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Customer relations are key to success Take the time to listen to your customers, and give them your full attention By Gwen Yount Carden Career Planning Index 

Phone Etiquette Tips

Telephone etiquette is integral to good customer service. Here are some tips from Jacqueline Whitmore of The Protocol School of Palm Beach, and Crissy Poorman of the Ritz-Carlton Palm Beach for handling the phone like a pro: 

Answer the phone within two rings; no more than three.

Always ask permission before placing a person on hold or on a speakerphone. 



Address callers by name.



Thank them for calling.

If you need to transfer a caller to another person or department, tell them to whom they are being transferred, that person's direct number in case they are cut off and, if possible, speak first to the person to whom you are transferring so the call doesn't go directly to voice mail. 

If you are out of the office, check and return your messages frequently. 

Keep voice mail messages short. People are busy or might be phoning long distance. 

Don't screen calls. "This shows that every phone call is important and every person is respected," said Poorman. 

You can have the slickest products, the fanciest advertising and the plushest office or storefront in town, but if you don't treat your

customers with respect, your business will stagnate, wither and possibly die. Good customer service is the lifeblood of any thriving business, but too often business owners and employees overlook this simple element that's crucial to success. "We're all in the customer-service business, whether we have direct contact with people on the outside or simply deal with those within the company, such as bosses and co-workers," said Barbara Danielski of Palm Beach Gardens, founder of the customer-service training company Danielski Consulting Group. "When companies go out of their way to provide service to customers, to treat them well and to make them feel appreciated, those customers tell others, they come back and they bring more business to you," said Crissy Poorman, director of public relations for the Ritz-Carlton Palm Beach, part of the award-winning hotel chain renowned for its customer service. Conversely, when a customer is unhappy, they tell more people than they do when they are satisfied, so it behooves businesses to see that every customer is satisfied. In an era when so much is automated, taking time to provide the personal touch can move your company to the head of the class. Danielski likes to use a Disney Institute study that surveyed people who had stopped patronizing a business. A whopping 68 percent did so because of poor customer service or indifference. Only 9 percent switched because of price increases. Because good customer service is easy to provide, it's surprising how many companies undermine their success. Danielski, also an adjunct professor at Palm Beach Community College, designed a 500-hour customer-service program. She uses the following common gaffes from Discovering the Soul of Service by Leonard L. Berry (The Free Press, $26) in her program:

Broken promises "Don't tell customers what you think they want to hear but know you can't do, such as saying your serviceman will arrive at a certain day or time, even though he can't be there," said Danielski. Another broken promise often used, "I'll be with you in a minute," rarely yields good results. "Because 15 minutes later, the customer is still waiting," said Jacqueline Whitmore, founder and director of The Protocol School of Palm Beach. Powerless employees "Employees should have the authority to solve basic complaints without having to send customers through a phone tree, repeating their issue over and over again," said Danielski. Not listening "People want to be heard," said Whitmore. "Don't say anything until they've finished airing their grievance." If you interrupt the customer's explanation, they won't feel understood and will start all over again. "If you think you don't have time to listen, you're wrong," said Danielski. "You don't have time to not listen." Making assumptions "Don't assume you know what the problem is," said Danielski. "Before responding, always say something such as, 'I believe what I hear you saying is ... Am I correct?' Otherwise you might resolve the wrong problem." Defensiveness An angry customer usually isn't angry at you, so don't take it personally. Instead, put yourself in their shoes. "Apologize and take responsibility even though you weren't personally responsible for the problem," said Whitmore. "Say something such as, 'I can understand why you are upset.' Show empathy and offer to do whatever you can to resolve the problem."

Not communicating It's not enough to say, "I'll take care of it." Instead, be specific. Say, "This is what I'm going to do, and this is how long it's going to take." Follow up with the customer and anyone you are turning to for help to make sure the issue is resolved as promised. Unfriendly body language "Fifty-five percent of communication is body language," said Danielski. "Make eye contact. Don't turn your back to a customer, don't cross your arms while you are speaking. Don't roll your eyes. And remember that over the telephone, 82 percent of your communication is tone of voice." Danielski believes that every employer should make good customer service part of employees' job descriptions, so that workers know what's expected of them. "One reason employees deliver poor customer service is that they're never told that it's part of their job," she said. The Ritz-Carlton's Poorman sums up their first-class customer service philosophy in a way any company can use: "Give people what they need. Be nice to them and let them feel appreciated."

2 101 Ways To Boost Customer Satisfaction

The focus of all modern management thinking and strategic business practice has to be the customer. Keep your customers happy and your sales soar. Neglect your customers and your bottom line will suffer accordingly.

This practical book provides you with 101 ways to build and maintain customer satisfaction. It focuses on the internal as well the external business practices which affect your relationship with your customer, showing you how to:

Improve your image

Cultivate your customer relations

Enhance your employee relations, and much more.

101 Ways to Boost Customer Satisfaction teaches you how to build strong, lasting and ultimately profitable relationships.

Contents:

Introduction Cultivate your customer service Be easy to find Dont be closed when you should be open Answer the telephone promptly Handle queues/seating conveniently Dont keep people waiting explain delays Allow customers to do it their way Know your product Never be out of stock Get the order right Stay alert after youve clinched the deal

Make it easy to pay Dont overcharge for silly little extras Deliver on time Offer a guarantee that means something Be fast with refunds Give a reward for dealing with you Quicken your quality Produce a good product Make sure it works first time Always exceed expectations Constantly seek improvement Dont tell yourself theres nothing you can do about it Never accept Its good enough, considering... Remember fundamentals, avoid easy fixes Dont use frills to disguise deficiencies Make sure there are no excuses Respect your own products Worry if your employees wont buy your product Captivate your customer relations Respond to advertising enquiries, quickly Listen to your customers Be helpful Make it easy to complain Respond to complaints Analyse complaints Respect existing customers Make customers your best ambassadors Dont assume niceness is enough Encourage customer loyalty Allow customers to feel cared for Dont take your relationships for granted Be relevant to your customer When you lose a customer, find out why

Bring about your business processes Be strategic Step outside the box Make your objectives easy to achieve Make your objectives hard to achieve Align the objectives of your functions Keep up with the times: Innovate! Study and learn from best practice Youre the only game in town? Dont relax! Monitor your competition Integrate your marketing activities Concentrate on the big picture and worry about detail Concentrate on detail and worry about the big picture Observe the writing on the wall Be part of the solution, not the problem Deal with problems Understand that people, not processes, deliver the service Dont assume that, because its on the computer, it must be right Make the complex simple hell, make the simple simple Know when to manage tight and when to manage loose Have a tight, concise rule book Empower your people not to have to check with the supervisor first Realise some of your cronies can harm you Admit mistakes Dont pass the buck Crisis? What crisis? Be prepared Remember Murphys Law Focus on your own needs, and those of your colleagues Dont just try to do it, do it Check, dont assume, you did it right

Treat your suppliers as business partners Pay your suppliers promptly Crystallise your communications Be accessible Make, listen to and act on suggestions Make the smallest fragment of service count Listen Ask why Dont promise the moon Keep your promises Never lie Congratulate yourself only when youve really earned it Dont run misleading advertising Regard your advertising as more than just a paint job Always think about PR Be clear about directions Explain usage instructions concisely Enhance your employee relations Treat your employees like adults Respect minorities Give your staff the powers of discretion Help your staff to be flexible Train your people properly Celebrate and reward excellence Get your incentives right reward the right things Improve your image Project an appropriate image Act courteously, especially when in corporate livery Behave like grown-ups Be environmentally responsible Be socially responsible Dont offend special interest groups Keep the law Never be fat, dumb and happy never be complacent

