Business Orientation vs. Customer Orientation

In a recent meeting of a group of small business bloggers I meet with, two of the participants got into an interesting confrontation. The discussion opened when one business owner was handing out some of his wares to promote his business to the other participants at the meeting. When asked where he came up with some of the items he was passing out, the businessman proudly stated that the move was part of his “business orientation”, aimed at increasing his bottom line.

This assertion led to a spirited rejoinder from another business owner, who proclaimed that she succeeded because of her “customer orientation”. She went on to state that because she was always listening to what her customer base was looking for, her business plan was crafted to meet the customer’s needs, not her business’ needs.

The strong response that his initial assertion provoked caused the first businessman to back down and meekly respond that he, too, also paid attention to what the customer was looking for.

In reflecting on this spirited discussion, I began to wonder if all business decisions were based on what the customer wants/needs rather than on what the business wants/needs. My initial conclusion was there is really no difference.

That view changed when I read a review by Gina Smith of Information Week slamming AT&T’s recent decision to acquire rival T-Mobile (“Meet the Old Ma, Same as the Old Ma – Five Reasons Wireless Subscribers Will Suffer Under AT&T/T-Mobile Deal”). In her article, Ms. Smith detailed how this purchase will lead to less competition, less innovation and higher prices for consumers. When you look closer, Ms. Smith is outlining how a “Business Orientation” drives a business decision regardless of what the customer base wants/needs.

The same could be said for Verizon’s decision to halt all new installations of its heralded FIOS infrastructure to puff up its bottom line because of a possible buyout offer by another telecom firm. Customers (like me) who are eagerly awaiting FIOS’ arrival locally are on indefinite hold because of this “Business Oriented” decision.

Can you see other examples?

 

Steve Oviatt is President of Battlefield Telecom Consulting LLC (www.battlefieldtele.com) and also writes about Telecom Expense Management issues at www.facebook.com/BattlefieldTelecom.

Organized Labor vs. Customer Service (cont.)

So are unions necessary for the provision of good Customer Service? The prevailing view of management is a resounding “NO”.

Whenever possible, as noted before, organizations with call centers will actively try to close centers where the workers are unionized and transfer the work to areas where unions do not exist. The reason behind this (in the view of management) is the lack of attention paid to resolving the customer’s concerns in favor of the worker feeling some independence from any consequences for sub-par behavior on his/her part. In this view, the worker feels s/he can say whatever s/he wants and not worry about being punished.

For the worker’s part, this independence is valuable because it ensures a steady paycheck job security, as well as what could be viewed as protection from mistreatment by an arbitrary management. This security is to be preserved at all costs.

An acquaintance who is an experienced Human Resource professional recently explained to me that she sees unions as no longer necessary for today’s working professionals. She voiced a view shared by many today that if an organization is dealing with a union, it is because the organization DESERVES it for bad behavior. In these instances, the organization has not realized that one of its constituencies is the workers who help provide the organization’s goods and services. Since the workers are not as easily able to take their talents elsewhere, like a consumer, they organize and threaten to shut the organization down in exchange for negotiated benefits and security.

The countering view is that the EXISTENCE of unions is necessary for good Customer Service because the organization realizes that rewarding workers for good performance, written procedures to avoid capricious management behavior and providing improved benefits for good performance results in happier workers and, in turn, improved Customer Service. In addition, management can also more easily correct the worker’s behavior and even terminate the worker more easily than it could if the worker were part of a union. HR organizations then take the place of union shop stewards and act as intermediaries, when necessary, between the worker and management.

This new model was begun by the high tech industry and proved to be so successful it has been widely adopted, thus making it unnecessary for workers to clamor for union representation and protection.

Obviously, this is a controversial topic. What is your experience/view?

 

Steve Oviatt is President of Battlefield Telecom Consulting LLC (www.battlefieldtele.com) and also writes about Telecom Expense Management issues at www.facebook.com/BattlefieldTelecom.

