Try This at Home

Time for another recurring article type here at RBfS. This time it is 'Try This at Home'. These posts will offer tips and tricks or info on products and services that I think are worth checking out. Today's Try This at Home is:

When I was in college I remember paying well over $100 per book, per class. So the way I figure it your total costs of books in college can easily top $4000. I'm an admitted bibliophile so I have kept all of my textbooks, but I know a lot of people choose to sell them back at the end of the semester to mitigate their huge cost. The problem is that most buyers aren't willing to pay nearly what you paid for the book. There are a few ways to save on textbooks, including:

• Buy Used textbooks - they are always cheaper and are often in better condition than you would expect.


• Sharing a textbook with a friend - Split the cost of a textbook with a friend who is taking the class with you. Beware sometimes this can cause real headaches.


• Purchase online textbooks - No don't purchase the book online, but rather purchase one of the new digital only copies available at a discount

There is however a new way to save on textbooks that I have discovered: Chegg.com. Chegg allows you to rent textbooks for a semester and return them! A brilliant idea that they claim can cut the cost of textbooks up to 85%. Beyond that they will plant a tree for every book you rent, employing a marketing technique where they give back to the community in order to appeal to the more issue conscious 18-25 demographic.

I have not used this service and in no way am I being paid by them I just think it has a lot of potential. Remember your opportunity cost before trying them out though. If you can rent a $100 book at an 85% discount you have paid $15. If on the other hand you buy a used textbook for $50 and sell it to a friend for $40, you are only out $10. Consider the extra work and risk of trying to sell your book for a fair price as well as the benefit of the planted tree :) before you make any decisions.

Let me know if you have used this service, and how it worked out.

Wise Words

"Customers don’t expect you to be perfect.

They do expect you to fix things when they go wrong.”

Donald Porter V.P., British Airways

A service recovery is a term used to describe actions taken to take an unhappy customer and turn them into a happy (or at least satisfied) customer. This can be done in many ways, sometimes it means taking a hit to your bottom line (comping a meal, giving away gift cards) but it doesn't always have to be (a sincere apology can go a long way). Service recovery is probably one of the hardest things to master in customer service, but it provides the greatest returns. If a company provides consistent satisfactory customer service, or even great customer service some people may recommend them to there friends. It is when things go wrong and a company fixes them, or rather recovers the service, that they can make an impression that will definitely result in positive word of mouth.

Think about it. When you have had a negative experience, alerted the company, and then been pleased with the outcome, what do you do? If you are like me you tell everyone you see, for the next few days, at least. You spread so much positive goodwill for the company for what? A 2-4-1 coupon and a sincere apology. Often times this is as little as it takes to satisfy a displeased customer. The key is to be fair, be sympathetic and admit fault. That is usually all a customer wants. If you empower lower level employees to do this you can likely avoid a lot of headaches in the long run (but that is a topic for another post).

What you should take from today's Wise Words is that for the most part any customer is eligible for a service recovery and that making things right will pay high dividends in the long run.

Do We Prefer Bad Customer Service?

In a recent article for, The Atlantic, Daniel Indiviglio postulates that: " We like bad customer service". I sincerely hope this isn't true but he does bring up some interesting points. The article is largely a response to another article written by Jay Goltz in the New York Times. Both make some compelling arguments as to the reasons behind why we encounter poor customer service.

Goltz postulates that there are three main reasons for poor customer service: Healthcare, aggressive pricing strategies and over educated workers. He writes "Smart companies are refocusing on customer service because they can see the value" and that "The customers will have the last say"

Indiviglio takes a different approach to the subject. He doesn't directly criticizes Goltz's message. Indiviglio says that: "we like what bad customer service provides: cheaper products" and that companies are not incentivized to provide great customer service because people care more about low prices. He illustrates this with a $50 difference in airline tickets.

I have to say that I agree with both authors to a certain degree. There are many factors contributing to diminished customer service. The question becomes not "how can we improve customer service?" but "should we?". For me the answer is a resounding "YES!" and I'll tell you why:

In most cases in the long run customers will punish firms with poor customer service. It is a firms goal to differentiate itself in the market. This is particularly important in today's consumer landscape. How often have you seen two firms in direct competition directly across the street from one another? Convenience has quickly become one of the less effective ways to differentiate (between physical retailers of course not online versus brick and mortar). For purposes of this discussion we can assume that goods are largely homogeneous (yes I like the lamps at Target and the coffee at Starbucks...work with me). So there are two main ways most retailers can differentiate: price and experience.

