A story of service EDAM Summer Conference. What is customer loyalty? What if every employee in your city treated customers like this?
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1 2009 EDAM Summer Conference A story of service Minneapolis Library How to increase customer loyalty in your community Willie the guard and his customer 1 2 What if every employee in the library treated customers like this? What if every employee in your city treated customers like this? How would that affect the library? How might that affect your city? 3 4 Should cities care about customer loyalty? What is customer loyalty? Why or why not? Customers stay with your organization Customers spend more of their budget with your organization Customers say positive things about your organization 5 6 1
2 Who are your customers? What happens when your customers expectations are met or exceeded? Residents Residents stay Businesses Visitors? Shoppers? Businesses stay Visitors return? Shoppers return? Students? Others? Tax revenue increases? 7 8 Statistics about customer loyalty 68% of customers who leave do so because of how they are treated. 5% increase in loyalty => 25-95% increase in profits (Bain & Co.) 1% increase in loyalty => 10% reduction in operating costs (Brookeside Group) New customers cost 80-90% more than keeping existing customers (Bain & Co.) When customers get what they want they will be more loyal. And that s good for all of us! 9 10 On a sheet of paper What do customers want? Make a list of at least 10 things you want when you are the customer. 1.Listen to me 2. Know more than I do (about your product or service) 3. Be easy to work with 4. Give me what I came for 5. Smile 6. Tell me your name 7. Acknowledge my presence 8. Don t treat me like I m an interruption 9. Show me you care 10. Don t waste my time
3 POE = Points of Experience Every contact (POE) a customer has results in a conclusion: Points of experience are every single experience someone has that involves your company. They are created by your employee s actions. They LIKE doing business with us. They DISLIKE doing business with us. They are INDIFFERENT Their conclusion determines their loyalty: The psychology of customer loyalty Like = positive experience Dislike = negative experience Indifferent = neutral experience To keep customers coming back The #1 reason customers leave: You must give them a positive and memorable experience. We do not give them what they want
4 How to keep customers coming back? What is Amazing Service? Give them what they want, in a way that is sustainable for your organization. Amazing Service helps you deliver what your customers want Amazing Service Amazing Service Is a PROCESS not a Project! Includes everyone in the organization The Four Requirements of Amazing Service: Give your customers what they want plus a little more. 1. Give your customers what they want, plus a little more. In the context of your business. Better than anyone else. Every time with every customer, no exceptions and no excuses. Means you must know what they want
5 2. In the context of your business. 3. Better than anyone else. Means it must be sustainable for your company. Means you must focus on what your company does best With every customer every time no exceptions and no excuses. Consistency builds trust. Means you must be consistent. And it lowers the risk customers have when they choose to do business with you Consistency creates quality 99.9% quality means 12 babies go to wrong parents every day Because the more you do something, the better you get. 18,322 pieces of mail get delivered wrong 2.5 million books have the wrong cover 315 words in the dictionary are misspelled 20,000 prescriptions get filled incorrectly
6 The Four Requirements of Amazing Service: Give your customers what they want plus a little more. What are your customer service goals? In the context of your business. Better than anyone else. Every time with every customer, no exceptions and no excuses. What vision do you have for your customer s experience? Activity The 6 Steps to Amazing Service 1. Draw a horizontal line in the middle of a blank piece of paper. 2. On the top half write as many words as you can that describe a great customer experience in your organization. 3. On the bottom half write words that describe a bad customer experience in your organization. These are the strategic steps to build a culture of service in your organization The 6 Steps to Amazing Service: 1. Get everyone involved Get everyone involved. Ask your customers what they want. Develop & publish your Unified Message Create easy & convenient ways for customers to offer feedback. Listen to and act on what they tell you. Keep improving!
