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Jeanne Bliss' Blog

2 Posts tagged with the airlines tag

Companies who have grown in this economic downturn did so because their customers become an army of advocates who grew their business for them.  They made decisions in business that were congruent with the decisions they would make in their personal life – in other words, golden rule decisions.  They “earned the right” to their customers’ rave and the growth that ensued because they deliberately made decisions that moved their operation in the direction of their customers and employees.

 

Here are ten resolutions companies should follow in the New Year to move toward earning financial business prosperity and “beloved“ status in the eyes of their customers:

 

1. Believe in the integrity of your customers.

The majority of business policies and rules are created to protect business from the minority of customers. Be bold, like Connecticut Griffin Hospital who began sharing hospital records with patients and saw claims against the hospital drop by more than 43%!  Take a leap of faith and believe that trust is reciprocated by customers when they feel that you trust them. Find one rule or policy to relax and watch what happens.

 

2. Invest in employee trust.

Show your employees that you believe in them. Beloved companies Wegmans and The Container Store invest in their employees by training them in the skills that remove rules, regulations, policies and procedures that pen employees in. This enables Wegmans to throw away the rule book and live by this: “no customer goes away unhappy.” As a result their margins are higher and profitability more steady because they turnover only 7% of employees versus the average in their industry of 19% employee turnover.

 

3. Practice democratic decision making.

Make sure the best ideas of your company have a way to see the light of day. Give good ideas a chance to prosper no matter what rank they come from inside your organization chart. Innovation and marketplace differentiation comes when employees are respected as part of achieving a mission greater than their set of tasks, and that their voice counts. W.L. Gore has become a $2.7 billion dollar company; named by Fast Company as “pound for pound, the most innovative company in America;” and earned a place on Fortune Magazine’s best companies to work for list since its inception because of how they unleash the spirit and ideas of its people.

 

4. Grow and invest in customers as a primary asset of your business.

Talk about customers lost and gained in real numbers, not percentages, to bring home the vast number of lives your business impacts. Understand what drives customers out your door, and begin the relationship by investing in your customers by realizing their long term potential. Zane’s cycles in Connecticut has experienced 23% Growth every year for 29 years, with 45% percent margins because they never lose sight of the fact that their average lifetime value is $12,500. And they manage relationships bearing that in mind. Valuing customers makes it easy to make decisions about how to treat them.

 

5. Know your power source for bonding with customers.

Regularly connect with customers as they experience your products and services. Surveys and reports are great – but the beloved customers are also avid “customer watchers.” Take a page from Trader Joe’s who use employee taste buds at their testing kitchens to determine what items should first make it to their shelves, but employ customer “tasting stations” inside their stores combined with sales to determine what items stay.  This closeness contributes to Trader Joe’s ability to generate $1300 in sales per square foot – twice the supermarket industry average.

 

6. Have clarity about how you uniquely serve customers’ lives.

Unite your operation to ensure that decisions connect to deliver an experience customers want to repeat and tell others about. This ties cross-silo decision making together and releases the organization from excess bureaucracy.  IKEA for example, designs the price tag first because they know that they serve customers who have less money in their pocket than sweat equity to put together their items themselves at home. Across IKEA, the understanding that the price drives design, innovation, and what they will and will not do drives their growth…sales that increased even in 2009 by 7.7 percent.

 

7. Deliberately walk in your customers’ shoes.

You need to know your customers’ life to serve their life. Yet as people rise through the ranks or even join organizations, orientation is often more about process and policy than learning about the customer at the heart of the business. Be deliberate in establishing a process for new hires, such as USAA, who require new ‘recruits’ to wear the flak jacket, and helmet many of their enlisted customers wear and to read their letters. All this is done so that at USAA when calls come in, they begin with connecting with the customer first then the process of the business second. 98% of their customers stay with them year after year.

 

8. Hire partners – make employee selection one of your most important decisions. 

Select your employees as you would customers – for lifelong value. At Chick-fil-A, operators and employees are selected based on their values, ability to build grow and sustain partnerships in all areas of their lives, and then their technical skills.  As a result, Chick-fil-A has operator turnover of just five percent, and they just achieved 43 years of consecutive sales growth.   Hire people who you want to become a part of the story of your business and then watch how your social media story improves.

 

9. Proactively solve mistakes when they occur.

When mistakes happen (and they will) get out in front of customers and admit the flaw – then make peace with your customers. Repair the emotional connection, reduce the concern, and solve problem. Southwest Airlines reviews every flight every day to know when they interrupted their customers’ lives, whether it was their fault or not. And they contact customers to explain what happened and when warranted send out LUV bucks for a future flight. Being proactive earned them a net revenue increase from those bucks of $1.9 million in 2010.  What can you be proactive on?

 

10. Accept the order and the accountability.

In a world where customers are holding a megaphone in their hand where they broadcast on the internet the experience you are delivering, invest in reliability. Don’t make the customer wonder where the order is, how long ‘til it gets there or what happens when it backorders. If a customer can’t tell another customer what they get from you, how they get it or how it feels when they receive it, they you don’t have a story to tell (at least one you want heard). Invest in reliability…earn the right to grow.