If it is true that, "cash is king" most firms will have to differentiate based on price. Slashing prices, offering rewards programs and cyclically raising and lowering prices are all strategies to get more people through the door. For a lot of firms this is going to be the best strategy, there has to be a cost leader after all. What results when firms try to compete to be the cost leader is often large scale attrition resulting in a lot of companies reducing profit margins some to the point of insolvency (I'm looking at you Circuit City, Linens & Things and CompUSA).

Another strategy s to differentiate based on the experience. Those of us lucky enough to shop at high-end retailers like Nordstroms or Apple know what it is to have excellent customer service. There is an additional value added to a good when it has been purchased in a positive experience. We can't all be the Cadillac of the industry (I don't think Cadillac is even the Cadillac of their industry anymore) but we can strive to enrich the customer experience for proposes of building loyalty and positive buzz.

Is there an easy way to measure the ROI for good customer service? Not that I know of. But you can't underestimate the impact of negative customer experience. the modern customer has networks far larger than they ever have before. Grassroots boycotts and negative press can be toxic for your business. Sure many consumers will look for the bargain. Cost differentiation in the right circumstance can be the best choice. However bear this in mind: you should provide great customer service because it could grow your business and increase your margins, but you should avoid bad customer service because it will eventually hurt your bottom line. Customers have great memories. They may not always punish a firm for poor service, but are you willing to roll the dice?

Highly Recommended: Clark Howard

Clark Howard is a radio/television personality, author and the subject of today's Highly Recommended post. I have been listening to Mr. Howard for years now and I have turned many of my friends into regular listeners. He offers common sense financial advice that is easy to understand and implement. He doesn't offer stock picks or get rich quick stuff just solid everyday advice.


You can get your Clark fix a few different ways. He has a regularly airing radio program, a spot on CNN's Headline News (HLN) and he has authored a stack of books. He has also created a website filled with resources for the consumer.

On the Clark Howard website you will find a host of tools to help you "Save More, Spend Less, and Avoid Rip-Offs", who could ask for anything more? The 'Clark Smarts' are in particular a great source of information about anything from purchasing a car to travel tips. I Highly Recommend Clark Howard.

Is customer service important in a recession?

I have been wondering if the downturn in the economy will result in an improvement to customer service in the marketplace. Conventional wisdom dictates that as companies tighten their belts and look to ways to recapture falling profit margins it is still important to provide excellent customer service to entice customers and encourage repeat business.

But do consumers care about customer service in a recession?

During tough times some may think that price (and with rising gas prices, convenience) becomes the only important differentiating factor between firms. I don't think this is necessarily the case.

Customer service speaker (sounds like a great job!) Kevin Stirtz recently wrote: "Customers are smarter now than ever. They know the difference between a company that exists to help them and one that exists to pick their pocket." He was talking about the importance of creating a customer-centric service culture to create a sustainable business and I couldn't agree with him more. Today's consumer works hard for their money and realizes now more than ever the importance of a dollar. They are going to be far more willing to part with those dollars on an emotional level at a company that truly values their business.

In a great article Lior Arussy asks the question: "Why’d we ever focus on customer experience to begin with?" He lists multiple factors for why it is that we focus and customer service and shows that none of those factors change during a recession. If anything it is more important to keep a focus on differentiation due to service during a recession because there are fewer dollars chasing goods.

I am happy to report that I have been experiencing some great customer service lately. It seems like everywhere I go cashiers and sales associates are truly happy that I am spending money at there stores. This could be due to a few factors. Maybe employees have made the connection between reduced sales and a reduced labour force. You could help employees come to this conclusion but be careful not to sound threatening. Your good intentions could have a negative impact. A "times are tough and we are all in this together approach" beats "shape up, or ship out" any day.

It also seems like there are a lot of people taking positions that they are frankly over qualified for. Because of the rise in unemployment some workers are taking what they can get. These star employees provide excellent customer service while raising the standards of the team. Problems may arise when these employees are enticed to leave for better positions. When the economy is back in an upswing retention will become an increasing issue. Your customers will notice when their experience changes and will punish you for it.

I think that customer service is without a doubt important during a recession. This is a short run view though. What will really be important is improved customer service in a recession continuing through the business cycle, that is where a company will move from just floating to being sustainable and successful.

