Dennis Snow Blog

For many organizations, their company vehicles (delivery trucks, service vans, etc.) are seen by more people than any other type of advertising they do. As those vehicles drive through neighborhoods, cruise the highways, or wait at stoplights, they are mobile billboards for the organization. The question for the company to ask themselves is, “Do our vehicles reflect our brand in the way we want it reflected?”

I recently saw the pictured Truly Nolen Pest Control stretch limo driving through a neighborhood, along with three of their traditional “bugs.” Talk about capturing attention. I even followed the limo until I got them to stop for a photo! The driver told be he gets stopped all the time for photos, and sometimes people even ask if they can rent the limo for a prom or wedding (which they don’t do).

I’ve also seen company vehicles like the other one pictured, which I cannot imagine reflects the brand image the company desires. But desire and execution are two different things. When that vehicle shows up at a customer’s home or business, an impression is instantly made regardless of the company’s desires.

If you have vehicles in the field, what brand message are they communicating to your current and potential customers? Just take a moment to think about how many people will see your company’s vehicles TODAY.

Tags: Commentary, Tips for Better Customer Service by Dennis Snow
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I’ve recently put together a white paper titled, “The Top Five Customer Service Mistakes Companies Make, and How Your Organization Can Avoid Them.” The mistakes addressed in the white paper come from working with and observing hundreds of organizations, large and small, and noting the issues that seem to come up again and again.

My purpose in writing the paper, however, was not to simply point out the mistakes. For each of the five issues addressed, I’ve offered approaches for avoiding the mistake or for making course corrections if things have gotten off track.

The five customers service mistakes addressed in the white paper are:

1. Not clearly defining what the customer experience is supposed to be.
2. Designing processes for the company’s convenience, not the customer’s.
3. Hiring the wrong people.
4. Not making customer service a significant part of new-hire orientation as well as ongoing training.
5. Tolerating poor service performance from employees at any level within the organization.

To download the white paper, simply click on this link – Top Five Customer Service Mistakes – fill in the requested information, and click the download button. Be sure and let me know if you have any problems with the download.

Please forward this post to anyone you feel might benefit from the information provided in the white paper. And I would welcome any feedback, pro or con, you might have based on what you read.

Most of all, I hope the information helps you and your organization in delivering the best possible customer service

Tags: Commentary, Service Analysis, Tips for Better Customer Service by Dennis Snow
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The number of ways consumers can make a purchase today is amazing. The option I find most interesting are the Best Buy vending machines found in many airports since their introduction in 2008. Being comfortable spending a couple of dollars for a drink from a vending machine is one thing, but the fact that consumers are now willing to spend several hundred dollars purchasing electronic equipment from a vending machine is a true paradigm shift.

Consumers are placing great value on convenience and have demonstrated a willingness to spend large sums of money as long as sellers make the process easy. And it doesn’t get much easier than a vending machine.

Another example, Redbox, is shaking up the video rental industry by offering video rentals via vending machines at the low price of one dollar for a one-day rental. I recently spoke at a company meeting for Family Video, one of the largest video “rentailers” in the industry.  One of their executives made a profound statement about why they place such a strong emphasis on exemplary customer service in their stores. He said, “Customers are choosing NO service over POOR service. They’d rather simply put money into a machine than having to deal with employees who either aren’t knowledgeable or don’t care.” Family Video has been successful in differentiating themselves because of their service (record profits and continued expansion), but we all know companies whose service is so bad we’d just as soon not have to talk with anyone who works there.

The vending machine phenomenon is a symptom of the much larger issue of how businesses are commoditizing themselves more and more each day. A machine can take money and dispense a product quite efficiently, and at a much lower cost than a bricks and mortar location staffed by employees.

What machines can’t do is make  customers feel welcome, valued, and unique. A company’s employees are the only ones who can do those things. Employees are the only ones who can provide a truly personalized experience. But if a company’s employees and service aren’t adding value to the customer experience then why wouldn’t customers prefer to just deal with a machine?

