Shoplifting - store design and Customer service Management

Store design to reduce shoplifting: It has been reported that employee theft and shoplifting combined account for the largest source of property crime committed. The easiest way for retailers to discourage theft in a store is by taking away opportunities to steal. A little thought into the store's layout and design can prevent theft before a loss occurs.

Here's How:

1.      Checkout: Design the store lay out so customers must pass the register area and staff to exit the store. Never leave the register unlocked or unattended. Do not display merchandise near the store exits.

2.      Tidy Up: Keep the store neat and orderly. Full displays and straightened shelves allow employees to see at a glance if something is missing.

3.      View All: Use mirrors to eliminate blind spots in corners that might hide shoplifters. Maintain adequate lighting in all areas of the store; keep fixtures and displays low for better visibility.

4.      Under Lock and Key: Place small, expensive items in locked cabinets or behind the counter. Rest rooms and dressing areas should be watched at all times. Keep dressing rooms locked and limit the number of items taken in by each customer. Use alarms on unlocked exits and close or block off unused checkout aisles.

5.      Signage: Signs and posters reinforcing security messages should be used. Post anti-shoplifting signs like 'Shoplifters Will Be Prosecuted' in clearly visible locations.

6.      Security: Use security equipment such as closed circuit television, security tags and two-way mirrors. Uniformed security guards are also powerful visual deterrents to the shoplifter.

Customer service to prevent shoplifting: Good store management can be an effective tool against shoplifting. Retailers should also use store layout, adequate inventory controls and follow common security practices to combat shoplifting. Another form of prevention is to use customer service techniques to take away opportunities to steal.

Here's How:

1.      Staffing: Schedule an adequate number of employees to work at one time.

2.      Greetings: Greet every customer that enters the store. This lets the customer know you are aware of their presence.

3.      Be Attentive: Make yourself available to all customers and never leave the store unattended.

4.      Receipts: Give each customer a receipt for every purchase. Require receipts for refunds for cash. Trash any discarded receipts immediately.

5.      Stay Focused: Don't allow customers to distract the cashier while another person is being checked out.

6.      Bag Check: Implement a policy and procedure for backpacks and bags brought in by customers.

7.      Code 3: If you notice suspicious activities, alert other employees immediately. Many stores have a security code to alert staff of possible shoplifters.

8.      Helping Hand: Approach the suspicious person and ask if he/she is finding everything okay. Mention that you’ll be nearby should he/she need your help. Make the shoplifter feel watched.

9.      Tag Swap: Cashiers should watch price tags and be on the lookout for price switching. Ask for a price check if something seems out of place.

10.  Hidden Items: Shoe boxes, pocket books, baskets with lids and any other product easily opened should be inspected by cashiers to be sure it does not contain other merchandise.

11.  Sealed Shut: Every bag should be stapled closed, with the sale receipt attached.

A True incident of Customer Service

Murthy and his family were very excited. It was their holy grail. An outing to an American fast food joint. Murthy is an old timer who came up in life a hard way. He started his career earning 1500/- rupees per month. He is quite careful about spending money. For him 500/- rupees is still 33% of his present salary (even though he earns many times that much presently).

Padma Murthy comes from the same stable as her husband. Cost conscious and a value for money, lady she feels that money saved is money earned. Pranav and Sahithi are their children. They are “India Now” generation. Their motto “Spend money now and worry later. After all 500/- rupees is only one note. Blow them and you will get more”. It was Sahithi’s and Pravav’s day out. They had performed very well in the examinations and they were promised an outing and they chose Pizza Nation.

Pizza Nation India is the Indian subsidiary of the world famous Pizza Nation USA. They are a very successful American Fast food company and they came to India with lots of hope and aspirations. Pizza Nation is very confident that they can replicate their American success story in India. They have read a lot about the big Indian Middle class and their craze for luxury products, especially American products. 

Murthy and family wanted to try out Pizza Nation outlet at road no 12, Banjara Hills, Hyderabad. Banjara Hills is the poshest residential area in Hyderabad. It is the most happening place in Hyderabad and all the famous who and who of Hyderabad stay in Banjara hills. The entire locality is surrounded by high rise buildings, 5 star hotels, and big shopping malls. All food joints like MacDonald’s, Dominos, KFC and Pizza Nation have their outlets in Banjara Hills.

Walking up the steps of Pizza Nation Sahithi spotted the poster of Pizza Nation. It was a huge poster. It said “Tomato Cheese bites at 100/- rupees only”. The body copy said “22 cheese filled bits”. Sahithi was very excited. “We will have a gala time” she exclaimed. “Boy, boy what an outing”.