Organized Labor vs. Customer Service

In the Call Center industry, unionized employees are not viewed in a favorable light, as they are seen as resistant to change and immune from corrective action if a problem arises from their activities on the phone. The prevailing view is that these employees are more concerned about THEIR rights rather than helping the caller. As a result, correcting what are seen as harmful behaviors is not worth the necessary bureaucratic and legal steps management must observe. And even after all the steps (or hurdles) have been taken there is little to guarantee that new, desired behaviors will be observed in the long run.

Personally, I have seen organizations actively seek to close centers and move the jobs lost to locations where unions do not exist. Although it is not outwardly acknowledged, this is most likely a factor in the exodus of Call Center jobs overseas. The prevailing wisdom is these non-unionized workers are more attuned to providing better Customer Service and willing to make the necessary changes in behavior to improve their performance.

The corporate world is not alone in this attitude. If one looks at government call centers, one sees, again, a non-unionized workforce with support from governmental employees who enjoy Civil Service protections (which rival union benefits and protections) but may not actually answer the phones. These call centers are all outsourced to the private sector, which guarantees certain levels of customer service.

What are the tradeoffs for unionized and non-unionized organizations? Unionized workers may enjoy better benefits, like medical, dental, pensions and job security than their non-unionized counterparts. Non-unionized workers may enjoy better pay and an increased chance at upward mobility in the organization than their unionized counterparts. The BIG tradeoff for these non-unionized workers is a lack of the job security their unionized and Civil Service counterparts enjoy.

So, are unions necessary for the provision of good Customer Service? The prevailing wisdom is split and I’ll address that next.

 

Steve Oviatt is President of Battlefield Telecom Consulting LLC (www.battlefieldtele.com) and also writes about Telecom Expense Management issues at www.facebook.com/BattlefieldTelecom.

Politics, Unions and Customer Service

Unless you’ve been under a rock the past several weeks in the United States, you have heard of the labor unrest in the state of Wisconsin. In light of a previous blog topic regarding the application of Customer Service in the political world, one could argue that the Governor and his supporters in the State House are living up to their campaign ads and giving the voters what they asked for – namely a balanced budget coupled with a move to keep future costs down.

Is removing the rights of State employees to collective bargaining the best way to do that? While the move is extreme, clearly a case can be logically made both ways for the move the Governor is attempting.

Much of this depends upon your world view of work. In one view, a union is necessary to counter material excesses and abuse. The union protects workers and helps them feel secure both now and in the future. The collective bargaining arising from unionization helps set a pay rate everyone can live with, defines what can and cannot be expected of a worker, shields the worker from arbitrary and capricious actions by the employer and will also provide a financial safety net when the worker departs, whether for another job or through retirement. As you can expect, unions will battle hard to protect the rights and protections won in past collective bargaining contracts.

In Wisconsin, the battle appears to be shaping up over the size of the pensions State employees can expect to receive. The Governor says the State cannot afford the pensions and failure to get the unions to the negotiating table to address the issue led to the Governor’s decision to disband the unions and the resulting storming of the Wisconsin State House by unionized State employees.

And while this confrontation has been raging, school has been cancelled across the state, other services have gone undone because of union backlash to the Governor’s demands.

Who is being forgotten in this confrontation?

One could make the case that the taxpayers, parents and students of Wisconsin have all been forgotten while the Governor and unions try to force each other to back down.

One poll says most people see the abolishing of union rights as extreme, these same people also expect the unions to give to some of the Governor’s demands in order to balance the budget.

Of course, all this raises the issue of whether unionized employees are bad for Customer Service, as a colleague of mine recently opined.

What’s your view?

 

Steve Oviatt is President of Battlefield Telecom Consulting LLC (www.battlefieldtele.com) and also writes about Telecom Expense Management issues at www.facebook.com/BattlefieldTelecom.

Customer Service and Profits

While watching a morning news clip, I was interested in a story on what was termed “Frugal Fatigue”. The story outlined how consumers are SO tired to saving that they are getting ready to explode and begin spending again, whether or not their financial conditions have improved appreciably.

But (Isn’t there ALWAYS a “but”?) the story also pointed out how spending habits have changed with the recent recession and how “Dollar Stores” have been able to profit from the bad economic times and expand.

You read correctly. They are EXPANDING.

