. When that happens, customers become disappointed. The following are some common-sense examples of measurable customer service practices that good companies implement:

• Answer telephones by the third ring.

• Serve hot food at a temperature of at least 140 degrees.

• Smile and greet all guests within 10 feet of you.

• Respond to each shopper, so that he or she does not stand in line more than two minutes.

• Offer bellman or concierge service to every hotel guest.

• Speak professionally to clients and avoid the use of slang expressions.

CUSTOMER RETENTION Why would a company want to turn an angry cus- tomer into a loyal supporter? Is it worth the time and general hassle to deal with intense complainers like these customers? One very significant reason is because if you satisfy that extreme customer completely, then he or she may well become your best ally and willingly refer others your way. You have indeed gone that extra mile customers seek.

Customer retention refers to a strategy with the purpose of doing whatever it takes (legally and within reason) to keep a company’s current custo- mers on a long-term basis. As noted earlier in this chapter, HP has done an astonishing job at growing its business and keeping customers via smart reten- tion strategies. To be sure, it warrants more than “the customer is always right” rhetoric to satisfy to- day’s savvy customers. Customers are not always right, but they always have feelings—sometimes intense, other times barely perceptible—when they make purchases or engage in business transactions.

Especially in a struggling economy, the en- during value of existing customers is considerable for any organization. When a company loses a cus- tomer, it does not lose one sale but a lifetime oppor- tunity of profitability with that individual. The question becomes, “What could that customer have been worth?” To determine the average lifetime value of customers, first estimate how much they will spend with your company on an annual basis and multiply it by the number of years they could potentially use your products and services. For

WHAT DO YOU THINK 7.3

What methods do you prefer using to give companies feedback on service and products? Record these in your journal.

6 “Employee Surveys, Interviews, and other Data Tools,” Toolpack, http://www .toolpack.com/surveys.html accessed January 11, 2011.

118 PART 2 Essential Customer Service Skills

instance, if an average customer spends $100 a month, 12 months a year, for 10 years, their average lifetime value is $12,000. Now add on the value of all the new customers that your loyal customer will refer to your company. It is easy to see how increasing customer retention and loyalty translates into huge increases in profitability and long life to any company.

Though there are many types of customer retention strategies currently used in business,

Marketing Wizdom’s website affirms that the easiest way to grow your customers is not to lose them in the first place. Additional retention strategies they suggest are described in Figure 7.4.

WRAPPING UP When companies make a serious attempt to re- solve conflict as part of their overall commitment to promote customer retention and satisfaction, they make forward-thinking efforts to stay in business and keep customers loyal. Doing this well requires service professionals to listen attentively and adapt service processes to the concerns and needs of extreme customers, that is, profoundly quiet and vocal customers. These efforts also require that CSRs implement deliberate customer retention strategies and continue to measure customer satisfaction through surveys and other feedback mechanisms. These skills require creative training, monitoring, and affirmation, all topics found in Chapter 8: Managing Customer Service.

Figure 7.4 Customer Retention Strategies

REMEMBER THIS

Sell and then sell again So many businesses do an excellent job of making the initial sale, then drop the ball and get complacent and ignore the customer. On each service encounter, thank customers and remind them again why they’ve made the right decision to do business with you.

Bring back the “lost sheep” Reactivating customers who already know you and your product is one of the easiest, quickest ways to increase your revenues. Finding out why they’re no lon- ger buying, overcoming their objections, and demonstrating that you still value and respect them will lead to loyal customers.

Frequent Communications Calendar

Use a programmed sequence of communication, such as letters, events, phone calls, thank-you notes, special offers, and cards or notes with a personal touch. This should occur automatically at defined points in the pre-sale, sale, and post- sale process. Communication such as this acknowledges customers and keeps them informed so they want to come back again and again.

Product or service integrity Long-term success and customer retention belongs to those who do not take ethical shortcuts. Customers will be attracted to you if you are open and honest with them, care for them, take a genuine interest in them, don’t let them down, and practice what you preach.

SOURCE: http://marketingwizdom.com/strategies/retention-strategies accessed December 29, 2010.

WHAT DO YOU THINK 7.4

Is there a company that has seriously pursued you to be a long-term customer? As a result, do you buy more products from them and are you loyal to them? Record your experiences in your journal.

CHAPTER 7 Extreme Customers and Customer Retention 119

SUMMARY

• CSRs need special skills to deal with extreme custo- mers, customers who are profoundly silent or vocal.

• Proactive problem solving means anticipating and solving problems before they occur.

• Understanding and recognizing customer emotions as well as handling their complaints fairly can help

bring the conflict to a satisfactory resolution for both sides.

• The goal of most customer feedback is to evaluate customer satisfaction with service, product quality, delivery, and overall experience.

• Customer retention strategies are intended to keep a company’s current customers buying from them on a long-term basis.

FOCUS ON. . . BEST PRACTICES

USAA

In the insurance industry, few companies are highly

regarded by their customers. That is why it is an honor

for one company to be singled out as valued and

respected by its customers as one that encourages

near perfect customer retention. According to an

article in Business Week, USAA, a private company with

$68.3 billion in assets, has unrivaled staying power

with its customer base with a client retention rate of

97.8 percent!

Based on a recent Forrester Research customer

advocacy rankings survey of more than 4,500 consu-

mers, USAA topped the rankings. In other words, the

perception on the part of consumers is that this financial

services firm does what is best for its customers, not just

the firm’s own bottom line.

Forrester Research Vice President and Principal

Analyst Bill Doyle commented, “Each year, our data

shows that customers who rate their firms high on

customer advocacy are more likely to consider their

firms for additional products. Customers who rate their

firms low on customer advocacy are most likely to say

they intend to switch firms in the next year.” USAA is a

company that has sincerely made retaining its customer

base a cornerstone of its success.

SOURCES: http://www.forrester.com/ER/Press/Release/0,1769,1322,00.html and http://www.businessweek.com/magazine/content/10_09/b4168040782858.htm accessed January 20, 2011.

120 PART 2 Essential Customer Service Skills

KEY TERMS

customer retention customer satisfaction customer self-service (CSS)

knowledge base mystery shopper post-episodic survey

proactive problem solving service recovery softening techniques

CRITICAL THINKING

1. Think of a time when you or someone you know walked away from a business rather than staying to complain about its service or products. Ex- plain why the situation was handled this way.

2. In what ways is it more productive for CSRs to use proactive problem solving when dealing with customers?

3. Think of a time when you observed an angry customer at a grocery store, retail outlet, or bank. Describe the behaviors of the person you observed. How, in your opinion, could this

anger have been avoided? Once it occurred, how should it have been handed by a service professional?

4. What companies do you buy from that, like USAA, make it a practice to retain customers? What actions do these companies take to retain you as a loyal customer?

5. If you were designing the best feedback survey for the following businesses, which type would you create and why? For a car repair shop? For a four-star hotel? For a hair and nail salon?

WHAT DO YOU THINK NOW?

Project 7.1 Assume you are doing a classroom presentation on customer retention strategies. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some service attitudes and practices that promote retaining custo- mers? What service issues must be carefully addressed by CSRs to retain customers over a long period of time? Which skills should CSRs demonstrate that keep customers returning for more products? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 7.2 Customer Service Survey Create a 10- to 15-question customer service feedback survey for an industry or a company of your choice. Research several websites and locate sample customer service survey questions you might use as guides in completing this assignment.

CHAPTER 7 Extreme Customers and Customer Retention 121

COMMUNICATION SKILLS AT WORK

Project 7.3 Handling Emotions Form a group of 3-4 people and pool your ideas to respond to the following four emotionally charged situations. Describe how your group might handle each situation and why each approach is the right one to take. Role play each situation in a profes- sional manner. As an alternative, follow your instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

1. A customer throws a product on the counter and says, “I want my money back now!”

2. A customer attacks your personal integrity and you can feel your anger ready to erupt.

3. A customer says, “I’ll never do business with you again!”

4. A customer says, “You have done this completely wrong. You are incompetent. I want to see your supervisor immediately so I can have you fired.”

DECISION MAKING AT WORK

Project 7.4 CSR Reaction to Customer Complaints Cliff, a fellow CSR, is noticeably upset at work this morning. Yesterday, work was incredibly difficult for him because it seemed he had to deal with the worst of the worst customer complaints. Today, Cliff has confided in you that, after talking with his wife last night, he is thinking about quitting. According to Cliff, he doesn’t think “em- ployees should be expected to take whatever the customer doles out.” You are aware that Cliff has other things going on in his life—most notably, his aging mother has recently moved in with Cliff and his family.

1. If you were having a private conversation with Cliff, what would you say to try and calm him down so that he can approach the situation rationally?

2. What do you think is really behind Cliff’s desire to quit his job?

CASE STUDY

Project 7.5 “If There’s a Rule, I’ll Follow It” Carson, a utility company CSR, recently experienced a very frustrating civil brush with the law concerning boundary lines between his and a neighbor’s property. As a conse- quence of this negative legal experience, everyone at work recognizes that Carson is a bit strict when it comes to following rules. However, the situation is beginning to affect his work because his narrow-minded attitude is antagonizing customers.

1. In what ways do situations in someone’s personal life spill over and affect service attitudes and behavior on the job? Describe some examples you’ve experienced.

2. If you were Carson’s supervisor, how would you explain to him the best way to interpret which rules he is required to follow to the letter and which ones allow him some flexibility? What steps would you take to help Carson overcome this attitude and get back on track with customers (i.e., simply talk to him, reprimand him, enroll him in training, or…)?

122 PART 2 Essential Customer Service Skills

CHAPTER 8 Managing Customer Service

You can’t expect your employees to exceed the expectations of your customers if you don’t exceed the employees’ expectations of management.

HOWARD SCHULTZ, CHAIRMAN, STARBUCKS COFFEE

OBJECTIVES

1. Explain the role of management in setting customer service standards.

2. Describe the working environment and basic duties for most customer service representative positions.

3. Identify reasons companies should train, empower, and reward service professionals.

4. Discuss the qualities that a successful customer service manager should possess.

123 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Enterprise Holdings

Chances are, the last time you rented a car from Enterprise Rent-A-Car, Alamo Rent A Car, or National Car Rentals, the service representative you dealt with was one of 68,000 people employed by Enter- prise Holdings. Management teams usually don’t bond easily with such a hefty work- force unless top management has inten- tionally created a special culture. The culture at Enterprise Holdings is illustrated in a statement made by Chairman and Chief Executive Officer Andrew C. Taylor: “Like many other companies, we have fought through difficult economic

conditions during the past several years. But thanks to our disciplined management and consistent focus on customer service and costs, we delivered strong results in fiscal 2010.”

Taylor further affirmed his organiza- tion’s commitment to empowerment by describing his employees in this way: “They deliver on our value proposition and work to exceed expectations every day, regardless of whether customers are renting for an hour, a day, a week, or longer. And if things go wrong, our employees are empowered to make it right.”

SOURCE: http://www.marketwire.com/press-release/Enterprise-Holdings-Announces-Fiscal-2010-Highlights-1328012.htm, accessed February 14, 2011.

SETTING SERVICE STANDARDS Thriving companies are made, not born. Setting standards, or benchmarks, in customer service doesn’t just happen; they are painstakingly conceived and delivered with care. As noted in Chapter 4, standards tell workers what is expected of them, in both the quality and quantity of their work. When organizations have a baseline of service performance standards, they deliver, regardless of who the cus- tomer is or how much he or she spends. Chapter 4 examined how customer service standards need to inform a company’s specific strategy for measuring its resources and analyzing its customer base. Stan- dards also need to be the basis for selecting, training, evaluating, rewarding, and retaining CSRs, the key personnel who will reach out to and, hopefully, retain that customer base.

Although every customer service operation is unique, all customer service centers need to measure the same key areas to gauge how well they are doing and to assess the specific areas they can improve

upon. Figure 8.1 explains how companies measure and calculate certain performance standards.

Effective customer service standards reflect an understanding of what customers need, want, and are willing to pay for, as well as what the competi- tion is offering. The best way to evaluate and write standards is by looking at service situations from the customer’s point of view. To have meaning, stan- dards must be stated in numbers and be measurable. Words such as excellent and superior are good moti- vators, but they need to be translated into specifics of performance. Here are some examples of measur- able standards in customer service:

• Ninety-eight percent of online customer inquiries will be answered live within five minutes of their receipt.

• Credits on product returns will be posted to customer accounts within 24 hours of receipt.

• Eighty percent of customer complaints involving $500 or less will achieve first-call resolution status.

124 PART 2 Essential Customer Service Skills

In flourishing companies with established service standards, the employees appear to be a cut above others because they are courteous and always seem to be smiling. In addition, service professionals in these companies never fail to ask whether they can be of assistance and always seem to be having a great deal of fun doing their jobs. These employees achieve a higher level of productivity for their employers. Were their employers just fortunate to have many happy and enthusiastic people apply for the jobs? As- suming that is not the case, how did it happen?

A customer-oriented business culture starts at the top and is consistently reinforced throughout all levels of management. Good managers are responsible for hiring employees with great attitudes and for making decisions that make the best use of human and other key organizational resources.

These managers must work very hard to create a workplace environment where service employees are satisfied. By the same token, to arrive at this core group of enthusiastic employees, companies have hired and fired numerous employees who did not meet their expectations.

Figure 8.1 Calculating Performance Standards

REMEMBER THIS

PERFORMANCE MEASUREMENT CALCULATION OF STANDARDS

Operations management Determined by calculating service statistics

• Cost per call or cost per minute

• Earnings per representative

Service level Determined by

• How well x percent of calls are answered in y seconds

• The percent of calls abandoned

CSR quality and productivity Determined by

• Quality—measured when monitoring calls and checking data accuracy

• Productivity—measured by tracking calls per hour and amount of dollars received per sale

Employee satisfaction Determined by calculating

• Employee retention rate

• Employee survey results

Customer satisfaction Determined by calculating

• Customer survey results

• First-contact resolution rates

• Customer retention rates

Ethics / Choices Suppose you work with someone who boasts

taking 100 customer calls per day when the stan-

dard among CSRs on most days is 75. In your

opinion, how does quantity of calls taken measure

against quality results? Further, what effect does

quantity have on repeat customer business?

CHAPTER 8 Managing Customer Service 125

UNDERSTANDING THE CSR POSITION

HELP WANTED. Individual of high intelli- gence and personal charm, capable of working under extreme pressure with frequent interrup- tions, resourceful and flexible, cheerful and even-tempered. The individual selected for this position must be completely trustworthy, as he or she will be entrusted with millions of dollars of the company’s business, and must be able to represent customers’ best interests with the company while remaining completely loyal to the company. Must be a self-starter with high initiative and an excellent team player. Equal opportunity employer, M/F. Apply Box 3845, Anytown, U.S.A.

As this fictitious, but only slightly exaggerated, classified ad suggests, most companies, as illus- trated by Enterprise Holdings, expect a great deal from their frontline service professionals. However, besides the usual benefits packages, many compa- nies don’t always give a great deal in return. Formal training is often sketchy, and the general company- wide view of CSRs as clerical workers is com- pounded by an opinion that they are also troublemakers.

The reason for this perception is that CSRs show up in other departments only when there is a customer service problem that cannot be handled. Mix these elements with the typical pressures of the customer service environment, and it is not hard to understand that problems of morale, stress, burnout, and turnover are common to the customer

service function in businesses. The following sec- tions examine current job information from the 2010-11 Occupational Outlook Handbook (OOH)

about a CSR’s working environment, education, cer- tifications and advancement.

Working Environment CSRs perform a variety of duties that require them to communicate effectively and to work under limited direct supervision, but in cooperation with others. Typically, they work inside offices or cubicles between 35 and 40 hours per week, with occasional overtime, night, and weekend hours. Often, they work under stress from angry or upset customers.

The OOH 2010-11 notes that, while some CSRs deal with customers face-to-face, others deal with customers exclusively over the phone in call centers, an environment that it describes in this way: “Those who work in call centers generally have their own workstations or cubicle spaces equipped with telephones, headsets, and computers.… Call centers may be crowded and noisy, and work may be repetitious and stressful, with little time between calls. Also, long periods spent sitting, typing, or looking at a computer screen may cause eye and muscle strain, backaches, headaches, and repetitive motion injuries.”1

The physical job requirements call for CSRs to sit for long periods while using their arms, hands, and fingers. They need to speak, hear, and see well to communicate service information to global custo- mers and produce written correspondence, chats, and e-mail messages.

Education, Certification, and Advancement How much education is desirable for CSRs? OOH 2010-2011 points out that “most customer service representative jobs require a high school diploma. However, because employers are demanding a more skilled workforce, some customer service jobs now require associate or bachelor’s degrees.

WHAT DO YOU THINK 8.1

Have you or anyone you know ever worked on a standards-based job? What is your opinion as to its effectiveness for the worker, the business, and the customer? Record your response in your journal.

1Customer Service Representatives, Occupational Outlook Handbook, 2010-11 Edition http://www.bls.gov/oco/ocos280.htm accessed January 27, 2011.

126 PART 2 Essential Customer Service Skills

High school and college level courses in compu- ters, English, or business are helpful in preparing for a job in customer service.”2

In addition to a formal education, earning a nationally recognized certificate is becoming the mark of professionals in many career fields. Certifi- cation is an effective way for a CSR to demonstrate commitment to professional development. The National Professional Certification in Customer Service, offered by the National Retail Federation (NRF) Foundation, is a credential that is recognized and valued by the customer service industry. Candi- dates achieve certification by successfully completing a seventy-five question, online assessment. The can- didate may take the assessment either at test sites located around the United States, or a company may arrange for the assessment to be administered provided that there is a proctor trained by the NRF Foundation. Candidates may prepare through courses, handbooks, and other materials provided by NRF.

Questions are based upon skill standards devel- oped by the NRF. These standards define both work-oriented skills and worker-oriented skills. Work-oriented skills are grouped under categories such as Learns About Products and Services, Occu- pational and Technical Knowledge, Assesses Custo- mers’ Needs, and Meets Customers’ Needs and Provides Ongoing Support. Worker-oriented skills include Reading, Writing, Speaking, Mathematics, Gathering and Analyzing Information, Making Decisions and Judgments, and many more. Some questions are posed using an audio recording, some through a video recording, and some have more than one correct answer. The candidate must determine the best answer for the problem presented.

The test is administered under strict conduct regulations, and any candidate who does not adhere to those regulations will be ejected from the assess- ment. Successful completion of the assessment results in certification that is effective for a three- year period. NRF requires that even the successful candidate must remain “in good standing” with their employer, school, or training program. Failure to do so may result in revocation of certification. NRF points out that a candidate who does well on the exam may not necessarily do well as a CSR. However, the test does demonstrate that the candidate who has passed possesses the knowledge and skills deemed by the industry as necessary for the performance of super- ior customer service.

Promotion opportunities for CSRs tend to be limited, however, this entry-level job is definitely enhanced with a nationally recognized certificate. It is also a good occupation that affords the oppor- tunity to learn solid business skills and often leads to administrative, sales, and other related positions within organizations.

How can you tell upon meeting and interviewing a person if he or she will be a good CSR?

2Ibid. 3http://www.nrffoundation.com/Training_Certification/Cert_Cust_Service.asp accessed February 17, 2011.

4Certification Handbook, NRF Foundation, 2008, pp. 16–20. http://www. nrffoundation.com/Training_Certification/Cert_Cust_Service.asp accessed February 18, 2011. 5Certification Handbook, NRF Foundation, 2008, pp. 10–12. http://www. nrffoundation.com/Training_Certification/Cert_Cust_Service.asp accessed February 18, 2011.

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RETAINING SERVICE PROFESSIONALS Employees working in customer service areas should be recognized and rewarded for their every- day efforts. Although they are often at the bottom of a company’s pay scale, CSRs’ contributions to an organization’s overall profits are invaluable. Customer service employees know they are valued and appreciated when companies train, empower, and reward them.

Training CSRs Training begins with the way in which an employer screens job applicants. With today’s new generation

of workers and exciting new attitudes about the role of customer service, training is taking on greater importance.

Companies that say they can’t afford the time or money to give their CSRs regular training sessions end up paying far more than they would have paid for the training itself. When companies make the investment to train their service employees beyond the initial training session, they show that they value them and their work. Usually the initial training session provides an overview of the company and its products, the computer and phone systems in use, and how to respond to typical service questions from customers.

Employees who are not trained to provide good customer service unfortunately find themselves frustrated in their attempts to deal with rude, diffi- cult, and irate customers. If, however, they are trained in ways to defuse complicated situations, there is a much greater chance that good workers will stay, because they are better prepared to handle the job.

Training Curriculum What should a curriculum that teaches good customer service skills look like? In essence, it should emphasize developing phone and interpersonal communication skills that respond effectively to customers and foster a teambuilding environment within the workplace. The curriculum should also include training on the latest customer care technologies, such as live interactive chats, intel- ligent e-mail response systems, telephone services, and robust self-service search engines. Finally, a criti- cal training goal is to make sure CSRs are knowledge- able about the company’s products. When employees are unable to answer a customer’s question about a product or service, credibility suffers and this can result in lost sales.

Training Methods People learn at different rates and through a variety of means, including classroom instruction, computerized skills assessment tutorials, on-the-job training, coaching, role–playing, and other instructional methods. The secret to effective learning is to match the delivery to the learner’s receptive style, provide enough hands-on training to

MAKE IT A HABIT

Stay Job Current

To be situation-ready and flexible at a mo-

ment’s notice, make it a practice to:

• understand and adapt quickly to technol-

ogy upgrades and new products,

• think on your feet in situations that intro-

duce perceived customer emergencies,

• work on your own professional develop-

ment to keep skills current—especially

in using technology and cutting-edge

communication devices.

WHAT DO YOU THINK 8.2

As a service professional, have you ever participated in any kind of training program? What did you find the most useful about the experience? What did you find the least useful? Record and explain your reactions in your journal.

128 PART 2 Essential Customer Service Skills

reinforce the concepts and, if needed, test to real business situations. For example, classroom training emphasizes facts that need learning, such as corporate policies and processes. Coaching, on the other hand, emphasizes practice, the critical learn by doing, that turns information into knowledge and then into practiced experience.

Role-playing, in which participants improvise realistic customer scenarios, is one of the most effec- tive methods for training CSRs. It helps them learn how to interact with customers and make sales. By acting out situations, employees learn how to eliminate on-the-job shyness, prevent intimidation, extract personal information from shoppers, handle irate customers, overcome objections, and share prod- uct knowledge. Good topics for role-playing include awkward customer scenarios and handling difficult customers.

Rehearsing in this way helps employees elimi- nate verbal fillers, those awkward “ums” and “you knows” that can creep into our speech when we are uncertain about what to say. However, role-playing is not the easiest type of training. Some employees are reluctant to participate because the thought of acting in front of an audience—even a tiny group— makes them nervous. To be effective, the training technique requires a safe learning environment, a sensitive facilitator, and dedicated time. The benefits gained from role-playing, however, are worth the time and effort, because they boost employee confi- dence and overall performance.

Empowering CSRs Empowerment is an enormous employee motiva- tional tool that can give a business the competitive edge it needs to survive. As discussed in Chapter 3, empowering employees gives them the authority to provide exceptional customer service. That means bending—sometimes breaking—the rules to achieve customer satisfaction.

Without empowered employees, it is difficult for service to reach the customer level. With little or no service, customers are not likely to return to a business. Management should give CSRs the authority to handle customer complaints and con- cerns on the spot and allow them to use that authority without fear of repercussion.

When managers do not empower or delegate responsibility for getting the job done, employees tend to react in some fairly predictable ways:

• Often, they become apathetic, developing a “so what?” attitude. Energy declines and productivity slows down.

• When people are unable to exercise their talents, those talents waste away. Without challenges, no new talents are acquired to move the organization forward.

• Employees who are not given responsibility hear the message, “You’re not good enough to take control of this job.” This leads to the employee being less moti- vated or less likely to take responsibility at a later date.

• When employees receive only limited responsibil- ity, they tend to break rules, be absent more often, or increasingly show up late for work.

How comfortable are you in using role-play to learn customer service approaches?

Ethics / Choices Suppose you overheard a co-worker say, “If you

need several layers of management to sign off

on most customer-related decisions, what’s the

point of having a customer service center where

CSRs are supposedly empowered?” What is your

reaction to this statement? Do you agree? Explain

your position.

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CHAPTER 8 Managing Customer Service 129

• Employees feel their hands are tied in the absence of managers, because no one is trained to think independently. This creates problems of succession and poses threats to the longevity of a company.

Rewarding CSRs Well-trained customer service employees who feel they are valuable members of the corporate team cre- ate the magic inside the business that keeps customers coming back. Customer service employees know they are valued when companies use positive reinforce- ment and public praise. Workers need to know that management notices and appreciates their contribu- tions. When this happens, it encourages similar be- havior among other CSRs, and at the same time, it reduces the need for employee turnover expenditures.

Unfortunately, top sales performers often earn sizable bonuses or expensive prizes, while top service performers are recognized on a much smaller scale, or receive no recognition at all. It is unwise for companies to send the message that service is less important than sales. Even small successes should be celebrated, because they give companies the op- portunity to recognize employees on a regular basis.

