May 20, 2012

Customer service and fat-free mayonnaise

Customer Service and Fat-free Mayonnaise
By Mel Copen June 28, 2001
© Mel Copen, June, 2001

I like mayonnaise! The real stuff is by far the best. But, unfortunately, reading the label can result in real “sticker shock” – one hundred calories per tablespoon, every one of which comes from fat. With great reluctance I have learned to compromise, adapting to the low-fat 25-calorie version, only 10 of which are derived from fat. I’ve tried the fat-free versions, but it just doesn’t work. To me, without any fat content, the white “paste” is tasteless. Thus the only reason that I can see for using it is for the sake of appearance, and although I might fool someone else, hard as I try, it is impossible to delude myself into thinking that I am actually eating mayonnaise.

A few weeks ago I took a plane trip from Atlanta. I was assured that I had received the window seat that I had requested. When I boarded the plane I discovered that my seat was in the very back row. Aside from the fact that it was as hard as a wooden bench, did not recline and the leg room was ample only for someone under 5 years of age, there was no window. I sat up against side of the plane, serenaded by the noise and vibration of the engine that was located just outside where the window should have been.

The plane was full, and there was no where else to move. My wife, a step ahead of me, volunteered to let me use an extra set of earplugs she was carrying, but I consoled myself with the fact that it was a short flight and that nothing would happen to me that a good physical therapist and otolaryngologist couldn’t fix. Rather than stare at the wall where my window should have been, I decided to read the conveniently provided airline magazine, no mean feat given the missing window and and poorly focused reading light.

The first thing I saw, upon opening the magazine, was a warm letter from the President of the airline, informing me how important I was as a customer, how much everyone wanted to make sure that my trip was safe and comfortable. Another entire page told me how pleased they would be to get my feedback. It provided an email address which I used once I got back home. I suggested that the airline might eliminate this back row and use the extra space either to provide more legroom for the other rows or for extra storage of carry-on luggage. At the very minimum, I felt that they should inform people that there is no window and let them know what they are getting into, perhaps charging a lower fare (horrors) to anyone willing to endure the ordeal.

I got a response. It apologized for any discomfort and stated: “It is our intention to provide all of our customers with a safe and comfortable flight.” As for the issue I had raised, it suggested that “for future travel you may wish to arrive slightly earlier than recommended ” so that I could get a better seat. It also mentioned that I consider upgrading to its “affordable business class service.”

I had just been served fat-free mayonnaise!

I responded to their email, expressing disappointment with their reply and indicating that the policy to relating to customer concerns has meaning only if action is taken to resolve problems that are brought to their attention. Arriving earlier to get another seat only transfers the problem to someone else. If it truly was their “intention to provide all of [their] customers with a safe and comfortable flight” they should do something to remedy the problem, not just pass it around.

The result: a message from the email system indicating that my response could not be delivered. The address the use to respond to customer complaints was not designed to receive incoming mail.

Too many times companies just go through the motions, working on a type of “pyramid” theory. If they provide channels to respond, they look good, and only a small number of people will use them. Then if they provide a standard, non-response to those who do respond only a small portion of the recipients will be upset. And by that time they have reduced the field to a negligible population, without having to do anything meaningful. Clark Howard recently indicated that much of what has happened is a function of economics, citing costs of $30 or more to answer a telephone call vs. less than $1 to handle complaints via email. But if the email does nothing, then why bother – yep, more fat-free mayonnaise.

That same trip highlighted another type of non-service issue. There are two baggage pickup locations at Hartsfield, depending upon which airline you fly. One maintains security, requiring you to show your claim check before you leave the area. The other now has none. Why? The airline that controls the latter applies another twist on the “pyramid” theory. Few bags are likely to be stolen. And for those few that are, the cost of compensating customers is less than the cost of maintaining security. And as far as the airline is concerned, the time spent by the passenger and the loss of belongings is a cost that they, the airline, are willing to accept.

Coincidentally, also on that same trip I was carrying a recently purchased digital camera, manufactured by very respected European company. The camera, still under warranty, was faulty. A telephone call was answered promptly and courteously. I was given instructions where to send the camera. Less than a week later a new camera was delivered to my home. This was the real thing! No fat-free mayonnaise here!

There is an interesting contrast here relating to frequency of “purchase.” From a purely economic point of view, you might think the patterns might have been reversed. In the airline cases, the likelihood of repeat business is high – people fly frequently. Treating a customer kindly should raise the chance for repeat business. Conversely, people don’t buy expensive cameras very often. The difference is in the philosophy of the organization, the latter being concerned about a total quality image – encompassing both products and service.

Not too long ago a senior executive of a software company explained to me his company’s policy of charging for technical support from customers – “We need to keep our costs down to be competitive. If we built service in, we would have to charge more for our product and we would lose ground to our competition.”

A well-run organization should focus on cutting costs. But eliminating customer service is only possible if customers are willing to accept it. And that’s the essence of the message. The “real thing” is not always possible or desirable. But there is a middle ground, and there is no reason to settle for the fat-free version. We need to become more active in voicing concerns and in taking action to reinforce them. Too many of us just grumble and do nothing on the assumption that “that’s the way it is.” That’s not the way it has to be, but it will become so if consumers do not actively make their positions known. I am convinced that there are enough enterprising business people out there who will respond to the “call” if the message is loud and clear enough!

