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HANDOUT #1: Five Key Decisions of Beloved and Prosperous Companies
Beloved companies share a set of five ac4ve and purposeful decisions which inform and mo4vate their conduct. Decide to Believe There is no more powerful testament of trust than belief. Beloved companies decide to believe. They believe their people. They believe their customers. Decide with Clarity of Purpose Beloved companies are clear about their purpose in suppor4ng customers’ lives. In decision making, they align to this purpose, to this promise. It elevates people in working toward a common goal. Decide to Be Real Beloved companies shed their fancy packaging. They strike a chord with customers. They decide to create a safe place where the personality and crea4vity of their people shine through. Decide to Be There Beloved companies realize that it’s an everyday charge up the hill to be there for customers, on their terms. These companies are in the scrimmage every day to earn the right for their customers’ con4nued business. Decide to Say Sorry How a company reacts to adversity reflects the humanity of an organiza4on, and shows its true colors more than almost any situa4on it might encounter. Repairing the emo4onal connec4on well is a hallmark of companies we love. It makes us love them even more.
HAND OUTS 1
HANDOUT #2:
DECIDE TO BELIEVE Decision Diagnostic
1. We make employee selecDon a priority. We extensively screen and select people who share our organiza7onal values.
Never | Sometimes | Always
1 2 3 4 5
2. In decision making, we yield to employees’ natural insDncts to do the right thing. We believe employees will live by the values, spirit, and passion for which they were chosen.
4. We reward and recognize employees for innovaDon, ingenuity and thinking on their feet. We reinforce our belief in employees.
5. We elevate the dignity of employees by removing unnecessary rules and policies. We release control so employees can innovate and solve problems.
3. We invest heavily in training and development to prepare and enable peak performance. We trust prepared employees.
HAND OUTS 2
Never | Sometimes | Always
1 2 3 4 5
Never | Sometimes | Always
1 2 3 4 5
Never | Sometimes | Always
1 2 3 4 5
Never | Sometimes | Always
1 2 3 4 5
HANDOUT #2 (Cont’d):
DECIDE TO BELIEVE Decision Diagnostic
Never | Sometimes | Always
1 2 3 4 5
HAND OUTS 3
Never | Sometimes | Always
1 2 3 4 5
Never | Sometimes | Always
1 2 3 4 5
Never | Sometimes | Always
1 2 3 4 5
Never | Sometimes | Always
1 2 3 4 5
6. In customer relaDonships we honor the dignity of customers. We strive to remove policies and procedures that protect “us” from “them.”
7. We acDvely decide to be transparent with customers. We believe that trust is reciprocated. We suspend the fear of sharing informa7on.
8. We believe customers are an asset, not a cost center. Our decisions and choices are guided by inves7ng in these rela7onships.
9. We regularly use our products and services and interact with customers. We eliminate detachment and cynicism by personally connec7ng to their experience.
10. We believe in the truth of our customers’ words. Customer feedback fuels our business. We trust current customers to guide future customers.
HANDOUT #3:
Valuing Customers as an Asset of Your Business
Beloved companies consider their customers to be assets to be cared for and
nurtured. They are always aware of how that asset is shrinking or growing, and are
astute about what causes both of those condi4ons.
When this point of view guides decision making, companies can dismiss decisions
that might bring in some quick cash, but will ul4mately damage a long term
rela4onship. Instead knowing the value of a long term customer, guides decisions
on how a company and its people welcome new customers, and develop exis4ng
customer rela4onships.
HAND OUTS 4
BELIEF
+ Investment
= GROWTH
HANDOUT #3 (continued):
Valuing Customers as an Asset of Your Business
Cultural and Operational Actions:
“Believe” Customers are an Asset of Your Business:
HAND OUTS 5
q Reduce requirements for “cash deposits” or other collateral which appears to customers that
we’re protec4ng ourselves from them.
q Find ways to give customers confidence and a las4ng impression that they have found a place
where they are trusted, and will want to do business.
q Believe that the majority of customers do what’s right.
q View our business as a service that is based on a reciprocal trus4ng rela4onship, not a
transac4onal product sale company.
q Free customers of extra rules, policies, and layers of bureaucracy.
q Replace fear and suspicion with partnership and trust.
Banking/Financial Services:
First, unchain the pens from the counter. (simple but powerful!)
