The Recession and Your Consumers

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The Recessionand Your Consumers
Consumer Confidence is Low
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How are Your ConsumersResponding?
Discretionary Spending down Luxury items
out Vacations on hold
Childrens allowances cut
Savings are Up Spending is
Down Value Shopping Coupon Clipping
Price Comparisons
Frugality is the new Green
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How are Businesses Responding?

• Slashing prices
• Holding ubiquitous sales
• Genericizing their brands
• Playing exclusively on the hard needs field
• Setting a dangerous precedent

• Focusing on service
• Returning to personal interaction
• Fostering loyalty
• Training their employees
• Upgrading technology
• Positioning for the recovery

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Can the Economy Improve Service?
We Are Starting to See it Happen...
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Here Are Some Examples of Change

• Wegmans said that the tough economic climate
  brought one of the highest emotional connections
  weve ever felt with our customers.
• Home Depot has adopted the most extensive
  customer service training program they have ever
  embraced
• My Macy's suggests active listening to
  customers.  They are embarking on their most
  significant transformation in decades.
• Saks are adjusting their assortment  to
  accommodate a more meaningful and realistic 
  reflection of today's economy.
• Zappos redefined on-line service with rare
  interaction with a person

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Here Are Some Examples of Change

• When we ask customers what do they like about
  WaWa, they say, its that our people like each
  other- and customers get caught up in that
  experience.
• On-Line Grocer FreshDirect says Our food is
  Fresh Our Customers are Spoiled.
• Gieco instead of focusing on savings, they are
  elaborating on a 97 satisfaction rating among
  customers
• Sears and JC Penny are using technology to make
  it easier for customers to find what they want
  on-line or in-store, whatever is their
  preference.
• Starbucks is making changes to the way it grinds
  and brews coffee to win back customers

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Last Man Standing
Why is
that so?
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• So Why change?

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Who Serves Well?
Americas most successful companies are
committed to providing exceptional service.
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2008
External Validation
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1 in Entertainment
1 in Hotels
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Internal Validation

• In the Top 100 every year since inception (1998)
• In the Top 100 in 2009

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2008 Worlds Most Innovative Companies (External
Validation)
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How can you differentiate yourself from
competition
and create loyal, lasting relationships?
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by
HYD WYD
How you doWhat you do
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• The Roadmap

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Five Steps to Service Excellence

• Develop Your Purpose
• Create Your Values
• Understand Soft Needs
• Satisfy Soft Needs
• Implement Your Service Action Plans

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Develop Your Purpose

• What is the Purpose of a Purpose?
• Purpose drives why and how we do, what we do.

Step One
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Difference between Mission and Purpose

• Mission
• To safely and cost-effectively transport our
  customers, always on time.
• Purpose
• Southwest Airlines is dedicated to the highest
  quality of Customer Service delivered with a
  sense of warmth, friendliness, individual pride,
  and Company Spirit.

Step One
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Difference between Mission and Purpose

• Mission
• Providing accommodations around the world through
  a diverse portfolio of brands that satisfies a
  wide variety of tastes, geographic requirements,
  and financial considerations.
• Purpose
• To win in service by proactively offering
  customers the most valuable assistance,
  information, and support in a uniquely warm and
  caring manner.

Step One
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Create Your Values

• After establishing your purpose,you must define
  your Values.
• Values are inner guidelines that direct behavior.

Values Attitudes Behaviors Motives
Step Two
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Understand Needs

• Hard Needs
• Satisfied by what you do
• Example
• I need to have the best assortment of items to
  compliment and support my aspirations.
• (YOUR Work)

• Soft Needs
• Satisfied by how you do what you do
• Example
• I need to feel welcome, at home, important,
  and informed by smart people who care about me.
• (YOUR Behavior)

Step Three
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Apple
Hard Need

• I need to connect via phone, e-mail and text.
• I need to feel important, special and
  significant.

Soft Need
Step Three
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Hard Needs versus Soft Needs

• Hard Needs are fundamental your competitors
  satisfy them.
• Satisfying Soft Needs provides a unique point of
  differentiation.
• Soft Needs are more difficult to uncover.
• Soft Needs require an emotional connection.
• Awareness, discussion and sensitivity are the key.

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Understanding Soft Needs

• Apple doesnt just sell computers. They satisfy
  our need to be cool, informed and educated.
• Michelin doesnt just sell tires. They satisfy
  our need for safety, reliability and peace of
  mind.
• Axe doesnt just sell deodorant. They satisfy a
  young mens need to be attractive.
• Disney doesnt just sell a day at an amusement
  park, they satisfy our need for family memories.
• Dont just sell me things. Sell me ideals,
  feelings, self-respect and happiness.

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The People We Serve Need

• To trust you
• To be trusted
• To have your undivided attention
• To be appreciated
• To be respected
• To be listened to
• To not be judged
• To be focused on
• To be valued
• To be supported

• To be comforted
• To have confidence in you
• To be independent
• To be recognized
• To be informed
• To be praised
• To experience pleasure
• To have peace of mind
• To contribute
• To feel important

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Starbucks

• Were known for our coffee.
• But, our people make us famous.

Hard Need
Soft Need
Step Three
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Understand Soft Needs
Hell see you now, but only because he craves
attention.
Reprinted by permission from Peter C. Vey
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Satisfy Soft Needs
There are no expiration dates on memories
Step Four
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How to Create Memories

• Exceed expectations
• Resolve conflicts and solve problems
• Handle complaints
• Communicate better
• Focus on those you serve
• Empower everyone
• Diffuse difficult people
• Manage your time
• Preserve trust

Step Four
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• Create Your Service Action Plan

Step Five
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Who Do You Serve?
Customers / Clients
Management
You!
Peers
Direct Reports
Their Direct Reports
Step Five
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What Is the Service Action Plan?

• Written
• Simple
• Shared
• Referenced
• Current
• Created for everyone you serve

Step Five
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That is the Roadmap

• Develop your purpose
• Create your values
• Understand Soft Needs
• (Internal External)
• Satisfy Soft Needs
• Implement your Service Action Plans

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• Traits of Great People

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Difference between Behavior, Attitude and Skill

• Behavior is how we act...
• Attitude is the way we think...
• Skill is our ability to do something well...

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Behavior Attitudeor Skill?
Martha Stewart
Roger Clemens
1980 Miracle on Ice US Olympic Hockey Team
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• What do we admire most in people?

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Your Mom
Your Neighbor
Your Teacher
Your Brother
Your Mentor
Your Peer
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Traits of Great Service People

• Honesty
• Integrity
• Humility
• Respectfulness
• Intelligence
• Resourcefulness
• Proactive
• A Positive Attitude
• Approachability

• Sense of Humor
• Flexibility
• Creativity
• Passion
• Enthusiasm
• Consistency
• A Team Player
• Loyalty
• Unrelenting Pursuit of Excellence

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Seek Continuous Improvement
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The Challenge?

• How do we keep getting better at getting better?

Feedback
The Answer?
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Feedback

• Ask these two questions
• What are three things you liked about what I did
  today?
• What are three things I can do to improve?

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• How Do I Get Started?

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Once a Day, EverydayDo ONE extraordinary thing
for someone else.
Perform one unexpected act of service
Create one Service Memory
Do one thing thats not your job
Make one complimentary remark
Perform one act of charity on behalf of someone
in need
Call one person to whom you havent spoken in
awhile
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• An Observation?

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How do you want to be remembered?
I want to be remembered for how I did what I did.
I want to be defined by what I did in life!
HYD WYD
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Bob_at_relcommunications.com RELivingston_at_twitter.co
m
Thank you very much!