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

Mediocrity is the Enemy

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How Successful Companies Reclaim Their Competitive Edge

Mediocrity is the Enemy

GUEST POST from Shep Hyken

In 1983, I read In Search of Excellence by Tom Peters and Robert Waterman. This iconic business book featured case studies of successful companies. Forty years later, many of these companies are no longer considered “excellent.” Some are no longer in business. Many organizations that once stood as industry leaders started operating on autopilot, allowing standards to slip, not paying attention to the competition and not keeping up with their customers’ expectations.

I recently interviewed John Rossman, a former Amazon executive, on Amazing Business Radio. We discussed the business challenge of sinking into mediocrity that he writes about in his new book, which he refers to as a manifesto, The Pig, the Lipstick and the Playbook of Champions.

One of the intriguing sections in his manifesto is titled The Tragic Tale of Competitive Advantage, where he refers to Kodak, Blockbuster and Xerox as “examples of once category-defining companies that could not move beyond the success that made them disrupters.” These are the types of brands whose leaders could have benefited from reading this short but powerful work.

Below are several key takeaways from our interview. These are leadership principles that can help us avoid mediocrity—or worse, failure—and improve our chances for success.

Leadership: The Pig and the Lipstick

Rossman explains that the “pig” in the title of his leadership manifesto refers to a successful business. The “lipstick” represents the lies we tell ourselves. For example, leaders say, “Next year, we’ll grow more.” “Next year, we won’t disappoint customers.” “Next year we’ll innovate.” These lies create two challenges that businesses face today:

Once a company becomes successful, it has an increasingly difficult time reinventing its value proposition.
A gradual acceptance of mediocrity in how the employees work together, serve customers and measure success can creep in. Over time, mediocrity doesn’t just become acceptable. It becomes the target.

Embrace Humility

To break free from mediocrity, Rossman emphasizes that change must begin with humility. Companies must be willing to admit their shortcomings, whether they’ve disappointed customers or employees or failed their own ambitions. He recommends instituting a formal Voice of the Customer program and paying close attention to disappointed customers. Rossman says, “I truly believe in humility as a starting point for change. Recognizing where we fall short with customers is crucial to being able to innovate and thrive.”

Don’t Play Defense

Rossman talked about “gold standard” companies that slipped from playing at the top of their game, including Boeing, Intel, Nike and Starbucks. Rossman referenced an interview with Howard Schultz, CEO of Starbucks, who summed up what happened as the company started changing its model. Schultz said, “The worst thing that a company can do, like a sports team, is start playing defense because you’re afraid to fail. That’s a disease.”

Rossman’s response to companies in that situation came from his Amazon days, when he learned about the concept of Big Bets.

Taking Big Bets

The concept of Big Bets is about ambition. Rossman explains, “The concept of big bets at Amazon is that the ‘big’ is the ambition, not the size of the bet. Everything is an experiment with the intention of winning, realizing that many won’t. Understanding that failure comes with the game of innovation is a critical mindset.”

In other words, an innovation mindset comes from running many small experiments with big intentions, knowing full well that many will fail, but also knowing that the ones that succeed will keep you competitive and can potentially transform the business. You must constantly place these bets, or your successes may eventually fall to the level of mediocrity as competition catches up and potentially passes you up.

A Perfect Ending

Toward the end of the manifesto, Rossman shares a Michelangelo quote that sums up his way of thinking and is a perfect way to end this article: “The greater danger for most of us lies not in setting our aim too high and falling short, but in setting our aim too low and ache, including Boeing, Intel, Nike and Starbucks. Rossman referenced an interview with Howard Schultz, CEO of Starbucks, who summed up what happened as the company started changing its model. Schultz said, “The worst thing that a company can do, like a sports team, is start playing defense because you’re afraid to fail. That’s a disease.”

Rossman’s response to companies in that situation came from his Amazon days, when he learned about the concept of Big Bets.

Taking Big Bets

A Perfect Ending

This article was originally published on Forbes.com.

