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Many of you know me as an advocate for the Parts and Service operations within equipment
dealerships. Some of you have attended my sessions at the NTEA conventions. It is from
that perspective, the operational side of dealerships that I write and teach and consult.
It is this group of people within the Parts and Service departments that have more customer
contact than the rest of the business. It is this group that generates the necessary profit
to allow the business to continue operations and be competitive in the marketplace. It
is this group that needs to become more professional and get more market penetration and
higher and higher levels of customer satisfaction and loyalty.
As competition intensifies and product differentiation decreases, the customer increasingly
looks to the “experience” that they have with your dealership as THE thing
that makes the difference. The experience that the customer has with your business has
been aptly named “The Moment of Truth” by Jan Carlzon, when he was Chairman
of SAS (Scandinavian Air Service). He described these moments as “anytime anyone
has the opportunity to make a judgment about the quality of service you provide.” So
who are YOUR Champions? They are the men and women in your Company who interact with and
serve your customers.
John Naisbitt has coined, what I believe will be a new theme for this Customer
Service Age – “As the world becomes more high tech...people crave more high
touch.” Isn’t
that the truth? Think about it: the ATM; Voice Mail, self service gas stations. Many things
have become very impersonal. Yet we are living in an age where people want to be known
as your customer. They want personal attention. They want to be appreciated. To coin a
phrase from an old television show “everyone wants to go to a place where they know
your name.”
Experiences where we receive that kind of personal and attentive service are becoming
more and more difficult to find. For some time now, I have been asking attendees at our
Management Training Seminars to describe experiences that they have personally received
from a supplier that “WOWED” them. It has not proven to be an easy question
to answer. There have not been many illustrations given. What does that tell you? It tells
me that we have stopped recognizing and acknowledging the employees who provide “legendary
service.” We do not know what it means to “delight” our customers. Perhaps,
in our push for productivity, we have forgotten what that means.
Well here’s a simple suggestion. Get a large loose leaf binder and put a BIG BOLD
title of HERO on it. Fill the binder with illustrations where one of your employees has
provided your customer with a “WOW.” From the receptionist to the truck drivers,
everyone who touches your customers will have a story to tell about a case where they
went the “extra mile” to satisfy a customer. Each story should be on one page
in the binder with the employee’s picture. Review these cases with your employees
regularly. Perhaps you will want to acknowledge the HERO of the month.
Leave the binders on the counters in the Service Department, the Parts Department. Have
one in your reception area or anywhere that your customers will be waiting in your store.
Let them read through them. Make sure that there are pictures in the binder of the employees
so that the customer can recognize them when they are being served by one of your heroes.
This simple idea might help turn the experiences that your customer has into extraordinary
ones: experiences that will set you apart; experiences that will make them “apostles” for
your business. After all, isn’t that what we want? Loyal, happy and satisfied
customers. Customers we can serve for life; customers who will keep coming back.
Harvard University did the definitive study in the middle of the 1990’s on customer
service. They developed what they called the “Service Profit Chain”. This
chain starts from “Employee Satisfaction and Loyalty.” Satisfied and knowledgeable
personnel create “Service Value.” This Service Value is what customers feel
and hear and experience when they deal with your company. This Service Value is what creates “Satisfied
and Loyal Customers.” And finally the Satisfied and Loyal Customers create “Profits
and Growth.”
- Employee Satisfaction and Loyalty
- Service Value
- Customer Satisfaction and Loyalty
- Profits and Growth
In fact the study showed that in the Industrial Distribution Business, of which we are
a part, would realize a 45% increase in company profit if there were an increase of 5%
in customer retention. Imagine that, an increase of nearly 50% in company profits.
So who are your heroes? I think it is pretty obvious. It is those hard working people
in parts and service who keep your customers coming back.
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