Author Archives: Shep Hyken

About Shep Hyken

Shep Hyken is a customer service expert, keynote speaker, and New York Times, bestselling business author. For information on The Customer Focus™ customer service training programs, go to www.thecustomerfocus.com. Follow on Twitter: @Hyken

Why We Love to Hate Chatbots

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Why We Love to Hate Chatbots

GUEST POST from Shep Hyken

More and more, brands are starting to get the chatbot “thing” right. AI is improving, and customers are realizing that a chatbot can be a great first stop for getting quick answers or resolving questions. After all, if you have a question, don’t you want it answered now?

In a recent interview, I was asked, “What do you love about chatbots?” That was easy. Then came the follow-up question, “What do you hate about chatbots?” Also easy. The truth is, chatbots can deliver amazing experiences. They can also cause just as much frustration as a very long phone hold. With that in mind, here are five reasons to love (and hate) chatbots:

Why We Love Chatbots

  1. 24/7 Availability: Chatbots are always on. They don’t sleep. Customers can get help at any time, even during holidays.
  2. Fast Response: Instant answers to simple questions, such as hours of operation, order status and basic troubleshooting, can be provided with efficiency and minimal friction.
  3. Customer Service at Scale: Once you set up a chatbot, it can handle many customers at once. Customers won’t have to wait, and human agents can focus on more complicated issues and problems.
  4. Multiple Language Capabilities: The latest chatbots are capable of speaking and typing in many different languages. Whether you need global support or just want to cater to different cultures in a local area, a chatbot has you covered.
  5. Consistent Answers: When programmed properly, a chatbot delivers the same answers every time.

Chatbots Shep Hyken Cartoon

Why We Hate Chatbots

  1. AI Can’t Do Everything, but Some Companies Think It Can: This is what frustrates customers the most. Some companies believe AI and chatbots can do it all. They can’t, and the result is frustrated customers who will eventually move on to the competition.
  2. A Lack of Empathy: AI can do a lot, but it can’t express true emotions. For some customers, care, empathy and understanding are more important than efficiency.
  3. Scripted Retorts Feel Robotic: Chatbots often follow strict guidelines. That’s actually a good thing, unless the answers provided feel overly scripted and generic.
  4. Hard to Get to a Human: One of the biggest complaints about chatbots is, “I just want to talk to a person.” Smart companies make it easy for customers to leave AI and connect to a human.
  5. There’s No Emotional Connection to a Chatbot: You’ll most likely never hear a customer say, “I love my chatbot.” A chatbot won’t win your heart. In customer service, sometimes how you make someone feel is more important than what you say.

Chatbots are powerful tools, but they are not a replacement for human connection. The best companies use AI to enhance support, not replace it. When chatbots handle the routine issues and agents handle the more complex and human moments, that’s when customer experience goes from efficient to … amazing.

Image credits: Unsplash

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How Bill Gates and Jeff Bezos Learn About Customer Experience

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When the CEO Picks Up the Phone

How Bill Gates and Jeff Bezos Learn About Customer Experience

GUEST POST from Shep Hyken

Jeff Bezos, the former CEO of Amazon, shared a fascinating leadership story on the Lex Fridman Podcast about how he wanted to ensure his customers received the best customer experience (CX). In Amazon’s early days, Bezos noticed a discrepancy between the “wait times” the customer support department was reporting and the feedback customers shared. The support team reported wait times of less than 60 seconds, but customers told a different story. Instead of asking for more data, Bezos took matters into his own hands. He picked up the phone during a meeting with the leadership team and called Amazon’s customer service number himself.

The result was a ten-minute wait!

That one phone call did more than just expose a problem. It demonstrated the kind of leadership that sets the tone for others to follow. When the CEO is willing to experience what customers experience, it sends a clear message: customer service and CX are more than a department or a strategy. They are everyone’s responsibility.

Frontline Experience

When Leaders Get Out of Their Offices

This story illustrates the importance of leaders getting out of their offices and experiencing what’s happening in the field or on the front line. Reading reports and analyzing data are part of the job, but when it comes to customer experience, nothing beats getting firsthand information.

Bezos, in effect, mystery shopped his company, pretending to be a customer. What he was really doing was trying to get to the truth. Sometimes the truth can be experienced directly, or it can be observed.

