Tag Archives: customer service

Don’t Throw Teammates Under the Bus

Don't Throw Teammates Under the Bus

GUEST POST from Shep Hyken

I couldn’t hold back. I told an employee to stop complaining about her fellow employees in front of us, her customers. Here’s the story.

My wife and I were at a restaurant. The server seemed pleasant and professional, but as our food was delivered, we saw a different side of her. There was a mistake in the order. The side dishes we received were not the ones we chose. I didn’t think it would be a big deal. She could either take our meals back to the kitchen or let us keep our meals and bring out the side dishes we ordered. But to the server, it was a big deal.

She started to complain about how this happens “all the time.” She said, “The people in the kitchen don’t read the orders properly. They don’t know what they are doing back there.” She said a few other words that insulted her coworkers, but I stopped her and said as nicely as I could, “I’m sorry you’re frustrated with the team in the kitchen, but you really shouldn’t complain about them to us.”

Customer service is a team sport. There are others who support you and those whom you support. Sometimes, things go wrong, and they need to be fixed. Often, the person the customer is talking to isn’t at fault, but that doesn’t mean they can’t own some responsibility and represent the company and its employees in the best light.

Blame Game Cartoon from Shep Hyken

I thought about how a company can avoid an employee “throwing other employees under the bus” and came up with a number of ideas to mitigate or eliminate this from happening. Here are three of them to get you thinking:

  1. Emphasize the Team: Encourage employees to use the word “we” instead of “they.” The right vocabulary can support the idea of a team effort in taking care of customers.
  2. Teach Accountability: It may not be an employee’s fault, but it is now their opportunity to fix the problem. Think about the last time you called a company’s customer support number with a complaint and it was handled perfectly. It wasn’t the customer support agent’s fault, but they owned the problem and solved it.
  3. Recognize Employees Who Support the Company and Employees When Mistakes Are Made: Praise employees who handle mistakes properly and uphold the dignity of their coworkers in front of customers. You can use the example for both recognition and a teaching opportunity for others.

When mistakes occur in the workplace, especially in customer-facing roles, the manner in which employees manage these situations can impact a customer’s perception of the business. Everyone must remember their Awesome Responsibility, which is that at any given time, one employee interacting with a customer represents all other employees.

Image Credits: Pexels, Shep Hyken

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The State of Customer Experience and the Contact Center

The State of Customer Experience and the Contact Center

GUEST POST from Shep Hyken

Oh, what a difference a year makes. A few months ago I traveled to Las Vegas to attend the Customer Contact Week (CCW), the largest conference and trade show in the contact center industry. For the past several years, the big discussion has centered on artificial intelligence (AI), and that continues, but Customer Experience (CX) is also moving into the spotlight. AI and natural language models can give customers an almost human-like experience when they have a question or complaint. However, no surprise, some companies do it better than others.

First, all the hype around AI is not new. AI has been in our lives for decades, just at a much simpler level. How do you think Outlook and other email companies recognize that an email is spam and belongs in the junk/spam folder? Of course, it’s not 100% perfect, and neither are today’s best AI programs.

Many of us use Siri and Alexa. That’s AI. And as simple as that is, it’s obviously more sophisticated when you apply it to customer support and CX.

Let’s go back 10 years ago when I attended the IBM Watson conference in Las Vegas. The big hype then was around AI. There were some incredible cases of AI changing customer service, sales and marketing, not to mention automated processes. One of the demonstrations during the general session showcased AI’s stunning capability. Here’s what I saw:

A customer called the contact center. While the customer service agent listened to the customer, the computer (fueled by AI) listened to the conversation and fed the agent answers without the agent typing the questions. In addition, the computer informed the agent how long the customer had been doing business with the company, how often they made purchases, what products they had bought and more. The computer also compared this customer to others who had the same questions and suggested the agent answer those questions. Even though the customer didn’t yet know to ask them, at some point in the future, they would surely be calling back to do so.

That demonstration was a preview of what we have today. One big difference is that implementing that type of solution back then could have cost hundreds of thousands of dollars, if not more than a million. Today, that technology is affordable to almost any company, costing a fraction of what it cost back then (as in just a few thousand dollars).

