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Playing to Win the Customer Service Game

Playing to Win the Customer Service Game

GUEST POST from Shep Hyken

One of the more enjoyable activities in my life is playing hockey. When I’m in town – not out speaking at conferences – I lace up the skates several times a week to play in a friendly hockey game. In close games, when my team is up by one or two goals, I remember my school days when our coaches encouraged us to continue playing to score, even when we were winning, versus switching to more defensive play to prevent the other team from scoring.

So, what does this have to do with business, specifically customer service and CX? Plenty!

In any team sport, the goal is to win. In the customer service world, we should create a “game plan” to deliver an experience that is perfect, never requiring a customer to reach out to us because of problems. Consider what Jeff Bezos of Amazon said many years ago: “The best customer service is if the customer doesn’t need to call you, doesn’t need to talk to you. It just works.” That’s a perfect example of playing to win.

But that doesn’t always work. Bezos quickly discovered that as perfect as Amazon might be, once the package left the warehouse, control was in the hands of delivery companies such as the USPS, FedEx, or UPS. If there was a delivery problem, even if it wasn’t Amazon’s fault, the customer still called Amazon.

That’s where Amazon learned to play great defense, typically managing complaints or issues so well that the company has earned a reputation for amazing customer service. And they still play to win. They continue to open more distribution sites and grow their fleet of airplanes and vehicles to manage the entire experience, so they don’t have to rely on outside vendors as much. And as perfect as they try to be, there will still be problems, so a good defense, as in a good customer service experience, supports the effort to win.

While we can’t all be Amazon, we can play a similar game. We need defense, which is the ability to respond to our customers’ questions, problems, needs, and complaints in a way that renews confidence for them to continue doing business with us. However, we must also play to win, which means continuously improving the customer experience, including eliminating or mitigating any of those customer issues.

Shep Hyken Award Cartoon

In the customer service world, playing to win in customer service means eliminating the reasons customers call us for problems and complaints. Playing defense is focusing on being good at handling our customers’ problems or complaints. We need to be good at both.

Image Credits: Shep Hyken, Pexels

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The Innovation Locker

The Innovation LockerI came across a Wall Street Journal article recently that caught my eye, an article about Amazon Lockers. The concept is pretty simple. Amazon offers customers in select locations the option of having their package delivered to an Amazon Locker instead of to their street address. When the package arrives they receive an email letting them know where to pick it up along with the code to unlock it, and because most of the lockers are being placed in locations like convenience stores, often the customer can pick up their package 24 hours a day.

This is a great potential innovation for the segment of their customer base that has trouble receiving their packages – either because they live in an apartment or condo that is difficult to deliver to, aren’t home to sign, or because they are worried that their package might be stolen.

But the motive for the experiment is not purely an altruistic customer service one, companies like Amazon pay up to 20% more to have packages delivered to a residence. So, delivering a package to a locker helps Amazon save money too – helping to offset the costs of installing and maintaining the lockers. And as a bonus they serve as OOH (Out Of Home) advertisements in a context where people’s minds are already open to buying things.

So, what did the Wall Street Journal miss?

The Wall Street Journal missed the most important part of this whole idea, and one of the potentially most innovative parts of it. If you’re still missing the hidden golden nugget, one more hint before the reveal – think Amazon Web Services (AWS) including services like EC2 (Elastic Computing Cloud) and S3 (Simple Storage Solution). Now you should see that the real innovation nugget here is that what may look at the outset as a service innovation, is actually a platform innovation.

The same problem that has led Amazon to create the potential innovation that is Amazon Lockers, is a problem for all other online retailers. So, Amazon and their customers definitely benefit from the lockers, but they likely can also be leveraged by any retailer that sells their goods on Amazon. AND, in the future there is no reason that in much the same way that Amazon productized S3 and EC2, Amazon could also productize Amazon Lockers and sell it as a service that any other company can purchase and use.

Multiple MailboxesSo who should have come up with this potential innovation?

FedEx, DHL, UPS, and the US Postal Service all missed this as a potential innovation that any of them should have actually developed. The inspiration for this potential innovation was sitting in full view all along. The US Postal Service installed multiple mailbox solutions in many subdivisions long ago to increase efficiency, and make it so that anyone receiving a package receives a key in their mailbox that opens a larger box in the same unit for package retrieval.

Final Thought

Are Amazon Lockers a good idea? A potential innovation? Yes, I think so. Whether they make the transition from interesting experiment or invention to innovation (through adoption) we will wait and see. But the fact that Amazon is expanding their test is a good sign that the transition from invention to innovation will be made. To close, I would just like to say that Amazon has some other possibilities they could (and likely will) explore, including:

  1. Pursuit of space rent reduction through use of the touch screen to suggest certain products for purchase that the host store might sell.
  2. Show suggested products from Amazon with a ‘send me more info’ button to email the customer more information about a product shown on the screen (to their email or possibly to their phone)
  3. Allow the customer to announce via social media that they’ve just picked up their product
  4. Pick select customers to win a prize based on some kind of points scheme related to their number (or value) of pickups – or just by pure chance – (check door 32 and you might be a winner) – adding an element of fun, mystery, and anticipation to the customer’s package retrieval experience
  5. Allow people to order popular products from what is effectively a kiosk, either for immediate delivery or via Amazon Prime delivery back to the locker in a couple of days

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