Service Providers: why trust matters and what you can do to cultivate it (Part II)

In the previous post I set out the importance of trust  especially for services businesses like travel, insurance, banking, media, telecommunications.  In this post I want to share with you the insights that come of the research that Prof. Chris Haliburton and  Adine Poenaru carried out in 201o on the banking, insurance and mobile telecommunications industries – USA and UK.

What matters to customers?

According to the research customers are looking for service providers to level with them by providing high quality, clear, simple to understand communications that provide useful information that avoids unpleasant surprises and enriches the customers lives.  Examples include: keeping policies simple and easy to understand; clear language in policy documents so that customers are not mislead; keep me up to date with all the changes that save customers money; making the pricing more straightforward – easier to understand; letting the customer know as and when there is unusual activity on the customer’s account etc. In my book, customers are asking for service providers to be honest with them – to act with integrity (in the moral sense).

Second, customers are also looking for service providers to make them feel that the company cares for them.  Examples that show this kind of caring include: offering existing customers the same kind of deals that the companies offer new customers; putting customers before profits; doing what they said they would do; providing accurate truthful answers to questions; making customers feel valued etc.  In my book this second dimension is showing benevolence through action rather than lofty mission statements and fine sounding values that are not put into practice.

Third, customers are a looking for courteous conduct and high level of competency from the front-line employees that interact with and serve them.  The kind of things that customers want include: knows my policy inside out; sales people to be honest; dedicated account managers; all front-line staff trained to a high level and knowledgeable about and up-to-date with new plan; courteous and customer focused service etc.  To my mind this need speaks to the rational dimension of trust: credibility, competence and reliability.

How you can cultivate trust: 10 lessons

What can you do to cultivate trust between your organisation and your customers?   Prof. Chris Haliburton and  Adine Poenaru make the following recommendations (paraphrased, added, amended by me):

Deliver the core service right. As previous experience + word of mouth + corporate reputation are the drivers of loyalty then it follows that you must deliver the core service right.  Specifically, it means: meet (perfectly) the basic and core customer needs; actively search for, listen to and act on the voice of your customers (including social media); and manage your corporate reputation.

Get it right when it really matters.  Find out what events and points in the customer journey matter most to customers and get these right.  The literature refers to these as moments of truth.  In the insurance field that is likely to include checking if you are covered, getting treatment pre-authorised, making a claim and getting reimbursed quickly.

Make customer feel that you are looking after them.  A great way of doing this, as mentioned earlier, is to provide information, advice, product and offers that leaves them feeling enriched (better off).  Another way is to provide customers with a choice of channels that they can use to get through to you.  It also means having enough human beings on hand to deal with customer enquires as opposed to putting self-service technology between you and your customers and forcing them to use it.  I had a horrible experience with the Santander IVR today and could not get through to a human being – I do not feel cared for at all.

Ensure your front-line staff embody high standards of competence and ethics (honesty, acting in the customers best interests).

Customise the customer experience.  This means being a ‘sense and respond’ organisation rather than a ‘make customers fit into our standard policies and processees’. It is more than ‘treat different customers differently’ – it includes treating the same customer differently depending on the particular circumstances and emotional needs of the organisation.

Act the best of human: admit mistakes, apologise (genuinely) and fix them.  Whilst compensation is OK it is not enough it falls short of what we expect from considerate human beings (and organisations) – this point is spelt out clearly by James Watson in one of his latest posts and I recommend that you read it.

Improve communications (from the customers perspective) across the board.  Your communications need to bear in mind the needs (and interests) of your customers.  In particular the communications must be speak the language of your customers, be relevant, be concise and above all they must not mislead.  Customers will forgive you for making honest mistakes but they will not forgive you for deceiving them.

Look after your existing customers. This means providing existing customers with the same products, offers, service and attention that you bestow on courting new customers.

Provide simple easy to understand and clear contracts.  Don’t catch your customers out with cleverly crafted contracts written in legalese that your customers will not read and cannot understand.  Do the opposite write fair contracts, spell out the benefits and cons, don’t hide stuff in the small print, and above all write contracts in a language the customers can understand.

More transparency and integrity in pricing.  The opposite of this practice is what the oil, gas and electricity companies do – ramp up prices as soon as wholesale prices go up but be glacial in cutting prices when wholesale prices go down.   A great example of transparency and integrity in pricing was shared by Howard Shultz in his book Put Your Heart Into It – coffee prices tripled almost overnight and Starbucks did not put up prices because they had plenty of coffee in stock.  Starbucks did increase prices eventually (when they had to buy coffee) and they kept these price increases to a minimum and took the time to educate customers why prices were going up. It may be the approach British Gas is taking right now to deal with customer concerns and anger over predatory pricing.