Voice Technology Gets Better

Less than two years ago, ChatGPT was introduced to the world. Similar technologies have been developed. The capability continues to improve at an incredibly rapid pace. The response from an AI-fueled chatbot is lightning fast. Now, the technology is moving to voice. Rather than type a question for the chatbot, you talk, and it responds in a human-like voice. While voice technology has existed for years, it’s never been this good. Google introduced voice technology that seemed almost human-like. The operative word here is almost. As good as it was, people could still sense they weren’t talking to a human. Today, the best systems are human-like, not almost human-like. Think Alexa and Siri on steroids.

Foreign Accents Are Disappearing

We’ve all experienced calling customer support, and an offshore customer service agent with a heavy accent answers the call. Sometimes, it’s nearly impossible to understand the agent. New technologies are neutralizing accents. A year ago, the software sounded a little “digital.” Today, it sounds almost perfect.

Why Customers Struggle with AI and Other Self-Service Solutions

As far as these technologies have come, customers still struggle to accept them. Our customer service research (sponsored by RingCentral) found that 63% of customers are frustrated by self-service options, such as ChatGPT and similar technologies. Furthermore, 56% of customers admit to being scared of these technologies. Even though 32% of the customers surveyed said they had successfully resolved a customer service issue using AI or ChatGPT-type technologies, it’s not their top preference as 70% still choose the phone as their first level of support. Inconsistency is part of the problem. Some companies still use old technology. The result is that the customer experience varies from company to company. In other words, customers don’t know whether the next time they experience an AI solution if it will be good or not. Inconsistency destroys trust and confidence.

Companies Are Investing in Creating a Better CX

I’ve never been more excited about customer service, CX and the contact center. The main reason is that almost everything about this conference was focused on creating a better experience for the customer. The above examples are just the tip of the iceberg. Companies and brands know what customers want and expect. They know the only way to keep customers is to give them a product that works with an experience they can count on. Price is no longer a barrier as the cost of some of these technologies has dropped to a level that even small companies can afford.

Customer Service Goes Beyond Technology: We Still Need People!

This article focused on the digital experience rather than the traditional human experience. But to nail it for customers, a company can’t invest in just tech. It must also invest in its employees. Even the best technology doesn’t always get the customer what they need, which means the customer will be transferred to a live agent. That agent must be properly trained to deliver the experience that gets customers to say, “I’ll be back.”

Image Credits: Pexels, Shep Hyken

This article originally appeared on Forbes.com

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Not All Customers Are Worth Doing Business With

Not All Customers Are Worth Doing Business With

GUEST POST from Shep Hyken

In some of my customer service speeches, I joke that some customers aren’t worth doing business with. The way I position it in the speech is funny, but in reality, it’s pretty serious. Sometimes, a customer isn’t worth doing business with because they are truly a bad customer. The result could be choosing to say, “Goodbye,” and sending them to the competition.

While there are many reasons you might end your relationship with a customer, I came up with six obvious ones to get you thinking:

  1. Customers who repeatedly return products. This is often the result of a liberal return policy that some customers abuse. Repeated returns cost money – sometimes more than the profit from the sale.
  2. Customers who make unwarranted complaints about service. You’ve heard the recording: “These calls are recorded for quality assurance.” Not only are recorded calls great for training, but they can also become evidence of a customer who has an unwarranted complaint about the company’s customer service – or any other situation.
  3. Customers who demand unreasonable solutions to problems. If the customer’s demands are unreasonable and they won’t accept the solutions or compensation an employee is offering, it may be time to let them go.
  4. Customers who take up too much time. For example, customers who repeatedly send back products, which takes up too much time and costs the company money.
  5. Customers who are argumentative. Some customers will argue, and nothing will make them happy. When they realize you are about to “fire” them as a customer, they sometimes recognize that they are being unreasonable. But, when they don’t, it’s time to consider saying, “Goodbye.”
  6. Customers who are abusive toward employees. This is more than an argumentative customer – it is taking rude and argumentative to another level. The customer curses, insults or threatens the employee. While we always want to be polite to our customers, sometimes it’s okay to politely transfer them to a manager or, if empowered to do so, politely say goodbye and hang up.

Bad Customer Cartoon from Shep Hyken

Keep in mind that it’s our job to take a negative event or abusive customer and turn the situation around. Another way of saying it is to turn rants into raves. Yet, in some cases – hopefully very few – the customer may truly not be worth doing business with … today. That could change in the future. Keep that in mind. Remember one of my favorite sayings:

The customer is not always right, but they are always the customer.