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Turning Around Declining Customer Satisfaction

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Turning Around Declining Customer Satisfaction

GUEST POST from Shep Hyken

One of our subscribers asked, “How can I reverse our company’s declining customer satisfaction ratings?”

Not knowing specifics about the company, its customer feedback, how long the scores have declined, and other details makes it a difficult question to answer. Still, I felt compelled to share something that could help. What I came up with is a list of three “to-dos” that any company should use to find out what’s causing a downward trend.

As I was writing down my ideas, I realized that this list could also be used to find out what is causing customer satisfaction to go up. After all, don’t you want to know why customers are happy – and then do more of the same? Think about that as you read my short list. With that in mind, we’ll focus on the question of declining customer satisfaction.

Feedback Collection Cartoon Shep Hyken

My first response was three words: Find the friction!

Often, there are specific places in the customer’s journey that cause a drop in satisfaction. I refer to those as friction points. We want to eliminate or at least mitigate them. So how do you find these places? Three ideas:

1. Mystery shop your company. If you want to find out what customers experience, become a customer of your own company. Find out what customers experience during busy times, how long they have to wait on hold, how long it takes for someone to respond to an email and more.
2. Ask your customers. Get feedback through surveys and direct communication. When you hear about a complaint, follow up directly with the customer to learn more. Don’t assume it’s a one-off situation. If it’s happening to one customer, it could happen to many.
3. Ask your employees. The people working the front line, which includes the customer support team, salespeople and anyone else who interacts directly with customers, hear customer comments, both good and bad. Have ongoing conversations with front liners to learn what they are hearing.

Learning what customers are experiencing firsthand and having conversations with customers and employees is far different than reading a report. There’s nothing wrong with a report, and I advocate for that as well, but why not both? And once you have the information, don’t just talk about it. Do something about it. Find where there’s friction. Learn what makes customers unhappy. Change what needs to be changed. Then, watch for a trend of declining complaints and start to reap the benefits of rising customer satisfaction.

Image Credits: Pexels, Shep Hyken

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Boring AI is the Key to Better Customer Service

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Boring AI is the Key to Better Customer Service

GUEST POST from Shep Hyken

Boring can be a good thing. When something works the way it’s supposed to, it shouldn’t be a surprise. There shouldn’t be friction or drama if a customer has a problem or wants a question answered. It should just be easy. And when it comes to customer service, “easy” and “boring” are good. The experience should just happen the way the customer wants it to happen. You might call that boring. I call that excellent.

That was the beginning of a conversation I had with Damon Covey, general manager of unified communications and collaboration for GoTo, on Amazing Business Radio. GoTo is one of the leading cloud communications companies, providing software and solutions to companies of all sizes and helping them implement AI systems that work, without the complexity and stress that can come from new technology. Covey’s goal for our conversation was to demystify AI, cutting through the noise and complexities of flashy AI and taking it down to a practical level. Boring was the word he liked to use, emphasizing it should be easy, simple and uncomplicated.

In our discussion, Covey said that large companies used to make six- and seven-figure investments to implement AI. Today, AI technology is far superior and, at the same time, much less expensive, so even the smallest companies can afford it. They can get advanced technology for hundreds of dollars, not hundreds of thousands of dollars. Covey said, “For example, a small bike shop or an automotive dealership can now provide the same advanced customer service options as large corporations.” With that in mind, here are the main takeaways from our conversation:

Conversational AI

Until recently (within the past two or three years), a basic chatbot had to follow pre-set rules. Conversational AI provides a much broader opportunity, allowing a computer to interact with people in a natural, human-like manner. Today, AI can understand and respond to customers’ questions and issues with much more flexibility. It has the capability to recognize different languages and understand fumbled phrases, much like a human would. By using conversational AI, businesses can provide 24/7 service, allowing them to respond to customer queries and schedule appointments even when the customer contacts them outside of regular business hours.

