Pricing Strategy: Don’t Lower Prices – Create Value Packages.

While not an advocate for lowering prices, sometimes it is necessary. One strategy smart companies are doing to lower prices is to create value added packages. They may lose revenue on a product while at the same time picking up revenue in another. For example, in the restaurant business TGI Fridays has created several value meals priced at $10.00. Applebee’s has done the same thing with two appetizers and two entrée’s for $20.00. These are price promotions that get guests into their restaurants. Once there, the guests still buy drinks and order other items on the menu. A good server can help create an even better dining experience by suggestive selling, also known as up-selling (which can work in virtually any business for any product).

In the end, you still have to create a great customer service experience. The value meal may get them in the door. The experience brings them back!

Book Recommendations: I love great books. My buddy Ron Karr just wrote a fantastic sales book titled “Lead, Sell or Get Out of the Way.” Competition is intense, and if you don’t take a leadership role in producing results for your clients and customers, someone else well. This book examines the seven leadership traits that top producing sales people count on for their success. Ron outlines a process based on the idea that great sellers lead relationships in the same way that great leaders sell ideas. Go to www.LeadSellOrGetOutOfTheWay.com.


Cult Update: Last week my new book, The Cult of the Customer, became the #1 business book on Amazon.com. Thanks for those who have joined the Cult (bought the book). You are on your way to starting your own Amazement Revolution. If you haven’t already joined, go to www.CultOfTheCustomer.com and order your copy today.


Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

"The Cult of the Customer" Hits Amazon Best-Seller List

Exciting news. "The Cult of the Customer" hit #1 on Amazon.com's business, customer service and marketing best-seller list and # 2 on the overall Amazon.com best-seller list. Get more information on this book at www.CultOfTheCustomer.com.

Constantly Upgrade

This ties into consistency; always trying to be your best. To take it a step further – to the “next level.”, always try and “notch it up.” Steve Wynn, the Las Vegas businessman has a philosophy that every project he does has to be better than the last one. In Vegas he went from the Golden Nugget, to Treasure Island, to the Mirage, to the Bellagio, to the Wynn and recently the Encore. Each time it was his goal to make the new hotel and resort better than the last. Think about how you can incorporate Steve Wynn’s philosophy into your business. What can you do to be better than before? The ultimate is when you are so good at what you do that just meeting the customer’s expectations will make them say… “Amazing!”

Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Two Customer Lessons That Work In a Tough Economy

April 6, 2009 is the official release date of my new book, “The Cult of the Customer.” Here are a couple of strategies from the book that will help a company be successful, even in this tough economy.

1. The first idea is a twist on "The Golden Rule." Treat employees like you want the customer treated – maybe even better. (This is one of my favorites and I’ve been preaching it for a long time.) Customer service is not just on the front line. It starts inside an organization, and it starts at the top. Be an example of the behavior you want employees to exhibit to their customers and their fellow employees.

2. Recognize that a satisfied customer (and employee) is not a loyal customer. This is a big mistake many companies make; thinking that they want satisfied customers. “Satisfactory” is a rating – and an average rating at that. Loyalty is more of a bond, even an emotion – a feeling that a customer or employee gets from consistent positive customer experiences and a feeling of confidence about the company. Focus on being better than satisfactory – better than average. Be so good that customers and employees become loyal - so good that they become evangelists!

Coming April 2009 – The Cult of the Customer by Shep Hyken

The Cult of the Customer – How to Create an Amazing Customer Experience That Turns Satisfied Customers into Customer Evangelists by Shep Hyken will be released in April 2009. (Published by Wiley, hardback and 256 pages.) What happens on the inside of your company is what your customer will experience. Is your company in “alignment?” Does every employee understand the vision? Do employees love their jobs? This book is filled with lessons, strategies and case studies that will show you how to build a customer service culture that will make your customers (and employees) say, “Wow!” Pre-order today and you will receive a number of special gifts. Go to www.CultoftheCustomer.com/pre-order.

Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Book Recommendations 

For this posting I want to tell you about a new book written by my friend and colleague Scott McKain titled, The Collapse of Distinction: Creating Differentiation In a Cluttered Marketplace.  Scott is a successful speaker, author and businessman who is admired by some of the top business leaders in corporate America.  This book will help you understand the reasons behind what Scott calls “the current quagmire of stifling sameness.”  Can your customers differentiate between you and your competition?  Scott will reveal the keys to standing out in today’s marketplace.  When people zig, you need to zag.  Today, more than ever you have the opportunity to do so.  Companies are pulling back, which is the perfect opportunity for you to make more calls, talk to more clients and come up with more new ideas.

The Collapse of Distinction gets my highest recommendation.   My suggestion is to go to Amazon and buy it today!

