You’ve certainly heard companies talk about this concept called, “added value.” So what does it mean? And, if the big companies are doing it, why can’t you?

Added value is what gives a company the right (decided on by the customer) to charge more for a product or service than what it costs them to buy or deliver it. The automobile industry is a classic example of adding value and charging you for it.

What is the functional value of an automobile? Transportation, right? So what is the added value? The added value is the body style, the color, the sound system, the sun roof, the interior comfort, and so on. Then, the industry recognized that people were also willing to pay for added safety with dual air bags, early warning signs, alarm systems, etc. These are the tangible things that add value.

There are also a host of non-tangibles (or perceived tangibles) items that people are willing to pay for such as a lifetime service guarantee, 24 hour road-side service, and many other things you can’t actually see. These are things that you may or may not end up using, but they sure add value to the vehicle, and many of us are willing to pay for them.

So ask yourself, and your staff, what is your business’ functional value, and what is your added value? What is it that gives you the right to charge what you charge? What does your competition offer? What do your customer’s find to be important? During the holidays, some grocery stores offer a 24 hour hotline on how to BBQ a turkey or other holiday recipes because that is important to their customers. What do you offer? What can you offer?

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit ©2008 Customer Loyalty Builders, Inc.

I’m sick and tired of dealing with “new” employees who don’t know their job. At a local restaurant I frequent, when something goes wrong, I tell them. I was at the counter paying my bill when the “hostess” asked very politely, “and how was everything this evening?” I said It was very good, except…”

I won’t go into the details, however, I will tell you it was a small issue involving an unexplainable charge for fifty cents. She then looked at me with total blankness, obviously not expecting any answer other than “Oh…it was great, thank you for asking.” She had no idea what to do, who to talk to, or how to respond. So, she said, “Oh, sorry, I’m a new employee and I don’t know and proceeded to ring up my bill. The moment was as uncomfortable for her as it was for me. She gets 10 points for being honest, but loses all 10 for not taking any initiative. She was simply among the ranks of those we call “new employees.”

I feel empathy for new employees. Is it their fault? No. Is it their problem? No. Can they do something about it? No. But can they take responsibility for learning more about what their job is? Yes…well…maybe.

If your business involves dealing with customers face to face or on the telephone, and you hire employees to have these “interactions” with customers, you have to take responsibility. Give these good people a little help. It’s an old cliché I know, but it’s true, “You never get a second chance to make a first impression.” How many new or potential clients do you lose because of this? Isn’t just one, too many?

You don’t (necessarily) have to set up a rigorous “new employee” training program, but at least have an outline of the core products and services you offer. Teach all your employees (new and seasoned) about each. Maybe you can delegate this responsibility. Add a little about your philosophy on how you run your business. Do you negotiate prices? Do you take refunds (if you don’t…why not)? Is customer service a high priority (sure, we all say it is), and what are you willing to give away to maintain a satisfied customer? Share this philosophy with your staff. Then give them the final touches; how do you want them to dress, answer the phone, greet people at the counter, take transactions, take orders, and so on. Go through all the main components of your business and help them to be a good service provider. Don’t leave it to chance!

The truth is, your employees probably want to do a good job of satisfying customers. I know it’s important to you. We all know it’s important to your customers. Let’s face it, competition is stiff out there, it’s one way you can differentiate yourself from your competition.

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit ©2008 Customer Loyalty Builders, Inc.

I thought that headline would get you to look. Many organizations “staff up” for the summer, as key people go on vacation. These new hires are thrust out of a minimal training program (they’re just here for the summer anyways, why spend a lot of time and money training?) if any at all and left to fend for themselves. You’re customers don’t a take a vacation – hopefully - and, neither should your service standards.

Think of how surprised you would be if you went to your favorite theme park, on your vacation, and they couldn’t answer your questions or rides were closed because the “normal” employees were on vacation?

I’m always amazed when I hear tales of how things change when the vacation season arrives; phones may or may not be answered, information may be sent out in a few days, E-mail might or might not be checked store hours may actually be changed. I am amazed to learn how managers and supervisors seem to be resigned to the fact that their customers will be subjected to sub-standard experiences. Vacations may not be to blame for inconsistencies in service.