A recognition event doesn’t have to be extrava- gant, as depicted by Scottrade’s recognition Scratch- and-Win Cards program in the Best Practices feature at the end of the chapter. A pizza party, a small gift, a gift certificate, a balloon bouquet, or a special parking spot can make an employee feel recognized and appreciated. Regardless of the appre- ciation program a company uses, when another employee or manager observes service professionals performing one of the following noteworthy beha- viors, a verbal acknowledgement is a must:

• Demonstrating teamwork

• Offering to help someone

• Taking ownership of a problem

• Making a suggestion for cost savings

• Teaching someone something that improves results

• Going above and beyond the call of duty

• Providing excellent customer service

• Making a suggestion that increases productivity

• Finding a potential problem and fixing it

MANAGING A CUSTOMER SERVICE DEPARTMENT Some of the best managers in an organization are promoted up through the ranks. Good customer service managers are comfortable assigning tasks to CSRs because these managers know the job inside and out. They are good at facilitating cooperation be- tween departments as well as with customers because they’ve “been there, done that.” Valuable leaders of customer service departments know how to motivate and monitor CSRs, as well as how to resolve conflicts that inevitably arise in any organization.

Motivating CSRs It is no surprise that employees are more motivated to provide exceptional support when they know they will be encouraged, recognized, and rewarded, them- selves. A strong leader works diligently to understand and motivate workers. Customer service managers must be well organized and capable of helping the department organize itself to accomplish its goals. One of the strengths of a good leader is the ability to see a better future for the department than what currently exists. Managers who create an en- vironment that works for the customers and staff

WHAT DO YOU THINK 8.3

What motivates you to stay at a job and do it well? Is it money, pride, recognition among peers and management, or just a natural desire to do your best? Record these motivations in your journal.

CUSTOMER SERVICE TIP

Happy employees make happy customers.

130 PART 2 Essential Customer Service Skills

set the stage for service excellence. Figure 8.2 de- scribes five effective methods managers can use to motivate CSRs.

Monitoring CSRs Internally, managers need to watch out for attitudes among CSRs that paint the customer in a negative light. What may start out as harmless talk about cus- tomers can wind up becoming a company culture that pits CSRs against customers and can ultimately result in low customer retention. Two ways a manager can determine the quality of service reps’ customer relations are:

• Review e-mail for consistency and core values. Gather all e-mail and written correspondence from CSRs. Review them for grammar, misspellings, effective- ness of presentation, and politeness. Also, scan the

documents for common words and decide whether those are truly the most fitting words or statements to describe the company and its service culture.

• Monitor customer service calls. Listen in unobtru- sively to customer service calls. Pay attention to the tone and manner the CSR uses to discuss various situations with customers.

Resolving Conflicts Managers who never experience conflict on the job are rare. All workplaces suffer from conflict period- ically. To be good at resolving work-related con- flicts requires a great deal of practice. Interpersonal relationships with people at work may cause ten- sion that you are not aware of. For example, if someone who is normally upbeat and friendly to- ward you suddenly begins avoiding you, there is

Figure 8.2 Motivation Techniques

REMEMBER THIS

METHOD EXAMPLES

1. Managers generate a spirit of service by

• Encouraging laughter, humor, warm greetings, smiles, and compliments.

• Demonstrating belief in people through positive words of encouragement.

• Casually visiting with staff, seeking their input, and incorporating that information into observable actions.

2. Managers build trust by • Keeping people informed of change.

• Demonstrating flexibility and interest in the personal situations of employees.

• Sharing information about the organization.

• Defining boundaries and providing reasonable expectations for all workers.

3. Managers develop people by • Providing timely feedback through effective coaching.

• Adapting communication techniques based on the needs of each employee.

• Rewarding successes and addressing problems promptly.

4. Managers lead through example by

• Practicing the behaviors and ethics expected of frontline workers.

• Giving direction in a respectful manner.

• Listening attentively and responding to feedback from staff.

5. Managers stay focused on customer needs by

• Recognizing individuals for giving great customer service.

• Implementing employee suggestions that improve service.

CHAPTER 8 Managing Customer Service 131

probably a reason. If a co-worker is cheerful with everyone except you, chances are a conflict exists. In such instances, use your best communication skills to address the problem through the following nine-step process, based upon a Human Resource Management article on resolving conflicts:

1. Make an effort to determine whether there is, in fact, a problem.

2. If there is a problem, set up a private face-to-face meeting to discuss it with the other person.

3. In a “nonconfrontational manner,” explain what you think the problem is.

4. Ask for feedback while you are speaking.

5. Listen to the other person with an open mind.

6. Respect others’ opinions.

7. Attempt to determine the root cause of the problem.

8. Aim to work out a compromise that pleases both of you.

9. Find a way that both of you can walk away feeling like winners.6

The goal of conflict resolution is to reach a com- promise that both parties can accept. Regardless of the type of conflict managers may face, there are general

guidelines service professionals can follow to bring harmony back into the workplace. To review the rules for disagreeing diplomatically, refer to Figure 8.3.

Handling a difficult person requires skill, but more importantly, it requires courage and time as well. Most of us avoid conflict because we think we don’t have the time, energy, or emotional strength to deal effectively with a confrontation. Un- fortunately, when difficult people are ignored, they tend to repeat their bad behavior because it works for them. Being firm, assertive, and using the proper techniques will help defuse the situation by coping with it rather than withdrawing from it. Dealing with conflict in an effective, and most especially, a timely manner, is crucial to allowing personnel to have the time and energy to deal with customers.

WHAT DO YOU THINK 8.4

Describe the best manager you ever had. What traits made him or her stand out? Record your impressions in your journal.

6 “How to Resolve Conflicts—Without Offending Anyone,” Human Resource Management October 2, 2006 http://www.citeman.com/1032-how-to-resolve- conflicts-without-offending-anyone accessed January 25, 2011.

Figure 8.3 Rules for Disagreeing Diplomatically

REMEMBER THIS

RULES WHEN YOU SAY IT REALLY MEANS

Reflect your understanding of the other’s position or opinion.

“I feel, think, want, etc...” “I am listening to your opinion and take it into account before I state mine.”

Let the other person know you value him or her as a person, even though your opinions differ.

“I understand [appreciate, respect, see] how you feel that way.”

“I hear you and respect your opinion.”

State your position or opinion. “I feel [think, want]…” “I don’t agree, but I value you—so let’s exchange ideas comfortably, not as a contest for superiority.”

SOURCE: “How to Resolve Conflicts—Without Offending Anyone,” Human Resource Management October 2, 2006 http://www.citeman.com/ 1032-how-to-resolve-conflicts-without-offending-anyone, accessed January 25, 2011.

132 PART 2 Essential Customer Service Skills

WRAPPING UP Managing Customer Service completes the four- chapter study of Essential Customer Service Skills. Recognizing the importance of setting standards and then using trained (and sometimes certified) CSRs who can apply those standards helps managers direct combined efforts toward achieving successful cus- tomer satisfaction. Great managers train, empower, and reward CSRs to preserve their loyalty toward the company, its products, services, and customers. The final part of the textbook requires that the skills learned up to this point support the wide range of Communication Skills needed by CSRs on a daily basis and begins with a discussion of Communication Essentials.

SUMMARY

• Setting standards for performance that tell work- ers what is expected of them, both in quality and quantity of work, is a conscious effort and involves direction from customer service managers.

• Typically, a CSR works inside comfortable offices or cubicles between 35 and 40 hours per week, with some occasional overtime, night, and weekend work.

• Retaining CSRs is greatly enhanced when they experience ongoing training, are empowered to serve customers well, and are publically recognized and rewarded on the job.

• Good customer service managers generate a spirit of service, build trust, develop people, lead by example, and stay focused on customer needs.

FOCUS ON. . . BEST PRACTICES

Scottrade

When people make a sincere effort to treat everyone with

respect and try to do the right things right, the pathway

to success is sure to have fewer bumps. This approach is

Scottrade’s founder and CEO Rodger Riney’s philosophy,

which, according to his bio, “he reiterates throughout the

firm by making sure customers receive the best value and

associates’ dedicated work is rewarded.”

An example of a reward system used by this premier

stock trading company is the Scratch-and-Win Cards

Scottrade’s management team uses to recognize

associates for “doing the right things right.” These

on-the-spot awards are redeemed through the Scot-

trade online recognition platform and according to

Jane Wulf, Executive Director, Human Resources, “The

Scratch-and-Wins have been a huge success because

they have added an element of excitement and antici-

pation to the reward program.”

SOURCES: http://about.scottrade.com/who-we-are/founder-ceo-bio.html, accessed January 24, 2011 and Louise Anderson, “Turn Best Practices into Common Practices with On-the-Spot Recognition,” Anderson Performance Improvement, http://www.andersonperformance.com/napmBestPracticesCommon.php accessed January 27, 2011.

CHAPTER 8 Managing Customer Service 133

KEY TERMS

certification coaching

role-playing standards

CRITICAL THINKING

1. Why is it important for managers to use measurable customer service standards? Cite two examples of measurable standards you’ve followed in previous work experiences.

2. List the pros and cons of a call center work en- vironment for customer service representatives.

3. What is the incentive for companies like Enterprise to train, empower, and reward ser- vice professionals?

4. Name two recognition and reward programs you would like to participate in and describe what you think is effective about each one.

5. What skills do you possess that would make you an effective customer service manager? Describe in a short paragraph how you would apply your managerial talents in a customer service setting.

WHAT DO YOU THINK NOW?

Project 8.1 Assume you are doing a classroom presentation on managing customer service. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some service attitudes and practices that over time prepare you to become an effective customer service manager? What training or retraining can help a service professional to stay effective? What service and CSR issues do you believe are the most challenging to manage? Which communication skills should customer service managers demonstrate? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 8.2 Customer Service Certification Obtaining customer service certification testifies that you possess the skills necessary to respond to the challenges of customer service. Locate the National Retail Federa- tion Foundation website and learn the requirements needed to achieve certification. Study the work-oriented skills and the worker-oriented skills and have a class discus- sion about how these skills relate to your experience as a CSR.

COMMUNICATION SKILLS AT WORK

Project 8.3 Communicating Standards to Customers You and two other employees have been asked to put together a chart that will be used to train new CSRs in performance standards, accuracy, and production at your

134 PART 2 Essential Customer Service Skills

company. Using the information from this chapter and other sources you locate relative to this project, agree upon and recommend a standard (method or action) that a CSR can demonstrate to perform each listed characteristic. As an alternative, follow your instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

1. Attitude

2. Reliability

3. Empathy

4. Exceptional service

DECISION MAKING AT WORK

Project 8.4 Career Advancement or Job Security? At a recent customer service conference, there was a debate among customer service managers as to whether it is best to hire a CSR who is more concerned with job security or one who is more interested in career advancement. Be prepared to partici- pate on either side of the debate by preparing a defense for the following two statements.

1. Defend: When hiring a CSR, it is better to offer stability and longevity on the job over any other factor. Doing so will result in finding a better employee.

2. Defend: When hiring a CSR, it is better to offer advancement through a career path and promotion opportunities over any other factor. Doing so will result in finding a better employee.

CASE STUDY

Project 8.5 Cost of Nonservice A woman was mistreated by a salesperson in a store where she had been shopping once a week for three years. As a result of the poor service, she began shopping elsewhere. Twelve years later she returned to the store and told the owner what had happened. He listened intently, apologized, and thanked her for coming back. Back in his office, he estimated that if the woman had spent only $25 a week in his store, he would have had $15,600 additional revenue over the past 12 years. He had lost her business to nonservice.

1. In your judgment, to what extent does nonservice affect businesses today?

2. What methods can companies use to prevent one incident of poor service from causing substantial revenue loss?

CHAPTER 8 Managing Customer Service 135

ur ha

n/ Sh

ut te

rs to

o ut

hw es

t A

irl in

es C

o .

PART 3

Communication Skills

Chapter 9

Communication Essentials

Chapter 10

Customer-Focused Listening

Chapter 11

Nonverbal Communication, Dress, and Manners

Chapter 12

Telephone and Digital Communication

Teresa Laraba, Senior Vice President of Customer Services, Southwest Airlines, Dallas Texas

Responsible for customer service activities, Teresa Laraba joined Southwest Airlines 27 years ago. She started out as a front- line customer service agent at the airport and has always been in a customer service role. Southwest Airlines currently operates six Customer Support and Services Centers located in Albuquerque, Chicago, Houston, Phoenix, Oklahoma City, and San Antonio.

136 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

At Southwest Airlines, we take a customer service approach and tone in everything we do. We feel it is not only how you treat our external customers, but also how you treat internal customers. A most recent example is that we are scheduling meetings with our pilot groups to talk about what their role is as cus- tomer service representatives for Southwest Airlines. We attempt to do that with every employee group because we believe everyone in our organization serves customers and has an expectation and respon- sibility to do it well.

n1 In your opinion, what are some of Southwest Airlines leading challenges in customer service?

One of the biggest challenges for us is that, as we grow with potential acquisitions, we must make sure there is the desire in all 35,000 employees to deliver great customer service. Our large size and geographic spread contribute to that challenge.

A second challenge continues to be to use social media in the best way to validate the Southwest Air- lines brand. We are proud to be one of the first air- lines with a corporate blog and are very active on Facebook and Twitter as well. We have folks who monitor those communications 24/7. Something we are also very proud of is that we don’t have to try hard to get important feedback from our customers. In 2010, we generated 69,374 external commendations.

n2 How does Southwest Airlines deal with customer service complaints?

I would say that how we handle them depends on the situation, because customer service is very much about perception. If we have a customer who walks away with a bad taste, we will always apologize if we left him or her feeling that way. We are realistic and recognize that every day there is an opportunity for that to happen with 35,000 employees. Somebody is not going to have a good day and may come across as rushed or rude. We never tell our customers that they shouldn’t feel offended. We always thank them for the feedback, thank them for letting us go back and have a conversation with an employee who may

have said something inappropriate or was perhaps short with the customer.

n3 What advice would you offer customer service representatives?

I think it depends on the representative’s role with customers and the employees’ comfort level. If you have employees who are going to do most of their communication over the phone, as reservations employees for example, we say that we need to hear the “smile in their voice,” but we are really looking for employees who enjoy those conversations with customers. If, on the other hand, you are looking for employees to serve customers face-to-face, then you want their communication style to use positive and encouraging body language while they use their voice.

Empowerment is another skill we are talking to our new hires about. Today in the airline industry, you are not dealing with just “fun” customer service situations; you may potentially be trying to diffuse a situation on an airplane at 30,000 feet in a metal tube. So, you want a flight attendant, for instance, who knows how to calm people down or to success- fully talk through the situation. I guess you could say that our employees need to do a lot of conflict reso- lution on the fly.

I cannot emphasize enough that we at Southwest do our best to hire the right person up front. We also know that if you do not treat employees or prospec- tive employees with the same level of service as you treat your customers, then you are really missing the mark, because they are also your customers. Pro- spective employees may not work for you, but they fly on you.

FIRST IMPRESSIONS

What qualities and skills does Teresa Laraba look for in prospective customer service employees? Record your impressions in your journal.

137 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

CHAPTER 9 Communication Essentials

We are what we repeatedly do. Excellence is not an act but a habit.

ARISTOTLE, GREEK PHILOSOPHER

OBJECTIVES

1. Explain each of the elements in the communication process.

2. Identify the behaviors of people who communicate using different communication styles.

3. Compose examples of open, probing, closed, alternative choice, leading, and direct questions.

4. Know the fundamentals of business writing.

138 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Avon

If consumers were to think of skin care pro- ducts they and their friends have used over the years, several brands would come to mind, but Avon would surely be listed among them. Today Avon is global, directly selling to customers in over 100 countries. As a corpo- ration that employs over 5 million indepen- dent Avon representatives, the importance the company places on effective communi- cation fundamentals is especially high.

What makes the communication process with customers unique when com- pared to other cosmetic companies is that Avon representatives contact their custo- mers directly and on an ongoing basis. They use brochures to pre-sell and then follow-up

with customers using e-mail, phone, notes, and other methods during the two-week sales campaign.

In describing the uniqueness of Avon’s communication approach, its website states that “At Avon, the direct part of direct selling also refers to the personal compo- nent of this sales channel; it’s about build- ing relationships with people and offering them a high level of service and personal attention.” This means that all forms and modalities of communication must be used well and with regularity in order to ensure the high level of service and personal attention that Avon customers have enjoyed for over 125 years.

SOURCE: http://www.avoncompany.com/earningsopportunity/directselling.html, accessed January 7, 2011.

THE BASICS OF COMMUNICATION Communication is important to business. According to Rick Schaefer’s article entitled “Effective Com- munication in the Workplace,” “58 percent of effec- tive communication is carried in our body language, 35 percent in our voice inflection and tone, and only 7 percent in our actual words.” 1 In every point of con- tact with customers,service professionalscommunicate something. As more contact is made with an organiza- tion, customers combine their perceptions into an overall impression of the company’s customer service.

The truth is, great service requires great com- munication skills. Think of a time you experienced poor customer service. What made the service poor? Did a failure to communicate contribute to the

problem? Were you, as a customer, a part of that failure? For example:

• If you didn’t get what you wanted, did you say so?

• If your expectations were not met, did you com- municate that to the service provider?

• If you perceived that you were being treated rudely, did you discuss the service provider’s behavior toward you?

In general, successful communication is evidenced by a shared understanding between two or more persons. This begins with using the elements in the communication process effectively and responsibly.

The Communication Process Understanding the communication process can help CSRs become better communicators. The process shows that each communication event, or customer interaction, is unique—that one mind is different

1Rick Schaefer, “Effective Communication in the Workplace,” Ezine@rticles, March 29, 2010, http://ezinearticles.com/?Effective-Communication-in-the-Work- place&id=4017537 accessed January 7, 2011.

CHAPTER 9 Communication Essentials 139

from another mind. Unless the words or other sig- nals used to send a message have the same meaning or frame of reference, communication differs in some way in the minds of the sender and receiver.

In general, the human communication process follows this pattern: first, a message arrives from a sender, and the senses pick up the message and relay it to the receiver. This is called the encoding process. Next, the receiver filters the message and gives it a unique meaning. The meaning triggers a response, and the receiver returns (by voice, writing, or gestures) the shared understanding of the message to the sender. This is the decoding process. Finally, a message transmitted back to the original sender is called feedback. Refer to the diagram in Figure 9.1. This cycle may continue as long as the people involved want to communicate.

A recent article in Mind Tools states that, in order for communication to be successful, “you must understand what your message is, what audience you are sending it to, and how it will be perceived. You must also weigh-in the circumstances

surrounding your communications, such as situational and cultural context.”2 To illustrate that process, the communication model contains six elements: sender, receiver, message, channel, shared under- standing, and feedback. The model, an expansion of David Berlo’s 1960 Sender-Message-Channel- Receiver model, endeavors to explain what happens when we communicate successfully.

1. Sender The sender has an idea to share with another person. That idea is in the sender’s mind and the goal is to get it into the receiver’s mind.

2. Receiver The receiver is the person or persons with whom the sender is trying to communicate. After the receiver hears the message, feedback is sent to the sender.

3. Message The message contains more than words. It also encompasses a combination of feelings, attitudes, facial and body gestures, and other unique personality traits.

4. Channel This refers to the medium through which a message is transmitted to its intended audience. Broadly speaking, for customer ser- vice, two effective channels include print media (letters, e-mails, web pages) and broadcast media (phone, personal conversations, chats, meetings).

5. Shared understanding The degree to which a receiver understands what a sender is trying to communicate depends on human and person- ality factors involving similarities and differ- ences between the communicators and any previous perceptions each may have relative the topic of discussion.

6. Feedback As previously mentioned, feedback is the receiver’s reaction sent back to the sender. Each of us has experienced from time to time the feeling, “He doesn’t have a clue what I’m talking about.” In most cases, we reach this conclusion by interpreting the verbal or nonverbal feedback the receiver is generating.

2Mind Tools, Introduction to Communication Skills: Why Communi- cations Skills Are So Important, http://www.mindtools.com/CommSkll/ CommunicationIntro.htm accessed January 25, 2011.

Figure 9.1

REMEMBER THIS

The Communication Process

2 Communication

Channel

1 Sender Encoding Process

4 Feedback

Message

3 Receiver Decoding Process

11 C e ng

ag e Le ar ni n g

140 PART 3 Communication Skills

Mixed Messages Even though people sincerely want to clearly communicate with each other, a mixed message may result. A mixed message is a single communi- cation that contains two meanings. One part of the message—usually the verbal part—is positive, while the other part of the message—usually the nonverbal component—contradicts the verbal portion and is negative. For example, a salesperson says, “Thank you” to a customer as she rings up the purchase, but does so in a hurried tone and with no eye contact. When the verbal portion and the nonverbal por- tion of a message contradict one another, the non- verbal portion is almost always believed. This is because nonverbal communication is perceived as less conscious, more honest, and harder for people to fake.

Organizations unintentionally send hundreds of mixed messages to customers every day. One example is company policies that claim to be intended for the convenience and protection of the customer, messages that some customers feel are actually designed to make life easier for managers and their employees. Procedures that require custo- mers to move from one workstation to another to get “taken care of” may provide assembly-line effi- ciency for the company, but what they communicate to the customer is quite different. When one person sees to our needs, it feels warm and caring. When we interact with many different people, we don’t feel nurtured and “taken care of”; instead, we feel processed.

COMMUNICATION STYLES Good communication skills—both verbal and written—require a high level of self-awareness and an ability to adapt to the situation. This means that you can make another person more comfort- able with you by selecting and emphasizing certain behaviors that fit your personality. The selection you make should help you respond naturally to an- other person’s communication style.3 In business and in our personal lives, we encounter and practice three basic communication styles: aggressive, pas- sive, and assertive. CSRs should make every effort

In what ways can people communicate mixed messages?

MAKE IT A HABIT

Service-Oriented Communication

Think of a time when you felt you were the

only customer the vendor had or when some-

one went the extra mile for you. Always

serve customers with that feeling in mind

and make a determined effort to:

• frame questions in a respectful manner,

• remain calm and centered, despite

communication challenges,

• take full responsibility for bringing

communication full-circle,

• set right any misunderstanding.

WHAT DO YOU THINK 9.1

Describe a recent experience you’ve had with another person where a mixed message muddled clear understanding and became frustrating to one or both of you. Record your experience in your journal.

3Tarun Paten, “Listen,” January 1, 2006, http://comwell.blogspot.com/ accessed January 5, 2011.

Pr o d ak sz yn /S hu

tt e rs to c k. c o m

CHAPTER 9 Communication Essentials 141

to become assertive communicators, but still ac- knowledge that customers will use all three styles.

Aggressive Communication A person who has an aggressive communication style is closed-minded, listens poorly, has difficulty seeing another person’s point of view, interrupts other people while they are talking, and tends to monopolize the conversation. Typically, an aggressive communica- tor feels he or she must win arguments at any cost.

Unfortunately, this communication style fosters resistance, defiance, and retaliation. It exacts a high price in personal and business relationships, especially when it comes to satisfying customers. Aggressive communicators express their thoughts and feelings in ways that violate or disregard the rights of others. They tend to:

• humiliate and dominate others,

• make choices for others,

• show a lack of respect for others’ rights,

• use sarcasm, insult others, and make unfair demands.4

Passive Communication People who communicate using a passive commu- nication style tend to be indirect and hesitant to say what is really on their minds. By avoiding or ignoring problems, passive communicators are likely to agree externally, while disagreeing internally. They often feel powerless in confrontational situations because they don’t like to make waves or upset anyone.

Passive communicators fail to express their feel- ings, thoughts, and beliefs, and so, typically give in to others. As a result, they allow others to make choices for them. In general, passive communicators:

• believe that other people are more important or more correct than they are,

• are concerned that they will anger someone if they express their true feelings,

• beat around the bush when trying to make a point,

• say nothing is wrong and then become resentful about the situation later.5

Assertive Communication A person who practices an assertive communication style tends to be an effective, active listener who states limits and expectations and does not label or judge people or events. By confronting problems at the time they happen, assertive communicators leave themselves open to negotiating, bargaining, and compromising in such a way that everyone involved wins.

The greatest advantage assertive communica- tors have is the ability to exercise their rights without denying the rights of others. Moreover, they express feelings honestly and directly, while practicing mutual respect for others. Assertive communicators state their message without being blunt or rude and consciously practice good eye contact, while using appropriate hand gestures and other suitable body language to make their point.

The assertive communication style is the one to strive for when serving customers. However, the reality is that very few people use only one com- munication style. For example, the aggressive style can be essential when a decision has to be made quickly or during an emergency or you know you

4http://www.au.af.mil/au/awc/awcgate/sba/comm_style.htm accessed January 25, 2011. 5Ibid.

In this room, which participants are using aggressive, passive, or assertive communication styles?

Bl en

d Im

ag e s/ G et ty

Im ag e s

142 PART 3 Communication Skills

are right and that fact is crucial to the outcome for both parties. The passive style also has its critical ap- plications, such as when an issue arises that is much more important to the customer’s happiness than to the business’s. In this case, passive communication on the CSR’s part may be the best option to keep the customer happy. The passive style may also be useful when emotions are running high, and it makes sense to take a break to calm down and regain perspective about the situation.6

Refer to Figure 9.2 for more information about behavior and nonverbal and verbal cues of each com- munication style.

COMMUNICATING WITH CUSTOMERS The Internet and self-service have reduced person- to-person communication to minutes and sometimes seconds. For CSRs to provide superior customer ser- vice in this fast-paced, competitive business world, they must be able to gather information appropriately by asking and answering questions. When working with global and diverse customers, how CSRs pose a question is often as important as what they ask.

Asking Questions Time and again, customers call with questions. To answer customers’ questions and address their needs, you should ask questions also. Typically, questioning others continues a discussion or pinpoints and clari- fies issues when gathering pertinent information.6Ibid.