For example, as I wrote about in my book I’ll Be Back: How to Get Customers To Come Back Again and Again, Bill Gates, the founder of Microsoft, visited the company’s product support center and talked to customers. He sat down at a desk in a cubicle, put on a headset, picked up the phone and said, “Hello, this is Microsoft Product Support, William speaking. How can I help you?”

The beauty of these simple strategies, which provide firsthand information about what customers are experiencing, what they’re asking or what they’re complaining about, is that, for the cost of a little time and effort, they’re incredibly revealing. You don’t need surveys. You need to be willing to see your company through your customers’ eyes.

One other thought about what Bezos and Gates did. They didn’t keep their efforts a secret. When your team sees you personally calling your company or taking customer support calls, they understand that customer service and CX are a priority that starts at the top.

So, take a page from the Jeff Bezos and Bill Gates playbooks. Pick up the phone. Visit a store. Experience your website. Spend time on the front line. Experience and learn about your business as your customer would. You might be surprised by what you discover, and your customers are sure to appreciate the changes that follow.

Image credits: Unsplash

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Samsung is Turning Customer Service into a Competitive Advantage

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Samsung is Turning Customer Service into a Competitive Advantage

GUEST POST from Shep Hyken

In the 1980s, Jan Carlzon was tasked with turning around Scandinavian Airlines, which had been losing money, and making it profitable. He achieved this by getting everyone to buy into a concept he called “The Moment of Truth.” The definition of this phrase was so straightforward that all Scandinavian Airlines employees could understand it and act accordingly. He defined The Moment of Truth as any time a customer (passenger) came into contact with the company, they had the opportunity to form an impression. All employees were tasked with managing these moments and creating positive impressions. That concept is every bit as valid today as it was over 40 years ago.

This idea is the same, and probably more so, for customer support, the “department” that handles complaints and problems. However, I’d like to paraphrase Carlzon’s timeless wisdom: Any time a customer comes into contact with the company’s customer support department, it is an opportunity to create loyalty.

When you create loyalty through a positive customer experience (CX), especially with customer support, several things happen. First, customers come back. Second, they spend more. Third, they trust the company more. And fourth, they become your best advertising in the form of word of mouth.

Mark Williams, the head of customer care at Samsung Electronics America, has been tasked with turning customer support into a loyalty machine. In a recent interview, he shared several important and powerful points that apply to any business:

Customer Service/Support Shouldn’t Be Just About Fixing Problems

A customer may reach out to the company about a problem, and when they finally finish with the interaction, they have a sense of confidence in the company. Every interaction, even when it starts with a complaint or problem, is an opportunity to turn the customer into a loyal customer and brand ambassador.

Customer Service can be Proactive, Not Just Reactive

This is a powerful concept: proactive customer service. Using technology, a company can anticipate problems. Technology is now being integrated into items to help identify problems, often before customers are even aware of them. For example, Samsung’s “smart appliances” can alert customers that the refrigerator is getting warm and help schedule a repair before all the food in the refrigerator and freezer spoils. Williams says, “Get to customers quicker and solve their problems before they even know they have a problem.”

AI Should Not Replace Humans

The more I talk to CX leaders, the more I hear that companies are not reducing their customer support teams because of AI. If anything, they recognize that AI is a tool that helps people, not replaces them. Williams says, “AI is not a replacement. It is an enhancement to make the experience better and let our agents focus on the customers so they can solve problems quicker and more accurately.” Furthermore, when AI is used internally to assist employees, it delivers the right information in a timely manner and empowers them to create a better customer experience. For complicated issues, AI supports the agent while they resolve customer issues and work on rebuilding the customer’s trust in the brand.

The Three S’s of an Amazing Customer Experience

Williams shared his three core principles for delivering an experience that creates loyalty:

  1. Speed: Reduce the time it takes to resolve a customer’s issue. The sooner, the better. Williams is proud that Samsung’s repair network for consumer electronics covers 99% of the U.S. Eight out of 10 Americans (81%) are within 30 minutes of getting their products serviced. That’s actually convenience combined with speed, a powerful combination.
  2. Simplicity: Make it easy for customers to do business with you. Remove confusing policies and anything else that is inconvenient for the customer. Listen to your front-line employees who are actively listening to your customers to get ideas on how to create a simpler and more convenient experience.
  3. Service: Design experiences that put your customers first. When you put yourself in your customers’ shoes, you’ll find opportunities to improve customer service and the overall customer experience. Service includes friendly employees who are knowledgeable and deliver an experience that builds confidence and trust, even when things go wrong, because customers know they can count on you.

