Why customer service isn't always obvious

The video below contains a simple observation exercise. I encourage you to watch the short video before reading the rest of this post (it's less than 90 seconds long). (For my email readers, here's a link.)

Researchers Christopher Chabris and Daniel Simons found that only 50% of people notice the gorilla in the video the first time they watch it. Why? A strange phenomenon called inattentional blindness where our focus on one thing causes us to miss something that would otherwise be obvious.

I recently saw an example of this first hand when dining at one of my favorite local restaurants with my wife and her parents. The restaurant was very crowded so the only open table was tucked into a corner in the back of the restaurant. Unfortunately, we hardly saw our server after she took our orders. Our water glasses sat empty, we finished our meals before we had a chance to order a few cocktails, and she took a long time to bring our check. From our perspective, it was obvious that she should have paid more attention to us.

So, what could have gotten in the way? I observed a few things that may have caused her to unintentionally neglect our table.

• Our table was tucked away behind a wall and out of sight from the rest of her section.
• A large group was seated in her section just after we arrived and it was quite a production to take their orders, bring them drinks, etc.
• Our server carried only one plate at a time in each hand, even when picking up dirty dishes, hinting at a lack of experience in restaurant service.

If you imagine we were out of sight on a busy evening with an inexperienced server who was trying to keep all her tables straight, you can understand why we might have been forgotten in the frenzy.

A great question to ask about your own employees is what might be distracting them from seeing obvious customer service opportunities?

Does tipping improve customer service?

The short answer is not really. The longer answer raises some interesting questions about customer service from tipped employees.

It is estimated that the impact of tipping on service quality is less than 2% in restaurants (Lynn, 2003). One of the main reasons is there are a lot of other factors that contribute to what customers tip.

Custom
In the United States, it’s customary to tip between 15% and 20% for restaurant service. This custom tends to bunch tips into this range.

Tips are based on the bill
Most people tip based on the total bill, which means you’ll tip more for the same meal if you order an expensive bottle of wine rather than iced tea, even if the service quality is the same.

Only exceptional service stands out
We only tend to notice truly outstanding or truly poor service. Unless our experience lands in one of those two categories, we’re likely to revert to our customary percentage.

These factors can also apply to other tipping situations such as shuttle drivers, valet parking attendants, and even your hair stylist. The tip is often determined by custom and/or the size of the bill unless you receive exceptionally outstanding or poor service.

Hidden dangers
Tipping can provide incentives for poor service if not carefully managed. Here are a few examples:

• Employees may reduce their service quality if they believe a customer will tip poorly.
• Employees may focus on behaviors that lead to tips at the expense of other tasks.
• Cooperation and teamwork may suffer if employees become too focused on earning their own tips.

So, get rid of tipping, right?
Not so fast! Instituting a no tipping policy is by no means a panacea for service quality. A San Diego restaurant called the Linkery received a lot of publicity for implementing a flat service charge in place of tips, but their current Yelp rating is 3 out of 5 stars. (Check out the Linkery’s explanation of their no tipping policy.)

Service is Service
The lesson I take away is that people who manage tipped employees should pay careful attention to customer service issues, just as they would if they managed employees who didn’t receive tips.

Laptop hostage crisis resolved, suspects still at large

On March 4 I sent my new Lenovo laptop computer back to the manufacturer for a warranty repair.

What followed was a grueling test of patience as Lenovo took my computer hostage for nearly a month. There was no ransom request. They never warned me not to go to the police or my computer would “get it”. They just stalled and stalled. I even developed a mild case of Stockholm Syndrome for the friendly, yet un-empowered customer service agents who took my 10+ phone calls.

My computer was finally returned unharmed and in good working condition on March 28, but I still would like to see the executives responsible brought to social media justice.

The backstory
I bought the Lenovo laptop in December to use as my primary work computer. In February, it developed a problem where the display would suddenly crash. I made several attempts to fix it but the problem only got worse so I finally called tech support.