Treat AI Like a Team Member

If you hire a new employee, you train them. Treat your AI solutions the same way. Covey said that, similar to training an employee, you need to set specific parameters and provide the AI with the necessary information to ensure it stays within the scope of your business requirements. He emphasized the importance of making sure the AI only draws from the information provided by your business, such as your website, FAQ pages, product manuals, etc., rather than pulling from a source outside of your company, to maintain accuracy and relevance. Covey said that AI should be continuously optimized and trained over time to improve its performance, much like you would train and coach a human employee to expand their capabilities.

Productivity: Automating Processes

Covey talked about automating processes. Anything you do more than three times can be a candidate for AI automation. For example, AI can integrate with a business’ telecommunications system to automate the process of taking notes during calls. It can then summarize the call, put the information into the customer’s record and create a list of next steps, if appropriate. This is a simple function that helps employees be more productive. Instead of an employee typing notes and summarizing the call, AI can handle the task so the employee can move on to helping the next customer.

Augmenting the Business

AI can help businesses do things they don’t normally do, such as remain open for certain functions (like customer support) after hours. It can act as an after-hours receptionist, answering phone calls, setting appointments or providing basic information to customers after business hours. That turns a business that’s typically open during traditional hours to a 24/7 operation.

It is Easier Than You Think

At the end of the interview, Covey dropped a nugget of wisdom that is the perfect way to close this article. For many, especially smaller organizations, deciding what technology to use and how to best use AI can be a daunting decision. It shouldn’t be. Covey says, “Start with the problem you want to solve, and solve for that problem.” He added that you should start using the technology for small problems. Once you understand how it works, the more complicated issues will be easier to solve for.

And that brings us back to where we started. AI doesn’t need to be complicated or flashy. It should be boring—in a good way. Start small, focus on one problem at a time and let AI do what it’s supposed to do: make customer service easier and more efficient. When done right, your customers won’t be amazed by the AI—they’ll just be amazed by how easy it is to do business with you.

Image Credit: Unsplash

This article was originally published on Forbes.com

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Are Your Customers’ Calls Actually Important?

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Are Your Customers' Calls Actually Important?

GUEST POST from Shep Hyken

Recently, I wrote an article about the customer service farce. One of several examples I shared was the line we often hear when calling customer support: “Your call is very important to us.” When we hear it, we hope it’s true. We hope it means that the company is going to respect our time, that someone will pick up the call quickly (versus being put on hold for an unreasonable amount of time), and that the agent we talk to will have the knowledge and skills to answer our question or resolve our complaint, and we’ll not have to repeat our story again and again.

In our most recent customer service and customer experience (CX) research, we asked a number of questions about contact centers that convey the message, “Your call is very important to us.” The answers will make you smile – maybe even laugh. I’ve shared some of these findings from surveys from the previous year. Here are the latest with a couple of new ones:

Cleaning the Toilet: Nearly four out of 10 customers (39%) say they would rather clean a toilet than call customer support. (That’s gross!)
A Root Canal Is Better Than This: A third of U.S. customers (34%) would rather visit the dentist than call customer support. (That’s painful!)
Dinner with In-Laws: Half of the customers (53%) say they would rather have dinner with their in-laws than call customer support. (That could be painful, too!)
Glossophobia (The Fear of Public Speaking): Even though speaking in public is one of the greatest fears, often ahead of death, one in four customers (26%) would rather speak in front of an audience of 1,000 than call customer support. (Yikes, that’s scary!)

But seriously … as humorous as some of these findings are, there’s some truth behind them. Consider these three findings from this year’s report:

Half of U.S. customers (51%) say that when they call customer support with a question or to resolve a problem, the company does not value their time.
And speaking of respecting time, over half of the customers we surveyed (55%) say they stopped doing business with a company or brand because it kept them on hold for too long.
Six out of 10 customers (63%) say they have stopped doing business with a company because of the inability to connect with someone from customer support. </li?

It sounds like I’m being negative, but the reality is that this information gives me hope – for the companies that get it right. The more serious findings mean that more than half of customers are ripe to switch companies, and if you’re doing it right, they are hopefully going to switch to you.

Whether your company has just a few dedicated employees to support your customers or a large contact center, this information and the opportunities we take from it are applicable to you. Your customers deserve attention and respect. Don’t make them feel as if their call is NOT very important to you!