Consider that saying before slamming the door on an abusive customer. If you feel it can’t be worked out – today – close the door quietly, but consider leaving it open, ever-so-slightly, just in case they realize the error of their ways. Maybe they will come back, apologize, and become a great customer – one that is well worth doing business with!

Image Credits: Pexels, Shep Hyken

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Customer Service Makes You Money

Customer Service Makes You Money

GUEST POST from Shep Hyken

Necessity is the mother of invention. In 2003, Marton Anka, the founder of LogMeIn, now GoTo, spent three hours a day in Budapest crossing a bridge between Buda and Pest, the two halves of Hungary’s capital. He hated the “downtime,” so he invented remote access to a server so he could log in from anywhere—hence, the name of the company, LogMeIn.

Over time, the company expanded its offerings, had a few mergers and acquisitions and ultimately became GoTo, a company that makes IT management, support and business communications easy. Many of you reading this article may be familiar with GoTo Webinar and GoTo Meeting. These communication products (and others) have developed into a company focused on customer communication tools, phone systems, contact center platforms and engagement tools such as web chat, SMS communications, social media and more.

That’s the backdrop of my Amazing Business Radio interview with Joseph Walsh, vice president of product marketing at GoTo. We focused on several important concepts for CX leaders to consider as customer service continues to evolve and become one of the most powerful growth engines that fosters repeat business and customer loyalty. Below are the main points, followed by my comments:

  • The entire company must work in tandem with the customer support department. The old term silo came to mind. Many companies still have departments that operate almost autonomously, in silos, without regard to the other departments. Imagine the power a customer support agent working with a customer would have if they could easily reach out to someone in product development, accounting or sales in real time to get answers to their customer’s questions. Walsh says, “You need fast access to subject matter experts in other parts of the company.” This eliminates having to call the customer back and cuts down on the time it takes to answer customers’ questions and resolve their issues.

There are four stages of contact centers. Walsh talked about the four stages/lifecycle of a typical contact center. For an organization to understand where it is today, it must see where it fits into the different stages of contact centers, which are:

    1. Initiate Conversations: This is the traditional contact center. It’s where most companies start to build and expand their customer support department. They prepare to field multiple calls, answer emails, etc., often using basic/standard phone systems and computers to get started. People are trained with scripts, and while a good start, it’s still basic at best.
    2. Collaboration: This goes back to Walsh’s first point about collaborating with experts and departments throughout the company. On the customer’s first (and hopefully only) call, the agent can reach out to the appropriate people to get the right answers and convey that information to the customer for a much better experience.
    3. Digital Transformation: Walsh used the word omnichannel to describe how different communication channels work together seamlessly. A customer may start with a social media post to ask for help. At some point, they may be texting. That’s followed up with a phone conversation. But what makes this special is that it is a progressive conversation using these different communication platforms versus multiple interactions in which the customer must start over and repeat the story or problem at every interaction. Walsh says, “At this stage, the people and companies are beginning to master the craft of customer experience.”
    4. Automate and accelerate: This is where the modern contact center has evolved. Most of the first three stages of the lifecycle merge with modern technology and allow customers to employ self-service, work out problems and answer questions on their own. Automated processes and AI create a better experience by reducing and/or eliminating mundane, repetitive tasks. Customers and employees are happy.

    Customer service becomes a growth opportunity. It surprises me that some business leaders still view customer service as a cost center. The new way of looking at CX is that it is a revenue generator that retains customers and grows business. Walsh said, “The more evolved, digitally powered contact center is a growth center for achieving higher customer service scores that drive repeat customers and give the customer such a happy experience that they’re not concerned about price.” This powerful statement can be backed up with data proving customer service doesn’t cost. It pays!

    In a competitive marketplace, companies must prioritize exceptional customer experiences to thrive. By embracing collaboration, digital transformation and automation, companies and brands can turn customer service from a cost center into a growth engine. As Walsh emphasized, a digitally evolved contact center does more than simply improve service. It also drives loyalty, revenue and growth.

