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The Rules of Knock Your Socks Off Service

Learning Objectives

By the end of this chapter, you should be able to:

• Give three reasons why honesty is the only policy.

• Assess whether or not to make an exception to a rule.

• Make the system work for customers.

• Pay attention to details that influence customers’ perceptions of your organization.

• Recognize situations when selling is good service.

• Say thank you to customers and others deserving of appreciation.

INTRODUCTION

Working with people—serving customers—can be a rewarding, fulfilling, and uplifting way to make a living or spend a life. Working with people—serving customers—can also be among the most frustrating, infuriating, draining, fatiguing, and thankless jobs imaginable. Which one it is for you … depends.

It depends on the organization you work for—and its policies and practices. It depends on the customers you work with—and the challenges and opportunities they present. It depends on the time and the tools you have for doing the job you’ve been asked to do. And it depends, most of all, on you. How you think, feel, and care about the challenge of helping people—who are almost always total strangers—solve their problems, find what they need, and have their fears and anxieties calmed and dispelled at your hands. But you know most of that already.

In Chapter 2, we looked at the principles of Knock Your Socks Off Service. In this chapter, we will discuss the rules of Knock Your Socks Off Service, which support the principles set out in Chapter 2. See Exhibit 3—1, Rules of Knock Your Socks Off Service.

HONESTY IS THE ONLY POLICY

A man always has two reasons for doing anything—a good reason, and the real reason.

—J. P. Morgan Financier

When it comes to customer service, honesty isn’t the best policy, it is the only policy. Lying to, or misleading, customers invariably leads to far worse problems than looking them straight in the eye and telling them something unpleasant they need to hear right now.

There are three very good reasons for facing your customer with the bad news. First, tall tales catch up with you; second, customers respect honesty; and third, your own self-esteem and self-respect are involved.

Tall Tales Catch Up with You

First, tall tales inevitably catch up with you, and often in the most unexpected ways. Our partner, Thomas Connellan, tells the story of a shipping clerk (let’s call him Ralph) in a company in Michigan who had discovered a cute and, to his way of thinking, foolproof way of keeping customers off his back. Every morning he would bring three newspapers to work: the New York Daily News, the Chicago Tribune, and the Los Angeles Times. He would scan each carefully and circle any news item having to do with a transportation disaster—train wrecks and derailments, heavy snowfall in the Rocky Mountains, trucking strikes in the Southeast. You get the picture.

Then, for the rest of the day, anytime a customer called up complaining that a promised shipment had not yet arrived, Ralph would put the caller on hold, thumb through the newspapers until he found a likely item, go back to the caller, and ask: “Did you hear about the train that derailed outside Forth Worth last night? … I know for a fact that your shipment was on that train. I’d like to help you out, but there’s not a thing I can do about a natural disaster.”

Ralph’s little trick worked well for all of a year—until a purchasing agent customer, suspicious because three of his last five promised shipments were subject to “natural disasters,” began checking around. To make a long story short, he figured out what Ralph was up to, put Ralph’s company on his “Unreliable Vendor” list, and wrote a stinging letter to Ralph’s company president. Do you need to ask what kind of natural disaster happened to Ralph? Complete Exercise 3–1, Apply What You Learn: Tall Tales Catch Up with You.

Customers Respect Honesty

The second reason for playing straight with your customers is that—surprise!—customers respect honesty. No, it isn’t fun to tell a customer that there is a problem, or that the delivery date the customer has in mind is unrealistic. But when you have to, and you make it clear you will follow through to do all in your power to make things right again, your customers come away appreciating you as a straight shooter they can depend on to tell the truth— regardless. Complete Exercise 3–2, Apply What You Learn: Customers Respect Honesty.

Do It for Yourself, Too

There is actually a third reason for always being honest with customers: the way you feel about yourself. A friend of ours used to work for one of those television shopping network companies. She was the chief upset customer handler. When customers called in to report that the merchandise they bought was defective, her job was to smother those callers with “I’m sorry” and “We apologize” verbiage.

The trouble was, most of the merchandise the company was selling was factory seconds, items known by everyone in the company to be defective. Our friend was, in essence, a shill charged with the responsibility of mollifying the few customers who were brave enough to complain about their purchases. The company, she was told straight out, was counting on the fact that only about 4 percent of upset customers complain when they receive shoddy service or merchandise.

Did she give the complainers their money back? Absolutely. The company was willing to buy off the few who braved its complaint and return systems. Did she make the complainers feel better? Definitely. At least someone was there to listen to them.

But she quit her job after six months. Why? “Because,” she says, “I couldn’t take being part of a sleazy operation that was knowingly exploiting its customers.”

