Voice Of The Guest

Originally Published September 28, 2011

5 years of membership, utilization of the services and payment to an organization = a number of dollars and positive word of mouth.  I would consider that to be loyalty.  And that describes my (former) relationship with Netflix, a member since September, 2006. Prior to July’s announcements of price hikes, I would say that I have been a solid customer leaning towards being a ‘Fan’.

For those of you who have not been part of the Netflix universe, the basic premise of the business had been a subscription that included both; 1) DVD rentals delivered to your mailbox without late return fees, and 2) Unlimited streaming of selected movies/television programs through your computer or other device that allows you to watch on your television set. 

Regardless of whether you have used Netlix or not, here’s what we can all learn.

Customers Don’t Like ‘BAD’ Surprises

                Change Happens.  That’s OK and customers expect it.  However, give me a reason that I should not only go along with your change, but help me to believe that it will be better for me in the long run. Netflix took the bundled 1-DVD at a time plus unlimited streaming package and split them causing customers to choose to either keep what they already had at a 60% increase or choose one service or the other at a lower cost.           

Customers Understand Price Increases – But, Don’t Go Crazy

                Yes, you read the previous paragraph correctly – I said 60%!!!  When you need to increase prices, do so with the mind’s eye towards what that will look like in percentages.  The Netflix announcement of change of service and price increase equaled a 60% price hike for customers who kept the same level of service.  In reality, the price increase in dollars wasn’t that dramatic, but no one likes to think that they are paying 60% more with no additional benefit.  Which leads us to…

WIIFM – What’s In It For Me-  Surprise Me with a Value Added

                What do I get in exchange for paying you MORE!  More convenience?   More selection?  Better quality?  Faster?  Better?  In the case of Netflix, what I get for keeping the same services is NO BETTER Don’t let your Guests say the same about you – if you need to increase prices, give them something of value in return.

When You Blow It – Don’t Apologize By Pouring Salt in the Wound

                What I have shared thus far relate to the announcements that were made in July, 2011 to be enacted in September.  When the actual change took place the backlash was dramatic.  Customers cancelled their subscriptions in droves and at a much higher rate than Netflix anticipated.  The stock prices plummeted.  The CEO attempted damage control by reaching out to the customer base and public with a lengthy and humbling apology for how the changes were communicated and took place.  OK, that doesn’t fix things, but nice to see some recognition that this was a company that had made some missteps.

                But, here is where he blew it.  In the same message with the ‘apology’ came yet another change to the company without regard to the customer.  This change takes us right back to the top of this article and we begin all over again with Bad Surprises. 

I have no doubt that what Netflix has attempted to do is intended to benefit the company in the long run.  What I’m not sure about is how they managed to make these decisions in a completely lopsided way – All for Netflix/Zero for the Customer.  These observations about Netflix uncover the most important question for all of us.  How much will your ‘loyal’ customers take before they are no longer loyal?  Because, Customer Loyalty Goes BothWays.

Originally Published April 1, 2011

Forbes.com released a recent survey of the top 10 happiest professions in America, from job site CareerBliss.com, shows that they actually value their work, their colleagues — even their boss — more than dozens of other professions. 

Customer Service ranked number two (behind number one – Biotechnology).  A look into the employee responses sheds some light on what might otherwise be considered a thankless job. Customer service representatives' appreciation for the amount of control they have over their daily tasks and the ability to talk to people every day. "They also tend to value their coworkers more than most industries," CareerBliss CTO Matt Miller says.

Also according to Miller “What the results make clear is that employee happiness doesn't come from high paychecks alone. Instead, the three components of a job that employees overwhelmingly responded were the most important factors in keeping them happy were:

• The specific tasks a job entails on a day-to-day basis

• How much control the employee has over his or her daily tasks

• Relationships with co-workers and customers, including supervisors and colleagues”

What also appeals to the Customer Service representative is that “they are often personality types who enjoy helping people, conflict management and problem solving. Customer service employees are the happiest of all employees surveyed in terms of the amount of control they feel they have over their work.”

From a managerial standpoint, how are you working to keep this spark alive?  After the initial recruitment of the right personality and skill fit, it is up to you.

• Have you provided them with Onboarding to immerse them in the culture of the organization?
• Have you provided them with lively and interactive skill training?
• Do you provide ongoing training that provides touch points with the Mission, Vision and Values of the company?
• Do you have a face-to-face format in place to share company updates with ALL staff?
• Do you have a forum for listening to questions, concerns and suggestions from all levels?

The best customer service people thrive on the ability to help others, and the ability to innovate and create solutions.  Important to the continued improvement of your service organization is the ability to capture the solutions that they may already be using and integrate them into your training…and to recognize the innovators with rewards and recognitions.

With your continued efforts, perhaps Customer Service will become the 1st happiest career in America for 2012!

Read the Forbes article in its entirety at:  http://blogs.forbes.com/meghancasserly/2011/02/10/the-happiest-careers-in-america/

Originally Published October 1, 2010

Remember when ‘Word of Mouth’ meant that you may have an actual connection with the person doing the talking?  Now, ‘Word of Mouth’, when it comes to what people are saying about where to eat, stay or fly, is all online.  

So, as leaders in service businesses, we need to pay attention to what these ratings and reviews mean to the consumer, or in our case, the Guest. 

In the online world, it isn’t just stars or diamonds that count, it’s also the reviews, or what people take the time to write about their experience.  When I read the reviews, for example on Yelp.com, I look for the positives that are important to me and to many other Guests; service, cleanliness, speediness, quality, condition, décor, etc.  I can easily overlook someone griping about something that may be out of the establishment’s control, such as what another guest is doing to detract from a pleasant experience.  However, if there are repeated negatives or if the complaints are regarding staff or condition or quality, this cannot be ignored.

With Yelp, not only can the reviewer post, but others can indicate the following regarding the review; was it Useful, Funny or Cool.  I am waiting for Yelp to add another choice, which is that the review is Not Useful or just plain dumb.  Some of the ‘dumb’ ones are often items that may be helpful for the Management of the hotel, such as a noisy appliance or plumbing that needs repair, but not useful for other Guests.  Believe me, if I posted a gripe for every time there was a minor issue in a hotel, there would be volumes. 

But, that’s the point – the online community has become incredibly powerful.  Now, the Voice Of the Guest is truly everywhere.  Everyone has an equally powerful voice in sharing their experiences and possibly influencing others.  It is more important than ever that you are doing everything to elevate the guest experience.  As we are already experiencing, reviews can be a double-edged sword – they can sing your praises or cut you down.  Are you listening and acting?