The success of any organization depends on high-quality customer service. But for companies that strategically align customer service with their overall corporate strategy, it can transcend typical good business to become a profitable word-of-mouth machine that will transform the bottom line. This book challenges aspects of conventional wisdom.

CONTENTS FOREWORD xiii INTRODUCTION: WHY STRATEGIC CUSTOMER SERVICE? 1 Beyond the Complaint Department 3 Why Bother with Strategic Customer Service? 5 Everyone Has a Stake in Service 7 The Origins of This Book 9 The Structure of This Book 10 Starting Strategically 11 PART 1: THE IMPORTANCE OF CUSTOMER SERVICE 1. SEEING CUSTOMER SERVICE STRATEGICALLY: Understanding the True Role of Customer Service in Your Business 15 How Customer Service Affects a Business 16 The Bad News 16 The Good News 18 Making the Business Case for Improvements in Service 19 Clarifying Key Concepts 21 A Model for Maximizing Customer Satisfaction and Loyalty 23 Do It Right the First Time (DIRFT) 25 Respond Effectively to Questions and Problems That Arise 25 Feed Data About Issues to the Right Parties 26 Capitalize on Opportunities to Sell Ancillary or Upgraded Products or Higher Levels of Service and Create Connection and Delight 27 First Steps to Strategic Customer Service: Economic Imperative and VOC 28 Key Takeaways 29 2. WHAT DO CUSTOMERS WANT (AND WHAT SHOULD WE DELIVER)? Understanding Customer Expectations and Setting Goals Strategically 31 Unexpected Reasons for Unmet Customer Expectations 32 Trends in Customer Expectations About Service 33 Broad Trends in Customer Expectations 34 Operational Expectations for Tactical Customer Service 36 Setting Service Goals Strategically 41 Operationalizing the Process Goals 43 Financial Goals 46 Key Takeaways 48 PART 2: IDENTIFYING IMMEDIATE REVENUE AND PROFIT OPPORTUNITIES 3. TACTICAL RESPONSES AND STRATEGIC SOLUTIONS: Dealing with Customers’ Problems and Addressing Their Causes 51 Tactical Versus Strategic Problem Solving 53 Five Steps to Tactical Problem Solving 54 Step 1: Solicit and Welcome Complaints 55 Step 2: Identify Key Issues 56 Step 3: Assess the Customer’s Problem and the Potential Causes 57 Step 4: Negotiate an Agreement 57 Step 5: Take Action to Follow Through and Follow Up 59 Six Tasks Connecting the Tactical Response to the Strategic Feedback Loop 59 Task 1: Respond to Individual Customers (and Capture Data) 60 Task 2: Identify Sources of Dissatisfaction 61 Task 3: Conduct Root Cause Analysis 61 Task 4: Triage to Solve/Resolve Systemic Problems 62 Task 5: Provide Feedback on Prevention 63 Task 6: Confirm Improvement of Product and Service Quality 63 Unconventional Management Wisdom 64 Redefine Quality 64 Aggressively Solicit Complaints 65 Get Sales Out of Problem Solving 65 Assume that Customers Are Honest 65 Key Takeaways 66 4. FIXES AND FINANCES: Making the Financial Case for Customer Service Investments 67 The Case for Great Customer Service 69 How CFOs Think 71 Questions to Guide Modeling the Customer Experience 72 The Market Damage Model: What’s the Damage? 74 Data and Output 75 Financial Impact 77 What Is the Payoff if We Improve? 78 Objections to the Market Damage Model 80 The Word on Word of Mouth 81 Quality and Service Allow You to Get a Premium Price 82 The Market-at-Risk Calculation: Identifying Customers’ Points of Pain Across the Whole Experience 84 What About Customers With Limited or No Choice? 87 Impacted Wisdom 88 Key Takeaways 89 5. INFORMATION, PLEASE: Developing an Efficient, Actionable Voice of the Customer Process 90 The Objective of VOC and Its Key Building Blocks 91 Three Sources of VOC Information and What They Tell You 93 Internal Metrics 93 Customer Contact Data 94 Survey Data 95 The Attributes of an Effective VOC Process 97 Unified Management of the Program 98 A Unified Data Collection Strategy 98 Integrated Data Analysis 99 Proactive Distribution of the Analysis 99 Assessment of Financial Implications and Priorities 100 Defining the Targets for Improvement 100 Tracking the Impact of Actions 101 Linking Incentives to the VOC Program 101 The Two Major Challenges in Using Customer Contact Data in VOC Programs 101 Developing a Unified, Actionable Data Classification Scheme 102 Extrapolating Data to the Customer Base 104 Getting Started in Improving Your VOC Program 105 Key Takeaways 106 PART 3: RESPONDING TO CUSTOMERS’ QUESTIONS AND PROBLEMS 6. DEFINING PROCESSES THAT WORK FOR CUSTOMERS: Using the Eight-Point TARP Framework for Delivering Service 111 Framing the Work 112 Tactical Functions 114 Intake 114 Response 115 Output 115 Control 115 Strategic Service Functions 115 Analysis 116 Evaluation and Incentives 116 Staff Management 116 Awareness 117 Why Use the Service Delivery Framework? 