By the way, don’t forget to buy my new book if you haven’t already done so.  , The Cult of the Customer – How to Create an Amazing Customer Experience That Turns Satisfied Customers into Customer Evangelists, will be available on April 6, 2009.  You can pre-order it now at www.CultOfTheCustomer.com/pre-order.

Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees.  For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com  –  Web: www.hyken.com  –  Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Crazy Customer Service and Marketing Idea

Zappos.com continues to amaze me – in a great way. They pay employees to leave if they aren’t happy. They create a culture of WOW both inside and outside of their organization. Every employee contributes an essay to a book/anthology that Zappos.com has published about their culture. They are truly operating at the Cult of Amazement!

Now they have done something really cool – and crazy. They are selling a t-shirt for a whopping $50,000 (Not a typo). The t-shirt says: Cease and Desist!

The $50,000 cost goes toward Zappos.com honoring the Cease and Desist message on the t-shirt, ensuring that the customer’s spouse or significant other will be banned from buying anything from the Zappos.com ever again. A press release put out by the company said there were a “tsunami of calls received in 2008 by the Zappos.com Customer Loyalty Team from spouses of loyal customers lamenting that the web site was causing relationship and financial strains.”

Sounds crazy, doesn’t it. Crazy, but serious! And, fun! This is exactly the creative thinking that has made Zappos.com a rock star in the customer service and experience world.

What’s the lesson? Get crazy. Come up with wild ideas that focus on your customers. You might find one that works – or gets you great publicity.

Coming in April 2009 – The Cult of the Customer by Shep Hyken

Announcing a new book! The Cult of the Customer – How to Create an Amazing Customer Experience That Turns Satisfied Customers into Customer Evangelists by Shep Hyken will be released in April 2009. (Published by Wiley, hardback and 256 pages.) What happens on the inside of your company is what your customer will experience. Is your company in “alignment?” Does every employee understand the vision? Do employees love their jobs? This book is filled with lessons, strategies and case studies that will show you how to build a customer service culture that will make your customers (and employees) say, “Wow!” Pre-order today and you will receive a number of special gifts. Go to www.CultoftheCustomer.com.


Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Happy New Year - A Double Blog Post (Some Personal, Some Business)

For my first blog post of the year, I want to be motivational versus typical business.

“Fun is my revenge against mortality.”
-- Dustin Hoffman

The above quote ties into an article I just wrote for The Shepard Letter. (You can sign up at no charge at www.hyken.com.) This article was based on Randy Pausch’s Last Lecture. Randy was a college professor and was told he had six months to live, so he eventually presented what was literally his last lecture. It was very inspirational and even though I have every intention of living until a very old age, he inspired me to write my own version of a “last lecture.” The Dustin Hoffman quote above summarizes one of my lifetime strategies, which has to do with “experiencing” life. Are you experiencing life, or just making your way through it?

I’ve written my ten so-called lifetime strategies. To read the full article, go to http://www.hyken.com/article-sl-120-my-last-lecture.html.


Now for a quick business story. On a recent flight home from a speaking engagement I met a flight attendant who delivered atrocious service. I somehow was able to disarm her and engage in conversation. It was obvious she hated her employer. Apparently, for them to survive, they had to cut salaries by 30%. And, even though they are losing money every month, she still thinks it is unfair.

I can’t disagree with her. Sometimes life isn’t fair. And, a company sometimes has to do what is necessary to stay afloat. I reminded her that she still had a job. Her anger was interfering with her responsibilities. First and foremost, she was there for our safety. Second, she was to take care of the passengers in a manner that was professional and pleasant. After all, she was on the front line, and the face of the airline.

Her comment was this, “They cut my salary by 30%. I’m going to do 30% less.”

She will eventually quit or get fired. And then she’ll find another job. I already feel bad for her next employer.

Keep this in mind. Every employee needs to be an extension of your sales or marketing department. Make it a job requirement. It is a non-negotiable responsibility.

Coming in April 2009 – The Cult of the Customer by Shep Hyken

Announcing a new book! The Cult of the Customer – How to Create an Amazing Customer Experience That Turns Satisfied Customers into Customer Evangelists by Shep Hyken will be released in April 2009. (Published by Wiley, hardback and 256 pages.) What happens on the inside of your company is what your customer will experience. Is your company in “alignment?” Does every employee understand the vision? Do employees love their jobs? This book is filled with lessons, strategies and case studies that will show you how to build a customer service culture that will make your customers (and employees) say, “Wow!” Pre-order today and you will receive a number of special gifts. Go to www.CultoftheCustomer.com.


Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

How Easy Is It to Buy From You?

How many ways can your customers buy what it is that you sell?