Murthy’s heart swelled in joy. “Why should I care about money? After all it is only 100/- rupees. It is value for money” he said to himself. Typical of all middle class families he was quick to justify what he considered as wasteful (sinful) expenditure.

Murthy checked out the menu. There was no mention of 100/- Rs cheese bites. The nearest was a 135/- rupee Tomato cheese bites. The bites were served twenty minutes later. Pranav blurted out “See mummy small Samosas” Padma looked on. Pranav was right! “The cheese bites were smaller than samosas and they cost a bomb” she said to herself. The measly mouthful was not enough. The children were clamoring for more. Murthy ordered a medium Margarita. The waiter was silent. He neither attempted up-scaling (super sizing) nor explained the deals or the deal of the day. Murthy felt cheated.

The meal was uneventful. The family ate silently and took some snaps. Murthy asked for the bill. A small UNICEF flier kept on the table caught Murthy’s attention. It was besieging customers to donate money for street children. Murthy ignored the appeal. “Bill please” Murthy hollered. The waiter brought the bill and very prominently holds the UNICEF flier. He pointedly asks “Sir Will you donate for UNICEF?” Murthy feels very upset. “Daddy why don’t you give some money” Sahithi pipes in.

The bill comes to 322/- rupees. Murthy is shocked. He as banking on sub 300/- rupees bill. The bill explained it all. Rs 135/- for the cheese bites and Rs 125/- for Margarita. That is a total of 260/- Rs. 26/- Rs was added as service charge. That took the bill to 286/- Rs. VAT (value added tax) took the bill to 322/- Rs. Murthy left a tip of 3/- rupees. “The bill was 325/- Rs but we ate only for 260/-.rupees. That is Rs 65/- rupees extra” Murthy muttered to himself.

Murthy complained to the cashier who was most casual about the entire thing. He said that service charge was extra. Murthy protested saying that service charge was not charged in the other fast food joints. The cashier did not have an answer. Murthy filled in the feedback form and outpoured his heart. But he knew it was a lost cause. His earlier experiences were that companies did not care. Having the customer once is enough. There is absolutely no need for the customer to return. The concept is akin to a leaking bucket placed below a running tap. Customers’ come experience the service and they exit. They will be replaced by new customers. That is the rule of the game. Murthy’s family was sullen as they walked out. Their evening was spoiled. They drove down to MacDonald and had ice-cream and burgers. They vowed never to return to Pizza Nation.

Later that night Murthy sat with his laptop. A quick search brought him to the web site of Pizza Nation. He sent out the following mail.

“Dear Sir,

Today we went to your Pizza Nation outlet in road no 12, Banjara Hills, Hyderabad. We had the following experience.

First of all the advertisement outside the shop said Rs 100/- Rs cheese bites. But the menu said 135/- Rs. The portions were very small, smaller than small samosas. The advertisements claimed 22 pieces but only 16 pieces were served. The margarita medium was just okay (average!). The service was pathetic. The waiter was insisting that we pay some money for UNICEF!

The worst part was we were billed 10% extra as service charge. We stay at Banjara hills and we are surrounded by MacDonald, KFC, Dominos and Pizza Nation. The service delivery is in the same order. Sorry to say that Pizza Hut is right at the bottom in terms of service delivery. None of the other three charge service tax!

No wonder the place was almost deserted! We walked out and went to MacDonald and it was jam packed. Why cant Pizza Nation put the entire price including VAT and your so called service charge as part of the price? My cheese bites cost me 135+13.50+18.5 = 167 rupees. That means 67% more than advertised. Talk about marketing gimmicks!

I brought the same to the notice to the cashier Mr. Bhasker who was not bothered at all. He displayed take it or leave it attitude and we LEFT! Thanks Pizza Nation for the Experience. You can be assured that I will never return.

With regards

Murthy”.

Murthy clicked and the mail went like a flash. Murthy gave a deep sign and switched the laptop and the entire experience off from his mind. As far as he was concerned the entire issue was an example of customer service delivered by world famous companies. “If world famous companies behave this way, how can one expect better things from Indian companies” He said to himself drifting off to sleep. “Is the customer really a king?”

Excellence in Customer service - A Network Experience - Part II

“That’s a problem! Can you push it to 14 days? I have some urgent work”. I promised to try and followed it with the head office. It was an uneven fortnight and the SP promptly called on the 13^th day which was a Wednesday. Luckily the machine had arrived. I told him that we would deliver and install the machine on Friday. “As you know sir tomorrow is Deepavali and it is a off for us”. “That is right” he said.

“But it would be nice if you can install it tomorrow itself as I have to make a presentation to the District Collector. Try your best. I know it is not possible, but that’s my need” Saying this he dropped the phone. By his voice I could make that he was annoyed and upset. But he was too much of a gentleman to shout at me.