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This article was originally published on Forbes.com

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Transforming Metrics into Action

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Customer Experience (CX) Leaders At Verizon, Autodesk And Prudential Are Going Beyond NPS

Transforming Metrics Into Action

GUEST POST from Shep Hyken

Is Net Promoter Score (NPS) still relevant? How can you transfer insights and data into meaningful actions? And how do you hire the right people to meet your Keep Performance Indicators (KPIs) and success metrics? Those were the questions I asked a panel of esteemed executives at a LinkedIn Live interview.

The guests were Brian Higgins, chief customer experience officer at Verizon Consumer, Elisabeth Zornes, chief customer officer at Autodesk, and Abhii Parakh, head of customer experience at Prudential. Their answers are important to any leader making decisions that impact the customer experience.

NPS Is A Foundational Metric, But Its Role Is Evolving

NPS is a powerful metric when used properly. It’s a simple question that determines whether a customer likes you enough to recommend you. From that single question, a follow-up question could seek further insight or action can be taken to improve what’s not working and elevate what is working. So, the first question I asked was about using NPS as a primary metric.

Parakh led off by saying, “No metric is perfect. Whether it’s NPS or something else, it’s always about a combination of tactics and measurements to get the insights on what our customers and advisors want. … We run the numbers on how much more value is being driven by our promoters or passives versus detractors, and we see a very meaningful connection between the two.” He cited three key benefits: effectively tracking long-term relationships, correlation with growth metrics and providing actionable insights.
Higgins said that Verizon uses NPS to benchmark in two important places. He said, “I want to look at how we are benchmarking against the competition and then against ourselves.” He looks at three areas: one, is Verizon growing or churning? The second is measuring interaction, both digital and with their reps. The third is taking a look at the overall health of the business. And in addition to measuring customer satisfaction, Verizon also uses NPS for employee satisfaction. If employees aren’t happy, the customer is going to feel it.
Zornes uses the measurement to strike a balance between Autodesk’s long-term relationships and direct engagement. She explained, “NPS is a great, long-lasting customer impression measurement for services, solutions and products, but we are in the age of digital first engagements, so we, of course, also measure specific moments in the digital journey along with customer effort scores.” While NPS is a foundational metric at Autodesk, they also use the Deloitte Trust ID to assess transparency, capability, reliability and care.

Bring Numbers To Life Through Employees

Competition turns companies and their products into commodities. All three companies represented on the panel have competition. Assuming the products and services do what they are supposed to do and meet their customers’ needs, what differentiates them from competitors is experience. Often, that experience is driven by employees. The next question focused on the hiring criteria that align with CX KPIs.

Zornes said, “The internal team and culture are really what determines the customer experience for our customers. So it’s absolutely critical we bring the right talent on board and foster it accordingly.”
Higgins focuses on three big areas for hiring. First, Verizon wants a wide range of experience and knowledge. Second, they want employees to act as “CX detectives,” meaning they never let small details get by. Listen and pay attention to the customer feedback and recognize the power of the details. Third, and what Higgins says is most important, is empathy. “A little voice in the back of your head says, ‘I don’t know if the customer is right, but that doesn’t matter. You’ve got to believe in them and make it right for them.’”
Parakh says, “It’s super important for any customer-facing role. But I would also say that in addition to customer experience roles, I think that a customer-obsessed mindset is important for any business role. It’s not just the CX team. I think customer experience is everybody’s job. So, across the company, we need to be looking for folks who have empathy for the customer, a growth mindset and familiarity with CX, as well as business knowledge.”

Rethinking How Technology And People Support CX

As the CX landscape evolves with new technology, so do the roles of employees. How do these three iconic brands rethink talent development to support the team’s ability to deliver an exceptional experience?