Final Words

For those in leadership who still view customer support as a cost center, think again. The people on the front line, along with the people designing digital self-service — an AI-fueled experience — are the extension of your sales and marketing departments. Loyalty can be built by turning around a customer with a complaint. In short, customer service can be an income-generating department. Reliable products are a given, but it’s the way a company handles a customer during a contentious or disappointing moment that makes them say, “I’ll be back!”

This article was originally published on Forbes.com.

Image credits: Pexels

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Trust Built Now Will Help You Recover from Future Complaints

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Trust Built Now Will Help You Recover From Future Complaints

GUEST POST from Shep Hyken

When you have your customer’s confidence, the opportunity to create an excellent customer experience dramatically improves. That confidence comes from consistency. The customer knows what to expect, even if any problems or issues arise. They know you’ll take care of them.

This is a follow-up to my article that covered the Customer Service Recovery Paradox, in which a customer’s perception of the company is higher after a problem or complaint is resolved than if the problem had never happened at all. One of our subscribers, Sean Crichton-Browne of Market Culture, shared a great comment. The short version is that when you have the customer’s confidence, especially in potentially tenuous situations, customers work with you rather than against you.

Sean’s insight is spot-on and worth diving into further. Think about the last time you had a problem with a company you trusted versus one that you didn’t. By the way, that lack of trust could be because you haven’t yet experienced how they handle a problem, not because of any inconsistencies or problems in the past. With the trusted company, you most likely approached the conversation differently. You were more patient as you explained the situation, and you were more open to their suggestions and solutions.

Trust Recovery Cartoon from Shep Hyken

Contrast that with a company you don’t yet trust. You go into the conversation with your guard up, wondering if you’ll get the response and answers you hope for. You may even be prepared to fight for what you believe is right.

When customers trust you, they:

  • Give you the benefit of the doubt when mistakes happen.
  • Share more information about what went wrong, making it easier to fix.
  • Accept reasonable solutions rather than demanding unrealistic ones.
  • Remain calm and respectful, making it much easier to help them without having to first de-escalate the customer’s anger.

As mentioned, and worth mentioning again, confidence comes from consistency. Even if the customer has only done business with you once or twice, it can be earned through all of the positive touchpoints of those interactions. Every interaction, big or small, builds confidence. Every time you answer the phone, return a call promptly, respond to email quickly, keep your promises, and more, you’re building trust. When something does go wrong, not if something goes wrong, you will have those past interactions working for you.

Yes, we need to react to complaints and problems when they happen, but remember that your ability to resolve those issues successfully may have been determined long before the problem ever occurred. It’s determined by how you treat customers and manage every interaction, the small ones and the big ones. Every touchpoint is an opportunity to build the confidence that will make future problems easier to resolve. When you have their trust, customers work with you rather than against you.

Image credits: Flickr Mary Jane, Shep Hyken

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Humans Don’t Have to Perform Every Task

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Humans Don't Have to Perform Every Task

GUEST POST from Shep Hyken

There seems to be a lot of controversy and questions surrounding artificial intelligence (AI) being used to support customers. The customer experience can be enhanced with AI, but it can also derail and cause customers to head to the competition.

Last week, I wrote an article titled Just Because You Can Use AI, Doesn’t Mean You Should. The gist of the article was that while AI has impressive capabilities, there are situations in which human-to-human interaction is still preferred, even necessary, especially for complex, sensitive or emotionally charged customer issues.

However, there is a flip side. Sometimes AI is the smart thing to use, and eliminating human-to-human interaction actually creates a better customer experience. The point is that just because a human could handle a task doesn’t mean they should. 

Before we go further, keep in mind that even if AI should handle an issue, my customer service and customer experience (CX) research finds almost seven out of 10 customers (68%) prefer the phone. So, there are some customers who, regardless of how good AI is, will only talk to a live human being.