I went to my RM (regional manager) and explained the situation. My RM could understand my predicament. We loved the customer at Network and we wanted to serve him at all times. My RM was helpless. Deepavali was the biggest festival of India and there was no person who was willing to work on a festival day. The problem was that the district was 250 kilometers away and that meant that the entire day would be spent in delivering and coming back to Hyderabad.

I volunteered to take care of the training. Electronic typewriters were considered to be technically advanced and all customers were trained in the usage of the typewriters.  I went to the service deportment and explained the situation. A service engineer Durga Prasad accepted the challenge and volunteered to take care of the installation.

On Deepavali we started out at 6 in the morning, took a train and travelled till 11. Finally we reached the destination. A royal reception was waiting for us. There was a police jeep waiting for us.

Our day was very eventful. The SP of Police was delighted by our gesture to install the typewriter on Deepavali. We were given royal treatment. It was customarily to eat only vegetarian food on Deepavali. Otherwise I was very sure that we would have been treated with the tastiest non vegetarian dishes!

We installed the machine, trained the typist, and showed him how to make good presentations. The SP was overjoyed. We were dropped off at the railway station. It was almost 10 in the night when we reached Hyderabad. The bursting of the crackers (the highlight of Deepavali) had already ended.

Yes that Deepavali had become a normal working day for me and Durga Prasad. But we had achieved something that will last for a life time. We had succeeded in delighting the customer who will remember us and Network for a life time. Yes we were the company that sacrificed our Deepavali so that our customer’s day would be lit up like the Deepavali night. 

Excellence in Customer service - A Network Experience - Part I

The year was 1988 and I was a sales executive with Indian Communications network Limited. Network was the market leader in the Electronic Typewriter Industry and it was famed for its ace sales people. Way back in 1988 we were marketing successfully typewriters worth more than Rs 50,000/-.  Even our cheapest typewriter was over Rs 10,000/- rupees.

On that eventful day I was the office sales executive. Office sales executive is the backup sales executive. The city had many sales executives and the office sales person takes the place of the sales executive who is on leave or if all the sales executives are present then he is stationed in the office to take care of the walk in prospects (walk in prospects are customers who might walk into the office to buy a product).

At around 1600 hours a prospect did walk in. He was a strapping man who had ripping muscles. He appeared to be quite knowledgeable. He asked us many intelligent questions. It was crystal clear that he not a window shopper. We had to tread more carefully. May be this man meant business!

The prospect asked for a demonstration. I along with our stores in charge R.C.Raju demonstrated the typewriter. We were still very skeptical. In those days a sale could not be transacted so very easily. We had to struggle and make many sales calls and slog for many months before we could get the dream document - the purchase order.

We had come to know that by that time that our prospect was a Superintendent of Police (SP) from a district in Andhra Pradesh. He was fond of technology and wanted a electronic typewriter to make his correspondence more professional and appealing. The SP quietly watched the demonstration and said “I will take it. How much does it cost?”

My heart skipped a beat. It was like struggling to see Sachin Tendulkar for a second and suddenly coming to know that Sachin would be staying in your house for a week. We have been struggling to get order and here was a prospect who was dropping a order literally into my lap.

I gave out the financials and he quietly listened. He never asked for any discount. We watched with a open mouth as he took out the entire amount in cash (usually customers paid us 10% in advance and the rest 90% after lot of persuasion). We quickly made out a purchase order and got it signed by him. We gave him a receipt.

Things took an interesting turn. Our customer asked us as when we could deliver the electronic typewriter. “Minimum 21 days are needed” I added. Why 21 days?” I had to explain to him that the AP sales tax was 13.77% and the central sales tax was 4%. All our orders were booked directly to our factory at Noida.  The machines were delivered directly from our Noida factory to the customers. Of course the consignment was taken by us (with authorization from the customers) from the airport and delivered to the customer. 

Masters of Customer Service - Southwest Airlines - Part - II

One year Southwest was challenged by the FAA (Federal Aviation Administration) to change its funny on board announcements as they felt people were not taking the safety messages seriously. Southwest argued back that to the contrary, it felt that because it infused humor into the typically rote, boring announcements, that people listened more. The FAA finally agreed and dropped the issue.

Southwest created a dollar bill with Herb Kelleher’s (CEO of Southwest) picture in the center and sent these Herb Bucks to its most frequent fliers, asking that if they saw a Southwest Employee going above and beyond the expected service, they give them an Herb Buck. At the end of the program the Employees would be able to purchase items from a catalog with the Herb Bucks.

