Product, Service and Value

Last week, I found myself in a Twitter dialog about whether product and service were really two separate things. Many people view them as being completely separate. I am not so sure.

Where the two things connect, I think, is value. I've seen value defined many ways. One of the best and simplest is this: Value is what the customer will pay for.

So, would I pay as much for my car if the nearest place to get it serviced was 300 miles away? I don't think so. I think that the value of my car is based largely on its utility. (Of course there are other considerations as well, such as comfort, economy, features and more, but if I really can't use it, what good is it?) If I find myself with a broken gearbox or failed fuel injector 300 miles from the nearest repair shop, I've got a problem. The very same vehicle purchased in an area where there are 2 dealers within 50 miles, it seems to me, is literally worth more to me. In fact, I have not considered buying one particular brand of car (rated one of the two or three best in the world by most standards) for this exact reason. There's not a dealer anywhere within 200 miles.

The very same thing is true in many other areas: I buy coats and boots and many other items from a company with a great customer service record and a 100% guarantee because I know I'll get more out of what I buy--so I'm willing to pay a little extra. Well constructed, guaranteed items have a greater value.

Are there exceptions? Of course. If a service or product is unique, its value is increased even without any good customer service. If, for example, someone were to invent a car that never needed maintenance and never broke down or wore out, that car would have tremendous value even if the car maker didn't appear to care less about its customers. But in fact, the company would have built the service into the product. They've given their customers the best service of all.

Give it some thought.

Please Note: This blog will be moving to royatkinson.wordpress.com as part of my effort to use Google products and services as little as possible.

Super Every Day

No matter who is the champion of whatever sport we happen to be following, we know that there are some important characteristics of teams (and individuals) that win:

• They are talented
• They are well trained
• They are unified in their objectives
• They are focused on achieving the goal

Can we say that about the teams we work with? 

• Do we have the right people in the right places?
• Is marketing getting the word out and presenting our products and services in the proper way? 
• Does sales handle the "play" properly and, as Lou Imbriano would say, "Win the customer"? 
• Is our service and support team ready to "defend" our gains by keeping customers happy and making sure they remain customers? 
• Is our production or professional services team ready to fulfill the promises made by our advertising and sales? 
• Do we have the right coaches in place for each of the specialty teams we field?

In almost every sport, coaches stay on the sidelines, or in the dugout, or behind the tee, or overlooking the tennis court. They are almost never active players (although there ave been some exceptions). Are you a manager? Do you also find yourself on the team you are trying to manage? Is the workload so intense that you must be counted as one of the players? Consider what you might be losing in terms of perspective and strategic view.

Sometimes, even in the most intense of competitions, there are time outs. Do you need to call one and assess how your organization is working together as a team? 

Give it some thought.

Image from iStockPhoto.com

Do. Improve. Repeat.

If you've been following me on Twitter for any length of time, you've read these three words before:
Do. Improve. Repeat.
I call it my "mantra." I've used it in just about every aspect of my life. Of course, it's my personalized version of "Practice makes perfect" or "La práctica hace al maestro" or "Kaizen," but with emphasis on a central step: Reflection and the conscious intention to make the next golf swing, guitar riff, kata routine, blog post or paragraph better than the last.

Every day presents a new opportunity to get better at something, whether it's being a better follower, leader, thinker, writer, golfer, musician, student, manager or martial artist (or whatever it is that you've chosen to apply yourself to). It seems to me that this is a common thread among the people I have admired throughout my life: They have worked on the things they find valuable, and have tried to continually improve not only for themselves but for others as well.

I realized long ago that practice doesn't guarantee you excellence as compared with the greats. I found out that I'd never be a major league baseball prospect, or a pro golfer, or lots of other things I might have enjoyed. But knowing I can't be the next Jack Nicklaus doesn't stop me from heading to the range and trying to get better. It's easy to put yourself on "cruise control" when you reach a certain level in your chosen profession or hobby or sport, and many people do. It's not my way.

Does this make me better than other people? Absolutely not, and that has never been my goal (especially because it isn't possible). It only makes me better than my "yesterday self."

If there's some area of your life, be it hobby or work, that draws you on and makes you try and try again, think about why that is, and see if you can't bring the desire you feel there into other areas of your life.

I would thoroughly enjoy hearing about your experiences.

Give it some thought.

Golf practice photo by Roy Atkinson

Customer Empowerment: Lessons Learned

Some very large companies learned lessons this year about the power of customers. There was the Bank of America fee story and the Verizon fee story. Now, those fees hit customers in the pocketbook, and it's easy to see why people rebelled against them. But things get very interesting when we look at what happened to GoDaddy, which lost upwards of 72,000 domains when customers decided there were better alternatives.