Think about the last time you were in a “Dollar Store”. If your experience was like mine, the place was a mess, with cheap items everywhere. While the prices were low, the place looked like a crowded dump. New stores opening nationwide resemble supermarkets, with wide aisles, plenty of lighting and attractively laid out products. The prices are still low but the shopping experience is more inviting.

The result is more traffic, as more consumers come in to browse and buy. And it’s not just those in the lower incomes shopping these stores. The story pointed out that the biggest increase is among those shoppers whose incomes are in excess of $100,000!

Compare this to older, more established competitors like Walmart. Walmart is not losing business. On the contrary, business is still growing for Walmart. When was the last time you visited one? Walmart is one store I can guarantee that if I have a question or a problem, store personnel will make helping me their TOP priority. While other stores say they do the same thing, notice the attitude the people bring with them. At Walmart, the customer will nearly always experience a positive experience. At other stores, how many times is the customer made to feel as if the employee is doing the customer a big favor, reluctantly.

Could this be why Walmart is not afraid of the competition?

Is a Customer with a problem a bother or an opportunity? Do your existing Customers return because you resolved their problem initially? If you were unable to resolve the Customer’s initial problem, did that Customer return to give you another chance because of the effort you put in to find a resolution the first time? Did a first time Customer come in because of the service you gave to someone else?

Can you see your business in any of these examples?

 

Steve Oviatt is President of Battlefield Telecom Consulting LLC (www.battlefieldtele.com) and also writes about Telecom Expense Management issues at www.facebook.com/BattlefieldTelecom.

Politics and Customer Service

The wave of political unrest sweeping through the Middle East and North Africa can be looked at as a failure by various regimes to provide the Customer Service demanded.

Consider politics from the Customer Service angle. Politicians make promises to provide certain services for voters/customers in exchange for their votes/support. If the elected officials deliver on their promises, they stay in office. If the promises are not met, the officials leave office, to be replaced by somebody else.

In democratically governed countries, this occurs at understood intervals, such as scheduled elections or referendums. One does not necessarily need to like the views or philosophy of the elected official for that individual to earn or keep a job. This point was best enunciated years ago by the late Congressman “Tip” O’Neill, who proudly stated that, “all politics is local.” O’Neill was, by all accounts, a fervid liberal who championed all sorts of issues that one would not expect, given that he represented very conservative voters. So why did he stay in office?

O’Neill was a BIG presence in his Congressional District. There was not an individual he represented who was not touched in some way by O’Neill or his staff. If there was a wedding, O’Neill or someone from his office was there to wish the newlyweds and their family well. If somebody died, O’Neill or somebody from his office was there to pay their respects and provide any service the mourners needed.

At election time, these activities paid off, as O’Neill ran virtually unopposed and only left office upon his death.

Compare this example to what is coming from the Middle East. Rulers who were once lauded as saviors did not live up to their initial promises, forgot them or never cared. When people/customers complained, they were either jailed or placated by half measures, like dead end jobs. In Tunisia and Egypt, the frustration of years of benign or outright neglect has led to sudden, spectacular regime changes.

How are neighboring countries responding? Some, like Libya, Syria and Iran, appear to be clamping down on their constituencies/customers. Others, like Jordan and some of the Emirates, are taking pre-emptive measures to come up with solutions everyone can live with.

These are but two examples of how Customer Service can be applied to other venues than business. Can you think of others?

 

Steve Oviatt is President of Battlefield Telecom Consulting LLC (www.battlefieldtele.com) and also writes about Telecom Expense Management issues at www.facebook.com/BattlefieldTelecom.

Profiting from poor Customer Service (cont.)

In my previous posting, I noted how two local wineries, initially noted for the quality of their product, handled the success and fame that came with it. In one case, the son who inherited and took over the winery, did little to keep it running and ran it into the ground. In the other, the owner decided to become choosier about the type of customer he wanted to attract.

What has been the fallout on neighboring, competing wineries?

Generally, business has increased. The typical narrative at these other wineries is one where angry customers come in with the proverbial chip on their shoulders, as though challenging the winery to change their minds about local wines and the treatment they received from the wineries with poor Customer Service. Personnel behind the counter offer a sympathetic ear and then begin pouring their offerings. Customers are urged to relax, bring a picnic and have some fun. The result is invariably increased sales and loyal, repeat customers.

