The service power of fully engaged employees

My wife, Sally, and I recently spent a few days relaxing at a resort hotel in Phoenix. One of our best customer service experiences came from an unlikely source: an associate named Darryl who was doing construction work to help renovate some of the hotel's rooms.

Businesses often focus customer service initiatives on employees whose customer service role is obvious. At a hotel that might be a front desk agent, bellman, or valet. However, anyone who comes into contact with your customers, whether directly or indirectly, is in the service business. Darryl was a great example of how one person can make a big difference.

We ran into Darryl while walking through the hotel. He greeted us with a warm smile and asked us if he could help us find anything. When we told him we were touring the hotel, Darryl told us about some of the renovations they were working on. He spoke with obvious pride about how the hotel was working to make itself even better.

Darryl then asked us if we were enjoying our stay. We told him we were, especially the time spent lounging by the pool. Darryl gave us a few tips on which pools were best at different times of the day.

Finally, Darryl asked if there was anything he could do to make our stay more enjoyable. We told him no, but Darryl encouraged us to let him or another hotel associate know if there was anything we needed.

Darryl created a positive experience for us because he knew he was in the service business. Do all of your employees know they are in the service business, even if "service" isn't in their title? Are they fully engaged with your organization? Try to imagine what you could achieve if you had more Darryls!

How Netflix should have handled their price increase

Netflix alienated a lot of customers when they announced a 60% price increase on July 12. They had previously offered a plan where customers could stream unlimited movies online and rent unlimited DVDs one at a time by mail for $9.99 per month. Starting in September, Netflix will offer a DVD-only plan for $7.99/mo and an online only plan for $7.99.

Subscribers found out via email but the story soon took on a life of its own online. Netflix was flooded with angry Tweets, Facebook posts, and blog posts. Several news outlets conducted informal polls of Netflix subscribers and reported that as many as 70% were thinking of cancelling or reducing their subscription. Investors haven't been too happy either as Netflix's stock price has dropped more than 15%.

Now that I have had a few weeks to calm down and weigh my options, I can see why Netflix raised their prices. I can also think of three things they should have done that they didn't. 

Be honest and open.
It's important to be honest and open when you make a business decision that will adversely impact your customers. The economics behind the Netflix price increase actually make sense. so why not come clean? They chose to ignore the issue entirely by essentially telling customers, "Hey - here are your new prices." I still don't think many customers would be happy with a 60% price increase, but they might have been more forgiving if they knew why. (There's a great overview on Yahoo that explains the business drivers behind this decision.)

Share something positive.
Netflix should have timed their price increase around some exciting news, like an agreement to add more movies that are available for streaming online. Their strategy includes moving more customers online since streaming movies is much cheaper than shipping DVDs. Making more titles available online would let customers know where some of that price increase was going and get more customers to use the streaming service. A bit of misdirection? Yes, but we customers tend to focus on what you put in front of us. All I have to look at right now is an email says I'm have to pay 60% more for the same service.

Emphasize your strengths.
Netflix missed a chance to emphasize that they are still the best deal in town. Their announcement caused many customers like me to shop for alternatives, but the alternatives either cost more money or offer a much smaller selection. Why not point this out? Heck - why not save us the time and put a nice little chart together that illustrates how Netflix offers the best selection, service, and price even after a 60% price increase? Everyone likes to think they are getting a good deal and Netflix should have made this clearer in their announcement.

Assuming the price increase was a foregone conclusion, what else could Netflix have done better?

3 things small business owners must know about service

Most small business owners face an enormous customer service challenge when they start adding even a few employees. How can you build the capacity to continue growing while preserving the customer-focused culture that fueled your growth in the first place?

If you own a small business, here are three things you should know about customer service.

1. Your employees don’t think the way you do
A small business often becomes part of the owner’s personal identity, so it’s no wonder that business owners take customer service personally. The tough part is realizing your employees don’t look at things that way. Even if they have exceptional customer service skills, it's extremely difficult for them to view customer service through the eyes of a business owner. It's up to you to ensure your employees clearly understand your customer service expectations.

2. Experience and talent are not the same thing
Small businesses all have their unique cultures, so it is important to hire employees who will fit with that culture. A talented employee may or may not have a lot of experience, but they should have a strong desire to work in a company like yours. Perhaps more importantly, they must have the right attitude to work with an owner like you.

3. You need to get out of the way, but don't stop leading
Your employees aren't going to handle every customer interaction exactly the same way you would. Some owners waste time and stifle productivity by over-managing their employees. Other owners risk poor customer service by being too hands off. A good small business owner finds the right balance of leadership and empowerment to get the most out of their employees while still offering the proper coaching and guidance to help their employees grow.

What else should a small business owner know about customer service?

New show Bar Rescue is full of customer service gems

I’m a sucker for just about any TV show that provides an inside glimpse at how companies really work. Bar Rescue on Spike is the latest show in this category. If the first episode is any indication of what’s to come, this show will be a customer service gold mine.

Bar Rescue’s premise is simple. In each episode, bar expert Jon Taffer tries to turn around a struggling bar. Taffer and his team work with the bar owner to quickly build profitability and increase customer loyalty.

Episode one featured a bar called Angels. It was run-down, the food and drinks were terrible, and the service was poor. Unfortunately, the owner and her employees had come to accept these conditions and did nothing to change or improve them.

Enter Taffer. Over the course of the episode, the fiery Taffer and his team whip the bar and its employees into shape. The owner’s biggest problem was she didn’t see the bar from her customers’ perspective. Taffer was able to change this by showing her how even simple changes can improve the customer experience. A better customer experience leads to more revenue, more referrals, and more loyalty in just about any business.

Visit the Bar Rescue website to see for yourself.

Why customer service training is essential for younger workers

Businesses who tend to employ younger employees are doing themselves, their customers, and their employees a disservice if they fail to provide training on basic customer service skills.

Here are three reasons why:

Young employees lack experience
Much of our customer service know-how comes from the experience of seeing what works and what doesn't. Unfortunately, young employees are gaining less and less experience. The Bureau of Labor Statistics estimates that only 48.9% of of Americans ages 16 - 24 had a summer job in 2010. That figure is closer to 30% in my home town of San Diego according to Mark Cafferty, the CEO of the San Diego Workforce Partnership. 

All of this means that young employees will be gaining their customer service experience courtesy of your company. If you don't provide them with training they'll likely learn most of their skills from trial and error. I don't think your customers would appreciate the error part.

Young employees find it harder to empathize
A core customer service skill is the ability to empathize with a customer. This allows employees to see things through their customers' eyes and prevent or resolve problems quickly. Empathy comes from having a similar or relatable experience, but younger employees simply lack many of the life experiences that could allow them to empathize. 

Employees can be taught to empathize through training and coaching. Ironically, one of the qualities younger employees need from their supervisor or customer service trainer is the ability to empathize with being young and inexperienced.

Great customer service isn't obvious
Businesses often fail to provide customer service training to their frontline employees because great customer service seems obvious to business owners, managers, and supervisors. Unfortunately, the steps to providing great customer service may not be obvious to your employees. (Check on my previous post on the subject.)

Younger employees who lack on the job and life experience may have the most difficult time figuring out the right thing to do. Leaders should set clear expectations for customer service and then provide all employees with the required training, tools, and resources to meet those expectations. They should also be especially patient with younger employees who are learning on the job.