Become your own customer

BECOME YOUR OWN CUSTOMER
By Mel Copen August/27/99
© Mel Copen, August, 1999

Imagine the following. You have just tried to attach your new VCR to your TV and find that the instruction booklet is missing and that you can’t get the recorder to work. You call the store from which you purchased the device. Their response: “we will have someone at your house within two hours.” An hour later a technician appears and discovers that a special adapter is needed because yours is an unusual TV set. Thirty minutes later, after returning to the store, he is back with the adapter and the VCR is working fine. He thanks you for your business, apologizes for the fact that his store had not asked about your TV set and for the inconvenience and reassures you that if there are any further problems, a telephone call will bring a similar response. No charge. A great fairy tale?

The United States has become the greatest service economy the world has ever known. We started as an agrarian nation. However, we became more and more efficient in producing agricultural products, allowing resources to shift to manufacturing. Then as our factories became more productive and as other nations began to provide the goods we need, those resources shifted to the service industries. Today, substantially less than 5% of our population not only provides the food we need, but generates a substantial surplus for export and approximately 80% of us work in service businesses.

Although there are a few industries where this doesn’t hold true, overall, we are the world’s most efficient producer and distributor (measured in terms of productivity) of agricultural and manufactured products – far more so, for example, than Japan or Germany. Research and managerial efficiency have been two key factors that have allowed us to shift our focus to the services. And now we seem to be trying to apply those same “productivity principles” to the services. But the result does not always seem to yield the same positive effects.

Wouldn’t it be nice if the story in the first paragraph were true? But it is. This is what happened when I first bought a VCR while living in Japan. The only exaggeration – there was a manual – but being written in Japanese, it was just unintelligible to me. Contrast this experience with what many of us have come to expect.

You have just purchased a gizmo from Super Electronics Service Center and it doesn’t perform as you expected. First a call to the store. Probably a recorded device informing you of the store hours. After several attempts you finally get a number that gets you to an operator who refers you to the service department, putting you on hold. You listen to recorded music, ads touting the great service provided by the store, or unending silence – followed by a dial tone. After several more attempts you get through, only to be told that you must contact the manufacturer’s technical support group. Now you have the added pleasure of going through a layered automatic answering system. The first layer gives you 6 options, the second layer another 4 and by the 5th layer, you have finally been routed to the service person, only to be told that “due to unusually heavy activity, all personnel are busy and you must call back at a later time. With mounting frustration, you persist. Finally, success! A live human. After listening to your problem, the conclusion is that the problem sounds like one caused by an interface problem and you are referred to the technical support number of the interface provider. By now, if you are like me, you are ready to throw the whole danged thing through the nearest window. Try to ask to speak to someone in charge. The typical response – “I don’t have that information.” Or “we’ll have someone call you back” – which seldom happens.

What is going on here? People aren’t malicious, although it may seem so at times. At least two things are taking place: 1) the service concept is being “productivity-ized” – but from the viewpoint of the provider, not the user; and 2) the concept is being “depersonalized,” resulting in a minimization of human contact.

There is little question that it is much more efficient (from the viewpoint of the “service” provider”) to use a layered automated answering system than to have a human answer the call. It’s nice and neat – in theory, gets the call to the point where the matter can best be addressed. However, it is not always as simple as that. In many cases, the options for the caller are not clear, and very often, the result is less than satisfying. The key question is “who is being served?” Can “productivity in a service industry be defined with the same measures as apply in the other sectors?

The second factor may be even more critical. There is substantial evidence that you will get help faster from a passing stranger if your car breaks down on a less traveled road than on a super highway. In the first situation, it is clear to a passer-by that the options for help are few, and people feel a sense of responsibility. In the latter case, there are so many people that it is easy to assume that “someone” will help – and frequently one has to wait for the police or for services that have been specifically provided for that purpose.

When you talk to an individual who cares, things start to happen. In this ever increasingly complex world, we are more and more dependent upon each other for information and support. Yet we seem to have created an incredible number of systems that reduce interaction, depersonalize relationships and reduce incentives for people to assume responsibility.

Part of the problem comes from a willingness of the user to put up with poor service, particularly if price is the primary motivating factor. Higher service levels sometimes require higher costs. If one is not willing to pay that cost, the impact is double. Not only will the user not get the level of service desired, but other organizations, in order to compete, will be forced to reduce their service levels accordingly. However, good service and high cost are not necessarily linked. For example, there are retail stores that build their reputation on service and still match low prices– we all know a few of these. We wish there were more.

Another part of the problem comes from the people who make the decisions for service providers. Efficiency and productivity are viewed from the supplier’s perspective, and unless adequate customer feedback is received, there can be substantial gaps between perceptions and reality. And many of these decision-makers do not use the services they provide: airlines executives who never call for reservations, fly on non-refundable tickets, or sit in coach; computer executives who never access their own technical support numbers to get help when they have a problem; restaurant owners who don’t have to wait in line for an hour and a half to eat because they refuse to take reservations, etc. etc.

Last week I was on a plane sitting next to a fascinating man who was responsible for 4,000+ outlets of a well-known retail chain. In the course of conversation, we swapped stories of service frustrations. When I asked about his own stores, he described some very enlightened policies. I asked – “have you ever tested these?” “What do you mean?” “Well, for example, have you ever purchased something from one of your stores and tried to return it to see if your return policy works?” “No” was the answer. “How do you know your policies are working?” “Hum, I never thought about doing that. – I guess I don’t know.” By the end of the flight we had established a very cordial relationship and I had promised that we would both buy something form one of his stores and try to return it at another and would compare results.

How can we improve the level of service and get the human factor back in? The answer is by not accepting standards below expectation but by voicing opinions when service is not up to standard – and obviously, by going where the service is good. And for those of you who read this and are service providers, please – become your own customer and see if you are setting a standard that makes you proud. More than anything else, a service economy needs to rely on the pride and sense of responsibility of the service providers. This is also a way to relieve a good bit of the tension that currently exists in our society and make daily life more rewarding for all.

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