I do believe that having a variety of purchasing channels is a smart approach to business. Letting people buy things in the way they like to buy them is a good thing. However, when customers intentionally avoid dealing with a company’s employees because the experience is usually poor, automating the purchasing process moves the company and its products one step closer to commoditization.

I think Best Buy’s vending machines are cool, although I admit I haven’t purchased anything from one – yet. The point, however, is the fact that they even exist. That fact should make any employee in any organization look over his or her shoulder to see if a machine is able to perform the same job function with no loss of value. And with the advances in technology today, value can’t be based on completing a transaction efficiently; machines can do that. Value must be based on creating an experience that makes the customer feel valued.

Tags: Commentary by Dennis Snow
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I hit the “Publish” button too soon on yesterday’s post, Toyota Recall – The Brand Challenge. Today’s news reports that Toyota executives admit they knew about the gas-pedal problem for over a year before taking action. In fact, evidence about unexpected acceleration has been mounting for six years. The firestorm has just begun.

Toyota completely blew Step 1 of how to handle company screw ups:

1.     Admit to the mistake quickly

2.     Accept responsibility

3.     Apologize

4.     Say what you’re going to do to fix the problem

5.     Explain what you’ll do so the problem doesn’t happen again

(For details of each step, link to Toyota Recall – The Brand Challenge)

While Steps 2-5 are in motion, it appears Toyota failed miserably at Step 1: admitting to the mistake quickly. So the perception will be that they took action only because they got caught. It would be one thing if the company didn’t know about the problem until the National Highway Traffic Safety Administration notified them, and they immediately took action. But that’s not what happened. They knew.

Toyota’s credibility is now shot – certainly in the short-run and likely in the long-run. In fact, the company’s recall of 437,000 hybrids because of problematic brake systems, announced although the recalled cars “meet safety standards,” is being met with skepticism in light of the sticky gas-pedal debacle. Customers are wondering if the recall came quickly only because of increased scrutiny. What could’ve been a feather in Toyota’s cap for quickly admitting the problem is now another dagger in their reputation for quality. Projected hard costs to Toyota for the recall repairs is projected to be in the $billions. The cost to the brand is unknown, but will likely dwarf the cost of repairs.

I’ve said many times that a company’s brand is fragile, built over years and even decades. Trust is the foundation of successful brands. When trust is knowingly violated, the brand (so carefully built) is compromised. Winning back trust is a long, long road.

Tags: Commentary, Service Analysis by Dennis Snow
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The Toyota recall has been dominating the business news lately. Every day it seems a new piece of information regarding the “sticky gas-pedal” issue comes out – some of it indicating that Toyota is handling the situation quickly and effectively, and other information indicating that Toyota has known about the problem for a long time and took action only after being forced to. I’m sure that new information will continue to come out, and it remains to be seen how all of this will affect Toyota’s reputation and future.

While no one knows at this point how the Toyota story will play out, I do know this: an organization’s brand is fragile. Brand is all about what customers think about a company and say about a company. For years customers have connected Toyota with quality, and that image brought them to the top of the automotive industry. Now customers are wondering if they’ve been wrong all along. Has it all been smoke and mirrors? I don’t think so, but a seed of doubt has certainly been planted. And if it turns out that Toyota knew about the problem and took no action until forced to, regaining trust will take years (if it can be regained at all).

Two years ago I posted an article, “What to do When Your Company Screws Up.” Based on what’s happening with Toyota, I think it’s worth running the article again, with a few minor tweaks. While you may not often run into the same challenge Toyota has – at least I hope not – every organization, department, and employee screws up at some point. How you handle the screw up will determine the level of trust you lose, retain, or gain. The article below highlights five steps for managing through potentially debilitating screw ups.