Publisher: Kogan Page India ISBN: 8175544155 No. of Pages: 160

http://www.gurusoftware.com/gurunet/busin ess/topics/Delight.htm The most successful businesses have discovered a formula that goes beyond product and service. Their business is providing delight to their customers by understanding their specific personal interests, anticipating their needs, exceeding their expectations, and making every moment and aspect of the relationship a pleasant -- or better yet, an exhilarating -- experience. As one ecstatic customer recently wrote to the president of an audio video retailer in Cleveland, Ohio after coming back for his third major purchase, "It is truly a pleasure to walk into a store where the people know your name, know your style, your tastes and your expectations." When a company communicates an enthusiasm for doing business and a love of service, clients/customers tend to reciprocate the feeling. If your clients/customers are satisfied with the service they receive from your company, that is a good place to start, but it's just the beginning of the path at the foot of the mountain. These days, it takes a lot more than satisfaction to stand out from the pack and keep clients/customers eagerly coming back for more. "We sometimes forget we entertainment," says a retailer

are selling in Amarillo,

Texas. "The emotional end of the business needs lots of attention. We must be exuberant and communicate this enthusiasm to the customer. Many times we tend to get lost in the business aspects and forget why people are coming to us." Another retailer in Raleigh, North Carolina understands the relationship between enjoyment and achievement. Talking to him, you can see that he enjoys what he does. He attributes his success to an incessant focus on the value of customer service. "Customers are our best friends. They are always right. You have to try to exceed their expectations. Its really fun to try." Among other things, he sends fruit baskets to customers who buy big systems. Since he founded his company in 1978, he has never had a down year. Sales were up 25% in 1995 and

Business: Customer Satisfaction by Roy Posner and MSS

Customer Delight To put yourself in touch with the spirit of what the client wants to accomplish is the heart of the value and principle of "customer delight." Customer Delight The most successful businesses have discovered a formula that goes beyond product and service. Their business is providing delight to their customers by understanding their specific personal interests, anticipating their needs, exceeding their expectations, and making every moment and aspect of the relationship a pleasant -- or better yet, an exhilarating -- experience. Business Boom in West and Knowing What Customer Wants Business in the West is booming. One of the reasons is they have changed their opinion about the customer. Originally the idea was the customer should buy what is sold or produced.

Now they find out what the customer wants and produce it. Sales have boomed. (MSS) Your Client's Agenda Deferring your own agenda to the lead of the client's is a form of the spiritual method of "taking the other person's point of view." At the mental level it is recognition of their interests and needs. At the vital level it is an emotional association with their will and intent, and at the physical level it is to act and do what needs to be done. This is in the descending scale of conception, perception, and sensation. Discovering the Client's Needs If you follow to the nth degree what the client requires, and take appropriate action for every need, you will be constantly be making new discoveries, which will give you a new knowledge, widen your horizons, and, as a result, energize you. After all the True and Full energy is beyond your own self. It is made full through the Other, including the others around you that you interact and associate with, as well as the Divine Other above and within which provides ultimate discovery, knowledge, energy, and joy. Developing the subtle sense to perceive everything the client needs is an important consideration. As you live more in the depths, that subtle perception will grown, and you will

pick up on even the minutest hints of client needs, which is very likely to be the opening of their greater needs, and your corresponding great success and joy! Four Levels of Relating to the Customer to Develop Your Market & Products There are four levels by which you can relate to the customer. Each successive view of the customer has more potential than the previous ones to open the market for you. First and most commonly, companies relate to the customer from the point of view of the product. I have a product to sell. Anyone who buys it is my customer. Companies with this view have a very limited idea of who their customers are, what their needs are or how to attract more of them. They rely on the product to do that. 2. Look at the customer as a member of society. Identify the social characteristics of the customer and think of ways to meet the needs of specific social groups. 3. Look at the customer simply as an individual. Recognize the needs and preferences that any individual would have and cater to them. 1.

4. relate to the customer, not merely as an individual who shares much in common with everyone else, but as a unique individual who has unique needs, preferences and identity. Three Levels of Relating to the Market to Develop Your Market & Products The market exists at three different levels. 1. At the first level, the market consists of a finite number of recognized needs, and companies compete to meet those needs. If your company approaches the market from this point of view, its growth is confined to the already established needs of the market. 2. At the second level, the market consists of needs which exist, but are unrecognized by society and companies, and therefore are unmet. Companies grow by recognizing those unfulfilled needs, creating a general awareness of them and then meeting them. What are the unrecognized needs in your industry? What new dimension or incremental improvement can you add to an existing product or service that will meet a latent need of society or your

customers and create a new market that does not now exist? 3. Not every company can create a new product or a new market. But the third level of market is open to all. There is in every industry a gap between what the market actually needs or wants and what companies perceive it wants. That gap represents fertile untapped ground for any company that can become more conscious of the market's real wants. When is the last time you really and systematically asked your customers about their preferences? If it was not today or yesterday, perhaps you should ask again. Put yourself on the other side of the counter and looking at things from the customer's point of view." The effort required is one of careful observation, perception, and thoughtfulness. On "Demanding" Customers When you consider a customer demanding, remember that what is being demanded is likely to be the very services, features, qualities, etc. that satisfy customers that follow.

Untitled The Westerner discovered that pleasing the customer increases business. Though selfish, it is another man’s point of view, a spiritual idea, as the Spirit considers the other man’s profit as one’s own welfare. (MSS)

http://www.ipsosloyalty.com/us/testi monials.cfm Praise for The Customer Delight Principle “For many years now, we at Harrah’s have implemented measures, processes and incentives that are based on the ‘customer delight’ principles described by Keiningham and Vavra. Our employees know that growth and profitability rests with changes in customer behavior, not simply improvements in customer satisfaction. This book does a great job of, first, demonstrating this crucial distinction and, then, providing methods for instituting organizational reforms to take advantage

of the enormous opportunity associated with enhanced customer loyalty.” —Gary W. Loveman, COO, Harrah’s Entertainment, Inc. “Whereas customer satisfaction is a ticket to play, customer delight is a ticket to survive. Through numerous illustrative examples Keiningham and Vavra document this fact plus provide guidance to success. My guess is that The Customer Delight Principle will soon establish itself as a MUST-read for those who want to attract and retain customers effectively.” —Professor Tor W. Andreassen, Norwegian School of Management “A ‘must read’ for every entrepreneur who believes that success depends on satisfying the customer. The Customer Delight Principle shows how out of date customer satisfaction thinking is, and does so with easily understood examples, stories and numbers.” —Senator Feargal Quinn, CEO, Superquinn Stores, Ireland and author of Crowning the Customer: How to Become Customer-Driven “The Customer Delight Principle not only reinforces the need to break the service myth of customer satisfaction but also opens up a new Pandora’s box in the Services Management field for the years to come.” —Professor Javier Reynoso, Services Management Research and Education Group, ITESM, Monterrey, Mexico “Read this book before your competitors do! The Customer Delight Principle provides the framework and valuable insights for strategically delivering delight programs that build customer equity. It is crucial reading for any delight-seeking company interested in developing loyal relationships with high-value customers.”

