Certificate IV in Frontline Management Learning and Assessment Material BSBCMN 410 A CO-ORDINATE IMPLEMENTATION OF CUSTOMER SERVICE STRATEGIES BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page i of 24 Contents Customer Loyalty…………………………………………………………………………………3 Strategise And Plan For Loyalty!………………………………………………………………..3 Market To Your Own Customers!……………………………………………………………….4 Use Complaints To Build Business!…………………………………………………………….4 Reach Out To Your Customers!…………………………………………………………………4 Loyal Customers and Loyal Workforces………………………………………………………..5 Why is dis-un-empowerment important?……………………………………………………….7 What is Dis-Un-Empowerment and how do we improve it?………………………………….8 Level One - Systems and Procedures:…………………………………………………………9 Level Two - Customer Satisfaction:…………………………………………………………...10 Level Three - Exceptional Service Quality:…………………………………………………...10 So how do organisations dis-un-empower workers?………………………………………..12 Ideas for Customer Care……………………………………………………………………….13 One Last Story:………………………………………………………………………………….14 Understanding Hostile Customers…………………………………………………………….15 It Isn’t Personal………………………………………………………………………………….16 What Does The Angry Person Want?…………………………………………………………16 What To Do?……………………………………………………………………………………..16 Specifics:…………………………………………………………………………………………17 Conclusion:………………………………………………………………………………………17 TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS………………………...18 ASSESSMENT TASK…………………………………………………………………………..19 ASSESSMENT MODE A……………………………………………………………………….20 ASSESSMENT MODE B - Skills observation checklist …………………………………….21 Participant survey of materials…………………………………………………………………23 Hinson Institute of Training BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page ii of 24 BSBCMN 410 A CO-ORDINATE IMPLEMENTATION OF CUSTOMER SERVICE STRATEGIES Element of competency: 1. Advise on customer service needs 2. Support implementation of customer service strategies 3. Evaluate and report on customer service CUSTOMER LOYALTY "It takes a lot less money to increase your retention of current customers than to find new ones-but I know I don't give it as much effort as I should because it does take a lot of energy and effort!" STRATEGISE AND PLAN FOR LOYALTY! Do you even have a specific plan for building customer loyalty? I bet you haven't given it as much thought as you should- because to tell the truth I need to give it more effort also. If you currently retain 70 percent of your customers and you start a program to improve that to 80 percent, you'll add an additional 10 percent to your growth rate. Particularly because of the high cost of landing new customers versus the high profitability of a loyal customer base, you might want to reflect upon your current business strategy. These four factors will greatly affect your ability to build a loyal customer base: 1. Products that are highly differentiated from those of the competition. 2. Higher-end products where price is not the primary buying factor. 3. Products with a high service component. 4. Multiple products for the same customer. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 3 of 24 MARKET TO YOUR OWN CUSTOMERS! Giving a lot of thought to your marketing programs aimed at current customers is one aspect of building customer loyalty. When you buy a new car, many dealers will within minutes try to sell you an extended warranty, an alarm system, and maybe rust proofing. It's often a very easy sale and costs the dealer almost nothing to make. Are there additional products or services you can sell your customers? Three years ago my house was painted, and it's now due for another coat. Why hasn't the painter called or at least sent a card? It would be a lot less expensive than getting new customers through his newspaper ad, and since I was happy with his work I won't get four competing bids this time. Keep all the information you can on your customers and don't hesitate to ask for the next sale. USE COMPLAINTS TO BUILD BUSINESS! When customers aren't happy with your business they usually won't complain to you - instead, they'll probably complain to just about everyone else they know - and take their business to your competition next time. That's why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made. They find that if they promptly follow up and resolve a customer's complaint, the customer might be even more likely to do business than the average customer who didn't have a complaint. In many business situations, the customer will have many more interactions after the sale with technical, service, or customer support people than they did with the sales people. So if you're serious about retaining customers or getting referrals, these interactions are the ones that are really going to matter. They really should be handled with the same attention and focus that sales calls get because in a way they are sales calls for repeat business. REACH OUT TO YOUR CUSTOMERS! Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The more the customer sees someone from your firm, the more likely you'll get the next order. Send Christmas cards, see them at trade shows, and stop by to make sure everything's okay. Send a simple newsletter to your customers-tell them about the great things that are happening at your firm and include some useful information for them. Send them copies of any media clippings about your firm. Invite them to free seminars. The more they know about you, the more they see you as someone out to help them, the more they know about your accomplishments-the more loyal a customer they will be. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 4 of 24 LOYAL CUSTOMERS AND LOYAL WORKFORCES Building customer loyalty will be a lot easier if you have a loyal workforce-not at all a given these days. It is especially important for you to retain those employees who interact with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people but little to support people. I've been fortunate to have the same great people in customer service for years-and the compliments from customers make it clear that they really appreciate specific people in our service function. The increasing trend today is to send customer-service and technical-support calls into queue for the next available person. This builds no personal loyalty and probably less loyalty for the firm. Before you go this route, be sure this is what your customers prefer. Otherwise I'd assign a specific support person to every significant customer. The guru of quality, W. Edwards Deming probably said it best: "...It will not suffice to have customers that are merely satisfied. Satisfied customers switch, for no good reason, just to try something else. Why not? Profit and growth come from customers that can boast about your product or service - the loyal customer. He requires no advertising or other persuasion, and he brings a friend along with him." Building loyal customers with service quality is a common competitive strategy for business success today. Yet why is it we get service that is often less than satisfactory? Why don't some people seem to care? What really builds customer loyalty and maintains profitability? The answer is simple, obvious, and manageable. Let's illustrate with a few simple stories: Can I, Really? At a major hotel chain, employees are wearing buttons that say, "Yes I can." I ask the front-desk clerk if she could give me a button and she says, "No, I can't." She said wearing the button was management's policy and the hotel didn't have extras. Caught in a dilemma, she was not able to do what the company or customer wanted her to do. And it is these types of dilemmas that, over time, will drain her self-esteem. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 5 of 24 At McGuffey's Restaurants, employees and managers wore buttons saying, "The Answer is yes." Ask anyone for a button, and they'll give you their very last one, knowing this response is the expectation of top management. This attitude infected the restaurant, with waitresses making a quick run to McDonalds to buy a customer's kid a Big Mac, raising money for charities or driving to the grocery store to buy anchovies for my Caesar salad. The hotel chain talks about competing on service, even including questions about their "Yes I Can Attitude" on its customer surveys. But people feel frustrated by situations where they can't respond to customer requests quickly and efficiently. McGuffey's, on the other hand, uses the same concept to establish extraordinary levels of teamwork and commitment to customers, helping them build an outstanding reputation for service quality. McGuffey's people are expected to take staff-taught programs in self-esteem and goal setting. Fly Me Again, Please. A flight attendant cordially bends the rules so a friend traveling to the same conference can join me in First Class - after all, the cabin is only one-third full and my upgrade certainly paid for a couple of drinks. She then surprises us by offering my friend a drink and a dinner. She made two customers quite happy by her behavior - another great service story in the making? Is this another one that we'd both tell others in our training sessions? Nope. With a landing and crew change in Boston, a new attendant comes on board and rudely confronts my friend in an accusing tone, saying, "You're not supposed to be in that seat, are you?" End result? "We Love To Fly" didn't show, I sit alone in an almost empty front cabin and the airline now has two dissatisfied customers. So far, they have lost a few thousand dollars in sales with my decision to fly their competition, losing many times more than the cost of a couple of drinks and a smile. And we have this story to tell other people. Most of us have similar stories of people doing not what's right, but doing only what the systems and procedures require. Unempowered employees tend to drive customers away or miss chances to build customer loyalty. Top performers, the ones who build positive long-term relationships with customers, will often bend rules and make decisions for the long-term good of the customer relationship when necessary. They tend to retain customers and build loyalty. The answer to service quality improvement is simple and straightforward - It's people; people dis-un-empowered to make decisions to the benefit of the customer and the company. And dis-un-empowered people will generally make the right decisions! Dis-un-empowered people do what's right for the business, rather than doing only what the systems and procedures require. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 6 of 24 WHY IS DIS-UN-EMPOWERMENT IMPORTANT? The well-known Rockefeller University data (1988) indicate that almost 70% of customers leave because of perceived rude or indifferent behavior by an employee, compared to about 20% combined for price and product quality. And an article about Fidelity Investments' recent customer research, reported in the Wall Street Journal (11/27/90), indicates that customers value polite treatment well ahead of investment performance and accuracy of statements for their retention. "At the very top of their list were things like 'People taking responsibility for me' and 'People listening to me.'" I didn't complain to the airline - after all, what was there to complain about? But I did write a positive letter about the first attendant and her overall performance. I also took my business elsewhere, something most customers do. We don't complain, we just go away. Most customers don't complain; 50 percent just go away. John Halbert, a service quality consultant, talks about the little "pinches" that all of us receive in dealing with organisations. Over time, these little pinches become increasingly annoying and increase the likelihood that the pin will hit the balloon and we will shift to a competitor. The oft-cited TARP research on complaint behavior suggests only 5% of customers with problems will complain to management and that 50% simply go away. But TARP research also indicates that customers do tend to complain to frontline people about 45% of the time for service-related issues. The right responses at the right time will retain or even build customer loyalty. Thus, complaints to action-oriented people will positively impact customer retention through their responsive behaviour. Why aren't people more responsive? Frank Layton, former basketball coach of the Utah Jazz, once complained to a player not playing to his potential: "Son, what is it with you? Is it ignorance or apathy?" To which the player responded, "Coach, I don't know and I don't care." Complaining to people who act like they know or don't care tends to insure customer defections. The real cause in most organisations isn't ignorance -people know how to do the job. It is more likely apathy caused by ineffective management of people or frustration caused by your policies, procedures, and systems. As we said before, the people who handle service opportunities the best are those most focused on doing the right thing for customers and the business. These people will make decisions, take appropriate risks and take action. And these people are the ones that retain your customers as shown in Figure One. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 7 of 24 Fig. 1 WHAT IS DIS-UN-EMPOWERMENT AND HOW DO WE IMPROVE IT? Our notion of dis-unempowerment fits tightly with the concept of customer retention. If organisations are truly focused on retention, this focus drives a wide variety of desired behaviours and insures that systems and procedures work well. Customer retention is also profitable; companies will boost profits by about 100% by retaining just 5% more of their customers (Reichheld and Sasser, 1990). Thus it makes sense that: A primary goal of every organisation should be the attraction and retention of customers and employees. There are two issues to dis-un-empowerment, the organisational ones and the personal ones. The response of the service provider is based on the structure and systems of the organisation. Service providers are the messengers and will tend to reflect the alignment of vision and values in their organisation. Dis-un-empowerment requires organisational alignment to allow people to make decisions based on customer needs as they relate to organisational goals. At the same time, many organisations with structural support are stymied by an apparent unwillingness of many of their service providers to actually make these decisions. We will address some of the factors that underlie this issue as we conclude. Our Service Maturity Model of service quality management is a basic framework to relate service quality to training and competitive strategies. There are three levels of service and strategic focus: BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 8 of 24 LEVEL ONE - SYSTEMS AND PROCEDURES: Organisational systems and procedures must work effectively and efficiently so that customer orders, questions, and problems can be quickly handled. Sertec, an Atlanta-based complaint monitoring company, finds that resolving a complaint within 24 hours results in 96% customer retention; for each day of delay in responding, there is about a 10% additional loss. Response time is critical to perceived service quality and the structure and systems of the organisation must lend itself to rapid responses. The Service Maturity Model suggests that systems and procedures must exist to process and handle these transactions efficiently and effectively and that initial training must focus on operating systems and following procedures. If systems aren't effective or efficient, consider the costs and the corresponding impacts on response time and employee morale. The costs of fixing systems problems are generally far outweighed by a high return on your investment in people. Teamwork, as well as a linkage of interdepartmental objectives, is often required since many transactions will cross-departmental boundaries. A call to a salesperson about a billing discrepancy, for example, is best resolved quickly on the initial call with the salesperson handling the situation themselves. (If you can't trust your people to do this, get new people.) The goal is to make all of your systems work efficiently and effectively from the customer's perspective. McGuffey's, for example, shares an elegant example of a system glitch related to the condiment dishes called ramekins. Company President Keith Dunn was working as an order expediter and had dinners ready to be served, but no ramekins. Given their commitment to service quality, he asked himself why a 25-cent item should be allowed to interfere with the entire dining experience. His next step was to make a public commitment that his restaurants will never, ever run short of ramekins. In fact, if you ask for one, they will give you one free. To effectively manage the "Process and Handle" Level of Service Maturity: Ask your customers