7 Why get everyone involved? Make the math work better Shouldn t problems be dealt with by management? Get everyone in your company involved in solving problems and addressing opportunities. Best Buy Corporation example What is the math in YOUR city or company? Ask your customers what they want. There is a gap in many companies Bridge the gap Your goal: The gap that exists is between what customers wants and what organizations think they want. To create a persistent and transparent flow of information among customers, employees and management
8 Ask your customers what they want. Ask your customers what they want. Why did they choose you? How do they want to be treated? What do they expect from you? What motivates them? What are they trying to accomplish? What are they trying to avoid? What are their preferences and priorities Look for trends and patterns What do you do that no one else does? What would make they leave? Group them Create profiles Develop and Publish Your Unified Message Your Unified Message Is based on two things: What your customers want. What your organization does best Your Unified Message is also known as The Two Circles Technique Customer service standards Brand promise Customer service commitment Whatever you want to call it
9 Activity: Publish Your Unified Message In pairs: 1. Create the two circles for your organization 2. Then create a 3 rd circle. Fill it with everything the first two circles have in common Publish Your Unified Message Some ways to publish your Unified Message Let your customers know about your Unified Message Tells them what to expect from you Helps them provide better feedback Helps you manage better Aligns three most important groups: customers, employees and management Newsletter Website Twitter and other social media Business cards Signs & posters Mailings Vehicles Create easy ways for your customers to offer feedback. The Internet has changed how customers talk about companies ebay Welcome to the Feedback Economy Starbucks Amazon Steak n Shake CrocsLoveHate.com Twitter.com
10 What are people saying about your company? Create easy ways for your customers to offer feedback. Google searches & alerts Feedback helps bridge the gap Industry specific websites Review/opinion websites Make it easy and convenient Must be ongoing Blogs Do it yourself News media Use technology Social networking websites Make it personal Forums Respect their time Listen to and Act on What They Tell You Listen to your customers In person listening skills Listen for what s important Complaints or concerns Praise and compliments Keep track of what you hear Let everyone see it Archive customer feedback Make it available to all employees All forms of feedback Talk about it Make it easy to access Tag or categorize Review, evaluate, discuss and debate Ask employees: What does it mean? Make it searchable Get their input
11 Act on what your customers tell you. Thank your customers for their feedback. Information is no good if it s ignored. It s the most useful information you have about your company Give your customers feedback about their feedback. 6. Keep improving Tell them how you use it and why it s valuable. The more you do something, the better you get This is a process, not a project. Review and Refresh Things change so you need to keep improving. You ll never get it right the first time. The more you work this process, the more customers you will engage in the process. This makes them more loyal. Employees will become more engaged too. What is Amazing Service? Why is it important? What are the 4 requirements? What are the 6 steps? What is the gap? How do we bridge the gap?
12 Remember Activity: First, choose a task Your goal is to create a persistent and transparent flow of information among your organization s employees, customers and management. Get everyone involved. Ask your customers what they want. Develop & publish your Unified Message Create easy & convenient ways for customers to offer feedback. Listen to and act on what they tell you. Keep improving! Activity: Then do it! Should Your City Twitter? Each group chooses a task For each task: 1. Define your objective 2. Explain why it s important 3. Complete the objective (or create action steps needed to complete the objective) 4. Share with whole group What is Twitter? Twitter Fun Facts The world s fastest growing communications network In April Twitter had 28 million visitors in the USA The Internet s dominant micro-blogging platform No one really knows but it sure is popular! And 38 million visitors globally In the last 4 weeks Twitter has seen 31% growth in the number of active users Its users range from presidents to celebrities to average people
13 Minnesota Twitter Trivia What can you do with Twitter? Minnesota currently ranks 15th in the nation in active Twitter users Well ahead of Iowa, WI and the Dakotas! Minnesota s top Tweeter has over 110,000 followers Meet new people Connect with existing friends and colleagues Reach out to your customers Monitor live news from around the world Speak your mind What cities Twitter? Minnesota Municipal Tweeters Los Angeles Fire Department Naperville IL Killeen TX Tri-Cities, TN San Francisco BART Mountain View, CA Police Department Franklin, MA Police Department Hillsborough, NC Louisville, KY Peoria, AZ Falcon Heights Minnetonka Edina Eagan CVB Dan Ness, Mayor of Alexandria R.T. Rybak, Mayor of Minneapolis Why Twitter? Example: news release Keep citizens informed Make it easy and convenient for your customers to give you feedback Learn more about what s happening in your community You get to brag at conferences like these
14 Example: community alerts Example: meeting notices How to get started The best thing you can do for your city or company Go to Register it s free Learn how at: Read The Twitter Book by Tim O Reilly Create a persistent and transparent flow of information between management, employees and customers
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