—Ed Routon, CEO, Alcott Routon, Inc. “Finally someone has made the case to move from satisfaction to delight. Keiningham and Vavra have captured very clearly the two most fundamental requirements for creating delight—a thorough understanding of customers’ expectations and the commitment of business leaders. Companies who fail to make customer delight a part of their strategic business model will quickly be overrun by those who embrace this concept and make it an essential part of their daily lives. That means that not only organizations, but also every department within them must understand the principles of what delights their customers and eliminate anything that causes pain—both internally and externally. I intend to make this book required reading for every leader in our organization.” —Barbara Fitzgerald, Senior Vice President, PETsMART, Inc. “I see many large organizations that go through the motions of customer satisfaction measurement (CSM) without really understanding why they are doing it or what they hope to gain from it. Some even question the value of this essential activity, because they gain so little from it. Keiningham and Vavra neatly expose the problem in this very helpful book that every CSM manager should read. They clearly explain why a focus on merely satisfying customers is indeed unlikely to be a rewarding investment of the organization's resources. By using clearly detailed examples of the struggles of several real firms the authors provide some very clear and practical guidance about how to make CSM pay off: First use it to know what your customers want and what delights them, and then use it to check that your organization is relentlessly working to delight them and to build their loyalty in cost-effective ways.” —Anthony Zahorik, Ph.D., Vice President, ACNielsen Burke Institute “This book provides fact-loaded, real-life case studies that bring the customer delight principle vividly alive with no sugar-

coating. It transcends dry, academic bookstore fare in a way that practitioners and others can embrace and use in their dayto-day jobs. At the same time, it offers quantitative tools that can be readily applied for those so inclined. The book is a virtual road map for companies and managers who seek to develop stronger linkages between customer delight and the bottom line. Outstanding!” —James A. Welch, Principal, Pittiglio Rabin Todd & McGrath “Much has been written about customer satisfaction, a key challenge facing managers in today’s global economy. Keiningham and Vavra’s book, The Customer Delight Principle, is an enlightening work, rich in examples and offers a thorough, step by step, guideline to be implemented in order to achieve the desired profitability associated with delighted customers. Their work certainly falls in the ‘zone of delight’.” —Josué Christiano Gomes da Silva, CEO, Coteminas, São Paulo, Brazil « Learn more about The Customer Delight Principle » Read The Customer Delight Principle Book by Terry G. Vavra

http://greatorpoor.com/customer_d elight.aspx In any organisation, ‘success’ means ‘customer delight’. The ONLY way to long term success is to have delighted customers We are finding we're doing a lot more work in the field of 'customer delight', so we've designed packages to make it easier to deal with, and here they are.

In any organisation, ‘success’ means ‘customer delight’.

The ONLY way to long term success is to have delighted customers ... it really is as simple as that.

There’s a lot of talk about ‘customer service’, and sometimes it all seems like ‘blindingly obvious common sense’! However, ‘common sense’ is often not ‘common practice’. The problem is: it’s clearly a good idea to deliver excellent service to customers… … but how do you create it, and how do you measure it?

How you create it. Remember the story about leading the horse to water? The only way it’ll drink is if it’s thirsty! It’s the same with customer service: people will only deliver excellent service if they want to and are able to.

This ‘desire & ability to deliver’ can only be created when all aspects of an organisation are in alignment around the central goal of delivering excellent service because it’s the right thing to do. The absurd thing is that 99% of people want to give great service: it’s just that failures in different areas of the organisation can often prevent them from doing so! … and when they are able to give it, they don’t know how well they (and their colleagues) are doing! Most organisations have no objective, accurate, clear & compelling measure. Most customer satisfaction surveys are cumbersome and meaningless (and measure the wrong things from the wrong people), so, in effect, become more of a disincentive and a smokescreen than a helpful tool!

How daft is all that? We can help you with training / workshops / coaching and, most importantly MEASURING!

because WHAT GETS MEASURED GETS DONE all at surprisingly reasonable prices.

How you measure it. The key to measuring this is threefold Keep it simple (producing high response rates and helpful feedback). 2. Keep it present (ensuring the information is up to date and relevant) 3. Keep it obsessive (ensuring it produces real change for the better) 1.

The system we use produces: high response rates • enhanced customer loyalty (yes, it really does!) • real staff motivation • hugely valuable information to help you develop and grow •

It is a fantastic predictor of future success and has been proven many times. Best of all, it can be run quickly, simply, & inexpensively!

What this will cost.

Costs vary, of course, depending on the number of customers you want to get feedback from, and the amount of input you want from us. For guidance, a basic package can be as little as £60+VAT per month, or, at the other end of the scale we can do a ‘platinum service’ for just under £500 per month. Alternatively, with our training and guidance (plus, we’d suggest, monitoring to avoid ‘inaccurate’ information), you could run this simply and easily ‘in house’. An initial phonecall / consultation costs nothing An initial audit costs just £70 A full day business analysis costs just £270, so don’t hesitate to ask us for further clarification: we pride ourselves on our transparent pricing policy, our ‘no nonsense’ guarantee, and indeed our own customer feedback! contact us: [email protected] or 07990 550057

The world is now a truly global economy, and those who don’t deliver excellent service as standard will not survive in the

long term. Those that do will prosper and flourish.

http://www.sideroad.com/cs/column50.html

Customer Delight By: Dr. John T. Self "It is not about customer service, it is about customer delight" explained Jan Schroeder, Vice President of Education for the California Culinary Academy. Listening to her speak, her passion for customer service is obvious. To her, customers are not just the paying guests, but they also include the students and faculty at her academy. I was also struck by the passion their students exuded when they discussed their education and future careers. What made this even more impressive was that it wasn't just one or two students; it was all of them. When a company's "internal customers" are positive and have bought into the culture of their company, it may be the best public relations that can be had. It may also be the best indicator that a company cares about its people. Ms. Schroeder is zealous about taking care of the smallest details, including how the phone is answered. This giant, yet oftenoverlooked concept can be either a wonderful public relations tool or the worst public relations nightmare. What makes this especially

interesting is that in most cases this fact is not readily apparent to most busy executives. They aren't even aware that they may be losing customers that have been expensively acquired through advertising and training. She recognized a problem and acted on it. She taped the employees as they answered the phones, then played it back to them. The results were startling. When hearing how they sounded to a customer, the level of customer service increased dramatically. It is amazing what a difference it made by simply having employees listen to themselves. Once they actually heard their voice inflection and sense of friendliness and helpfulness they understood immediately what was truly required of them. To have the goal of 'delighting' customers rather than merely 'servicing' them is a wonderful concept. It made me stop and think how cold and impersonal the word service is when compared to delight. Service is such a cold and impersonal word while delight is warm and personal. It is a concept that struck me as needed in the service industries especially. Our employees and managers come to work everyday, but how many of us really try to rise above servicing our customers. Judging by the turnover in the service industry, the level of complacency in training, and the smugness of companies who still view employees as expendable, the concept of customer delight is a goal that is far out of reach for too many. In aspiring to get to this level of delight, first there must be someone who has the authority to effect changes in the organization. This person must:

be passionate about service • believe in employees as individuals • understand that the work environment is a place of dignity. •

Only when these elements are evident can a company move from servicing its customers to actually delighting them. There are people and companies that are able to implement these fundamental changes and that hard work will pay off in lower staff turnover/higher retention and, inevitably, higher sales--all extremely positive results of a culture change. Don't just take my word for it--ask Ms. Schroeder if you want to see someone who practices what she preaches.

http://www.customerfocusconsult.com/ articles/articles_template.asp? ID=34 Seven Steps to Creating Customer Experiences that Delight By UK based consultant Andy Hanselman Customers are an organisation’s biggest asset. There’s much written and spoken about customer care, customer service, even customer ‘delight’, but what does it all mean? How does it relate to your business, your people, and most importantly, to your customers. Here are a few tips to help you look at your own business, and identify some steps to improve the service experience you create for your customers and delight them.

