Category Archives: Customer Service

August 1, 2011 · 11:22 am

Word of mouth advertising is NOT the best form of advertising.

I ask my audience, “What is the best form of advertising to build market share?” Invariably, almost everyone responds “word-of-mouth.” Yet I tell them they are wrong.

The reach of word-of-mouth has gone well beyond just family and friends. People are turning to the internet to use sites like Yelp, TripAdvisor, and even Facebook to make buying decisions. While the reviews and advice are virtual, it is still word-of-mouth advertising. Customers do it and most likely with technological advances, will do it even more. While customers don’t know any other customers, they trust their reviews. Michael Angelo Caruso, leadership and communication consultant, says it like this: “If I tell you how great I am, it’s advertising. If someone else tells you how great I am, it’s the truth.” Customers trust the reviews and ratings of complete strangers over advertising. But here’s the catch. Customers not only are looking at the good reviews. They’re making a no-buy decision on the poor reviews, too. For example, if a customer is looking for a hotel, he may veer away from one that has customers post reviews of paper-thin walls or poor housekeeping. A bad review will hurt you more than a good one will help.

So simple word-of-mouth, be it in person or on the internet, is not the best form of advertising. The best form of advertising is “positive word-of-mouth.”

There are three things that happen after you do business with a customer.

You do not meet the customer’s expectations. The customer is dissatisfied, never saying anything to you, but rants to everyone, including those he does not even know.
You meet his expectations but, in his mind, did nothing to set you apart. He may be satisfied, but he tells no one.
You exceed the customer’s expectation where he wants to continue to do business with you. Not only does he loyally return, he raves about you to others, even those he does not know.

QUI TAKEAWAY: It takes more than meeting a customer’s expectations to drive positive word-of-mouth advertising. Satisfied customers feel their experience is good, not better, just average. Nobody raves about average. And satisfied customers will leave when they find something better or less expensive. Exceeding customers’ expectations is the only outcome that actually builds your business. In order to become raving fans, customers must experience an interaction that is simply over the top. They must walk out your doors and say “Wow! That’s the best thing that has happened to us today.” Without the “wow” there is no rave review. And if you are not generating rave reviews, you simply are not generating enough positive word-of-mouth advertising to build your business. So, today, don’t treat customers as they would have expected. And don’t treat them more than they want to be treated. Instead, treat them a little better than they want to be treated. Don’t serve to sell. And don’t serve to satisfy customers. Instead, serve to WOW them. Serve to CARE. Be Magnificently Boring! And Be GREAT out there!

Why being Number One Matters.

Several months ago, I was speaking in Portland, Maine. I flew in the evening before the event, would do the presentation in the morning, and be flying back by the afternoon. So I only had one night in Portland. And if you are in Maine for only one night, there is only one thing you want for dinner. Lobster. So what would you ask the front desk agent for your only dinner in Portland, Maine? Just like you, I asked, “Where is the best place for lobster?” Not “Where is the second or third best place?” Not “Give me any old place.” “Where is the best place?”

I never met that agent before and most likely will never meet her again, but I will take her recommendation over any of the ads in the local dining guide. Or I’ll use Yelp, UrbanSpoon, or OpenTable and check out which restaurant has the highest ratings. Why? We trust their opinion over advertising. word of mouth advertising, whether in person or online, will trump print, TV, or radio ads every time.

Some may make a buying decision based on price. They want something that is the least expensive. But if price is not the driver, then people want to buy the best. If you saw a sign on a new salon that read “The cheapest hair coloring in town,” would you go in? No, because you equate price with quality. But even in the case of a lobster dinner in Maine, it is not about the product. Maine lobster is great lobster but many restaurants offer it in Maine. Even in your business, your competitors, if they really wanted to, could replicate or create a similar product. So if it’s not about the product, then it is all about the service and your customer’s experience. Wolfgang Puck, the celebrity chef says “If I go to a restaurant and the food is okay, but the service is great, then I’ll go back. If the food is great but the people aren’t, I won’t go back – and I’m in the cooking profession.”

QUI TAKEAWAY: So how do you create a customer experience that drives someone to give you a great testimonial or rave review? Your service simply must be the best for each customer. Remember, nobody raves about average. So if your service is not the best in the minds of your past customers, you don’t even get mentioned. Ultimately, if you are not the best, if you’re not Number One, you lose. You may survive, but you won’t be building market share. So don’t be average. Be the best. And be GREAT out there!

4 Comments

Filed under Customer Service, Marketing

July 23, 2011 · 3:12 pm

Three things you can do now to get ahead of your competitors.

Don’t serve to sell to customers. And don’t serve to satisfy your customers. Serve to WOW them.

Don’t treat customers as they would expect. And don’t treat customers as they want to be treated. Treat them better than they want to be treated.

Here are three things you can do now that can WOW your customers and set you ahead of your competitors:

Define and dissect just one of the “ow” or WOW” moments in your company’s customer experience. Take a potentially negative “ow” and make it neutral. Take a neutral moment and make it a “WOW” reward. For example, educate your customer service representative not to say “May I help you?” Your customer obviously needs help if he or she is approaching the representative. The proper response should be to greet the customer and ask “How many I help you?” Even better, “How may I serve you today?”
Today walk through one of your competitors’ locations with a mindset to “Be Their Customer”. What are some of the little things that they do better than you? How can you improve upon those touchpoints to enhance and differentiate you from them? Too often, in our day-to-day operation, we live in a silo mistakenly thinking that our competitors just sit there with no intention of doing anything different than before. Get out there to see for yourself how “the other guys” are doing.
Use the CASE Method to improve the customer experience. Identify just one different idea outside of your industry that you can CASE (Copy And Steal Everything) that would enhance the customer experience. For example, shopping mall food courts offer free samples of their menu to passing customers. If you work in a hotel, could you CASE that in your restaurant at lunch of your signature dinner dishes? How can you offer free samples from your company to potential customers?

QUI QUESTIONS: Why only three? Because nobody remembers Number Four. Why now? Nobody cares how good you used to be. So do it now. And be GREAT out there!