117 The Flowchart of the Framework 120 Best Practices for Improving Specific Functions and Activities 122 Activities Within the Tactical Functions 122 Activities Within the Strategic Functions 125 Implementing the Framework 127 Map the Tactical Service Process with Visual Tools 128 Use Employee and Customer Input to Redesign the Process 128 Tweak the Technology to Enhance Tactical Service 129 Create or Strengthen the Analytical Functions 129 Enhance Strategic Service Across the Organization 129 Practice Continuous Improvement 129 Get Your System Framed 130 Key Takeaways 130 7. TECHNOLOGY AND THE CUSTOMER INTERFACE: Creating Systems That Customers Will Use—and Enjoy 131 Why Customers Love-Hate Technology 132 When Customers Hate Technology 133 When Customers Love Technology 133 Getting the Customer-Technology Interface Right 134 Make the System Intuitive for Both Novices and Vet erans 135 Create a System That Will Save the Customer Time and You Money 135 Educate and Encourage Customers to Adopt the Technology Cheerfully 136 Start With a Few Functions to Guarantee Success 138 Which Technology Should You Apply? 138 Nine Technological Applications to Consider 138 Interactive Voice Response 139 E-Mail and Chat 140 Web sites 142 Web Video 143 Automated Web-Based Self-Service 144 Recording Interactions 145 Mobile Communications 146 CRM and Data Mining 146 Machine-to-Machine Communication 147 A Few Words on ``Push’’ Communications 149 Key Takeaways 150 8. PEOPLE ARE STILL PARAMOUNT: Four Factors for Creating Sustained Front-Line Success 151 The High-Turnover Mentality and Its Subtle Cost 152 The Alternative to High Turnover 153 Factor 1: Hiring the Right People 154 Positive Attitudes Make a Difference 154 Proper Staffing Is Essential 154 Factor 2: Providing the Right Tools 155 Give Employees the Information They Need 156 Empower Them to Act 157 Use Feedback Channels 158 Factor 3: Offering the Right Training 158 Four Types of Training 159 Factor 4: Supplying the Right Motivation 161 Competitive Compensation 162 Superior Supervision 162 Excellent Evaluations 163 Avoiding Problems with Satisfaction-Based Incentives 166 Recognition and Advancement 168 People Are the Solution 169 Key Takeaways 169 PART 4: MOVING TO THE NEXT LEVEL 9. THE ULTIMATE CUSTOMER EXPERIENCE: Boosting Revenue by Creating Delight 173 What Is Delight? 175 The Economics of Creating Delight 177 The Cost of Creating Delight 178 The Cost/Benefit Analysis 179 Five Ways of Creating Delight 180 Enhanced Product Value 181 Enhanced Transaction Value 181 Financial Delighters 182 Proactive Communication 182 Creating Emotional Connections 182 Discover Your Specific Delighters 183 Listening Programs 183 Asking Customer Service Reps 184 Customer Compliments 184 Surveying Customers 184 Watching the Competition 185 Cross-Selling and Up-Selling 186 The Right Way to Cross-Sell 187 Establishing a Cross-Selling System 188 Foster Creative Delight 188 Key Takeaways 189 10. BRAND-ALIGNED CUSTOMER SERVICE: Building the Service Strategy Into Every Function 190 Customer Service as the Guardian of Brand Equity 191 Customer Expectations and Experiences 193 The Nine Building Blocks of Brand-Aligned Service 196 Clear Brand Promise Tied to the Company Heritage 197 Clear Accountability for the Brand 198 Focused Values That Reinforce and Facilitate the Brand Promise 199 Measurement and Feedback 200 Formal Process for Every Touch 201 Ongoing Communication to Everyone 201 Planned Emotional Connection with the Customer 202 Employees Who Deliver the Brand 203 Customized Brands for Market Segments 203 Tiered Customer Relationships and How to Handle Them 203 Brand-Aligning Strategic Customer Service 205 Step 1: Identify the Brand Characteristics Your Company Wants to Reinforce 206 Step 2: Assess Your