about your systems for inquiry on order status, order entry, billing, complaint handling, and follow-up. Do these customers ever feel "processed and handled?" Ask your customer contact people about your systems' effectiveness. Develop high levels of communications between departments. Co-develop possible. Train all employees on the proper systems and procedures. Establish good internal measures of service quality at every level of the organisation. BSBCMN 410 A inter-departmental measures Co-ordinate implementation of customer service and September 2004 objectives Version 1 where Page 9 of 24 LEVEL TWO - CUSTOMER SATISFACTION: The next level of service is focused on meeting customer expectations with training focused on technical and professional competencies. Customers like to interact with people who do more than process and handle transactions. They often require access to technical information and expect good interpersonal and communication skills. To accomplish these objectives, companies need to share missions, visions and goals. They need to monitor changing customer expectations and modify the delivery of service and product quality to match these expectations on an ongoing basis. Leadership must demonstrate a consistency in its behaviour toward these visions and values, as well as a commitment to them from the top down. A common breakdown in quality management occurs when top managers don't truly understand the issues, costs, and impacts of their behaviour and behave in ways that send conflicting messages to the front-line employees and supervisors, as in our hotel example. To effectively manage the "Satisfy" Level of Service Maturity: Ask your customers to compare your service to your competitors and other organisations to which you benchmark your service. Ask your customer contact people to compare you to other organisations. Build teamwork throughout the organisation and develop real partnerships with customers whenever possible. Train all employees on the technical information about your products and services. Develop good communications throughout your organisation. Establish good external measures of service quality at every level of the organisation and between departments. skills and interpersonal skills LEVEL THREE - EXCEPTIONAL SERVICE QUALITY: Service quality is more than having systems that work and doing what's expected. Service quality must be built on people exceeding customer expectations, which we label "Care" in the Service Maturity Model. And here is where the dis-un-empowerment issues become most obvious. Organisational dis-un-empowerment issues around systems and procedures linked to decision-making are pretty straightforward. Do people truly feel that they are able to make decisions? Has risk-taking been rewarded (or punished) in the past? Are people praised or are they second-guessed? Has the organisation truly gotten people involved in making decisions? And do employees feel a strong sense of ownership and commitment? BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 10 of 24 You can find out by asking. Contrary to common belief, it is not Rocket Science! Personal dis-un-empowerment issues are less clear. Astronaut Scott Carpenter gave a nice analogy about walking in space. Years of training, simulations, and practice in weightless conditions as well as hundreds of hours of discussion and preparation did not adequately prepare him for the reality of standing in the doorway of the spacecraft with black infinity in every direction. He thought he could do it, but he froze. Wouldn't you? There are direct parallels to dis-un-empowering people. The American Society for Quality Control recently reported that while two in three workers said they had been asked to become involved in workplace decision-making, only one in seven felt they had the power to make those decisions. And if they don't feel dis-un-empowered to make decisions, they won't. Why don't most people feel dis-un-empowered to make decisions? Because they are uncomfortable doing things differently than they have done them before. Most people will resist change. (See Box One). One key is to help these service providers to internalise the personal resources necessary to Service Maturity Level Three. "The only change people like is the kind that jingles in their pockets." Jerry Brown Note that almost every organisation has a few top-performing employees doing exactly what is necessary to build and maintain customer loyalty. They are the people that generally receive most of the letters of recognition and generate the highest profitability. They are the ones that customers would follow if they moved to a competitor. The challenge is to expand the number of people who perform at this level. For example: Cindy sells jewellery. A few years ago, she thought to send Thank You notes to her customers. The response was most interesting - she began to get thank you notes for her thank you notes. Cindy did more than $1,000,000 in sales and the owner of the store bought her a mink coat. Her co-workers were actively encouraged to model her system, and the sales of the store have dramatically improved. Exemplary performers manage roadblocks much more effectively and tend to have clearer perspectives and focus on what your customers require. They also tend to focus on doing the small things that truly make a difference in building a client relationship with the customer. But also recognise that they often bend the rules to do what is right - thus delivering the highest perceived value. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 11 of 24 If organisations want to build service quality, they must have systems that work, must understand customer expectations, and must be willing to let trained people make decisions with few restrictions. Work hard to remove the things that people think are getting in the way of improving quality and service. They will add revenues and build loyalty of the customers. SO HOW DO ORGANISATIONS DIS-UN-EMPOWER WORKERS? Simple structural or systems changes do not necessary result in behaviour change on the front-line. Changes meant to help workers make decisions are often resisted by the majority and implemented by a minority. Why don't people accept risk and change more readily? Consider patterns of thinking as one of the keys to improving organisational performance. Our current behaviour is influenced primarily by our memories of our past experiences - a series of positive and negative images or thoughts. Top performers think about past successes and often embellish these memories; poor performers think about failures and tend to embellish them and make them worse than they were. By understanding the mental aspects of performance and structuring your organisation to better manage constructs of mission, vision, goals, and expectations, you can create more positive environments that better support top performance. Change is made easier by a positive image of the future that engages and enlists people in the effort. Top skiers, for example, see themselves successfully negotiating a racecourse. This repetition of success helps them develop a positive mindset for the event. Poor performers, on the other hand, often think about previous crashes, thus programming themselves for future failure. An insurance salesman calculates he earns a $1,000 commission for every sale and that only one in ten sales attempts is successful. While an average insurance salesperson finds selling frustrating because of the high turndown ratio, this one mentally thanks each prospect for the $100 he will receive from their discussion. Imagine thanking every prospect you meet for $100 and the message it conveys to the prospect! Imagine the attitude and behaviour of your billing personnel if they were to (mentally) "thank every complaining customer for $100" when a question was resolved. But isn't a resolved complaint and a retained customer worth at least $100 to your company? This is the type of attitude and thinking that underlies performance of your best people. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 12 of 24 IDEAS FOR CUSTOMER CARE. Here are some ideas about what you and your organisation can do to effectively manage at the "Care" Level of Service Maturity. Many of these ideas are focused on asking for information. Asking invites involvement and commitment. Organisational Development: Ensure that systems and procedures work and that customer expectations are understood and shared. Ask for suggested improvements. Develop a strong sense of mission and vision and create a commitment to values and expectations. Start every meeting with a positive story about service, either one about your people or someone from another organisation. Send the message that you appreciate good service and that it is important to you personally. Make sure that every person understands the impacts of customer service quality on profitability and cost. Minimise roadblocks to action. Ask about what gets in the way. Ask your team to develop a set of desired service quality standards. Reward bad decision-making publicly and positively. Talk about what was done correctly and ask how it should be done differently in the future. Consider doing upward appraisals, giving subordinates an opportunity to provide feedback about how they can be managed more effectively. Personal Development: Help people develop personal "States of Success." Have them envision the most successful service in the past and talk about what that would look like in the future. Help people accept that discomfort is a normal part of change. Share the exercise described in Box One. Have your most successful people share their thinking and personal mindsets as well as specific examples of service behaviours. Do this regularly. Encourage people to establish personal and professional goals for themselves and to continue to build the self-esteem needed to grow and prosper. A few companies such as L.L. Bean even offer courses on resume writing! BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 13 of 24 Become future-oriented in your thinking. Focus on corrections for the future and not on the problems of the past. (But note how difficult this is when your boss keeps focusing on the past!) Your people are your human capital. They are assets that appreciate in value with experience and polishing. And these assets directly impact your profitability and growth by building a growing base of loyal customers that will have many impacts on your business and your future. Let's end with two quotes that get to issues of service quality, change, and empowerment: "We cannot become what we want to be by remaining what we are." Max DePree in Leadership is an Art "A lot of people have fancy things to say about customer service, including me. But it's just a day-in, day-out, ongoing, never-ending, unremitting, persevering, compassionate type of activity." Leon Gorman, President of L.L. Bean. ONE LAST STORY: A customer comes back into McGuffey's needing help. Seems he locked his keys in the car and had only a few minutes to save his child from Day Care Purgatory. A young waiter he didn't know loaned the customer the keys to his new Camaro, asking only that the customer, "bring it back before my shift ends at 11:00." On