Higgins kicked off with a call back to Parakh’s comment about CX being everyone’s job. “If everyone owns CX across the company, it also means they have to get comfortable with the new sets of tools we’re putting in place. I think about AI, gen AI and agentic AI. You have to make sure employees are comfortable with these new tools that are engaging directly with customers.”
Parakh emphasized the importance of keeping up and changing with the times. “You can’t survive for 150 years by doing what you’ve always done. We’ve been through multiple stock market crashes and multiple pandemics, and we’ve done that by constantly reinventing, so when it comes to talent, we have to have the same mindset. Everybody in the company, starting from the top leadership, has to understand where things are going because everything is changing so fast.”
Zornes believes that the future is now. “AI is not coming. AI is here. And with that, there is a huge opportunity to really convert those transactions that we might have done in the past to a more smooth and self-service experience. … Some of the profiles of what jobs looked like in the past, what they look like now and what they will look like in the future continue to evolve.”

The future of customer experience lies at the intersection of meaningful metrics, empathetic teams and evolving technology. As Higgins, Zornes and Parakh shared in their answers, success comes not from any single measurement tool but from creating integrated systems that consistently detect, analyze and improve the interactions customers have with the brand. And when you add the right people who are able to demonstrate empathy, curiosity and adaptability, you have a winning combination of KPIs, technology and people that gets customers to say, “I’ll be back!”

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This article was originally published on Forbes.com

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Embracing Convenience as a Strategy

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Embracing Convenience as a Strategy

GUEST POST from Shep Hyken

I just received an email from the Dollar Shave Club. I’ve been a member (as in customer) of the “club” for more than 10 years. I joined the club after watching their irreverent, R-rated (for language) YouTube video that has more than 28 million views. The concept was simple. Pay a small monthly fee and new razor blades are delivered to your mailbox. The member never has to worry about running out of fresh razor blades ever again.

After giving them a try, I joined the club. For years, I received a package of four blades every month. I never worried about whether they would show up – they always did. It was so convenient, which is the reason for this article.

I’ve written about Dollar Shave Club and convenience before. Nothing new there, but what I want to share is the subject line of the email. It read:

More like Dollar Convenience Club

There’s nothing special about razor blades, but what makes Dollar Shave Club special is its customer experience model, which is built around convenience. When they first started selling razor blades in 2012, the subscription model was not as popular as it is today. The word “subscription” was tied to newspapers and magazines. Today, almost any business can come up with its own version of a subscription model.

So, back to Dollar Shave Club. What I love is how they promote convenience as much as, if not even more, than the actual razor blades and other “bathroom needs” – their words, not mine!

While it is still called Dollar Shave Club, inflation has led to a higher price. Not to worry. Their customers still buy from them. Why?

Convenience: This is the overarching reason they are in existence.
Quality products: If the blades weren’t good, it wouldn’t matter if they were called the “Less than a Dollar Shave Club.” Quality is important to them.
Price: Even though people are willing to pay more for convenience (the proof is in my annual CX research), they have chosen to go the opposite direction and have a low price that’s almost as compelling as the convenient experience.
Consistency and reliability: Customers know exactly what to expect and when to expect it. The predictable schedule and consistent quality create trust and confidence in the brand.
Fun: This is a bonus, but who doesn’t like a little fun? Its brand of fun may not be appropriate for everyone, but it is for some companies. Dollar Shave Club’s commercials are funny, which helps them stand out in a crowded market.

Shep Hyken Convenience Cartoon

The Dollar Shave Club doesn’t sell better blades. They sell a better experience. And that is the lesson for the day. If your product does what it’s supposed to do and you add the experience that customers want – and for the members of Dollar Shave Club, that’s convenience – you have a winning combination. And like Dollar Shave Club, consider promoting the specific experience.

So, in addition to promoting what you sell, what experience do you create and promote that makes your customers love you even more? That answer is what will get your customers to say, “I’ll be back!”

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Why Customers Pay More for Brands with Purpose

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Why Customers Pay More For Brands With Purpose

GUEST POST from Shep Hyken

How important is a social cause to your customers? More than half of the customers (62%) we surveyed for our 2025 annual customer service and customer service (CX) study said they prefer to do business with a brand that supports a social cause that is important to them. Fifty-two percent of customers said they would be willing to pay more to do business with a brand that gives back.