Step 1 Ask yourself “How easy are we to buy from and deal with?” So many businesses don’t even get the basics right: telephones that aren’t answered properly (some not even answered!), sales people not trained (or even interested!), people and systems that stop customers getting what they want. We call them ‘Sales Prevention Officers’ … they lurk throughout the business … who, what and where are yours? Step 2 Eliminate your Sales Prevention Officers: No, don’t fire your receptionist! Too often they are the very ones dealing with the consequences of your real Sales Prevention Officers. Investigate and find out what’s preventing your customers from getting what they want. Ask your frontline people, “What causes Sales Prevention Officers in our business? Look in the mirror, too … have you ever refused a call with “tell them I’m not in”? Step 3 Get feedback from your customers: Ask them “What lets us down?” “How could we improve?” “What irritates or annoys you about us?” “How can we exceed your expectations?” Email them, call them, visit them. Find out what they really think about you. Step 4 Act on the feedback! (no explanation needed here!) Step 5 Identify ways to ‘delight’ your customers: Not “Have a nice day” or “Missing you already” but surprising customers with the level of service you provide (in a positive way, please!) Customer Delight has a personal touch, it appears spontaneous, and makes customers

feel good. Think about ‘thank you for your order’ notes, ‘Welcome’ signs in reception, send them articles of interest, anticipate their needs and solve their problems. Step 6 Reward customer delight: Encourage your people to ‘go that extra mile’, to generate ‘delight’ ideas and to create ‘raving fans’. What’s the reward in your business for ‘delighting a customer’ … what’s the consequence for not. And finally, Step 7 Ring up your business and ask for yourself!!! This can be a real eye opener. It’s sometimes quite scary!!! In reality it means standing in your own queues, sitting in your own reception, and listening to your own switchboard. Find out what it’s like to be a customer, and identify areas for improvement. The pursuit of customer delight is a constant process … It never ends. After Step 7 go back to Step 1 and start again!

http://ezinearticles.com/?Do-You-Have-aStrategy-to-Delight-Your-Customers? &id=2129049 Andrea Blackwood-Harriott

Most businesses are just not tapping the potential to do more business, more frequently with their existing customers and are leaving money on the table for their competitors. Lacking the internal systems to manage the customer experience, most businesses invest too much in chasing new customers and do too little to delight and retain existing customers. It is well established that Satisfied customers are predisposed to purchase again, purchase more and purchase different products. •

It costs less to motivate a known customer to purchase again than to acquire a new customer. •

Customers are only fickle when a new competitor is paying more attention to them than you are. •

Recipe For Customer Delight Woo the Customer as much before as AFTER the sale. How much do you really know about your customers or clients? Is it possible that some

assumptions you've made about your customers are incorrect? Ask yourself "Are there commonalities that are shared by many of my customers that I am unaware of"? Find creative ways to meet and ASK them Develop a system to 'touch' your customers at least once per month. The most successful companies are touching their customers once a week or more. Continue to Market to Existing Customers Do not make the mistake of assuming that current customers know what you are about? Do not take shortcuts or feel that you are boring customers by constantly promoting to them. If you have quality, service, guarantee price or other advantages point them out. Remind the customer why they came, what they have and what they can still get. Let them know more benefits will come from having MORE of your product or service. Develop a Loyalty Reward Programme Determine who your best customers are. (Recently I asked a client of mine to do this exercise, and I was shocked at the lack of clarity in the determination of "best customer" Her top revenue producing clients were the worst

payers, drove the company's margin down, created the most logistic problems and bought a limited number of items in the company's product range) Here is my rule of thumb. Your best customers contributes 80% of your profit, buys more/large ticket items, buys often, buys on your recommendations, and Pays Well. Create a Loyalty reward programme based around what they value most Some of the factors that drive this group are symbols of exclusivity such as VIP parking, quick personal access to you, regular updates, and private promotions or cross promotion with other VIP groups. Ask! Ask for Advice and Get Creative. Use the Law of Attraction Make your best customers aware that you are in the market looking for others just like them and would appreciate referrals who may want to experience the kind of service they have been receiving from you. At the same time you need to identify the next level of customers say 5-10% who you assess aspire for VIP status. Create a buzz among this group, give incentives such as discounts and volume upgrades for them to cross the hurdle and elevate to your VIP club. You will be amazed at what people will do for recognition or what a well thought out loyalty programme could do for

your business Now You Have Them, Keep Them To who have you assigned the job of Customer Relations and Retention? Have you accepted the notion that your clients are mobile assets? Are you leaving your customers vulnerable to theft by a partner or employee with whom you just parted company? Are you implementing checks and balances that will alert you to customer maltreatment or negligence? Many customers will not take the time to complain they will simply vote with feet? Entrepreneurs and business owners who don't take orchestrate a system for customer relations and retention, place their company's fortune on shifting sand. Regardless of the number of layers of distribution between you and your customer find a mechanism or forum where you can periodically establish some direct link. The owner of a restaurant can do that by coming around and chatting personally with the customers. The chief executive officer of a large company can do it with a hotline telephone number, well designed easy to fill and return comment cards or maybe a newsletter featuring a voice of the customer segment.

Your customers are the most powerful assets in your business, even if you sell the business, they can become a great source for referrals and given the multidimensional nature of most clients they have desires that transcend the ability of any single industry or product to satisfy. A strategy top delight your customers should be an integral part of any business strategy tool kit

http://www.expresspharmaonline.com/2007111 5/pharmalife01.shtml The focus of every organisation has gradually shifted from customer satisfaction to customer delight. Renuka Vembu highlights what organisations are doing to create and maintain a customer-centric culture A healthy organisation, motivated workforce, delighted customers—are all part of a cyclic phenomenon. A dedicated and loyal workforce will reflect, in a positive way,

the company and its value, keeping up the brand name. They will work towards taking the company towards the growth path. Increased brand value translating into augmented revenues and increased share of profits for the company will eventually trickle down to the employees, thereby, enhancing employee benefit schemes. A motivated workforce will feel an additional obligation to serve the customers better. Every organisation has thus realised the growing importance of grooming its employees to make them an impressive force in the eyes of the consumers. Investing resources in well-defined recruitment policies, thorough and intensive training programs, soft-skills encompassing business etiquettes, communication proficiency, etc. are an integral part of any business. All the activities introduced by the company, guided by its philosophy, and ably carried out by its employees expect conversion of those processes and efforts into beaming consumers and more clientele. Every individual associated with the company, should be in a framework to completely understand, visualise and relate to the culture and mission statement of the organisation, and the direction towards which they are headed. This in turn will mean or call for providing customers with quality service. A keen and unperturbed customer focus whilst completing the task at hand will translate into fulfilling the needs, requirements and also

expectations of the existing clients as also adding new ones to the list. In the era of multiple means and unlimited choices, customer focus acts as the key differentiator and gives the competitive edge. Need for customer focus Internal customers who are people working with the organisation have to be served a motivating "An experience for them to replicate organisation and carry it out to the external will succeed only when customers. Customer focus has customer to be started with employee needs are satisfied. service. Dr Kashmira Pagdiwalla, Changing the business focus to a customer Director, HR Operations, Intas centered paradigm has broad-reaching impact Biopharmaceuticals Limited across the (IBPL) echoes the same organisation" thought, "An organisation will Dr Kashmira succeed only when customer Pagdiwalla Director-HR Operations needs are satisfied. Changing Intas the business focus to a Biopharmaceuticals Limited customer-centered paradigm has broad-reaching impact across the organisation. It gives many companies an opportunity to revisit their company as a whole and improve business processes and achieve significant return on investment." She goes on to say that with a proper customer ocused organisation, one can:

Build on what you accomplish each year in increasing your customer assets and verify it with hard numbers Have a more structured work environment that allows for creative thinking • Establish meaningful policies and processes that produce results • Manage people through information instead of going through people to get the information you need •

Company's initiatives All these factors hold the key in an industry like pharmaceuticals where clear communication, appropriate medication and consumer health go hand-inhand. All of these initiatives when amalgamated reflect the company's attitude, seriousness and sincerity in approach - Surina Iyer General Manger- towards customers. Ashok Human Resource Priyadarshi, General Manager, Wanbury HR, Alkem Laboratories mentions, "The major expectation of the pharma market is low price and superior quality. Our medical representatives (MRs) regularly meet the chemists and our direct sales outlets. Also these MRs are updated upon the product knowledge and trained on communication skills to enhance their performance. Some programs are

"Employees are expected to understand the changing needs and expectations of the customers, taking personal responsibility for serving customers, with an ultimate objective of achieving a customer’s delight"

undertaken to train them on selling skills and to create awareness in the market about the newly launched products. Every employee is the face of the organisation to the external customer. On similar grounds, our MRs are our image and we are their backbone." Surina Iyer, General Manger, Human Resource, Wanbury, provides an insight into the company's policies with reference to its customers, "Customer value creation is one of the identified competencies which we refer while hiring, motivating, rewarding and developing our employee. Focussed training on dealing with customers is provided to all front line sales employees at regular levels, with special emphasis on understanding customer needs and expectations, and complying with the same. As part of change acceleration programme, customer focus was identified as one of the key areas, wherein different processes across the business line were mapped and aligned to meet customer demands." Specialised education programmes imparting the nuances and finesse required for medical representatives and others who handle the critical part of transferring knowledge and educating doctors and pharmacists about the medicine, its effects and ill-effects is very critical to this profession. At Wanbury, Core Curriculum (C2) is an induction programme which all their

MRs attend when they join the company. In this programme, apart from training, specific emphasis is provided on customer expectation management, basic selling skill program, handling customer complaints, etc. Apart from C2, they also have advance curriculum, exsellarate, competence ability professionalism (CAP) and leadership training, spearheaded by the Head of Training and passionately driven down for all India field force. Interactive methodologies Presenting the pipeline of consumers with an opportunity to share, and giving them a stage to interact with concerned individuals of the company, triggers off the process of a long-term and healthy companycustomer relationship. Alkem organises dealers' meetings with corporates across zones. They address and discuss issues like better chanellising of drugs and better end customer satisfactions. Felicitating dealers for performance par excellence, yearly get-together with the distributors, inviting doctors to forums, and campaigns for direct interaction with end customers improve relations and help in exchanging of knowledge.

Skills that matter Apart from the job skill-sets, the soft skill parameters like empathy, listening, understanding, caring, patience, honesty, integrity, communication, and the list goes on infinitely, is a part and parcel of any job role in today's given scenario. The list just holds deeper value and larger responsibility in the pharma sector. Iyer says, "At Wanbury, we emphasise on values like respect for people, innovation, sense of urgency, result focus, leadership, team work and customer focus. Every employee is expected to understand the changing needs and expectations of the customers—both internal and external, taking personal responsibility for serving customers with an ultimate objective of achieving customer delight. Integrity, adaptability, trust and empowerment are main founding stones that contribute to architecting relationship with customers." Alkem ingrains another set of characteristics in its employees concentrating on the more humane side like being helpful, patient, and empathetic enough to handle any kind of unforeseen situation. Employees are expected to be logical enough to interpret the roots of customers' grievances as also a willingness to address them with a smile and a balanced mind.

Priyadarshi continues, "Organisations cater to different sets of people with different needs and demands. They market their products based on the demands of the customers to maximise their satisfaction. The first step towards a healthy employee-customer relationship is the employees' understanding of the customer psyche and needs. They should well understand as in why somebody will buy our products. The employees should be well motivated to serve the customers without any kind of force. As soon as an element of force comes into play, the employee's customer service has a negative aspect of their job. Feedback should be expected from customers and accepted positively. The feedback should be worked on for the betterment of the product or services." Pagdiwalla mentions, "IBPL has a tradition of concern for people with a dedication to develop quality biotech-nology products. The company is committed to improve the quality of human life by enabling people to do more, feel better and live longer. The company's triumphs are based on principled and equitable management of its human resources. Talent and creativity of people is the one differentiator that separates the entities that will succeed from the companies that will perish." Attracting, retaining and building talent are management's primary focus at IBPL. Pagdiwalla claims that the entire management team is like a family, coherent and

compact, always looking to support and encourage one another. "We strongly believe that the success of a business depends on 'people embodied' knowledge. This is especially true in the knowledge based industries, like pharmaceuticals and biotech," she adds. Customer relationship is based on experiences. When opportunities prevailing are aplenty and open doors are awaiting people, the motivationsatisfaction-loyalty level is the maxim to root for. The experiences, principles and values, and the care and empathy which one comes across in the work place are transmitted to the outside larger world. The customer holds the key to your value in the company and in fact, the company itself. Understanding Customer Delight and Outrage Autores: Benjamin Schneider, David E. Bowen Localización: Sloan management review, ISSN 0019-848X, Vol. 41, Nº. 1, 1999 , pags. 35-45 • Resumen: • •

o

Evidence indicates that satisfied customers defect at a high rate in many industries. Because satisfaction alone does not translate linearly into outcomes such as loyalty in terms of purchases, businesses must strive for 100 percent, or total, customer satisfaction and even delight to achieve the kind of loyalty they desire. Current studies attribute a higher degree of emotionality to the dissatisfaction end of the satisfaction continuum than in the past. For

example, customers who have experienced service failures feel annoyed or victimized. Although victimization is felt at a deeper emotional level than irritation, both can result in outrage. By focusing on more intense customer emotions, such as outrage and delight, the authors explore the dynamics of customer emotions and their effect on customer behavior and loyalty. Schneider and Bowen base their conceptualization on people's needs rather than the more conventional model that focuses on customer expectations about their interactions with a firm. The authors propose a complementary needs-based model for service businesses that assumes customer delight and outrage originate with the handling of three basic human needs ¿ security, justice, and self-esteem. By recasting a situation as one that has violated any of a customer's fundamental needs, the deeper emotional outcome (e.g., outrage) does not seem incongruous. The authors describe each need and offer specific managerial tactics for avoiding outrage and creating delight. Recent emphasis on relationship marketing ¿ that is, attracting, developing, and retaining customers ¿ is pertinent because building relationships requires that companies view customers as people first and consumers second. Service is an exchange relationship in which customers swap their money and loyalty for what Schneider and Bowen argue is need gratification ¿ a psychological contract with service firms to have their needs gratified. The authors discuss strategies that help firms gratify and,

in some cases, delight customers, while avoiding the perception that they do not respect customer needs. Companies must manage how they show concern for customer needs in all actions, including the activities of the back office (e.g., billing, shipping), not just front-office personnel who directly contact the customer.