Figure 9.2 Communication Styles

REMEMBER THIS

STYLE BEHAVIORS NONVERBAL CUES VERBAL CUES

Aggressive • Puts others down

• Has a know-it-all attitude

• Doesn’t show appreciation

• Is bossy

• Frowns

• Squints eyes critically

• Is critical

• Uses a loud tone of voice

• “You must (should, ought, or better)…”

• “Don’t ask why. Just do it.”

Passive • Sighs a lot

• Clams up when feeling badly treated

• Asks permission unnecessarily

• Complains instead of taking action

• Fidgets

• Smiles and nods in agreement

• Has slumped posture

• Speaks in a low volume

• “You have more experience than I do.”

• “I don’t think I can…”

• “This is probably wrong, but…”

• “I’ll try.”

Assertive • Operates from choice

• Is action-oriented

• Is realistic in expectations

• Behaves in a fair, consistent manner

• Has open, natural gestures

• Uses direct eye contact

• Has a confident, relaxed posture

• Uses a varied rate of speech

• “I choose to…”

• “What are my options?”

• “What alternatives do we have?”

SOURCE: Joni Rose, “Communication Styles,” January 21, 2007, http://www.suite101.com/content/communication-styles-a12116 accessed January 18, 2011.

WHAT DO YOU THINK 9.2

In what circumstances do you become an aggressive communicator? A passive communi- cator? Record these reflections in your journal.

CHAPTER 9 Communication Essentials 143

Asking a question skillfully increases the likeli- hood of quickly getting a solid understanding of the issues. In general, the person doing the questioning is in control of the discussion. Therefore, all questions should be asked in a positive way. A positive question is one that the customer is not afraid to answer. By rewording a “you” statement into an “I” statement, you can steer clear of questions that use sarcastic language or a threatening tone.

For example, avoid, “What exactly are you getting at?” or “Could you get to the point a little quicker?” Say instead, “I don’t understand what you are trying to tell me,” or “Could you please try to explain it in a different way so I can understand better?”

Relative to questioning techniques, avoid bom- barding the customer with questions or using a multiple-question approach when serving customers.

• Bombardment approach asks too many questions in a short period of time and puts customers on the defensive. This tactic controls the conversation but may limit the information gained. “Why” questions, if improperly asked, often cause indivi- duals to become defensive.

• Multiple-question approach asks many questions wrapped up as one. When a question actually contains several questions, clients may get confused about which one to answer. Also, various global customers do not receive rapid-fire questions favorably as this creates distrust.

To get the response you want, you need to know how to choose the appropriate type of ques- tion to ask. During the course of a normal conversa- tion, you use all types of questions to gather a lot of data into information you can use. Depending on the situation, use an assortment of open, probing, closed, alternative choice, leading, and direct questions.

1. Open questions request information in a way that requires a more complete answer than a simple “yes” or “no.” They encourage an indi- vidual to talk, and they elicit maximum infor- mation to identify causes so you can work more quickly and effectively toward solutions. Open questions usually begin with action verbs

or “How,” “What,” or “Why.” As a result of asking open questions, CSRs are able to gain more information, and that, in turn, makes offering solutions or suggestions to customer problems much easier. Examples are, “Describe the kind of engine noise you are hearing,” “How may I assist you?” and “What informa- tion were you given when you spoke with the CSR yesterday?”

2. Probing questions use information already established to clarify points and ask for more details. Often, these questions promptly follow up a previous question and response. For example, “Who did you speak with yesterday?” “When did you purchase the product?” “Can you always be reached at this telephone number?” and “Tell me more about how you are feeling.”

3. Closed questions usually elicit a yes or no answer. Closed questions can be useful in the concluding minutes of a customer conversation to confirm small details and to make sure that you have covered all the topics concerning the customer’s query. These questions elicit specific information and usually begin with “Where,” “Are,” or “Do.” Examples are, “Do you want these items delivered?” and “Are there other questions you have for me at this time?”

4. Alternative choice questions provide alterna- tives for the customer to choose from. These questions can be particularly useful when dealing with difficult customers. The approach is to ask customers what they would like you to do for them, but then limit their responses by providing them with two or three alternatives that also suit you. Examples are, “I could find this information for you and call you with an answer by the end of the morning, or would you prefer me to fax the information later in the day?” and “Would you like me to get our supervisor, or would you like to give me an opportunity to try to help first?”

5. Leading questions help speed up interactions with people who find it difficult to make a final decision. They also help the customer confirm information in an easy way. Some examples

144 PART 3 Communication Skills

are, “You would like to receive the catalog updates on a monthly basis, then?” and “So, you would agree on a delivery this coming Thursday, if I can get you a discount?”

6. Direct questions can be open or closed. However, all direct questions have two char- acteristics in common: the name of the other person is always used, and the question is posed as an instruction. Examples are, “Tell me, Mrs. Epperson… ,” “Explain to me, Mr. Siskowski… ,” and “Describe to me, Ms. Frederick…” Using the other person’s name puts you in a better position to get his or her immediate attention. In phrasing the question as an instruction (“Tell me…”), you are giving a subconscious order.

Answering Questions Answering customer questions effectively is equally important as asking the right questions. Here are several tips to consider before answering customer questions:

• Understand the question. Pay attention to every word the customer uses when asking a question. Once you understand the question, then respond.

• Decide whether you know the answer. If you are not sure that your response is accurate, do not answer. Although quick responses are preferred, providing correct information is always the first priority.

• Remember, you are an expert. As a CSR, you know your job better than anyone else. If you are certain you are right and you can back up your answer

with facts, politely assert the truth of what you say. Again, do not promise something you cannot deliver.

• Take enough time. If a customer needs assistance, don’t refuse to help because you are too busy. Also, do not pass the client from person to person.

• Smile. If you’ve got a cranky customer or one who insists you are not right, bend over backwards to make him or her happy. Be pleasant and smile when answering the customer’s questions.

• Avoid responding to a question with a question.

Questions should be asked only to clarify the original question; beyond that—answer, don’t ask.

• Be careful with your power. Never belittle a customer or criticize a question you receive. For example, don’t say, “Can’t you see the sign over the door that says…?” or “You mean you don’t know?”

• When you don’t know, admit it. If you are sure you don’t know the answer to a question, say so. Admit you don’t know, but make an effort to find someone who does.

Using Positive Language Language impacts whether a message is received pos- itively or negatively and is a great tool that must be used carefully. For example, the impact of unpleasant news can be softened by the use of positive language. Positive language projects a helpful, encouraging feeling rather than a destructive, negative one.

No doubt you are familiar with cynics, people who often criticize ideas or provide reasons why some- thing won’t work. The cynic’s constant challenging creates a negative service environment and increases

CUSTOMER SERVICE TIP

Don’t answer your twentieth question of

the day as if it were your twentieth ques-

tion of the day. Instead, answer it as if it

were your first question. It may be the

twentieth time you hear the same ques-

tion, but keep in mind that it’s probably

the first time the customer has asked it.

Ethics / Choices Assume you started a new customer service job

and after a short time, determined that it was a

standard procedure to promise customers products

that can’t be guaranteed a reasonable delivery.

Would you express your concerns or start thinking

about finding another job? Explain.

CHAPTER 9 Communication Essentials 145

confrontational situations. For example, a cynical CSR might respond to a new customer service pro- posal with, “I don’t know why you are suggesting that! We’ve tried it in the past and it didn’t work, so why do you think it will work now?”

People who are cynical don’t always have nega- tive attitudes. Perhaps, they have not learned to phrase their comments in more constructive, positive ways. Negative language conveys a poor image to customers and may cause conflict and confrontation where none is necessary or desired. Its use should be avoided. The following message, taken from Robert Bacal’s article on “Using Positive Language,” could take place at a business service counter or in a letter:

“We regret to inform you that we cannot pro- cess your application to register your business name because you have neglected to provide sufficient in- formation for us to do our job. Please complete all sections of the attached form and return it to us promptly.”

The message has a tone that suggests that the recipient is to blame for the problem. Contrast this example with the following rewritten, more positive approach that Mr. Bacal suggests:

“Congratulations on your new business. To reg- ister your business name, we need some additional information. Please return the attached form, com- pleting the highlighted areas, so we can send your business registration certificate within one week. We wish you success in your new endeavor.”

Bacal aptly points out that “the negative ex- ample tells the person what he or she has done wrong but doesn’t stress the positive actions that can be taken to remedy the problem. The positive example sounds completely different and has a more upbeat and helpful tone.” Bacal goes on to describe the following characteristics for negative language:

• It tells the recipient what cannot be done.

• It has a subtle tone of blame.

Figure 9.3 Common Negative Language

REMEMBER THIS

Expressions that suggest carelessness • “You neglected to specify…”

• “You failed to include…

• “You overlooked enclosing…”

Phrases that suggest the person is lying • “You claim that…”

• “You say that…”

• “You state that…”

Expressions that imply that the recipient is not too bright • “We cannot see how you…”

• “We fail to understand…”

• “We are at a loss to know…”

Demanding phrases that imply coercion and pressure • “You should…”

• “We must ask you to…”

• “We must insist that you…”

Phrases that might be interpreted as sarcastic or patronizing • “No doubt…”

• “We will thank you to…”

• “You understand, of course…”

SOURCE: Robert Bacal, “Using Positive Language,” Conflict911.com, October 2000, http://conflict911.com/conflictarticles/poslan.htm accessed January 6, 2011.

146 PART 3 Communication Skills

• It includes words such as can’t, won’t, and unable to, which tell the recipient what the sender cannot do.

• It does not stress positive actions that would be appropriate.

On the other hand, positive language displays these qualities:

• It tells the recipient what can be done.

• It suggests alternatives and choices available to the recipient.

• It sounds helpful and encouraging rather than bureaucratic.

• It stresses positive actions and consequences that can be anticipated.7

To move toward more positive communication, identify and eliminate universal negative language. Bacal lists some familiar expressions that should be avoided whenever possible in communicating with customers. These are shown in Figure 9.3 on page 146, while Figure 9.4 offers his examples of con- veying the same information with positive phrasing.

Handling Customer Requests When handling customer requests, special service skills are sometimes required. The best response to a service

request is “yes,” but sometimes “I’m not sure” cannot be avoided, or “no” is even required. Here are some suggestions as to how to handle each circumstance:

Saying “Yes” Use a friendly voice tone, combined with positive, cheerful words. Clearly tell the cus- tomer what you can do for him or her.

Saying “No” Empathize with the customer and help if you can. Explain why you cannot complete the request. Choose words that are calming and soothing. When customers are distracted or emo- tionally upset, they may not hear what you intended to say, so make every effort to use positive, clear, effective phrases.

Saying “I’m Not Sure” Use this phrase when you are not sure if the request can be completed, what options you can offer, or if you don’t have the au- thority to address the request. Always follow this statement with, “But I’ll be happy to find out.”

Sensitive Issues While most of the previous discussion has dealt with typical business situations involving products and ser- vices, it is important for CSRs to be aware that cus- tomer responses may be influenced by factors beyond the “typical” concerns of billing, deliveries, or faulty merchandise. Mike Johnson, in an article written for Clement Communications, Inc, reminds readers that

We are in the business of serving people who have real lives and experiences. When indivi- duals approach us for assistance, we see only a snippet of their existence. We have no way of knowing what challenges or crises they are

7Robert Bacal, “Using Positive Language,” Conflict911.com, October 2000, http://conflict911.com/conflictarticles/poslan.htm accessed January 6, 2011.

Figure 9.4

REMEMBER THIS

Examples of Positive Phrasing

• “If you can send us your bill of sale, we will be happy to complete the process for you.”

• “The information we have suggests that you have a different viewpoint on this issue. Let me explain our perspective.”

• “Might we suggest that you… [suggestion].”

• “One option open to you is… [option].”

SOURCE: Robert Bacal, “Using Positive Language,” Conflict911.com, October 2000, http://conflict911.com/conflictarticles/poslan.htm accessed January 6, 2011.

CUSTOMER SERVICE TIP

Use creative ways to say “no” to a cus-

tomer. If you must use the word policy,

do so only for matters of legal compliance,

ethics, or absolute performance standards,

such as employee or customer safety.

CHAPTER 9 Communication Essentials 147

quietly coping with as they approach us. Pro- viding rude or apathetic service is always bad business, but to provide it to a person who is suffering mental or physical pain is simply bad human behavior.

When serving others, it is safe to assume that some of the customers you encounter on most days are undergoing personal distress. Who these people are or what crises they face will likely never be revealed, but rest assured, your actions will make a positive or negative impact on their outlook for the day. The fol- lowing are some sobering thoughts about vari- ous crises people (customers) in America face every day. For each situation, reflect and then ask yourself how you will treat these people when they come to you for service.

Johnson provides the following list of situa- tions that may impact a customer’s interaction with a CSR:

• Death of a loved one Each day around the world, many customers are dealing with shocking news about the death of a loved one.

• Suicide Unfortunately, people today will either take their lives or will attempt suicide. This means that sometime today, many CSRs unknowingly have the opportunity to convince these people they are valuable human beings.

• Divorce Today, thousands of spouses will be served with papers for divorce. For many of them, this will be a surprise causing absolute devastation.

• Missing children Today, innocent children will be listed as missing. How you treat their parents when they come to you for service will make a difference.

• Loss of job Today, thousands of people will be laid off, fired, or otherwise removed from their jobs. How will you treat these people when they come to you for service?8

FUNDAMENTALS OF BUSINESS WRITING In addition to face-to-face communication with customers, CSRs are also required to communicate effectively in writing. From simple e-mails and chats to formal customer letters, CSRs will need to com- pose documents that educate, persuade, inform, or enlighten the customer. Writing is an essential element of business communication. The ability to write effectively is a skill you learn; it comes naturally to only a few gifted individuals.

Business writing experts say that the most im- portant strategy behind good written communication is to be clear. Striving for clarity is important, even if the subject is difficult. It is much better to be as hon- est as you can be with customers, within whatever limits are set by your work, rather than to write around the problem. After clarity, the next most im- portant writing strategy is the skillful and professional presentation of the written communication. Presenta- tion reflects your company’s professionalism, quality, and reputation. The costs of sloppy and poorly written documents with spelling or grammatical errors can be staggering to organizations.

8Mike Johnson, “You Never Know What Crisis Your Customer is Facing,” Clement Communications, Inc., October 2000, http://www.mikeleejohnson.com/ CustomerCrisis.html accessed January 6, 2011.

Ethics / Choices How would you act in response to a customer

who was talking to you about exchanging

a faulty product for an account credit, and sud-

denly her eyes filled with tears and she was unable

to continue?

WHAT DO YOU THINK 9.3

What types of questions and negative/ positive phrasing do you use less often than others? Record in your journal how you might use these new communication tools in the workplace.

148 PART 3 Communication Skills

Identify the Audience Clear writing is essential if you want your message to be understood by the recipient; what makes writing clear will vary and is ultimately dependent on your target audience. Before you write, it is critical to understand whom you are addressing.

When conveying written or spoken information, walking in your customers’ shoes is good advice. Who are they and what are their needs? What is important to them and do they know your products? How can you make sure that what you have to say becomes important to them? What is your current relationship with the person—a current, new, or lapsed customer? Answering these questions requires an awareness of your audience. Moreover, the vocabulary you use and clear organizational structure you give the piece of writing depend on who you are addressing and what the purpose of your message is.

Write Clearly with a Purpose in Mind Before writing the first sentence, decide what the message should be. Are you conveying information to an upset customer? Are you following up with a

customer to clarify issues from a recent phone conver- sation? Do you want your reader to do something when he or she finishes reading your message? If you aren’t sure what your purpose is, your reader won’t be either. If you want your reader to take some type of action, clearly state the benefits he or she will receive by doing what you ask in terms that are meaningful to this person.

Effective writing requires the ability to identify your objective and organize a series of thoughts. You then prioritize the key points you want to make that support that purpose. For some, an outline works best, because it allows writers to visualize their thought processes on paper and in some detail. For others, the best ideas come from using the creative approach of simply jotting down ideas as they brain- storm the major elements of the message they want to convey.

Get to the point by presenting your primary message or call to action as quickly as possible. Few busy people have the time or patience to wade through long introductory paragraphs before coming to the point of a document. Provide just enough information to capture readers’ attention and let them know what is being asked of them.

Use the Proper Tone Tone is present in all communication activities— spoken or written. The overall tone of any written message affects the reader, just as one’s tone of voice in oral exchanges affects the listener. Tone refers

Should it matter if you organize your writing using a digital computer device or pen and paper?

CUSTOMER SERVICE TIP

When writing to customers, some impor-

tant books to have on hand are a dictio-

nary, a thesaurus, and one or two

office handbooks. These reference tools

are also available online, as apps to be

downloaded on an electronic device, or

as part of a word-processing software

package, such as Microsoft® Word.

St o c kb yt e/ G et ty

Im ag e s

CHAPTER 9 Communication Essentials 149

to the writer’s attitude toward the reader and the subject of the message. When creating proper com- munication tone, remember to:

Be Confident Careful preparation and knowledge about the ideas you wish to express instill confidence. Use words that are respectful and positive showing a confident attitude of helpfulness.

Be Courteous And Sincere A writer builds goodwill by using a tone that is always polite and sincere. When you are respectful and honest, readers are more disposed to accept your message, even if it is negative.

Use Nondiscriminatory Language Nondiscri- minatory language addresses all people equally and expresses respect for all individuals because it avoids discriminatory words and inappropriate remarks. It is particularly crucial, when communicating with

a global audience, not to appear patronizing or dismissive.

Stress The Benefits For The Reader A reader will want to know, “What’s in it for me?” Your job is to write from the reader’s perspective, or with a “you” attitude. It’s better to say, “Your order will be available in two weeks” than “I am processing your order tomorrow.”

WHAT DO YOU THINK 9.4

What are your strengths as a writer? As a result of studying this section, in what ways can you improve your professional writing skills? Record your thoughts in your journal.

FOCUS ON. . . BEST PRACTICES

Communication Seminars for CSRs

Whether on-site workshops or online webinars, one-

day seminars that cost between $100 and $200 per

participant are increasingly popular for businesses that

want a very directed push toward improving customer

communication. Specifically geared to a particular

audience, these short-term training opportunities can

be “canned” or tailor-made to a business’s employees,

which include CSRs, sales professionals, marketing

managers, and front-line workers.

To locate an assortment of seminar offerings avail-

able across the country, use a phrase such as customer

service communication seminars in your favorite search

engine and thousands of choices will be displayed.

There are a variety of topics and types of seminars

available. For example, the Fred Pryor Seminars/Car-

eerTrack website, in promoting their workshops, states,

“We’ve drawn from what is working in companies

all across America.” One of their popular seminars is

entitled Smart Techniques for Better Communication

and covers the following topics:

• How to prevent misunderstandings

• Ways to make a winning first impression

• The secrets to good rapport with customers and associates

• Easy techniques for crystal-clear, positive communications

SOURCE: http://www.pryor.com/mkt_info/seminars/desc/KC.asp#Communication, accessed January 7, 2011.

150 PART 3 Communication Skills

WRAPPING UP Though business communication modalities are varied and may span many miles with customers from other cultures or within the United States, the importance of service professionals consistently applying first-rate communication essentials cannot be overstated. From understanding and successfully applying the elements in the communication process and model to recognizing communication styles in yourself and others, these basics are central to serv- ing customers well. Add in the need to be sensitive to customers when asking or answering questions and as a result of your study, you are better prepared to learn one of the most important communication skills, Customer-Focused Listening, the topic of Chapter 10.

SUMMARY

• The major elements in the communication model are the sender, the receiver, a message, channel, shared understanding, and feedback.

• When communicating with customers use the assertive style, but also be alert to the business use of passive and aggressive styles.

• When clarifying issues with customers, consider the information you want to get and choose from among the six types of questions: open, probing, closed, alternative choice, leading, or direct.

• In written communication, understand who you are addressing, what you want your message to accomplish, and how to incorporate the right tone for the message.

CHAPTER 9 Communication Essentials 151

KEY TERMS

aggressive communication style alternative choice questions assertive communication style closed questions communication model decoding process

direct questions encoding process feedback leading questions mixed message negative language

open questions passive communication style positive language probing questions tone

CRITICAL THINKING

1. Have you or anyone you know attended a com- munications seminar provided by an employer? If so, in what ways was it more or less effective than training that used other approaches?

2. Recount a situation you participated in or observed recently in which all elements of the communication model were successfully implemented and resulted in a shared message. Was the communication successful? What, if anything, might have improved communica- tion between the sender and receiver?

3. Describe the behaviors of a person you know who predominately uses a passive communi- cation style, one who uses an aggressive

communication style, and one who uses an assertive communication style. How did each of those styles impact upon their dealings with customers and colleagues?

4. Assume that a customer returns an article of clothing or a household item for a refund or credit. Develop six queries a CSR might use in this situation that make use of each type of question: open, probing, closed, alternative choice, leading, and direct.

5. Describe your reaction to a business letter or e-mail message you’ve received recently that you perceived as having an inappropriate tone. In what ways was it insensitive? How did it make you feel?

WHAT DO YOU THINK NOW?

Project 9.1 Assume you are doing a classroom presentation on communicating with customers. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some service attitudes and practices that advance clear customer communication techniques? What service issues must CSRs recognize and work around when communicating with customers? Which fundamental com- munication skills should CSRs use, in both spoken and written communication, to minimize any form of mixed or vaguely communicated messages? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 9.2 Digital Writing Tools Research a number of websites and locate several articles on current digital or computer equipment and software that businesses use to communicate in writing with customers.

152 PART 3 Communication Skills

As a result of your research, develop a poster showing the writing tools, prices, features, benefits, and so on of at least four products businesses should consider. Share your poster with the class in either a panel discussion or an oral report, as directed by your instructor.

COMMUNICATION SKILLS AT WORK

Project 9.3 Language That Makes a Difference Brainstorm with other students to provide more appropriate responses to each of the negative language statements shown here. As an alternative, follow your instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project. Hint: Use “I” statements rather than “you” statements.

1. “You didn’t do this right.”

2. “You are wrong.”

3. “Wait here.”

4. “What’s your problem?”

5. “You aren’t making any sense.”

6. “Why are you so upset?”

CHAPTER 9 Communication Essentials 153

DECISION MAKING AT WORK

Project 9.4 The New CSR—Temporary Hire A temporary, six-month CSR position has just been filled at Dallas Distribution Center. The new hire is Abhey Patel, a very nice and bright person, who everyone agrees works extremely hard. Abhey has recently established citizenship in America from his homeland, India. Realizing the need to write to customers using proper English and grammar, the other CSRs have been covering for Abhey, proofreading his letters and e-mail messages for him. He is currently enrolled in an ESL (English as a Second Language) night class, but he hasn’t mastered all the fine points yet.

Respond to these questions regarding Abhey’s situation:

1. What are some ways that Abhey can complete his duties on his own more easily?

2. Do you feel that the supervisor should be informed that Abhey has not yet developed his business writing skills and that others are helping him with his work? Is this practice of helping Abhey hurting his co-workers or the company?

CASE STUDY

Project 9.5 “I’ll Take That Customer!” Neal Erwin has a reputation he has always been proud of in the Haskin’s Bookstore customer service department. He takes calls from customers that others don’t want to deal with. Sometimes, when he is on the phone with a customer, he asks co-workers to come near his desk to hear his side of the argument. In the past, he has gotten loud and belligerent with customers and later has even boasted of “winning.”

Things have changed, however, and Neal is now in trouble with management because of a recent incident. A loyal 20-year customer, who spoke to Neal on the phone last week, contacted owner Mr. Charles Haskins and told him in no uncertain terms that she was taking her business elsewhere.

1. In your opinion, should Neal have been allowed to get away with his behavior to customers? Explain.

2. As a co-worker of Neal’s, would you have any responsibility to report his aggressive communication style to his supervisor?

154 PART 3 Communication Skills

CHAPTER 10 Customer-Focused Listening

The most important thing in communication is to hear what isn’t being said.

PETER F. DRUCKER, MANAGEMENT CONSULTANT

OBJECTIVES

1. Distinguish among the three levels of listening.

2. Explain the consequences of ineffective listening.

3. Develop techniques for becoming an effective listener.

4. Describe obstacles that impact customer-focused listening.

155 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Whirlpool

The best way to understand customer needs is to listen to customers. After Whirlpool merged with Maytag in 2006, it developed a new and comprehensive service strategy where listening to customers was among the top training programs it instituted.

In an article by Mila D’Antonio, Whirlpool’s national Director of Customer Care Lynn Holmgren explains that the integrated contact center’s mission of No customer will be lost because of me is the

basis for a new training initiative. As D’Antonio notes, “Called Customer Boot Camp, these immersion tours allow employees who work outside the call center to hear the voice of the customer directly by listening in on calls and also interact with call consultants.” Connecting with customers in this way has served to broaden the understanding of the Whirlpool customer experience for over 400 employees each year.

SOURCE: Mila D’Antonio, “Whirlpool Puts a New Spin on Loyalty,” 1to1 Media, February 23, 2009, http://www.1to1media.com/View.aspx?DocID=31400&m=n accessed January 15, 2011.

LEVELS OF LISTENING Customers have needs beyond completing a simple business transaction; they have emotional needs as well. There is no better way to meet these needs than by listening with attentiveness and understanding as Whirlpool employees do. Successful service repre- sentatives understand the benefits of customer-focused listening, and they continually fine-tune their listening skills whether face to face with the customer, on the phone, in written messages, or via an online chat.