Complete Exercise 3–3, Apply What You Learn: Honesty Is the Only Policy.

Whoever is careless with the truth in small matters cannot be trusted with important matters.

—Albert Einstein

ALL RULES WERE MEANT TO BE BROKEN (INCLUDING THIS ONE)

Rules exist to serve, not enslave.

—Software programmer’s axiom

Rules are everywhere. We encounter formal rules in the form of laws and policies—“No right turn on red,” “Returns must be accompanied by receipt.” Other rules are informal, taught by custom or experience—“When you bump into another person, say ‘Excuse me.’” “Allow extra time when driving during rush hour.”

We all live and work with mountains of rules, regulations, and standard operating procedures. There are a lot of reasons for rules—some good, some not so good. Some rules have a lot more to do with the convenience of the inventory control or accounting department than the convenience of customers. For example, a movie theater concession stand that counts drink cups at the end of each shift in order to monitor and manage soft drink sales might have a rule warning: “Do not give out drink cups for water.”

Other rules are designed to keep things neat, straight, and running smoothly: “Would the person who drinks the last cup of coffee please make a new pot.”

Still others are created to ensure employee and customer safety: “No one is allowed on the construction site without a hard hat.”

Don’t expect your customers to know your rules, much less understand them. That’s your job; be clear and up-front about what the rules are, and know when you can and can’t allow exceptions to them.

Rules should share a single purpose: to make life run more smoothly, more efficiently, in a more organized and orderly fashion. We sometimes call this purpose the spirit of the law. But rules don’t always fulfill their spirit. In fact, sometimes they work against what we’re trying to accomplish. That’s why it’s important for Knock Your Socks Off Service professionals to understand the rules that direct their efforts.

Rules vs. Assumptions

We are so used to rules in our lives that sometimes, when we don’t know the answer or aren’t comfortable making a decision of our own, we’re tempted to make up a rule to fill the gap. Or, in the stress of the moment, we may borrow a rule from another setting that seems to fit our current situation.

For example, imagine you’re a new cashier. A customer comes in and asks to write a check for $20 more than the amount of purchase. You don’t know what your store policy is, and there’s no one nearby to ask. What do you do?

• You might assume that cashing checks for over the amount is against the rules and say no.

• Or you may borrow a rule from your last job and allow the customer to write the check for $5 or $10 more.

Either option is tempting because it puts you in control of the situation and keeps you from having to say, “Gee, I don’t know if you can do that.” But not knowing all the rules is natural! In fact, not knowing and finding out—for yourself and for the customer—is one of the best ways to learn on the job. Instead of assuming there must be a rule that will make you say no, find out how to say yes.

A friend of ours remembers a business trip to Kansas City where she was working particularly long days. Back in her hotel room one evening, hungry from having skipped lunch, she reviewed the room service menu. Nothing appealed. She called down to room service and asked if she could have a plain broiled chicken breast with a small salad. “I don’t see that on the menu,” the room service waiter responded. “It’s not,” she replied, “but it’s what I’d really like to have. Can you make it?” Silence. Then again, “Well, it’s not on the menu.” To make a long story short, our friend didn’t end up with a room service meal that night, though the room service personnel at many hotels since then have easily and cheerfully accommodated similar requests. Guess which hotel in Kansas City she tells people to avoid?

Red Rules vs. Blue Rules

Rules are important when they protect the public safety or reflect experience that says dire consequences will occur if the wrong things happen. But other rules are simply habits and customs with hardened arteries—systems that grow inflexible with age and take on a rigidity never intended.

A helpful technique for getting a better handle on the rules that surround the work you do is to classify each rule as “red” or “blue.” Red rules cannot be broken. They have life-or-death—or at least, employment vs. unemployment—consequences. They are the “laws” that govern the way things are done. Blue rules, in contrast, are important guides for doing work. They may be bent or broken. If a rule is blue, an exception may be considered.

In health care, Red rules are there to protect the life or well-being of the patient. An example of a Red rule is, “No smoking where highly combustible oxygen is in use.” Blue rules are designed to make the hospital experience run more smoothly for patient and staff alike. A Blue rule example is, “Incoming patients are processed through the admitting department.”

Health care workers have to know when a Blue rule, such as “Fill out the admission forms first,” should or must be broken. For instance, in the emergency room, or when a pregnant woman arrives in labor, the paperwork can wait.

Complete Exercise 3–4, Apply What You Learn: Red Rules and Blue Rules.

Red rules may be set by the government in the form of laws or regulations, or by your company’s management. Blue rules may evolve from department policy or past experience. You need to understand where the rules come from and why they exist and be able to explain them to your customers so they in turn know why you’re doing what you’re doing.

