The expectation dry-up?

We have been mentioning that the moment of truth is the point where a brand is made or broken. This is where either a satisfied customer glorifies the product/service or an unhappy customer dismisses it. We know for a fact that most of the time the customer is left dissatisfied. We lay the onus on the service provider and complain that service levels have to improve – and then there’s lethargy. But then there is the Indian consumer who is so used to poor service that she is almost immune to it! In the comparison between expectation and delivery, we can see that since the expectations are so low, it’s no surprise that delivery levels are so poor.

This could probably be attributed to years and years of poor service, long queues and red tape that has adversely conditioned the Indian consumer psyche. It is sometimes due to this mindset, that when something out of the ordinary is provided, the Indian customer is overawed. For example, an Indian consumer is easily thrilled when a DTH service provider promises service in 24 hours and it actually happens! But isn't this what the company has always promised?

So let’s sum it up. It would seem that as an ecosystem we are already meeting expectations and with the considerably low levels these expectations are surviving at, we are headed towards an era of customer indifference. Or we quite possibly are already there. Practitioners have been talking about great customer service for years now but service providers continue to ignore the calls, yet they preach about the Zappos of the world without ever intending to change a single process internally. Customer indifference could soon lead to a drying up of differentiators or marketing ‘hooks’. We would then go back to a market that differentiates on factors like price and product design that we know are unsustainable.

Looks like soon, that DTH customer we spoke about is going to become an exception to a rule no one cares for. 

Making the non routine, possible!

What puts Zappos and Nordstrom on a completely different orbit when it comes to customer service? Besides an unbelievable ability to understand their customer, it also is their knack to handle the non routine. A non routine query from a customer can be best defined as a request from a customer asking a service provider to go beyond laid down offerings and processes. This is where most brands get a shot at instant immortality in the minds of the consumer. And companies who do this with great aplomb are the ones who have a plan. A plan that may involve limitless employee empowerment or well distributed resources.  So even though we know, that fulfilling these queries can create customer satisfaction like never before, companies need to ask themselves this; how tenable is developing a strategy for handling a non routine query?

While planning such a strategy companies need to look at the financial burden that they might be taking on. Completing a non routine query can involve a cost which your business could not have accounted for. Preparing for these costs make it a tricky financial proposition. This leads us straight into another quandary a company faces; how do you empower your employee to handle these queries? Drawing the line for how much discretion you can trust your employee with is never easy. It involves a great amount of training and also smart recruiting. Employees have to buy into your brand philosophy or be trained to execute it to perfection. When you are past the monetary and employee capability conundrums, you will have to ask yourself if you can truly sustain such an effort. Changing track midway and not delivering on such queries can lead to a loss of goodwill as customers will immediately sense something is out of place. From that point on, getting back in the good books of the customer may take a greater effort.

So to sum it up, the three key requisites are: financial ability, employee empowerment and sustainability. These are by no stretch of imagination, the only questions you need to ask. A lot of it comes down to top management will and operational nous. The results are there for all to see, the commitment is what you need to ensure. So are you ready to become a Zappos or a Nordstrom? Now that, is not a non routine query!   

The Zappos Way of Customer Service

“Customer Service Isn’t Just A Department” – Tony Hseih, CEO, Zappos

When you decide to make customer service your competitive advantage, you are making a huge commitment to your customer. This commitment would not come to fruition unless there is a concerted drive to build this into the company’s culture. And no company has quite perfected that art like Zappos.

Las Vegas-based Zappos started in 1999 by selling shoes online, and has since grown to a US$1 billion per year retailer. It has expanded into clothing, handbags, sunglasses, and numerous other categories. The company early on decided to focus its marketing budget towards delivering exceptional customer service. To enable this, they have manufactured from the bottom up a very open culture in the organization. From allowing vendors to view what products are in stock along with prices and profit margins to allowing other companies to have a look at the way they run their Contact Center operations, Zappos has built a very strong image in the minds of the industry of what they are trying to achieve. Even internally, their Contact Center agents are not given scripts and are not bound by rules which force them to complete calls quickly (the record being 4 hours for a single call). Zappos sees their greatest brand building opportunity in speaking with their customers. They encourage trial of their products with a guarantee that it can be returned even a year after purchasing it, thus building a very strong chain of trust with the customer. This and many more such initiatives place Zappos on a whole new pedestal in the minds of the customer.

Taking this sort of positioning in the market can be a very daunting task. But Zappos have made this belief in customer service all pervasive across the company. This can truly be achieved when the initiative begins from the top. Tony Hseih has always believed in living and breathing the values set by Zappos. Many companies have similar values stated in the reams of company literature they print every year, but delivering on them sometimes needs motivation and a directive right from the top.

If you are looking to implement customer service the Zappos way, a very conscious effort is required. It may well need a complete overhaul of processes, people, culture and most importantly - a healthy dose of top management directive.

This is what we think, what do you think?