This excerpt from Richard Hanks' acclaimed book, Delivering and Measuring Customer Service, 2nd Edition was published on 1to1 Magazine's website.

The original version can be seen by clicking here.

"Satisfying customers is a means to an end," writes Richard D. Hanks in Delivering and Measuring Customer Service: This Isn't Rocket Surgery, 2nd Edition. "With the appropriate management actions…satisfied customers can become loyal customers—and profits increase."

In the excerpt from Delivering and Measuring Customer Service, Hanks examines how operational improvements based on customer feedback can deliver improved business performance:

Operations improvement through customer involvement

"I caught the bus - now what do I do with it?"

So, now what are you going to do with all of this feedback?

The answer comes to us from Sir Winston Churchill who had a favorite note he'd pen on documents that would come across his desk:

"Action. This Day!"

I have to admit, the most frustrating part of working with hundreds of companies on customer experience measurement is when I occasionally have a client who is doing everything "right" but still not getting positive results. They are diligently measuring customer feedback, steadily increasing their scores, and communicating results throughout the organization, but the company's financial performance continues to deteriorate and customers are still defecting.

When this happens, some internal murmuring starts, senior management begins to question the efficacy of gathering customer feedback at all, and I get a phone call from the CEO questioning how this could be so.
After a brief analysis of the circumstances, nine times out of ten, I discover the following situation:

The company has been conscientious in its effort to measure satisfaction. They have been completely committed to obtaining and communicating results. But, they have had no commitment to improving the level of service; no follow up on needed training, no inclusion of customer satisfaction results in bonus plans, and no one has been held accountable for following up with and recovering customers who complained about a service lapse. It's incredible. They will collect the customer feedback. They will listen with both ears. They will hear positives, negatives, and suggestions. And then they will just sit there and do… nothing. This then fuels a downward spiral, where dissatisfied customers never return, leaving a diminishing customer base, with a higher proportion of easy-to-please customers and therefore, an increase in satisfaction scores. Particularly disappointing are those companies or managers who say something like, "Well, we're doing pretty well so far, why do we need to change?" (Just remember what the man who jumped off the Empire State Building said as he passed the 40th floor on his way down…"So far, so good!")

Success requires action and commitment! You must take action. You can't sit still. Let me quote a client's customer who says it more forcefully:

"Why should I spend my time giving you feedback, when you
didn't pay attention to my comments the last time?"
(Actual customer comment)

Communicate and Measure!

One of the most important keys to continuous improvement is the need to institutionalize customer measurement. The best way I know to do that is to communicate, communicate, communicate! This can be through sophisticated means, such as formal review processes and large performance systems, or as simple as a "back office bulletin board". The important thing is to clearly set high expectations among the employees and then hold them accountable for delivering at a superior level. Best results come from employee involvement in developing and executing against improvement action plans.

Speed and responsiveness

"Do it! Do it now!" (Spencer W. Kimball)

Nothing speaks volumes like urgency!

Another best practice in dealing with customers involves the overwhelming uniqueness of speed of response. At this point in my life, for certain professions (like house contractors, appliance repair, cable TV installation, etc.), I have already surrendered and lowered my expectations to: "Please, just show up within an hour of your appointment and I'll be happy!" Imagine how much word-of-mouth business a carpenter or home repairman would have if they had the authentic reputation of showing up, on time, when they said they would be there.

I believe speed and urgency are among the most powerful differentiators in business!

Urgency is an attitude, an approach to excellence. It doesn't mean being harried or chaotic or out of control – it does mean being fully engaged. When he was a young man, my dad worked at a soda fountain. He loved to tell us stories about when he was the only one behind the counter and how fast he could serve people. As a kid, whenever I had to stand in a line with my dad, we would carefully watch the servers and I quickly came to learn the meaning of the term "sense of urgency." Another example of urgency occurs during football season. Football teams accomplish miracles during the last two minutes of a game. Why not play with that intensity and attitude for the entire game?

A similar thing happens right before holidays and just before 'finals week' for a college student. We suddenly get more organized, we make checklists, and use our time more efficiently.

Urgency says, "I've seen the game films, now I want to go out and hit somebody!"

People who radiate urgency complete tasks ahead of deadlines. I had a colleague that would always quote...

"If I really wanted it today, I would have asked for it tomorrow!"

One of our clients provides food for major sporting stadiums across the U.S. During a baseball game at Wrigley Field, a customer had ordered chicken strips to be delivered directly to her suite. When the food arrived, the chicken strips were cold. She had also received an invitation to take a survey, providing feedback on her experience. She called right away and complained about the cold food. Instantly, the manager received a notification on his cell phone. He went directly to his computer and pulled up this customer's information from the system. Before the game was over, he found the upset customer, apologized, and presented her with some fresh, hot chicken strips. The customer was blown away at such responsiveness. Every day, companies have the opportunity to "wow" their customers by inviting them to provide feedback and then responding with urgency.

Sales forces in conference rooms around the world are trying their best to come up with value-adds that will take the pressure off of price and help them close sales. But, they often are missing the solution right under their nose: strong relationships, fostered by speed, responsive service, and urgency, make price almost irrelevant.

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About the Author: Richard D. Hanks is chairman and president of Mindshare Technologies

About Mindshare Technologies
Mindshare drives operational improvement. Using Mindshare, companies improve operational excellence, foster consumer satisfaction, build customer loyalty, and support employee retention. Our industry experts guide clients in building comprehensive enterprise feedback management (EFM) solutions. Mindshare's proprietary survey technology captures the voice of the customer in real-time and immediately transforms it into actionable intelligence through powerful and incisive reporting. Mindshare serves more than 25 different industries including travel, hospitality, restaurant, financial, salon, automotive, and retail. For information, visit www.mshare.net.