Wise Words

For those readers who have worked in retail and the restaurant industry you are likely familiar with the "team huddle". You may know this by a different name but chances are you have either been a part of one, or even conducted one. They are mini-meetings usually at the beginning of a shift where management can communicate important (hopefully) information. I have mixed feelings about these meetings, mostly because of how poorly I have seen them conducted. I think in theory they can have a positive effect on morale, but they can also serve to demotivate your staff (keep checking in for tips on how to improve the former and avoid the latter).

Many huddles end with a quote. Using quotes in the right way can be an efficient way to get your point across. A great quote is easy to understand but can spark a dialogue amongst your peers. From time to time I will be posting quotes that I like (and maybe some I don't). I'll share what the quote says to me and encourage you to do the same in the comment section. This is the first in a series of posts about Wise Words.

"The way to gain a good reputation,

is to endeavor to be what you desire to appear."

Socrates

Most of the quotes I select will likely be a little less esoteric than Socrates', but I figure; "why not start with a bang?". Socrates is telling us that if you want to be known for doing something, you need to make sure that, you do that thing. Seems simple enough, but there is a lot of wisdom in this. Socrates tells us that our reputation is like a jewel, something we need to cherish. He also says that credit, is like fire. I love this metaphor. Once you start a fire it will continue to burn, all you need is a little kindling. Once you have a reputation in an industry as a provider of "quality customer service" for example, it is important to maintain this. You can't leave the fire unattended, you need to constantly provide the level of service your customers have come to expect or risk having your fire extinguished. Once a reputation has been tainted it takes a huge effort to get it back. To really stand out you need to constantly evaluate and reevaluate what success means for yourself or your organization and strive to achieve it. I think Socrates uses the word "endeavor" to illustrate that gaining a good reputation is something you have to work towards vigilantly to both achieve and maintain.

Highly Recommended: Planet Money

This is the first of what will likely be many: Highly Recommended, posts. Basically these posts will be a way for me to recommend some of my favourite products, services, websites or business resources. I will always be open and up front about my involvement with said products. I have mixed feelings about floging, which I will likely address in a future blog (keep reading!). Suffice it to say that RBfS will never have intentionally misleading posts, and I will never post about products or services without explaining my relationship to them.



Today's Highly Recommended is NPR's Planet Money Blog and Podcast.



The Planet Money Podcast is a radio program found on NPR affiliates throughout the US. It currently airs three times a week and the episodes run about an half an hour. I have been listening to the Planet Money Podcast since it started back in September of last year. I subscribe to the podcasts and listen to them on long trips. Planet Monet helps those that are "lost in a galaxy of economic news" to "make sense of the rapidly changing global economy". What I like most about them is their casual and sometimes irreverent attitude. The stories always have a ton of information about some very complicated economic topics, but they present them in a very accessible way. I remember one episode in particular where they explained some aspect of the mortgage industry using the purchase of a dollhouse with monopoly money as a metaphor. They often consult with top economists on issues but are always good about explaining jargon to the layman listener.



The Planet Money Blog is equally worthwhile. They have several small posts a day focusing not only on the big economic questions but also how they relate to us normal folks. That is the charm of Planet Money, they are able to explain the most complicated issues by relating them to everyday situations or demonstrating them through simple scenarios.



I highly recommend checking out both NPR's Planet Money Blog and Podcast. Enjoy.

DC

Business cards for waiters?

I went to the Olive Garden this evening with my parents and the waitress left the pictured card. It reads:

"It was my pleasure serving you today"

I think this is a great piece of marketing for the waitstaff. It gives them a tool to help build a personal relationship with clientele. It can help serve as a reminder for guests returning on a regular basis as to who their favorite server was.

The card also facilitates a more professional and personal relationship with the guest, which may result in bigger tips :D and regular guests.

It was brought to my attention that some diners may see these cards as insincere. They may also begin to question the cost of these cards and how it has been rolled into the menu prices. I think the relative cost per guest experience is negligible and that the expense is worthwhile. Even if the effect these cards have is on an unconscious level they are sure to enrich the service experience and at least for the time being serve to differentiate Olive Garden in the marketplace.

This would be an easy tactic to adapt to your organization. Even small businesses can use this strategy to help encourage a higher touch at the customer contact level. I have used OvernightPrints.com in the past to get business cards. For a relatively low cost you could purchase contact cards for your frontline staff to help encourage customers you already have to return, which may have more of a relative impact than advertising to potential customers who may never come in.