Domino’s just announced a new way to order pizza. Up until recently, there were three ways you could order a Domino’s pizza; place your order on the phone, on their website or on location. Now if you own a TiVo digital video recorder, you can now order a pizza direct from your TV. When customers see a Domino’s ad, they will be able to click “I want it” from their TV (TiVo) remote control. In about 30 minutes a piping hot Domino’s pizza will be delivered.

The lesson: Look for non-traditional ways/channels of selling your products or services. Options make it easier for customers to buy from you.

Coming in April 2009 – The Cult of the Customer by Shep Hyken

Announcing a new book! The Cult of the Customer – How to Create an Amazing Customer Experience That Turns Satisfied Customers into Customer Evangelists by Shep Hyken will be released in April 2009. (Published by Wiley, hardback and 256 pages.) What happens on the inside of your company is what your customer will experience. Is your company in “alignment?” Does every employee understand the vision? Do employees love their jobs? This book is filled with lessons, strategies and case studies that will show you how to build a customer service culture that will make your customers (and employees) say, “Wow!” Pre-order today and you will receive a number of special gifts. Go to www.CultoftheCustomer.com.


Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Customer Service Prevents Crime

A number of years ago I worked with the convenience store chain of Atlantic Richfield Oil. One of the strategies I presented to their managers was that delivering great customer service prevents robberies. As soon as the customer walks in, the employees should look at him/her and give them a warm greeting. This was supported and approved by some of the Atlantic Richfield security executives, who were former Los Angeles Policemen.

I just read an article by the Associated Press that reinforces this concept. It seems that two banks in Seattle, WA thwarted a robber by giving him great service. In short, a bank employee at First Mutual noted suspicious behavior from a “customer” entering the bank. Upon greeting him, the bank employee asked if he could help him at his desk. The man quickly left.

The employee of First Mutual called nearby banks to alert them of this suspicious character. Sure enough, the would-be robber showed up at a nearby US Bank branch. Using the same strategy, the man left.

It turns out that this man is the chief suspect in a bank robbery from just a few days prior.

“If a person is a legitimate customer, they will experience superior service,” FBI Special Agent Larry Carr told The Seattle Times. “If their intention, however, is to rob the bank, they will experience paranoia, anxiety and a desire to escape.”

If your company operates in a retail environment, good customer service can do more than just earn you repeat business. It can create a safer environment for your employees.


Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Practice Confidence Building Habits

People like to be around people they know they like and they trust. It can take quite a while for someone to really know and like you, let alone trust you. However, it can take just a moment to create a negative impression that quickly erodes confidence. One way to build a relationship is to practice confidence building habits. Here are four simple confidence building habits that will help you build an even stronger relationship with your customers as well as the people you work with.

1. Be polite – Say please and thank you. Be nice to people.
2. Do what you say you will do. If you don’t, it is the quickest way to erode confidence in you and your abilities.
3. Don’t blame failure on others. It shows you are out of control. Take accountability for what happens around you.
4. Be on time. Being late shows disrespect for others’ time.

Sounds simple, doesn’t it? Well, they are which is why there is no excuse not to make a habit of them.

Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Domino’s Selling More than Pizza

Not long ago I read an article about how Dominos is now selling more than pizza. They have added sandwiches to their menu. This is their response to slipping sales, which might be happening because of the economy or the competition. Great idea, and here is my take on it.

How many times have you heard companies lowering their prices to combat slumping sales? Now, the company has to sell more to make the same profit, if they are making a profit at all.

Lesson: What Dominos has done is added value to the customer by giving them more menu choices – not by cutting prices. People know of Dominos good reputation. Dominos has worked hard to develop a reputable brand. Because of that reputation, customers may be willing to try the new sandwiches. I’ll bet they are pretty darn good.

Hey, I’m hungry. Time to order lunch. I think it will be a Dominos sub sandwich!

Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

In the Spirit of Service

This is a little diversion from my typical customer service postings. While this is not customer service, it is service, just in a different way.

Earlier this week I had the honor of being inducted into the National Speakers Association Speaker Hall of Fame. It was quite a night and my acceptance speech was focused on what I term Intentional Significance.

After 25 years in the speaking business I found myself thinking about the contributions I’ve made to my clients, my family and the community/world. I hope that I have been significant.

Two people in my industry have impacted my thinking on this. My friend Naomi Rhode has been talking about being significant for years. Another friend, Nido Qubein, taught me about being intentional in business. And it just so happens, that Nido is one of the most philanthropic people I have ever met. When I combine the two of their lessons, I came up with Intentional Significance.

Intentional Significance is looking for opportunities to make a difference in our community, if not the world. It can be in the form of time, talent and dollars. Where can you be more significant to the people you work with, your family – and people you may not even know. Most people wait until others ask. They are responders, and there is nothing wrong with that. Think about being more pro-active – or intentional. Look for opportunities to give and/or volunteer.

