Throw Customer Satisfaction Out Of The Window
"You Must Have Satisfied Customers Or You Can't Build A Business"
This was a title of a book that really aroused my curiosity. I spotted this book at the Mumbai Airport. I was a bit dazed to see this book. 276 pages of advocating a statement that I've disagreed with in all my 'sales-training' programs.
The reason I've disagreed with the "satisfaction" joke (It is a bad joke at that) is that every company on this planet hopes that their customers will keep buying from them. Everyone hopes that their customers will spread the 'word of mouth' on how great our products or services are and how wonderful it is to do business with us. Every company therefore hopes to capitalize on this 'good feel' and encourage more people to do business with them.
This isn't customer satisfaction. This is customer LOYALTY.
So I bought the book. I was really curious to know what the author thinks. How will he prove me wrong? He didn't. At least I am not convinced. I am not trying to criticize the book here, I do think it's a good one. There are plenty of interesting ideas in there. However the 'title' isn't apt.
The author stresses on the importance of promptness - Fixing something that has gone wrong instantly. This leads to satisfaction. I agree it does. So what is the problem? The problem really is that 'Satisfied' is the lowest level of customer service. Any 5-Star hotel in the world will guarantee satisfaction. They can fix in moments, something that has gone wrong. They can provide you within seconds, anything that might make you more comfortable - from a hair pin to a computer. They will ensure and hence guarantee satisfaction. CAN they Guarantee LOYALTY? In spite of their 'loyalty programs' much on the lines of 'reward airline miles' they cannot claim loyalty.
You may say that satisfaction leads to loyalty. I can guarantee with absolute certainty that you have plenty of customers that are never satisfied (fully) but still remain loyal to you.
The real measure of success is Loyalty. I don't think you in your customer relationships should care about anything but these two things:
1- Will they do business with me again?
2- Will they refer me to another client?
Thats the only real measurement of success.
The real silliness of satisfaction can be found in the airline industry and telecommunications companies. JD Power gives awards for customer satisfaction, and the companies they give them to, put big banners up on the wall, proclaiming victory. These airlines, as per the most recent, civil-aviation ministry statistics, lose 20% of their customers annually and have the highest number of complaint numbers of any business in the world.
You must understand what drives loyalty. Corporate mission statements talk about exceeding customer's expectations and shareholder values etc. I have yet to come across a mission that speaks about loyalty. The reason well might be that it is much more difficult to achieve and requires a huge commitment from senior managements on service. Some people believe things like airline miles might drive loyalty. Well, that is forced loyalty and does not sustain. The only essence of REAL LOYALTY is perceived value combined with memorable service (not mere satisfaction).
Heres the secret: Loyalty breeds Loyalty. Loyalty has to be given before it is achieved. The companies must be loyal to its executives, employees, product quality and service excellence. They must invest in loyalty. If you aren't loyal to your employees, they will not be loyal to your customers and vice-versa, Simple! Ask companies like Nordstrom. Ask anyone who leads their field, and they’ll all tell you “Great service breeds customer loyalty. 'Satisfaction is the lowest measure of 'great service.' I'll quote an example written in one of my previous articles.
Father wanted to buy a pony for his little daughter. There were two ponies for sale in his town. Both equal in all aspects. The first man told the father he wanted Rs 5000 for his pony – gave him a list of satisfied customers with their contact numbers. They all tested positive. But the second man was selling his pony for Rs 7500.
The second man however told the father he wanted the daughter to try out the pony for a month before he has tomake any buying decision. He offered to bring the pony to the father’s house with a month’s stock of hay to feed the pony. He said he’d send out his own stableman to show the little girl how to groom and care for the pony.
Finally he said that at the endof 30 days he’d drive over to their house and either take back the pony and clean up the stall – or ask to be paid Rs 7500.
Which pony do you suppose thefather decided to buy for his daughter. Obviously, it was no contest.
If you concentrate on making your customers win, on helping them and on creating a service culture rather than a sales culture - Loyalty and Sales will happen automatically.
Here are a few ideas to incorporate loyalty:
1- Identify reasons where customers expect 'service' and not corrective 'satisfaction': Example: "I expect the airline to be on time, not some good food when it's late"
2- Remove barriers that prevent people from reaching you: 'Voice mail. automated systems for customers (like bank call centers), half-cooked website where they cannot reach you in person 24 hours.
3- Call your most loyal customers, top 5 or 10: Ask them why they are loyal to you. I guarantee surprises.
4- Check Loyalty within your company: are people loyal to the organization. Real measure of this: are they referring their friends or acquaintances to work with you????
5- Have a retreat with your people and generate ideas that will make it easier to do business with you.
6- It all must start at senior management level - otherwise forget you ever read this article.
7- Get rid of measuring your success by sales targets. They are stupid numbers. Measure repeat business and unsolicited referrals. Satisfaction is also easily measured - Just do a quick count of customers lost to competition. Someone offered them better service.
yours,
Chetan Walia
* Pony example quoted from a Jay Abraham's marketing book.
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