The Quality Department Won’t Approve It
April 6, 2009
Moving into a bigger office is a lot like moving into a bigger house: there are more rooms to furnish. That means you have to buy stuff, and that means dealing with damaged shipments. And that’s exactly what we’ve been experiencing this week.
We ordered a hutch that will go on top of a credenza we already have, a conference-room table, a desk set, and a storage cabinet, all of which arrived within a seven-day period. That was the good part. But when we started opening the boxes, the fun quickly came to an end.
I should point out that this wasn’t bulky, heavy, solid wood furniture, but rather the kind that comes in a box. You lay out all the pieces, screws, dowels, and cams, and then spend an afternoon putting it all together. I don’t mind the time – it’s actually quite relaxing and even a bit therapeutic – but I do mind it when there’s a problem with the parts.
You see, all but one of the items had some damage on the component pieces. Some had gouges and scratches; some had damage around the corners; and some parts were simply broken. Oh well, it’s basically particle board with a wood laminate, and some of it is going to get damaged. So we called the customer-service numbers for two of the companies and got two very different responses.
The first representative was extremely courteous, efficient, and helpful; explaining that she would send out a replacement, and instruct us on what to do with the old piece; but that, of course, we wouldn’t be responsible for even one dime to correct the situation. She also apologized for the inconvenience, and even looked up and e-mailed us a copy of the assembly instructions we had somehow misplaced.
The second company’s representative took a slightly different approach. In this case, there were five major pieces – essentially the entire frame of the cabinet – that had damage because, apparently, some particles had gotten in between the pieces during their internal packing process and had scratched and gouged them in transit.
Oh, she was courteous enough at the start of the call, but as soon as Lorie told them how many pieces needed to be replaced, and which ones they were, she quickly changed her tune. “Oh, we can’t ship out that many pieces; you’ll have to contact the company you ordered this from and deal with them. We explained that the package had arrived well cushioned and with absolutely no signs of visible damage. The problem, we explained, was caused by the packing process in their factory.
What I was afraid of was a “he said, she said” affair, where the company we ordered from would say it was the manufacturer’s fault, and the manufacturer would say it was the company’s fault, leaving us in the middle, quite likely picking up the cost for shipping back a 100-pound package.
When we asked why they couldn’t ship out the pieces directly themselves, she explained, “I just don’t think the Quality department will let us send out that many replacement parts for a single unit.”
Hmmm, would that be the same Quality department that allowed the defective parts to be shipped in the first place? It would seem to me that the Quality department should hand pick the replacement parts, jump in a truck, and drive directly to my office to deliver them personally and apologize for having failed us initially.
Ultimately, we did get them to authorize the parts, primarily because Lorie was extremely persistent, calm, and rational in explaining why it was their responsibility to do so.
But we won’t likely buy any furniture from this manufacturer ever again, and that’s the important lesson for you here. Mistakes do happen – it’s extremely difficult to cover every single contingency, but it’s how you handle this problem that makes the difference in how the customer remembers the experience. Do everything you can to make sure you get it right the first time. But when you don’t, take full advantage of the opportunity to address the problem quickly and definitively, and you’ll have a customer for life.
You Want Me to Pay?
March 11, 2009
We don’t have a lot of expensive habits – until recently, both our cars were 1995 models – but we do enjoy wine. And surprisingly, there’s some good wine being produced in Maryland right now. Not great, but good enough to enjoy without having to spend a small fortune.
If you remember, we had our Mastermind Group meeting in Baltimore a few weeks ago. I had a program in Miami the day before, so I flew directly into Baltimore. Lorie took the car (the new one, of course – it’s fun to drive…and it smells nice!) and drove up to meet me there, with a stop on the way at a favorite local winery. She had called in advance to let them know she was coming, with the intent of buying about a case of wine.
She pretty much knew what she wanted, but they had a few new vintages, so she wanted to sample them to decide exactly which ones she would buy. When they were ringing up her order (14 bottles in all) she noticed a charge for $5.00. When she asked what that was, they explained it was for the tasting fee.
Now, this is a common practice, particularly at wineries where expensive wines are sold, but in almost every case we’ve experienced, the tasting fee is waived if you make a purchase. And if you buy a case, well, it’s not even an issue.
But they insisted that they had to charge the fee because “that’s our policy.” As a minor concession, they reduced the tasting fee to $2.50 when Lorie explained that she really didn’t need to keep the souvenir glass.