The program was so popular that within weeks Southwest’s Customers were calling asking for more Herb Bucks. They were having a great time, and it was a great way to tie  Customers to employee recognition program. Customers often were featured in Southwest onboard magazine, “Spirit,” such as the lady who attended law school in Lubbock and flew back and forth twice a week on Southwest to attend class. Southwest also featured Chuy’s Restaurant when it announced that they only opened new restaurants in cities served by Southwest due to Southwest’s low fares.

To remind it to consider the Customer, Southwest created the committees to review operational failures. The rule of thumb was the employees have to ask themselves “if my Mom had been on board, would I be happy with the way she was treated?” Southwest keeps an empty chair in marketing meetings to remind itself to consider the Customer.

Frequently, Employees were given $25 coupons and asked to recognize any Customer doing something nice. One scenario often repeated was a young mother and child boarding late. Because they were the last to board, many times there were no seats together.

The flight attendant would make an announcement asking if any passenger would be willing to move so the mother and child could sit together. Somebody always volunteered. The flight attendant would then seek them out during the flight and thank them for their kind deed by giving them a $25 coupon good towards their next flight. They were always pleasantly surprised.

For many years employees of Southwest got their paychecks with the message “Provided by our Customers” to remind the employees of the Customers’ importance. Anytime the words Customer or Employee were written, they were always capitalized to stress the importance of both.

These Customer service principles are generic enough that most companies can implement them. It’s not rocket science, rather its common sense. The Golden Rule…putting yourself in others shoes, being nice…seemingly simple concepts that smart companies like Southwest realize keeps them at the top of their game.

Masters of Customer Service - Southwest Airlines - Part - I

Post 9/11 Southwest began to get requests for refunds from Customers who had purchased tickets but were now afraid to fly. Most of the competitors of Southwest decided to allow the refund, but add a “refund penalty” to cover their cost and lost revenue. Not Southwest. It put itself in its Customers’ shoes. Southwest thought, “Why should we penalize people who had become fearful of flying due to circumstances beyond their control?” So, Southwest took a risk and decided to offer full refunds to anyone who asked with no penalties. No questions asked. Southwest was counting on all its Customers not to make a bee line on refund request. Why? Because Southwest had developed a great relationship with its Customers and trusted they would have faith in Southwest.

And, the customers they proved Southwest right. In fact, not only did many of them not ask for a refund, Southwest was overwhelmed when many customers sent their tickets in with notes saying “Southwest Airlines take this ticket and keep it. I don’t want my money back…I just want you in business in five years and today you need the money more than I do.”

Southwest Airlines sends out most frequent Customers a birthday card. One year, a Customer called to let it know that Southwest was the only one who remembered his birthday! The airport ticket agents are on a first name basis with most of its frequent fliers and knew the names of their children, spouses, etc.

Southwest would often invite its Customers to participate in company events. Halloween was one of the holidays that Southwest celebrated in a big way. Every department competed by having a theme and some even put on shows for customers.

When things get stressful at the airport due to bad weather causing delays, Southwest plays gate games with its Customers to relieve that stress. The gate agent might announce to the Customers sitting in the boarding area that Southwest was giving a $25 off coupon for their next flight if they had a hole in their sock, people took off their shoes and held up their foot to let Southwest judge who had the biggest hole. It is a lot of fun and takes the Customers’ minds off the delayed flight.

South-west pilots and flight attendants have a fun attitude. A pilot might walks up the Jetway into the plane with a briefcase. Sticking up outside the briefcase is a book entitled “Idiots guide to learn How to fly a jet plane”, or the flight attendants would announce that there was an individual on the flight who was celebrating his 95th birthday and would asked the entire cabin to sing Happy Birthday.

At the end of the song, she would then announce that the 95 year old pilot was very grateful for their attention. They might sing a song, tell a joke or tell people “Smoking is not allowed on this aircraft. Anyone caught smoking will be escorted outside to watch the movie “Gone with the Wind.”

Caring for the customer - The american way

America is the Mecca of marketing. There are so many things that one can learn from the American way of marketing things. The one thing that immediately comes to the mind is the panache or the flair of presentation. Americans have a definite flair for dramatization. Right down to Donald Trump who named his hotel “Taj Mahal” and boasted that it was as good as the original Taj!

American trouser sizes: One thing that all people hate is the dreaded question that the sales person asks in a textile shop” sir what is your waist size?” Shoppers in USA are in for a pleasant surprise. The American size is one size less than normal. For example Indian size 38 would be size 36 in USA. Shopping in USA is a pleasurable experience as 2 inches are taken of your waist that too instantly! The only other place that can make you even happier is Ethiopia where one magically becomes 7 years younger (Ethiopia follows a calendar that is 7 years behind the Georgian calendar. Ethiopians are right now in 2004!)