GoDaddy didn't increase its fees, or do anything directly draconian to its customers; the company did, however, indicate that it was supporting SOPA, the very controversial legislation making its way through the U.S. House of Representatives, and customers didn't like it.


There's always been an adage in business about customers who "vote with their feet," heading over to the competition if they find something they don't like about you, whether it be price or service. But now, people may leave you if they don't like your backing of a bill, or if they don't think you pay enough attention to the environment. And this is just the beginning.


Those of us who follow and contribute to social media are well aware of the ability to use outlets like Twitter and Facebook to make noise when something doesn't appeal to us, and some even credit, or partially credit, social media with a role in the recent governmental changes in Egypt, Libya and elsewhere, the so-called "Arab Spring."


But customer influence is being taken seriously at levels most of us are not even aware of. Take for example the complex social media analysis being done by Bluefin Labs. As explained in a recent article in Technology Review (login required for the full story), Bluefin extracts enormous amounts of information from social media updates related to TV programs and advertisements. It won't be too long before they can deliver detailed analysis related to almost any topic in any medium.


All of these things should be a very big warning to companies: 


Pay attention to your customers. They are empowered now in ways that they have never been before. They may vote with their feet, and take thousands of others with them when they go.


What are you doing to make sure your relationship with your customers stays on the positive side?


Give it some thought.

Was It Customer Service?

A couple of years ago, my (then) employer moved me into a windowless office. I decided to buy a full spectrum desk lamp.  There were two home improvement "big box" stores on my way home from work, practically across the street from each other. I'll call them Orange and Blue. The Blue one was fairly new and I'd never been there, so that's where I went.

After a couple of minutes of looking at the choices, I picked out a nice, inexpensive lamp that I felt would look good on my desk and get the job done. As is usual, there was a display unit and a shelf full of corresponding boxes. The only problem was, I couldn't find the lamp I wanted among the boxes.

I went to find some help, and soon saw someone in the store's blue apron. I asked for assistance with the lamp and was told, "I don't know anything about that department. I'll find someone and send them over to you." Having a little faith, I stood by the lamps for a few minutes, and someone in a blue apron came by. Apparently, however, not the one I'd been hoping for.

"Excuse me," I said, "can you help me with these lamps? I can't seem to find this one," I said, pointing to the one I wanted.
"Whatever we have is on the shelf," said the blue apron.
"OK. I guess you don't have one of these in a box, then?"
"Um, whatever we have in on the shelf."
"Will you be getting more of these?"
"I don't know."
"Well, can I buy this one?" I asked, indicating the one chained to the display.
"No. I can't sell that."
"OK--let me be clear," I said, slowly. "I would like to buy this lamp. If you don't sell me this one, I'm going to go across the street and buy a lamp there."
"Well, I can't sell you that one."

I did go across the street and buy not one lamp, but two.

When I mentioned this episode at work, there was a universal, "Oh yeah--their service is terrible."

I never went back.

Well, the Blue big box home improvement store closed up shop a couple of months ago. It was not because I didn't buy the lamp that day. It was because hundreds of people did not buy their lamps, drills, blinds, carpets, nails, pipes and whatever else they needed or wanted there. And it wasn't because I told a lot of people. The people I mentioned this to already knew that the service was bad. It was because people simply stopped shopping there.

An easy alternative existed, and this business failed to make the commitment to be better. Too bad, so sad, as the saying goes. Now, let me say that Orange does not have the best service I've ever had, but it's orders of magnitude better than Blue.

Moving in to compete? Customer service might be the difference between you and your competitor.

Give it some thought.

I Learned Customer Service from a CEO

There are some people around the web who seem determined to shoot down the customer service community that has taken root here, and one of the things they say is that the people who take part in the discussions and chats don't understand business. Well, I don't understand the kind of business that thinks it's ok to refer to "dumb customers" but that's another story.


I began my customer service education when I was in high school, working part time at a business a few miles from where I grew up. After about a year, I was promoted into the customer service desk, which was seen as a desirable place to work and as a steppingstone to management. This was not a tiny "mom & pop" store; it was a business that was doing over $50 million a year--in the late 1960's.