Complete Exercise 3–5, Apply What You Learn: Organize a Discussion Group.

Breaking vs. Bending the Rules

Know your own limits. If you believe an exception should be made but aren’t sure you can or should do it, ask a more experienced peer, your supervisor, or your manager.

Making Exceptions

If a rule is Blue, an exception may be considered. Knowing exactly when and how to make an exception to the Blue rules, like many things, is easier said than done. There are three flavors of exception; the little favor, the big favor, and the “special” customer.

1. The Little Favor

Little favors are exceptions to Blue rules that are no big deal to you or the company but that can mean a great deal to customers. They are generally easy, but you do need to proceed with caution. If customers perceive your “little favor” as a normal business practice, they will expect it every time.

CUSTOMER:	I know the drug store doesn’t open ’til 8:00 A.M., but since you’re here, can I drop off this film?
STORE EMPLOYEE:	YOU are in luck! YOU’ve stopped by on just about the only morning I am ready enough to take your film.

Complete Exercise 3–6, Apply What You Learn: Granting Customers “Little” Favors.

2. The Big Favor

At times customers want to be excused from rules that have greater impact for you, your coworkers, and the organization as a whole. When deciding whether to bend or break a Blue rule, there are three issues to consider.

• First, will this exception cause too much delay in serving other customers?

• Second, will it inconvenience another department in an unacceptable way?

• Third, is this a request you should pass along to a supervisor?

Bank customers frequently become tangled in rules, policies, and procedures. A common confusion involves the length of time banks hold a deposited check before making those funds available for withdrawal. Customers may know that the bank reserves the right to hold the deposited check for five days, but may, in practice, rely on the fact that checks drawn on local banks are usually available in only one or two days.

“I dont understand how I got an overdraft notice on my checking account. I deposited my paycheck Monday, but when I called the bank-by-phone line, they told me I have a negative balance.”

The decision to make an exception to the rules for this customer—to release the funds and reverse the overdraft charges—is generally handled by a senior service specialist and may depend on several factors. The service specialist may discover that this customer honestly misunderstood the bank’s “funds available” policy. In that case, the bank may “forgive” the customer:

“I can understand your confusion. I’ll send you a flier explaining our funds available process. The money you deposited on Monday will be available to you tomorrow. In the meantime, I will make a special exception and reverse the overdraft charges and make sure no checks are returned for insufficient funds.”

A look at the notes attached to this customer’s file may suggest that this customer was trying to play the rules to his or her advantage—again. In this case, the bank may be much less flexible about the policy:

“I am sorry, but those moneys won’t be available until tomorrow. As you know, we hold your check deposit for up to five days—until we have cleared it with the other bank. I will, however, make sure no additional overdraft charges are made between now and tomorrow.?

Complete Exercise 3–7, Apply What You Learn: Granting “Big” Favors to Customers.

3. The Special Customer

Some customers invariably seem to act as if they are the only customer we have, or the only one that counts. And they are—to themselves. We may, and do, talk frequently about treating all customers equally. Every customer should receive equal respect and courtesy, but it is the nature of commerce that you will go to greater lengths for some than for others. You have to—it’s good business sense. And some customers know it.

Your best approach is, first, to know what the client was promised. Don’t get angry because some clients have ultra high, “treat me special” expectations—they may have them for a very good reason. Because they were told your company—and you—would deliver. Find out who the key clients are for your organization.

Second, know how far you can go to serve key clients. The service manager for a Detroit-based metal fabrication company told us, “Hupmobile is our number one client. They provide 75 percent of our revenue. Whatever they ask for, and I mean whatever, we will find a way to do it.”

For the metal fabrication company, “do whatever it takes for our key client” can supersede just about every one of the Blue rules that guide employees on the job. And that’s okay. Without special customers, your job might be easier … but then you might not have a job!

Complete Exercise 3–8, Apply What You Learn: Identifying Key Clients.

Responding to Warranty Issues

One of Murphy’s laws promises that your toaster or TV will only break down just after the warranty has expired. There are customers who suspect that your company probably spends hundreds of hours and thousands of dollars making Murphy right by crafting carefully worded product warranties that remove any possibility of company liability for anything. Other customers are certain that even if the product is still within the warranty period, the retailer or dealer they bought the toaster or TV from will do everything possible to avoid any financial responsibility for the gone-bad product. Warranty issues can create frustration and ire in the most genteel customers.

Whether you work in a retail setting or for a manufacturer, warranty situations will come up. It’s easy to feel caught in the middle between the company and the customer in these situations. The only way to avoid the squeeze is to be prepared to hear and respond to:

“What do you mean that’s not covered by the warranty?”

before it ever comes up. That preparation takes a little homework.