Current Level of Brand Alignment 206 Step 3: Identify Opportunities for Improvement 207 Step 4: Measure the Impact 207 Stand by Your Brand 207 Key Takeaways 207 PART 5: INTO THE FUTURE 11. RIDE WAVES WITHOUT WIPEOUTS: Dealing with Trends in Labor, Technology, and Politics 211 Labor Trends: Challenges in Attracting Human Resources 212 Addressing the Labor Shortage in Customer Service 213 Outsourcing for Better or Worse 214 Technology Trends: The Challenge of Using Technology Intelligently 218 Addressing Product Complexity 218 Using New Communication Technologies 221 Political Trends: Challenges in Regulatory and Safety Concerns and Environmental Issues 223 Coping with Regulatory and Safety Issues 224 Addressing Environmental Concerns 225 Respond, Don’t React 227 Key Takeaways 227 12. A THOUSAND THINGS DONE RIGHT: Translating the Strategy of Delivering Superb Service Into Organizational Behavior 228 Appointing a Chief Customer Officer 229 The Rationale and Prerequisites for Hiring a CCO 230 Key Functions of the CCO 232 How to Make the Position of CCO Work 233 Focusing All Functions on the Customer Experience 235 Map the Process to Define the Roles in the Customer Experience 236 Rationalize the Process: Clarifying the Roles of Sales and Customer Service 237 Linking Incentives to the Right Metrics 239 Twelve Guidelines for Linking Incentives to the Right Metrics 239 Use Incentives in Specific Environments 242 Delivering a Great Experience Through Channel Partners 245 Never Declare Victory; Forever Stay the Course 247 Key Takeaways 248 INDEX 251

As you know all too well, common differences among people—age, gender, race, ethnicity—can prevent even the most talented and dedicated employees from working together. Today, the success of nearly every business depends on overcoming generation gaps, gender biases, and multicultural misunderstandings. How can you effectively deal with these sensitive issues without reinforcing stereotypes and further alienating your diverse employees? You’ll find the answer—in fact, an array of answers—in The Diversity Training Activity Book. This user-friendly guide presents a collection of 50 exercises, developed by two respected diversity trainers and tested on hundreds of workshop participants throughout the United States and Canada. From icebreakers, like “Name That Feeling,” to mini-case studies, role plays, and group games, these short and simple activities confront diversity challenges in a highly engaging, non-confrontational way. Participants will not only examine their assumptions and expectations about other cultures, but also become more aware of their own cultural values, beliefs, styles, habits, and attitudes. While learning with coworkers from wide-ranging backgrounds and perspectives, they’ll grow in empathy and master the critical skills to: • Minimize miscommunication and misinterpretation. • Understand differences in dress, demeanor, and social customs. • Respect different senses of space and time-consciousness. • Maximize the unique resources of female and older workers. • Manage a culturally diverse and changing workforce. • Identify intercultural incidents and resolve intercultural conflicts. Every exercise comes with complete trainer instructions. You’ll also get materials you can easily modify for use as handouts or PowerPoint presentations. With The Diversity Training Activity Book, you can design a lunch-hour seminar or a weekend retreat that will make a positive difference in your diverse workplace. Before long, you’ll break down barriers and open minds to working together productively and harmoniously. Jonamay Lambert is Founder and President of Lambert & Associates, Inc., a consulting firm specializing in diversity, leadership, and change management training. She has designed and implemented training programs for Fortune 100 companies and a wide variety of private and public organizations. She lives in Chicago, Illinois. Selma Myers has brought intercultural training to universities, hospitals, government agencies, and the Olympics. A professional mediator, she is also the co-author of Conflict Resolution Across Cultures. She lives in LaJolla, California. Together, Ms. Lambert and Ms. Myers have written 13 trainer’s guides in the Diversity at Work series.