Large, extra large: America is the country that made inches redundant by getting in a new concept called small, medium, Large and extra large. Many people console themselves saying “well we are large”. But how large, no one really bothers because after large it is all XL (extra large and one can go on till 7 XL). Bank on Americans have taken the guilt out of shopping!

Plus sizes: Fat is out but fat people are still good for business. In a country that celebrates thinness paradoxically most of the customers are fat and they have to be pampered. USA has a very polite name for fat customers. They call these customers plus size customers and there are shops catering to plus size customers’ fashion needs.

Zero size: USA worships thinness. USA has coined a term called zero size. Zero size does not mean having a waist of zero. It is 22- 24 inches at waist. But the concept of zero size becomes so popular that a winsome lass like Kareena Kapoor starved herself to get a zero size. Sanity prevailed and she has returned to her earlier and normal waist size.

Calling clients as guests: One of the things about USA is the terminology. All other countries call their customers as customers but US airlines have taught the world to call their customers as guests. Guests in the house and they must be treated as guests are treated at one’s home. Albeit many companies call customers as guests and merrily cheat and rob!

Allowing readers to read to their hearts content: American book shops have mastered the art of display and enticement. American book shops are so inviting that readers can go to the book shop pick up a book and read it to their heart’s content. There is no pressure of buying. One can sample the book and buy it only if one wants. It works to the advantage of the book shop as the book shop appears to be crowded. A crowded shop always triggers others to walk in. It is a win-win for the book shop.

Allowing readers to borrow as many books as possible: American public libraries allow members to borrow as many books as they want. There is no restriction on number of books that one can borrow. But one should be cautious about the due date. After the due date the borrowed books will be charged a dollar a week as late fee. 

Customer Relationship Management – The Case of Azim Premji – Wipro group

The next case of customer service management is credited to the service engineer of the Electronics company called “Western” who supplied a VCR to the Managing Director of Wipro, Mr. Ajim Premji. Ajim Premji is a man with tremendous commitment and dedication to his company and his employees. It is said that Ajim Premji's son who was studying in UK phoned his dad and requested than he be alloted a room in the Wipro guest house in London. "It is reported that Mr. Premji had said "I can't do that. You can't get a room as you are not an employee of Wipro. The rooms in the guest house are for employees only and I suggest that you find a room for yourself". Azim dresses in a very simple fashion and it was reported that his personal vehicle for a very long time was a 118 NE, a Premier Padmini car.

It is said that Azim wanted a VCR and he had told Western company that he wants the VCR to be installed by 0930 hours on the Sunday morning. Why by 0930 hours on the Sunday? The timing was critical as 0930 hours was the time when Mahabharata the TV serial was being telecast on the Doordharshan and Azim did not want to miss even a single episode. And missing even a single episode was one thing that Azim did not like at all but was forced to miss some of the episodes as he had a very busy schedule. The same news was conveyed to the company.  

On the eventful Sunday, Azim could not catch the episode of the Mahabharata. An enquiry at his house realized his apprehension – the service engineer did not deliver the promised VCR. Azim was terribly unhappy with the turn of events but being a gentleman to the core he just kept quiet. His evening was progressing normally when the service engineer from WESTERN company makes a visit. He Introduced himself and apologized for his late arrival. He has the right excuse. The VCR was simply not available with the dealer.

Azim controls himself and lets the service engineer do his job. The service engineer promptly installs the VCR and then demonstrates the features of the VCR to Azim. Azim quietly listens. The service engineer requests Azim to sign the document of satisfactory installation of the VCR. Azim obliges him. The service engineer takes out a small envelope from his suitcase. He says “sir I am told that you are a great fan of the Mahabharata serial and that you do not like to miss even one episode. I had today’s episode recorded for your sake. This is the video tape of today’s episode. If you have missed today’s episode you can watch it on your new VCR. I sincerely apologize for any inconvenience caused”. Azim was delighted at the thoughtfulness of the service engineer. 


Service is all about the delivery and about empathy. The service engineer treated Azim like a family member and he understood the psyche of his customer. As they say common sense is not that common. I am sure that the thoughtful service engineer of WESTERN would have grown by leaps and bounds and that he would he heading a group of dedicated CRM professionals in a famous company today. 

.

Customer Relationship Management – The Case of Venu Srinivasan – TVS Motors

Venu Srinivasan is the Managing Director (MD) of Sundaram Clayton Ltd and became the MD of the TVS Motors in 1986. In July 2002, he also became the Chairman of TVS Motors.

Under his leadership as the Managing Director (MD), Sundaram Clayton's Brakes division won the Deming Prize in 1998 for having "achieved distinctive performance improvements through application of company-wide quality control." In 2004, TVS Motors also won the Deming Award during his tenure as the MD, becoming the first two-wheeler company in the world to do so.