What to do When Your Company Screws Up

The public is never at a loss for examples of high-profile com pany screw ups. Some companies handle mistakes very well. The Tylenol tampering scare in the early 1980s was handled immediately by Johnson and Johnson and to this day the company is recognized for its excellent response. Others companies have created huge problems due to poor handling. Firestone Tires and Ford, for example, handled their defective tire situation by pointing fingers at each other and both companies got fried by the press.

So, what do you do when you make a big or even a small mistake? No matter the size of the problem, there are steps you can follow. The complexity of each step will depend on just how big the mistake it is; but the steps are the same.

1.     Admit to the mistake quickly – Trying to cover up a mistake will come back to bite you. Someone is going to find out and it’s best to assume they will find out sooner rather than later. When we come forward ourselves to admit a mistake, customers are more forgiving. It appears that Toyota may be particularly vulnerable on this point.

2.     Accept responsibility – In the case of the Firestone/Ford tire debacle, neither Firestone nor Ford accepted responsibility for the problem, and they paid a stiff price for it. Accepting responsibility may seem dangerous in the short run (lawsuits, etc.) but the organization comes out stronger because of the willingness to own up to the problem. In fact, costly lawsuits can be even more likely when the company takes a belligerent stance.

3.     Apologize – We all appreciate a sincere apology. Saying you’re sorry that the situation occurred can take the sting out the mistake. I think that Toyota has effectively apologized for the problem, although some disagree. The argument, however, that the company’s president, Akio Toyoda, didn’t bow low or long enough when apologizing is just looking for something to complain about in my opinion. But, some people do feel that way, and if some feel the apology is insincere it will affect their perception of the company.

4.     Say what you’re going to do to fix the problem – If the wrong meal was delivered, say how you’re going to make it up to the customer. If the phone bill is wrong, say how you’ll handle it. Clearly communicate that you are taking ownership of the issue. If the tires are defective, tell us how you’re going take care of the situation and don’t waste time pointing fingers. I think Toyota has clearly communicated what they are doing and how customers can go about getting the gas-pedal problem fixed.

5.     Explain what you’ll do so the problem doesn’t happen again – This step may not be necessary for some errors – you don’t really need to explain to the customer how you’ll make sure to deliver the right meal in the future. Bigger issues, like defective tires or sticky gas-pedals, seriously erode customer trust. In that case, customers want to know that you are putting in processes to ensure the situation doesn’t happen again.

If more companies and employees would follow these steps, customers and companies would be better off. Everyone screws up and most of us can accept that as long as the organization handles the screw up well. Most of us are willing to give a second chance; maybe even a third. But if the situation is handled poorly, it may be one strike and you’re out.

We’ll see what happens with Toyota. I’d love to hear what you think about how they’re handling the situation.

Tags: Commentary, Service Analysis by Dennis Snow
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I recently had the opportunity to work with Family Video, the largest privately owned movie and game “rentailer” in the United States, and third largest overall, with 612 stores. In an industry struggling to deal with significant changes, such as new rental options offered by Netflix and Redbox, Family Video is the only DVD/game rental operation showing positive growth. Expanding continually, they again achieved record profits last year.

Why is Family Video doing so well as others in the industry struggle? First, they are constantly looking for ways to offer increased value to their customers. Free children’s movies and innovative new release promotions draw current and new customers to the store. I believe, however, their biggest advantage is the way they’ve crafted the customer experience. Each element of the experience has been studied and designed to maximize customer satisfaction.

One of my favorite examples is the Family Video policy to “diffuse first, educate second.” This means that whenever a customer problem occurs, such as a disputed late fee for a DVD, employees are expected to first make the customer happy (diffuse the situation), then explain the policy (educate).

For example, sometimes new members are confused about late fees for DVDs and games. If a customer complains, employees are empowered to waive the late fee, which they immediately let the customer know. After diffusing the situation, the employee then explains the policy. Now they have a happy customer who understands the policy. (Their computer system can indicate if someone abuses the system).