A gift for you!

I have the honor of working with Wendy Gillett and seven other Customer Service Experts to deliver a series of weekly seminars. Every Wednesday, starting on September 3, you can participate in these 20-30 minute online seminars. There is no charge to participate, however once the series is completed, they will be put into a CD as a set that will be for sale. So, be sure to sign up now. Just click on: Customer Service Seminar – Online. See you online!

Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Jet Blue Executive Sets Leadership Example

Just back from the National Speakers Association meeting in New York. I had the privilege of hearing David Barger, the CEO of Jet Blue, speak about his company. He is a fascinating man, and in the wake of all of the turmoil in the airline industry, he is a model example of leadership.

If you want your people to deliver excellent customer service, you must focus on the inside first. Mr. Barger has done that in a big way. His comments reflected his commitment to his employees. Get this. While other airlines are doing mandatory layoffs, Jet Blue’s layoffs are on a voluntary basis. Mr. Barger has even taken a 50% salary cut for the rest of the year, showing his employees that he is walking his talk. He sets the example. The employees follow suit with innovative ideas to save money, be more efficient, deliver excellent customer service and more.

A gift for you!

I have the honor of working with Wendy Gillett and seven other Customer Service Experts to deliver a series of weekly seminars. Every Wednesday, starting on September 3, you can participate in these 20-30 minute online seminars. There is no charge to participate, however once the series is completed, they will be put into a CD as a set that will be for sale. So, be sure to sign up now. Just click here: Customer Service Seminar – Online. Once on the site, sign up for the weekly tips (upper right hand side of the website) and you will be sent the invitation to the weekly seminars. See you online!

Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Tough Economic Times Make the Best Look Bad

Recently the headlines of the business section of local paper read:

Starbucks Now Shuttering 600 Stores

Could Starbucks be going out of business? I thought Starbucks was impenetrable – a super company that could weather any storm and continue to grow at an incredible rate. At the end of March 2008, Starbucks had more than 16,000 stores. Can they all be profitable? It would be nice. Can’t Starbucks shed the money losers without news headlines making it sound like the company might be going under?

Starbucks is blaming some of the store closings on the economy. That’s okay. It’s a good excuse. Here is what I think will happen. Starbucks will continue to play at the top of their game – delivering an excellent cup of coffee with and exceptional customer experience. They know what’s important and realize they can’t slack off because of the economy. That doesn’t mean they have to keep stores that are not meeting revenue standards. All of this is simply smart business.

Watch Starbucks. Even in tough times, Starbucks will continue to teach us great lessons in business.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Customer Service Shows Up Green… For the Environment and the Bottom Line

According to a recent article by Peter Healy of the Advocate, Pitney Bowes, of postage meter fame, clams to have saved almost $3 million in fuel costs over the last couple of years due to delivering better service.

How did they do it? They consolidated customer service calls. In other words, they solved more calls in one service visit, avoiding a second or third trip to a customer’s location.

According to the article, John Thaler, Pitney Bowes’ director of process excellence, environmental health and safety plugged the numbers into a US Environmental Protection Agency software program. The company saved approximately 1,504 vehicle trips, which means a savings of 932,009 gallons of gas. At $3/gallon (now $4), that is just under $3 million in savings.

Furthermore, for those who are environmentally green minded, less trips reduced carbon dioxide emissions by about 8,211 metric tons nationwide.

Look for cost savings opportunities through customer service efforts. Be careful as sometimes an increase in efficiency can hurt a customer service effort. Pitney Bowes showed the opposite. They delivered better service and in the process helped the environment and their bottom line.

Sometimes good customer service makes sense – and cents. Or, should I say dollars.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

More on Paying For Customer Service

My last blog entry was about how Air Canada was charging extra if you wanted better service. Well, they are not the only ones charging more to get better customer service.

According to Vito Pilieci, writing in The Ottawa Citizen, Dell recently announced that they are dividing their support into two groups; India support versus North American support. If the customer is willing to pay a little more, they can be guaranteed to reach a North American tech support person instead of their Indian counterparts. It appears that Dell is promising you won’t get the “accent” if you pay more. Pilieci, writing in The Ottawa Citizen, Dell is calling this a “premium support” service plan.

Now, a quick disclaimer. I don’t want this to sound like I’m slamming Dell. I like Dell computers. All of our desktops and servers are Dell Computers. I’ve had good luck with them and find their support to be very good. However, I’m concerned for them. This could be a PR blunder. Similar to my take on Air Canada, I don’t think that Dell is admitting to giving bad service. They just want to give their customers an option to a better/different level of service. However, that is not the way it is coming across.

