"Our Take" - Service Brands

(Past Editions by: Date, Title, Topic)

 
About "Our Take" 
"Our Take" is a collection of daily vignettes covering a wide range of CRM topics. It's an attempt to add our own spin to the world of CRM. We will use the column to share our perspectives, opinions, epiphanies, web nuggets, or quite frankly anything that moves us. Get ready to expect the unexpected. And, don't be shy about sharing your thoughts.
 
 
7/24/06 - Standard Service Equals Standard Sales
In many organizations, it seems there is an unwritten belief that the sales function (and people) is more important than the service function. I know that is a generalization but I hear "second-class citizen" grumblings quite a bit.
 
As it relates to talking about the customer experience, one reader connected the roles of sales and service by saying, "The ultimate in customer choice is the mighty dollar. Companies that deliver standard service are going to have standard sales. Companies who want exceptional sales should look at innovation in customer experience. If the customers like it, then they will expect it eveywhere."
 
Organizations continue to struggle to differentiate their product and often find that it is the service around the product that provides lasting differentiation. Do you agree?
 
Gary Lemke, Publisher
(Share your thoughts)
 
7/25/06 - Raising Above Commodity Status
Yesterday, I talked about how standard service equates to standard sales. I also suggested that service might be the single long-term way to differentiate your product.
 
To continue that thought, I wanted to share what one bank CEO wrote in our local newspaper. He said, "Despite the hopes of many bank executives, vast numbers of consumers rarely elevate their banks beyond everyday commodity status." He had the market research to prove the point. Ouch!
 
According to the research, the number one reason people change banks is to secure free checking, not to obtain better services. This drastically changes thoughts around the value of "the brand," how giveaways affect the brand, and overall perception. How many people believe bank brands promote the image of a strategic financial resource versus a place to park your money?
 
Gary Lemke, Publisher
(Share your thoughts)
 
7/26/06 - Raising Above Commodity Status
Yesterday, I asked this question: "How many people believe bank brands promote the image of a strategic financial resource versus a place to park your money?" As you might imagine, quite a few readers jumped into the discussion on brand.
 
Creating and promoting a company brand can be a long and expensive venture. College professors talk volumes about the importance of brand, experts have written countless books, and many of us can recite what we feel are successful brands. To be sure, marketing plays a key role in getting the brand name out there. However, service is what makes the brand credible.
 
No number of Super Bowl ads will make a brand credible. No number of full page spreads in the magazines will create a positive customer experience. So why doesn't service get more "play" when corporations talk about branding? How much money is wasted on building brands that can't be sustained by customer service?
 
Gary Lemke, Publisher
(Share your thoughts)
 
8/2/06 - Branding is About Confidence
Floyd Landis won the Tour de France. Or did he? Tests conducted after his miraculous comeback on stage 17 of the tour lead us to believe his performance was the result of external factors.
 
As an avid spectator of cycling, I sure hope he didn't. Regardless of how the drama plays out, the brand has been tarnished. In fact, three brands (Floyd Landis, Tour de France, and cycling) have been tarnished. Did we see an epic performance? Was the race really a level playing field? Is professional cycling tainted?
 
It's all about confidence. To believe in the brand, we have to have confidence. So in the world of CRM, service has to evoke a sense of confidence to be a brand builder versus a brand detractor. Just the hint of bad service can tarnish the brand. Do you agree?
 
Gary Lemke, Publisher
(Share your thoughts)
 
8/3/06 - Branding is About Confidence - Continued
I see we have a few cycling fans in the audience. Yesterday, I shared thoughts about how the controversy regarding Floyd Landis' drug test results in the Tour de France have tainted the brands. With confidences shaken, the brand takes a hit.
 
One reader wrote, "Very interesting way to discuss branding. I once read from an airline source that dirty tray tables in the cabin could lead some to think poor equipment maintenance overall. It's the same thought; that is, we should pay attention to every detail to build and maintain confidence."
 
Customers often make associations we wouldn't expect. Although the maintenance of jet engines and the cleanliness of tray tables are handled by two completely different staffs, the customer sees it as one big jet. The lesson is that even though we see the difference, our customers may not.
 
Gary Lemke, Publisher
(Share your thoughts)
 
8/4/06 - Branding is About Confidence - Continued
Creating customer confidence is a blend of providing an exceptional experience on a consistent basis. The secret is the combination. An exceptional experience that happens on occasion is futile if customers can't count on it. But mistakes happen.
 
One reader wrote, "We must also recognize "to err is human". Everyone makes mistakes, including the best organizations. It's what happens after the mistakes are made that truly builds confidence in a brand. Being upfront, honest and proactive to your customers will have tremendous gains. When Tylenol had the contamination scare, they instantly pulled all bottles and went public, even though only a few packages had been tampered with. That move cost them money, but built tremendous respect, which I'm sure has paid off well."
 
So let me modify the first statement I made today: "Creating customer confidence is a blend of providing an exceptional experience on a consistent basis and when mistakes happen, you have the opportunity to create an even higher level of customer confidence." Do you agree?
 
Gary Lemke, Publisher
(Share your thoughts)
 
8/7/06 - "All Hands on Deck"
Last week, I wrote that the way a company reacts to a poor service experience can be an important element in building trust, confidence and loyalty. To illustrate the point, I shared the story about Tylenol's reaction to their tampering crisis and how their proactive steps helped regain consumer confidence and avert disaster.
 
That prompted some of you to respond saying that it doesn't have to only be a reactive, "all hands on deck" strategy. There may be those unforeseen instances that test a company's commitment to doing the right thing but how many times does service "break" in the normal course of business and, more importantly, have you institutionalized processes to handle broken service events?
 
One attribute of a well run company is established policies and guidelines to address situations when service breaks. If you are reading this, perhaps you might consider an audit of how your organization handles those situations when service breaks. Are those moments of truth helping or hurting your brand?
 
Gary Lemke, Publisher
(Share your thoughts)