Here’s a reality: When a customer simply wants to check their account balance, reset a password, track a package or any other routine, simple task or request, they don’t need to talk to someone. What they really want, even if they don’t realize it, is fast, accurate information and a convenient experience.

The key is recognizing when customers value efficiency over engagement. Even with 68% of customers preferring the phone, they also want convenience and speed. And sometimes, the most convenient experience is one that eliminates unnecessary human interaction.

Smart companies are learning to use both strategically. They are finding a balance. They’re using AI for routine, transactional interactions while making live agents available for situations requiring judgement, creativity or empathy.

The goal isn’t to replace humans with AI. It’s to use each where they excel most. That sometimes means letting technology do what it can do best, even if a human could technically do the job. The customer experience improves when you match the right resource to the customers’ specific need.

That’s why I advocate pushing the digital, AI-infused experience for the right reasons but always – and I emphasize the word always – giving the customer an easy way to connect to a human and continue the conversation.

In the end, most customers don’t care whether their problem is solved by a human or AI. They just want it solved well.

Image credits: Google Gemini, Shep Hyken

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Just Because You Can Use AI Doesn’t Mean You Should

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Just Because You Can Use AI Doesn't Mean You Should

GUEST POST from Shep Hyken

I’m often asked, “What should AI be used for?” While there is much that AI can do to support businesses in general, it’s obvious that I’m being asked how it relates to customer service and customer experience (CX). The true meaning of the question is more about what tasks AI can do to support a customer, thereby potentially eliminating the need for a live agent who deals directly with customers.

First, as the title of this article implies, just because AI can do something, it doesn’t mean it should. Yes, AI can handle many customer support issues, but even if every customer were willing to accept that AI can deliver good support, there are some sensitive and complicated issues for which customers would prefer to talk to a human.

AI Shep Hyken Cartoon

Additionally, consider that, based on my annual customer experience research, 68% of customers (that’s almost seven out of 10) prefer the phone as their primary means of communication with a company or brand. However, another finding in the report is worth mentioning: 34% of customers stopped doing business with a company because self-service options were not provided. Some customers insist on the self-service option, but at the same time, they want to be transferred to a live agent when appropriate.

AI works well for simple issues, such as password resets, tracking orders, appointment scheduling and answering basic or frequently asked questions. Humans are better suited for handling complaints and issues that need empathy, complex problem-solving situations that require judgment calls and communicating bad news.

An AI-fueled chatbot can answer many questions, but when a medical patient contacts the doctor’s office about test results related to a serious issue, they will likely want to speak with a nurse or doctor, not a chatbot.

Consider These Questions Before Implementing AI For Customer Interactions

AI for addressing simple customer issues has become affordable for even the smallest businesses, and an increasing number of customers are willing to use AI-powered customer support for the right reasons. Consider these questions before implementing AI for customer interactions:

  1. Is the customer’s question routine or fact-based?
  2. Does it require empathy, emotion, understanding and/or judgment (emotional intelligence)?
  3. Could the wrong answer cause a problem or frustrate the customer?
  4. As you think about the reasons customers call, which ones would they feel comfortable having AI handle?
  5. Do you have an easy, seamless way for the customer to be transferred to a human when needed?

The point is, regardless of how capable the technology is, it doesn’t mean it is best suited to deliver what the customer wants. Live agents can “read the customer” and know how to effectively communicate and empathize with them. AI can’t do that … yet. The key isn’t choosing between AI and humans. It’s knowing when to use each one.

Image credits: Google Gemini, Shep Hyken

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How Empowered Are Your Employees?

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How Empowered Are Your Employees?

GUEST POST from Shep Hyken

Earlier this year, I wrote a Forbes article celebrating the 50th anniversary of the famous Nordstrom story in which a man wanted to return a set of used tires – even though Nordstrom never even sold tires. That fact didn’t stop the employee from giving the customer a refund. Right or wrong, that story is still talked about 50 years later!

I’ve mentioned this story in the past, and the point is that stories like these become legends inside an organization, and if the brand is lucky, they may even get some good press. They are not easy to find, unless you intentionally look for them. Nordstrom had been in business for 75 years before this legendary story was discovered and shared.