General comments from consumers buying across many different industries have complained about hard to understand accents from call center customer service reps. Opinion Research Corp. reported February 2008 that 20% of US customers polled cited “hard to understand representatives with thick accents” as their biggest frustration in dealing with customer service departments.

So, it appears that if I want a Dell computer, and I want “premium” service, I’ll have to pay more. It’s one thing to pay for an extended service warranty. It is another to pay to be able to understand the customer service representative giving me support. (Is that what they are communicating?)

Years ago I remember a salesman telling I can choose two out of three options: low price, a quality product and great service.

He thought that he was making a joke. Apparently not!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Want Good Service? Then Pay for It!

The airline industry, for the most part, has trashed their reputation for good service. I actually have written that you can treat me like dirt, just get me to where I’m supposed to be on time and I’ll probably fly on your airline again. The airlines, on their own, have defined good service as reliable versus the way the passenger is treated.

Okay, there are some exceptions. And, the experience I have on my airline of choice is that they will sometimes deliver exceptional service (and sometimes not so exceptional). What if the airlines said, “Pay us a little extra, and we’ll give you better service.”?

That is exactly what Air Canada did with a service they call “On My Way.” If passengers are willing to pay an extra $25 on shorter flights and $35 for longer ones, Air Canada will give them access to a number will specially trained customer service representatives. There also seems to be an insurance component to the fee. If your flight is cancelled or delayed, Air Canada promises the passenger a “worry free” experience. They will assist the passenger in rebooking flights that are cancelled, delayed, etc. to the next available flight and, if necessary, pay for overnight lodging, even when it is not the airlines fault (weather related).

Here’s my take. On the surface it looks like Air Canada is charging more for good service. The good service is something the airlines (or any company) should do anyway. I think it is a mistake to advertise that essentially, if you pay an additional service charge per flight, you get better service. The reality is that what Air Canada is really selling is insurance, and I get it. However, maybe the message shouldn’t be confused. Good service is one thing. Insurance is another.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Fun, Fun, Fun!

I had a great opportunity recently to work with a company for an employee meeting. U-Gas and Dirt Cheap (same company) is a convenience store and liquor store chain based in St. Louis. Part of their mission is that they create a fun place, not just for the employees but also the customers. They want their customers to have fun!

They have business cards that have “Fun! Fun! Fun!” written across the top. They give away heart shaped candy to customers on Valentine Day. They give away Mardi-Gras beads during Mardi-Gras. You get the idea. Customers have fun when they shop at U-Gas and Dirt Cheap – and so do the employees!

So how does the fun factor into their success? People like to come back. That’s what U-Gas and Dirt Cheap strive for. They want their customers to love to do business with them. They work hard at keeping the employees motivated and incorporate fun programs that make the customers want to come back.

There are lots of strategies you can and should incorporate into your customer experience strategy, and FUN could be a good one!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Customer Service and Product Knowledge Training for Starbucks Doesn’t Cost. It Pays!

Last week Starbucks closed down their stores – all of their stores in North America – that’s approximately 7,000 stores – for a three hour period. Why? Because Howard Schultz, the CEO, wanted to do a special training for all of the employees on how to make that perfect cup of coffee. That coupled with some customer service training made for a powerful three hour session. Mr. Schultz wanted his people to get back to basics and make sure they understood that the root of their basic product success is a great cup of coffee and outstanding customer service.

What did it cost for Starbucks to close their stores for three hours? What did it cost to rally all of the employees together during this time? Every employee was invited to participate in the training, and they were paid. A bigger question would be, what would it cost if they didn’t do the training?

Mr. Schultz has his eye on the ball. He knows what is important. He understands what the business has to do to be competitive and stay on top. He knows that if he doesn’t spend the money to train his people, it will cost him much more down the road.

Starbucks is a legend in the world of quality and customer service. The above is just one example of why. Sure it may cost to train employees, but it cost more not to!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Lousy Rules – Lousy Decisions

I’ve always been against a corporate rule or policy that punishes or inconveniences innocent or honest customers. Every once in a while I’ll hear about a policy that was made as a result of one or two bad incidents that ruins it for the rest of us.

I just read a somewhat humorous article in the St. Louis Post dispatch, October 6, 2007 edition. It seems that Delta Air Lines told one of their passengers that she would have to buy two tickets for her conjoined one-year-old twins. The little infants could fit in one seat, but Delta’s position was that if there was an emergency that required oxygen masks, each child would need their own masks. I actually agree with this. But the humorous part of the article stated, “Presumably the principle goes, jeez, if we gave you a break think of all the masses of infant conjoined twins who’ll be trying to ride on one ticket.”