Step 1: Know Your Company’s Policy Regarding Warranties

If your company’s policies about warranties vary from product to product—for example, you work for a retail store that relies on the product manufacturer’s warranty to determine refunds and exchanges—know the warranties for your best-selling products, or at least know where to go to quickly find out about them.

If your company doesn’t have a manual describing all of the major product warranties, create your own. A simple filing box or ring binder, alphabetized by product or manufacturer, can be a terrific place to keep copies of product warranties. And, of course, a computer file is the perfect place to store the details of warranty arrangements.

Step 2: Ask Around

Ask your manager, your coworkers, anyone you can think of, these questions:

• Has our company made exceptions to the terms of product warranties in the past?

• Do exceptions to a warranty depend on the type of customer doing the asking, the customer’s past history with our organization, the number of previous returns this customer has made, or other factors?

• Who gets to determine when exceptions to the warranty/return policy may be made?

Step 3: Prepare an Explanation of the Warranty Policy

Write down the key points you will want to make when explaining the warranty to a customer. Try out your explanation in a practice session with coworkers. As you practice presenting your key points, think about the words and phrases you are using. Avoid saying, “It’s our policy.” Instead, say something like:

“Normally, our procedure is to forward this type of product issue directly to the manufacturer. The manufacturer will then send you a check directly for the purchase price. In this case, however, I can simply do an even exchange for you, so everything will he taken care of today. How would that be?”

See Exhibit 3–2, Preparing for Warranty Questions.

You also need to be prepared for two major variations on the “What do you mean it’s not covered by the warranty” question.

Variation 1: “If You Can’t Help Me, Who Can?”

You may not be the person in your organization who gets to decide the legitimacy of a return. For some claims, the deciding person may not even be your manager or supervisor, but rather a representative from the manufacturer or supplier. Even when the decision of whether to accept or decline the return is not up to you, you can still play an important role between the customer and the company offering the warranty—suggesting approaches and making connections.

“Normally, we don’t accept merchandise returns without a sales slip. There are three things we could do. If you think the sales slip is at home, you could bring it and the toaster back with you another time. Or, you could contact the manufacturer directly for a replacement or refund—I can get the address for you. Or I could get our senior accounts person and see what she might suggest. What would work best for you?”

Variation 2: “You Expected Me to Do What?”

Some warranties have very strict requirements and obligations built into them. And, more often than not, your customers are only vaguely aware of them:

“Of course, I didn’t keep the original box. I didn’t expect this thing to quit working—did you? You people said it’s under warranty for a full year. How can you justify charging me twenty-five dollars just because I threw away the box?”

Your best response is to acknowledge the customer’s upset and disappointment and explain the rationale behind the policy—if there is one. For example:

“I am sorry, but we ask our customers to retain the original box for the entire length of the warranty period so we can return the product to the manufacturer in the unlikely event that there is a problem. The twenty-five dollar fee covers our costs for returning the product without the original box.”

Even if customers disagree with the policy, they find some comfort in knowing that a reason exists for having the policy. But don’t be surprised if they fail to thank you for the explanation. Complete Exercise 3–9, Apply What You Learn: Explaining a Warranty and Exercise 3–10, Apply What You Learn: The Missing Memento.

Make the System Work

Without formal and informal rules, service would become chaotic—and customers would never know what to expect. Just because you think that breaking or bending a rule won’t cause the ceiling to fall doesn’t mean you should take it lightly. Know the nature of the rule in question, the reason for the rule, and the consequences of not following it, then help your customer make the system work.

The exception proves the rule.

—Seventeenth-century proverb

DO THE RIGHT THING … REGARDLESS

Use your good judgment in all situations. There will be no additional rules.

—Nordstrom, Inc., Employee Handbook

Doing the right thing and doing things right are separate but equal issues in providing Knock Your Socks Off Service.

Doing things right deals with knowing: developing and using technical skills and people skills, knowing about your customers’ needs and expectations, learning about your company’s products and services, and being able to answer questions about how things work and why.

Doing the right thing is action-oriented. It involves making judgments about how to use your company’s products and services on your customers’ behalf—sometimes in ways they may not have asked for, or even thought of.

The Nordstrom department stores’ Employee Handbook is, by now, almost legendary. Its elegantly simple, solitary rule is: Use your good judgment in all situations. The lack of additional rules doesn’t mean there’s no direction. Nordstrom employees—those fabled Knock Your Socks Off Service professionals—are encouraged to use their managers for support when they’re not sure what to do. In Nordstrom’s words:

“Please feel free to ask your department manager, store manager, or division general manager any question at any time.”