    Image Credits: Pexels

    This article originally appeared on Forbes.com

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Creating the Ultimate Customer Experience with AI

Delivering Real Value the Key

Creating the Ultimate Customer Experience with AI

GUEST POST from Shep Hyken

Whenever I get the chance to interview the CEO of a major CX company, I jump at the chance. I recently conducted a second interview with Alan Masarek, the CEO of Avaya, a company focused on creating customer experience solutions for large enterprises.

My first interview covered an amazing turnaround that Masarek orchestrated in his first year at Avaya, taking the company through Chapter 11 and coming out strong. Masarek admits that even with his extensive financial background, he’s always been a product person, and it’s the combination of the two mindsets that makes him the perfect leader for Avaya.

In our discussion, he shared his view on AI and how it must deliver value in the contact center. What follows is a summary of the main points of our interview, followed by my commentary.

Why Customer Service and CX Are Important: Thanks to the internet, it’s harder for brands to differentiate themselves. Within minutes, a customer can compare prices, check availability, find a company that can deliver the product within a day or two, or find comparable products from other retailers, vendors and manufacturers. Furthermore, while the purchasing experience needs to be positive, it’s what happens beyond the purchase that becomes most important. Masarek says, “Brands are now trying to differentiate based upon the experience they provide. So any tool that can help the brand achieve this is the winner.”

Customer Service Is Rooted in Communications: Twenty years ago, the primary way to communicate with a company was on the phone. While we still do that, the world has evolved to what is referred to as omni-channel, which includes voice, chat, email, brand apps, social media and more. As we move from the phone to alternative channels of communication, companies and brands must find ways to bring them all together to create a seamless journey for the customer.

Organizations Want to Minimize Voice: According to Masarek, companies want to move away from traditional voice communication, which is a human on the phone. That “one-to-one” is very expensive. With digital solutions, you have one-to-many. Masarek says, “It’s asynchronous. And the beauty is you can introduce AI utilities into the customer experience, which creates greater efficiency. You’re solving so many things either digitally or deflecting it altogether via the chatbot, the voice bot or what have you.”

AI Will Not Eliminate Jobs: Masarek says, “There’s a bull and a bear case for an employment point of view relative to AI. Will it be a destroyer of jobs, a bear case, or will it grow jobs, the bull case?” He shared an example that perfectly describes the situation we’re in today. In the 1960s, Barclay’s Bank introduced the ATM. Everyone thought it would be the end of tellers working at banks. That never happened. What did happen is that tellers took on a more important role, going beyond just cashing checks or depositing money. It’s the same in the customer service world. AI technologies will take care of simple tasks, freeing customer service agents to help with more complicated issues. (For more on how AI will not eliminate jobs, read this Forbes article from September 2023.)

The Employee Experience Drives the Customer Experience: AI is not just about supporting the customer. It can also support the agent. When the agent is talking to a customer, generative AI technology can listen in the background, search through a company’s knowledge base and feed the agent information in real time. Masarek said, “Think about what a pleasant experience that is for both the agent and the customer!”

Innovation Without Disruption: A company may invest in a better customer experience, but sometimes, that causes stress to the organization. Masarek is proud of Avaya’s value proposition, which is to add innovation without disruption. This means there’s a seamless integration versus total replacement of existing systems and processes. Regarding the upgrade, Masarek says, “The last thing you want is to rip it all out.”

The Customer-In Approach: As we wrapped up our interview, I asked Masarek for one final nugget of wisdom. He shared his Customer-In approach. Not that long ago, you could compete on product, price and availability. Today, that’s table stakes. What separates one brand from another is the experience. Masarek summarized this point by saying, “You have to set your North Star on as few things as possible. Focus wins. And so, if you’re always thinking Customer First and all your decisions are rooted in that concept, your business will be successful. At the end of the day, brands win on how they make the customer feel. It’s no longer just about product, price and availability.”

Image Credits: Pixabay

This article was originally published on Forbes.com.

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The Role of Respect in Customer Service

The Role of Respect in Customer Service

GUEST POST from Shep Hyken

Some of you will not recognize the name Rodney Dangerfield, who was one of the funniest comedians of his time, if not all time. He passed away in 2004. (For those who aren’t familiar with Dangerfield, go to YouTube and search for his name, but only if you want to smile and laugh. And just a warning, some of his comedy club material is R-rated.)

