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.

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

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