A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction Ruth N. Bolton

MARKETING SCIENCE Vol. 17, No. 1, Winter 1998, pp. 45-65 DOI: 10.1287/mksc.17.1.45

The Maryland Business School, University of Maryland, 3467 Van Munching Hall, College Park, Maryland 20742 Many service organizations have embraced relationship marketing with its focus on maximizing customer lifetime value. Recently, there has been considerable controversy about whether there is a link between customer satisfaction and retention. This research question is important to researchers who are attempting to understand how customers' assessments of services influence their subsequent behavior. However, it is equally vital to managers who require a better understanding of the relationship between satisfaction and the duration of the provider-customer relationship to identify specific actions that can increase retention and profitability in the long run. Since there is very little empirical evidence regarding this research question, this study develops and estimates a dynamic model of the duration of provider-customer relationship that focuses on the role of customer satisfaction.

This article models the duration of the customer's relationship with an organization that delivers a continuously provided service, such as utilities, financial services, and telecommunications. In the model, the duration of the providercustomer relationship is postulated to depend on the customer's subjective expected value of the relationship, which he/she updates according to an anchoring and adjustment process. It is hypothesized that cumulative satisfaction serves as an anchor that is updated with new information obtained during service experiences. The model is estimated as a lefttruncated, proportional hazards regression with cross-sectional and time series data describing cellular customers perceptions and behavior over a 22-month period. The results indicate that customer satisfaction ratings elicited prior to any decision to cancel or stay loyal to the provider are positively related to the duration of the relationship. The strength of the relationship between duration times and satisfaction levels depends on the length of customers' prior experience with the organization. Customers who have many months' experience with the organization weigh prior cumulative satisfaction more heavily and new information (relatively) less heavily. The duration of the service providercustomer relationship also depends on whether customers experienced service transactions or failures. The effects of perceived losses arising from transactions or service failures on duration times are directly weighed by prior satisfaction, creating contrast and assimilation effects. How can service organizations develop longer relationships with customers? Since customers weigh prior cumulative satisfaction heavily, organizations should focus on customers in the early stages of the relationship—if customers' experiences are not satisfactory, the relationship is likely to be very short. There is considerable heterogeneity across customers because some customers have a higher utility for the service than others. However, certain types of service encounters are potential relationship "landmines" because customers are highly sensitive to the costs/losses arising from interactions with service organizations and insensitive to the benefits/gains. Thus, incidence and quality of service encounters can be early

indicators of whether an organization's relationship with a customer is flourishing or in jeopardy. Unfortunately, organizations with good prior service levels will suffer more when customers perceive that they have suffered a loss arising from a service encounter—due to the existence of contrast effects. However, experienced customers are less sensitive to such losses because they tend to weigh prior satisfaction levels heavily. By modeling the duration of the provider-customer relationship, it is possible to predict the revenue impact of service improvements in the same manner as other resource allocation decisions. The calculations in this article show that changes in customer satisfaction can have important financial implications for the organization because lifetime revenues from an individual customer depend on the duration of his/her relationship, as well as the dollar amount of his/her purchases across billing cycles. Satisfaction levels explain a substantial portion of explained variance in the durations of service provider-customer relationships across customers, comparable to the effect of price. Consequently, it is a popular misconception that organizations that focus on customer satisfaction are failing to manage customer retention. Rather, this article suggests that service organizations should be proactive and learn from customers before they defect by understanding their current satisfaction levels. Managers and researchers may have underestimated the importance of the link between customer satisfaction and retention because the relationship between satisfaction and duration times is very complex and difficult to detect without advanced statistical techniques 9th Century British Pamphlets freely available to JSTOR participants through June 30, 2009... Learn More + Show full citationThis is the first page of the item you requested. An Experimental Study of Customer Effort, Expectation, and Satisfaction • Richard N. Cardozo •

Journal of Marketing Research, Vol. 2, No. 3 (Aug., 1965), pp. 244-249 (article consists of 6 pages) • Published by: American Marketing Association • Stable URL: http://www.jstor.org/stable/3150182 •

An Experimental Study of Customer Effort, Expectation, and Satisfaction, by Richard N. Cardozo © 1965 American Marketing Association. Abstract Results of a laboratory experiment indicate that customer satisfaction with a product is influenced by the effort expended to acquire the product, and the expectations concerning the product. Specifically, the experiment suggests that satisfaction with the product may be higher when customers expend considerable effort to obtain the product than when they use only modest effort. This finding is opposed to usual notions of marketing efficiency and customer convenience. The research also suggests that customer satisfaction is lower when the product does not come up to expectations than when the product meets expectations

n March 1990, AT&T entered the credit card business under a unique set of circumstances; from its first day in existence, the company’s credit card subsidiary built itself up, based on total quality management principles. While most firms embracing total quality management have had to fit their principles into an already dynamic business environment, AT&T Universal Card Services (UCS) has never existed without them. Thus, UCS’s story may provide a fresh perspective for those interested in quality implementation. Coming into an industry not noted for high levels of customer service, UCS saw that it could distinguish itself by focusing in this area. A formalized programme for collecting a broad array of information from customers helps UCS keep apprised of what customers value in their credit card companies. Processes are in place for applying this information and measuring the company’s performance in key customer-impacting areas. UCS, which won the Malcolm Baldrige national quality award in 1992, is currently the second-largest issuer of bank credit cards in the USA with 15 million accounts. The company credits its use of total quality management for its business success – and is confident the same methods will continue to .serve it well in its increasingly competitive future

December 2008 by Gianna Clark 30 .How W.O.W.? Ask Now

If you are providing your Customers with a W.O.W. experience, you will know it. If you are not, you will know it as well. Defining What’s needed, On time, With value goes beyond having great customer service. It is using customer input to help you design and define products, services and channels to deliver them in a way that creates customer delight. Being right on the heels of the shopping season for many across the globe, now is a perfect time to ask customers about W.O.W. Most have spent the last month either shopping in stores or on-line and many have already experienced the joy of returning or exchanging items. Both of these transactions, either buying or returning are opportunities to W.O.W. your customer. How do you know if you passed the W.O.W. test? Ask them. It is the most direct form of customer feedback that you can get. Customer feedback, of all types, is the backbone of W.O.W. It comes in many forms. Market research is a form of feedback that helps define what customers want. Analyzing buying patterns and market data and developing surveys that ask questions related to your product or service is key. Once a product or service is developed or provided, again asking customers what