Dangerfield had a signature line: I don’t get no respect. For example, “I don’t get no respect …

… When I was a kid, I played hide-and-seek. They wouldn’t even look for me.

… When I was a kid, my parents moved a lot, but I always found them.

… When I was a kid, I was so ugly my parents had to hang a pork chop around my neck to get the dog to play with me.”

That was fun, but it’s time to get serious. I was recently asked about the Pillars of Customer Service. Specifically, I was asked what I thought was the most important pillar.

Respect Cartoon from Shep Hyken

First, there are many “Pillars” of customer service, and if you do a little research, you’ll find articles by experts and examples from companies’ vision statements. As I thought of many of these, one immediately came to mind as an overarching important pillar:

“Respect the Customer.”

It may seem obvious that we should respect our customers. After all, without them, we don’t have a business. So, with that in mind, here are three of my favorite stats and findings about customer respect from my annual customer service research:

  • 61% of customers don’t think companies or brands respect their time! Ouch! This is because customers don’t like to wait on hold for long periods of time, or anything else that seems like a waste of their precious time. And speaking of making customers wait on hold …
  • 51% of customers are likely or very likely to switch companies or leave a brand because they had to wait too long on hold. It’s impossible to never make a customer hold. And, the concept of “too long” is different from one customer to the next. However, to mitigate the appearance of disrespect, at least let your customers know how long they will have to wait, and even better, give them the option of being called back.
  • 60% of customers are likely or very likely to switch companies or leave a brand because the company didn’t respond fast enough. This goes back to respecting your customers’ time. How long do they have to wait for a response?

While these findings focus on respecting the customer’s time, there are many other areas and opportunities to show respect to your customers. So, sit down with your team and discuss the answer to this simple question: Do you show your customers respect?

Image Credits: Pexels, Shep Hyken

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Creating an Unforgettable Customer Service Experience

Creating an Unforgettable Customer Service Experience

GUEST POST from Shep Hyken

There are two reasons your customer service is unforgettable: either it’s really good or it’s really bad.

Welcome to modern-day customer service, where, according to our annual customer service research (sponsored by RingCentral), 43% of customers would rather clean a toilet than call customer support.

Customers don’t want to call customer support. Perhaps something like this has happened to you. You make the call, wait on hold for an unreasonable amount of time, tell your story to a customer support rep who doesn’t have the expertise needed and transfers you to someone else, and in the process, accidentally disconnects you (UGH!), and when you call back, after another unreasonable hold time, you end up repeating your question to someone worse than the last rep. I can continue, but you get the idea. This is what customers fear will happen on their next call because, unfortunately, it’s happened to them too many times.

Of course, it’s not always like this. But you can’t ignore that customers’ expectations are higher than ever, which raises the bar for customer support. They have experienced what great service looks like from customer-focused organizations. They like it and become frustrated when they don’t get it from other companies.

I’m fortunate to be part of the board of advisors for CCW (Contact Center Week), the largest contact center organization in the world. The members of the board are the who’s who of customer experience (CX) leaders from recognizable brands you’ve done business with. The board’s conversations center around creating the best experience for customers. AI and other technologies are driving a better experience, but only for those companies willing to invest in them. The costs have come down, making it affordable for almost any size organization.

Many industries are improving, yet even with the best companies, there is always room for improvement. A key is to understand how customers think. For our research, we surveyed more than 1,000 U.S. consumers to understand what they think of today’s customer service and CX, including specific questions about their experiences with contact centers.

First, some general findings that should cause concern:

  • In 2024, 91% of U.S. consumers think companies should put more emphasis on customer service than they have in the past.
  • In the past year, 43% of customers say they have had more bad customer service experiences than in previous years.
  • When calling customer support, 61% of customers feel that the company does not value their time.