As stated in an article by Madelyn Burley-Allen in HR Magazine, people listen at different levels of efficiency throughout the day, depending on the cir- cumstances, their attitudes about the speaker, and their past experiences. Most people have difficulty listening effectively

• when dealing with conflict or emotionally charged people,

• when criticism is being directed at them, or

• when they’re feeling anxious, fearful, or angry.

Because listening is a learned skill, practicing in- tentional awareness of your listening behavior will go a

long way toward helping you become an effective lis- tener. By dividing listening into three levels, it is easier to characterize certain behaviors that affect listening efficiency. These levels are not sharply distinct. Rather, they are general categories into which modes of listen- ingfall. They often overlap, depending on the situation.

Burley-Allen reminds us that, as a person moves from the least effective level to the most effective level, “the potential for understanding and retaining what is said and for effective communication increases.”1 The following descriptions of the three levels, as proffered by Ms. Burley-Allen, will help you understand the distinctions in how each level is expressed by listeners.

1Madelyn Burley-Allen, “Listen up: Listening is a learned skill and supervisors need it to improve their employee relationships-Management Tools\Supervisor Resources,” HR Magazine, November 2001, http://findarticles.com/p/articles/ mi_m3495/is_11_46/ai_80327074/, accessed January 11, 2011.

CUSTOMER SERVICE TIP

More is learned by listening than by talking.

156 PART 3 Communication Skills

Level 3 Listening A level 3 listener may be daydreaming, forming a premature reply, or faking attention while thinking about unrelated matters. In general, this type of listener is more interested in talking than in listen- ing. Unfortunately, this reaction can result in either the speaker or the listener moving away from the conversation.

Have you ever attempted to return a purchase, make an inquiry, or make a payment to a sales per- son who was engaged in a conversation with another sales person? Perhaps the conversation involved gos- sip, complaining about a supervisor, or even flirta- tion, but whatever it was, it had the sales person’s attention. When you found you had to keep repeat- ing what you needed, and the sales person made it obvious that you were an annoyance and an inter- ruption, it was clear that the sales person was not listening attentively. When service interactions occur with either the customer or CSR listening at level 3, nothing constructive occurs. More often than not, the listening exchange can evolve into responses that cross annoyance with defensiveness, causing serious communication breakdowns. It is easy but inexcus- able to be distracted. Only the customer should be the focus of your attention.

Level 2 Listening Level 2 listeners focus on words, but many times they miss the intent—what is being expressed non- verbally through tone of voice, body posture, gestures, facial expression, and eye movement. As a result, level 2 listeners hear what the speaker says, but they make little effort to understand the speaker’s intent. This can often lead to misunderstandings, incorrect actions, and loss of time.3

You may have had the experience where you approached a CSR with an urgent (perhaps repeated) inquiry about lost items at a dry cleaner or a promised delivery that never happened. The CSR seemed to be

listening to you. He nodded his head periodically, but when he phoned a supervisor and related the situa- tion, he left out key details regarding what you needed. In this case, there’s a good chance that level 2 listening was occurring. Without both parties using previously described feedback and questioning tools throughout the communication exchange, appearing to listen may result.

Level 1 Listening Level 1 listeners view listening as an opportunity to gather new and useful information. They suspend judgment, are empathetic to the other person’s feel- ings, and can see issues from the other person’s point of view. These listeners take extra time to mentally summarize the stated message, question or evaluate what was said, and consciously notice nonverbal cues.4

CSRs who listen at this level serve customers best. They work at listening completely because it helps them understand the customer and respectfully serve his or her needs by means of a professional and composed approach.

What actions are needed to listen as though the other person is the only one in the room?

2Ibid. 3Ibid. 4Ibid.

Bl e nd

Im ag e s/ Ju p ite

r Im

ag es

CHAPTER 10 Customer-Focused Listening 157

INEFFECTIVE LISTENING Most people have the ability to be good listeners if their minds aren’t cluttered, if they agree with what is being said, or if they like the person they are convers- ing with. However, when any of these conditions are not met, it is difficult to listen attentively. For exam- ple, suppose a sales associate at a popular department store was abruptly told that corporate requires an immediate inventory of stock in her department over Saturday night. Unfortunately, she has already made plans with her friends for the weekend. Because of this conflict, she could likely become an ineffective listener with the next customer. Although unintentional, it still happens.

A speaker may be an excellent communicator, but if, as a listener, he or she is distracted by outside interference or pays attention only to expected responses, selective listening may occur. Selective listening is hearing only what you want to hear— sorting out what’s not important or of no interest to you. A selective listener is one who finds concen- tration difficult, has a cluttered mind, or may be tense with emotion. Effective listening under these circumstances is difficult.

Reasons for selective listening abound. One may be as simple as the kind of day you are having and how you are reacting to it. It’s important to recognize that when you feel anger, joy, excite- ment, or boredom, as each of these conditions influences your listening habits. Another reason for selective listening might be that you tune out someone who strikes you the wrong way due to appearance, ethnic background, or manner. When

this happens, notice how little you hear of what this person says.

As soon as people say things we don’t want to hear, many of us slip into a selective-listening mode. We either tune these speakers out or we become so busy planning our responses to their ideas that we don’t hear what they are saying. Instead, we should hear them out. It is through attentive listening, not selective listening, that we discover important infor- mation that may alter our opinions and subsequent actions during customer service exchanges.

EFFECTIVE LISTENING Effective listening has many benefits. It saves time, money, and emotional drama, because people who listen well make fewer mistakes and create fewer interpersonal misunderstandings. For business, good listening skills result in happier customers and less worker turnover. When companies listen to their employees, workers feel more valued and display higher morale. For employees who are good listeners, they see tangible rewards in the forms of company recognition and promotions.

Focused listening earns respect because good listeners are perceived by others to be patient, open-minded, sincere, and considerate. Employers, teachers, and friends attach importance to them because they assist speakers in making their points and conveying ideas efficiently. Improving listen- ing skills is never a waste of time; the benefits are vital to success and self-worth in the world of cus- tomer service. The benefits of effective listening to

WHAT DO YOU THINK 10.1

Reflect on previous conversations or group meetings you’ve participated in and describe the circumstances in which you listen at each of the three levels. Record your listen- ing tendencies in your journal.

WHAT DO YOU THINK 10.2

Do you listen selectively? Cite some examples from your work or school experi- ences that show you either are or are not a selective listener. Record your examples in your journal.

158 PART 3 Communication Skills

the global customer will be covered later in the chapter.

Fully understanding the meaning of what some- one says requires energy and discipline, both of which contribute to what is known as active listening. Active listening is listening with your whole mind and body—not just your ears. It requires putting your own feelings aside while trying to understand what the other person is saying. Don’t assume you know what a customer wants after he or she speaks the first few sentences. When CSRs fail to listen actively, it results in not fully understanding the customer’s needs. Listening is not a passive activity.

Two positive things happen when you practice active listening: the customer senses you care, and you gain a more comprehensive picture of the service situation. This is especially true with global cus- tomers who feel particularly gratified that a CSR makes an extra effort to listen, especially when lis- tening could be hampered by a heavy accent or a poor phone connection. Greater understanding allows you to respond more effectively and to meet a cus- tomer’s biggest need—to be heard.

Below are five strategies that will help improve your active listening skills:

1. Be ready to listen. Do this with your eyes, head, and heart as well as your ears. Have paper and a pen or pencil handy, or clear your computer screen and be ready for the next customer contact. Eliminate all distractions that are not conducive to an effective listening environment. Be aware of any internal, physical distractions that you feel, such as hunger, fatigue, headache, or emotional stress. These disruptions can affect your ability to listen carefully.

2. Be ready to take notes. If you are speaking to the customer on the phone, let him or her know you are taking notes. Say, “I’m concerned about this, so I’m writing it down.” When customers know you are taking notes, they are less likely to repeat themselves. This may also help them organize their thoughts so they state their messages more clearly.

3. Demonstrate that you are listening. While the speaker is talking, nod in agreement or ask

questions if something is unclear. Use your body language, stance, posture, and eye contact to show attentive silence. When talking on the phone, use caring words, such as “okay” and “I understand,” to provide verbal reinforcement. These prompts let the customer know you are actively listening.

4. Ask questions. The goal here is to get the cus- tomer talking. Ask appropriate and thoughtful questions in order to clarify the speaker’s words and determine the true nature of the problem.

5. Restate the customer’s points. Don’t just repeat what the customer said, but put the message in your own words and emphasize the main points as you understand them to be. This way, you will know when you are on the right course, because the customer can correct you, if necessary.

Take the quiz in Figure 10.1 on page 160 to determine how your listening skills rate.

Service representatives who are skilled listeners communicate more effectively and make better deci- sions than those who are not. People tend to filter the information they hear. Filtering is the process of interpreting messages through our own biases. All too often, what we think we hear is not the correct understanding of what was said. This is important to recognize because for CSRs who serve diverse cus- tomers from around the world, using personal filters can result in deflecting or stopping the listening pro- cess. A way to counteract filtering is to participate fully in the conversation and look for the underlying feelings in each message. Feelings are often more important than the words themselves.

Here are some winning strategies for develop- ing valuable listening skills:

• Realize that listening is hard work. To listen well, prepare yourself mentally. Don’t allow yourself to do other things as you listen, such as answering the phone, doing paperwork, playing solitaire on the computer, or checking your e-mail.

• Make good use of the thought–speech ratio. People can think much faster than a speaker can talk. As a result, it can be difficult to concentrate on what

CHAPTER 10 Customer-Focused Listening 159

another person is saying if we let our minds wander or start thinking ahead to fill in the gap.

• Seek to listen in more than one way. Listen with your eyes as well as your ears. Look for nonverbal clues to see whether they reinforce or contradict what the person is saying.

• Don’t begin speaking the moment the person stops talking. Pause a moment before responding to demonstrate that you are not rushing through the conversation and are trying to understand what was said. As a result, the speaker will feel com- fortable in sharing more information with you.

• Develop an open posture that encourages the other

person to talk. Use these techniques: lean toward the speaker while maintaining a comfortable distance, gesture toward the person as you listen and respond, and use the speaker’s name in the conversation.

Effective listening involves more than just hear- ing (the physical act of processing sounds) what the other person is saying. It requires finding the real meaning of the words as well as the unspoken mes- sage behind those words. Refer to Figure 10.2 to

review specific behaviors that are a part of focused and effective listening.

Feedback Feedback is a significant element in the communica- tion process. After receiving a message, the receiver typically responds in some observable way. This feedback response can be in the form of a follow- up comment or question or possibly facial and body gestures. Lacking feedback, neither the sender nor receiver can confirm that the message was correctly understood.

A key advantage to receiving customer feedback is that it can indicate communication obstacles, such as how each person interprets words and gestures. Feed- back not only regulates the listening process but can reinforce and stimulate it as well. To show understand- ing of the message, a listener can draw on two types of feedback—responsive and reactive. Responsive feedback characterizes the listener’s feelings: “When you [action], I feel [reaction].” Reactive feedback affirms the speaker’s message: “I had a similar experi- ence. It was: …” (Be careful not to use this technique to achieve one-upmanship over the speaker.)

Figure 10.1 Listening Skills Quiz

REMEMBER THIS

TRUE FALSE

□ □ 1. During a conversation, I ask questions to clarify details.

□ □ 2. I don’t let distractions pull my attention from the conversation.

□ □ 3. I don’t use expressions such as “really” and “uh-huh” to mask my inattentiveness.

□ □ 4. I don’t allow myself to think about other topics while listening to others.

□ □ 5. I maintain eye contact while talking to others.

□ □ 6. I don’t fidget or do other tasks while another person is speaking.

□ □ 7. When someone asks me for advice, I make sure my facts are correct.

□ □ 8. If I can’t ignore a distraction, such as a ringing telephone, I make plans to continue the conversation at a later time.

□ □ 9. I don’t rush the other person to make his or her point in a conversation.

□ □ 10. I follow up with the person from time to time to see what progress has been made since our initial conversation.

How did you do? Each “True” response puts you one step closer to giving customers the great service and attention they deserve. Consider “False” responses as opportunities for improvement.

160 PART 3 Communication Skills

Empathetic Listening When customer concerns have emotional overtones, empathize before giving an answer or advice. Custo- mers can bring a wide range of emotions to the dis- cussion, from frustration to out and out rejection. Empathy is seeking to understand the other person’s position without personally getting emotionally involved. Good listeners know that when you put yourself in the customer’s place, you are in the posi- tion to better analyze the message from his or her perspective.

Empathy not only bolsters understanding but also is a powerful tool for customer loyalty. As an

effective listener, you set in motion a positive, mutu- ally rewarding process by demonstrating interest in the customer and what he or she is saying. Empathetic listening encourages honesty, mutual respect, under- standing, and a feeling of security in the customer. When you listen empathetically, you seek to under- stand the beliefs, emotions, and goals of other people.

According to Reginald Adkins, who puts forward five tips for empathetic listening, the foundation of the technique is summarized in the following simple steps:

1. Provide the speaker with your undivided atten- tion. This is an instance where “multitasking” or “rapid refocus” will get you in trouble.

Figure 10.2 Listening Techniques

REMEMBER THIS

1. Stay present Don’t let your mind wander. Many are composing a response before the speaker has a chance to completely finish his/her thought.

2. Make eye contact Let the speaker see your interest by regularly making eye contact.

3. Ask questions for clarification

This is not your time to respond. Get really clear about what is being said. If you don’t understand, ask questions in an open non-charged manner.

4. Acknowledge feelings If the speaker is telling you something about his/her feelings, acknowledge them. You don’t have to agree to show that you see the speaker is upset or happy about something.

5. Restate or paraphrase Make sure you are getting the information the speaker is presenting by periodically repeating what you hear in different words the speakers. “Let me see if I’ve got it so far.”

6. Seek first to understand and then be understood

Before you state your thoughts and ideas make sure you totally understand and acknowledge the speaker’s thoughts.

7. Give nonverbal feedback While the speaker is speaking, be sure to smile, nod, frown, shrug your shoulders, or raise your eyebrows—whatever is appropriate.

8. Silence Don’t be afraid of this. Periods of total quiet will allow you and the speaker to think about what was said. When you are sure the speaker has completed his/her thoughts on the subject, it will be time for you to comment.

9. Take in all the information both verbal and nonverbal

Focus on the meaning of what is being said and also what is not being said.

10. Get permission Sometimes people just want to be heard. At other times they are seeking advice. Give advice only when requested and only after the person has had a chance to give you the whole story. If you are not sure, ask if the person is looking for your input.

SOURCE: Alvah Parker, “Top Ten Listening Techniques” http://www.evancarmichael.com/Business-Coach/107/Top-Ten-Listening-Techniques.html, accessed February 8, 2011.

CHAPTER 10 Customer-Focused Listening 161

2. Be non-judgmental. Don’t minimize or trivialize the speaker’s issue.

3. Read the speaker. Observe the emotions behind the words. Is the speaker angry, afraid, frus- trated, or resentful? Respond to the emotion as well as the words.

4. Be Quiet. Don’t feel you must have an immediate reply. Often if you allow for some quiet after the speaker has vented, they themselves will break the silence and offer a solution.

5. Assure your understanding. Ask clarifying questions and restate what you perceive the speaker to be saying.5

Cultural Listening Cues Serving a variety of customers and knowing how to provide responsive service that effectively communi- cates with diverse customers is vital for successful customer relations. As more businesses compete in global markets, the chances are great that you will be listening to speakers for whom English is a second language. As such, communicating presents unique challenges for both listener and speaker.

One particular challenge facing international customers is learning the inflection and sentence patterns of the English language. It is not easy when those patterns conflict with those of the speaker’s native tongue. What can CSRs do to become better listeners while non-native customers are speaking?

• Avoid making judgments about incorrectly accented

speech. Many multilingual speakers use an insightful but complex variety of English expres- sions. Although their speech may retain remnants of their native languages, don’t assume that their struggle with pronunciation means that they are unintelligent.

5 “Five Tips for Empathetic Listening,” August 9, 2006, Stepcase Lifehack, http://www.lifehack.org/articles/communication/5-tips-for-empathetic-listening.html accessed January 14, 2011.

CUSTOMER SERVICE TIP

Be aware that people listen, process, and

react to messages in a variety of ways,

depending on their behavior, cultural back-

ground, and relationship to the speaker.

Ethics / Choices Suppose you work with a person who, after serv-

ing certain ethnic customers, makes comments

about how slow to understand he feels this

ethnic group is. Would this bother you enough

to let your co-worker know how you feel about

his service attitude?

MAKE IT A HABIT

Be a Helping Agent

Use these helping skills with customers who

just need someone to listen to them while

they talk through problems:

• Listen passively with accompanying non-

verbal behaviors (eye contact, nodding

of the head, etc.) that communicates your

interest and concern.

• Use what the customer says to formulate

good questions to better understand what

the problem is.

• Encourage the person to continue talking

toward an eventual solution with under-

standing, acceptance, and empathy, by

saying, for example, “Oh, I see” and

“Mm-hmm.”

• Encourage the speaker to expand on

thoughts and feelings by saying, “Would

you like to talk about it?”

162 PART 3 Communication Skills

• Be a patient listener. Strive to overcome the urge to hurry the conversation along. Give non-native speakers time to express their thoughts fully.

• Don’t finish the speaker’s sentences. Allow non- native speakers to choose their words and com- plete their sentences without volunteering your help. By practicing patience, you may find that customers end up saying something quite different from what you had at first expected.

• Don’t correct grammar and pronunciation errors. Although you might be trying to help, it is better to focus on what’s being expressed and to refrain from teaching English.

• Don’t pretend to understand. It’s all right to tell a non-native speaker that you are having difficulty understanding him or her and ask the person to please repeat the thought.

ROADBLOCKS TO LISTENING Spoken messages delivered by truly great communica- tors are clear, consistent, direct, human, and personal. However, even the best communicators can occasion- ally, create obstacles when responding to another person. The good news is that you can remove these communication roadblocks by becoming better at listening. A recent blog on the United Wellbeing website notes twelve roadblocks to effective commu- nication. Six are adapted here.

1. Judging or criticizing. Although we are often taught that criticism helps people improve, it is not always the best response when trying to help a person with a problem. An example of

this is if you are told by a CSR colleague, “You aren’t being a very good team player.” Even if the intention is to be supportive, by judging or criticizing, we may inadvertently demean a person who is already struggling.

2. Naming or labeling. For example, telling someone “Your response sounds conservative (or liberal)” could stop the listening process. Responding to a person in this way makes him or her feel inadequate by attaching a stigma to the person, problem, or behavior.

3. Commanding or ordering. Sometimes we think we have the best, most obvious solution to a person’s problem, but responding with a command or an order about what someone should do implies that the person is not competent to judge or act independently.

4. Moralizing. When a listener responds by tell- ing someone what to do and then backs up the solution with a moral or theological authority, it is known as moralizing. Moralizing implies that the speaker lacks the moral compass to come up with a responsible solution on his or her own.

5. Diverting. Diverting happens when listeners attempt to throw aside a speaker’s problems by switching to a more comfortable topic. By doing this, the listener loses the opportunity to truly understand the speaker’s concerns and therefore loses the chance to strengthen the relationship.

6. Advising. Advising is premature problem solving that tells the other person how to solve a problem. We tend to do this when we see our solution as the only one. Saying, for example, “I told you to do it this way,” should be avoided. It implies that the speaker is not able to see a solution to the problem.

Figure 10.3 on page 164 provides examples of each of these roadblocks, as well as an alternative that describes an improved approach to listening.

6http://unitedwellbeing.wordpress.com/2010/04/02/effective-communication/ accessed January 30, 2011.

WHAT DO YOU THINK 10.3

Evaluate your results from taking the listening skills quiz. What did you find out about yourself? Describe your personal evaluation in your journal.

CHAPTER 10 Customer-Focused Listening 163

WRAPPING UP Customer-Focused Listening is a skill that refines innate abilities through self-reflection and constant practice. The best of the best service providers throughout the world work hard to develop and

integrate effective listening skills in their daily practice of global customer service. Skilled practitioners avoid selective listening when confronted with tedious or annoying customers. Rather, they focus empatheti- cally on the total customer message. Effective listeners learn to practice their skills in both face-to-face situa- tions and long-distance phone or digital modes of communication. An attentive and responsive listener will stand out as a top performer in any organization— large or small, corporate or government, profit or nonprofit.

When combined with visual cues that are reflected by Nonverbal Communication, Dress, and Manners, covered next, a total professional emerges, a CSR who is likely to become the reci- pient of customer, managerial, and peer recogni- tion. These positive responses can, in turn, lead to promotions, awards, and many other exciting opportunities.

Figure 10.3 Communication Roadblocks

REMEMBER THIS

ROADBLOCK WHAT IT SOUNDS LIKE AN ALTERNATIVE

Judging or Criticizing “You’re wrong,” “I disagree,” “You’re not thinking clearly.”

Step back from your own situation and try to see the problem from the perspective of the speaker.

Naming or Labeling “That’s a silly idea,” “You are just being shy,” “Why are you so careless?”

Try to see through your immediate responses and truly listen to the speaker.

Commanding or Ordering

“You must …,” “You have to: …”

Try to work together to develop a solution.

Moralizing “It’s the right thing to do,” “You should know that what you are doing is wrong.”

Recognize that everyone has a personal choice and set of values and that the speaker does not necessarily share yours.

Diverting “Just forget about it,” “Something similar happened to me; let me tell you about it.”

Try to put the speaker’s issues ahead of your own. Before you move on, ask the speaker whether he or she has finished speaking.

Advising “Why don’t you … ,” “It would seem to me that you should: …”

Try to let the speaker talk through a problem. Often the solution will emerge with little more than a few nods or words of encouragement from you.

WHAT DO YOU THINK 10.4

Of the six roadblocks to listening covered in the chapter, which three are you most aware of and tend to use as a communicator? How might you improve these roadblocks in a customer service situation? Record your self-evaluation in your journal.

164 PART 3 Communication Skills

SUMMARY

• The levels of efficiency at which people listen throughout the day are influenced by circum- stances, people’s attitudes, and their past experiences.

• One result of ineffective listening is selective listening which is hearing only what you want to hear.

• Active listening means listening with your whole mind and body—not just your ears.

• To understand better what speakers are saying, listeners can use feedback that is responsive and reactive.

• Six roadblocks to communicating and listening are judging or criticizing, naming or labeling, commanding or ordering, moralizing, diverting, and advising.

FOCUS ON. . . BEST PRACTICES

Multiple Listening Posts

What great companies do as a matter of practice

often defines who they are and why they are recog-

nized nationally. Marketing Professor Mary Jo Bitner

at Arizona State University’s W. P Carey School of

Business, describes how great service organizations

like Harrah’s, Mayo Clinic, and Ritz-Carlton utilize

multiple listening posts to capture the voice of the

customer.

She poses these suggestions to organizations:

“Listen and respond. Customer feedback is valuable

and rare. Set up ‘listening posts’ throughout your

organization and act on what you hear. These posts can

be as informal as having a one-on-one conversation with

a client at least once a week or as formal as a customer

satisfaction study. Listen sincerely and thoughtfully and

then base decisions on accumulated input.”

Reprinted in part with permission of Professor Mary Jo Bitner, as published on www.leader-values.com. SOURCE: Mary Jo Bitner, “Eye of the Beholder” Leader Values, 2005, http://www.leader-values.com/Content/detail.asp?ContentDetailID=968 accessed January 15, 2011.

CHAPTER 10 Customer-Focused Listening 165

KEY TERMS

active listening empathy

filtering reactive feedback

responsive feedback selective listening

CRITICAL THINKING

1. How effective do you think Bitner’s suggestion for companies to set up “listening posts” throughout your organization might be? Cite examples.

2. Which of the three levels of listening is most commonly in use as you interact with others in customer service situations? Cite examples and explain.

3. Describe two communication incidents you have experienced recently in which active listening and empathetic listening took place. Compare the listening outcome for each occasion.

4. Of the six communication and listening road- blocks, which three do you think CSRs should most avoid using when serving customers? Explain.

WHAT DO YOU THINK NOW?

Project 10.1 Assume you are doing a classroom presentation on customer-focused listening. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some service attitudes and practices that promote the sincere desire to pay attention to what customers say? Which service situations promote effective listening and feedback? Which skills should CSRs practice that comple- ment customer-focused listening? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 10.2 Planning a Listening Workshop Research a number of training websites that conduct listening seminars or workshops. As a result of your research, write a one-page training plan describing the topics you would include in a customer-focused listening workshop for service professionals. Submit to your instructor, as directed.

COMMUNICATION SKILLS AT WORK

Project 10.3 Words That Smile Note your reactions as you hear a classmate recite the three statements below. For the speaker: frown while making the statement the first time, and then repeat the same message with a smile. Assume that you are speaking with a real customer. How

166 PART 3 Communication Skills

different are the messages communicated to and understood by the customer when you frown compared to when you smile?

1. “Our commitment is to top-quality service.”

2. “I’m glad you chose to do business with us today.”

3. “What can I do to help you?”

DECISION MAKING AT WORK

Project 10.4 The International Traveler Assume you are working in the hotel industry and an international traveler is asking directions to a local landmark or popular restaurant in the area. Although you have repeated the instructions several times, the traveler doesn’t seem to understand your directions. You are wondering what you should do next.

What are two creative steps you might suggest that you or your hotel can take to prevent this frustrating situation from happening in the future?