DC

Say my name, say my name....

Next time you are interacting with a client, try this simple trick: use their name. It sounds obvious and simple but it can have real impact in a retail/dinning experience.

When I was waiting tables to put myself through college the restaurants I worked for often employed "secret shoppers" in order to insure quality customer service. One of the aspects we were graded on was a warm goodbye. It is hard to overestimate the importance of a fond farewell in the customer service experience.

I was recently at a fast food restaurant drive through (it was a moment of weakness) and I was thanked, as I usually am, by the attendant. The difference was this time it felt like a warm valediction instead of a forced utterance. The part that blew me away was that the employee actually used my last name. This is such a simple trick, but one that I don't think enough people use.

Most of us now pay with credit or bank cards with our names on them. It is so easy to read a name during an interaction. When I was working for tips this is something I would gladly do, as I had read once that it ingratiates yourself to the tipper. To have this done at a fast food restaurant blew me away. I will likely return to this location more often because of the generally more positive impression that I have. Again this is such a simple trick that should be employed more often. The wounds of standing in line could easily be resolved by a pleasant "thank you Mr. So-and-So" at the end of a retail experience. High-end retailers like Nordstrom do this why can't Target and Wal-mart?

So how would you implement a behavior shift like this? I think that you could always employ methods like secret shoppers but the real challenge is to integrate this behavior into your culture. During morning meetings and interactions it is up to the leaders of an organization to set the standard. Develop a script for yourself and stick to it. Try thanking your employees by name more often and in lieu of simple good byes and see if you don't notice a change in how they interact with you, each other, and the clientele.

The Beer Summit

In my opinion few indigestibles have as interesting a history as beer. Beer has been enjoyed by Pharaohs and Kings. Even our founding father's were beer drinkers. George Washington had a brewhouse at Mount Vernon. Many of our Presidents have been beer drinkers right through to Mr. Obama.

Mr. Obama undoubtedly knows that beer can serve as a tool to lubricate uneasy conversations, and as such he invited Harvard Professor Henry Gates and Cambridge, Mass., Police Sgt. James Crowley over during their 15 minutes, for a beer. Mr Gates is the gentleman who you may recall was arrested for apparently breaking into his own house last week. This Beer Summit has sparked a dialogue about race relations in this country. Many questions have arisen regarding racial profiling, police harassment and whether Obama is really our "post racial" president. I'm going to leave those topics to other blogs, my thoughts are focused on the beer.

It was released in advance by the Whitehouse Press Secretary that Gates would enjoy a Red Stripe, Crowley a Blue Moon and Obama a Bud Light (which was originally reported to be a Bud and then changed). These choices in beers have actually resulted in some heated discussions of late. All three beers are products of large foreign brewers. Red Stripe is a product of Jamaica but the parent company is British, Blue Moon despite some tricky labeling is not Belgian it is Canadian. Bud Light however could be thought of as Belgian as it is now the product of InBev.

I'll disregard the choices of Gates and Cowley as largely apolitical but a little inappropriately stereotypical for such an occasion. I am however disappointed in Mr. Obama's choice. I understand that it likely wasn't even his choice, he has handlers and political image artists that probably make the decision for him, but I think it was a poor one.

By choosing a Bud Light, he is appealing to the lowest common denominator. Which I guess is what you do in a democracy. He chose the most popular beer, when he could have opened us up to something new. Something sophisticated. Something truly domestic. He could have elevated our paletes as he has the dialogue in this country. I could see our previous President as a Bud Light man but not Barack. I bet at home, if he drinks beer it is not a Bud Light. I would wager Barack is likely a Hieneken man at times, but sipping from that green bottle in public would be political suicide. Some have joked that TsingTao would have been an appropriate choice as China holds the note to a significant portion of our debt. I could also see Barack drinking some exotic micro-brew which would have sent the press into hysterics.

I personally would have liked Mr. O to choose a Sam Adams. NPR had a great interview with Sam Adam's founder Jim Koch on this subject that is worth a listen. I think by choosing a quintessentially American beer Barack would have been sending a great "buy American" message. Also it could have opened a lot of Bud Light drinkers to a more sophisticated beer drinking experience.

Too often do we suffer mediocrity just because it is common.

DC

It's National Cheesecake Day!