In this case, the successful wineries have profited from the poor Customer Service of the original two wineries.

For the wineries I work with, we will take the time to talk with customers about other, nearby wineries they can visit and what to look and ask for when they visit. This has paid off as customers to the other wineries will stop and comment about how they were sent over by us and how we raved about certain wines and the atmosphere at the new winery. We are beginning to see a reciprocal movement as the other wineries will cross promote us to their customers, creating a whole new atmosphere of cooperation for everyone’s mutual benefit and profit.

In my previous posting, I noted how two local wineries, initially noted for the quality of their product, handled the success and fame that came with it. In one case, the son who inherited and took over the winery, did little to keep it running and ran it into the ground. In the other, the owner decided to become choosier about the type of customer he wanted to attract.

What has been the fallout on neighboring, competing wineries?

Generally, business has increased. The typical narrative at these other wineries is one where angry customers come in with the proverbial chip on their shoulders, as though challenging the winery to change their minds about local wines and the treatment they received from the wineries with poor Customer Service. Personnel behind the counter offer a sympathetic ear and then begin pouring their offerings. Customers are urged to relax, bring a picnic and have some fun. The result is invariably increased sales and loyal, repeat customers.

In this case, the successful wineries have profited from the poor Customer Service of the original two wineries.

For the wineries I work with, we will take the time to talk with customers about other, nearby wineries they can visit and what to look and ask for when they visit. This has paid off as customers to the other wineries will stop and comment about how they were sent over by us and how we raved about certain wines and the atmosphere at the new winery. We are beginning to see a reciprocal movement as the other wineries will cross promote us to their customers, creating a whole new atmosphere of cooperation for everyone’s mutual benefit and profit.

In other instances, when I consult with telecom clients, I will be upfront if I feel I cannot help them. I have been known to tell a client that I can take their money and confirm the actions they already are taking, or let them know they are already taking the correct steps and really don’t need my help. When asked why, I explain that I need to be able to look at myself in the mirror and see the person I want to be.

How do you view your services and offerings in comparison/contrast with your competitors? Do you grab for the money, regardless of the consequences for the customer or do you really try to understand your customer’s needs and wants and tailor your response accordingly?

In my consulting practice, when I consult with telecom clients, I will be upfront if I feel I cannot help them. I have been known to tell a client that I can take their money and confirm the actions they already are taking, or let them know they are already taking the correct steps and really don’t need my help. When asked why, I explain that I need to be able to look at myself in the mirror and see the person I want to be.

How do you view your services and offerings in comparison/contrast with your competitors? Do you grab for the money, regardless of the consequences for the customer or do you really try to understand your customer’s needs and wants and tailor your response accordingly?

Profiting from poor Customer Service

In a couple recent postings, I outlined where VERIZON dropped the ball in profiting from COMCAST’s poor Customer Service. But that does not mean your business cannot profit from a competitor’s poor Customer Service.

As some of you know, I work part time in the Tasting Room of a couple nearby wineries. The goal is to sell wine to people coming in to taste our wares. But that is NOT what I am selling. What I am selling is the EXPERIENCE of visiting a vineyard and attached winery. Being near a large metropolitan area, we encourage visitors to come and spend some time, bring a picnic and relax. For many, it becomes a mini-vacation or respite from their daily lives. The quality of the product is a big draw for many, but repeat business also rests largely on the treatment the customer receives. Did he or she have a good time or were they treated poorly?

Sadly, some of our competitors do not understand that concept. They believe the goal is to sell wine and the higher the sales, the better. They hurry through a tasting, pushing the customer into buying without taking the time to discover the customer’s tastes (which is vital to understanding the world of wines). The response we receive when we take the time to educate and interact with customers has paid off over the long run, as sales are strong and people come back to buy more wine and take some time off.

Two nearby wineries justly earned a reputation over the years for producing high quality wines, becoming magnets from people want to experience quality. How they responded to the influx of new customers was eye-opening.