Focus on the good customers, not the bad ones. Make it easy on your good customers, and don’t “punish” them because a few bad people took advantage of you. No matter what rules you put in place, the “bad people” will always work to find a way around them.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Bring the Enthusiasm and We’ll Teach You the Rest of What You Need

I just read an advertisement for employment from HSBC in the UK. They placed help wanted advertisement for a customer service representative. Part of the ad read:

“What’s most important is your passion for delivering top-notch customer service. Bring us enthusiasm, and we’ll provide you with all the additional training and mentoring you might need.”

There it is - the old theory that we can hire the attitude and train the skill. HSBC gets it. They are hiring people to be on the front line, taking phone calls from customers. The employee has to have the attitude or no matter how knowledgeable he/she is, the customer is not going to have a high-end pleasant experience.

Most customers want what they ask for and need, and they also want the experience to be positive. The best companies know it takes both sides to create an excellent experience that can eventually lead to loyalty.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Customer Inertia Is Not Customer Loyalty

Does your customer really want to do business with you?

An audience member came up to me after one of my speaking programs and made a very smart comment. She said, “Don’t confuse customer inertia with customer loyalty.”

I wasn’t sure what she meant by customer inertia. She explained that in her industry it is sometimes easier for customers to put up with a mediocre vendor rather than go to the difficulty of switching to another. Customers just tend to put up with poor service and results, as long as it doesn’t get too bad. They just keep “rolling” along. That’s the inertia she was talking about.

Yet in most businesses it is easy to switch to a new vendor/supplier. The customer just disappears. No complaints. Just one day someone notices (or not) that a customer isn’t doing business with them anymore. The customer may have left for a number of reasons from competitive issues, such as pricing, to customer service issues, such as indifference.

You don’t want customers to stay with you just because it is easier. You want them to stay because they want to. Because you are that good!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Incompetence Erodes Confidence and More

(An Excellent Customer Service Lesson)

Today I was flying home from a speaking engagement. As I looked at the airport monitors to confirm my flight was on time, and the monitor indicated it was. Directly next to the departing flight schedule was the arriving flight schedule. On that monitor it indicated that the plane that we were going to be using for our flight was an hour late coming in. That would make us late.

I asked our gate agent which information I should believe. He knew I was joking and he laughed. We ended up being almost two hours delayed.

What intrigues me enough to write this short article is that everyone I asked about the flight said we were on time. No one knew – at least no one that I talked to from the airlines. I think it is incompetence. Not from the people I talked to, but from the people who inform, or are supposed to inform, the people I talked to.

These types of incidents on the airlines have been happening to me for years. And, it doesn’t matter which airline it is. They all seem to do it. So, I find myself always checking and double checking the information that some very nice people are willing to tell me. In other words, I lack confidence in them. It isn’t because these people are incompetent. However, the system which operates behind the scenes, and perhaps this is a bit harsh to say, is incompetent. Unfortunately, this reflects on the frontline personnel, are doing the best job they can.

At the end of the day, incompetence leads to lack of confidence. Lack of confidence erodes customer loyalty. And lack of loyalty works against the function of virtually any business, which is to get and keep your customers.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Thank You, Thank You, Thank You!

This week something strange happened. I received three personal thank you notes. I seldom received thank you notes at all, so this was special. One was from a guy that sold me shoes. (Can you guess what store? If you said Nordstrom’s you were right!) Another note came from a software company that we just started doing business with. And, another came from Dave Rubel, a guy I’ve written about in the past, who has a company called Send Out Cards, thanking me for a referral.

By the way, it is only Wednesday. Three cards in three business days. This is strange – also special. Too bad it is strange. It should be normal. The art of mailing a note or card is lost. Some of us email thank you “notes” to people. Some of us pick up the phone and call. I’m not saying either of those are bad ways to thank people. Anytime you acknowledge someone is nice, no matter how you do it. But the art of the mailed note, while not quite lost, is definitely rare.

Writing a note is sometimes inconvenient. First, you have to take the time. Oh, you also have to have the stationary or go to the store to buy a card. Then you write a note, address the envelope, put a stamp on it and drop it in a mailbox. That seems like a lot compared to just picking up the phone or shooting out a quick email. Yet, just a little extra effort to mail a note, card or letter makes such a great impression.

Here’s a tip. I’ve written about Dave Rubel’s company before. He has a wonderful “on-line” business that allows you to find a card you want on a website, type it up with as much of a personal message as you can fit inside a card, and then it is automatically mailed, with a real postage stamp to whoever you want to send it to. And, it is not limited to just thank you cards. Any kind of cards – and they have thousands to choose from. They have a look and feel of a personal card. You can even send your own handwriting samples, so the cards look written in your handwriting! Pretty cool! Go to www.SendOutCards.com/daverubel to find out more about this program.

So before I sign off today, even though it isn’t a thank you note, let me say, “Thank you!” for reading this blog!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

The Last Impression

I had just landed at the St. Louis airport after a long business trip. No flight delays meant a good travel experience. This was one of the few times I checked luggage, so the only thing left to do was to pick up my suitcase at the baggage claim area.

