Page 112 - kf fyi for your improvement license eng 3-4-15

See what the customer needs even before they do. Try to always know and take the viewpoint of your
customer first. You will always win following that rule. Can you sell an experience, not just a product
or service.

11. Stuck in a customer service rut? Create an environment for experimentation and learning. One
principle of these techniques is to drive for continuous improvement. Never be satisfied. Always drive
to improve all work processes so they deliver zero-defect goods and services. Don’t be afraid to try
and fail. Give your team members opportunities to experiment and try new things. Reward creative
thinking. Set up customer service brainstorming sessions. Think outside the box and come up with
new ways to serve your customers. Recognize the most innovative ideas and encourage more. If
things haven’t gone well, get people to think through why. What was the root cause? How could
things have been different? What was the customer expecting that wasn’t delivered? What’s the plan
for next time? How will you continue to monitor and improve the customer experience?

12. Disconnect between employee and customer satisfaction? Construct a service-profit chain.
It’s well known that employee satisfaction is linked to customer loyalty, satisfaction, and profits. The
employees closest to the customer will have the biggest impact on customer service. In a bank, it’s
the tellers. A restaurant, the servers. A tech company, the customer service representatives. Pay
attention to these employees. Support what they do. Help them make their work more efficient.
Provide development opportunities. Show appreciation. Empower your people to serve the
customers. Provide them with the tools and the training they need. Reward exceptional customer
service. A recent study suggests that employee commitment and engagement has a direct impact on
customer satisfaction and business performance. Example? A fast food chain set up a crew system
without a manager. Working in teams proved to be more challenging and motivating. They learned
they could get better results for their customers working in this way. Happier employees—happier
customers.

13. Not focusing on the right customers? Nurture your most profitable customers. Some
customers may be unprofitable because of excess service requirements. You can require them to
order in larger quantities. Forego certain services, or charge for them. Use activity-based accounting.
This method links purchasing data with cost data. It costs between 5 and 20 times as much to get a
new customer than to keep an existing one. Old customers cost less over time and bring more
revenue. How can you go from being a 20% supplier to a 50% one? Sometimes customers are simply
not a good fit for the business. You may need to divest the business. But do it right. A study in the
Harvard Business Review suggests that the best way to manage unprofitable customers is to take
your time. Think about the impact. Look for alternatives to make the relationship more profitable. Take
appropriate action. Divesting customers is sometimes the best move. But, be careful. Think
strategically.

© Korn Ferry 2014-2015. All rights reserved. WWW.KORNFERRY.COM

112