The approach may appear subtle, but it is profound. Think about it; usually when customers complain about a policy or perceived injustice from an organization, the first thing that happens is an employee explains the company policy. Internally the customer gets tense, builds their argument, and waits to present their case. When the employee then says something like, “I’ll do it for you this time,” the customer feels as though they’ve been chastised (like a child), and that they should be grateful to the company for agreeing to wave their policy. (Isn’t it amazing how many companies act as thought the customer should be grateful for the privilege of spending money with the company?)

The Family Video approach turns the situation around. The tension is immediately diffused because the employee first takes care of the problem. Now when the policy is explained, customers listen because they’re not crafting their argument. Again, subtle but profound.

The impressive thing about Family Video is that approaches like “diffuse first, educate second” are built into the organization’s culture (I’ve provide just one example). These touches are not just desired of employees, they’re expected. Therefore Family Video is relentless in training and reinforcing their special touches, and they’re fanatical about hiring employees who embrace such a customer-centric approach.

What’s the result of their efforts? As mentioned earlier – expansion as well as record profits in a “declining industry.” Not a bad return on their investment in the customer experience.

The lesson here for me is about bridging the gap between the science and the art of customer service. The science of customer service tells us that service recovery (in this example) is important for creating strong customer relationships. The art, however, digs deep into the how of what we do. The art asks, “how can we create the strongest emotional connection with what we do?” World-class service organizations don’t just teach the science of service, they help employees perfect the art of customer service.

Organization’s often make the mistake of looking for the holy grail customer service practice that will rocket them past competitors. It just doesn’t’ work that way. Great customer service isn’t the result of one big thing; it’s the result of many little things done extremely well.

Suggestion: Take a look at your organization’s approach to service recovery. See how you can apply “diffuse first, educate second” to your approach.

Suggestion: Look at one of your customer service practices and brainstorm the art that can take the science of the practice to a new level.

Tags: Commentary, Service Analysis, Tips for Better Customer Service by Dennis Snow
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My post about my recent experiences with Southwest Airlines, The Curse of Arrogance, seems to have struck a nerve with some folks, especially Southwest Airlines flight attendants. Another site picked up the thread and included several comments from flight attendants who placed the blame on obnoxious or abusive passengers. I agree; no employee of any organization should put up with abuse. But the situations I observed involved no abusive passengers. As I wrote in the original post, I’ve recently started to notice more and more Southwest flight attendants being standoffish, mechanical, and impatient. In other words, more like flight attendants on other airlines.

Keep in mind that I’m not talking about rampant poor service at Southwest – they’re still the best by far. There have simply been enough incidents of mediocre service that caused me to notice; that’s all. On another airline I wouldn’t have even thought twice about it since mediocre (or poor) service on other airlines has become the norm. But Southwest is special – and I hope they always will be. And I would be remiss if I didn’t mention that today’s Wall Street Journal shared Department of Transportation data that ranked Southwest highest in on-time arrivals and fewest customer complaints (An Airline Report Card).

But here is something that truly impressed me. I received a thoughtful comment from the Vice President of Inflight Services for Southwest (see the comment from Mike Hafner below). Just the fact that someone in that position, who I’m sure has plenty on his plate, is concerned enough to comment on one blog post, well that speaks volumes. He’s rightly supportive of his team, but also acknowledges that “there is not much room for having a bad day.” One of Walt Disney’s greatest concerns for the Disney corporation was that they would rest on their laurels. He said, “In this volatile business of ours, we can ill afford to rest on our laurels, even to pause in retrospect. Time and conditions change so rapidly that we must keep our focus constantly on the future.” He always cautioned that no matter how strong our reputation is, “the show goes on tomorrow.” Mike, I appreciate you taking the time to write, and I also appreciate the pride you obviously have in your team.