Patagonia is one of the most recognizable brands in business known for “giving back” to the world. Sustainability is a big part of its brand promise, and it is a model of how to practice commitment to the planet. For the customers who care about sustainability—and many of the brand’s customers do—this is an important reason they spend more money for a Patagonia product and remain loyal to the brand.

Money

Let’s start with money. Its 1% for the Planet program pledged 1% of sales to the “preservation and restoration of the natural environment,” and since starting the program in 1985, it has given back more than $140 million in cash and in-kind donations to environmental groups around the world.

Buying Back Used Merchandise

If you own used Patagonia or gear that’s in good shape, the company will pay you to send it back, provided it’s still usable. Patagonia’s Worn Wear program pays customers 25% of the MSRP in the form of credit that can be redeemed in-store or online.

Recycling

If you have worn-out Patagonia merchandise that is not usable, the company will take it back and recycle or repurpose it for you at no charge. All you do is send it back to its service center or drop the items off at a Patagonia store, and they will make sure it doesn’t end up in a landfill.

Repair Could Be a Better Option than Replacement

Imagine a company that would rather keep you using its merchandise and repair it for you or give you what you need to repair it yourself, even if it means you might not replace it for years. That would be Patagonia, which will do most of the repairs on its items at no charge. The company will also send free patch kits to repair tears and small holes in its apparel.

While Patagonia is a case study for sustainability, you don’t have to be an international brand to make an impact. Small, local companies give back to their communities. Regional chains support various charities and causes that are important to their customers. The size of your business doesn’t matter. A significant percentage of your customers care that you care.

Here are additional facts from our annual research that could compel you to start, continue or grow your cause and philanthropic efforts:

Trust

In the U.S., 52% of customers say a company’s involvement in a social cause increases their trust in that company. If you want customer loyalty, you must create trust. Without it, there’s no confidence. Caring for something more than the bottom line increases trust.

Customer Experiences Improves

Almost six in 10 customers (57%) in the U.S. believe that companies and brands that support social causes are more likely to treat customers better. When the customer has a great experience and the company gives back, you have a winning combination.

Know Your Customers

Some customers appreciate a company supporting a social cause more than others. Specifically, 53% of Gen-Z customers rate companies giving back as “important” compared to 29% of Baby Boomers. And price becomes less sensitive to Gen-Z’s as 60% of them say they would pay more, versus 27% of Baby Boomers. While there is a big difference between the generations, that doesn’t mean a company that caters to older customers shouldn’t be philanthropic. Twenty-nine percent of Boomers is almost one-third of the generation.

Conclusion: A Social Cause Is a Good Marketing Strategy

Social causes can be part of a company’s marketing strategy. There’s nothing wrong with that. More companies should “give back” if the result attracts and retains more customers. While the business benefits of supporting social causes are clear—increased trust, stronger loyalty and potentially higher sales—the most powerful social and charitable programs come from authentic commitment to the supported causes.

We can learn from companies like Patagonia. They make their cause part of their mission and core values, and customers feel their authenticity. Regardless of the type of business or industry you are in or how large or small your company is, when a social cause or charity matters to a company’s leadership, customers sense it and respond with their wallets. Yes, the financial returns are a natural byproduct, but not the primary goal. In today’s world, doing good is good business. It’s that simple.

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This article was originally published on Forbes.com.

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Don’t Do These Things When Giving Gifts to Customers and Employees

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Don't Do These Things When Giving Gifts to Customers and Employees

GUEST POST from Shep Hyken

It feels like Valentine’s Day was just yesterday. It is a time when you acknowledge the people you love and care about, often with a gift. I’ve written a number of articles about customer and employee gifts on Valentine’s Day and other obvious gift-giving holidays. It seems that the traditional holidays toward the end of the year are when companies or employees typically send or exchange gifts and cards.

Valentine’s Day is interesting. For personal relationships, it’s almost an obligation to give a gift. While it’s not directed toward professional or corporate relationships, some companies have found a way to have fun and send a card or gift to customers and employees. Unlike personal relationships, the choice to do so is optional. The same goes for other holidays throughout the year. How many companies send their customers or employees gifts for Independence Day or Thanksgiving? Depending on your country, there are plenty of holidays to give gifts outside of the traditional celebrations.