Thanksgiving, this same restaurant closes, yet most of the workforce comes in - they volunteer to transport and serve dinner to the needy in their communities. They sponsor golf tournaments as fundraisers and do a widevariety of community development programs. McGuffey's Restaurants in Asheville NC is an incredible organisation in a most competitive industry. Their employee turnover is one fifth the industry average. And with most of the staff knowing hundreds of customers’ names and preferences, they build personal relationships and loyalty with their customers. And they show steady growth on existing stores using word of mouth for their marketing. Keith Dunn, their leader, closes the chain for their spring and fall team Olympics. He's been on the cover of Inc. Magazine as a leading example of small business leadership and has even presented his concepts to Zig Zeigler's staff in Texas. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 14 of 24 People are what most businesses are about: the attraction and retention of customers and employees. And personal empowerment is what drives most organisations. It's difficult to manage and most difficult to control, but if it can work in a restaurant, it can work almost anywhere. "DARE TO BE DIFFERENT" If you think you are beaten, you are, If you think you dare not, you don't. If you like to win, but think you can't, It is almost certain you won't. If you think you'll lose, you're lost For out of the world we find, Success begins with a fellow's will It's all in the state of mind. If you think you're outclassed, you are, You've got to think high to rise, You've got to be sure of yourself before You can ever win a prize. Life's battles don't always go To the stronger or faster man, But soon or late the man who wins Is the man WHO THINKS HE CAN. UNDERSTANDING HOSTILE CUSTOMERS You probably see hostile customers every day. You know, the ones that treat you like a personal dumping ground for everything that has ever gone wrong in their lives? They may be sarcastic, or abusive. They may swear at you, threaten, attempt to intimidate. They are difficult to deal with, and an encounter with one of these people can ruin your day. Although you may be provoked, it isn't a good idea to respond in kind. Doing so will usually inflame the situation, and can in fact put you at risk. Yelling back, or trading insults can result in only negative consequences for you. Let's face it. You don't have time to waste arguing and yelling...you have too much to do. But you do need to deal with hostile customers. You need to get the situation under control, deal with it and get on with your work. There are a number of techniques you can use to do this, but we are going to help you understand what is going on when hostile customers direct their anger at you. Understanding angry people helps us become less reactive, and less prone to losing our own temper. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 15 of 24 IT ISN’T PERSONAL The first thing to remember about angry customers is that while their behaviour is directed at you (and it can be personally insulting), the real source of the anger is elsewhere. The angry person is not usually angry with you as a person. He or she is usually angry with you as an employee of an organisation that is perceived as cold, unfeeling, and unhelpful. Since it is difficult to yell or abuse an entire organisation, the angry customer will direct anger towards you. WHAT DOES THE ANGRY PERSON WANT? One of the half-truths about hostile customers is that they want their problem solved. This isn't the whole story. When a person is initially denied something from an organisation, they get to a point where the problem becomes secondary. Yes, they want the problem solved, but after a point, they get so angry that they are unwilling to work positively to get what they started out wanting. Even if you could work something out with them, they would still be angry. It is important to realise that very angry people want an opportunity to vent their anger, and they want to be heard and acknowledged. If you don't acknowledge their anger, and move too quickly to try to solve the problem, you will likely make them angrier and more abusive. WHAT TO DO? There are specific things you can do to take control of potential hostile situations so that they don't escalate into major time-consuming conflicts. First, you need to observe customers as they approach, and prepare yourself for the possibility that they may show hostile behaviours. People who are irritated or upset will show telltale signs even before they open their mouths. They will send non-verbal clues which may include hunched shoulders, clenched fists, red face, fidgeting and restlessness, staring or avoidance of eye contact, rapid movement, etc. You need to look for these signs so that any outbursts do not surprise you. Many hostile situations get out of hand because the employee reacts too quickly to hostile behaviour, because he or she did not expect it. If you see a hostile person approach, prepare yourself mentally by reminding yourself that you CAN control the situation, and that you need to keep yourself under control. If you get angry yourself you are likely to contribute to the deterioration of the situation. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 16 of 24 Second, when you are in contact with a hostile customer, you must strive to present yourself in as un-bureaucratic a way as possible. Remember we talked about customer anger being really aimed at the organisation? If the customer perceives you as an object, a piece of the bureaucracy, they will be more likely to be more abusive. However, if the customer sees you as a human being who doing the best you can, it is more likely that he or she will show less aggressive behaviour. SPECIFICS: Let's get more specific. How do you do this? 1) Speak in a friendly manner. Do not speak in a monotone or in a way that implies that you are uninterested. 