Now, I understand that it may be difficult to completely train a summer replacement employee as you would a permanent one. However, it is your responsibility to make sure they understand the basics of your business and your commitment to your customers.

If you don’t have one already, create a job aid with as much information as you can squeeze into it. It doesn’t have to be fancy, just chocked-full of information. Phone numbers, responsibilities, who does what, where things are, and the like. Try to keep it to one page, so your employees don’t have to look through a book to get the information.

The next thing to do is to create a “crisis plan” that everyone can articulate. You may notice that I didn’t say, “a plan that everyone knows about.” You need to ensure that everyone knows what their role is and exactly what part they will play. I know one business that actually updates the plan on a daily basis with names and extension numbers. How will questions be answered? Who will cover the phones? Who will assist customers? Who will be your “Chief Problem Solver” when you’re not around? This information needs to cover all times that you are open to the public, not just 10AM – 3PM.

Finally, manage your customer’s expectations. If you’re taking longer to assist them or fulfill requests, admit it. Apologize for any delays – don’t make excuses. If you’re in a retail environment, acknowledge your customers as soon as possible. Don’t leave them wondering if you want their business, or they may wander to another business.

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit ©2008 Customer Loyalty Builders, Inc.

“Yo, wassup?” Not necessarily the greeting you would expect from a syndicated columnist. You, the reader, after all, are my ultimate customer. Following the general rule that you must greet every customer, I’ve done my job.

My mother told me, “You never have a second chance to make a first impression.” And, as simple as this statement is, it’s still true. Each time a customer sees one of your employees, based on how the customer is (or isn’t) acknowledged, is making a first impression.

Don’t hesitate to articulate your expectations to your employees. Write them down and review them regularly. If you didn’t effectively communicate the other expectations you have for your team, how many of them would be met? Customer service is no different. Without clear guidelines, individuals will fill in the gaps with what their own life experience dictates. This may be a great deal different than what you want your customers to experience.

During your employee meetings spend a few moments highlighting your “greeting superstars.” Give the specifics of what makes their greeting special. Talk about what they say, how they say it, and what their body language is telling their customers. Make sure everyone is engaged in the discussion. Those employees who are a little shy may need to be coached. Acknowledge that approaching customers can be scary for some people.

Reward employees who greet your customers by name. Make it fun. We have one client who was having trouble getting their employees to remember their customers’ names. The client established a recognition program where employees’ names were entered into a monthly drawing every time they used a customer’s name when they greeted them. One winner was chosen to receive a gift certificate to a local movie theatre. Who tracked performance and awarded the drawing entry slips? The employees did it themselves. They listened to their co-workers and awarded an entry slip whenever they heard another employee use a customer’s name. It was simple. It was downright cheap, costing less than $50 per month. Sales increased 25% — not a bad return on investment.

If you have a particularly outgoing employee, and you’re in a high transaction environment, consider having them be the official greeter for the day. Don’t put your greeter behind a podium or counter. It will only serve as a wall between you and your customers. If you have an employee who’s a little shy, pair them with their outgoing colleague to give them more experience and increase their comfort level greeting customers.

People like to do business with people they know and where they feel welcome. Make sure your making the best impression with your customers every time.

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit ©2008 Customer Loyalty Builders, Inc.

The other day I walked into a small local business and waited in line for over five minutes and no one even acknowledged my existence. No one said hello, no one dipped their head, and no one even flinched at my existence. When I got to the counter, the clerk looked at me and without saying a word, tilted his head slightly downward, and raised his eyebrows above the rim of his glasses and just stared…waiting for me to make the first move.

I decided that this time, I was going to wait however long it took, to make them speak first since I was their customer. An eternity went by before I saw the first sign of life, but wait, it was only a repositioning of the head, now tilting his head to the other side, and his lips became tightly closed. No words were spoken, so I told the clerk that I would come back some other lifetime when they wanted to assist me as a customer. I watched the next customer approach…. the customer spoke first.

GREET YOUR CUSTOMERS!
There’s no excuse for not greeting your customers, and, if you are sitting down, stand up when you do it. Put a smile on your face and show your customers that you want to help them.

