CUSTOMER SERVICE IS IN THE EYE OF THE BEHOLDER by Ed Carter Here are a couple statistics that bring this topic into perspective. First, a 1992 Ohio State University study found that six of the top ten "keys to a competitive advantage" were related to customer service. Second, depending on who you believe somewhere between 70 and 90 percent of all new businesses fail in the first five years. To me, the correlation is clear...customer service either sets you apart from the crowd -or- it kills you! SO, WHAT IS CUSTOMER SERVICE? When you say the words, what images spring to mind. Many people conjure up a mental picture of the proverbial "complaint department". In many companies a customer service rep. is still an euphemism for "sales clerk" or worse, for "order taker". So, what does "customer service" really mean? My definition of customer service is this: "ANYTHING AND EVERYTHING THAT YOU CAN DO TO MAKE THE CUSTOMER MORE SATISFIED - WHETHER RELATED TO YOUR ORIGINAL PRODUCT OR SERVICE BEING SOLD OR NOT". Sounds good...lets print up a poster to that effect, tack it to the wall and go on about our business, right? - WRONG! Look a little closer. What's this ANYTHING AND EVERYTHING? Every business will have a different "anything and everything" (sorry, there's no magic potion). On the other hand, if you look at the companies doing a good job - you'll see a pattern. Let me give you a few examples from the Fortune 100. WAL-MART. Why do you suppose WAL-MART grew at an incredible rate through the 1980's while similar chains like K-MART had trouble. I'm sure there are many reasons, but the one most frequently cited is customer service. If you've shopped at WAL-MART, you've seen at least part of the answer. There's always a clerk looking for ways to help shoppers (not just answering questions when asked). However, customer service means more than just brand advice and in- store directions at WAL-MART. When Sam Walton came to town a few years back, I had the opportunity to see him in action. I figured: a big CEO in town for a store dedication - he'll breeze in, make a few remarks to a management team and be back on his way to Arkansas. Not so! The first thing he did, was to walk around in the parking lot greeting customers. Then he and the staff all disappeared for their ceremony. A few minutes later, he and the managers all reappeared with note pads in hand to stand at the checkout line. They were interviewing customers - not just to find out what they bought, but to find out what they might have bought (if it was available) and what else could the store do to make it easier for customers to shop there. Literally, his trip was less about a store dedication than learning about the Columbus customers. Two lessons can be learned from this example: 1) There are clerks that are passively helpful and then there are clerks actively seeking to be helpful (which do you prefer). 2) Seldom do you meet a store owner who asks "what don't I have" or "how can I improve the store"...when you do, you'll remember. ROSS LABS. I had the pleasure of working for Ross Laboratories a few years back. They do some great things when it comes to customer service. One good example of Ross service also involves WAL-MART. WAL-MART is a major account for Ross. So, naturally Ross wants to know exactly what they want and when they want it. You might think, well the salesman calls regularly or makes a lot of telephone calls. No, Ross has assigned two people to live and work at WAL-MART headquarters permanently. These people read the register data as it is sent nightly to Bentonville Arkansas from the stores all over the country. Not only do they read the data, but they act on it. Ross has told WAL-MART, you don't have to manage inventory of our products - we'll keep track, make sure you don't run out, make sure that each store gets replenished just in time (so you don't waste store space) and you only pay for what you sell! Another of my favorite Ross examples is what they call "logistics consulting services". Ross has a class of small customers called DMEs. These are very small companies typically. Ross realizes that these companies don't have the same resources Ross does and so provides them with free consulting to improve the operation of their business. They send in Ross experts for a couple days to gather data and come back a few weeks later to: streamline paperwork, help to computerize procedures, recommend warehouse layouts, etc. ALL FOR FREE! Do either of these examples sell more Ross product. Maybe...maybe not, but the customers (both large and small) are sure going to think twice before going down the street. RYDER. Not the big yellow rental truck division, but an offshoot - Ryder Dedicated Carriage Division. This division acts like a trucking company to move freight for a customer on a contract basis. XEROX is one of their major customers. A few years back, Ryder suggested to Xerox that it seemed silly for them to have these small offices all around the country. Each office had a warehouse, technicians, training and sales staffs. Ryder had to deliver the copiers anyway, so they proposed that Xerox train their staff to install, set up, and train Xerox customers in the use of the copiers. This eliminated the need for Xerox to: warehouse copiers all over, have an installer follow the Ryder trucks to install the copiers, have trainers follow the technicians to set up the copier and train the customer. This concept has evolved to the point where Ryder is also doing at least some of the service calls now. In this case, there is some sort of cost for the service. However, the point is how many trucking companies offer to help cut your cost by doing this type of thing. The key is that they are building a relationship and looking for ways to serve the customer better. As you can see, this is a gray area. Good customer service truely is in the eye of the beholder. It may mean many totally different things to different customers. To some it will be getting product when they want it, to others it means selection, advice, add-on services, etc. etc. etc. The key is: -KNOWING WHAT THE CUSTOMER WANTS AND NEEDS (often before they do). My number one, grade A advice is to learn and re-learn your customer. Do a survey, use a focus group, grab a note pad and stand in the checkout line. Whatever it takes to figure out a customer's needs and wants - DO IT! Once you've started this practice, customer RELATIONSHIPS build naturally. From there it's only a matter of creativity and persistence to setting yourself apart from the crowd of competitors! --------------------------------------------------------------------- Ed Carter is President of "PC Support Team, Inc." a computer consulting firm specializing in the needs of small business. PC Support Team offers clients need consulting, hardware/software training, maintenance & support services, hardware repairs, and upgrades. We provide small companies the "solutions and support" to run their business more effectively. Internet: pc.support@uni.com. --------------------------------------------------------------------- UNICOM Information Services.