2MC=E, or Too Many Customers = Exasperation!! A Presentation by Steve Simpson Keystone Management Services Welcome!

2MC=E, orToo Many Customers = Exasperation!!

A Presentation by Steve SimpsonKeystone Management Services

www.keystone-management.com

Welcome!

Copyright 2002 Keystone Management Services

Marketing from the Trenches

• The primary purposes of marketing are to keep existing and to acquire new customers

• This effort is often thwarted due to poor service provided by the organisation, and it’s happening everywhere….


Copyright 2002 Keystone Management ServicesThe Orlando Sentinel, 24 November 2000, page 1


The ACSI Declines – by Industry

Selected Industries 1994 2000 % Change

PC industry 78 74 -5.1%

Airlines 72 63 -12.5%

Telecommunications 75 72 -4.0%

Retail 75 73 -3.7%

Gas stations 80 75 -3.8%

Banks 74 70 -5.4%

Hotels 75 72 -4.0%

Hospitals 74 69 -6.8%

Motion pictures 77 68 -11.7%


The ACSI Declines – Selected Companies

Company 1994 2000 % Change

Dell Computer* 72 80 11.1%

Compaq Computer 78 71 -9.0%

Volkswagen 74 83 12.2%

Delta Airlines 77 66 -14.3%

Southwest Airlines 78 70 -10.3%

AT&T Corporation 85 75 -11.8%

Nordstrom, Inc 81 76 -9.5%

Kmart Corporation 74 67 -9.5%First Union Corporation 75 66 -13.2%

NIKE, Inc. 82 78 -4.9%


Some Facts!• Customers are less satisfied with service - most

believe it is on the decline – everywhere!• Unhappy customers tell others about their

experience




The Negative RevolutionIt Will Only Get Bigger….

• The Bad, Better and Best Bulletin Board - webBbox.com

• AngryConsumer.Com

• thecomplaintstation.com

• The Squeaky Wheel.com

• Baddealings.com

• Complaints.com

• eComplaints.com

• ‘eComplaints.com promotes itself to consumers as ‘your chance to fight back’. The site highlights the point that the errant company will be exposed to fellow consumers. After all, you don't want any one else to go through what you did. The site publishes the complaint on the web and a copy of the complaint is sent to the company.

• In addition to these and other consumer complaint sites, a number of web sites are being developed specifically to target named businesses (eg Untied.com). Staff have even submitted to this site!!

• http://www.notgoodenough.com.au/


Some Facts (continued)

Most unhappy customers do not tell the Most unhappy customers do not tell the organisation that they are unhappy – they go organisation that they are unhappy – they go elsewhereelsewhere

Most customers defect because of ……….Most customers defect because of ……….

Customers are less satisfied with service - Customers are less satisfied with service - most believe it is on the decline – most believe it is on the decline – everywhere!everywhere!

Unhappy customers tell others about their Unhappy customers tell others about their experience (there are now even web sites!)experience (there are now even web sites!)


Reasons Customers Defect

Died

Moved away

Influenced by friends

Lured away by the competition

Dissatisfaction with the product

Turned away by an attitude of indifference on the part of the company employee

1%

3%

5%

9%

14%

68%

Source: American Organization for Quality, 1999


Some Facts

Most unhappy customers do not tell the Most unhappy customers do not tell the organisation that they are unhappy – they go organisation that they are unhappy – they go elsewhereelsewhere

Most customers defect because of an attitude Most customers defect because of an attitude of indifference on behalf of the companyof indifference on behalf of the company

Customers are less satisfied with service - Customers are less satisfied with service - most believe it is on the decline – most believe it is on the decline – everywhere!everywhere!

Unhappy customers tell others about their Unhappy customers tell others about their experience (there are now even web sites!)experience (there are now even web sites!)

Culture and UGRs

A Unique Insight….


Some UGRs in One Organisation!!

• At our meetings it isn’t worth complaining because nothing will get done

• The only time anyone gets spoken to by the boss is when something is wrong

• The company talks about good customer service, but we know they don’t really mean it, so we don’t really have to worry about it

• Our funniest jokes usually involve making jokes about our work colleagues

• We go through the motions with our bosses, once they’ve gone we do what we want


UGRs in the Animal Kingdom and in Love

• Five monkeys…• UGRs apply to the courtship process! (Roger von Oech – Expect

the Unexpected, Free Press, 2001)


The Smart Talk Trap..Pfeffer and Sutton, 1999

• Around here, if you are able to sound impressive in front of those who count, then you are held in high esteem. Actions and outcomes are not important.

• Around here, you never want to expose your weaknesses, as this could be used against you in the future. One way to expose a weakness is by admitting that you don’t understand what somebody else said

• The more sophisticated we sound, the more attention we get. The more attention we get, the more rewards


The Abilene ParableJerry Harvey, 1988

• Around here, positive group dynamics are most important. Anyone who disagrees does not have the group’s best interests at heart, and is trying to ruin positive group dynamics

• Around here, if the boss wants something done, it’s best not to disagree

• Around here, action – any action – is better than nothing


What would your people say?

Around here, customers are…

• complainers. Some think we're slackers

• a necessary pain. Without them I would not have a job - would not be able to achieve my goals in life. But they are not very well informed about our business and this makes my job harder

• Very demanding; don't know what they really want; don't provide realistic timeframes; expect the world

(Simpson, Whitely and Soutar, 2000)



Around here, if you criticise your boss…• you will be frowned upon and probably not advance

too far in the business. Unfortunately feedback in the upwards direction is not common practice

• ..it is always when you’re with workmates, so the boss never gets to hear of the criticism and continues on his merry way thinking he is doing well. We know that the boss does not like to be criticised anyway




Around here, being open and honest gets you• everything• Nowhere. People take it the wrong way, see you as

negative, or too different to be of any use to the organisation

• some attention. However, in some cases it may undermine your career and sometimes be looked upon as a threat. Not everybody likes to know that certain policies & system are unworkable



Awesome Service Newsletter


Some Final Thoughts

If you do tomorrowIf you do tomorrowWhat you did yesterdayWhat you did yesterday

Your futureYour futureIs history Is history ….….

If you do tomorrowIf you do tomorrowWhat we’ve covered todayWhat we’ve covered today

Your futureYour futureIs historic!Is historic!

Documents

2MC=E, or Too Many Customers = Exasperation!! A Presentation by Steve Simpson Keystone Management Services Welcome!