The only option I was given to repair the computer under warranty was to ship it to Lenovo’s Memphis repair depot. Once there, Lenovo sent me an email stating that the part required to fix my computer was backordered. No expected repair date was given, so I called. And called. And called. I made at least 10 phone calls to get an update on the status of the repair or try to get an alternative option such as a replacement computer.

Every representative I spoke with was polite, friendly, and professional. It was also clear they had very little information to work with. I kept getting a version of the same answer, “We’re looking into it, but we don’t know when your part will be in.” And, “There are no other options.”

Unresolved problems
My primary problem has been resolved. My computer is now back in my hands and appears to be working fine.

However, Lenovo never addressed any of the other problems this situation created.

• The disappointment of having a new purchase fail to work properly.
• The loss of time and productivity due to my attempts to fix the problem.
• The loss of time and productivity from being without my computer from March 4 to March 28.
• The loss of time and productivity from making at least 10 calls to try to resolve the problem or at least get a status updated.
• The frustration of having to deal with this whole mess!

If Lenovo keeps any records on customer service, I’d wager they’d check this one off as “resolved”. I definitely beg to differ as I take Lenovo off my company's “approved vendor” list.

Another last to first customer service merger

My relaxing Sunday was disrupted by news that AT&T it is purchasing T-Mobile USA from Deutsch Telecom. Ugh.

I've been a loyal T-Mobile USA customer for a number of years after fleeing AT&T's terrible customer service. The worst part is AT&T has continued to stalk me like a psycho ex-girlfriend (see that post).

This is another example of a company whose service I despise purchasing a company I enjoy doing business with. T-Mobile currently holds the #1 spot for customer service ratings with both J.D. Power and The American Customer Satisfaction Index. AT&T, on the other hand, is tied for last in J.D. Power's rankings and holds last place by itself in the American Customer Satisfaction Index.

The last example of one of a service nemisis taking over a decent company was United Airlines buying Continental Airlines last year. (See: United Airlines will get bigger, ruder, and less efficient.) When that was announced, I walked outside and looked up at the sky while shaking my fist and screaming, "Noooooooooo!" (To be fair, commercial airliners regularly fly over my house.)

So now what? Will T-Mobile's outstanding customer service somehow rub off on their new owner? Not likely. Something tells me my future involves a switch to Verizon.

Is it time to get rid of annual performance reviews?

Employee performance reviews are an annual tradition in many companies, but I don’t know anyone who looks forward to it. Employees are often surprised and frustrated by the contents of their evaluation. Managers spend countless hours writing reviews only to experience the added stress of dealing with demotivated employees. Human Resources professionals struggle to keep the whole process moving forward while getting bombarded with complaints from managers and employees alike.

Why do we keep doing annual reviews if nobody’s happy?

I recently posed this question to a group of my human resources colleagues. The universal sentiment was that annual performance reviews could be extremely valuable if done right. Otherwise, they become a huge drain on time, resources, and employee motivation.

It turns out that “done right” is a very big IF. A 2010 study by Sibson Consulting, Inc. and World at Work revealed that 58% of human resources executives give their performance review process a “C” grade or worse. I doubt many executives would keep a manufacturing plant, a product line, or a company division that performed at a “C” level or worse year after year. How do performance reviews manage to stick around?

The promise is clearly there. Performance reviews can help determine who gets a raise and how much. They can help companies pinpoint opportunities for individual, team, or organizational development. The evaluation process can be used to help employees set goals for the coming year. Reviews can even provide solid evidence for handling performance problems.

To quote sports personality Jim Rome, "Give me an A or give me an F." My suggestion to organizations is to make a clear and unambiguous decision. Either commit to strengthening the annual review process so it achieves organizational, managerial, and employee objectives or scrap it all together.

Note: Toister Performance Solutions offers training and consulting services to help clients make the most of their employee evaluation process. Please drop us a line if you'd like to go for an A.