Just before Valentine’s Day, I was interviewed for an article by Bored Panda about corporate gifts that are “tacky, cheap, and insulting.” This made me reflect on my mentor of gift giving, the late John Ruhlin, author of Giftology, and his latest book, Beyond Giftology (released posthumously), who taught me the dos and don’ts of corporate gifting.

Shep Hyken cartoon on gifts

The point of gifting to customers and employees is to be remembered. However, not everyone does it right. So, for this article, I’ll share a few ideas on what NOT to do.

For Customers:

Don’t turn your gift into a marketing promotion with logos branded all over the gift.

For Customers and Employees:

Be careful about sending food. First, once they eat it, it’s gone and will soon become a distant memory. Second, if the customer or employee is on a specific diet, they may not appreciate or enjoy the gift.

Be careful about sending alcohol. Unless you know what they will enjoy (such as a favorite bottle of scotch or a special bottle of wine), avoid alcohol. Some choose to abstain from alcohol. Whatever their reason for doing so, you don’t want to appear to be insensitive.

For Employees:

Money is nice and a pleasant surprise, but it may be quickly forgotten and considered part of their compensation and not a true gift. Instead, consider giving employees a bonus day (or two) off or an experience, such as tickets to a sporting event or concert. Those are memorable.

Swag in the form of clothing is nice, and employees are proud to wear a logo on their sleeve but don’t turn your employees into walking billboards of your products and services. Subtle logos are the classy way to go.

So, those are some of the “don’ts” of corporate gift giving. There are many ways to do it right, and for an over-arching gifting strategy, consider that the gift should be unexpected, appreciated and memorable.

I’d like to close by mentioning my friend John Ruhlin once more. He left us on August 15, 2024, at the young age of 44. He was the greatest relationship builder I’ve ever met. Everyone who knew him felt a connection. He had many “best friends.” While he was a master at gift-giving for corporate relationships, every gift he ever gave, including his love for his friends, was genuine. John will be missed, but his legacy lives on. Thank you, John, for your gifts, which include knowledge, friendship, and love for all.

Image Credit: Shep Hyken, Unsplash

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Aiming for Zero Complaints

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Finding Excellence in the Pursuit

Aiming for Zero Complaints

GUEST POST from Shep Hyken

Vince Lombardi, the legendary football coach who won the very first (and second) Super Bowl, said to his team, the Green Bay Packers:

“Gentlemen, we will chase perfection, and we will chase it relentlessly, knowing all the while we can never attain it. But along the way, we shall catch excellence.”

That’s what I thought of when I started my interview with Bill Price, Amazon’s first vice president of global customer service, president of Driva Solutions and co-author (with Gautam Mahajan and Moshe Davidow) of Zero Complaints: The Path to Continuous Value Creation.

The concept of zero complaints intrigues me, and it should intrigue you as well. At times you may create a perfect experience for your customer, and it may happen often, but it won’t happen every time. In our interview, we talked about Price’s latest book and the importance of a relentless focus on perfection. Below are my interpretations of six of the most important takeaways from our interview:

An Aspirational Goal: Like Lombardi’s pursuit of perfection, zero complaints is not attainable, but a lofty goal that will have the byproduct of an excellent customer experience. Price says, “Achieving zero complaints isn’t just an aspirational goal. It’s a practical pathway to sustainable business success.”

The Cost of Customer Complaints: Price emphasized that the financial impact of not addressing complaints is costly. Research by Moshe Davidow, one of the book’s co-authors, found that unresolved complaints could account for 16-20% potential revenue loss through lost business, reputational harm and lower lifetime value of existing customers. It’s imperative to adopt a proactive approach to complaint management.

Service Recovery: The good news about customer complaints is that when they are managed the right way, you can turn complaining customers into loyal customers. Customers don’t want to complain, but if they have to, they will feel confidence when they realize the company will take care of them. Be sure your customer support—both self-service and with live agents—is consistently meeting and exceeding your customers’ expectations.

