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Customer service Engagement Marketing

Employees & the Customer Experience: What Companies Can Do

As promised in my last post, here are the findings of Maritz’s 2006 Customer Experience study:

  • Almost half of all customers (43%) who defect do so because of service
  • 77% of these customer blame their leaving on employee attitude
  • 83% of these customers tell someone else.

Maritz’s white paper, “Delight or Defection: The Pivotal Role of People Inside the Customer Experience,” also outlines its approach on how companies can positively impact employee behavior:

  • Better (deeper) measurement of the customer experience:
  • Localized, “grass-roots” intervention (more on this shortly)
  • Meaningful motivation
  • Integrated & aligned action.

I especially like Maritz’s combination top-down & bottom-up strategy to enabling and driving change at the local level: share research results with employees … obtain their input on improving the customer experience … and facilitate action plans based on the research & particulars of the organization at that locale. According to Maritz, “Co-development of learning and action plans with front-line staff generates relevancy, greater participation, and employee buy-in.”

More on Maritz’s approach in my next post …

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Engagement Marketing

Shhh! Check out the “Quiet Manager”

It’s good to be reminded that not all great leaders are of celebrity-caliber.

That’s one of the key messages in Managing Quietly by thought leader and academic Henry Mintzberg, who is critical of the hero worship stimulated by the media for turnaround executives. According to Mintzberg:

“To ‘turn around’ is to end up facing the same way … Might not the white knight of management be the black hole of organizations?  What good is the great leader if everything collapses when he or she leaves?”

Instead, he favors the “quiet managers” who:

  • Inspire rather than empower their people by creating a culture with “conditions that foster openness and release energy” so that “empowerment is taken for granted.”
  • Care for their organizations by spending more time “preventing problems than fixing them, because they know enough to know when and how to intervene.”
  • Infuse change so that it “seeps in slowly, steadily, profoundly” instead of dramatically so “everyone takes responsibility for making sure that serious changes take hold.”

The power of listening

What I found particularly refreshing is the quiet manager’s appreciation & respect for an organization’s institutional and collective memory. Mintzberg writes:

“Show me a chief executive who ignores yesterday, who favors the new outsider over the experienced insider, the quick fix over steady progress, and I’ll show you a chief executive who is destroying an organization.”

His description calls up one of my favorite quotes from entrepreneur Andrew Filipowski:

“The insiders of an organization understand the stupidity of its traditions better than the outsiders.”

Quiet leaders are in touch with what’s going in their organizations and do not treat their people as “detachable ‘human resources.'”  A manager who respects and listens to employees?  That’s the understated mark of a true leader.

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Marketing

Remembering My Father

It’s been just over a month since I lost my beloved father. He was 91 and lived a good life filled with loving family, friends and faith.

He had a profound impact on me both personally and professionally.

So I thought I’d share a tribute I wrote about my father on the occasion of his 80th birthday. This is an excerpt from my column in a services marketing newsletter published by AMA in the 1990’s.

My father was a tailor. When I was little, I would visit his store to admire the rows of colored thread on shelves above the old sewing machine. And occasionally, I would accompany him while he picked up and delivered his customers’ dry cleaning to their homes. I didn’t realize it until now, but I learned a lot from my father amid the colored spools and chemical cleaning smells.

Customers loved my father. He spent as much time socializing with them – in the store and during deliveries – as he did sewing for them. Whenever a customer came into the store, my father would get down to business: with a warm greeting, followed by a concerned query about the customer’s health and family, and then the specifics of the customer’s clothing alteration needs.

He took a lot of care with customers as well as with their clothes. And they kept coming back, while referring new customers to him. My father was not only a craftsman when it came to sewing, he was a master of relationship marketing.

Now you know the term “relationship marketing” didn’t exist back in the 1950’s-70’s when my father ran his tailor shop. It was just an intuitive way of how he did business.

(I can now picture him in heaven reconnecting with his former customers and friends and getting the latest updates on their families … )

Thanks, Dad, for a wonderful legacy. I love you & I miss you.