CASE STUDY

Project 10.5 “I Know You Believe…” Everyone in the company lunchroom was laughing as each person cited a real-case scenario that fit with the meaning of a well-known quotation. The anonymous quo- tation that caused the laughter and subsequent discussion was, “I know you believe

CHAPTER 10 Customer-Focused Listening 167

you understand what you think I just said, but I’m not sure you realize that what you heard is not what I meant.”

1. How does this statement relate to the topics covered in this chapter?

2. To what extent do you think this statement is true and applicable to service encounters?

3. Relate a personal situation you’ve experienced recently when the outcome was illustrative of this quote, and share it with your class members.

168 PART 3 Communication Skills

CHAPTER 11 Nonverbal Communication, Dress, and Manners

Etiquette is the science of living. It embraces everything.

EMILY POST, AMERICAN WRITER AND SOCIALITE

OBJECTIVES

1. Identify the elements and interpretations of body language.

2. Discuss the importance of having a dress code in the workplace.

3. Cite examples of business etiquette and manners.

169 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

Service Uniforms

When you go to a store or restaurant, do service employees who wear a uniform seem more professional and committed to service? Does it seem that you are served more completely when service profes- sionals wear name tags on their service uniform? Every day service professionals in fast-food restaurants, hotels, and major retail stores, wear uniforms, such as aprons, shirts, or vests. UniFirst, a company that sells uniforms, touts that “Some symbols are world famous, others are less well known. That is also true for the ‘image

uniform.’ When it comes to a positive corporate identity, employees in distinctive uniforms can be a surprisingly powerful symbol.”

Another article in Entrepreneur points out that, “More than 32 million U.S. work- ers go to work each day wearing uniforms. Uniforms can project a consistent and uni- fied image for companies that regularly interact with the public… For employees, uniform programs help them avoid having to buy, clean, and repair their work clothes.”

SOURCES: “Custom Image Programs,” UniFirst Online at http://www.unifirst.ca/products/products_custom_image.html accessed January 20, 2011 and “Making Uniform Decisions” and Entrepreneur, March 2002 http://www.entrepreneur.com/humanresources/managingemployees/article50160.html accessed January 19, 2011.

CUSTOMER-FRIENDLY BODY LANGUAGE “Stop slouching and sit up straight. Stand with your back flat, your shoulders back, your head held high, and your feet planted firmly on the floor.” How many times have you heard this from someone—most likely your mother—over the years? Showcasing our intelligence and professional abilities is as much about presentation, including body language, dress, and manners, as it is about verbal communication.

The Importance of Body Language As a CSR, remember that, as you communicate, you not only receive body language signals, you send them as well. Body language is a type of non- spoken communication that includes tone of voice, eye movement, posture, hand gestures, facial expres- sions, and more. To really understand the full mean- ing of a message, pay special attention to a person’s

body language, because nonverbal cues are more immediate, instinctive, and uncontrolled than verbal expressions. As such, they bring attitudes and feel- ings out into the open.

According to Tanya Reiman, a body language expert, “during our conversations, especially the first minute, only 7% of the first impression we give is via words. The remaining 93% will be based upon paralanguage; pitch, amplitude, rate, and voice qual- ity of speech as well as body language.”1

Body language communicates our attitudes to customers, and it can either reinforce or contradict our words. We react more to what we think someone meant than we do to the words he or she actually said. For example, you may tell a customer that you are happy to help her, but if you frown, slump, or refuse to make eye contact, in most cases, the cus- tomer will not believe you. This is because people

1http://www.tonyareiman.com/articles/body_language accessed January 20, 2011.

170 PART 3 Communication Skills

are more likely to believe nonverbal signals, such as a frown or a lazy posture, than words.

Body language is a crucial communication tool for delivering great customer service. Figure 11.1 describes several body language signs and their pos- sible meanings. Understanding body language in the workplace isn’t trivial—it is a career necessity, because interpreting it well will give you a big advantage when serving diverse customers.

Interpreting Body Signs Positive body language, besides communicating an attitude of caring and cooperation, conveys profes- sional stature and self-confidence. For example, lis- teners consider those who speak with conviction in a calm voice to be competent and trustworthy. Learn- ing the major elements of body language that follow and how to interpret them during service exchanges will give you more confidence when communicating on the job.

Eye Contact The eyes communicate more than any other part of the human anatomy. For example, staring or gazing at others can create pressure and tension. What is more, fixing one’s gaze at someone without any other gesture, such as nodding or saying “I see” can make someone nervous. Rolling your eyes sends the message that you aren’t taking the other person’s ideas seriously. Shifty eyes and too much blinking can suggest deception; whereas, people with eye movements that show they are relaxed and

Figure 11.1 Body Language

REMEMBER THIS

NONVERBAL BEHAVIOR INTERPRETATION

Brisk, erect walk Confidence

Standing with hands on hips

Readiness, aggression

Arms crossed over chest Defensiveness

Walking with hands in pockets, shoulders hunched

Dejection

Putting hand to cheek Evaluation, thinking

Clasping hands behind back

Anger, frustration, apprehension

Resting head in hand, eyes downcast

Boredom

Rubbing hands Anticipation

Gesturing with open palm

Sincerity, openness, innocence

Pinching bridge of nose, eyes closed

Negative evaluation

Tapping or drumming fingers

Impatience

Tilting head Interest

Stroking chin Trying to make a decision

Looking down, face turned away

Disbelief

Biting nails Insecurity, nervousness

Ethics / Choices A manager says he is very interested in receiving

suggestions from you; however, while you try to

outline an idea for improved customer data secu-

rity, he reads his mail, accepts incoming phone

calls, and motions you to keep talking. How

would you handle this situation? More impor-

tantly, how would this exchange make you feel?

Can you “hear” a smile on the phone?

je nt ak es p ic tu re s/ iS to ck p ho

to .c o m

SOURCE: Used with permission of SPARC/DeltaBravo.net http://deltabravo.net/ accessed January 19, 2011

CHAPTER 11 Nonverbal Communication, Dress, and Manners 171

comfortable, yet attentive to the person they are con- versing with, are seen as more sincere and honest. Because of increasing diversity in the marketplace, you may encounter customers from other cultures in which direct eye contact is considered offensive. Be sensitive and take your cue from the customer.

Voice You may have noticed that you can “hear” a smile on the phone. Your tone of voice can sound either interested and caring, or aggressive. Interested and caring works best for most customer situations. Notice the tone of voice others use and what feelings that tone evoke in you. Tone of voice is especially important on the phone, when visual cues are miss- ing from the conversation.

Smiling Show customers you enjoy helping them by smiling at appropriate times. If you smile even when you are not feeling your best, your own brain does not distinguish the difference and sends signals that you are feeling upbeat and positive. The result can be that you cheer up yourself—and the cus- tomer. However, avoid smiling when a customer is expressing anger. If you do, you may upset the cus- tomer even more by making the customer feel that you are not taking his or her issues seriously.

Posture Slouching and leaning postures send the message, “I’m tired, bored, or uninterested in your concerns.” A military stance is unnecessary, but an alert posture reinforces the customer’s feeling that you are interested in helping. Remember also not to crowd a customer and to provide enough personal space between the two of you. Personal space refers to the distance between people as they interact and communicate.

Gestures Gesturing, especially during tense con- versations, can mean the difference between sending a message of trust and cooperation and one of suspicion. For example, placing your hands on your hips typically conveys aggression. Crossing your arms over your chest suggests defensiveness. Slamming something down abruptly indicates you are angry. Become aware of your hand movements as they are the punctuation marks to the words you use.

Author Joy Davidson notes that “By paying careful attention to body language, and noticing when someone makes a sudden transition from one attitude to another, you’ll have a good idea of what the other person is thinking—whether or not that’s what he or she is saying.”2 As you communicate with customers, be mindful of these four typical interpretations of notable body language cues:

1. Openness and warmth: open-lipped smiling, open hands with palms visible

2. Confidence: leaning forward in the chair, keeping the chin up, putting the tips of the fingers of one hand against the tips of the fingers of the other hand in a “praying,” or “steepling,” position

3. Nervousness: smoking, whistling, fidgeting, jiggling pocket contents, clearing the throat, running fingers through the hair, wringing hands, biting on pens or other objects, twiddling thumbs

4. Untrustworthiness or defensiveness: frowning, squinting, tight-lipped grinning, crossing arms in front of the chest, darting eyes, looking down when speaking, clenching hands, pointing with the fingers, rubbing the back of the neck

Understanding other people’s body language is not enough for effective communication. CSRs must understand their own body language as well, because controlling nonverbal signals can improve their image and increase their success with customers. Joy Davidson suggests practicing the following ges- tures in front of a mirror. Doing so, she suggests, will help the practitioner become “confident, open and in control”:

• Walk with a brisk, easy stride and with eyes looking forward.

• Stand evenly on both feet. Keep your arms relaxed and casual. For example, keep one hand in your pocket and use the other one for gesturing as you speak.

2Joy Davidson, “Office Tics—Understanding Body Language,” Men’s Fitness, July 1998. http://findarticles.com/p/articles/mi_m1608/is_n7_v14/ai_20946890/?tag=- content;col1 accessed January 20, 2011.

172 PART 3 Communication Skills

• Move slightly closer to others if you want to warm up the relationship. Avoid hostile postures, such as hands on your hips or clasped behind your head. Also avoid defensive gestures, such as turning your body away from the listener.

• Look at others straight on. Meet their eyes and then occasionally let your gaze drift elsewhere to keep from staring.

• Keep your gestures loose, yet controlled. If those around you seem reserved or nervous, avoid excessively exuberant or frantic movements.3

DRESSING TO MAKE A GOOD IMPRESSION As noted throughout this text, as a CSR, you must have technical skills, communication skills, and interpersonal skills. To showcase these abilities, you also need image skills. The importance of image and attire in the business world is very real. Whether you wear a uniform as discussed in our opening feature or your own clothes, your image is like the weather—people notice when it is extremely good or extremely bad. Your image is your reputation and a reflection of how others perceive you, both through your conversation and appearance.

When people look at you and see the way you act, as well as the way you dress, they draw impres- sions concerning your ability, your credibility, and,

most importantly, whether you are sincere and should be taken seriously. The bottom line, however, is that people want to be taken seriously, and attire can help or hurt in that effort.

Workers today do not dress as formally as they once did, yet the concept of dressing for suc- cess is just as relevant, given the competitiveness of today’s workplace. Knowledge and skills are instru- mental, but image and appearance still continue to be key factors in moving into better jobs. To achieve success, you must look successful by pre- senting an image of competence, self-confidence, and professionalism.

Most of us have heard the expressions, “You never get a second chance to make a first impres- sion,” and “First impressions are lasting ones.” Whether interacting with fellow employees on the job or meeting with customers, your attire, behavior, and attitude say a lot about you. Those who wish to move ahead in their careers must think carefully about what they wear. Clothing choices can help or hinder those goals.

Dress Code While employees must decide what to wear to work every day, employers must decide what parameters to put on that decision and how to enforce those guidelines. A generation ago, most professional workers were expected to dress up for work, wearing business suits that demonstrated their conformity with corporate America. Today, most workplaces allow business casual dress, a more relaxed look. This allows workers to express their individuality— and therein lies the problem.

What happens when a worker’s choices do not conform to the image that the employer wants to project to customers? Company dress codes are pro- tected by law, and employers in the United States have a legal right to ask you to adhere to them. In an article entitled “Dress for Work Success: A Business Casual Dress Code,” Susan M. Heathfield notes: “A work dress code is a set of standards that com- panies develop to help provide their employees with guidance about what is appropriate to wear to work.” Heathfield rightly observes that some dress codes

WHAT DO YOU THINK 11.1

Do you agree with the statement “Actions speak louder than words”? In what ways does this thought apply to your service experiences? Does it support or refute them? Record your opinion in your journal.

3Ibid.

CHAPTER 11 Nonverbal Communication, Dress, and Manners 173

may require formal attire, while others may permit business casual and even casual style clothing. The degree of formality required in a company dress code is usually contingent upon the frequency of face-to- face interaction between employees and customers.4

On the other hand, a casual dress code is usually allowed if customers do not visit that business loca- tion. However, not all casual clothing is suitable for the office. Heathfield suggests these guidelines to help you avoid what is inappropriate to wear to work.

• Clothing that reveals too much cleavage, your back, your chest, your stomach, or your underwear is not appropriate for a place of business.

• Any clothing that has words, terms, or pictures that may be offensive to other employees is unacceptable.5

When deciding on an appropriate dress code, most organizations take into consideration the fol- lowing three factors:

1. The business’s public image

2. The nature of the work performed by the employees affected by the dress code

3. Safety standards

Some employers oppose casual dress because, in their opinion, too many workers push the bound- aries of what is acceptable. They contend that ab- senteeism, tardiness, and flirtatious behavior have increased since dress-down policies were adopted.

Regardless of what critics say, employees gener- ally enjoy casual dress policies. Supporters argue that comfortable clothes and a more relaxed working en- vironment lift employee morale, increase employee creativity, and improve internal communication. Employees also appreciate reduced clothing-related expenses. Regardless of how informal the outfit, clothes should always be clean and pressed, stain- and odor-free, and not ripped, torn, or frayed.

For an organization, providing a reasonable dress code is important for a number of reasons.

• Employees need to exhibit the look that confirms professionalism for customers and co-workers.

• Managers need specific guidance on what is appropriate for their staff to wear to work.

• Different managers, in different departments, have different standards for what is fitting work attire. Employees, sometimes rightly, ask why certain clothing is acceptable in one department and not in another.

• Employees complain to their supervisors and the human resource department when they feel other employees are dressed inappropriately. Without a dress code in place, there is no standard to assess whether this is true.

For a description of a typical business casual dress code for employees who regularly interact with customers in person, see Figure 11.2.

Ideally, each company has developed a written description of the types of clothing that are acceptable.

What attitude does each worker project in his choice of dress?

Ph o to d is c/ G et ty

Im ag es

Ph o to d is c/ G et ty

Im ag es

4Susan M. Heathfield, “Work Dress Code,” about.com Human Resources, http:// humanresources.about.com/od/glossaryd/g/work_dress_code.htm accessed January 19, 2011. 5Susan M. Heathfield, “Dress for Work Success: A Business Casual Dress Code,” About.com Human Resources, http://humanresources.about.com/od/workrelation- ships/a/dress_code.htm accessed January 19, 2011.

174 PART 3 Communication Skills

Some companies seek legal counsel to ensure that their policies do not discriminate against men or women and that the wording is explicit. By using common sense and exercising good judgment, dressing to make a good impression is easy. Following is a list of suggested non-clothing guidelines covering hair, nails, and makeup, in business today from an article that appeared in Ebony entitled “Dressing for Success in Corporate America”:

• Hair Today, facial hair is commonplace and hair length runs from the shaven head to a neatly tied ponytail. Your hairstyle should be neat, and your hair color should be natural looking and comple- mentary to your complexion.

• Nails Long, elaborately decorated nails may be frowned upon in many companies. Short, clean

nails in a French manicure or one-tone polish (light pink or earth tones) are always stylish. For men and women, clean and cared-for nails send a positive message to customers.

• Makeup Your makeup should be subtle and paired to your overall look. Choose shades that are nat- ural and flattering to your complexion. The nat- ural look with polish is the hallmark of good grooming.

• Jewelry For both men and women, jewelry worn in an office environment should be in good taste and not flamboyant or distracting. Investing in jewelry

Figure 11.2 Business Casual Dress Code

REMEMBER THIS

CLOTHING SUGGESTED NOT RECOMMENDED

Slacks, Pants, and Suit Pants

Slacks and other cotton or synthetic material pants, wool pants, flannel pants, dressy capris, and nice looking dress synthetic pants are acceptable.

Inappropriate slacks or pants include jeans, sweatpants, exercise pants, Bermuda shorts, short shorts, shorts, bib overalls, leggings, and any spandex or other form-fitting pants such as people wear for biking.

Skirts, Dresses, and Skirted Suits

Casual dresses and skirts, and skirts that are split at or below the knee are acceptable. Dress and skirt length should be at a length at which you can sit comfortably in public.

Short, tight skirts that ride halfway up the thigh are inappropriate for work. Mini- skirts, skorts, sun dresses, beach dresses, and spaghetti-strap dresses are not acceptable.

Shirts, Tops, Blouses, and Jackets

Casual shirts, dress shirts, sweaters, tops, golf- type shirts, and turtlenecks are acceptable attire for work. Most suit jackets or sport jackets are also acceptable attire.

Inappropriate attire for work includes tank tops; midriff tops; shirts with potentially offensive words, terms, logos, pictures, car- toons, or slogans; halter-tops; tops with bare shoulders; sweatshirts; and t-shirts unless worn under another blouse, shirt, jacket, or dress.

Shoes and Footwear

Conservative athletic or walking shoes, loafers, sneakers, boots, flats, dress heels, and leather deck-type shoes are acceptable for work.

Flashy athletic shoes, thongs, flip-flops, slip- pers, and any shoe with an open toe are not acceptable in the office.

Hats and Head Covering

Head covers that are required for religious purposes or to honor cultural tradition are allowed.

Hats are not appropriate attire in the office.

6 “Dressing for Success in Corporate America,” Ebony, January 2001, http:// findarticles.com/p/articles/mi_m1077/is_3_56/ai_68504377/ accessed January 20, 2011.

SOURCE: Susan M. Heathfield, “A Relaxed, Casual Dress Code,” About.com Human Resources, http://humanresources.about.com/od/workrelationships/a/dress_code.htm accessed January 19, 2011.

CHAPTER 11 Nonverbal Communication, Dress, and Manners 175

and accessories that showcase your distinctiveness is a good idea. For example, colorful silk scarves, pins, and bracelets can add a touch of individuality and interest to your wardrobe.

• Perfume and cologne Use discretion and taste in choosing office scents. Fragrances can linger in a closed office and seem stronger to others than you believe they are. Also, be aware some people are chemically sensitive to perfume and cologne and increasingly places of business are discouraging their use.

Facial Piercings and Body Tattoos We make hundreds of judgments about people every day, many of them based on personal preferences. Personal prejudices don’t stop at the office door, and this can pose a particularly compromising situa- tion for employers relative to piercings and tattoos.

In 2010, Sara Dobosh reported that the Food and Drug Administration estimated that more than 45 million Americans have at least one tattoo, and a 2010 Pew Research report revealed that 38 percent of 18–29 year olds sport a tattoo, while 32 percent of the 30–45 demographic have body art.7

Employees often feel the employer has no right to restrict the display of piercings and tattoos. That is not true. In an article entitled, “Body Art in the Workplace,” the author notes that “companies can limit employees’ personal expressions on the job as long as they don’t infringe on employees’ civil liber- ties. According to the Equal Employment Opportu- nity Commission (EEOC), employers are allowed to impose dress codes and appearance policies as long as they do not discriminate or hinder a person’s race, color, religion, age, national origin, or gender.”8

As noted by Ira S. Wolfe, the reason behind policies forbidding piercings and body art always comes back to the impression made upon, and reac- tion elicited from, the customer: “Companies faced

with inked and pierced applicants can demand eye- brow rings or tongue rings be removed and tattoos covered to help project the proper image to custo- mers. That is because some customers, particularly older ones who dislike tattoos, could be turned off and they may be less likely to do business with it. Loss of business is a justifiable reason to restrict the display of body art in whatever form it takes.”9

PRACTICING ETIQUETTE AND MANNERS In light of our shrinking world, as well as the expanded media coverage throughout that world, good business etiquette is crucial, as behaviors are

Ethics / Choices Anika, a 19-year-old new hire and community

college student, stormed out of the customer ser-

vice manager’s office and belligerently said for all

to hear, “She can’t tell me what to wear! This is

America and I’ll wear what I want to work!” In

your opinion, is this type of thinking by workers

unique to Anika or is this attitude becoming the

routine in today’s workplace? Discuss.

WHAT DO YOU THINK 11.2

In a particular work position you’ve held over the past few years, what was the acceptable dress code you followed? Was there a written dress code, or did you tend to dress like others in that work environment? Evaluate the appro- priateness of your dress to that business setting and record your thoughts in your journal.

7Sara Dobosh, “Piercing the Workplace Stereotype,” FOXBusiness, July 22, 2010, http://www.foxbusiness.com/personal-finance/2010/07/22/piercing-workplace- stereotype/ accessed January 19, 2011. 8Regina M. Robo, “Body Art in the Workplace,” mysalary.com, http://www.salary. com/Articles/ArticleDetail.asp?part=par228 accessed January 18, 2011.

9Ira S. Wolfe, “Tattoos and Body Piercings Get Under Manager’s Skin,” http:// ezinearticles.com/?Tattoos-and-Body-Piercings-Get-Under-Managers-Skin&id= 4416050 accessed January 18, 2011.

176 PART 3 Communication Skills

more closely scrutinized than ever in the past. Proper business etiquette goes beyond using the right fork at a lunch meeting, to include developing effective people skills and practicing politeness. In general, business etiquette dictates the rules of acceptable behavior that identify the application of correct or polite manners in a typical business situation.

Etiquette is about presenting yourself with the kind of polish that shows you can be taken seriously. Many potentially worthwhile and profitable alliances have been lost because of an unintentional breach of manners. Most behavior that is perceived as disre- spectful, discourteous, or abrasive is unintentional and could have been avoided by practicing good manners or etiquette. Basic knowledge and practice of etiquette is a valuable advantage, because, in a lot of situations, a second chance may not be possible or practical.

Any time you make contact with a customer, you are making a mini-presentation of yourself, ul- timately representing your company, service, and products. In today’s stress-filled world, coupled with the ups and downs inherent in everyday life, experiencing day-to-day pleasantries is very nice. Good manners are said to be two-thirds common sense and one-third kindness. Experiencing a moment of pleasant kindness can be uplifting. Respecting others is truly empowering as well.

No matter how tired you might be, or how abrasive a customer might become, service profes- sionals must practice good manners. An environ- ment in which people treat each other with kindness and consideration is certainly one in which a client enjoys doing business. Learning the rules of business etiquette is not hard to do, nor is it costly. In fact, practicing etiquette skills is one of the best professional development tools workers can use to increase their chances of success.

Employers value well-mannered employees be- cause they are a reflection of the company itself. Do people really notice good manners? Even though lifestyles are more informal and relaxed in today’s society, good manners are appreciated. Using polite language, turning off cell phones out of courtesy, holding the door, sending a thank you note, offering

a smile—these are just a few favors people appreci- ate. Saying “please” and “thank you,” warmly greet- ing customers and co-workers, and showing patience are essential skills for anyone’s success.

The rules of etiquette can be compared to a common language that all successful professionals must learn to speak. People make choices in the business arena, and they choose to do business with people they like and respect. Etiquette skills can help establish productive relationships with colleagues and customers. Successful relationships begin when you exhibit courtesy, respect, and con- cern for the comfort of others. In the end, of course, better relationships mean better business.

Soft Skills Etiquette at work includes all aspects of the work environment—completing work as promised, get- ting to work on time, being courteous to others, being an active member of the work team, practicing good human relations, listening, following through on commitments made, and solving problems in a timely and effective manner. In the workplace, these are referred to as soft skills or people skills.

Some may ask whether soft skills like punctu- ality, positive attitude, and cooperation are more im- portant than knowing how to perform a job. These soft skills are just as important because they help service professionals become successful. For exam- ple, a dependable worker will most likely be given more responsibility, advancements, and pay in- creases over an undependable co-worker. People who display refinement make better impressions, and others want to be around them. Customers do business with people they like; it is that simple.

CUSTOMER SERVICE TIP

Behaviors that go against kindness, logic,

and efficiency get in the way of good

business. In fact, they lead to bad business.

CHAPTER 11 Nonverbal Communication, Dress, and Manners 177

People with good attitudes usually respect their co-workers, accept responsibility, and accomplish more each day. Your attitude is evident in your body language, the way you complete tasks, your attention to detail, your consideration of those around you, the way you take care of yourself, and your general approach to life. Given the ubiquitous usage of today’s handheld technology devices, a few words are in order concerning their presence in to- day’s office environment. A good cue to adhere to is: We should conduct ourselves differently with them in the workplace than in our home or dorm room. For example, texting personal messages, placing pri- vate phone calls within earshot of others, surfing the Internet, or e-mailing friends from a smartphone are inappropriate actions to take while working. Good manners, a dedicated attitude, respect for others, and self-discipline work together to make good things happen for customer service representatives.

Unfortunately, the importance of these soft skills is often undervalued, and there is far less train- ing provided for them than hard skills (i.e., docu- ment creation or telephone techniques). For some reason, organizations seem to expect that people know how to behave on the job. They tend to as- sume that everyone knows and understands the im- portance of being on time, taking initiative, being

friendly, and producing high-quality work. It’s just not enough to be highly trained in technical skills, without developing the softer, interpersonal and relationship-building skills that help people to com- municate kindheartedly and collaborate effectively.

Cultural Politeness As businesses become increasingly more global and bring people of diverse cultures and backgrounds closer, learning the skills of proper etiquette on a global level is one of the most important elements for service success and customer growth. The ability to appreciate and respect cultural differences can be very helpful in understanding why people act in certain ways and gives you a better understanding on how you should act while conducting business with them.

What needs to be said here about different cultures is just that—they are different. No oneMAKE IT A HABIT

Minding Your Manners

Endeavor to avoid business etiquette blunders

with customers by remembering to:

• Use a firm handshake when you are

introduced to a customer because it

demonstrates professionalism and self-

confidence.