In orientation and training programs, Nordstrom people learn what doing the right thing means for the customers they will serve. Sometimes it means accepting a return with no questions asked or walking a customer to another department—even to a competitor’s store—to find just the right clothing accessory. The result? From coast to coast, people tell stories about service, Nordstrom-style. Even those who’ve never seen the inside of a Nordstrom store (the company operates mostly on the West Coast) have heard the stories. And just about the time they start to shake their heads and say things like, “Sure, but how long can they stay in business doing things like that?” someone adds the real clincher:

Nordstrom regularly posts some of the highest sales per square foot in the retail industry. Not only does nobody do it better; nobody makes more money doing it right, either!

Is the Right Thing Ever Wrong?

Many frontline service workers and plenty of managers feel an instinctive fear of simple policies such as, “Do the right thing.” The fear is natural; for generations, we’ve been warned about the dire consequences of “giving the store away” But that fear is easily overcome when common sense and the competence that comes with experience are brought to bear on the subject.

Are you going to give the store away? Of course not—no more than Nordstrom’s people do. When managers and service professionals feel uncertain about the idea of “Do the right thing,” we tell them the point of Knock Your Socks Off Service is to delight their customers. That makes customers come back again—and that makes money for the company.

It’s pointless for your company to hire good people, train them well, and back them with customer-friendly systems and supportive management, only to refuse them the opportunity (or see them decline the opportunity) to make good judgments on their customers’ behalf. The system’s not out of control; it is being controlled by your innate good sense. That’s why your company has already entrusted you with its most priceless asset—customers, the very future of the business. Complete Exercise 3–11, Apply What You Learn: Making Good Judgments.

Your own good judgment applies in every industry. If you know your job but aren’t sure exactly what you should or shouldn’t do in a particular situation, try asking the following three questions as your guide:

1. Does the action violate a Red rule, or is it about bending a Blue rule? If a Red rule is involved, you can generally stop right here. When housekeepers at St. Luke’s Hospital in Milwaukee are asked by patients for water, they know to check first with the charge nurse. If the patient is on restricted fluids, the simple act of providing a glass of water violates a Red rule.

2. If it involves a Blue rule, will bending or breaking the rule allow us to serve customers better? Make more money? Be positively different from our competition? The fact that you can bend a Blue rule is not in and of itself a compelling argument that you should bend or abandon it. Window cleaning for the historic Foshay Tower in Minneapolis has always been done during the workweek, during normal business hours—a de facto Blue rule. While the building manager will happily schedule weekend service for tenants who need it, she first explains, “Our windows date from 1929. We open them to clean the outside from the inside. We prefer to clean during the week so that if we discover that a repair is needed, it can be done immediately. I don’t want any tenant to suffer with a taped-up or boarded-up temporary fix.”

3. Who should make the final decision? Find that person, and take action. In many cases, it will be you. Sometimes, especially when bending a Blue rule involves a risk or an added expense, you will need to involve a manager or supervisor. With your answers to Questions 1 and 2, you will be able to offer your manager thoughtful perspective and an action plan.

Complete Exercise 3–12, Case Situation: No Deposit = No Service?

EXCEPTIONAL SERVICE IS IN THE DETAILS

Asked about the difference between memorable and mundane buildings, Swiss architect Mies van der Rohe responded simply, “God is in the details, the details, the details.” What’s true of quality architecture is true of quality service: If you pay attention to the details, the right details, customers will know, and notice, and come back for more.

Everything Counts

The details surround us, no matter what kind of job we do. It’s how we look, and how our workplace looks. It’s how we speak and what we say. It’s all the little extra courtesies and comforts we build into the service experience—or the myriad nagging annoyances we lose track of and make our customers wade through to do business with us.

Attention to detail is a prime characteristic of high-performing organizations. The cast members at Walt Disney World have a passion for details that make customers sit up and take notice. A friend of ours raves about Shirley, the housekeeper she met during a recent vacation to Disney World. “The first day, when we checked in, I saw the ‘Your room was cleaned by Shirley. Have a great stay’ note. I noticed the “i” in Shirley was dotted with a little Mickey. That was cute, but we were at Disney. The third day Shirley really wowed me. I’d left a note asking for more towels. When we returned to the room, there was a ‘Do not disturb’ sign on our bathroom door. Inside, Shirley had taken our morning paper and the eyeglasses I’d left by the sink and arranged the extra towels in the form of a man sitting on the toilet reading the daily paper. I laughed so loud. I don’t think I’ll ever forget that!”