I’ve written about many such stories. They are a reminder for every company to find its unique story that exemplifies the importance of customer service. These stories are powerful because they become a “north star” for how a company should treat its customers. Publicity is optional. The real value is cultural.

Nordstrom Tires Story Cartoon from Shep Hyken

For example, there are numerous Ritz-Carlton legendary stories, such as Joshie the Giraffe, in which the hotel staff made a big effort to return a stuffed animal to a child. There are also stories that aren’t so famous. I interviewed Horst Schulze, the first president and co-founder of the Ritz-Carlton, who shared a story about empowering employees to take care of their guests.

The short version is that the Ritz-Carlton allows employees to spend up to $2,000 to resolve a guest issue without seeking manager approval. One day a housekeeper found a guest’s computer. The guest had already checked out and flown from California to Hawaii. She took it upon herself to book an airline ticket and personally delivered the laptop to the guest.

As crazy as this may sound, the housekeeper was not reprimanded but instead was applauded for her efforts. Then, she was coached that next time, overnight shipping would be sufficient. The point is, there’s no risk in taking care of a guest. The story became a teaching moment for both the housekeeper and all Ritz staff, reinforcing the hotel chain’s commitment to empowered, guest-focused service.

Not every company will have a $2,000 empowerment policy like the Ritz-Carlton or a story like Nordstrom that literally defines their customer experience, but that doesn’t mean you can’t enjoy similar benefits.

So, here’s your assignment. Find your company’s legendary customer service story. If you don’t yet have one, start looking for those stories. Use them in training, meetings, and internal communications. Over time, they will become the DNA of your customer service culture. And who knows? Fifty years from now, someone might still be telling your story.

Image credits: Pexels, Shep Hyken

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The Paradox of Customer Recovery

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The Paradox of Customer Recovery

GUEST POST from Shep Hyken

Here’s something that might surprise you. Some of your most loyal customers may be the ones who have had problems and complaints in the past. For years, I’ve been preaching that when a customer comes to you with a problem or complaint, the goal is not only to resolve the issue, but also to restore their confidence.

I was recently reminded of the concept known as the Service Recovery Paradox. Back in 1992, Michael McCollough and Sundar Bharadwaj coined the phrase to describe, according to Wikipedia, “a situation when the customer thinks more highly of a company after the company has corrected a problem with their service, compared to how they would regard the company if non-faulty service had been provided. The main reason behind this thinking is that the successful recovery of a faulty service increases the assurance and confidence from the customer.”

BOOM! That’s the point. Fix whatever needs to be fixed in such a way that makes things right and restores the customer’s confidence in you so well that they want to continue doing business with you. Furthermore, if done the right way, you not only get the customer to come back, but that confidence can also create loyalty. When the customer says, “I know I can depend on them even when there is a problem,” why would they consider doing business with anyone else?

Customer Service Recovery Shep Hyken Cartoon

When a customer brings a problem or complaint to your attention, they are hoping for you to take care of it. It’s how you go about doing so that will create the Customer Service Recovery Paradox. Three things must happen:

  1. The resolution makes the customer happy. It may be as simple as answering a question. Or it may require a repair, or a replacement of something that can’t be fixed. Regardless, the customer must agree that the resolution is satisfactory. However, that only brings you back to what the customer expected in the first place. Dissatisfaction can linger from the effort and friction they experienced in getting the issue resolved.
  2. It must happen fast. Speed is your friend. The faster to resolution, the better.
  3. Go beyond the fix. The problem is resolved, and you did it quickly and efficiently. That helps restore the customer’s confidence in you, but let’s take it just a bit further with what happens next. While some instances may require a refund or discount, that’s not always necessary. A simple note or email that thanks the customer for letting you help them and reminds them you will always have their back may be all it takes.

When customers know they can depend on you, especially when things go wrong, why would they risk doing business with anyone else? That’s not just customer retention. That’s a foundation for customer loyalty.

Image credits: Pexels, Shep Hyken

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Customer Experience Failures Are a Gift

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Customer Experience Failures Are a Gift Pixabay

GUEST POST from Shep Hyken

When things go wrong for your customer, that’s when you have the best opportunity to prove how good you really are. Anyone can look good when everything is running smoothly, but your true customer service “chops” show up during a service failure.