Let’s drill down where customer service seems to matter most: the contact center. To begin, there is a shift to self-service support, often fueled by AI. With all the hype around AI and customer service, you think it would be better than it is, but it’s not, and for the simple reason that not all companies and brands have invested in newer technology. For those that have, they are reaping the benefits of great ratings. And some customers love self-service so much they won’t do business with a company that doesn’t offer it. We asked about self-service versus making a phone call to a company for support and found that:

  • A phone call is still the No. 1 communication channel. Seventy percent of customers prefer to call a company to solve a problem versus through a digital self-service experience.
  • Some companies have chosen to eliminate the phone, only offering self-service solutions. There’s a risk to this, as 67% of customers would not feel comfortable doing business with a company that doesn’t offer live support.
  • However, there is a small group of customers, 26%, who have stopped doing business with a company because self-service options weren’t offered. Many of these customers are younger Gen-Z and Millennials.
  • Even if you have older customers, don’t let these numbers cause you to abandon self-service support. Over half (60%) of customers always try a company’s Frequently Asked Questions (FAQ) section on its website or other digital self-service options before calling for help. Typically, a customer goes to the company’s website to get the phone number. If there is an obvious way for them to try to get their question answered or problem resolved, a majority of customers will give it a try.

And once the customer does connect with a customer support agent, if the experience starts to “go south,” the result is an angry customer who won’t come back. The reasons are as follows:

  • 81% of customers said rudeness or apathy would likely cause them to switch companies or leave a brand.
  • 72% said being transferred to different people would cause them to not come back.
  • 68% said having to repeat the same story again and again would cause them to leave.
  • 51% said waiting on hold for too long would give them a reason to move on.

This sounds like the scenario toward the top of the article. Sometimes, the agent doesn’t even need to connect with a customer to make them become upset. Eight out of 10 U.S. consumers (79%) have called customer support, gotten an automated menu system, repeatedly yelled “Agent” or “Representative” into the phone and eventually hung up out of frustration.

But it’s not all gloom and doom for the customer service and the contact center world. Even though customers are not always happy to contact customer support, when it’s good they come back, tell their friends and write positive reviews. So, let’s close with some of the more positive findings:

  • 85% of customers are willing to go out of their way to do business with a company that delivers a better service experience.
  • 51% will pay more, indicating that a great service experience makes the price less relevant.
  • Finally, the top three reasons customers come back are helpful, knowledgeable and friendly employees. (That’s all it takes? How hard is that?)

Well, although it sounds simple it’s not necessarily easy or easy to find. But now that you know the secret, it’s time to set some goals. I’ll add another word to those three for a truly winning combination: consistency. If your customer service reps are consistently helpful, knowledgeable and friendly, you will be unbeatable!

Image Credits: Wikimedia Commons, Shep Hyken

This article originally appeared on Forbes.com

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Aligning Leadership Goals with Customer Service Excellence

Aligning Leadership Goals with Customer Service Excellence

GUEST POST from Shep Hyken

My friend Sterling Hawkins just wrote a great article about the tension between the leadership of a company and the salesforce. Hawkins reports the president of a Fortune 500 company told him, “Tension between the salesforce and leadership is normal. One is always bargaining with the other for more. The sales team wants more time and budget, and the leadership wants more sales.”

That made me think of the tension that is sometimes created between leadership and the customer service team. In the end, it’s mostly because of unrealistic expectations.

Customer Service Goals Cartoon

It reminds me of an episode of Amazing Business Radio when I interviewed Bill Price, Amazon’s first VP of global customer service, who shared founder and CEO Jeff Bezos’s philosophy about customer service, which was that the experience should be so frictionless that customers wouldn’t need support.

Obviously, a retailer the size of Amazon not needing customer support is unrealistic, but the goal is lofty. Bezos recognized the need for a customer support department and needed someone to run it. In the job interview, Bezos asked Price, “What’s your definition of customer service?” Price answered, “The best service is no service,” and it was apparently the right answer. Price got the job.

In customer service and CX, it’s impossible to be perfect, but that doesn’t mean you shouldn’t try. Still, you must have reasonable expectations. You can’t expect there to never be a problem. You can’t expect a perfect NPS or customer satisfaction rating. But what you can do is create goals, expectations and KPIs that positively impact forward progress.

Here’s another – more generic – example. There are 32 teams in the National Hockey League, and only one will win the Stanley Cup. At the beginning of the season, it’s reasonable for a team’s leadership to say to the players, “Let’s try to win the Stanley Cup!” That’s probably what most teams strive for. What the teams’ leadership doesn’t say is, “You must win every game.”

Creating unrealistic goals and objectives is demotivating. In CX (and just about every other part of a company), leaders should meet with their teams to define success, create realistic goals, include some “stretch goals,” and push their people to continuously improve and be more successful. The right conversations lead to a unified organization headed toward the same goal.