So, how long is too long to wait for luggage? Anything less than fifteen or twenty minutes is impressive. My opinion is a half-hour is okay, at least for me. This time I waited 50 minutes. Once we got past my acceptable half-hour, I started to get frustrated and eventually aggravated. What had been a good flight was now ruined by the last impression.

People say the first impression is important. I would say that equally important is the last impression. The last impression is a lasting impression!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Do You Hear What I’m Saying

Last night I was working in Phoenix with a client. I was fortunate to be invited to their dinner, which happened to be at a very nice restaurant that is known for its world-class service.

Prior to dinner, the servers were passing appetizers. One looked particularly good, and I asked if it had mushrooms. The server said, “Yes.” I replied, “I’m not a mushroom guy, so I’ll pass.”

My client, who was next to me during this brief encounter looked at me and said, “Let’s see if they get it.” What he was referring to was if the server would go back and ask the chef to prepare one or two appetizers without the mushrooms. I told my client that we shouldn’t expect it. He had hope, but I was right.

If this was such a world-class restaurant, known for service, they should pick up on their guests’ comments. It is their job to listen and not just respond, but also impress. This was a missed opportunity for the restaurant.

Several weeks ago I was flying home from a speech. I had my free upgrade to first class and was enjoying lunch. For dessert they were serving warm chocolate chip cookies. There were a lot of extras, as there were only a few people in the first class cabin. I asked the flight attendant if there were extra cookies. He said yes and walked away. I never got the cookies, and actually watched him throw the extras away.

In both cases, the server and the flight attendant didn’t hear what I was saying – or more specifically, requesting. While the mushroom example was a bit subtle, the cookie example was pretty obvious.

The lesson: Listen to what customers are saying. Read between the lines. Look for opportunities to respond to the obvious and sometimes the subtle comments your customers make. These may even be opportunities to impress and create world-class service.

As the guy on the Verizon commercial says, “Can you hear me now?”

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Customer Service Sometimes Isn’t Customer Service

They call it customer service, but sometimes it isn’t. Sometimes it is a department that calls themselves “Customer Service,” but sometimes they aren’t. Sometimes it is a system – that sometimes doesn’t work. You try calling them and are placed into an automated system that makes you believe that you will eventually talk to a customer service representative. What sometimes happens is that you get frustrated, hang up and start over, hoping again you will talk to a live person. Then, just about the time you think you are getting connected, a recording comes on telling you how long your wait will be. Sometimes it is 30 minutes, 40 minutes or even longer. Has this happened to you?

And, this is what some companies call “customer service!”

Earlier this year I had the wonderful opportunity to work with Verizon Wireless and their call centers. Their goal is to answer the phone within a surprisingly short period of time, and they usually do. That strategy, along with a focus on “one call resolution” helps create loyal customers. Why? Because, they create a pleasant experience, which creates confidence, and ultimately can lead to customer loyalty.

Unfortunately, I am finding the Verizon example to be the exception, rather than the norm, when it comes to the customer support some companies are delivering. Too many companies and people think they are delivering customer service, but sometimes they aren’t. How about you? I hope so!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Do You Know Your Numbers

Last year Stravity Group shared the results of a customer experience management study. Here are the questions? Do you know the answers for your business?

QUESTION: Do you know the average annual value of a customer to your business?

12.9% of the executives surveyed knew. 87.1% didn’t know!

QUESTION: Do you know the cost of a customer complaint to your business?

9.7% of the executives surveyed knew. 90.3% didn’t know!

QUESTION: Do you know the cost of acquiring a new customer?

8.6% of the executives surveyed knew. 91.4% didn’t know.

I knew the answers to two out of three for my business. How about you? If you don’t know, find out. You can learn a lot from the numbers!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here

IRS Rates Better Than Airlines

I just read a fascinating article posted by Tom Barlow. The headline read: IRS rated better for customer service than airlines. This is confirmed by the first quarter 2007 study conducted by the University of Michigan.

I smiled. Even chuckled. This struck me as funny. I think of the IRS as the tax collector. I’ve always tried to believe myself that paying taxes is should be a happy event. The more I pay, the more I made. Still, I hate paying taxes. And, the few encounters I’ve had with the IRS and their auditors weren’t what I would call fun. Still, these people treated me with dignity and respect. They were, after all, just doing their job.

The airlines on the other hand… Don’t get me started. The Miami Herald posted an article on May 14, 2007 that the major airlines were elevating customer service. I’m from Missouri, the Show Me state. So show me! The airlines claim new planes, cleaner planes, in-flight entertainment, better systems and more are being implemented. It seems that the bigger airlines are seeing some positive cash flow and using it to increase customer service.