Tags: Commentary, Leadership, Service Analysis by Dennis Snow
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I’m ashamed it has taken me so long to recommend one of my all-time favorite books, The War of Art: Break Through the Blocks and Win Your Inner Creative Battles, by Steven Pressfield.

The title is clearly a play on The Art of War, by Sun Tzu, and it is a highly appropriate title. The “enemy,” in this case, is RESISTANCE. That is, anything that keeps us from doing our work. While Pressfield’s chosen work is writing, the principles he outlines apply just as well to anything from running a marathon, starting a business, starting a diet, or anything else that requires attention and commitment. In my world, his principles apply to any organization wishing to improve their customer service.

Here’s the key line at the beginning of the book: “Most of us have two lives. The life we live, and the unlived life within us. Between the two stands Resistance.” That line can apply to any endeavor we want to do (or even were meant to do) and what actually gets done. The gap between the two reflects the resistance succumbed to when faced with actually doing the work.

Here’s another quote that got my juices going: “Never forget: This very moment, we can change our lives. There never was a moment, and never will be, when we are without the power to alter our destiny. This second, we can turn the tables on Resistance. This second, we can sit down and do our work.” (Italics are mine).

Resistance is one of the main reasons companies abandon one customer service initiative after another. When the planning is done, when the meetings are over, we have to sit down and do our work to actually implement the plan. Like the writer staring at the blank page, we become easily distracted by other “urgent” matters and never get around to doing the thing that really matters. Changing an organization takes commitment and a willingness to battle resistance on many fronts – from ourselves, our employees, our bosses, and even from our customers.

For every excuse about why an organization can’t implement this or that strategy, there’s another company who “slayed the resistance dragon” and got the work done and is better for it.

Please, please, do yourself a favor and get the book. After you’ve read it, which I’ll bet you’ll read in one sitting, send me a note with your thoughts. I’d love to hear what The War of Art inspired within you. One of my hopes is, of course, that it inspires you to beat resistance in applying the customer service principles in the new edition of my book, Unleashing Excellence: The Complete Guide to Ultimate Customer Service. Shameless plug I know, but Unleashing Excellence really does provide you with the tools to break through the resistance you’ll face in improving your organization’s customer service.

Tags: Commentary, Recommended Resources, When Bad Service Happens To Good People by Dennis Snow
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Southwest Airlines has been my favorite airline for a long time – I’ve written about them often in this blog and talk about them often in my speeches. I’m a Southwest fan not only because of positive experiences, but also because their success and almost cult-like following has been a great case study as a speaker and consultant.

But I’ve noticed a disturbing trend over the last several flights I’ve had with them. It seems that more and more of their employees have adopted what I would call an “attitude of arrogance.” Since most interactions are with flight attendants, this trend has been most noticeable with them. Whereas in the past just about every flight attendant was personable, funny, and helpful, I’m seeing more flight attendants being standoffish, mechanical, and (even worse) impatient with passengers who might be struggling with overhead bag space or trying to find seats for the whole family.

On a Southwest flight last week, in fact, I watched a flight attendant work herself into a huff as a mom was making sure her children all had seats before she sat down. Yes, the mom was slowing down the boarding process, but the flight attendant should’ve helped out rather than embarrassing the mom in front of a planeload full of passengers. By helping, the flight attendant would’ve sped up the process and saved the mom’s dignity and peace of mind.

Southwest has never been a perfect airline; I’ve seen a few less-than-stellar Southwest employees before. But those instances were rare. But lately I’ve noticed “unSouthwest-like” behaviors becoming more common with more employees. I don’t know about you, but I feel let down when a trusted organization violates a trust that has been built up over many years. It almost feels like a close friend violating a trust. And once an organization begins to lose the trust of their loyal customers, lost loyalty isn’t far behind.