2) When possible use the customer's name as soon as possible, and also introduce yourself if that fits the situation. 3) Greet the person properly. Don't look up from your paper work and say "Yes?” or "Next". That makes you look like part of a machine. Try "Good morning, Mr. Smith". 4) Listen carefully. Show the customer you are listening by paraphrasing what was said back to the customer. This shows your interest and concern. A common error made by people is that they don't allow the customer to finish. 5) Don't use the "P" word. The P word is "POLICY". Many times an employee will explain that it is against "our policy to do" what the client wants. This infuriates many people. Even if the request is against your policy, find other words to say it. Rather than simply quoting policy, explain the purpose of the policy (eg. "Sir, we need to make sure that you are dealt with fairly and others are too.") 6) Never say, "I only work here" or "I'm only following rules". Again this makes you into a non-person. It may be true that you don't make the rules, but try saying it this way: "Sir, the regulations are made by [whoever]. Perhaps you might want to talk to [so and so] and indicate that you feel the regulations are unfair. Would you like the phone number?" CONCLUSION: Every hostile situation is different, and not all solutions will work all the time. The general principles we have talked about here are to be prepared by observing customers early in the process, and make sure that you come across as a real person. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 17 of 24 BSBCMN 410 A CO-ORDINATE IMPLEMENTATION OF CUSTOMER SERVICE STRATEGIES TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS The Trainee will be required to demonstrate competence on the job, in practical demonstration; observation, question/answer and role-play situations, incorporating verbal questions and written work, including completing workplace forms, either to the RTO Trainer or Supervisor, under the guidance of the RTO Trainer. Element of competency: 1. Advise on customer service needs 2. Support implementation of customer service strategies 3. Evaluate and report on customer service 1. How do you reach out to your customers? 2. Why is dis-un-empowerment important? BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 18 of 24 3. What Does The Angry Person Want? 4. How do you deal with the angry customer? ASSESSMENT TASK Prepare a written report that identifies a customer service problem within your workplace and outline a strategy that you might use to rectify this problem and prevent its recurrence. Detail how the problem was identified, how the customer was satisfied (or otherwise) and how you would monitor your strategy to ensure that the problem will not recur. Include samples and examples of forms and letters that were used where appropriate. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 19 of 24 ASSESSMENT MODE A Trainee name: Name of Workplace: RTO Trainer name: Unit/s of competency: BSBCMN 410 A Unit Name: CO-ORDINATE IMPLEMENTATION OF CUSTOMER SERVICE STRATEGIES Date of training/ assessment visit: Instructions: In addition to written answers provided above, the trainee is required to provide verbal answers to the following questions that will be asked by the RTO Trainer. Read the questions prior to the Trainer’s visit, and be prepared to answer them, obtaining help where necessary. Yes No 1. How do you reach out to your customers? 2. Why is dis-un-empowerment important? 3. What Does The Angry Person Want? 4. How do you deal with the angry customer? 5. What would be an example of a customer service issue in your workplace? 6. How would you solve this problem? Did the trainee satisfactorily answer the following questions: The trainee’s underpinning knowledge was: Satisfactory Not Satisfactory Notes/comments : Question 1: Question 2: Question 3: Question 4: Question 5: Question 6: RTO Trainer signature: Trainee signature: Date of assessment: BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 20 of 24 ASSESSMENT MODE B - Skills observation checklist Trainee name: Name of workplace: RTO Trainer name: Unit/s of competency: Unit Name: BSBCMN 410 A CO-ORDINATE IMPLEMENTATION OF CUSTOMER SERVICE STRATEGIES Date of training/ assessment visit: During the demonstration of skills, did the trainee: Yes No N/A Customer service needs were clarified and accurately assessed using appropriate communication techniques Problems matching service delivery to customers were diagnosed and options for improved service were developed within organisational requirements Advice was relevant, constructive and promoted the improvement of customer service delivery Business technology was used to structure and present information on customer service needs Customer service strategies and opportunities were promoted to designated individuals and groups Available budget resources were identified and allocated to fulfil customer service objectives Procedures to resolve customer difficulties and complaints were actioned promptly within organisational requirements Coaching and mentoring assistance was provided to colleagues to overcome difficulties in meeting customer service standards Decisions to implement strategies were taken in consultation with designated individuals and