Showing posts with label competition. Show all posts
Showing posts with label competition. Show all posts

Tuesday, October 26, 2010

SERVICEWISE CSA – HELP, I NEED GAS!!


Like any good homemaker, I like getting ahead of running out of anything so I don’t find myself in a desperate situation. That was why I decided to call my gas supplier well ahead of the time I suspected I would run out of gas (two whole days, though I didn’t know it then!)

He promised me that he would come the following day. I waited for his apprentice till well past the agreed time but he did not show up. So I called my gas guy again. He apologized profusely and told me that he was actually out of town but would be back that evening. He assured me that he would be there himself the following day to fill my order. Like any customer, I preferred waiting for someone I was used to doing business with, rather than go to a competitor.

The next day, I totally ran out of gas. I could not heat up any water for a bath and had to pack my little girl two breakfasts for school instead of a cold breakfast and a hot lunch like I usually did. You can imagine that I was quite irritated about that. I called the gas guy yet again and discovered that he was still out of town! I promptly informed him that I was going to look for an alternative if he could not send someone that morning. He agreed that that might be better since he was just leaving for Lagos.

Now I was angry; not only angry but also clueless as to where exactly I was going to get gas since I had only always used that guy. I had to go around my estate hoping that I would stumble across someone. Eventually I was directed to a gas seller by the lady I usually buy emergency food stuff from. He not only filled my order in record time but also gave me a little extra though he let me know that it was only due to the inattention of the person filling the gas. He did not neglect to mention that he knew my gas guy and aimed a few subtle digs at him.

My regular gas guy paid me a visit later in the day and apologized again, explaining that his apprentice misunderstood his instructions. I assured him that he still had my patronage. I’ve got to say though, that I’m really glad I have an alternative!

Customer Service Analysis
 Gas Guy #1:

Negatives
·         With him, I experienced what is known in Customer service as Service Breakdown. This was because he did not deliver on his promise to me. It’s preferable to under-promise and over-perform. As soon as he realized that he would be delayed longer than anticipated, he should have let his customer know.

·         Ownership: one of the qualities of a customer service person, this means that you do not shift blame but take responsibility for the service breakdown. The customer really does not want to know who was to blame; the customer just wants the job done.

·         Lack of Respect for the Customer: he was more interested in making the sale than whether or not I would be inconvenienced by his plans. He either felt that my need was not really as urgent as I made out or that I would accommodate him regardless. This showed a lack of respect for me.

Positives
·         Responsibility: He never avoided my calls.
·         Follow Up: He took out the time to come in person to verify that I had gas and apologized for the run around.
Gas Guy #2

Positives

·         Service Delivery: He fulfilled his promise that I would have my gas filled in good time, thus earning him a coveted place on my home vendors list.

Negatives

·         Respect Your Competition: Being in the same business does not permit you to badmouth your competition; it belittles you in the eyes of your customer and suggests to your customer that you are so insecure about your ability to keep her satisfied that you have to make your competition look bad.

·         False Representation: Though he told me I was given extra gas, he spoiled it by saying that it was because someone was not paying attention when filling my cylinder. He was sending me mixed messages. On one hand, I should use him because I can get extra gas by doing so; on the other hand, I only got the extra gas because someone wasn’t paying attention so I shouldn’t expect the same again.


My Verdict

Gas guy#1 – he gets a 7: he might have given me a bit of a run around but on the whole, I do get good service regularly so this snafu did not make me blackball him. As mentioned, customers actually prefer being loyal because it decreases the amount of time spent on deliberating on where to get a product. Unless you give them ample cause to switch service providers, you can use this to your advantage. So I’ll be sticking with him.
Gas guy #2 – he gets a 5: he helped me out in a fix but his negative comments about his competition made me perceive him as petty; and for a customer, perception is reality. I’ll probably give him a call if I find myself in another fix.

What do you think?

Monday, August 30, 2010

SERVICEWISE - The Moment of Truth

No, it’s not the TV game show. Though why an individual would stand before millions of people to admit to matters that could potentially lead to character and career suicide is a question best answered by the participants themselves.

The ‘moment of truth’ I refer to is a terminology in customer service that describes any point during the interaction between an organization and its customers that leaves a lasting positive or negative impression about the business. In the hospitality industry, for instance, this would include, but not be limited to, booking the room, check-in, check-out, dinner reservations, dinner ordering, dinner presentation, quality and quantity of food and so on.

Why does it matter?

It matters for three major reasons:

1.      The customer has changed: In the past, it used to be that a business just produced products for the customer and the customer just had to take it or leave it. In the event that the customer did decide to leave it, the business would just make a better product. Nowadays, customers are more educated, better informed, more value conscious and demand more for their money. Their expectations of the companies and the people they buy from are much higher and the internet has brought more options literally to their doorsteps. They want better customer service and when they don’t get it, a typical dissatisfied customer will tell an average of 7 to 10 people about his problem and why they shouldn’t patronise you.

2.      The business environment has changed: Unless an organization has a monopoly in its industry, businesses today have more competition and globalization has ensured that this competition is not only local but regional and international. If you don’t offer superior service to your customer, they’ll just waltz over to someone who did, and wouldn’t mind paying the difference. That’s your money going to someone else simply because they performed better.

3.      The World Economy: The recession hit a lot of businesses pretty hard and so money is spent with a great deal more discretion. It doesn’t leave that much available for elaborate marketing strategies to attract new customers. The funny thing is, it has been statistically proven that it costs way less to maintain an existing customer than to get a new one.

So how do you determine this ‘moment of truth’?

·        Break down each process involved in the customer experience into its component stages to see where you can save your customer time or money. The best way is to ‘walk a mile in your customer’s shoes’. This is known as Mystery Shopping. A lot of businesses get expert help to pose as a customer and observe employee treatment and operational bottlenecks. You can simply get an informed friend to help out and then discover at which points your customer can potentially be frustrated. This Business Process Mapping can help you identify where money should be channelled and energies exerted.
·         
     Ask your frontline staff. Employees see first-hand the body language, nonverbal communication of the customer and the circumstances surrounding the particular incident, things that surveys will never see and that customers will sometimes not realise is happening.

Excellent customer service has the advantage of not only being an effective marketing tool but also a unique selling point for any company. By understanding the moments of truth, you can improve and even determine the perceptions of your customers. This would lead to positive word of mouth advertising and customer loyalty.