I’m hoping that Southwest Airlines hasn’t gotten too big for its britches. But the attitude of some of their employees is one of resting on their reputation. It’s as though they’re saying to passengers, “We’re doing you a favor by allowing you to fly an airline with a reputation as legendary as ours.” Well, they should study the fates of other once successful companies that started taking their success for granted such as General Motors, Circuit City, Woolworth’s, Eastern Airlines, Washington Mutual, Bennigan’s; and the list goes on.

The lesson here is that no matter how stellar your organization’s reputation is, that reputation is very fragile. Customers might be willing to forgive the occasional blip in service, but they won’t forgive arrogance. They have too many choices, and every one of your competitors would be giddy to get your customers’ business. Each of your employees must be hungry to build solid customer relationships, and the only way to do that is to treat customers with the care and respect that demonstrates that you value their business and are honored that customers have chosen to do business with you.

Do your customers feel you VALUE their business and that you are HONORED they’ve chosen to do business with you?

Is there even a hint of arrogance creeping into your performance?

Tags: Commentary, Service Analysis by Dennis Snow
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A key customer service principle is to “deliver on the promise of the brand.” Every organization owns a particular brand image in the minds of customers, and anything out of alignment with the brand creates a disconnect and a disappointment for the customer.

Imagine, for example checking into a Ritz Carlton hotel only be treated rudely or with an attitude of indifference. The contrast between the brand image and the actual experience would be jarring and memorable. But when the experience and an organization’s brand image are in alignment, the result is confidence, trust, and loyalty.

Brand Image + Aligned Experience = Confidence, Trust, Loyalty

Two recent experiences reinforced this formula for me. First was the purchase of Paul McCartney’s “Good Evening New York City” 2CD + DVD combo, recorded at the newly constructed Citi Field (on the former site of Shea Stadium). The concert was kind of a tribute to the concert The Beatles played at Shea 44 years earlier. As a fan of anything remotely connected with The Beatles, I immediately purchased the set when I saw it for sale at the Starbucks checkout counter.

My only concern was wondering how McCartney, at 67 years of age, could pull off the quality of voice and musicianship of the music produced when he was in his twenties. Well, what a thrill to listen and watch as he performed Beatles, Wings, and solo classics nearly flawlessly, with the same energy as he did decades ago. Talk about delivering on the promise of the brand. If you’re a fan, buy the recording – you won’t be sorry.

The second experience took place last evening when my wife and I, along with our sons and their girlfriends, attended an Orlando performance of the Broadway musical, Rent. Many years ago, I saw the play on a rainy day in London and, having no idea what to expect, was completely blown away by the production. I also was delighted by the 2005 movie version of Rent, and have listened to the soundtrack many times.

So, I was prepared for an evening of a familiar show, hoping I wouldn’t be disappointed because of that familiarity. Just like McCartney, the cast (including the two original lead actors) performed as though it was opening night for the most important audience in the world. The show was incredible and stirred the same excitement I experienced when I first saw it in 1998.

So, what does any of this have to do with customer service? Well, imagine how many times Paul McCartney has sung the same songs, and how many times the cast of Rent has performed the same play. And yet each time they do it, the performance feels fresh and vital. The performers clearly don’t want to disappoint so they give it their all.

A business should operate the same way. Every employee of every organization should understand that:

• An organization’s brand is fragile.
• An organization’s brand image is on the line with every interaction.
• Yesterday’s performance no longer counts. Today’s performance drives future loyalty.
• Disappointment results from a disconnect between an organization’s brand image and the actual customer experience.

We can all take a lesson from enduring performers who consistently deliver excellence. These performers recognize that while they may have sung the same songs or delivered the same lines thousands of times, RIGHT NOW is the only time that matters for this customer.

Is your performance timeless?

P.S. If you’re serious about improving your organization’s customer service, be sure to check out the just released second edition of my book, Unleashing Excellence: The Complete Guide to Ultimate Customer Service.

Tags: Commentary, Tips for Better Customer Service, Unleashing Excellence by Dennis Snow
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