they think is important. And, when your customers have a question or problem that needs to be resolved, asking them if you are providing a delightful experience is again an opportunity to learn more. Surveys, whether on the spot, or after a time-lapse can capture valuable insights as to how customers feel about the service or product and are a true gage of W.O.W. Here’s an example of how immediate feedback works. Yesterday I had a lengthy transaction at a bank and next to each teller was a sign that said, "Ring the bell if you got exceptional service." I was in the bank for at least twenty minutes and never heard the bell ring. I was wondering if my teller was going to W.O.W. me and yes she did. Awesome service. I finished my transaction in the back and as I walked out went past her workspace, said thank you and rang the bell. Everyone looked up and across the counter I saw a big smile. It made me feel good - looks like my W.O.W. experience turned into hers. (Double W.O.W) I can’t leave the customer feedback discussion without touching on customer complaints. Customer complaints provide valuable input as well. Reviewing, categorizing and analyzing complaints to identify trends and any recurring issues is a great way to capture customer feedback (even if it is not the preferred method.) All of this analysis begs for application of Six Sigma tools. So you have feedback, analysis and some possible recommendations. What next? Translating this feedback into a business plan is the next step. Without this, all you have is feedback. This is the tough part but operationalizing customer feedback and using it to drive your Business Plan is not an option - it’s a requirement. Linking your business plan to process improvements closes the loop (sounds like Hoshin to me). And after improvements are implemented, it is time to ask the customer for feedback to see if your improvements made a difference. As you can see, the whole process of W.O.W. starts with the customer and ends with the customer. And throughout the journey Six Sigma serves as an integral part of how to make it so. Join me next time as we explore some of these Six Sigma linkages or better yet, join me at iSixSigma Live in January where I’ll be sharing some insights in person on how to Take a Walk on the W.O.W. SideTM Save, Share & Recommend This Blog Digg It

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November 2008 by Gianna Clark 15 Customer W.O.W. - The Basics

The first step in mapping your path to the W.O.W. Side is getting the basics right. Sounds simple but it is not. How many times in the past month have you experienced poor service or poor quality? Maybe it was getting home and finding out that the drive-through restaurant left a sandwich out of your order or maybe you had to stand in line for 15 minutes to get through a checkout line. The fact that basic needs are constantly changing makes this step even more complicated. What was a delighter last week will, over time, work its way to a basic need. For example, years ago having internet service in a hotel was a delighter. Today, if a hotel doesn’t provide free wireless service they are teetering on the edge of creating customer dissatisfaction. Customer basic needs and expectations are changing so fast that in the blink of an eye you can find yourself quickly moving from Customer WOW to Customer OW proving once more that meeting basic needs is an ongoing journey not a one time accomplishment. So where do you start? Get the basics right. Define your core business and products, review metrics that describe your performance level, identify any defects that keep you from getting the basics right and apply continuous improvement methods such as lean, six sigma, kaizen, etc. to eliminate dissatisfiers. You will also need to constantly draw on customer input to gage your success and keep your ’basics’ up-to-date.

Getting the basics right is a prerequisite to being able to "Take a Walk on the W.O.W. Side". Bypass this step and you may find that the old saying "You can’t get there from here" may be old but still stands true. Save, Share & Recommend This Blog Digg It

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August 2008 by Gianna Clark 17 . . . The Rest of the Story Customer Complaints, appropriately captured and analyzed, can provide useful insight about process defects. Although complaints are not the preferred method of obtaining the Voice of the Customer (VOC), you should not miss the opportunity to learn from them. But to do this, proper reporting and segmentation of customer complaints is needed. This requires that good operational definitions be established. Often times, this first step is where we fail to capture the granularity of information needed to provide future meaningful analysis. For example, once a complaint is received and recorded, obtaining more specific information for further analysis will be difficult if not impossible. Categorizing complaints about a product or service as "doesn’t work" or "too hard to use" won’t be much help in identifying the root cause of the problem. Identifying a good list of complaint "cause codes" for your particular business will take some work but will be worth while in providing information that drives a solution that not only fixes this customer’s complaint but can be used to prevent other customers from experiencing the same type of problem. It is all too easy to put a band-aid on the customer’s boo-boo and walk away. After all - this solves the immediate customer’s problem. But without capturing detailed aspects about the customer complaint, even the best six sigma black belt will be hard pressed to help you understand the rest of the story. Save, Share & Recommend This Blog Digg It

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July 2008 by Holly Hawkins 1 Getting a Clue with Queuing Theory I often find real world examples of process "improvements" staring me blatantly in the face. For example, I stumbled upon queuing theory in action at the local movie theatre. Queuing theory is the study of how lines (or queues) are formed and dissipate over time. Examples of queues are everywhere: traffic at an intersection, restaurant lines during the lunch hour rush, dialling into a call center, etc. Queuing theory is a tool in

the Lean Six Sigma toolkit. It aims reducing bottlenecks which contribute to time spent waiting in line (or in some cases, eliminating wait time completely). Anyway, back to my experience at the move theatre…When I purchased tickets, I was asked if I wanted to sit in the front, middle, or back. I, like most of those attending the movie, chose the middle section. To my amazement, the ticket printed out an exact row and seat number (similar to what you would see on an airline ticket).As I took my seat, I saw how the rows in front of me and behind me suddenly filled up. I can see where queuing theory could benefit the theatre from an efficiency and error proofing perspective. The computer knows exactly how many seats have been allocated to what movie and where in the screening room; a process that can assist in reducing the chance people from sneaking in to see an additional movie. In the movie I saw, occupied seating was concentrated to about 20% of the room, reducing clean up time for employees. Although queuing might be efficient, is it always effective? In my case, the answer is no. Sure, I got to sit in the mid section as I requested. The saying “Be careful what you wish for” came to mind as I was surrounded in every imaginable direction by people. Given the option, I would have rather sat closer to (or even further away) from the screen if it meant I wasn’t breathing on top of the other movie goers. Further, if my husband and I had arrived a bit later and unknowingly requested middle seating, it is unlikely we would’ve been able to sit next to each other- a definite detractor of service. There are many applications where queuing has been successful such as automated computer screens which direct you to the next available bank clerk, checkout line, etc., however under these conditions most customers assume there won’t be a significant difference in their experience. But when there are multiple factors critical to quality (or in this case customer satisfaction), foregoing the voice of the customer can actually decrease customer satisfaction. The key here is being efficient and effective. A good Lean Six Sigma project will weigh voice of the customer or Kano analysis alongside forecasted cycle time improvements and determine what the net effect is prior to implementing a solution. If customer dissatisfaction outweighs process improvements, then your customers, if given a choice, will be less likely to purchase your products or services. In my case, I think I’ll be selecting a different theatre next time. Save, Share & Recommend This Blog Digg It

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March 2008 by Gianna Clark 19 The Weakest Link

