Tag Archives: inconsistency

Customers Don’t Care About Your Profit

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They Care About Your Service

Customers Don't Care About Your Profit

GUEST POST from Shep Hyken

Recently, I heard from one of our subscribers, a sales and finance consultant at a luxury automobile dealership. He shared a story about how a customer was almost mistreated.

In the world of auto sales, some salespeople are 100% commission-based, and when they sell a vehicle at a discounted price, there is little to no profit, resulting in a very small commission. This is important, as sometimes these low-commission sales cause employees to treat customers differently than they would for a high-commission sale.

Customers expect to be treated the same regardless of how much or little they pay for their vehicle. Furthermore, they don’t realize, nor do they care, how much of a sales commission is paid to the employee.

Shep Hyken Customer Service vs Profit Cartoon

That brings us to the customer who bought a two-year-old luxury sports car. The first time it rained, she realized the windshield wipers needed to be replaced. The customer called her salesperson, who explained that he was happy to replace the blades. He went to his sales manager to ask how to handle the replacement and was told to charge her the cost of the blades or to tell her to buy them at Walmart for less than the dealership’s cost and bring them in to have them replaced.

The salesperson was shocked and reminded his sales manager that they were selling a premium brand. Eventually, the manager agreed, but the experience reminded him that profit, or the lack thereof, dictated the level of service the dealership would offer.

Three Customer-First Lessons

With that in mind, let’s use the story as a learning experience for all businesses. Here are three lessons from the story:

  1. The Customer Doesn’t Care about Your Profit: Every customer deserves respect and a consistent experience, whether it’s $20 transaction or a $200,000 one. Profit per interaction shouldn’t determine the level of care.
  2. Know the Lifetime Value of the Customer: The wiper blades may have been a $20 problem, but how the customer was treated for the problem could determine the future sale of a high-end luxury automobile worth thousands of times more. Knowing the average value of a customer will help employees make more informed, customer-focused decisions. Small gestures today can protect long-term loyalty and repeat business.
  3. Consistency Builds Trust: Luxury brands thrive on consistent treatment, but the principle applies to all types of businesses. Today’s customers demand a good customer experience. Train and empower employees to deliver a consistent standard of service, every time, for every customer.

In the end, customers remember the experience, not your profit margins. Get the small things right, and the money follows as you earn their trust, confidence, and loyalty.

Image Credit: Unsplash, Shep Hyken

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FORO: The Fear of Reaching Out

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FORO: The Fear of Reaching Out

GUEST POST from Shep Hyken

We’ve all experienced long hold times, repeating our “story” because we get transferred from one customer service rep to another, etc. It’s an ugly customer service experience that gives many customers FORO, or the Fear of Reaching Out.

FORO is the result of an experience marred with time-wasting friction that makes customers dislike having to reach out to customer support. Our annual customer service and Customer Experience (CX) research (sponsored by RingCentral) finds that 43% of customers would rather clean a toilet than call customer support. The support experience can be so bad that 60% of customers admit to hanging up on a support agent, 34% admit to yelling at an agent, and 21% admit to cussing at an agent. So, it does make sense that customers would have FORO due to poor experiences they have had with some companies and brands (not all) in the past.

Because some companies get it right and others don’t, the inconsistency makes the customer wonder what the next time will be like. Their past frustration, anxiety or memory of a bad experience creates the unwillingness to call.

I had a chance to interview Gaurav Passi on Amazing Business Radio, and he introduced me to the concept of FORO. Passi is the co-founder and CEO of Zingly.AI, a platform that empowers customers to collaborate with a company, either through AI or with direct human-to-human interactions, to have their questions answered and problems resolved. Below are some of Passi’s most intriguing points, followed by my commentary:

  1. The next 15-20 years will be about the end customer experience. Many consulting companies and business experts recognize that customer experience is more important than a company’s product. Most customers can buy the same product—or at least similar products—from many different sources. What differentiates the companies and brands that sell these products is the experience. Passi agrees and adds that the way companies deliver support is changing. The future of CX is a blend of AI, digital and human/live support. That prompted me to ask Passi a question that concerns many people, especially customer support agents, “Do you see AI replacing live agents in that time frame?” He answered, “I don’t see a world where humans are completely taken out.”
  2. Customers don’t want to talk to a human being — until they do. Passi says that customers often don’t want to talk to a human. They just want an answer as quickly and efficiently as possible. If they can’t get it, then they want to talk to a human … as quickly and efficiently as possible. Even with many customers desiring this self-service approach, Passi cautions that companies should not make the mistake of 100% deflection to digital self-service. He asks, “Even if you achieve 100% deflection, what will happen to your customer satisfaction (CSAT) scores?” Passi shared an example of a client who had chosen to deflect 100% of customer support to digital self-service and had an outage. Because of the outage, the employees ended up talking to customers, human-to-human. Amazingly — or not — CSAT went up. Why? Passi says, “Because there was a human touch when needed.”
  3. Customer patience is at an all-time low. This is a primary symptom of FORO. Customers don’t have the time or patience to go online to a company’s website, find the customer support number, wait on hold, get authenticated, etc. They want, as Passi calls it, a “One shot, one kill experience.” Using the company’s self-service options, often fueled by AI, you ask a question, and an answer comes back. It’s as simple as that. The customer appreciates not having to get on the phone, wait on hold, etc., etc.
  4. AI is not the final answer! While AI is revolutionizing customer service and support by enabling businesses to scale their operations efficiently, maintaining the human touch with customers to foster genuine relationships is still important. But the human touch doesn’t have to kick in until it’s needed. And in the perfect world, the platform will recognize customers’ reactions when they aren’t getting the answers they need. Passi is proud of what he refers to as “the most magical component we’ve created in the past three years,” which is a technology that understands when the customer is not getting the right answer and seamlessly passes them to a human agent to take over.

If you’ve been following my work, you know I’m focused on helping my clients create amazing customer experiences. As Passi and I wrapped up our interview, he mentioned that amazing is what Zingly is about. He shared that his mission, like mine, is to help his customers create amaZINGLY great experiences for their customers. With an increasing demand for customers to have more control over how, when and on which devices they communicate with businesses, the combination of AI and human expertise, paired with transparency and collaboration with customers, can create a more personalized, effective and amaZINGLY great customer experience.

Image Credit: Pixabay

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