This particular CRM practice is credited to Venu Srinivasan. The common myth is that customer always means external to the company. The word customer customer means a person who buys a product or service from the company. But there exits a concept of a Internal Customers Internal customer can be an employee or a taker of service from another department of the same company. In that way the employees of the company are the customers of the HRM department.

We need to understand that the employees spends up to 8-10 hours at the company. That is nearly 75% of the time that he awake. So what is the feeling that he/she takes home. Is the employee happy about his work? Does he/she come bubbling with enthusiasm? Or are they grumpy or irritated? What is his opinion about the company? What does he tell about his company to his family members? The incident cited will reveal at least some answers to the queries posed.

Mr Venu Srinivasan is a very busy man. He is a globetrotting business leader. But where ever he is he returns to Chennai on the Friday night. He then selects one of the employees for his “special treatment”. This week it is the turn of Govinda Venkataswamy from the Fitting Division. Govinda has been working is the fFtting division for 7 years. He is known as a punctual, no nonsense worker. Well liked and introverted, Govinda is the grain with which the vast majority of factory employees are made throughout the world. He is a part of a silent majority. They do not get the attention or the appreciation that the trouble makers get.

Unknown to Govinda the Mercedes Benz that Venu Srinivasan uses goes to his house. His entire family is then chauffeured to the factory in royal style. They are taken with due respect to the factory area. They are taken to Govinda’s work station. Govinda is pleasantly surprised (He know that his turn might come but it is still a sort of lottery. After all there are 1000s of employees and only 52 Saturdays in a year).

Govinda’s supervisor explains the work that is done by Govinda. He tells the awe struck family members how important Govinda is for the company. He elaborates the initiatives that originated from Govinda. Then the family is taken to the sanctum Santorum the CMD’s office. This is the place that Govinda never even dreamt of entering. And here he is entering the CMD office and with his entire family! Venu Srinivasan receives them. He talks very warmly with the family. He has lunch with them and obligingly poses for keep sake photographs. He presents a memento to the eldest of the family. He thanks the family for giving him an excellent employee and hopes that Govinda stays for a  long time with the company. Govinda is allowed to go home with his family that too in the Mercedes Benz that belongs to his CMD.

That is not the end of the story. Once there was a huge threat of a big flood hitting the TVS factory. Venu calls his production in charge and tells him to rush to the factory to protract the precious machinery. Venu drives to the factory at a high speed. He is very anxious that his precious factory be saved from the nature’s fury. To his surprise a heart whelming scene greets him at the factory. His entire production staffs are already at the factory. They needed no second saying. They were working in a torrential downpour. Drenched to the skin, they have already taken full precautions to see that the machinery is adequately covered. Venu is immensely satisfied. He says to himself “My company is in safe hands”. When the employees feel that the company is their own the company is slated to be very long lasting. It is no surprise that TVS group has won the Deming Prize twice. Hats off to You Mr. Venu Srinivasan Sir, way to go.

Customer is the king - What a Joke

“Customer is the king”, “Exceeding the expectations raised will result in customer experiencing delight”, “The company and its people exist for the customer” “we are not doing any favor to the customer by serving him rather he is doing us a favor by allowing us to serve him”. These adages are taught to us and we continue teaching them to all the sundry. But these in many cases remain only platitudes that we platter without meaning any of them. Sample the following experiences that I had in the recent past of shoddy service that could have been better.

GO Airlines: The day was Udagi the telugu new year day. I was flying from Ahmedabad to Hyderabad by GO airlines. The banner at the airport was wishing the Marathi’s Gudi Padwa (the Marathi New Year). There was no mention of the telugu new year especially as the flight was from Ahmedabad to Hyderabad (Hyderabad is the capital of Andhra Pradesh and telugu is the official language of the state).

The next element of bad service took the cake. My luggage was overweight by 500 grams. I was not carrying any hand luggage. The ticket checker promptly told me to pay Rs 100/- as excess luggage. I have travelled all over the world and this came as a shocker. I protested to no avail. I was curtly told that I had to pay up. I asked for the supervisor. The supervisor told me on no certain terms that the airline would lose money if concessions were made. I paid the excess luggage (just to keep the record straight I gave feedback in the Go airlines compliant register and to date I have not received any response).

The next put-off is the behavior of the air-hostesses in the plane itself. They treat the customers (customers is a bad word the airlines calls them guests) like dirt. I shudder to think if this is the way they treat the visitors at their home, better not to go to their homes. They condescendingly might give you 100 ml of water but only for the first time. Ask water for the second time and they would serve you but with a look of “why can’t you buy water you cheapoo?” What I fail to understand is why the airline can’t serve a rudimentary snack of one samosa, two cookies, tea or coffee and water. I am sure this simple meal would not cost a bomb and bleed the airline companies to death!