• Never interrupt when someone is speak-

ing; speak only when the other person has

stopped talking.

• Smile and make eye contact with custo-

mers because it makes them feel instantly

recognized.

CUSTOMER SERVICE TIP

Respect is at the heart of good manners.

All good manners are based on thought-

fulness for others and respect for them

as individuals of equal value.

Why is showing politeness to others especially important in today’s global service industry?

D ig ita l V is io n/ G et ty

Im ag es

178 PART 3 Communication Skills

can expect to know every nuance. Mistakes will be made and unintentional blunders committed, but some of these errors can be avoided by suppressing one’s own cultural biases. Most mistakes come in the form of spoken and body language or omitting something that should have been taken care of.

We all carry our own culture with us, so every- thing we see, hear, or feel is filtered through our cultural biases. Americans are often noticeable be- cause they tend to be unreserved in their behavior and informal and casual right from the start in both business and social relations. For example, many people are more apt to use an acquaintance’s first name after meeting him or her. This is a tradition unheard of in some cultures. Using an acquain- tance’s first name can be somewhat offensive to some, especially in countries where it is very impor- tant to build relationships before business takes place. The Etiquette International website provides infor- mation to help people become more poised, po- lished, and professional when interacting with persons of another culture and offers the following suggestions relative to time, greetings and names, and personal space and touch. Here are some examples:

• Time The website notes that “Differing attitudes toward time are the major source of annoyance in international interactions, yet few people give it much thought. How far in advance appointments and bookings must be scheduled, and to what extent punctuality is stressed or ignored are all important considerations.” Americans, who believe that time is something to be watched, organized, and managed carefully may experience conflict when dealing with a customer or colleague from a culture that is more relationship-oriented, and who “considers time as flowing and flexible, beyond human control, and to be accepted whatever happens.” As the website advises, “It pays to develop some flexibility to avoid angry outbursts.”

• Greetings and Names It is important to remember that, greetings indicate respect for the status of the recipient, and introductions must likewise be aware of considerations of rank and custom. “Who

acknowledges whom, how deeply one bows, and how long speaks volumes.” It is also important to be aware of which cultures invert the arrangement of first name and surname. Otherwise, one may commit the unintentional but still potentially of- fensive familiarity of addressing someone by his or her first name. As the website advises, “Never call someone by the first name unless you are specifi- cally asked to do so; virtually nowhere else are people as informal in the manner of address as in the United States. Don’t forget the honorifics or titles that go with the name. They are usually a point of pride.”

• Personal Space and Touch The differences in space and touch among cultures reflect each society’s attitudes and values. Understanding and appre- ciating these differences is vital to successful intercultural communication. “Infringing upon another’s personal space or inadvertently backing away when they enter your bubble can send unintended negative messages. Touching someone—a hand on the forearm, an arm around the shoulder, a pat on the back—is one of the easiest ways to violate personal space.”10

Attention to detail is not only a polite practice; but in today’s economy, it is a very smart business practice. Sensitive and professional interactions always promote successful cultural exchanges.

WHAT DO YOU THINK 11.3

Describe two encounters you’ve recently experienced with a person who demonstrated a) poor etiquette or manners and b) good etiquette or manners. Contrast the impres- sions you were left with in both situations and record them in your journal.

10 “First Get Good,” Etiquette International, http://www.etiquetteinternational.

com/Articles/FirstGetGood.aspx accessed January 20, 2011.

CHAPTER 11 Nonverbal Communication, Dress, and Manners 179

WRAPPING UP To say service professionals should make a deter- mined effort to do the right thing and treat custo- mers as they would like to be treated sounds like common sense. It takes a determined awareness to understand and use Nonverbal Communication, Dress, and Manners in the best way during interac- tions with customers. Whether individuals are face- to-face or at a distance from each other, how either party respects and makes the other person feel can manifest in an exciting beginning or an unfortunate ending to a service relationship. Apply your knowl- edge of manners as you study the last chapter in the text, Telephone and Digital Communication.

SUMMARY

• Using appropriate body language is critical when dealing with customers and includes tone of voice, eye movement, posture, hand gestures, and facial expressions.

• Dressing appropriately and being well groomed make a statement about you and your employer.

• Good manners contribute to a positive first and lasting impression in social and business situations, as well as give you a favorable repu- tation, especially with customers from other cultures.

FOCUS ON. . . BEST PRACTICES

Job Interview Reminders

Do you get nervous before going out on a job inter-

view? For example, how do you prepare yourself for a

customer service job interview prior to leaving the

house in terms of dress and general readiness to pres-

ent yourself in the best way? Because you might not

know prior to the interview what the organization’s

dress code is, it is always a good idea to err on the side

of dressing conservatively.

The Economic Times reported in 2009 about a sur-

vey conducted by the jobsite CareerBuilder, that asked

over 2,700 hiring managers about common mistakes

made by job candidates that affected the outcome of

their job candidacy. According to the survey, 57 per-

cent reported that dressing inappropriately is the

most common mistake committed by a job seeker

during the interview. The survey noted the second

most common mistake was “appearing disinterested”

during an interview. Other common mistakes included

speaking about previous jobs in a negative mode

(52 percent), appearing to be arrogant (51 percent),

and using a mobile phone (46 percent) during the

interview.

SOURCE: “Dress Smart for Job Interview: Survey,” February 20, 2010, http://economictimes.indiatimes.com/news/news-by-industry/jobs/Dress-smart-for-job-interview- Survey/articleshow/5627240.cms accessed January 18, 2011.

180 PART 3 Communication Skills

KEY TERMS

body language personal space

dress code business etiquette

soft skills

CRITICAL THINKING

1. Have you ever left a job interview thinking that you did not make a very good impression? In hindsight, can you analyze why you had that feeling and describe it? Might you have com- mitted one of the job interview mistakes noted in the Best Practices feature?

2. Of all the elements that constitute body lan- guage, which three would you describe as the most important when serving customers? Explain.

3. If one customer expressed confidence and another expressed nervousness, what types of

body language signals would you look for in each instance? How good are you at inter- preting body language during customer service exchanges? Discuss.

4. In your opinion, what societal factors make it difficult for organizations to establish a proper dress code in today’s workplace?

5. When shopping in a retail store or online, how important is it to you for service professionals in person or through virtual chats to practice good business etiquette and manners? Explain.

WHAT DO YOU THINK NOW?

Project 11.1 Assume you are doing a classroom presentation on A CSRs Image in the Workplace. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some service attitudes that have an effect on projecting a successful workplace image? What service environments may diminish a CSR’s work appearance and behavior? What manners are needed to be a top service provider? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 11.2 Soft Skills With two classmates, research a career exploration website or a number of websites for large corporations, and locate several job descriptions for customer service repre- sentative positions posted within the last 30 days in a major city near you. Pay particular attention to the descriptions that request soft skills, such as punctuality, positive attitude, willingness to learn, and cooperation.

As a result of your group’s research, prepare a simple poster of the printouts of job descriptions you were able to locate, and highlight the soft skills that are mentioned. Present your poster and discuss noteworthy findings to the class, as directed by your instructor. As an alternative, follow your instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

CHAPTER 11 Nonverbal Communication, Dress, and Manners 181

COMMUNICATION SKILLS AT WORK

Project 11.3 Good Manners Strategies Manners are being taught less and less. Supporters of this statement believe that knowing and practicing good manners is not a matter of vanity, snobbery, or trying to impress, but simply a matter of being kind and sensitive to the needs of others. The use of good manners creates a considerate, gracious, and respectful atmosphere in which to live and work.

Form a group and discuss some strategies for dealing and communicating with per- sons who do not use good manners when interacting with others in the workplace. Report back to the class on the top three strategies your group developed. As an alternative, follow your instructor’s directions to join a group and use the instructor- designated discussion board to complete the group project.

DECISION MAKING AT WORK

Project 11.4 Manners and Business Etiquette While eating lunch at the food court in the mall, Simon, a CSR at a retail store within the mall, witnessed a customer service incident in action. A woman ap- proached the counter with a crushed Styrofoam cup and said, “This cup fell off our table and broke. I need another drink and I need someone to come clean up our table and the floor.” The tone of her voice suggested that somehow the restau- rant was responsible for her broken cup. At that point, Simon noticed that the staff quickly gave her a new drink. Then the manager appeared with a smile and said, “I would be glad to clean that up for you.” The staff who served the woman was exemplary in their manners and etiquette throughout the service exchange. When Simon went back to work at the department store, he relayed his observations to his colleagues.

1. What do you think the likelihood is of this type of customer service practice in most businesses today? Can you name any businesses that provide exemplary etiquette and manners similar to that shown at the restaurant?

2. In your opinion, what do you think contributes most to staff with manners and etiquette? Were they hired with these qualities or were they trained in these behaviors, in this case, by the restaurant?

182 PART 3 Communication Skills

CASE STUDY

Project 11.5 Enforcing a Dress Code Cecilia recently went to work for a telecommunications firm in San Francisco as the receptionist. In the first week, several other employees went out of their way to go through the lobby just to see her. She is very attractive, and everyone soon learned she was a former model at local trade shows.

Cecilia’s image started to create problems within the company. Though Cecilia was a nice person and didn’t appear conceited, her appearance was a distraction to the organization. The office manager discovered that work had slowed down since Cecilia was hired. For instance, male sales reps were stopping by and spending time chatting with her; female workers were making catty remarks behind her back and seemed to be spending more time having negative conversations. Three comments overheard were, “She’s too perfect,” “Cecilia wears way too much makeup,” and “She dresses too nice for this place.”

Make notes regarding what is happening here. Include the roles in this situation of the receptionist, visitors to the front lobby, other employees, and the office manager. Each person or group is playing a role. Using the questions below as a guide, be prepared to discuss how you would resolve this situation.

1. Do you think the office manager should view this problem as one that will work itself out with time? Why or why not?

2. What steps should be taken to get work back on track? What should the manager say to the other workers? Is Cecilia to blame at all in this situation?

CHAPTER 11 Nonverbal Communication, Dress, and Manners 183

CHAPTER 12 Telephone and Digital Communication

Regardless of the changes in technology, the market for well-crafted messages will always have an audience.

STEVE BURNETT, OWNER, THE BURNETT GROUP (MARKETING CONSULTANTS)

OBJECTIVES

1. Detail the essential customer service skills needed when communicating over the phone.

2. Describe the purpose and extent of business use of voice and virtual technologies.

3. Evaluate the quality and delivery of your service voice when speaking on the phone.

4. Distinguish between inbound and outbound telemarketing activities.

5. Identify and describe Web-driven service technologies.

184 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

BUSINESS IN ACTION

SKYPE

It’s hard to believe that you can place an overseas or cross-country call for free, but that is exactly what you can do with Skype. This software application allows users to make voice and video calls over the Inter- net 24/7/365.

Its incredible usage around the world is phenomenal, and there appears to be no stopping its popularity and growth. According to Courtney Boyd Myers, there were over 27 million Skype users online as

of January 10, 2011, with Skype reporting an average of 124 million users per month. Newsweek reports that “Skype may find that the ocean of money once available to telephone companies will become just a pond as more and more calls are routed over the Internet.”

Whatever Skype becomes in the next ten or so years, today it is serving a vacant niche that consumers and businesses alike appreciate and use.

SOURCES: Courtney Boyd Myers, “Skype Signs On Over 27 Million Users In One Day,” January 1, 2011, http://thenextweb.com/apps/2011/01/10/skype-signs-up- over-1-million-users-in-one-day/ accessed February 1, 2011 and “The Future of Skype,” http://www.newsweek.com/2010/08/10/the-future-of-skype.html accessed January 31, 2011.

ANSWERING THE PHONE Despite the increased popularity of using the Inter- net to conduct business, the phone continues to be a vital link between businesses and customers. Whether a caller is asking a question about office hours or ordering merchandise, the politeness and helpfulness of the person at the other end of the phone are paramount for building relationships, instilling trust, creating a positive experience, and, ultimately, driving repeat business for an organization.

Phone greetings are critical because they help form first impressions. From a new customer decid- ing whether to do business with you to an irate cus- tomer judging your competence, how you answer the phone makes a difference. When companies choose employees who will give that first greeting to custo- mers, it is important to select individuals who sin- cerely care about the business and can convey that sentiment to customers who call. How many times have you called a company at its main number, only to be put on hold immediately by the receptionist, without even getting a chance to say anything? Or

worse, gotten trapped in an automated phone system intentionally designed to deprive you of contact with a live person?

When developing that all-important opening message, remember that there is power in simplicity. For best results, incorporate three fundamental rules into your first message: be pleasant, brief, and sin- cere. The key elements of a phone greeting are the department or company name, your name, and an offer of assistance. An example from someone in the customer service department might sound like this: “Customer service, this is Stacey. How may I help you?” It may sound simplistic, but practice saying your standard phone greeting until you can hear

CUSTOMER SERVICE TIP

Make your voice friendly and approach-

able when speaking to a customer on the

telephone.

CHAPTER 12 Telephone and Digital Communication 185

each word clearly. Keep in mind that even though you have spoken the same greeting all day long, this is the first time your caller has heard it.

A pleasant greeting sets the stage emotionally, and listeners tend to mirror the emotional state of a speaker. It is typical for people to respond in kind to what they are getting. For example, if you answer the phone gruffly, chances are the caller may become defensive, but if you answer the phone pleasantly, the caller will be more agreeable. Figure 12.1 pro- vides additional phone tips.

The Basic Process The manner in which CSRs handle themselves on the phone is critical, and the following steps provide the basic process service-type communications should follow:

1. Stay close to the phone. Answer the phone by the third ring. When customers call, their hope is not to leave a message, but to speak with a live

person, conduct business, and move on to their next activity.

2. Be courteous and polite with each caller. Custo- mers deserve to be treated with respect, no matter what message you are delivering to them.

3. Use a computer or have paper and pencil handy to take notes. This will allow you to focus on solving the problem rather than remembering a myriad of significant details.

4. Bring closure to the call. Customers need to know what to expect next and when their concerns will be resolved.

Transferring Calls To provide the best service for customers, sometimes you will have to transfer callers to another person or department. Unfortunately, this is something that often irritates customers. If you are receiving a large number of transferred calls, perhaps other team

Figure 12.1 Telephone Tips

REMEMBER THIS

Use welcoming words. Answering callers’ requests with, “I’ll be glad to help you” makes customers feel more confident in your ability.

Use the caller’s name often. A caller’s name is the most personal possession he or she has. By recognizing and using it frequently, you make the caller feel better about the service.

Maintain an enthusiastic and person- able tone.

Your voice is an all-important delivery system for your words. Speak distinctly and clearly, while matching your talking speed and volume to that of the other party.

Be flexible. Callers want to know what you can do, not what you cannot do. First-call resolution is the goal.

Avoid negative and controlling words. “Problem,” “complaint,” and “You should have...” are words and phrases that can illicit negative responses.

Avoid using abbreviations and techni- cal language.

The caller may not understand industry jargon, which prevents shar- ing effective and clear information.

Give verbal clues to show you are actively listening.

Phrases such as “I see” and “Please tell me more” are welcome words to the caller.

Promise to call back on unresolved issues and then follow through.

If a call involves some research of the facts, assure the person that you will call back before the end of the day, if only to say, “I don’t have the answer yet, but I’m still researching it.”

186 PART 3 Communication Skills

members should have information in response to common customer inquiries in advance, so they won’t have to transfer calls as often. However, when calls must be transferred, keep it simple and positive. Transfer with care, and apply these strategies:

1. State what you can do, not what you cannot do. Turn a negative into a positive by letting cus- tomers know you are acting for their benefit. For example, you might say something like: “I can help you by letting you talk to Nate in Accounts Receivable. Should we get discon- nected, his extension is 530. May I connect you now?”

2. Avoid using the word “transfer.” Customers don’t like this word. Instead, say: “Let me connect you to...” or “I’ll let you talk with...”

3. When transferring a call to someone else, pass along the customer’s name and any facts you have obtained so far. This will make customers feel that they are making progress, because they don’t have to repeat their information. You can pass along customer information in two ways:

• If you have conference call or video chat capability, send the caller directly to the desired party while you are still on the line. You will be able to tell the receiving CSR the essence of the concern or issue while the customer is listening.

• Convey the message to the receiving person while the caller is on hold, so the caller does not have to repeat the information again.

4. Stay on the line. Attempt to become familiar with the general responsibilities of each de- partment and person, so you transfer the caller only once. Also, before transferring a custo- mer’s call, it is good practice to ask for his or her phone number. If you accidentally discon- nect the call, you are prepared to call the cus- tomer back.

5. Do not transfer the customer, if that is his or her preference. Customers will likely tell you if they have already spoken to multiple people. If you are not the correct person to address a partic- ular problem, find out as much as you can

about the situation and agree on a time to call the customer back. Do the research yourself and try to resolve the issue without passing the customer off again.

Placing Callers on Hold If customers don’t like the idea of being transferred, they certainly won’t like the idea of being put on hold. Pushing your hold button a little too quickly or a little too often can easily damage customer re- lationships and should be avoided. The best alterna- tive is not to put a customer on hold at all, but that option is not always reasonable. Ask the caller whether he or she can be put on hold, and then wait for a response before doing so.

When putting a caller on hold cannot be avoided, follow these basic phone courtesies:

• Tell the caller why you would like to put him or her

on hold, and ask for permission to do so. Bear in mind that the caller might not have time to wait and may prefer either to call back or have you return the call later.

• Keep callers on hold no longer than 30 seconds. Time seems to move more slowly when you are waiting on the phone. Thirty seconds seems like much longer to people on hold, and they may become angry and simply hang up.

• Thank the customer for holding. Always say, “Thank you for holding” rather than “I’m sorry you had to hold.” Emphasize the positive by thanking the customer, not the negative by apologizing.

• Offer to call the customer back instead of putting him

or her on hold. If you know the process will take a

Ethics / Choices If an employee is not allowed to use a business

phone to make personal calls, how can these

calls be made? Some personal calls are important

and cannot be made after business hours. In your

opinion, what should a fair policy state about

employees making personal calls while at work?

CHAPTER 12 Telephone and Digital Communication 187

little extra time, offer to call back within a certain time frame, and then make sure you follow through.

• Check back frequently. If resolving the problem is taking longer than you thought it would, return to the caller at least every 30 seconds to explain what’s happening and to ask whether he or she can continue to hold.

Most customers who call businesses under- stand that it could be a while before they speak with a service representative. That doesn’t mean they appreciate waiting in silence. Many companies use a messaging on-hold system, a pre-recorded program for callers to listen to while they are on hold. Companies can choose the system to play music, a voice message, or a combination of both. The advantage of using this phone system is that it lets callers know they are still on the line and wait- ing for the next available person to speak with them. It can also let them know where they are in the call order (queue) and the average wait before they will get a live person on the phone. Many callers find it helpful to have this information so they can de- termine whether they want to hold or call back at a later time.

VOICE TECHNOLOGIES Communicating in the global marketplace is easier for people and businesses because of ground-breaking voice technologies. These technologies include Internet Voicemail Services, Voice over Internet Protocol, and the popular Voice Response systems.

Internet Voicemail Services To manage voicemail better, online voicemail ser- vice providers offer an array of options for busi- nesses that want the convenience of handling voice messages online and a professional sounding “virtual office” presence for callers. Google Voice is an example of a popular Internet-based voicemail service provider.

A virtual voicemail service provides you with a phone number that you can distribute on business cards, flyers, and letterhead. Some virtual voicemail providers allow you to forward your existing home, office, or mobile phone number to the service as well.

Voice over Internet Protocol (VoIP) If you’ve never used or heard of VoIP, get ready to change the way you think about long-distance global phone calls. Voice over Internet Protocol (VoIP) is a method for taking audio phone signals and turning them into digital data that can be transmitted over

WHAT DO YOU THINK 12.1

How many times in the past few weeks have you been put through voicemail jail and were never connected to a live person? Did the experience influence your decision to buy from this business in the future? Record your reflections in your journal.

MAKE IT A HABIT

Handling Irate Callers

With phone technology expanding, irritated

customers can be more sensitive, so make it

a point to:

• Tell the customer the issue is important to

you—for example, by saying, “Thank you

for bringing this matter to our attention.”

• Express a sense of urgency and ownership

regarding the customer’s concern by say-

ing, “I’ll take care of this right away.”

• Apologize at least twice—once on hearing

the problem and again after finding a

solution.

• Always remember to thank customers sin-

cerely for doing business with your

company.

188 PART 3 Communication Skills

the Internet. Skype is one of the most used examples of VoIP. In addition to voice transmission, Skype also allows users to combine video and audio modes through what are called video chats. This visual ap- proach is a more personal way for those involved to feel included in conversations. In addition, it en- hances understanding by allowing for the nonverbal forms of communication discussed in Chapter 11. VoIP is also known as Internet telephony, broad- band telephony, and other names.

Voice Response Systems Any contact with an organization contributes to a customer’s perception about that organization, whether it is with an employee in a phone conversa- tion or through voicemail. Voicemail, which func- tions much as an answering machine does, allows callers to leave a voice message for the called party.

Although voicemail remains popular, do not assume that customers are satisfied with leaving a message. Instead, understand voicemail from the caller’s perspective. Customers want to feel that their phone calls are important to a company. What drives customers to frustration about some phone systems is not the fact that they are automated, but

that they think no one is paying attention to their needs.

A well-designed phone system is fast, easy to use, cost effective, and, most important, caller- friendly. Whether you are planning a simple voice- mail system to take messages or a sophisticated voice-processing system that lets people choose from a menu of recorded options, the key is keeping callers in mind and making the process easy for them to use.

Some companies approach voicemail as a way to reduce head count, and that can be a practical benefit. However, if designed correctly, a greater benefit of using voicemail is providing access to customer ser- vice personnel for customers. A well-phrased message can provide a kind of mini-introduction of the com- pany or person to the caller, giving a hint at person- ality and details about availability. If the person being called listens attentively to voicemail messages, he or she can learn a great deal by paying attention to tone and delivery, An efficiently designed system can be an effective tool for quality customer service. Some tips on maximizing the positive and avoiding the potential negative aspects of voicemail systems are shown in Figure 12.2.

Figure 12.2 Customer-Friendly Voicemail Systems

REMEMBER THIS

Stay on top of it. Update your voicemail greeting frequently, stating the date, which lets callers know you actually use the system. Inform callers your messages are checked frequently, so they have confidence their call will be heard and returned.

Avoid “voicemail jail.” When callers bounce from message to message and can’t reach a live person, they begin to feel uncomfortable and captive to the event. Early on, give callers an easy way to transfer directly at any time to a receptionist by pressing one or two digits on their phones’ keypad.

Keep greetings and instructions short. Strive for a 5-second voicemail greeting and 15 seconds for instruc- tions. Callers get impatient; they want action.

Attempt to give instructions the same way every time.

Always state the action first, then the correct key to press—for exam- ple, “To speak with our receptionist, press zero.”

Don’t make technology a villain. Voicemail should not be used to avoid phone calls. People expect that you will regularly answer your own phone.

CHAPTER 12 Telephone and Digital Communication 189

Recording an Outgoing Greeting It is im- portant that CSRs answer their phones whenever possible so customers don’t get the impression the company is avoiding them and does not want to take care of their needs. The truth is, however, that at times, businesses must use voicemail because CSRs do take lunch breaks and assist other customers, for example.

Follow these suggestions when creating an out- going voicemail greeting:

• State your name, title, and reason you cannot answer the phone at this time. Indicate how often you check your voicemail. CSRs should return calls at least every two hours.

• Ask the caller for key information—name, company’s name, phone number, why the

customer is calling, and when the caller can be reached.

• Always return calls promptly. Customers realize that you may not always have the information when you promised, but calling customers with straightforward updates shows concern and promotes the company’s reputation in a first- rate way.

Leaving a Voicemail Message When making a call, savvy communicators know they might have to leave a recorded message, so they plan before dialing a number. Be clear and brief in any voicemail mes- sage you leave. To deliver a message effectively, move through it quickly, and be straightforward so the receiver understands what is expected by the end of the message.

Here is a plan that works well when leaving voicemail messages:

1. State your name, the date and time, your company name, and why you are calling.

2. Say what you would like the receiver to do in the form of a statement or request, giving a reason if you are prepared to do so.

3. Say, “Thank you.”

4. Finish with, “Feel free to call me back at the following number,” and then state the number slowly and clearly so it can be written down. Repeat the number again for clarity.

Remember that voicemail messages can easily be forwarded, so don’t leave a message unless you are comfortable having it heard by other people.

WHAT DO YOU THINK 12.2

If you were to advise a company you do business with on how to use voicemail more effectively, what two suggestions would you make? Record these in your journal.

CUSTOMER SERVICE TIP

To improve phone communication, speak

as if you were in a face-to-face dialogue—

even smiling and gesturing, if those actions

make you sound more natural.

Is your service voice pleasant, courteous, and helpful when others hear you speak?

Ph o to d is c/ G et ty

Im ag es

190 PART 3 Communication Skills

EVALUATING YOUR VOICE DELIVERY A person’s voice can reveal many emotions: happi- ness, sadness, anger, or even ambivalence. When you speak, customers listen to your tone of voice, words, and overall delivery techniques. Are you sincere? Do you sound helpful in your approach with others? Do you show empathy and concern for their needs? A positive and caring tone in challenging customer situations says, “I understand how you feel and I’d be frustrated, too, if that happened to me.”