A growing number of managers and executives today understand that the examples they set in turn set a positive tone for their organizations. For example: Fred Smith, the founder and chairman of Federal Express, begins many of his visits to FedEx facilities in far-flung cities by hopping on a typical delivery van. Bill Marriott, Jr., chairman of Marriott Hotels, often takes a turn at the hotel registration desk checking in guests; he also empties ashtrays in the lobby and picks up trash in the parking lot. And there isn’t a manager at Walt Disney World or Disneyland who doesn’t personally pick up, straighten, and worry after the thousand and one details that create an unparalleled experience for their customers. These executives model attention to detail for their employees, just as you model it for customers and coworkers.

Moments of Truth

Attention to detail is more than playing at or being a janitor. It is the way you remember—and remind others—that contact with any aspect of your work group gives your customers an opportunity to form or revise their impressions, positive or negative. It is through attention to detail that you manage those critically important moments of truth. (In Chapter 1, we discussed Moments of Truth, and in Exercise 1–3, you identified Moments of Truth that your customers experience.)

When you pay attention to detail, things look easy. Customers aren’t necessarily aware of all the behind-the-scenes time and effort involved. Thinking and planning, creating and using checklists, coordinating, confirming, proofreading, double-checking, making systems redundant and foolproof are all ways of paying attention to detail, of making sure that things go right. The customer just knows everything went smoothly and they had a great experience. When you neglect the details, things go wrong. Then customers get a negative impression. See Exhibit 3–3, Paying Attention to Detail.

See Exhibit 3–4, From the Case Book: Mastering the Details.

GOOD SELLING IS GOOD SERVICE—GOOD SERVICE IS GOOD SELLING

Nothing happens until someone sells something.

—Marketing axiom

Sales and service are not separate functions. They are two sides of the same coin. Even if your title is customer service representative and a coworker is a sales associate, you both have the same ultimate goal: satisfying the customer. It wasn’t always this way. In days gone by, sales and service personnel used to be adversaries:

Sales and marketing people viewed their counterparts in service and operations as “those guys who never want to help me make a sale and who screw it up after it’s a done deal.”

Service and operations folk, for their part, tended to view sales and marketing people as “those people in suits who write outlandish ads, make ridiculous promises to close a sale, and leave us holding the bag with the customer.”

In today’s world, sales, marketing, service, and operations share a common goal: creating and retaining customers.

When Lines Overlap

To create and retain customers we have to combine good selling with good service. Consider the case of Edgar Pinchpenny III, the unhappy owner of a Model 412-A Handy-Andy Cordless Electric Screwdriver. (You know he’s unhappy because he is waving the 412-A around, banging it on the desk, and demanding his money back.)

Using your very best Knock Your Socks Off Service skills (listening, questioning, problem solving), you determine that Pinchpenny is upset because the 412-A needs frequent recharging and isn’t very powerful. But you also know that the 412-A was built for small repair jobs around the house. It absolutely was not designed for the industrial strength, barn-building, automobile-overhaul sort of work Pinchpenny is trying to get out of it. That’s why your company also sells the much more expensive 412-C Turbo-Andy, the best professional power screwdriver in the industry and the perfect tool for Pinchpenny’s job.

Better service at the time of the original sale might have matched Pinch-penny with the more appropriate tool. But what should you do about the situation now? Tighten the chin strap on your thinking cap and consider which of these four possible actions you would recommend:

Option 1. Tell Pinchpenny that if he hadn’t been too cheap to buy the proper tools in the first place, he wouldn’t be standing there screaming himself into a coronary.

Option 2. Explain the limitations of the 412-A and the benefits of the 412-C to Pinchpenny, and recommend that he consider buying up.

Option 3. Apologize to Pinchpenny for the inconvenience and explain the difference between the two models. Then offer to personally make an exchange on the spot and to give him a discount on the 412-C to compensate for being inconvenienced.

Option 4. Apologize for the salesperson’s stupidity, offer Pinchpenny an even exchange—the old, abused 412-A for a shiny new 412-C at no additional cost—throw in a free set of your best stainless steel screwdriver bits and offer to wash Pinchpenny’s car.

We pick Option 3 as the best course of action: It shows concern, responsiveness, and good salesmanship. It doesn’t unduly punish Pinchpenny for the human error involved in the original purchase—whether his or ours. Nor does it unduly reward him for his argumentative and unpleasant return behavior. Option 2 is a narrow, old-fashioned, service-as-complaint- department response. It isn’t likely to keep Pinchpenny as a long-term customer. Options 1 and 4 are the kind of answers suitable for companies where frontline people are specifically recruited with IQs approximately equal to their shoe sizes.

When Selling Is Not Good Service

There are three situations in which selling is not good service:

1. When There Are No Alternatives

The customer’s needs cannot be met by any product or service you offer, regardless of how well you can fix the problem, answer the question, or explain the current product or service.