KFC, New Delhi International Airport: Yesterday I was taking a flight from New Delhi to Hyderabad, Feeling hungry I went to the KFC counter and asked for 3 chicken wings costing Rs 49/-. I was billed Rs 60/-. This included VAT of Rs 6/- and a so called voluntary contribution of Rs 5/- to some social cause that KFC was supporting. what is voluntary about the contribution when the amount is added automatically to the bill and the customer has no say or option to accept or refuse the same?. Disappointing way to be socially responsible KFC!

Customer Service Management - Relationship marketing (Part 4)

Loyal Customers and Loyal Workforces: Building customer loyalty will be a lot easier if you have a loyal workforce-not at all a given these days. It is especially important for you to retain those employees who interact with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people but little to support people.

Blocks to Customer Focus: The problem is that most organizations only talk about customer service improvement. Many executives don't understand what outstanding customer service really looks, aren't ready to turn their organization inside out to provide it, are trying to paint happy smiles on their frontline service providers, or are bolting a customer service program on the side of their organization rather than making it a part of their core strategy.

Here's some of the biggest reasons that so few organizations successfully turn their customer service rhetoric into reality:

Little or no segmentation of markets and customer groups. The organization is trying to be everything to everybody. Customers are lumped into one indistinguishable mass and their expectations (if they've been gathered at all) aren't weighted, ranked, and segmented.

Little or no customer data. When it is collected (such as an occasional survey) positive feedback is acknowledged. But negative data is denied (usually by challenging the survey methodology). Budget priorities are set, cost containment initiated, and resources allocated with little, if any, systematic connection to customer priorities and expectations. Improvement activities are focused on what the organization or management considers important.

The organization is managed from the inside out. New products and services are pushed out to the market through sales and marketing. Customers aren't involved as active partners in research and development activities. A senior executive in a leading computer company once said, "If customers don't like our solutions, they have the wrong problems".

Employees are treated as the source of service breakdowns. Training and motivational campaigns (such as recognition programs) aim to "fix the frontline". Management pays little attention to all the research that proves "The 85/15 Rule" -- 85% of service breakdowns originate in organizational systems, processes, or structures.

Internal customer tyranny runs rampant. Departments who are served by other departments use the concept of "internal customer-supplier relationships" to get their own needs met whether or not it improves external customer service.

Blurry line of sight to external customers -- many organizational members (other then those on the front serving lines) have little interaction with external customers and often don't understand (and have little reason to care about) customers' expectations and how their work ultimately helps or hinders meeting those expectations.

One customer group dominates. For example, the focus is on retailers, agents, or distributors with scant attention paid to the ultimate consumer. Little effort is made to understand and balance the needs of both groups while pulling products and services through the distribution or service chain.

Focus is on customer acquisition rather than retention. Investments in sales and marketing to bring in new customers are much higher then efforts to retain or expand business with current customers.

Customer aren't people. Thinking of someone as a customer implies providing service, partnership, or some form of equality. However, when customers become "policyholders", "consumers", "patients", "passengers", "taxpayers", "accounts", or "advertisers" they often become less human.

Customer Service Management - Relationship marketing (Part 3)

In selling one has to consider the high cost of landing new customers versus the high profitability of a loyal customer base, you might want to reflect upon your current business strategy.

These four factors will greatly affect your ability to build a loyal customer base:

1. Products that are highly differentiated from those of the competition.

2. Higher-end products where price is not the primary buying factor.

3. Products with a high service component.

4. Multiple products for the same customer.

Market To Your Own Customers!: Giving a lot of thought to your marketing programs aimed at current customers is one aspect of building customer loyalty.

If Three years ago a house was painted, and it's now due for another coat. It is time to make a call on the customer. It would be a lot less expensive than getting new customers through his newspaper ad, and if the customer is happy with the work he won’t ask for get four competing bids. Keep all the information you can on your customers and don't hesitate to ask for the next sale.

Use Complaints To Build Business: When customers aren't happy with your business they usually won't complain to you - instead, they'll probably complain to just about everyone else they know - and take their business to your competition next time. That's why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made. They find that if they promptly follow up and resolve a customer's complaint, the customer might be even more likely to do business than the average customer who didn't have a complaint.

In many business situations, the customer will have many more interactions after the sale with technical, service, or customer support people than they did with the sales people. So if you're serious about retaining customers or getting referrals, these interactions are the ones that are really going to matter. They really should be handled with the same attention and focus that sales calls get because in a way they are sales calls for repeat business.