In one case, the original owners decided to retire and hand the winery over to their sons. One son decided he would prefer to become a physician and left the winery to his brother, who promptly ran the operation into the ground. A winery that was once lauded for its quality wines and wonderful tasting experience rapidly declined. Attention to the product lapsed and customers were told how lucky they were to be able to experience the opportunity of visiting the winery, regardless of the quality of the wine. As more and more people stopped coming, revenues dropped and more things went undone around the winery. Today, it’s closed and run down.

In the other case, the owner decided he did not like the quality of the people coming by the busload to taste his wines. As a result, busses were banned. Customers were allowed in to taste wines and pushed to buy wines. Want to walk out onto the enclosed porch and enjoy the picnic you brought with you? Sorry, that’s not allowed. The customer must get on a list to be allowed on the porch (with its spectacular view). To get on the list, the customer must purchase a certain amount of wine. Luckily, the wines are good, so people still come. But do they enjoy their experience?

How do these examples compare with other firms/organizations you know?

Customer Service gone too far

When you craft a Customer Service policy for your organization, make sure it does not backfire on you. Do you have the right messages? Have you ensured the implementation of the policy meets the standards you are setting? Details count because they can ruin the best policy your organization may conceive.

As this is being written, yet another winter storm is bearing down on the area and local schools are closing in response. In order to ensure that parents are informed in a timely manner, one local school district decided to implement an outbound call list to inform parents and teachers with a recorded message in a timely manner that schools would be closed that day. This was lauded as a great way to reach parents and save them from having to tune into a radio or television station for possible news.

It recently failed.

Badly.

The automated telephone dialer began calling parents to inform them of that day’s school closing, as it was designed to do. The problem was they went out in the wee hours of the morning, waking many out of a sound sleep. There were many complaints, but what made the news was the response of one parent.

This parent, at his own expense, set up his own outbound calling package which rang the homes of local School Board members and top Administrators in the middle of the night. The recorded message thanked the Board members and Administrators for their efforts to inform him that schools would be closed that day. However, the message went on to point out that the original message would have been better received if it had not arrived at 4:30 in the morning. In closing, the parent’s recorded message informed each recipient that his response, also in the wee hours of the morning, should be regarded as an example of why he and others were so upset originally.

As you can imagine, the press had a field day with this story. But it points up a big lesson for everyone. You can have the best Customer Service policy possible, but the delivery and follow through count.

Let’s take another example; a local electric utility was running media advertisements bragging about their ability to keep customers connected during bad weather. Not only did they suffer widespread failures across their grid, the utility’s automated detection and response system crashed in the middle of the snowstorm, leaving not only customers without power but also hurting the ability of their crews in the field to respond in a timely manner. Guess what ads have not been repeated?

Can you think of other examples?

Responding to Poor Customer Service

In a previous blog, I outlined my experiences with COMCAST. Unfortunately, mine was not the only bad experience.

Some of you may have heard the story of the older lady who could not get any response after COMCAST uninstalled her phone line and did not complete the new installation of her replacement service. To get COMCAST’s attention, she walked into the Customer Service Center with a hammer and began breaking up computers, monitors and anything else she could reach. Naturally, she was arrested and prosecuted for her actions.

COMCAST’s response:

•    A couple executives lost their jobs over the bad publicity;

•    The Customer Service Center is now located across from local Police Benevolent Association office.

•    The people within COMCAST refer to the, “poor, deluded actions” of a woman who was obviously not in her right mind.

•    There is STILL a lot of dissatisfaction, locally, with COMCAST’s service.

At this point, you are probably thinking that COMCAST’s competitors are ready to take advantage of COMCAST’s misfortune. You would be wrong.

VERIZON, the largest competitor, is seen as arrogant and difficult to work with. An effort to expand FIOS coverage has stalled while VERIZON fights off a takeover bid by another regional company.

Nobody wins, from a Customer Service viewpoint.

Compare that to SouthWest Airlines, which taps into the current dissatisfaction by flyers over excess fees by competitors. Their “Bags Fly Free” campaign, as well as the follow on mock court cases where flyers present their complaints over “unreasonable” airline fees levied by a disinterested airline executive are paying dividends.

There are other cases where businesses can take advantage of a rival’s poor Customer Service, which will be covered in future posts.

Can you thinks of other instances where one business capitalizes on a rival’s poor service?