Corporate Training Magazine

The Keys to Providing Gold Standard Customer Service
Vol 1 Issue 1 - Sept 2005

By Derek Moore

A competitive edge. Everyone talks about it. Every company wants to have it. The difficulty some companies have in achieving it lies in addressing the 'How'. One answer is to win the customer service battle.

"Companies need to recognize that business is about the customer. Without them, there is no business," extolled international service and retention specialist Lisa Ford. "Gold standard customer service will not only provide a competitive edge, it can also greatly increase corporate profitability."

Ford defines gold standard customer service as 'delivering exceptional customer service every time with every customer'. "Customer service is about adding people to the process. To create totally satisfied customers, companies need to recognize that customer appreciation must become more than just a slogan. The challenge is to develop the right attitude about service and translate it into action on a daily basis," she contended.

There is strong evidence to back up Ford's claim that companies need to take a more customer-centric focus. She reported, "Forty percent of customers report that the number one reason they switch to the competition is poor service. Only eight percent switch because of cost."

Further, a common error many companies make is to focus their service efforts solely on attracting new customers, and neglect to look at retaining their existing clients. In his book, The Loyalty Effect, Frederick Beichheld stated, "If you can keep five percent more of your consumers, you can boost profits by 25% to 125%. If you can keep just two percent more of your existing customers, it has the same effect on profits as cutting costs by ten percent."

Ford asserted that for their short- and long-term success, companies should regularly examine their practices and commit to providing the tools to their employees to raise their level of service to "Gold Standard". Ken Strilchuk of MTM Group, a Crestcom International affiliate, examines Ford's five rules of gold standard customer service.

Rule #1: Be Reliable
Consistent quality, service and information give customers an ongoing sense of confidence in the company. From the customer's initial contact and through each subsequent experience with your company, the goal should be to deliver consistent service that customers can count on. To do this, you must ensure each customer representative has the necessary knowledge and provides consistent information.

This approach is known as The Grandmother Rule. Its basic principle is simply to "do what you say you're going to do, do it when you say you're going to do it, and do it right the first time".

Rule #2: Be Responsive
Many companies make the mistake of thinking that responsiveness equates to speed. While customers expect fast service, employees that are too fast often make customers feel like they're being 'processed' rather than 'served'.

Responsiveness involves being respectful to the customer, acknowledging their questions or concerns, and responding quickly to their needs. By balancing speed with attention to detail, the overall service experience is enhanced and customers are left with a positive attitude towards your company.

Rule #3: Make Customers Feel Valued
Everyone likes to feel important. Quality customer service is about making each customer feel like they are the most important person to your company, each and every time you're in contact with them. One way to do this is to look at your business with "five-star hotel glasses".

Ask yourself what things you could change to make the customer's experience with your company memorable and an event they would look forward to in the future. Identify the differences that will make your company stand out from the competition by learning from what other companies are doing.

Rule #4: Be Empathic
Customers want to feel that you really know and understand their needs. Empathy is a powerful bridging skill that can help to get you on the same side as your customer. Step into their shoes by listening-really listening to gain an understanding of their viewpoint.

Empathy can also be effective in diffusing customer complaints. By understanding the customer's concerns and seeing things from their perspective, it removes the combativeness and aids in moving the situation towards an agreeable solution.

Rule #5: Be Competent
One of the most annoying experiences for a customer is to be bounced from one person to another in an attempt to obtain information, make a purchase or find answers to resolve a problem.

Many organizations have adopted the "One-Voice" concept to improve customer satisfaction levels. This approach states that one person and only one person (the first person in contact with the customer) takes responsibility and handles the service experience through to completion. Not only does this eliminate the customer's frustration of being transferred time and again, it also instills the message that your employees are knowledgeable and reinforces the customer's confidence in your company.