LET THEM HEAR THE SMILE IN YOUR VOICE!
When you and your staff answer the phone, put a smile on your face before you say a word! It’s hard to be rude or come across offensively when you do this.

TREAT COMPLAINTS AND QUESTIONS AS GOLDEN OPPORTUNITIES!
If your customers are complaining about something, they are giving you time out of their lives. It’s up to you to respond to their satisfaction, or lack of it, by giving them your full and undivided attention. Acknowledge and understand their concern, make some sort of commitment to them, and thank them for telling you about it.

THANK YOUR CUSTOMERS!
If your customers bought something from you, showed an interest, or just looked inside your business, they have given you time out of their precious lives. You owe them a “thank you for coming in!” By giving them a sincere thank you, even if they came in to return something, they will remember the courtesy and will reward you with their return business when the time is right. Don’t miss the opportunity.

TELL YOUR CUSTOMERS HOW TO COMPLAIN!
Not the right way to complain, but tell them who, on duty, has the authority to solve problems now. Also, make your name (as the business owner or manager) visible so your customers and employees can see it, and include your phone number. I can’t tell you how many times I decided not to pursue a complaint that would probably have been appreciated by the business owner, but because the clerk in the store wouldn’t give me their name, and there was no easy way to obtain it, I decided to take my business elsewhere without giving the owner a chance to fix the problem.

REWARD YOUR EMPLOYEES!
If your employees are doing a good job and you witness it, make it worth their while and promote it to the other employees and the customers. Many people think that recognition is “old hat,” and unnecessary. The truth is, however, that recognition accomplishes several less apparent things. First of all, it encourages the employee to keep on doing the right things. Second, it tells the other employees what it is that they need to do. And finally, when you promote it to your customers, it lets them know that service is an important element in your business.

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit www.ServiceQuality.US ©2008 Customer Loyalty Builders, Inc.

You can blame the fast-food giants – they started it. “It” is the, “Would you like fries with that?” era. They figured it out first, so they get the credit. They made a specific suggestion and got super results.

Times have changed, but the facts haven’t. What spurred the initial push was a survey that pointed out that 80% of single item purchasers said “yes” when asked if they would like another specific item. Businesses across the world caught on, but many have gotten lazy as time moves forward.

How many of your customers buy one or two items? I bet it’s more than you think. You can’t just ask, “Did you find everything today?” or “Is there anything else I can get you?” These aren’t enough. You have to train employees to identify the next step. Make specific, relevant, suggestions based on your customer’s needs. In order to do this, managers need to make the investment to train employees who face off with customers about the choices available.

Most customers don’t know what their choices are. It’s not their job to know – it’s yours, as the business, to be the expert. An example of this is a hardware store. You can actually go in and buy a toilet. Now, if you’ve ever replaced a toilet you know there’s at least another five or six parts that you must have to complete the job. Probably another 10 to do it right. The money’s not made off the toilet, it’s the additional stuff that has the higher margin. If I get out of the store with just a toilet, they have just lost a lot of potential revenue. I was in the store, I needed to spend the money. I didn’t know that, so I left. Another store got the chance to sell me the high margin stuff. (If you’re the manager/owner of a hardware store in the East Bay, don’t snicker – there’s a good chance that I bought my toilet from you…)

If you have a large selection of items or departments, appoint a subject expert or two for each. Rotate them between departments every month or two. Pretty soon, everyone will have gained the knowledge they need to make confident recommendations. Spend five minutes every day brainstorming with your employees about what items a customer may also need if they buy a certain product. Have a contest to see who can successfully identify the most “add-ons” for a particular item. Don’t just do this for a day or two – this needs to be a change in your culture, not just a program or promotion.

This isn’t rocket science. You will be amazed at how your sales revenue and ultimately profits grow, and keep growing for years to come.

Jeff Kasper is the president & chief innovation officer of ServiceQuality.US, a customer loyalty, measurement, training and consulting firm, based in Concord, CA. Questions and comments can be sent to jk@servicequality.us or visit www.ServiceQuality.US ©2008 Customer Loyalty Builders, Inc.