Still, the airlines have a long way to go to get back to where they were in their glory days. Due to the poor service, people have come to expect very little from the airlines. Their efforts will go unnoticed until they are consistent, and not sporadic.

So, until the airlines ascend to the new heights they hope to reach, they will have to live with the fact the American Customer Satisfaction Survey by the University of Michigan has them lagging behind the IRS.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Customer Service Book Recommendation

My last post on this blog was about creating loyalty with service and confidence. In the April issue of The Shepard Letter, I wrote a longer version of this article. I also mentioned a book, which I feel is worth telling you about here.

My buddy and fellow speaker, John DiJulius has written an excellent book titled, “Secret Service.” This book is about the behind the scenes “secret” systems that will help you create unforgettable service.

John owns salons and spas that are recognized for their dedication to wowing his clients. Beyond the interaction the client has with his wonderful staff, he has put into place various systems that help create great service, client confidence and ultimately, loyalty. The book is filled with strategies and his business is a case study to back them up. I highly recommend you visit his site, sign up for his free newsletter and buy his book. The link is: http://www.johndijulius.com/products.htm. Enjoy!

And, don’t forget to email me your answer to the question:

What do you do to create confidence for your customers and employees?

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

How Do You Create Customer Confidence?

I just wrote an article for my monthly newsletter (The Shepard Letter) about customer loyalty. This is not a copy of the article, rather further explanation of the concept. The article introduced a concept in the form of an equation:

Customer Loyalty = Great Service + Confidence

Sounds simple, and it is. Provide great service and create confidence and you can create loyalty. Hundreds if not thousands of books have been written about how to provide great customer service and loyalty. Not many have been written about confidence, especially as it applies to customer service.

Well, this may be the place the book on confidence starts, even though it is just a few sentences. My belief is that confidence comes first from consistency. Great customer service is an all of the time thing. You can’t be good one day and just okay the next. Inconsistency could be the fastest way to erode customer confidence. So make sure that what you are doing today is good enough to make that customer want to come back to do business with you again the next time they need what you sell.

Now, I have a favor. If I do in fact start to write this book, I want your help. Send me your ideas on how you create confidence with your customers and employees and I will start to compile the ideas. Once the book is written (if it ever is), you will get full credit and receive a copy. Email to shep@hyken.com.

Again, the question is…

What do you do to create confidence for your customers and employees?

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

St. Louis Blues Hockey Organization Sets a Good Example

I’m impressed with Dave Checketts, the new owner of the St. Louis Blues. For those who aren’t into hockey, this is a National Hockey League team that was just sold to new ownership after a player strike that was followed by one of the worst losing records for a professional team.

So, Mr. Checketts stepped up to the plate and bought the team. First thing he did was raise ticket prices. If the fans were mad at the team for such a poor record in the prior season, they were really mad now. The Blues went from having some of the best attendance in the league to one of the worst.

What did Mr. Checketts do? He talked to the fans. He sent out thousands of surveys and believe it or not, many came back. What he found was there were three things that could get the fans back. One is a team that wins. Not necessarily the championship, but one that occasionaly wins. Two is a team that that has a good work ethic. When you lose it’s hard to get motivated. The Blues had to show they wanted to win, at a minimum. Three was ticket prices.

Mr. Checketts said that he wanted the Blues to win and try hard, but that was up to the coach. However the ticket prices were up to him. So, just a few weeks after the surveys went out he started lowering ticket prices. He sent letters to the fans saying that he wanted to earn back their loyalty.

Good for you Mr. Checketts! You stepped up and took ownership of the team – and their problems!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Don’t Bite Off More Than You Can Chew

The other day I was at an airport and had time to grab a pizza prior to the flight. The pizza was supposed to be from a recognizable restaurant chain. While it looked like it should have, it didn’t taste like it should have. It turns out the pizzas are flown in frozen and baked on site. The quality was not what was expected and a bad reflection on the restaurant.

This made me think of a buddy of mine who had a wonderful public relations opportunity when his restaurant was asked to prepare the food for huge special event. Due to the large quantity, he had to prepare the food in advance. When I tasted it at the event, it wasn’t up to the usual quality. He was concerned, and for good reason.There were at least ten thousand people at this event. And, they were sampling food from his restaurant that wasn’t up to his typically high standards. While he should have been elated over the opportunity to showcase his restaurant, he immediately turned scared for the bad impression he might give his potential customers trying out his food for the first time.

The opportunity might have been great, but only if he was prepared for it. You have to know when to say, “No.” Anybody that had heard about this restaurant from the event would hear a mediocre review, at best. That’s bad PR. There is an old saying that sums this up: Don’t bite off more than you can chew.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).