The following list offers general guidelines for using your voice effectively, especially while on the phone:

1. Use a steady, moderate rate of speech. Speaking too fast can suggest to the customer that you are nervous or in a hurry. Additionally, listeners may have a hard time understanding a fast

talker. Speaking too slowly can signal that you are bored or lack confidence. Find your balance.

2. Never allow your voice to become overly loud or shrill. If a customer is yelling at you, you may be tempted to respond in kind, but resist that impulse. Maintaining a moderate volume and rate of speech can help calm an upset customer.

3. Increase the energy in your voice. The phone can rob your voice of some of its natural expres- siveness and energy, so be sure to compensate adequately with more enthusiasm.

Phone conversations tend to be rather informal in both business and personal situations. Figure 12.3 shows some noteworthy suggestions to keep in mind when speaking on the phone.

Showing courtesy to others and incorporating good phone etiquette can help businesses gain a com- petitive edge for one basic reason—people are more likely to return to a company and to buy more pro- ducts and services when they are treated well.

Figure 12.3 Acceptable Phone Language

REMEMBER THIS

ACTION ACCEPTABLE STATEMENTS

Introducing yourself

“This is Ken.” “Good morning, Ken speaking.”

Asking who is on the phone

“May I ask who is calling, please?” “Excuse me, who is calling, please?”

Asking for someone

“May I have extension 321?” “Is Charlie available?”

Connecting someone

“I’ll put your call through.” “Please hold while I connect you.”

Taking a message

“May I tell him who is calling?” “Would you like to leave a message?”

Replying when someone is not available

“I’m afraid Tom is not available at the moment.” “I’m sorry, but Tom’s line is busy.”

WHAT DO YOU THINK 12.3

What techniques do you use to establish a personal connection with customers over the phone? Do you modify those techniques when communicating with angry or difficult customers? If so, how? Record your responses in your journal.

Ethics / Choices Sometimes a boss or another employee is on the

phone when you wish to speak to him or her, so

you must wait. What do you do? Do you stand

far enough away so that you do not hear the

conversation or go back to your desk and return

later? Discuss the best way to handle this

situation.

CHAPTER 12 Telephone and Digital Communication 191

TELEMARKETING ACTIVITIES Technology has changed the way companies do business. Forget what you think telemarketing is and embrace the reality that it is used by the smallest to the largest companies in the world to introduce new products, gauge customer satisfaction, and sched- ule qualified sales appointments. Telemarketing is a form of direct marketing. Whether organizations out- source inbound or outbound telemarketing customer service, time and money are saved because businesses do not provide office space for these telemarketers, paying only for the specific services needed.

Most people think of inbound telemarketing as customer support. Inbound telemarketing pro- grams are used mainly by companies to take orders, generate leads, and provide service to customers with questions or concerns. In contrast, outbound telemarketing involves the telemarketer cold calling prospects who are not expecting a call. The two steps needed for businesses to launch an outbound telemarketing campaign are to first define the

targeted market and then develop a script and a tele- marketing list for the outbound telemarketer’s use.

At some point, each of us has received calls from telemarketers, and, chances are, we have responded to them in various ways. Whether a cus- tomer’s response is of interest or an annoyance, part of a telemarketer’s job is dealing with every range of emotion he or she encounters. It takes special people skills when CSRs become telemarketers.

In January 2005, telemarketers and sellers were required to begin searching the National Do Not Call Registry at least once every 31 days and to drop from their call lists the phone numbers of con- sumers who had registered. As a result, the National Do Not Call Registry puts consumers in charge of the telemarketing calls they receive at home.

WEB-DRIVEN SERVICE TECHNOLOGIES A 2010 survey by the U.S. Department of Com- merce reported that “During the first decade of the 21st Century, U.S. broadband Internet connectivity by households has grown dramatically as its impor- tance to our economy and way of life has grown. In October 2009, according to the Census Current Population Survey data, 63.5 percent (75.8 million) of U.S. households used a high-speed Internet service (i.e., technologies that are faster than dial-

WHAT DO YOU THINK 12.4

What irritates you most about telemarketers? If you were in their place, how would you react to customers who hang up on you or are ill-tempered from the first hello? To what extent do you think telemarketers need to be aware of their voice quality, tone, and delivery when speaking with customers? Does a tele- marketer CSR position suit you? Record your thoughts in a journal.

What skills and service attitude do CSRs need in order to speak with hundreds of customers each day?

D ig ita l V is io n/ G et ty

Im ag e s

192 PART 3 Communication Skills

up, such as DSL, cable modem, fiber optics, satel- lite, and wireless). This represented a 25 percent increase from just two years earlier (50.8 percent in October 2007).”1

On a global usage basis, Internet World Stats reveal there were an estimated two billion Internet users worldwide in June 2010, a figure which re- presented about 29 percent of the population worldwide.

Widespread users from around the world rely on the Internet for many reasons—product re- search, daily purchases, bill payments, social net- working, and communication with CSRs. In doing so, they transact business using popular online service technologies at a level not even dreamed of a few years ago.

Chats With the greater number of online businesses and international customers, companies are turning to customer support chats to expedite resolution of cus- tomer issues. A chat program permits interaction with a service representative in a moment’s time and has the potential for increased sales due to immediate response.

Chats allow agents or specialists to approach customers while they are online and offer assistance, usually through a pop-up request. Once contacted, the website visitor may decline or accept the invita- tion to chat. If the visitor accepts the invitation, he or she interacts in a manner similar to that used in instant messaging, in a private, secure, one-on-one chat. Though some businesses use chats, most are cautious and take a conservative approach toward this technology because some customers consider being invited to chat as intrusive.

Online Forums Online forums allow users to share information and post responses to one another in online discussion groups. These discussions are not in real time the way chats and instant messages are. Instead, they are referred to as threaded discussions and may span a few days, as the need exists.

A message forum should be seen by organiza- tions as an opportunity to have a discussion with a number of interested individuals who may be look- ing to make purchases or communicate with some- one with a compliment, concern, or suggestion for improvement.

Blogs Web logs, or blogs, are a growing electronic com- munications method that consists of millions of on- line journals linked together in a vast network. Not only do individuals on the Internet set up rapid- response blogs, but businesses do as well.

As Gavin’s Blog asserts, “Blogs are different. They evolve with every posting, each one tied to a moment. So if a company can track millions of blogs simultaneously, it gets a heat map of what a growing part of the world is thinking about, minute by min- ute…. Most blogs are open to the world. As the blog- gers read each other, comment, and link from one page to the next, they create a global conversation.”3

Cloud Apps Short for cloud application, a cloud app is the phrase used to describe a software application that is accessed via the Internet and is not physically installed on a personal or business computer system. Michael Learmonth, in an article for Advertising Age, says that “These “cloud” computing services—generally free applications that exist on the web such as Gmail, Twit- ter, Facebook, Skype …. are now woven into the lives of just about everyone on the web.”4 Thought as tools

1 “Digital Nation: 21st Century America’s Progress toward Universal Broadband Internet Access,” U.S. Department of Commerce, p. 4, February 2010 http://www.ntia.doc.gov/reports/2010/NTIA_internet_use_report_Feb2010.pdf accessed January 30, 2011. 2Internet Usage Statistics: World Internet Users and Population Stats, Internet World Stats, June 30, 2010, http://www.internetworldstats.com/stats.htm accessed February 1, 2011.

3Gavin’s Blog, http://www.gavinsblog.com/2005/04/24/business-week-and-blog- ging/ accessed February 1, 2011. 4Michael Learmonth, “Spotty Customer Service Haunts Free, ‘Cloud’ Services,” September 7, 2009, Advertising Age, http://adage.com/digital/article?article_ id=138846 accessed February 1, 2011.

CHAPTER 12 Telephone and Digital Communication 193

for individuals, companies and organizations around the world now use these free applications to track crit- ical communication and feedback from customers.

E-Mail E-mail, an ongoing service technology, is used exten- sively to communicate with customers because it is easy for businesses and consumers to use. It allows for contact in a familiar fashion and avoids the need for waiting on hold for a customer service representative.

Unfortunately, because e-mail is part of the virtual world of communication, many people ex- change business messages the same way they do in virtual chat rooms—with much less formality and, at times, too much anger and aggression. There- fore, before clicking the send button on your e-mail, know who will be receiving the message. Doing so encourages you to think about the tone of your writing. E-mails sent to external customers will probably be more formal and brief, whereas e-mails to an internal customer or colleague might be less formal.

E-mail abuse in organizations is problematic. Three ways companies can minimize the rise of e-mail abuse and safeguard its best and highest use are to enact strict policies, educate employees and managers about those policies, and then enforce them. When using a business e-mail system, all employees should bear in mind these reminders:

• E-mails are public documents. Therefore, include only statements that you can openly defend, should your e-mail message be circulated or shown to parties not intended to see it.

• The employer owns the e-mail. All messages that are created, sent, or received using a company system remain the property of the employer, not the employee.

• The e-mail system is for business communications

only. Taking care of personal business while working is unauthorized and should be carried out at home.

• Offensive and inflammatory messages are strictly

prohibited. These actions can be grounds for termination in most organizations.

• The use of passwords does not indicate that messages are

confidential. Even with a password, the company will be able to intercept and read e-mails.

WRAPPING UP … FUTURE CHALLENGES FOR CUSTOMER SERVICE The 3rd edition of The World of Customer Service has distinguished itself by stressing the importance of serving well the global customer in today’s fluid business environment. The book especially empha- sizes two distinct but inter-related components of customer service. First, service professionals these days need to be personally empowered to deal with complex situations in a manner never before thought about. CSRs need to be continuously sensitive to the customer-centered approach when dealing with unique cultural feelings, customs, and norms relating to wide-ranging diversity issues. Second, when ser- vice providers use technology to gather information, they need to use the information as tools that are proactive in learning about customers and reaching out to them in a more personal and informed way. Remember that essential customer service skills will

Ethics / Choices What if you worked in a Customer Service De-

partment with someone who sent instant mes-

sages to her friends while serving customers

and who also speckled her e-mails to customers

with smileys. Would you say anything to her or

your supervisor?

WHAT DO YOU THINK 12.5

Which technologies do you prefer using in your interactions with businesses? List these and state why in your journal.

194 PART 3 Communication Skills

always include striving for first-call resolution. It will always require special service skills when serving ex- treme customers who may be adversely affected in part due to these new communication methods and digital devices that irritate an already upsetting cus- tomer situation.

In light of personal empowerment and rapidly growing technology, customer service finds ever more creative ways to move forward as illustrated by some of the ideas mentioned by the service pro- fessionals featured in this text. Al Smith, for exam- ple, in his Lexus interview spoke about the social media team that searches for creative, proactive ways to reach out to customers. Teresa Laraba, of Southwest Airlines, spoke about empowering flight attendants because, as we recognize today, flying is a more challenging business than it used to be. En- thusiastic applied skills; more sensitivity to cultural diversity; an awareness when serving customers’ needs, informed by the strategic use of CRM have given the world a newly defined service environment. This environment is challenging; it is unknown and

budding because, as the economy and world change, so do the service needs of customers around the world.

SUMMARY

• During phone conversations with customers, always be professional and courteous throughout the entire interaction.

• Treat voice technologies as an extension of your- self and use them as tools to help serve the customer.

• When speaking with customers over the phone, pay attention to your tone of voice, choice of words, and overall delivery technique.

• Telemarketing is the use of the phone to sell directly to consumers; it consists of calls that are inbound, outbound, or a combination of both.

• Examples of popular Web-based service technol- ogies are chats, blogs, Cloud apps and e-mails.

FOCUS ON. . . BEST PRACTICES

Virtual Assistants

The explosion of the Internet and its relation to the

global economy has produced a new business oppor-

tunity known as the virtual assistant. Because businesses

use e-mail systems, answering services, automated

phone messages, and Cloud apps to service customer

issues, someone like an outsourced virtual assistant is

tasked to virtually manage them at a distance.

The International Virtual Assistants Association

defines a virtual assistant (VA) as “an independent

entrepreneur who provides administrative, creative, or

technical services by using advanced technological

modes of communication and data delivery.” To be

successful, the virtual assistant must have excellent

communication, technology, and customer service

skills. Working from his or her own office space, VAs

solve customer problems by:

• Addressing customer complaints (calls, e-mails,

instant messages),

• Handling product issues between business clients

and their customers,

• Answering customer questions,

• Sending out e-mails, catalogs, and newsletters to

subscription customers.

With a high number of consumers becoming angry

or frustrated at using an automated phone system, a

virtual assistant is not only an economical solution, but

is a practical one for many organizations.

SOURCES: International Virtual Assistants Association, http://www.ivaa.org/ accessed February 1, 2011, and Chaov, “The Virtual Assistant Customer Service Expert,” July 22, 2009 http://www.bukisa.com/articles/125886_the-virtual-assistant-customer-service-expert accessed February 1, 2011.

CHAPTER 12 Telephone and Digital Communication 195

KEY TERMS

messaging on-hold Voice over Internet Protocol (VoIP)

inbound telemarketing outbound telemarketing

CRITICAL THINKING

1. Think of someone you know who has out- standing customer-friendly phone skills. Describe why you have this opinion of that person.

2. If you were hiring a receptionist, CSR, virtual assistant, or telemarketer, what essential phone service skills would you look for in your top candidates? List and describe.

3. Describe a voicemail system you have used that you consider being customer-friendly. Describe one that you consider not to be user-friendly.

4. Do you think Cloud applications, like Skype, Twitter, Facebook, and the like, will continue to increase in usage among customer service providers and their organizations? Discuss your reasons.

5. In your opinion, which Web-based technology best serves the greater good with today’s diverse global customers? Why?

WHAT DO YOU THINK NOW?

Project 12.1 Assume you are doing a classroom presentation on customer service digital technologies. Reread your responses to the What Do You Think? questions that you completed throughout this chapter. What are some service practices that require the professional use of digital technologies? What service issues might conflict with the use of these technologies? What are some ways CSRs can stay informed about new developments in digital technology products? What traits or skills should a CSR possess to use communication technology effectively? Compile your responses, as directed by your instructor.

ONLINE RESEARCH ACTIVITY

Project 12.2 Voicemail Update Research a number of websites and locate several articles about recent developments in the installation and use of business voicemail systems. As a result of your research, write a simple paper recommending additional features or upgrades to the voicemail system at your school or at work.

196 PART 3 Communication Skills

COMMUNICATION SKILLS AT WORK

Project 12.3 Answering Phone Calls Form a small group with at least two other students and write the messages you would use to respond to the three phone-answering situations below. As an alterna- tive, follow your instructor’s directions to join a group and use the instructor- designated discussion board to complete the group project.

1. Assume you are working for First City Bank. When calls come in, they go directly to your phone; there is no receptionist. How should you answer each call?

2. Assume you are an employee in the registration office of a local career school. All calls are first answered by a receptionist and then transferred to your desk. How should you answer each call?

3. When your boss is not available, you answer her phone. What should you say when she is in a meeting? What should you say when she is on a coffee break?

DECISION MAKING AT WORK

Project 12.4 Calls at Work Assume a good friend calls you on your direct line at work with the intent to chat. After you’ve done some catch-up on personal news, she suggests that the other reps can handle your calls for a little longer. You are starting to feel uncomfortable with what is happening. Decide how you would handle this situation with your friend and describe the specific reasons for your actions. Would your behavior in this situation be different if your supervisor’s office was nearby?

CASE STUDY

Project 12.5 The Phone Order Fiascos Rick Francis is a CSR who receives a call from a new customer wishing to place an order. Rick has a basketball game broadcasting very softly on the radio, and he thinks the customer cannot hear it. The customer begins to give the order, but Rick inter- rupts and puts her on hold because he cannot find anything to write with. Because the customer has a heavy accent, Rick has a hard time understanding and says, “Huh?” quite frequently during the phone conversation. Rick concludes the transaction by saying, “Thanks for placing the order.”

Form a small group and discuss what should Rick have done differently during this customer dialogue. As an alternative, follow your instructor’s directions to join a group and use the instructor-designated discussion board to complete the group project.

CHAPTER 12 Telephone and Digital Communication 197

GLOSSARY

accommodating A style of conflict management that demands complete acquiescence to another’s point of view.

active listening Fully understanding the meaning of what someone says by listening with your whole mind and body—not just your ears.

aggressive communication style A style of commu- nication in which the person is closed-minded, listens poorly, has difficulty seeing another person’s point of view, interrupts other people while they are talking, and tends to monopolize conversations.

alternative choice question A question that provides specific choices for the customer to select from.

amiable personality The personality type that wants to build relationships, give others support and atten- tion, values suggestions from others, and fears disagreement.

analytical personality The personality type that is systematic, well organized, deliberate, values numbers and statistics, loves details, and tends to be introverted.

anger management A process of learning to recog- nize signs that you are becoming angry, and taking action to calm down and deal with the situation in a positive way.

Angie’s List A review service of companies that hire out contractors that provides live call center support and help.

arbitration A legally binding process that begins when both parties sign an agreement permitting the arbi- trator to conduct a fact-finding hearing and make a final decision.

assertive communication style A style of communi- cation in which the person uses active listening, states limits and expectations, and does not label or judge people or events.

authority The power or right to give commands, en- force obedience, take action, or make final decisions.

avoiding A style of conflict management where one diplomatically sidesteps an issue, postpones an issue until a better time, or withdraws from a situation that is emotionally, physically, or intellec- tually threatening.

Baby Boomer Generation Born between 1946 and 1964, this generation has a significant influence on society; they make up the majority of the political, cultural, industrial, and academic leadership roles in the United States.

baseline standard The minimum level of service it takes to satisfy customers under ordinary circumstances.

Better Business Bureau (BBB) A recognized third- party complaint handling mechanism in the United States that has dedicated itself to playing a leadership role in the resolution of consumer-business disputes.

blog Also referred to as web logs. A website where entries are made in journal style and displayed in re- verse chronological order. They contain text, images, and links to other blogs or web pages, and are part of a wider network of information.

body language Nonverbal messages that include tone of voice, eye movement, posture, hand gestures, facial expressions, and more.

burnout The state in which a person feels psycholog- ical exhaustion and decreased efficiency resulting from overwork and prolonged exposure to stress.

business etiquette The rules of acceptable behavior that identify the application of correct or polite man- ners in a typical business situation.

certification A nationally recognized certificate that indicates a proficiency in a professional skill or career.

closed question A question that usually elicits a “yes” or “no” answer.

coaching A training method that emphasizes learning by doing and turns information into knowledge and experience.

collaborating A style of conflict management that requires attempting to solve the problem together with the customer to find a mutually satisfying solution.

communication model An illustration of the com- munication process, consisting of six elements: sender, receiver, message, channel, shared understanding, and feedback.

199 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

competing A style of conflict management that in- volves an entrenched, almost combative attitude based upon the unshakeable conviction that you are right.

compromising A style of conflict management where solutions are found that are mutually satisfactory to both parties.

contact point The method that a customer uses to communicate with a company.

cross selling The act of promoting products related to the one ordered, thus selling an extra product in the process.

culture A system of shared values, beliefs, and rituals that are learned and passed on through generations of families and social groups.

customer expectations The ideas and beliefs that a customer has before a transaction occurs.

customer loyalty The practice of finding, attracting, and retaining customers who regularly purchase from you.

customer perceptions The opinions that are formed by the customer during and after a business transaction.

customer profile Demographic information that is collected about customers, explaining who the custo- mers are and what they want in terms of service.

customer relations policy A company policy that is the foundation for maintaining customer goodwill and that lays out the foundation for communicating with customers and for handling customer complaints.

customer relationship management (CRM) A busi- ness strategy used by companies that integrates the functions of sales, marketing, and customer service, and uses technology and wide-ranging databases of information to improve service to customers in a more personal way.

customer retention A strategy with the purpose of doing whatever it takes (legally and within reason) to keep a company’s current customers on a long-term basis.

customer satisfaction The state of mind that custo- mers have about a company and its products or services when their expectations have been met or exceeded.

customer self-service (CSS) A proactive approach in customer service that empowers customers to go to a company’s website and find answers to most of the queries that normally go through a call center.

customer service The process of satisfying the cus- tomer, relative to a product or service, in whatever way the customer defines his or her need.

customer service life cycle (CSLC) A concept that encourages companies to think in terms of differenti- ated involvement with the customer during distinct stages of use of a product.

customer service representative (CSR) The frontline service provider who deals with customers on a day- to-day basis.

customer-centric service A service strategy that puts the customer first, demonstrating a service-oriented commitment.

data mining The process of extracting patterns from data located in the data warehouse.

data warehouse Provides a common location for all crucial business data regardless of the data’s source.

decoding process A step in the communication pro- cess that occurs when the receiver’s brain filters the message and gives it a unique meaning.

direct question Open or closed questions that are posed as instructions and use the name of the person being addressed.

disability A condition caused by an accident, trauma, genetics, or disease, which may limit a person’s mo- bility, hearing, vision, speech, or mental function.

dress code A set of standards that companies develop to help provide their employees with guidance about what is appropriate to wear to work.

driver personality The personality type that wants to save time, values results, loves being in control, and does things his or her own way.

empathy The ability to understand another person’s position without getting emotionally involved.

empowerment The act of giving a CSR the necessary power or authority to make administrative decisions based on corporate guidelines.

encoding process A step in the communication pro- cess that occurs when a message arrives from a sender; the senses pick up the message through signals and then relay it to the receiver’s brain.

200 GLOSSARY

e-rep An online customer service representative.

expressive personality The personality type that values appreciation, enjoys social situations, likes to inspire others, and is extroverted.

external customers People outside of an organization that purchase and use a company’s products and services.

Facebook A social networking website that allows users to add people as friends, send messages, and update their personal profiles.

feedback A step in the communication process that occurs when a message is transmitted back to the original sender.

filtering The tendency for a message to be watered down or halted completely at some point during transmission, which can result in deflecting or stop- ping the listening process.

first-call resolution (FCR) The process in customer service of resolving customer calls to service represen- tatives on the first call or contact.

Generation X Born between 1965 and 1981, this generation is verbal, globally aware, street smart, process driven, and technically adept.

Generation Y Born between 1981 and 1990, this generation uses the Internet as their medium for communicating, entertaining, and learning.

Generation Z Born after 1990, this generation uses the Internet for the majority of their communication, possesses very low verbal communication skills, and spends much of their formative years in cyberspace.

homeshoring The practice of domestic companies hiring U.S. home-based call agents instead of in-house operators or offshore call center operators.

inbound telemarketing A marketing technique used by companies to take orders, generate leads, and provide customer service.

internal customers People within an organization who rely on colleagues to provide the support they need to serve their own internal and external customers.

Internet forum Also known as a message board. An online discussion site that contains a wide range of content, including news, gossip, and research.

knowledge base Computerized data compiled by customer service representatives and used to resolve problems with customers about service issues.

leading question A question that confirms informa- tion and helps speed up interactions with people who find it difficult to make a final decision.

lose-lose strategy A conflict resolution strategy that commonly occurs when one party attempts to win at the expense of the other.

Mature Generation Born prior to 1946, this genera- tion has a strong work ethic and is fiscally conservative.

MeasuredUp A customer service resolution website where millions of connected, loyal, and involved cus- tomers share their experiences with each other and directly with companies.

mediation A process used to resolve differences between two parties conducted by an impartial third party for the purpose of bringing about a settlement or agreement.

messaging on-hold A system that plays a pre-recorded program for callers to listen to while they are on hold.

mixed message A single communication that con- tains two opposing meanings. Typically the verbal part of the message is positive, while the nonverbal com- ponent is negative and contradicts the verbal part.

moment of truth An episode in which a customer comes in contact with any aspect of the organization and thereby has an opportunity to form an impression.

mystery shopper A third-party person who anony- mously and objectively evaluates a business for the purpose of analyzing customer service, product quality, store presentation, and other elements of the customer experience.

GLOSSARY 201

nearshoring A form of outsourcing in which business processes are relocated to locations that are low-wage, but close in geographical distance and/or time zone.

negative language Language that conveys a poor image to customers and may cause conflict and con- frontation where none is necessary or desired.

negative stress A type of stress that comes from a person worrying about things he or she has no power to change.

negotiation An interpersonal process requiring a give and take between the participants.

open question A question asked in a way that requires a more complete answer than a simple “yes” or “no.”

outbound telemarketing A marketing technique used by many organizations because of rising postage rates and decreasing long-distance phone charges in which the telemarketer cold calls prospects who are not expecting a call.

outsourcing The purchase of labor from a source outside of the company, rather than using the com- pany’s own staff; also referred to as subcontracting.

paraphrase The communication technique of repeat- ing in a summarized form what has been said, using other words for clarification.

passive communication style An indirect communi- cation style in which a person agrees externally with others in order to avoid expressing his or her true thoughts and opinions, although privately disagreeing.

personal digital assistant (PDA) An electronic hand- held device that assists a person in organizing a busy schedule.

personal space The distance between people as they interact and communicate.

personality The pattern of collective character, behavioral, temperamental, emotional, and mental traits of a person.

ping-ponging The process of a customer being passed from one employee or department to another while he or she is trying to resolve a problem or concern.

positive language Language that projects a helpful, encouraging feeling rather than a destructive, negative one.

positive stress A type of stress that can be channeled into productive results that motivate and energize a person rather than making him or her anxious and frustrated.

post-episodical survey A satisfaction-type survey that gathers information from customers after they each complete one business transaction.

proactive problem solving The process of anticipat- ing and resolving problems before they occur.

probing question A question that uses information already established to clarify points and elicit more details.

procrastination The act of putting off completing an activity until a later time.

reactive feedback A type of communication exchange that affirms the speaker’s message.

relaxation A state of being that is self-initiated and provides relief from physical and psychological efforts.

responsive feedback A type of communication exchange that characterizes the listener’s feelings.

role-playing A training method where learners use customer scenarios to act out situations encountered in the real world.

script A document used by customer service repre- sentatives when conversing with customers that states consistent responses to common customer problems.

selective listening The process of hearing only what you want to hear—filtering out what you think is not important or not of interest to you.

service animal Any animal that has been individually trained to provide assistance or perform tasks for the benefit of a person with a physical or mental disability.

service culture The aspects that make a business dis- tinctive and make the people who work there proud to do so.