2. When There Is No Slack

You know how to solve the problem, but the customer came to you mad, has stayed mad, and obviously wants to stay mad. There is very little chance to make the customer unmad, let alone sell an upgrade or a switch to a different model.

3. When There Is No Point

An upgrade or add-on would be totally illogical, unrelated, or inappropriate to the situation, as in, “Would you like some garlic bread to go with your cappuccino this morning?” Complete Exercise 3–13, Apply What You Learn: When Selling Is Not Good Service.

When Selling Is Good Service

There are five situations in which selling is good service:

1. When There Is a Better Way

When the product or service the customer is using is wrong but you know which model, system, or approach will better fit their needs and are in a position to get it for them.

2. When an Enhancement Is Needed

When the product or service the customer acquired from your company is right but some other part, piece, program, or process is needed before your product or service will perform properly: “Your computer operating system is Version 4.9. Our software is designed for the new 5.0 operating system. I do know of an upgrade for the 4.9 that might work.”

3. When the Product or Service Is Out of Date

“I can send you a new widget and walk you through the repair when you receive it. I also think it would be a good idea to consider a newer model that will do the job better. The Laser XJ7 has improved circuitry and can…”

4. When an Add-On Feature Will Forestall Other Problems

“I see you decided against extended warranty protection. Since you’ve had two problems during the warranty period, I wonder if you shouldn’t reconsider that decision?”

5. When Change Adds Value or Is Perceived as TLC

When changing the customer to a different product or service will be seen as value-added or tender loving care (TLC): “This checking account requires a very high minimum balance. That’s what caused the service charge you are concerned about. I’d like to recommend a different plan that I think will fit your needs better and save you from incurring future charges.”

See Exhibit 3–5, Desktop Reminder: When Selling Is Good Service, for a list of situations when selling is and is not good service. Complete Exercise 3–14, Apply What You Learn: When Selling Is Good Service.

Explaining Products and Services

Whether or not the word “sales” appears in your job title or job description, you will be asked to explain how your products and services differ from those offered by your competition. After all, many customers innately believe that “dog food is dog food” and will challenge you to explain why your dog food, or printing services, or convention space, or health care services, or automobiles are better than—or at the very least, different from—your competition’s.

There is a simple rule: Find out Ask around. Ask the salespeople and the manufacturing and operations specialists. Ask customers and executives. Read the marketing and sales literature. Even if you don’t personally make it or hawk it, your customers have every right to expect you to be able to talk about it, intelligently, persuasively. Complete Exercise 3–15, Apply What You Learn: Getting Smart About Your Products and Services.

It doesn’t matter if your customers are external or internal. The manager of an in-house printing unit was amazed to discover that many members of his delivery staff didn’t like talking with customers. “Customers always ask us why we cost more than the quick-copy place on the corner. I don’t know what to say,” one explained. With the manager’s encouragement, a small group got together and worked out an answer that every employee in the unit could adapt and use when customers bring up the topic of cost:

“If you want the cheapest copies in terms of the price per page, sometimes you do have to go to the place on the corner. But that price doesn’t include the service and convenience we offer. We’re right here in your building, so it takes only a few minutes for us to walk to your floor and pick up or deliver your work. We also think we have unbeatable quality. It’s not just your name on the materials you create; it’s our company name, too. And we’re set up to ensure consistency between all of the materials created by all of the various parts of our organization. We can serve as designers on new brochure oration and consultants on binder design. All told, we believe we are very competitive.”

Sure, it’s a lengthy answer. And the employees seldom run through it in one fell swoop. Just the same, having a “rap” that explains and justifies the department’s philosophy has had an ego-boosting effect on morale.

In reality, selling and service are inseparable.

—Leonard Berry, David Bennett, Carter Brown
Service Quality

NEVER UNDERESTIMATE THE VALUE OF A SINCERE THANK YOU

Thank You… Thank You, Thank You… and Thank You!!!

—Fozzie Bear

Remember when you were ten years old and what you wanted for your birthday was that electric train or special Barbie? And your grandmother gave you underwear instead. And your mom and dad stood there and looked at you and pinched you on the arm. “Now, what do you say?” they prompted. “Thank you, Grandma,” you said. And your grandma beamed and patted you on the head.

Saying thank you is as important today as when your parents tried so hard to drum it into your head. In your job, you need to say thanks to your customers every day. You need to sincerely value the gift of business they bring you—even if it may not be as exciting as electric trains and Barbie dolls.

Nine Times When You Should Thank Customers

1. When They Do Business with You… Every Time

It bears repeating: Customers have options every time they need a service or product. It’s easy to take regular and walk-in customers for granted. Don’t. Thank them for choosing to do business with you.