Reach Out To Your Customers!: Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The more the customer sees someone from your firm, the more likely you'll get the next order. Send Christmas cards, see them at trade shows, stop by to make sure everything's okay.

Send a simple newsletter to your customers-tell them about the great things that are happening at your firm and include some useful information for them. Send them copies of any media clippings about your firm. Invite them to free seminars. The more they know about you, the more they see you as someone out to help them, the more they know about your accomplishments-the more loyal a customer they will be.

Customer Service Management - Relationship marketing (Part 2)

Focus on Filling Customers' Needs: The better your product or service fits your customers' needs, the more sales you will have. When customers know you sincerely care about what they want and need, they will feel secure that they are making the right decision in buying from you.

By clearly identifying the needs of your customers, you can also confirm whether or not they are part of your target market. Even if they really do not require what you have, you can still build trust and improve your relationship by being candid and referring them to a more suitable resource. You never know when this good deed will return to you in the form of highly qualified referral business.

Listen More Than You Talk : Something magical happens when people give their undivided attention to others, without interrupting or focusing on what they are going to say next. This is true whether the environment is professional or personal. However, it is often overlooked in the context of establishing a business relationship, much to the detriment of the seller. After all, if you do all the talking, you will never learn anything about your prospect.

When you listen more than you talk, customers realize you are genuinely interested in them, and that you are trying to understand their specific situation. They feel more comfortable with you, and will soon realize you are on their side. Make active listening a regular practice, and you will find it much easier to create excellent relationships with your customers.

A Different Framework for Selling: Although a lot has been written recently about relationship selling, the concept itself is not new. The principles involved have always worked, and are even more important in today's highly service-oriented market environment.

Relationship selling does not consist of a simple set of techniques you have to master. It is a way of conducting yourself in the business world that is flexible, cooperative and professional. When selling in a context of building healthy relationships, you are operating as an ethical, considerate and helpful human being. You are also building your communication and other personal development skills. This is not only satisfying, but also quite effective in creating a steady stream of sales for your business.

Building realtionships with clients is the key:  It is very important of prospects seeing you as an expert, someone who can help solve their problems. Bringing all of the elements together is critical: relationship, sales process and expertise. One could even say that a proper sales relationship strikes a balance between friendship and caring on one hand, and professionalism and knowledge on the other.

Customer Loyalty: It takes a lot less money to increase your retention of current customers than to find new ones. It takes five times as much effort to attract new customers than retaining old customers.

Customer Service Management - Relationship marketing (Part 1)

There is a way to sell that is positive, rewarding and enjoyable. And it helps handle that fear of rejection as well. It's called relationship selling, and is the way effective, professional salespeople have always operated.

Relationship selling applies to any kind of business, whether retail or business-to-business, product or service. While the steps to the sales process may vary slightly for each type, the over-all theme of building relationships is consistent throughout.

Traditional vs. Relationship Selling: There are lots of techniques to get sales. While these techniques can be very useful, they may also get the way if used without first building a relationship with sales prospects. In contrast, relationship selling is a win/win game. If the product or service being sold truly meets the needs of the buyer, both parties benefit as a result of the sale.

Today's customers have become more sophisticated and demanding of higher levels of customer service than ever before. They want some-one they can trust who understands their needs and wants. This is particularly important during slow economic times, when most people make buying decisions, even small ones, very carefully.

Also keep in mind that the best sources of new business are existing customers and referrals from these customers. To help ensure the success of your venture, take the time to build relationships with your customers, rather than just focusing on making the immediate sale. Although relationship selling may take longer to produce results, it is definitely worth it in the long run. You will be well rewarded with high levels of repeat business and referrals from happy customers.

Build Trust: People tend to do business with those they like and trust. Look into your own buying experiences. Have you ever walked away from a transaction because you did not trust the salesperson to deliver what was being promised, or because you just plain didn't like the man or woman? And conversely, haven't you found yourself going back again and again to do business with helpful and honest salespeople?

How do you build trust in a business environment? Let your prospects and customers get to know you. Make sure they understand why you started your business, and why you believe in your product or service. You might also get involved in industry or neighborhood organizations where you can meet your prospects and customers in a different environment. They can experience another side of you, and get to know you as a person, not just as a vendor. While you are still selling the benefits of your product or service, you are also selling yourself.

Another way to build trust is to keep your word. From follow-up calls to delivering on time, keeping your word can be one of your most powerful sales tools. Of course unexpected things do happen, and sometimes you cannot keep your promises. When this occurs, communicate with your prospect or customer, and inquire whether the change is workable and what you can do to lessen the inconvenience. That way you keep your trust level intact, or may even strengthen it as a result.