Last week I spent an evening at the local emergency center with my mom. The experience reminded me of the old saying "You are only as good as your weakest link." And here’s why. . . When I walked into the emergency center I was immediately accosted by a huge poster focused on customer service which promised that we would been seen in thirty minutes or less:) Hmmm I thought, this may be interesting to watch. After a brief check-in we waited about ten minutes before being screened and were immediately shown to a room in the back. (Wow - I thought to myself. I wonder if these folks are doing Six Sigma.) Within the next hour, the doctor stopped by, a knee x-ray was taken and a very nice lady came by to officially "log us in." Things slowed down a bit and we were advised that nothing was broken but that a steroid shot was needed and that it had been ordered from the pharmacy. OK - bring it on. . . OK - bring it on . . . Hello - is anyone out there? Two hours later I stepped up to the front desk to inquire about the prescription. The front desk was very quick to tell me that it was the pharmacy’s fault; "they were the hold up." The pharmacy - in this case also known as the weakest link - had successfully turned this WOW experience into an OW experience. After a total visit time of five hours and ten minutes, we were finally on our way home. The experience reminded me that the customer doesn’t really care whose ’fault’ it is. Suck it up and take responsibility for your process. If you are part of the process then you are part of the process. No matter how good you think your piece of the process performs, the customer feels the whole process and in the end - you are only as good as your weakest link. Although great improvement in parts of the overall process had been made, it still needs more work. My suggestion for immediate action would be to take down the customer service poster flaunting quick and excellent service. You wouldn’t want any of your patients to die laughing on their way out. Save, Share & Recommend This Blog Digg It

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February 2008 by Charles McKinney 17 Banking on Risk Reacting to the last several months of turmoil in the capital markets, I want to discuss an area where Lean Six Sigma professionals who work in banking and financial services should focus their attention, acquire new skills, and start having an

impact – enterprise risk. A couple of years ago, one of my former colleagues investigated the contribution of Lean Six Sigma to shareholder value at a small group of well-known banks. He researched public statements by these companies to quantify their self-attributed savings. He then developed a crude expected shareholder value multiplier based on price-to-earnings ratio. Multiplying selfattributed savings, which he assumed flow to the bottom line, by the shareholder value multiplier led my former colleague to conclude that Lean and Six Sigma created at least $4-6 billion in shareholder value for these banks. Conventional wisdom leads me to believe that recent turmoil in the credit markets wiped out these gains. The stock prices of many investment banks, asset managers, commercial banks, mortgage finance companies, monolines, and other major participants in structured finance are trading new two-year lows. While each firm and industry segment has its own unique issues, weak risk management is a common storyline. Looking ahead to the trends for 2008 and 2009, strengthening risk management practices is an imperative and a mammoth challenge for banking and financial services companies and their executives. The global interconnectedness, complexity and volatility of capital markets necessitate a holistic, innovative approach. Conventional practices do not stand up to the challenges in 2008 and beyond. Exogenous Pressure Curing the current ills will depend on fortifying balance sheets, and regulatory intervention will increase the pressure on business and operating models. Banking and financial services firms can look forward to:

•

Economic uncertainty: Recent economic data and interest rate cuts by the Federal Reserve Bank in the U.S. indicate an economic slowdown has begun. Its severity and duration cannot be predicted, but banks will feel the effects of a lingering mortgage-market crisis, rising consumer credit defaults, and disruptions affecting commercial lending, structured finance products, and securitization. Some forecasters predict future shocks, such as a decline in commodity prices or downturn in commercial lending, that further threaten banks. • Capital boosting and cost cutting: In response to economic pressures, banking and financial services executives will continue to seek capital to fortify their balance sheets, increase their safety and soundness, and weather the economic downturn. Many banks will pursue cost savings as part of restructuring operations, becoming more efficient, or both. Cost cutting may be mild or severe, if a bank is facing adverse circumstances like insolvency. • Increasing regulatory scrutiny: Regulatory are reacting to the turn of events in the capital markets in 2007. Scrutiny of capital adequacy, liquidity, credit risk, and management practices will pick up. Supervisory actions and matters requiring board attention will grow in number. Contingency planning and quality assurance for safety and soundness will receive new attention, as regulators push banks to find and adopt industry best practices that safeguard against future crises. • Questions about information and systems for risk management: Over the last decade, many firms began initiatives to implement systems that address credit, financial, and operational risk, as well as compliance with laws and regulations. Broadly speaking, these systems are designed to ensure compliance failures are prevented or detected and managed. The capability of these systems – looking at risk through an integrative lens – may be called into question. Banks may be required to rethink their information systems strategies and redesign their applications for managing risk. Likewise, information asymmetries in the capital markets may receive new attention, leading firms to question what they thought they know about collateral underlying securities, concentration risk, economic and valuation models, and accounting practices. • Investigations, lawsuits and jawboning in the town square: The effects of mortgage defaults, credit-card delinquencies, public outcries about banking practices, stock-price volatility, and growing losses foretell banks facing a new wave of investigations by state attorneys general, shareholder lawsuits, and pressure from consumer advocates. Stories in the press bear this out. The open question is how loud and deafening the trends will be over the next two years. My own background has convinced me of the need to extend the disciplines of Lean Six Sigma to processes for creating governance structures, compliance monitoring, and managing operational risk. Perhaps banks will benefit from a higher degree of knowledge integration (e.g., transplanting gauge methods to credit risk management). Endogenous Defense Starts with Dialogue and Knowledge In many respects, the current state of banking and financial services is the product of thousands of decisions about risk taking. Clearly, reward seeking won out, and we now face a period of living through the consequences of risks not being properly managed. Lean and Six Sigma are proven tools for optimizing reward by eliminating waste, creating capacity, and reducing

variation. Resilience and reliability are a new frontier for Lean and Six Sigma, and the focus is squarely on transforming how risk is managed. How Lean and Six Sigma contribute to the field of risk management is a story waiting to be told. For starters, I encourage Lean Six Sigma professionals to build the relationships, internal networks, and critical mass necessary to transplant their best practices to the risk management and compliance functions at banks and financial services firms. In conjunction, I recommend seeking new knowledge about relevant aspects of credit, financial and operational risk, as well as regulatory trends that will weigh heavily on operating models and expenses. Lean and Six Sigma is a knowledge-based profession, and its value comes from connecting best practices to problems, so performance can be improved. Clearly, for banks and financial services firms, enterprise risk is a huge problem to be solved in 2008. Save, Share & Recommend This Blog Digg It

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February 2008 by James Considine 4 ?Customer Satisfaction: Is it overrated Think about this: when was the last time you told someone about an experience that met your expectations. Perhaps it was an adequate dinner while on the road, or a satisfactory hotel stay. Now think about the last time your expectations either weren’t met at all, or were wildly exceeded. How many people did you tell then? One, ten, ?twenty

Why is it then that organizations spend time, money and focus on something no one ?apparently cares about: Customer Satisfaction

:Consider this model

Based on this model then, merely satisfying our customers buys us very little; perhaps we can keep them until another firm comes along to delight them. Then we’re left to ?wonder what happened - Weren’t our customers satisfied? Where’s the loyalty

Naturally, this doesn’t always apply. If you’re fortunate enough to be a monopoly, or the government, mere appeasement of the customer may suffice. But for the rest of us, working in highly competitive industries, moving beyond satisfying customers may be .what keeps the company in business

:A few parting lessons from this concept

Customers are not monolithic - what delights one may not matter to another. Finding out is a difficult, but necessary effort. (Your customer often doesn’t even know what it (.would take to delight - a focus group probably didn’t come up with the iPod

Net Promoter Score is a useful measure, but only if the survey can shed light on why the customer would or would not recommend your firm

Exceptional value can mitigate price sensitivity; failing to meet expectations leaves customers feeling cheated and much more price sensitive

If your firm can’t yet delight customers, start by not disappointing them -

So let me ask you, dear readers, how do your firms address Customer Satisfaction especially for your transactional projects? Please post your experiences, suggestions .and/or horror stories in the comments section

.Special thanks to Bill Bellows of UTC Pratt Whitney Rocketdyne for the above model