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Engagement Marketing

Leonard L. Berry – Distinguished Marketing Educator & Mentor

Catching up on my Marketing News, I was excited to find the announcement of Dr. Leonard Berry being named the recipient of the 2007 AMA/Irwin/McGraw-Hill Distinguished Marketing Educator Award. It’s the highest honor a marketing educator can receive based on his/her contributions to marketing education and the marketing discipline.

I’ve been privileged to learn so much from this man even though I never had him in a classroom. Len is one of my mentors from whom I’ve learned a lot about services marketing, service quality, leadership, and of course, internal marketing. In his classic 1991 book, Marketing Services, Len recognized employees as “the most powerful medium for conveying the brand to customers.”

A pioneer in the field of bank marketing (where I began my career) and service quality research (“When we improve quality of service, we improve quality of daily living … “), Len has been both generous and gracious in sharing his knowledge and work. His advice and support were also critical in helping me make the decision to launch Quality Service Marketing nearly 20 years ago.

Congratulations, Len, on a well-deserved honor. And thanks for all you’ve done for the marketing field, for the services industry, and for your students, including me.

Categories
Customer service Engagement Marketing

A Guide to Losing Customers for All Seasons

As part of the holiday season, you hear plenty of customer service horror stories – as well as some positive retail experiences. However, the bad experience I mentioned in my last post occurred before the shopping rush.

As did Olivier Blanchard’s experiences, which he wrote about in his great post: How to Lose Customers in Ten Simple Steps. Of particular note in his formula for alienating customers is this step: “Treat your employees badly.”

Many consumers have zero tolerance for managers who demean employees in front of them. The situation is not only embarrassing for those involved but can have negative repercussions on both employee and customer satisfaction & retention.

Good help is not only hard to find, it’s hard to keep!

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Customer service Marketing

Murphy’s Law of Exhibiting is Castaway

It’s every exhibitor’s nightmare: you show up at an event to market your firm, and your booth is missing.

That’s what happened to the folks from SubscriberMail at last week’s Mplanet conference, but company CEO Jordan Ayan and his staff made the best of the situation with grace and good humor.

Wandering the “Discovery Center” (i.e., Mplanet’s name for the exhibit hall), I was curious about SubscriberMail’s display — stacks and stacks of FedEx boxes, complete with a “Wilson“-type ball under a sign announcing an unusual contest: Guess when FedEx will deliver our booth and win a box of Omaha Steaks (delivered by UPS!)

Turns out SubscriberMail shipped their display the prior week and FedEx tracked it to somewhere in Florida, but not at the conference site where it was supposed to be.

Fortunately, a FedEx marketing exec who was attending the conference got involved to recover the situation, including delivering a personal apology from FedEx’s CEO. (I wasn’t privy to any other official recovery that they offered SubscriberMail.)

And then what happened?

The booth eventually arrived near the end of the conference. And without rancor (despite their frustration), Jordan told me that in all his years of dealing with FedEx, this was only the second time they had a problem with them.

But I was impressed with SubscriberMail’s handling of the situation, as was many of the attendees & fellow exhibitors. Ironically, they generated a lot of traffic with people checking back throughout the conference to see if their booth was delivered.

And I’m sure the UPS attendee at the conference also got a kick out of the situation!

Categories
Engagement Marketing

Why Employees Resist Marketing: What to Do About It

As discussed in my last post, there’s no getting around the reality that all employees are marketers in the sense that they all impact the brand.

The challenge for marketers involves managing this “expanded” marketing staff when you have no authority over them. Specifically, how do you overcome resistance to marketing when, in truth, it creates extra work for employees? Here’s what I recommend.

Getting ready

Before launching any marketing initiative, you need to:

  • share the rationale behind your marketing programs, including communicating what you’re trying to do & why; i.e., no sugar-coating or BS allowed
  • align marketing efforts with the big strategic picture to send the message “we’re all in this together”
  • get employee input … and be sensitive & responsive to how their work will be affected by marketing
  • provide the appropriate training (and perhaps incentives) so staff can effectively support marketing’s efforts.

