Customer Service - Going the Last Yard, then the Extra Yard
A successful business can only be a master in one of the three crucial areas available.
You are either (a) cost leaders, (b) technology leaders or (c) best in class at customer intimacy. For most small and medium sized businesses, cost and technology leadership is not possible. So, you had better stay close to your customers.
In today’s FMCG world, the consumer demands a relationship and personalised service, regardless of how business is transacted.
A couple of true stories:
On a recent vacation in Spain, I screwed up an ATM transaction and was charged 450 euros for a 400 euro cash travel-card withdrawal. Out of pocket by $95, I unsuccessfully tried to explain to the Spanish bank that I had been ripped off. No, they couldn’t help. Without any chance of winning this one, I also lodged a claim with my local bank. No response. Six months later, I need to renew my travel-card and, very reluctantly, front up to the same bank. It is just too inconvenient to change providers. I mention that I had not received any feedback from my claim. They check and, surprise, they had deposited a refund into a different account a few days after my claim. So, why hadn’t they emailed or called to let me know? I receive a blank stare from the Bank Manager. He also reveals that the bank had made the refund as a goodwill gesture, not knowing which bank in the process had pocketed my 50 euros. The bank had failed to go that last yard and I was unaware that they value my business. Poor execution and almost a lost customer.
Another vacation a few years ago. We arrived in Seattle, but my wife’s luggage was missing. With airline voucher in hand, we fronted up to Nordstrom for some toiletries and cosmetics. My wife mentioned that she was buying all these items because her luggage had gone missing. The server excused herself for no more than a minute and returned with a bag chock full of samples. She said “Spend your voucher on something nice and enjoy Seattle”. She didn’t need to check with her supervisor but had been trained to care for the Nordstrom way. Guess where my wife shops when we are in the U.S.?
We all understand that banks, in their essence, are transactional beasts. And losing my business would not be noticed. However, they spend a lot of money telling us how much they love their customers. CBA spent $453 million on advertising, marketing and loyalty in 2019. Customer facing systems should allow them to successfully retain my loyalty, even, if, deep down, I know that I am just a number. Going the extra yard, however, only occurs from a culture of genuinely placing the customer first. At a time where department stores are retail dinosaurs, Nordstrom has a chance of survival or better with this deeply entrenched culture.
Author: Bernie Bicknell, Partner nem Australasia
This article is based on research and opinion available in the public domain.
CBA Annual report for Year ended June 2019