So, what’s a reasonable goal for your customer service teams? Is it higher customer satisfaction scores, higher percentages of first-call resolution, shorter hold times, or something else? Whatever it is, everyone must get in sync and agree on a plan. Then, as a unified team, execute it with a commitment to always doing their best and improving.

Image Credits: Wikimedia Commons, Shep Hyken

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A $3.7 Trillion Customer Experience Problem

A $3.7 Trillion Customer Experience Problem

GUEST POST from Shep Hyken

Bad customer experiences could cost organizations throughout the world $3.7 trillion annually. That’s according to new research by the experience management company Qualtrics. This figure is up 19% from the company’s projections last year ($3.1 trillion). This is a mind-blowing statistic considering the importance companies and brands are putting on customer service and experience.

During the third quarter of 2023, Qualtrics surveyed about 28,400 consumers in 26 countries about their bad experiences with organizations across 20 different industries. The good news is that the survey found consumers had 2% fewer bad experiences compared to the year before. Still, because of increased spending and other factors, the result is a potential loss that, to put it in perspective, is more than double the U.S. deficit in 2023.

Our just released 2024 customer service and CX research (sponsored by RingCentral) also has some important findings that support the need to provide a better experience. While the Qualtrics survey is international, we focused on the U.S. consumer, matching the census for age, gender, ethnicity and geography. So, what do these findings mean for a company or brand? They have two choices: accept the loss due to a bad experience or create a competitive advantage with a service experience that drives higher sales, higher profits and customer retention. Consider the following:

  • In 2024, 88% of customers think customer service is more important than ever. That’s up from 83% in 2022 and 2023. In 2010, major consulting firms (Walker, Forrester, Bain and others) started predicting that within 10 years, the customer experience would be as important—if not more so—than the product. Of course, the product has to work, but comparable products can usually be purchased from numerous retailers or vendors.
  • In 2024, 64% of customers said no matter how much they enjoy the product, if the company doesn’t provide good customer service, they will find another company to do business with. And that’s the point those major consulting firms were making more than 10 years ago! While product quality will always be important, the majority of today’s customers (more than six out of 10) insist on an experience that meets their expectations.
  • In 2024, 85% of customers are willing to go out of their way to do business with a company that has better service. That’s up from 76% last year. Customers are willing to put forth more effort, spend more time, drive farther and put up with other inconveniences if they know the company or brand will provide a better experience than a CX laggard that may be more convenient. So, the question is: Are you the company that customers go out of their way to do business with?
  • In 2024, 94% of customers feel convenience is important. Convenience is the highest rated experience customers want. But as you saw in the prior finding, convenience with bad customer service still puts you at a high risk of losing customers.
  • In 2024, the top three reasons customers come back to a company are helpful, knowledgeable and friendly employees. Customer service doesn’t have to be complicated. How hard is it for people to be helpful and friendly? And being knowledgeable is a function of training and education. These three together create a powerful experience that gets customers to come back and evangelize a company or brand.

These findings are meant to make you think about the advantages and disadvantages of delivering an excellent experience. I’ve always preached that customer service is common sense—that’s not always so common. Customer experience includes service, but there’s more to it as you look beyond the traditional human-to-human contact, and instead, analyze every interaction the customer has with your organization. To eliminate some of the complications and confusion, start with the end in mind, which is to understand your customers’ “journey” and what you must do to meet their needs and expectations. Build out the experience from there—an experience that doesn’t push them to the competition, but instead gets them to say, “I’ll be back.”

Image Credits: Pixabay
This article originally appeared on Forbes.com

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24 Customer Experience Mistakes to Stop in 2024

24 Customer Experience Mistakes to Stop in 2024

GUEST POST from Shep Hyken

My friend and fellow Customer Experience (CX) expert Brittany Hodak and I recently began a 52-week series for 2024 titled Shep and Brittany’s Super Amazing Show. In the second episode, rather than talk about what to do in 2024, we shared several tips on what not to do. More specifically, it’s about what we should stop doing. That inspired me and I thought it would be fun to put together a list of twenty-four (24) CX things to stop doing in 2024.