Oh sure, she could have made a big stink and probably gotten the fee removed, but it wasn’t worth the time or aggravation on what was an otherwise enjoyable day. There are, however, two great lessons you should take away from this experience:
- Don’t Let “Policy” Get in the Way of Common Sense – It may very well have been their policy to always charge the tasting fee, and there may have been perfectly good reasons for initiating this policy in the first place. But sometimes the process actually prevents you from doing what you know is the right thing for the customer. And this is quite likely one of those situations because of #2…
- Don’t Cut Off Your Nose to Spite Your Face – In that single visit, we bought 14 bottles of wine which cost over $300. We really enjoy their wine, and travel to the area three times a year. We’ve been in this Mastermind group for three years, and will likely stay on board for many more years. For argument’s sake, let’s say it’s five years. $300 x 3 visits per year x 5 years = $4,500. We do like their wine; it is a great value; but we like a lot of other wines too. If we decide that charging us the $2.50 fee was a cheap enough thing for them to do that we say, “Okay, forget them,” then they will have lost $4,500 in lifetime value for a measly $2.50 tasting fee.
Not taking the long view in situations like this is simply bad business. It’s something you want to avoid whenever possible. It creates weak relationships instead of strong ones; it gets people telling bad stories about your business instead of good ones; and frankly, it just makes me mad. Maybe I’d better go and have a glass of wine to help me relax…
One of Our Best Customers
March 4, 2009
I got a message a while ago from someone named “Dave” who wanted to talk to me about “an important marketing opportunity.” Not having any information, but being interested in marketing, I called the number he had left for me.
When the phone was answered, and I explained why I was calling, there was a brief pause while the person on the phone had to go off and find out exactly who Dave was. A few minutes later (at this point, they had piqued my curiosity) Dave finally arrived on the call.
He had called me about a marketing conference – a “boot camp” type event featuring three well known marketing people, including Adam Ginsberg, who teaches people how to make money using eBay. Always curious as to how people select and target their mailing lists, I asked how they got my name in the first place.
At first, he didn’t know, and then, after further digging, he said triumphantly, “Oh, here it is: Adam Gisnberg says you’re one of his best students.”
Wow – what an honor! Except for one simple fact: I’m not one of his best students. In fact, I’m not one of his worst students: I’m not even a student of his at all. I’ve never bought so much as a book from him. The closest I’ve ever come to any involvement with Adam Ginsberg is the time he spoke at one of the major marketing conferences I attend each year.
Turns out, I had reached a call center where people were working fervently to fill seats at an upcoming event. There were many ways they could have gotten my name, any of which would have made me a likely candidate. But the minute they couldn’t explain how they selected me – and got their only attempt at it dead wrong – I lost all interest in attending the conference…and in continuing the conversation.
Affinity is important: teachers selling to other teachers; stay-at-home moms selling to other stay-at-home moms; entrepreneurs selling to other entrepreneurs all have better results because of the common background, language, and experience they share with each other.
But you have to get it right. You can’t send a letter to a list of vegetarians that starts out: “Just like you, nothing brings a smile to my face like a big, juicy sirloin steak…” And that’s essentially what they did.
It doesn’t take much effort to select qualified lead sources, segment your own “house list,” and customize the message you send to specific market segments. Best of all, the effort you put into this process will almost always lead to improved response and increased revenue.
The Wine Contrarian
February 19, 2009
Serendipity is fun. Within about an hour of finishing my article in the last issue of this newsletter, where I talked about the importance of being “contrarian” in your thinking, I found an interesting e-mail in my own inbox. This one was the weekly e-mail newsletter I got from a wine shop we like called Chapel Hill Wine Company, and its owner, Todd Wielar.
I enjoy his newsletter because he provides good updates on different wines; but more importantly, because he write in an irreverent, almost tongue-in-cheek style. Bottom line: I enjoy reading his e-mails each week. (Something to consider in your own communications!)
So here’s an excerpt from the message I was talking about:
Deals: Kind of goes hand in hand with value, I guess. But I will be focusing more than ever on finding really good deals. Which means buying big. Not exactly what my accountant would suggest right now, but if I want to get the best deals, then I need to commit. So commit I will. I’m only hoping you all are along for the ride!
And these are real deals, mind you. Feel free to price shop. I know I won’t nail it 100% of the time. There is always some joker who will price their three bottles of wine x a buck cheaper after reading my e-mail. But day in and day out, I think you’ll find our prices will stand up next to anyone’s. Of course, I can just tell you I will “price match” any competitor’s advertised price, but that misses the point, doesn’t it? You’ve got other things to do than run around comparing prices. I’m hoping my six plus years of delivering the goods will reassure you that you can save your time and just buy from us!