My take on this

Actually my take on the whole topic of trust and how to cultivate it is embedded in this post.  Going further here are some of my thoughts:

Complexity takes a double toll on the customer.  First, it is hard for the customer to find the right (the best) ‘product’ for himself.  Second, it is that much more likely that the customer will be given inaccurate advice by the front-line staff. Why? Because as the ‘product range’ grows and the complexity of the ‘products’ for sale grows (functions, features, terms, conditions, exclusions, excesses etc) it is hard to ensure that the front-line staff actually understand the ‘product range’ and can provide accurate advice.  Knowledgebases don’t help much. Why? How well would you perform if the customer was on the phone or right in front of you?  Would you not feel the stress – the need to respond quickly?  Yes, if you are a normal human you are likely to favour speed over accuracy – to reduce your stress and make your performance targets.

Poorly written communications including ‘product’ literature takes a toll both on the customer and on the front-line.  If it is hard for the customer to understand, is ambiguous or deliberately confusing to the customer then it is likely that it will occur similarly to the front-line especially the people who are new to the job.  That means that the front-line is that much more likely to misunderstand and provide inaccurate answers and advice to customers.  It is also likely to mean that it takes that much longer to train the front-line staff to become competent.

Now that we have the competence dimension out of the way let’s deal with the ethical dimensions of integrity and benevolence.  Is it really news to us, to anyone, that customers want us to be straight with them and treat them as if they matter?  I suspect it is not.  So the challenge is to live – embody – what we already know.  Either the issue is that our society is full of dishonest, uncaring people or there is something about many organisations that turns honest, caring people into people who come across as being dishonest and uncaring.  What do you think?

Customer Experience: what matters most to customers?

Customers are demanding greater product quality in tough times

In my last post I set out the key organisational attributes and barriers that organisations face in excelling at crafting and delivering a positive multichannel customer experience.  But what do customers want?  What matters most to customers?  In Jodie Monger’s latest post she looks at the analysis performed on calls into call-centres (automotive, appliance, electronics indudstries) and points out that customers are demanding greater product quality in tough times.  Specifically, she writes:

  • Economic hardship is causing customers to seek to repair instead of replace products.
  • There is a growing perception on the part of customers that things are no longer “made to last.”

What about efficient customer service and low prices?

I have been reading the Customer Experience Consumer Survey Report published by Econsultancy this month.  Across five industries (Banking, Mobile Phones, Retail, Travel, Gaming) the attributest that matters most to consumers are:

  • Efficient customer service
  • Low priced products;
  • High quality products.

Looking at these responses through the lens of my customer value formula this makes perfect sense. Efficient customer service increases value (for the customer) by reducing the effort involved in dealing with the company (buying, using, troubleshooting).  Low priced products help the customer to make their budget stretch further. And high quality products increase the benefits received by the customer.

Let’s dig a little deeper to see what the variations were for some of the industries.

Banking – what matters to customers?

Mobile Phones – what matters to customers?

Retail – what matters to customers?

Travel – what matters to customers?

Gaming – what matters to customers?

What do I think about the findings?

First of all I find it interesting that customers do not hold out the expectation that companies put their needs first.  I interpret this as customers are living in the real world and they have a pretty good grasp of reality – most companies put their needs first and customers are used to that.  However, that does not mean that you cannot differentiate yourself by putting your customers first.  Remember that consumers were not asking for or expecting coloured computers – when Dell provided them their sales took off.

Second, customers are simply asking and expecting companies to get the basics right.  Provide me with good value (product quality, price) and make it easy for me to do business with you – take the hassle out, save me time.

Third, the ‘fancy’ stuff that so many commentators focus on and which matters most to companies (joined up experience, consistent branding, relevant and timely communications) does not matter that much to customers.

Finally, never take consumer research at face value.  Why?  Because consumers are not that great at figuring out what really drives their purchasing decision and what really influences them.  .  If you were to ask consumers if advertising mattered and influenced them most would probably say no.  Yet, advertising does influence hearts, minds and behaviour. If you spend time counselling people and you will be amazed at how little insight many of us have into our lives – what matters to us, what drives our behaviour.

What are your thoughts?