202 GLOSSARY

service infrastructure A framework for customer service strategy that includes concerns about hiring the best people, providing a quality management team for support, ensuring transparent communica- tions throughout the organization, and consistently monitoring service policies and procedures.

service recovery A gesture of compensation, specific to the situation, that is offered to the customer who feels betrayed and not well served.

Smartphone A mobile phone that combines the functionalities of a PDA and call phone with Internet connectivity capability.

social CRM Social customer relationship management; companies unite contact interactions through social communication channels.

social data Information about an individual’s rela- tionship to other people, groups, events, things, and concepts.

social media Websites such as Facebook, Twitter, Yelp, and YouTube that allow customers to connect with each other and share their customer service experiences.

soft skills Also referred to as people skills. These in- clude punctuality, positive attitude, and cooperation.

softening techniques Positive approaches that service professionals use when interacting with customers, for example, an open posture (no crossed arms) and kindhearted eye contact (no rolling of eyes).

standards A baseline description of service perfor- mance guidelines that tells workers what is expected of them, in terms of both the quality and quantity of their work.

stereotyping The tendency to categorize individuals or groups according to an oversimplified and stan- dardized image or idea.

strategic plan A plan for an organization that includes objective, strategies, tactics, and performance indica- tors in order to create a strong service culture.

SWOT analysis A formal review of a business organization’s strengths, weaknesses, opportunities, and threats, which ultimately contributes to a com- prehensive strategic plan.

synergy In teamwork, the combined effect of indi- vidual efforts is greater than their individual efforts alone.

tiered service system A customer service approach in which the service level increases or decreases propor- tionally to the amount a customer is spending.

time management The conscious act of using time in the most effective way possible.

tone In written communication, a manner of expres- sion that reflects the writer’s attitude toward the reader and the subject of the message.

tweets Twitter messages sent to followers.

Twitter A social networking website that allows users to send messages up to 140 characters to a list of followers.

up selling The act of persuading the customer to buy a more expensive product compared to the one he or she asked for.

Voice over Internet Protocol (VoIP) A method for taking audio phone signals and turning them into digital data that can be transmitted over the Internet.

win-lose strategy A conflict resolution strategy that assumes one side will win by achieving its goals and the other side will lose.

win-win strategy A conflict resolution strategy that assumes a reasonable solution can be reached that will satisfy the needs of all parties.

Yelp A website used to find and review local busi- nesses that also allows consumers to find events, special offers, or talk with other users.

YouTube A video-sharing site that lets users store short videos for private or public viewing.

GLOSSARY 203

INDEX

A Abusive behavior, 109–110

Accommodating conflict management

style, 97–98

Ackerman, Ron, 63

Active listening skills, 159

Adkins, Reginald, 161

African Americans, 27

Aggressive communication style, 142

Alamo Rent A Car, 124

Alternative choice questions, 144

Amazon.com, 5, 57, 66

American Express, 9

American Psychological Association, 78

Americans with Disabilities Act, 33, 34, 35

Amiable personality, 29

Analytical personality, 28

Anger management, 82–83

Angie’s List, 13

Arbitration, 91

Asians, 27

Assertive communication style, 142–143

Authority, 26

Avoiding conflict management style, 98

Avon, 139

B Baby Boomer Generation, 31

Back-office services, 23

Baseline standard, 45

BBB (Better Business Bureau), 90, 91

Behaviors

abusive, 109–110

nonverbal, 25

Bender, Pete, 28

Berlo, David, 140

Better Business Bureau (BBB), 90, 91

Bezos, Jeff, 57

Bitner, Mary Jo, 165

BKC (Burger King Corporation), 36

BlackBerry, 7

Blogs, 12, 193

Body language and signs. See also

Nonverbal communication

customer-friendly, 170–173

defined, 170

importance of, 170–171

interpreting, 171–173

types of, 171–172

Bombardment approach to questions, 144

Branson, Richard, 9

Bureau of Labor Statistics, 5

Burger King Corporation (BKC), 36

Burley-Allen, Madelyn, 156

Burnout, 79

Business attire. See Dress code

Business etiquette and manners, 176–179

cultural politeness, 178–179

soft skills, 177–178

unintentional breach of, 177

Business in Action features

Amazon, 57

Avon, 139

Craigslist, 22

Enterprise Holdings, 124

Google, 73

Hewlett-Packard, 107

JetBlue, 89

Ritz-Carlton Hotels, 42

Service Uniforms, 170

Skype, 185

Whirlpool, 156

Zappos, 5

Business Week, 120

Business writing

audience for, 149

fundamentals of, 148–150

nondiscriminatory language in, 150

purpose of, 149

for reader, benefits to, 150

tone for, 149–150

C California Teacher’s Association, 32

Carlzon, Jan, 45

Casual business dress code, 175

Census Current Population Survey, 192

Chats, 193

Clement Communications, Inc., 147

Closed questions, 144

Cloud apps, 193–194

Coaching, as method of training, 129

Collaborating conflict management

style, 98

COLLOQUY Loyalty Awards, 51

Cologne, 176

Comcast, 67

Comment cards, 114, 117

Communication, 138–151. See also

Business writing; Digital

communication; Nonverbal

communication

aggressive, 142

assertive, 142–143

basics of, 139–141

channels of, 7

cross-cultural, 26

with customers, 143–148

customer service, influence on

evolution of, 7

models of, 139–140

passive, 142

with physically disabled persons, 34

roadblocks of, 163–164

service-oriented, 141

teamwork, 83–84

Communication styles, 141–142

Competing conflict management style, 97

Competition feedback, 115

Complaint-handling process, 91–93

Compromise, 83

Compromising conflict management

style, 98

Conflict management styles, 97–98

Conflict resolutions

in customer service department,

131–132

strategies for, 98–99

Conflicts in customer complaints, 90–91

Contact points, 14

Cooper, Simon F., 42

Craigslist, 22

CRM. See Customer relationship

management (CRM)

Cross-cultural communication, 26

Cross selling, 66

CSLC (Customer Service Life Cycle),

64–65

CSM. See Customer service management

(CSM)

CSR. See Customer service representative

(CSR)

CSS (customer self-service), 112–113

Cultural diversity, 25

of customers, 26–27

of global customers, 24–27

Cultural listening cues, 162–163

Cultural politeness, 178–179

Culture, defined, 24

Customer behavior. See Behaviors

Customer-centric service, 6

Customer complaints, 89–93. See also

Problem-solving

benefits of, 101

causes of, 90

complaint-handling process for, 91–93

disagreement vs. conflict in, 90–91

reasons for, 89–90

205 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

Customer complaints (continued)

resolving, 97

scripts for handling, 93–94

Customer feedback, 140, 160. See also

Customer satisfaction

benefits of, 117–118

interpretation of, 117

sources for, 114–115

tools for, 115–117

types of, 160

Customer feedback form, 113

Customer-focused listening skills.

See Listening skills

Customer-friendly voicemail systems, 189

Customer loyalty

defined, 48

earning, 47–48

repeat business, as type of, 49

Customer-oriented website, 113

Customer perceptions, types of, 42–47

customer turnoffs, 46–47

defined, 42–43

empowerment, 46

first impressions, 44–46

Customer personalities, types of, 28–30

amiable personality, 29

analytical personality, 28

driver personality, 28–29

expressive personality, 29–30

personality characteristics, 29

Customer profile, 9

Customer relationship management

(CRM), 61–63

benefits of, 62

defined, 61

purpose of, 61–62

Customer relations policy, 91

Customer requests, 147

Customer retention, 118–119

defined, 118

strategies for, 119

Customers. See also Social customers

communication with, 143–148

defects of, 100

disabled, 33–35

emotions of, 110–111

expectations of, 42

external, 9

identifying, 9–10

internal, 10

needs of, 10–11

positive language towards, 145–147

questions by, 143–144, 145

requests from, handling, 147

sensitive issues of, 147–148

Customer satisfaction. See also Customer

feedback

defined, 114

measuring, 113–118

mystery shopper, for promoting, 115

Customer scarcity, 48

Customer self-service (CSS), 112–113

Customer service, 4–16. See also

Customers

challenges of, 8–9

communication, influence on, 7

defined, 6–7

experiences in, types of, 44

future challenges of, 194–195

goals of, 7–8

good, examples of, 6

misconceptions of, 8

scripts for, 94

standards of, 58

Customer service department. See also

Customer service representative

(CSR)

conflict resolutions in, 131–132

management of, 130–132

Customer service intelligence, 57–60

levels of management for

determining, 59

strategic plans for, 60

SWOT analysis for determining, 58–59

Customer Service Life Cycle (CSLC),

64–65

Customer service management (CSM),

123–133

in customer service department, 130–132

of customer service representative,

126–127

performance standards of, 124–125

retention of service professionals

through, 128–130

Customer service representative (CSR),

49–51. See also Customer service

department; Service professionals

advancement of, 126–127

certification of, 126–127

characteristic profile for, 50

communication seminars for, 150

defined, 6

education of, 126–127

empowerment of, 129–130

monitoring of, 131

motivation for, 130–131

online, 65

problem-solving analysis for, 96

rewards for, 130

role of, 49–50, 126–127

service duties of, 50

service skills of, 50–51

technologies for, 51

time management of, 75

training of, 65, 128–129

traits of, 49–50

working environment of, 126

Customer service strategies, types of, 56–67

customer relationship management,

61–63

customer service intelligence, 57–60

marketing, 65–66

sales, 65–66

service infrastructure, 63–65

Customer turnoffs, 46–47

Customized service, 7

D D’Antonio, Mila, 156

Data mining, 62–63

Data warehousing, 62–63

Davidson, Joy, 172

Decoding process, 140

Dell, 102

Denny’s Restaurants, 64

Digital communication, 184–195

telemarketing activities, 192

telephone, answering the, 185–188

voice delivery system, 191–192

voice technologies, 188–190

web-driven service technologies, 192–194

Direct questions, 145

Disabilities, defined, 33

Disabled customer, 33–35

hearing impaired, 34–35

learning impaired, 35

mobility impaired, 35

physically, 34

speech impaired, 35

visually impaired, 34

Disagreements in customer complaints,

90–91

Diverse customers, 26–27. See also Cultural

diversity

Diversity. See Cultural diversity

Dobosh, Sara, 176

Doyle, Bill, 120

Dress code, 173–176

for body tattoos and piercing, 176

business casual, 175

non-clothing guidelines of, 175

Driver personality, 28–29

206 INDEX

E Ebony, 175

Echo Research, 9

Economic Times, 180

Edward Jones, 16

EEOC (Equal Employment Opportunity

Commission), 176

Effective listening skills, 158–163

active listening, as type of, 159

cultural cues for, 162–163

customer feedback as, 160

empathetic listening, as type of, 161–162

filtering method for, 159

techniques for, 161

80/20 Rule, 63

E-mail, 23, 194

Empathetic listening skills, 161–162

Empathy, defined, 161

Employee feedback, 114

Empowerment, 46, 129–130

Encoding process, 140

Enterprise Holdings, 124, 126

Enterprise Rent-A-Car, 124

Equal Employment Opportunity

Commission (EEOC), 176

E-reps, 65

Etiquette International, 179

Exceptional customer service, 41–52

customer loyalty from, 47–48

customer perceptions from, 42–47

customer service representatives, role

in, 49–50

promoting, actions for, 45

reminders for, 48

value of, 43–44

Expressive personality, 29–30

External customers, 9

Extreme customers, 107–112

abusive behavior by, 109–110

emotions from, dealing with,

110–111

impact of, 112

quiet customers, as type of, 108

service recovery from, 111–112

vocal customers, as type of, 108–110

Eye contact, as type of body language,

171–172

F Facebook, 6, 7, 11, 12, 193

Facial piercing, 176

Facilities, service tools for, 64

Fairfield Inns, 64

FAQ (frequently asked questions), 113

FCR (first-call resolution), 89, 102

Feedback. See also Customer feedback

competition, 115

employee, 114

reactive, 160

responsive, 160

social media, 114

Field, Marshall, 107

Filtering, 159

First-call resolution (FCR), 89, 102

First impressions, 44–46

Focus On … Best Practices features

Addressing Workplace Stress, 85

Burger King Corporation (BKC), 36

Comcast, 67

Communication Seminars for

CSRs, 150

Edward Jones, 16

First-Call Resolutions, 102

Job Interview Reminders, 180

Loyalty Program Award Recipients, 51

Multiple Listening Posts, 165

Scottrade, 133

USAA, 120

Virtual Assistants, 195

Food and Drug Administration, 176

Forrester Research, 61, 120

Fortune magazine, 7

Four Seasons Hotels, 64

Frequently asked questions (FAQ), 113

G Gandhi, Mahatma, 43

Generational differences, 30–33

Generation X, 31

Generation Y, 31–32

Generation Z, 32

Gestures, as type of body language, 172

Global customer, 21–36

cultural diversity of, 24–27

disabled, 33–35

generational differences in,

30–33

globalization, impact on, 22–24

personalities of, 28–30

Global diversity, 27

Globalization

homeshoring and, 23–24

impact of, 22–24

nearshoring and, 23

outsourcing and, 23

Gmail, 193

Godiva Chocolatier, 51

Gomez, Ofelda, 107

Google, 13, 73, 80

Google Voice, 188

Gordon, Marlene, 36

H Hair, 175

Harrah’s, 165

Hearing impaired persons, 34–35

Heathfield, Susan M., 173–174

Helping attitude, 49

Hewlett-Packard, 107

Hispanics, 27

Holmgren, Lynn, 156

Homeshoring, 23–24

HR Magazine, 156

Humor, fundamental aspect of stress

management, 81

Hyatt, 51

I IBM, 13

IGeneration, 32

Inbound telemarketing, 192

Ineffective listening skills, 158

Internal customers, 10

International Virtual Assistants

Association, 195

Internet forum, 12

Internet voicemail services, 188

Internet World Stats, 193

IPhones, 7

Irate customers, 188

J JetBlue, 89

Jewelry, 175–176

Job interviews, 180

Juran, Joseph, 63

K Kaufman, Ron, 101

Keyboarded chats, 23

Knowledge base, 113

L Laraba, Teresa, 195

Leading questions, 144–145

Learmonth, Michael, 193

Learning disabled persons, 35

Level 1 listener, 157

Level 3 listener, 157

Level 2 listener, 157

INDEX 207

Listening skills, 155–165

active, 159

communication roadblocks for,

163–164

effective, 158–163

empathetic, 161–162

ineffective, 158

levels of, 156–157

problem solving and, 95–96

quiz on, 160

selective, 158

Live chat, 113

L. L. Bean, 107

Lose-lose strategy, 98

Lower management level of business, 59

Loyalty Effect (Reichheld), 48

Loyalty program award recipients, 51

M Mail surveys, 115

Makeup, 175

Management in business, levels of, 59

Mapquest, 64

Marketing, 65–66

Marketing Wizdom, 119

Marshall Field and Company, 107

Mature Generation, 31

Mayo Clinic, 74, 165

McDonalds, 13

MeasuredUp, 13

Mediation, 91

Messaging on-hold system, 188

Microsoft Outlook®, 77

Middle management level of business, 59

Millennials, 31–32

Mind Tools, 140

Mixed messages, 141

Mobility impaired persons, 35

Moment of truth, 45

Monitoring of customer service

representative, 131

MOSS—Make Our Supervisors

Successful, 67

Motivation for customer service

representative, 130–131

Multiple listening posts, 165

Multiple-question approach, 144

Myers, Courtney Boyd, 185

Mystery shopper, 115

N Nails, 175

National Car Rentals, 124

National Do Not Call Registry, 192

National Professional Certification in

Customer Service, 127

National Retail Federation (NRF)

Foundation, 127

Nearshoring, 23

Needs of customers, 10–11

Negative language, 146

Negative office chatter, 79

Negative stress, 81–82

Negotiation, 97

conflict management styles for, 97–98

conflict resolution strategies for, 98–99

skills for, 97–99

Net generation, 32

Newsweek, 185

Non-clothing guidelines, 175

Nondiscriminatory language, 150

Nonverbal behaviors, 25

Nonverbal communication

body language, as type of, 170–173

dress, as type of, 173–176

etiquette and manners, as type of,

176–179

Non-voice services, 23

Nordstrom, 7

O Obston, Andrea, 108

Occupational Outlook Handbook-2010-11

(OOH), 126

Office chatter, negative, 79

Online customer forum, 113

Online customer service representatives,

Online forums, 193

Open questions, 144

Organizational skills, 77

Outbound telemarketing, 192

Outgoing greeting, 190

Outsourcing, 23

P Paraphrase, 26

Pareto, Vilfredo, 63

Passive communication style, 142

PDA (personal digital assistant), 73–74

People skills, 177–178

People turnoffs, 47

Performance standards

calculating, 125

defined, 124

setting, 124–125

Perfume, 176

Personal digital assistant (PDA), 73–74

Personality characteristics, 29

Personal space, 172

Pew Research, 176

Physically disabled persons, 34

Piccola, Gabrielle, 64

Ping-ponging, 93

Poor time management, 74–76

Positive language, 145–147

Positive stress, 81–82

Post-episodic surveys, 117

Posture, as type of body language, 172

Preferred customers, 63

Proactive problem solving, 112–114

Probing questions, 144

Problem-solving, 88–102. See also

Customer complaints

with customers, 96

customer service representatives,

analysis for, 96

effective, 96

listening skills and, 95–96

negotiating skills and, 97–99

proactive, 112–113

process for, 94

quiz for, 95

win-back plan for, 99–101

Procrastination, 75–76

Profiles in Diversity Journal, 36

Pryor, Fred, 150

Q Questions by customers

alternative choice, 144

answering, 145

asking, 143–144

bombardment approach to, 144

closed, 144

direct, 145

leading, 144–145

open, 144

probing, 144

Quiet customers, 108

R Ram, Melvin, 57

Reactive feedback, 160

Recording outgoing greeting, 190

Reichheld, Fred, 48

Reiman, Tanya, 170

Relaxation, fundamental aspect of stress

management, 80–81

Repeat business, 49

Responsive feedback, 160

Retention of service professionals, 128–130

208 INDEX

Rewards for customer service

representatives, 130

RightNow Technologies, 43

Riney, Rodger, 133

Ritz-Carlton Hotels, 7, 42, 46, 165

Rockefeller Corporation, 43

Role-playing, as method of training, 129

S Sales, 65–66

Scandinavian Airlines Systems (SAS), 45

Schaefer, Rick, 139

Scottrade, 130, 133

Scripts

customer service, 94

defined, 93

key elements of, 93

Selective listening skills, 158

Self-serve approach, 7

Sender-Message-Channel-Receiver

model, 140

Service animals, 35

Service culture of organization, 10

Service infrastructure, 63–65

Service-oriented communication, 141

Service professionals, 128–130. See also

Customer service representative

(CSR)

Service recovery, 111–112

Service tools for facilities, 64

Service uniforms, 170

Silent generation, 32

Skype, 185, 193

Small Business Administration (SBA), 43

Small Business Notes, 57

Smartphone, 7, 73, 74

Smiling, as type of body language, 172

Smith, Al, 195

Social customer relationship management

(CRM), 13–14

Social customers, 11–15. See also Social

media

characteristics of, 12

Social data, 12–13

Social media

defined, 11

feedback from, 114

impact of, 12–14

“listening tools” of, 12–13

Softening techniques, 110–111

Soft skills, 177–178

Southwest Airlines, 195

Space, concept of, 25–26

Spalding, Bonnie R., 64

Speech impaired persons, 35

Stereotyping, 26

Strategic plans, 60

Stress. See also Stress management

causes of, 78

effects of, 78–79

positive vs. negative, 81–82

in workplace, 85

Stress management, 78–82. See also Stress

humor, fundamental aspect of, 81

relaxation, fundamental aspect of,

80–81

tips for, 80

Subcontracting, 23

SWOT analysis, 58–59

Synergy, 84

System turnoffs, 47

T Tattoos, 176

Taylor, Andrew C., 124

Teamwork, 83–84

basic rules for, 83

benefits of, 84

strategies of, for promoting better

customer service, 84

Teamwork communication, 83–84

Technical Assistance Research Programs,

Inc., 112

Telemarketing activities, 192

Telephone, answering the, 185–188

basic process for, 186

call transfers after, 186–187

phone language when, acceptable, 191

placing calls on hold after, 187–188

tips for, 186

Telephone surveys, 115

Temkin, Bruce, 112

Tiered service system, 15

Time, concept of, 25

Time management, 73–76

of customer service representatives, 75

defined, 73

poor, 74–76

quiz on, 75

tips for, 74

Time wasters, 74–76

Tone used in business writing, 149–150

“Top 10 Best Companies to Work For,” 10

Top management level of business, 59

Training

coaching as method of, 129

of customer service representatives,

65, 128–129

role-playing as method of, 129

Transferring telephone calls, 186–187

Tweets, 12

24/7/365 service delivery, 7

Twitter, 6, 7, 11, 12, 193

Twitter messages, 12

U UniFirst, 170

Unintentional breach of manners, 177

U.S. Census Bureau, 31

U.S. Department of Commerce, 192

United Wellbeing, 163

Up selling, 66

USAA, 120

V Value turnoffs, 47

Victor, David, 26

Video chats, 189

Virtual assistant (VA), 195

Virtual home agents, 23–24

Visually impaired persons, 34

Vocal customers, 108–110

Voice, as type of body language, 172

Voice delivery systems, 191–192

Voicemail messages, 189, 190

Voice over Internet Protocol (VoIP),

65, 188–189

Voice response systems, 189–190

customer-friendly, 189

outgoing greeting in, recording, 190

voicemail messages in, leaving, 190

Voice technologies, types of, 188–190

Internet voicemail services, 188

Voice over Internet Protocol (VoIP),

188–189

voice response systems, 189–190

VoIP (Voice over Internet Protocol),

65, 188–189

W Web-driven service technologies,

types of, 192–194

blogs, 193

chats, 193

cloud apps, 193–194

e-mail, 194

online forums, 193

Website, customer-oriented, 113

Whirlpool, 156

INDEX 209

Win-back plan, 99–101

Win-lose strategy, 98

Win-win strategy, 98

Wolfe, Ira S., 176

Workplace skills, 72–85

for anger management, 82–83

for organizational skills, 77

for stress management, 78–82

for teamwork, 83–84

for time management, 73–76

Wulf, Jane, 133

Y Yelp, 11, 13

Yelpers, 13

YouTube, 7, 11, 13

Z Zappos, 5

210 INDEX

Table of Contents��
Preface��
Acknowledgments��
Part 1: The Customer Service Environment��

Ch 1: What is Customer Service?��

Customer Service Today��
Identifying the Customer��
Needs of Customers��
The Social Customer��
Wrapping Up��
Summary��

Ch 2: The Global Customer��

Impact of Globalization��
Cultural Diversity and the Global Customer��
Customer Personalities��
Generational Differences��
The Disabled Customer��
Wrapping Up��
Summary��

Ch 3: Exceptional Customer Service��

Customer Perceptions��
Earning Customer Loyalty��
Who is Right for Customer Service?��
Wrapping Up��
Summary��

Ch 4: Customer Service Strategy��

Customer Service Intelligence��
Customer Relationship Management��
Service Infrastructure��
Marketing and Sales��
Wrapping Up��
Summary��

Part 2: Essential Customer Service Skills��

Ch 5: Critical Workplace Skills��

Time Management��
Organizational Skills��
Stress Management��
Anger Management��
Teamwork��
Wrapping Up��
Summary��

Ch 6: Problem Solving��

Understanding Complaints��
Problem Solving��
Negotiating Skills��
An Effective Win-Back Plan��
Wrapping Up��
Summary��

Ch 7: Extreme Customers and Customer Retention��

Extreme Customers��
Proactive Problem Solving��
Measuring Customer Satisfaction��
Customer Retention��
Wrapping Up��
Summary��

Ch 8: Managing Customer Service��

Setting Service Standards��
Understanding the CSR Position��
Retaining Service Professionals��
Managing a Customer Service Department��
Wrapping Up��
Summary��

Part 3: Communication Skills��

Ch 9: Communication Essentials��

The Basics of Communication��
Communication Styles��
Communicating with Customers��
Fundamentals of Business Writing��
Wrapping Up��
Summary��

Ch 10: Customer-Focused Listening��

Levels of Listening��
Ineffective Listening��
Effective Listening��
Roadblocks to Listening��
Wrapping Up��
Summary��

Ch 11: Nonverbal Communication, Dress, and Manners��

Customer-Friendly Body Language��
Dressing to Make a Good Impression��
Practicing Etiquette and Manners��
Wrapping Up��
Summary��

Ch 12: Telephone and Digital Communication��

Answering the Phone��
Voice Technologies��
Evaluating Your Voice Delivery��
Telemarketing Activities��
Web-Driven Service Technologies��
Wrapping Up ... Future Challenges for Customer Service��
Summary��

Glossary��
Index��