groups Client satisfaction with service delivery was reviewed using verifiable data in accordance with organisational requirements Changes necessary to maintain service standards were identified and reported to designated groups and individuals Conclusions and recommendations were prepared from verifiable evidence and provided constructive advice on future directions of client service strategies Systems, records and reporting procedures were maintained to compare changes in customer satisfaction The trainee’s performance was: Not Satisfactory Satisfactory Feedback to trainee: ----------------------------------------------------------------------- ----------------------------------------------------------------------Trainee signature: RTO Trainer signature: I confirm competence for this unit BSBCMN 410 A _________________ (Manager signature) _________________ (Date) BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 21 of 24 Off-the-Job Training Log Trainee Name: ____________________________________ Supervisor signature: _________________________________ Company: __________________________________________________________________ Certificate: II III IV Date: ______/______/200____ in Business (Office Admin/Admin) Civil Construction Extractive Industries Food Processing Hospitality Process Manufacturing Retail Operations TDT (Road Transport) TDT (Warehousing) Telecommunications (Call Centres) List below the times allocated to “Off-the-Job” training for: Date Activity code Duration Date Activity code Duration _________________ BSBCMN 410 A – Co-ordinate implementation of customer service strategies Date Activity code Duration Date Activity code Duration Activity Code 1. 3. 5. 7. 9. 11. 13. 15. 17. Read self-paced guides Met with Workplace Coach Discussion on phone Researched store policy and procedures Researched customer service Observed other staff member/s undertaking customer service Other research Staff training Complete appropriate paperwork relevant to task BSBCMN 410 A 2. Developed knowledge of use and safety requirements 4. Worked on assessment tasks 6. Discussed assessment tasks 8. Researched legislative requirements 10. Researched industry codes of practice 12. Performance appraisal 14. Read relevant industry publications 16. Talking to the supervisor 18. Other: (specify) __________________________________________ Co-ordinate implementation of customer service September 2004 Version 1 Page 22 of 24 Participant survey of materials Unit code: BSBCMN 410 A Unit name: Co-ordinate implementation of customer service strategies Date……..…………… Instructions: Please complete the questionnaire by circling the one number that best describes your answer to each question. Please read each question carefully. For mailed surveys, place the completed questionnaire in the enclosed reply paid envelope and post it back within seven days Q1. Thinking in general about the material you were given for this unit, how would you rate it overall? Circle only one answer Poor ………………………………………………………………………….…... 1 Fair ……………………………………………………………………………….. 2 Good …………………………………………………………………………..…. 3 Very Good ……………………………………………………………………….. 4 Excellent ...……………………………………………………………………….. 5 Don’t know ……………………………………………………...…………...….. 6 Q2. How strongly do you agree or disagree with the following statements about the unit material? a. The layout of the reading material made it easy to use/read b. The layout of the assessment material made it easy to use/read c. The font size of the material was large enough d. The reading material assisted me to complete the assessment e. The material was easy to understand f. The graphics/pictures were useful g. The graphics/pictures were sufficient in number h. The graphics/pictures were legible i. The materials was free from typing errors j. The material was relevant to my job/workplace 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 Don’t know / NA Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree Circle one answer only for each statement 6 6 6 6 6 6 6 6 6 6 Comments: Please expand on the above points if you rated any of them less than 3 ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 23 of 24 Suggested Answers BSBCMN 410 A 1. Co-ordinate implementation of customer service strategies How do you reach out to your customers? Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The more the customer sees someone from your firm, the more likely you'll get the next order. Send Christmas cards, see them at trade shows, and stop by to make sure everything's okay. 2. Why is dis-un-empowerment important? The well-known Rockefeller University data (1988) indicate that almost 70% of customers leave because of perceived rude or indifferent behavior by an employee, compared to about 20% combined for price and product quality. 3. What Does The Angry Person Want? One of the half-truths about hostile customers is that they want their problem solved. This isn't the whole story. When a person is initially denied something from an organisation, they get to a point where the problem becomes secondary. Yes, they want the problem solved, but after a point, they get so angry that they are unwilling to work positively to get what they started out wanting. 4. How do you deal with the angry customer? There are specific things you can do to take control of potential hostile situations so that they don't escalate into major time-consuming conflicts. First, you need to observe customers as they approach, and prepare yourself for the possibility that they may show hostile behaviours. BSBCMN 410 A Co-ordinate implementation of customer service September 2004 Version 1 Page 24 of 24