I know it's late notice but today is: National Cheesecake Day. Now I can already assume that you knew this, as it was circled on your calendar. You have likely been planning for months to celebrate this most sacred of holidays with your loved ones. You have probably picked out an outfit, maybe worked out a little more often and prepared a small speech to share as you and your guests reflect quietly on this solemn occasion.


Or maybe like me you find made up holidays hilarious and you will poke fun at them at any opportunity.

In the interest of full disclosure I worked for the Factory for a few years and really enjoyed my time there. This is a great marketing tactic for the CAKE. They have created a non-Holiday to promote their restaurant and the kick off of their newest flavour: Stefanie’s Ultimate Red Velvet Cake Cheesecake. Beyond this CCF will be donating $.25 to Feeding America for every slice of said cake for the next 12 months.

I can't speak to how good the new cake is, but let's face it: if it is from the Cheesecake Factory, it has to be good. What I am more interested in is how CCF has found an opportunity to promote themselves while giving back to the community. I think this is a strategy that will increasingly become the norm as younger, more "issue oriented" consumers enter the marketplace. Rather than appealing to greed and offering say a diamond ring baked into 5 random cheesecakes (that would be a great promotion, but could make for an awkward date) they have found a more socially concious way of promoting themselves.

The way I found out about this particular promotion was through Facebook. CCF eschews traditional advertising instead choosing to rely on word of mouth. What better way to promote word of mouth than Facebook? I think again this is a trend that is not going away and we will be seeing Facebook get used more and more as a promotional tool, for better or worse.

Despite many Americans cutting back on the frequency of dining out, and some scathing news filler stories about how restaurants like CCF are the cause of our expanding waistlines, the company has been doing well of late. They have made some smart changes to the menu, offering some healthier alternatives and with continued smart promotions like, National Cheesecake Day, I have a feeling they will be around for a while.

DC

What's in a name?

"What's in a name? That which we call a rose

By any other name would smell as sweet."

Romeo and Juliet (II,ii, 1-2)

I decided to call this blog "Ring Bell for Service" after the sign you commonly see at Inns and Auto Body Shops. I've done so with a sense of irony as, it is both a sign and a sentiment that I hate. I think that customer service in our society is in decline. I believe that we all live as consumers in this culture and that if we have an open dialogue about how to be better consumers we can have a positive effect on the service environment (I'm sure this will be a recurring topic in this blog)

I don't intend this blog to strictly focus on customer service. There will likely be a lot of different posts on here ranging from comments on current events, and product reviews to musings about life and funny anecdotes. In the coming days I plan to try to come up with some convention for making posts easier to identify by their titles etc. I'll keep you posted.

I guess I could have called this blog anything really, thankfully Blogger has few restrictions and with creative spelling we can call ourselves just about whatever we want :) I chose this name because it speaks to me right now, and it should be easy to remember. The tone and content of the blog will not be restricted though so whether this was called RBfS or DCs Blog it is still going to be an exploration of topics that interest me (and I hope my followers) and an evolving product.

I plan on having a long journey ahead of me, I hope you will join me.
DC

Everything has to have a beginning...

Few things are as intimidating to an artist or author as a blank page. Don't get me wrong, it is thrilling to look at an empty canvass and think of all the wonderful possibilities ahead but that first brush stroke is the second hardest (The hardest stroke is obviously the last one because you have to make the decision that something is completed). I've been staring at a blank computer screen for a while now and feel the same sense of hesitation I do when I create anything. There is usually doubt initially. Maybe fear. It is like the small pit in my stomach I may get just before I give a presentation to a crowded room.

The sense of hesitation to create something is a feeling I have come to accept and even love. It is the sense of pain philosophers describe as necessary to experience pleasure. I feel like it is a notification of reaching the tipping point (which is also the title of an excellent book by Malcolm Gladwell and an equally good album by The Roots). The tipping point is that point in creation where like a roller coaster reaching the apex of its ascension you are filled with the most potential energy. Soon I will be gliding effortlessly through creative expression and public communication through this blog but for now it is all potential.

You may be asking "So what will RBfS be about?". I think I'll leave that unanswered for now, suffice it to say this will be like any other blog, a place for me to communicate my ideas in a public and hopefully interactive forum. I welcome feedback and envision this one day as a place where people can freely share their thoughts and opinions on topics of interest.

Thanks for reading,
DC