Now, this is important: Not everyone or every company is doing any or all of these. You and your organization may not be guilty of even one of these, but discussing the list can get you thinking about other things to stop doing or give you an idea of something to start doing. So, here are 24 things companies do that annoy their customers and that need to stop:

1. Stop wasting your customers’ time. If you can’t do something for them, tell them. Help them find alternatives. Don’t string your customer along.

2. Stop with long hold times. This is a major way of wasting a customer’s time. Along with this are those recorded messages that say “we are sorry and respect your time” … but we’re still too busy to answer your call. If you can’t stop long hold times, tell the customer how long it will be with an option to call back.

3. Stop using outdated technology. Your competitors will start using newer technologies, and guess what? Your customers might notice.

4. Stop using company jargon and technical language your customers might not understand. They become very frustrated.

5. Stop with the irritating “pop-ups” on websites. People hate when they land on a website and a window pops up before they can start reading the content. Then another, and sometimes another! There’s a right time and right way to do it. Keep the customer in mind when you allow “pop-up windows” on your website.

6. Stop saying, “No problem,” when your customer says, “Thank you.” Was it a problem? Of course not. For some reason, this has become a standard response, and even if it really wasn’t a problem, it is just the wrong response. Just say, “Your welcome,” or, “My pleasure.”

7. Stop with unnecessary apologies. Some people say, “I’m sorry,” again and again. I’m not suggesting you don’t apologize to customers when there is a problem or complaint. You should, but don’t over-apologize. It’s not necessary. An apology at the beginning of taking care of the conversation is appropriate. And a “thank you” and final apology at the end is always appreciated. But repeatedly saying “I’m sorry” could come across as defensive and insincere.

8. Stop focusing only on your customers when working on your CX and service initiatives. Employees must also be considered. A great customer experience starts with a great employee experience.

9. Stop spamming customers with too many unwanted messages.

10. Stop sending your customers generic messages (promotions, notes, emails, etc.). If you’re going to send a message, find a way to personalize it. And even if it is personalized, go back and re-read number nine.

11. Get out of the “one-size-fits-all” mindset. This falls under the topic of personalization, but this is not about a marketing message. We must recognize and embrace people’s differences in today’s diverse culture.

12. Stop causing friction. What part of your process could go away? Do you force your customers to take extra steps to do business with you? Find ways to eliminate anything that causes friction.

13. Stop ignoring your customers’ feedback. If the customer takes the time to share a comment, thank them, and if it is appropriate, do something with it.

14. Stop arguing with customers, even when they are wrong. I’ve written this many times before: The customer is NOT always right, but they are always the customer. So let them be wrong with dignity and respect.

15. Stop making your customers wait for you to respond. Get back to people within an appropriate time. Don’t make them wait.

16. Stop being inflexible. If you have standards and processes that customers don’t like, they will find someone else to do business with. NOTE: Some standards could fall under compliance of legal standards. It’s okay to not be flexible on those!

17. Don’t hide add-on fees from your customers. Some hotels are upsetting their guests with resort fees that can only be found in the small print.

18. Stop nickel-and-diming your customers. This is different than hidden fees. It’s about the customer accruing an extra charge every time they turn around.

19. Stop being afraid to tell your customers bad news. They may not like the news, but they will appreciate hearing about it from you directly.

20. Stop making customers come to you when you can go to them. When it comes to convenience, always put the customer first.

21. Stop ignoring your employees’ suggestions. People on the front line are more in sync with customers than anyone. Make it easy for them to let management and leadership know about opportunities to improve.

22. Stop relying solely on digital interactions. Some companies have eliminated customers’ ability to connect with a live customer support agent. Don’t become so enamored with technology that you forget that the most powerful relationship builder is the human-to-human experience.

23. Stop with the bad survey strategy. Surveys can be sent too quickly, too frequently and are often too long. A bad survey taints the customer experience.

24. Never stop trying. Never be complacent. Customer service and CX are continuing journeys that must continually be refreshed and renewed to keep up with the competition and your customers’ needs.

Hopefully you didn’t recognize yourself in any of these scenarios that frustrate customers, but if there’s something you need to work on, now is the time. Most importantly, number twenty-four applies to everyone—never stop trying! There’s always something new on the horizon to advance your customer service and customer experience (CX).

This article originally appeared on Forbes.com

Image Credits: Shep Hyken

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