So many good points in these two paragraphs, I don’t even know where to start. Let’s review them one at a time.
- Act Like a Contrarian – As we said in the last newsletter, sometimes it’s better to “zig” when everyone else is “zagging.” To get good deals for his customers, Todd is buying selected wines in big lots, despite what the lagging economy would suggest. You should consider taking a similar approach in your marketing, advertising, and purchasing strategies as your own economics permit.
- Sell on Value, Not on Price – It’s an important distinction, because even though his two stores will usually have the low price on a particular bottle of wine, this is more of a nice bonusthan it is the foundation of his Unique Selling Proposition (USP). Competing on low price alone is a dangerous game to play, and leaves you vulnerable to the “some joker” Todd references in his e-mail.
- Explain the Value in Terms the Customer Can Appreciate – But don’t most people want the best price? Well, yes, but at what cost? Todd presents a compelling case for just coming into his store: six years experience “delivering the goods” and a reliably low price – if not the lowest price – that will save you from wasting time and effort to save a measly buck or two.
My only regret in this whole situation is that his two stores in Chapel Hill and Hillsborough are 40 and 50 minutes respectively from my house. Otherwise, the great selection, value prices, and special tasting events – combined with Todd’s humorous writing style – would make this my primary local wine shop.
Can you create as strong a USP and personality for your own business? Send in your example to newsletter@qualitytalk.com, and maybe I’ll drink a toast to you in a future issue!
A Tale of Two Bagels
February 12, 2009
Your attitude in dealing with customers can make a huge difference in your business. An inappropriate level of customer service will cause you to lose business.
There are two national bagel store chains near my house, almost exactly the same distance away. They offer the same basic varieties, the same types of cream cheese, and the same extra items. But that’s where the similarities end.
At one store, the people working behind the counter seem as if they could care less about working there. When my turn comes to approach the counter, I’m greeted with a less-then-enthusiastic “Next.” They rarely smile; they never recognize customers who shop there regularly; and throughout the whole experience, they act as if they’re doing you a favor by serving you.
When I leave the store, I usually feel disappointed by the whole experience—even if the bagels were great! Interestingly enough, this attitude is not limited to this one location. I have been in several other stores in this franchise, and they all exhibit the same lackluster approach to service.
Contrast this with the behavior I see at the other bagel store. The owners are enthusiastic, almost gregarious. One of them is always in the store greeting customers, chatting with them on line, and generally treating them like old friends. They call their regulars by name and frequently remember what people have ordered in the past.
When I leave this store, I usually feel up-beat and energetic. And with the two stores approximately the same distance from my home, which one do you think gets my business? In fact, I’d probably travel further or go a bit out of my way to get this kind of service.
Interestingly enough, when I mention this to the managers of both shops, I get two decidedly different responses. From the first shop, the response is, “Well, you can fill out a comment card and send it to the district office.” From the second shop the response is, “Thanks! We really like our work and our customers, so it’s easy for us to be enthusiastic!”
With the business environment intensifying in almost every area today, it’s essential to develop and maintain any edge you can over your competition. The way in which you treat your customers—and the way in which they perceive your company—will have a dramatic impact on your long-term viability as an organization.
Tot’s Taxi
January 15, 2009
Having a clear vision of the organization’s purpose, whether through culture, tradition, or a formal vision statement, is an important consideration in maintaining customer satisfaction.
Having a clear vision of the organization’s purpose—whether through culture, tradition, or a formal vision statement—is an important consideration in maintaining customer satisfaction. But if your actions and behaviors do not support this vision then the customer may have a different impression of your company altogether.
A situation last week provided an excellent example.
On my way home I stopped at a red light behind a van. On the back of the van was painted the name of the company, Tot’s Taxi, in large brightly colored letters.
If I had to guess, I would say that Tot’s Taxi is a shuttle service for transporting children to their after-school care providers—sometimes necessary in a household with two working parents.
The only problem was that the entire rear end of this van was bashed in and looked as if it had been hit by a truck. Was the accident the driver’s fault? Was it the fault of the other vehicle? Were there even any children in the van at the time?
In the ten seconds I waited at that intersection I imagined all kinds of answers to these questions. But the first impression that came to my mind was of a frightened child trapped in the van as the accident occurred. At that point there was no way I would have ever let my own children be transported by this service.
Customers form similar impressions based on their perceptions of the company through its actions and behaviors. Look at your organization from the customer’s perspective and be sure that the impressions people are receiving are the ones you are trying to make.