2. When They Compliment You (or Your Company)

Compliments can be embarrassing, but shrugging off customers’ sincere praise says, “You dummy, I’m not really that good.” Instead, accept it gracefully, say, “Thank you,” and add, “I really appreciate your business.”

3. When They Offer Comments or Suggestions

Thanking customers for feedback says that you’ve heard what they had to say and value their opinion. Something as simple as “Thank you for taking the time to tell me that! It really helps us know where we can do better,” delivered with eye contact and a smile, can work wonders.

4. When They Try a New Product or Service

Trying something new can be uncomfortable, and risky. After all, the old and familiar is so, well, old and familiar. Thank customers for daring to try something different.

5. When They Recommend You to a Friend

When customers recommend you, they put themselves on the line. If you deliver, they look good. If you don’t … A written thank-you for a recommendation or a value-added token the next time you see those customers face-to-face says you value their recommendation.

6. When They Are Patient… and Not So Patient

Whether they tell you about it or not (and, boy, will some customers tell you about it!), no one likes to wait. Thanking customers for their patience says you noticed and that you value their time. It’s also one of the quickest ways to defuse customers who have waited too long and are none too happy about it.

7. When They Help You to Serve Them Better

Some customers are always prepared. They have their account numbers right at their fingertips, always bring the right forms, and have notes they took on their last service call. They make your life a lot easier; thank them for it.

8. When They Complain to You

Thank them for complaining? Absolutely! Customers who tell you they are unhappy are giving you a second chance. And that’s quite a gift. Now you have a chance to win their renewed loyalty, which will give you additional opportunities to thank them in the future.

9. When They Make You Smile

A smile is one of the greatest gifts you can receive. Saying thank you just makes it better.

See Exhibit 3–6, Desktop Reminder: Thanking Customers, for a list of times when you should thank your customers.

Three Ways to Say Thank You

1. Verbally

Say it after every encounter. And say it with feeling. “Thank-you-for-shopping-at-our-store,” said like a freight train roaring past, doesn’t impress customers. Make your thank-you’s warm, pleasant, and personal.

2. In Writing

Send a follow-up note after a purchase or visit. Personalize it. Customers hate form letters. Write a thank-you at the bottom of invoices or bills.

3. With a Gift

Give something small, like a notepad or pen imprinted with your company name. It will help customers remember your business.

Five Often Forgotten Thank-You’s

1. Thank Your Coworkers

Give credit to those who help you. Thank those coworkers who, by the way they show concern for customers, serve as a role model for you. Doing this in front of customers every chance you have tells customers they’re dealing with a team effort.

2. Thank Your Boss

To make sure your managers give you the support you need, give positive feedback when they help you do your job.

3. Thank People in Other Departments of Your Company While you may be the one actually talking to the customers, support people make the service you deliver possible. Thank them, either individually or as a group. For example, we know of one organization where the ten-member marketing staff held an annual appreciation breakfast to thank eighty coworkers for their year-long support. The marketing team brought in all the food at their own expense. They even prepared hot cakes to order.

4. Thank Your Vendors

Without their professionalism, your customers wouldn’t be receiving the satisfying service you’re able to provide.

5. Thank Yourself!

You do a tough job and deserve a pat on the back. Give yourself credit for a job well done. And take yourself out for an extra special reward once in a while.

Complete Exercise 3–16, Apply What You Learn: My Thank You List.

Gratitude is not only the greatest virtue but the mother of all the rest.

—Cicero

• The rules of Knock Your Socks Off Service are:

1. Honesty is the only policy.

2. All rules were meant to be broken (including this one).

3. Do the right thing … regardless.

4. Exceptional service is in the details.

5. Good selling is good service—good service is good selling.

6. Never underestimate the value of a sincere thank you.

• Honesty is the only policy for three very good reasons. First, tall tales catch up with you; second, customers respect honesty; and third, your own self-esteem and self-respect are involved.

• Be clear and up-front about what the rules are. Know when you can and can’t allow exceptions to them. Red rules are the “laws” and cannot be broken. Blue rules are important guides for doing work and exceptions may be considered.

• Doing the right thing involves making judgments about how to use your company’s products and services on your customers’ behalf. When you make wise judgments on your customers’ behalf, they return—and that makes money for the company.

• Attention to details is a prime characteristic of high-performing organizations. It is through attention to detail that you manage Moments of Truth.

• Sales and service are not separate functions. They are two sides of the same coin and they share a common goal: creating and retaining customers.

• Thank customers every time they do business with you. Thank them when they offer comments, try a new product, or recommend you to others. Thank coworkers, your boss, people elsewhere in your organization, and vendors.