 

Beloved companies never lose sight of the people affected by everything they do. Their reward is an army of beloved customers who urge friends and colleagues to try these companies and embrace them as well,” notes Bliss.

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It’s a given, at some point your business will suffer a failure that disappoints customers. How your company reacts, explains, removes the pain, and takes accountability for actions signals how you think about customers, and the collective heart of your organization. It has been proven that a genuine apology strengthens the emotional connection that a customer has with a company. Being human and prone to making mistakes, we’re in luck. We have the opportunity regularly to make amends. There’s a difference between the way an “everyday” company decides to make amends and the manner in which a beloved company (one that customers grow) decides to make amends…


Apology Decisions that Drive Business Growth (in good times and bad):
Here are five recent decisions that beloved companies have made on how to decide to earn back customers’ good graces when a misstep occurred. They are five apologies to bolster your faith that business can connect commerce with humanity … and win!


Decision #1. Netflix, the DVD-by-mail service with 10 million subscribers, prescribes to decision making that “honesty is the best recovery.” They let ALL of their customers know when something goes wrong, not just those who experienced the occasional interruption in service. In fact, on August 31, 2009, Netflix emailed a large number of its subscribers to apologize for an Xbox Live streaming outage that occurred the day before. Netflix emailed everyone that could have possibly seen this blip in their service and offered a refund—including users who didn’t suffer through it at all.


The question is: Do YOU confess to customers when a misstep occurs in your operation? Is this when you show your true colors?


Decision #2. The University of Michigan Health System decided to enable doctors, nurses and all hospital staff to exercise their natural instinct and to say “sorry” when something went wrong. An early adopter of a process that encourages transparency with healthcare providers and patients and their families, the University of Michigan encourages (without fear) a swift and caring explanation, and when appropriate, a heartfelt apology. Doctors and lawyers worried that this level of transparency and just uttering the words “sorry” would drive an increase in claims and malpractice suits. But when put into practice, the complete opposite occurred.


The question is: Can YOU suspend the fear and say “We’re sorry?”

Are you able to table the corporate response and deliver one that connects on a personal level?


Decision #3. Saying sorry well in most cases should not require a committee, consortium or legal review. Most apologies should occur spontaneously, the moment the company knows a problem occurred. And the person who first hears the news should be in a position to respond appropriately. L.L. Bean’s guarantee frees their frontline to do the right thing. It keeps them close to their small-town company culture, “Sell good merchandise at a reasonable profit; treat your customers like human beings and they’ll always come back for more.” True to those words, L.L. Bean’s frontline is trusted to take action, using their own best judgment to deliver a response warranted by the situation.


The question is: Can YOUR frontline rescue customers? When an unhappy customer contacts you, does your frontline have “permission” to do the right thing?


Decision #4. Southwest Airlines proactively says “sorry” to its customers every day. Each morning a group assembles to learn about passenger experiences the previous day and to anticipate passenger experiences in the current day. BEFORE customers contact them, Southwest reaches out, acknowledges any mistakes and extends an olive branch commensurate with the experience the customer encountered. A customized letter is created for each incident. Written with humility, remorse and whimsy when called for, this uniquely “Southwest” rigor won back $1,900,000 of return flights from customers in 2009.


The question is: How proactive are YOU? Do you have a recovery plan to wow customers when things go wrong?

 

 

Decision #5. Vancouver based home health care company, Nurse Next Door was born when the owners, struggling to find appropriate caregivers for their aging parents, became fed up with company after company making errors in service. Frustrated with their lack of options, they started Nurse Next Door, and decided that any errors in service would be promptly addressed with a sincere and heartfelt apology. When they slip up, Nurse Next Door sends a freshly baked “Humble Pie,” along with a note that says, “We are very humbled by our mistake and sincerely apologize for the poor service.” Nurse Next Door thrived in 2008, experiencing an increase in client growth over 25 percent. John DeHart, one of the owners, estimates that the company spent $1,500 on humble pies, but saved about $100,000 in sales.


The question is: Is your humility oven lit? Can you bake a humble pie? Acknowledging a mistake shows that you’re human. Admitting it is hard. But it’s what customers crave. Do you have the DNA to say “sorry” and mean it?


Go try this

 

  1. Every day, or at the end of each week, bring your folks together to discuss what experiences disappointed customers. Reach out personally to those customers and acknowledge what went wrong and extend an "olive branch" to right what went wrong.
  2. Inventory all the common glitches that sometimes get in the way of a great customer experience. Proactively create and prepare the actions as a "hero kit" that your folks can have readily available to deliver. Let them decide which is best for each situation.
  3. Follow up with your customers who have experienced your gesture of apology. The follow up will seal in their memory that you were genuine and that you are a "company to keep."

 

 

Beloved companies don’t consider the job done until the emotional connection with customers is restored. Why do they decide to apologize in this manner? Because it’s the right thing to do. Our mothers told us that when you hurt someone, intentionally or not, you apologize and you mean it. You right the wrong. You make peace.

 

(Editor's note: You can watch Jeanne interview leaders from several beloved companies, including Fred Taylor, Jr., head of Proactive Customer Service Communications at Southwest Airlines, in this video from the Net Promoter Conference in New York, February 2010.)

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