No Service, No Profits; Know Service, Know Profits

Vacation periods should teach all in business one important lesson. Customer service never goes (or must never go) on holidays.

Anecdotal evidence provided by countless numbers of readers of these texts highlighted the concern and disappointment of many consumers to the service standards they had experience during the summer months. Sadly, the experiences have continued during the year. As customers, individuals experienced frustrations, delays, stockouts, incompetence and discourtesies. They were free with their unsolicited comments which were passed on in person, by telephone, emails, faxes and letters.

This microcosm of the broader world has a significant message to and implications for managers and staff members of all business entities, including clients of local retailers regardless of size or sector:

“Casual and part—time commitment to service has no place in this business”.

The statement relates to attitudes, not the terms of employment. People retained in part—time and/or casual positions need necessarily to give full—time commitment to the pursuit of excellence.

Customers don’t understand leave scheduling, penalty rates and other important considerations which impact on businesses. Nor should they. They are not interested in processes and procedures, only in outcomes, benefits, advantages and service.

With truly seamless businesses there are no variations and gaps in standards between divisions, departments and people. Likewise, the seamless characteristic should apply to hours, days, weeks, months and seasons.

No plea for understanding or tolerance is justified. Put simply, customers don’t care. Their interest is centred on self—interest. And they pay for its fulfilment.

How then could a coffee lounge, adjacent to an upmarket premier boutique hotel in the tourist location of Albany, Western Australia display a sign on the front door?

“Closed weekends and holidays”.

Similarly, cafes which close for 3 weeks, to enable the owners time for a vacation, miss the point of service delivery. Consumer demand does not go on holiday. It can be and often is redirected. Alternatives, competitors and substitutes abound.

Likewise, inventory stockouts are inexplicable in a consumer driven environment, where demands are high and loyalty tenuous.

Bank relationship managers who never meet their clients personally, do not visit nor understand businesses and related demands and then explain it will take up to four weeks to arrange an increase in a small business bank overdraft limit are the cause for perpetuating the negative public image of banks and bankers. In their defence, they are quick to exclaim: “Customers don’t understand!” No, they don’t. So?

Deficiencies in the cleanliness of premises and the standards of merchandise presentation are often attributed to rationalising statements, like “it’s after hours”, “it’s that time of year”, “there has been a rush on—”, and “our staff are at lunch/dinner”.

Who cares? Customers do, but not about the reasons why. And if management or staff members don’t care then their attention ought be stimulated as sales decline as customers leave.

What then about those customers requiring the skills and knowledge of an IT or telecommunications expert, when told their specialist is on leave for two weeks. Toll free calls to some “voice” at an interstate call centre, or warehouse often will not satisfy.

Most businesses can and indeed should isolate and remove any unwarranted costs in their operations. That has become a mandatory initial step to maintaining competitiveness. Over 70% of retail businesses have been able to lower costs by at least 10% as a consequence of an appropriate costs audit.

However, this needs to be undertaken and the outcomes achieved without a detrimental effect on service standards and the provision of stated product/service range.

The same principles apply to smaller businesses operating within franchise, marketing and buying group networks. The consequences and ramifications of individual entity deficiencies are simply more widespread.

Ironically, the characteristics and anecdotes detailed above relate more closely and in a more pronounced manner to smaller businesses than they do bigger entities. Notwithstanding those realities, many owners and managers of small businesses contend that their innate advantage over bigger competitors is personalised customer service. That’s essential time.

What is not understood is that wide variations of standards are impersonal to the marketplace and very, very impersonal(ly offensive) to the individual.

Signs on doors and messages on telephone answering services do little to satisfy needs and to placate emotions.

Therefore, agreed standards should be determined, promised, monitored and maintained 24/7. That is, 24 hours a day, 7 days a week. No holidays here.

Barry Urquhart, Managing Director of Marketing Focus, Perth. Barry is an internationally recognised conference keynote speaker, facilitator of strategic planning workshops and marketing business coach. Details of “Business Building” bundle of 3 top selling books and 1 compact disk are available on his website. Tel: 61 8 9257 1777; Email: urquhart@marketingfocus.net.au; Website: www.marketingfocus.net.au
First published: 2 June 2004.
Last updated: 11 November 2004.