I recently went to a doctor’s office for an appointment. I arrived early to check in. The nurse at the desk was – no exaggeration – horrified that she had to tell me there was a glitch in the scheduling software, and my appointment had to be rescheduled. While some people might have taken a, “That’s too bad … it happens attitude,” she couldn’t have been more apologetic, showing tremendous empathy, and immediately went to work to find another time for me to return to see the doc.

I was at a restaurant and ordered a sandwich without mayonnaise. (I hate mayonnaise!) Of course, the sandwich came out slathered with mayo. The server spotted the mistake while setting the plate down in front of me. Before it even hit the table, she put it back on her tray. She served the rest of the food to everyone else at the table, and like the nurse who had to reschedule my appointment, she apologized and showed empathy. She immediately went to the kitchen to fix the problem. Several minutes later, I had a perfect sandwich.

Shep Hyken CX Failure cartoon

After both of these experiences, I received email messages asking me to complete a short survey. I gave each of these people and businesses a perfect, five-star rating. It wasn’t that they were flawless. In both cases, mistakes were made. But they each made a flawless recovery. In both situations, they didn’t offer a refund or anything for free. They just fixed the problem – but they did it with style. And when someone cares as much as these ladies did, how could I stay mad at them?

One important point: For this approach to work, problems have to be rare, not frequent, occurrences. No matter how nice employees are or how well they handle issues and complaints, if problems happen regularly, customers won’t trust the company. Excellence in recovery can only overcome occasional failures, not “systematic” ones.

I don’t need to rehash my Five Steps to Handling a Moment of Misery (Complaint), but it’s important to point out that both people handled the problems well. Rescheduling an appointment seems like a bigger issue than remaking a sandwich, but that’s not the point. The point is they both fixed the problem, and the attitude they took while doing so became even more important than the fix.

Both of these stories illustrate how, when you really care, you can win back your customer. A mistake isn’t the end of your relationship with a customer. Handled the right way, it’s an opportunity to build trust and loyalty by showing how good you really are when things don’t go according to plan.

Image credits: Pixabay, Shep Hyken

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Does Every Customer Get Your First-Time Energy?

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Does Every Customer Get Your First-Time Energy?

GUEST POST from Shep Hyken

While this isn’t formal research, I’ve asked many people the question, “What do you think is the most common question that customers ask employees?” I made the point that this isn’t about calling customer support; it’s a people-to-people interaction.

Almost everyone answers correctly: “Where’s the bathroom?”

If you were asked that every day – sometimes multiple times throughout the day – at what point would you start to act frustrated with any customer who asked you that question?

Here’s the point: The 50th person asking you where the bathroom is doesn’t know they are the 50th person. For them, it’s their first time asking you, and your response should make them feel that way.

This reminds me of my days performing magic shows at trade shows. One of my clients hired me for 10 straight days, during which time I performed twelve 20-minute shows daily – that’s 120 shows!

After the final show, my client asked, “How is it that after doing all of those shows throughout the week, you seem to be just as fresh as the first show?”

Feels Like the First Time Shep Hyken Cartoon

I hadn’t thought about it, but with not much thought, I answered, “I think about each audience. Everyone in the audience deserves my best effort and energy, as if they were my first. If I came off as bored or tired, I’d be letting them down, not to mention letting my client down. So, even though I may have performed the same tricks and delivered the same lines for every show, each audience – even the 120th audience after 119 shows – deserved my very best effort – my first-time energy.”

When a server at a restaurant recites the daily specials for the 12th time that night, do you want to hear them delivered with enthusiasm or with the boredom of repetition? Or maybe it’s a chef who has been asked 20 times a night for many years to prepare a dish that earned him a reputation and keeps customers coming back again and again.

Baseball legend Joe DiMaggio understood this principle perfectly. The story is a perfect example of this concept. A reporter interviewed DiMaggio and asked why he played every game so hard. He replied, “Because there might have been somebody in the stands today who’d never seen me play before and might never see me again.”

The best employees, chefs, athletes, and entertainers understand that repetition is their challenge, not the customer’s problem. They find ways to keep their responses and reactions fresh, be it the first or 500th time. This mindset transforms an ordinary customer experience into something extraordinary. Every customer deserves your first-time energy.

Image credit: Pixabay

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