Stratgies for Customer Service

Strategies for Customer Service - Part Two - Spring 1997

PROBLEM: Offering apologies for poor customer service is necessary, but it is not sufficient. Employees often say "We feel your pain" in one way or another. Yet when my associates and I have asked for a make-good (giving customers something tangible to make up for poor service), we're usually met with a blank stare or the admission that "We/I can't do that for you."

I've discovered that the whole notion of make-goods is tricky because most front-line people don't know when it's necessary or what's appropriate. And they often don't have the authority to give one either. So they flounder around instead and feel frustrated and stressed out. This in turn affects their morale and productivity.

SOLUTION: I've found that a better solution is to simply have an unconditional performance guarantee: If the service/product doesn't work to your complete satisfaction, you can get a refund, a replacement, or a credit. Consider L.L. Bean, who will reportedly give a full refund on a damaged sweater 10 years after it was purchased.

The good news is that unconditional performance guarantees are no-brainers for everyone involved. Your reps only have to do whatever the customer asks for - no questions asked - and your customers know they'll get whatever they ask for without any hassles.

But to truly be a no-brainer, your guarantee must be:

Easy to understand: Don't make the guarantee difficult for your reps or customers to interpret. "Absolutely positively overnight" is a good standard in this regard.
Easy to ask for and collect on: Don't make your customers jump through hoops to collect on your guarantee. They shouldn't have to do a lot of paperwork or speak to a number of people.

You should want them to collect so you can demonstrate your great customer service. And when they do, you can also learn from your mistakes. Also, don't worry about cheaters unless that's very common in your industry.

The truth is: it's been found that most people don't cheat on a guarantee.

EXAMPLE: I was brought in to assist a large footwear distributor with their customer service problems. They were dealing with customer complaints on a case-by-case basis. Sometimes their reps would offer a make-good and sometimes they wouldn't (depending on the circumstances). But arguing about the circumstances was stressing the reps out and two people a week were complaining to Human Resources about the process.

I helped them create an unconditional performance guarantee so they didn't have to argue any more with customers about whether a make-good was appropriate or not. They just had to satisfy the customer.

RESULTS: This guarantee worked so well that in a matter of months the number of employees complaining was cut down from two a week to none. And the customers were more satisfied as well.

SUMMARY: Unconditional performance guarantees have many benefits for your company. They will make things much easier on your people. They can provide you with valuable data on what's not working. And they will also create loyal customers and great word of mouth for your organization.

Back to newsletter index

Michael H. Smith, Ph.D.
5801 Leona St., Ste A
Oakland, CA 94605

Tel: 510-530-7900
Fax: 510-530-7922
Email: MHSmith@MichaelHSmithPhD.Com