The CEO of this private corporation was only in his mid-twenties, and had grown up in this business. His father had started him off in the operation where I worked, and ran 5 other, slightly smaller operations himself. The son, "Tommy," and the people he hired gave me a  great education in customer service. We often worked side-by-side doing what we did best: serving customers. Here are a few of the things Tommy taught me:

• It doesn't matter what your title is; when a customer needs assistance, you assist them.
• Your employees need to know that you "have their backs" - Tommy never, ever dressed down an employee in front of customers or other employees; he saved his comments for private conversations that were more teaching than "getting yelled at."
• No job in the business is too "low" for you do do, and it's a really good idea if you know how to do them, or at least how they are done.
• Even when something happens that indicates that a customer is completely wrong, you treat them with respect. You do your best to come up with a solution on the spot. If you can't, you can escalate it all the way up the chain to the CEO, and be there when the CEO interacts with the customer, so that you can learn.
• Employees are always held accountable for mistakes, because the ultimate goal is excellence.
• Without customers, there isn't a business. Every aspect of your operation needs to reflect respect for customers and to go the extra mile to serve them.
• Know exactly what to do in case of natural disaster or unexpected events, and always put the safety of your customers first.
• Hire good workers who share your values. The managers Tommy hired either reflected these customer-focused beliefs or learned to, or they didn't last. 

I worked for Tommy for several years, both at the customer service desk and as a manager with responsibility for my own department's profit margins, before moving off into a different business, and I've never forgotten those early lessons, nor the CEO I learned them from. And, by the way, that operation was the most successful and profitable of its kind in North America at that time. (It is still running, by the way.) People traveled for miles, bypassing many alternatives, to do business there, because the goods, layout, selection, technology and people all were put together with the customer in mind. Thank you, Tommy.

Where did you learn about customer service? Who was your mentor?

Give it some thought.

Losing Steve Jobs

Steve Jobs wanted to change the world. I believe that he did.

There was a huge round of blog posts when Steve stepped down from the CEO position, a move that few mistook as anything but a sign that his health was very, very bad. I was, to tell the truth, a little angry about all the accolades begin showered on Mr. Jobs. It wasn't that I didn't feel that the praise was very well deserved; I just wondered where all this sentiment was for all his years at Apple, and during his time away. The fire was there all the time, but many felt the need to belittle it or write it off as some kind of fringe behavior.

It was obvious to many of us that Steve and the products he talked so persuasively about were something special, and that he would, in fact, change the way we use computers, the way we listen to music, the things we can do on the phone, and the way we think of animated movies. (Yes--that little company called Pixar was Steve, too.)

Now since this is primarily a blog about customer service, I would be remiss if I did not point out how important customers were in Steve's mind. Don't think so? Take a look at his 1997 Macworld Expo keynote  and pay extra close attention at around  22:30. Steve says that Apple's customers are its most important core asset, reveals that he calls the support line himself, and doesn't like being kept on hold. One of the very first things Steve did at the beginning of the monumental task of turning Apple around was to focus on customers. I remember it, because I was there, as I so often was. I developed immense respect for the brand and its champions, the greatest of whom was Mr. Jobs. 

And let's not forget one of the other big things: Steve changed the way we present, if we present well. I've had the pleasure to see many great speakers, but no one ever came close to Steve doing one of his keynotes. His beautifully simple slide shows (using Apple's Keynote, so please don't call them "PowerPoint") showed me the great value of using white type on a dark background: The words themselves give out the light your eyes are seeking, and so you are drawn to the words, not some fancy background. Brilliant, and all presenters (and corporate template designers) should take note. Combining Steve's low-key, dark clothing and incredible persuasive power, Steve's talks were amazing.

Some years ago, I heard Sting say that the definition of charisma was the ability to stand still and silent and hold people's attention. Steve had it.

 

I was lucky enough to be associated with Apple through the Apple Solution Experts and Apple Consultants Network. Before OS X arrived, I was a beta tester, and went through OS X "boot camp" in advance of its public release. I often worked the Apple Help Desk at Macworld, along with other ACN members. When Apple started issuing technical certifications, I was one of the first to earn "ACTC" - Apple Certified Technical Coordinator. I was also an Apple User Groups Northeast Regional Liaison, and was talking in 2003, as this writeup from Macworld shows, about what is now called "social IT" - having user groups as a first line of contact to resolve questions and issues before picking up the phone to anyone else.

Were it not for Mr. Jobs, I might not have been part of the great Apple community and would not have been thinking along those lines. I'm no longer a professional "Mac Geek" but I will always be partial to the design and function of Apple's technology, driven from the insight of Steve Jobs.

I have no doubt that Steve Jobs changed the world, because he certainly helped to change mine, and that's all I have to go by. Thank you, Steve.