While underway

Once your marketing program is implemented, you can’t just walk away. As part of your monitoring efforts:

  • stay in touch with what employees need to keep the momentum going
  • share the program’s success and any interim fine-tuning that needs to be done (and why)
  • recognize & reinforce employee support of the program.

And when all is said and done

  • share the final results, including what worked & why … what didn’t work & why … (another reason to stay in touch with employees, as previously mentioned)
  • solicit employee feedback on ways to improve future initiatives
  • acknowledge employee efforts and their collective contribution to serving customers in support of corporate strategy, not just marketing.

It’s all about marketing to non-marketing employees – another critical aspect of internal marketing.

Categories
Engagement Marketing

Why Employees Resist Marketing: The Dilemma

It’s both a blessing and a curse: everyone in an organization has an impact on marketing. Especially when you consider how many brand contact points (aka “moments of truth” when customers interact with a company) are outside marketing’s control. For example, the customer who calls with a billing question and gets transferred to the wrong department or is treated rudely.

The Challenge of Marketing’s Expanded Reach

Because marketing ultimately serves as the customer’s advocate, it has to find ways to ensure everyone in the organization is customer-focused.

I find most marketers are good at this. However, where they sometimes fall short is a lack of sensitivity to employees who consider their brand-ambassador role as “other duties as assigned” (i.e., low on their list of priorities). In this case, marketers may fail to recognize that marketing is perceived as creating extra work for employees.

Head for the hills, here comes Marketing!

Here’s an example from my early bank career. Whenever the bank would launch a new deposit promotion (offering gifts to customers for opening a new account or adding to an existing one), most of the branch people were less than receptive.

Who could blame them? They had to meet daily operational standards for processing transactions, cross-selling goals for growth, customer-friendly guidelines for serving customers, etc., AND THEN they had to display, process, distribute & control inventory of whatever promotional items the Marketing Department sent their way: blankets, watches, umbrellas, toasters, etc. (At one bank, we even gave away a new car!  But that’s another story.)

Eventually, we learned how to deal with this so employees didn’t bar the doors & windows when they saw Marketing coming. And I’ll tell you how in my next post.

Categories
Engagement Marketing

Internal Marketing Best Practice Study (continued)

Thanks to research conducted by Forum for People Performance Management & Measurement, we have a new definition for internal marketing and insight on the values shared by companies with effective internal marketing programs..

The 2006 Internal Marketing Best Practices study also identified the following six key characteristics of internal marketing success:

  • Senior management participation and buy-in is vital for any internal marketing initiative.
  • An integrated organizational structure is needed for internal marketing to “encompass all employees in a company.”
  • Internal marketing involves a deliberate strategic marketing approach similar to that used in external marketing.
  • Internal marketing calls for a partnership with Human Resources.
  • A focus on employee engagement helps create a “collaborative work environment where employees feel involved and motivated.”
  • Internal brand communication is needed to convey the brand promise to employees and motivate them to deliver on the promise.

I encourage you to check out the Forum’s research on internal marketing and its critical impact on business success and profitability.

Categories
Engagement Marketing

Internal Marketing Best Practice Study

As promised in my last post, here are some of the key findings from the Internal Marketing Best Practice Study sponsored by the Forum for People Performance Management & Measurement.

The study was based on understanding effective internal marketing initiatives in U.S. companies in a variety of industries.  These companies all recognize and reinforce the critical role employees play in achieving organizational success.  As such, they share the following values:

  • “People matter” – beyond the usual lip service, people really are important.  So these companies focus on creating a work environment “where people feel excited & rewarded” in their daily tasks.
  • “Internal Marketing drives performance” – recognizing employees are extensions of the brand, the companies focus on maximizing the employee-customer satisfaction link.
  • Anyone can make a difference – all employees count and should be recognized, not just senior management.
  • “Employee loyalty is critical” – companies who are “transparent” about their challenges and strategic direction can maintain employee loyalty in difficult times.
  • “Culture can be a competitive advantage” – internal marketing helps preserve a strong corporate culture.

I’ll share more of this internal marketing best practice study in my next post.