Proactive Complaint Management: As important as service recovery is, a better solution is to eliminate or reduce the times you have to recover. Study the “journey” your customers take when doing business with you and find ways to eliminate the friction and pain points that they might experience. Focus on delivering an excellent experience, rather than just excellent complaint resolution. This dual approach helps to ensure positive interactions, whether complaints happen or not.

Executive Buy-In: Leadership (and that includes the C-suite) should engage with front-line employees and experience the day-to-day operations firsthand. By working in customer-facing roles or performing normal tasks, leaders can gain valuable insights into existing challenges and improve processes. When decision-makers see the business through a customer’s eyes, they are more likely to implement and support meaningful improvements. Price shared that Amazon founder Jeff Bezos would spend time handling complaint calls. “He strapped on a headset (in the support center) or sat at the computer and answered emails. … Back then, his email address was jeff@amazon.com, and he actually shared that email address publicly.”

The ROI of Zero Complaints: There is a significant return on investment (ROI) that can be realized by minimizing customer complaints. First, reducing complaints leads to better customer retention. When customers have fewer issues, they are more likely to remain loyal and advocate for the brand, thereby attracting new business through word-of-mouth. Second, fewer complaints translates to lower operational costs. A reduction in customer issues means less reliance on customer support managing complaints, freeing up agents to help customers solve problems (not complaints) and free up resources that can be better utilized elsewhere.

Customer expectations are continually rising. Customers are smarter than ever and know from their own experiences what great service is. It is essential for businesses to adapt to a higher standard and expectation. Price says, “We must always maintain that what was good last year isn’t good anymore.”

Image Credit: Shep Hyken

This article was originally published on Forbes.com.

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Nothing and Everything Has Changed in Customer Service

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Nothing and Everything Has Changed in Customer Service

GUEST POST from Shep Hyken

With all the talk of AI, ChatGPT and more, I’m often asked when interviewed, “What’s changed in customer service?”

My answer is accurate: Nothing!

For thousands of years – actually about 3,775 years – when customers have had a problem or question, they have contacted the company they are doing business with and hoped that it would be resolved to their satisfaction. That’s the way it’s been and will continue to be for thousands of years to come.

But there’s also another answer to the same question about what’s changed: Everything!

By everything, I’m referring to the latest methods of responding to customers’ questions and handling their problems and complaints. I mentioned that for 3,775 years, customers have been contacting companies when they have problems or questions. About 10 years ago, I wrote a Forbes.com article when I learned that tucked away in the British Museum is an ancient complaint that dates back to 1750 B.C.

Nanni, the customer, bought copper ore from a supplier, Ea-Nasir. Unhappy with his purchase, Nanni sent a letter in the form of a stone tablet with the engraved complaint. Loosely translated, the “letter” opens with these words, “What do you take me for that you treat somebody like me with such contempt?” The rest of the letter was a demand that he receive what he thought was right.

Ancient Customer Service Shep Hyken

Customers still complain, and companies – at least the good ones – respond and properly take care of their customers. But how they do so has radically changed.

What may have started as an engraved complaint on a stone tablet eventually turned into handwritten letters, then phone calls, emails, chat, and more modern-day ways of communicating. AI has become the topic of the day, and the strides made in automation and self-service have come a long way.

While many companies are still improving and trying to keep up with the technology, customers who take advantage of the new ways to get questions answered and complaints resolved are very happy with the companies that have kept up with the latest ways to manage the customer experience.

At its core, customer service hasn’t changed. Customers still want to be heard, understood and valued. Sometimes, they even want a little empathy. However, what has changed is the way we deliver that experience. The tools may have evolved from stone tablets to AI chatbots, but the goal remains the same: take care of the customer.

Companies that embrace new technologies while staying true to the timeless principles of great service – listening, responding quickly, and meeting or exceeding expectations – are the ones that will keep their customers coming back. The best companies know that while everything seems to change, the most important thing never changes: a relentless focus on the customer!

Image Credit: Pixabay

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