Health Services:
Allow a recovering pa4ent to take home the wheelchair for a few days and return it.
Dining/Restaurant:
If a regular customer forgets his /her wallet, invite them to come back the next day to pay.
Hotel / Hospitality:
Resist the “Do not take this robe” sign.
Idea-‐Starters:
HANDOUT #4a:
If we value customers as assets, what would we do differently, when…
HAND OUTS 6
We first come in contact with them?
When they become a customer or supplier?
They place their first order?
Register a complaint or concern?
They want to understand our pricing?
They make a special request?
They want samples or a product trial?
Other?
1 How many units could they buy from us in their life 4me? (e.g. 5 cars, 10 cell phones, 4 A/C units)
a) ________
2 Mul4ply (a) 4mes the price of a unit (b) X
b) $ _______ unit price
Subtotal
c) $ _______
3 What addi4onal business will the average customer spend with us on an annual basis? (Service, maintenance, consumables)
d) $ _______
4 How many years can we expect to do business with the average customer?
X
e) ________ # of years
5 Mul4ply (d) 4mes (e) f) $ _______
6 Add (c) and (f) Subtotal
g) $ _______
7 Add an infla4on factor by mul4plying the sub total (g) by 2.879 (Average rate of infla7on for the last 30 years)
X 2.879
h) $ _______
Total a[er infla4on: Bring down (h). Subtotal
i) $ _______
8 Do our loyal customers introduce us to new customers? If so about how many? (approximate)
j) ________ # of referrals
9 Mul4ply (g) x (j) Total a[er the customer referral effect:
Total
$ _________
OPTIONAL HANDOUT #4b: Lifetime Value (LTV) of a Customer
Calcula4ng our customer life4me value will help us more clearly see customers are an asset, not a cost. There are many different ways to do this. Below is one of the more straigh_orward, popular formulas. Consider your average customer in the calculaDons:
HAND OUTS 7
OPTIONAL HANDOUT #4b: Lifetime Value (LTV) of a Customer
Mobile Phone Customer Example:
HAND OUTS 8
1 How many units could they buy in their life 4me? (e.g. 5 cars, 10 cell phones, 4 A/C units)
a) 10
2 Mul4ply (a) 4mes the price of a unit (b) X
b) $ 200 unit price
Subtotal
c) $ 2,000
3 What addi4onal business will the average customer spend on an annual basis? (Service, maintenance, consumables)
d) $ 1,200
4 How many years can you expect to do business with the average customer?
X
e) 30 # of years
5 Mul4ply ($1,200 x 30) f) $ 38,000
6 Add ($2,000 + $38,000) Subtotal
g) $ 40,000
7 Add an infla4on factor by mul4plying the sub total ($40,000) by 2.879 (Average rate of infla7on for the last 30 years)
X 2.879
h) $ 115,600
Total a[er infla4on: Bring down ($115,600). Subtotal
i) $ 115,600
8 Do loyal customers introduce new customers? If so about how many? (approximate)
j) 2 # of referrals
9 Mul4ply (115,600 x 2) Total a[er the customer referral effect:
Total
$ 331,200
LTV average customer
HANDOUT #5:
Trust Employees To Do the Right Thing
q Don’t s4fle customer experiences by spelling out dos and don’ts regarding how far
employees can go with customers.
q Nurture employees to make their own decisions. Invest in the development of this
ability.
q Make our number one rule be that no customer goes away unhappy.
q Don’t manage to the minority; trust the majority of employees to do the right thing.
q Recognize that a trained and trusted employee will do the right thing.
q Take advantage of all training opportuni4es to be sure you understand the products and
services you are trusted to deliver.
q Use our skills, talents, and confidence to “think on our “feet” to serve others.
q Trust our knowledge of the customer wants and needs to “rise above” standard
procedure.
q Bring our best version of ourselves work.
Cultural and Operational Actions:
“Believe” Employees Do The Right Thing:
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For Leaders: q Provide extensive training and experience to garner an understanding of the
product and service experiences they are trusted to deliver.
q Put your trust and belief in the frontline as it will translate to simple acts of
kindness toward customers.
q Trust the decision making of the people on the floor working with customers.
q Eliminate behind-‐the-‐scenes rules and the required permission from
managers to make service recovery decisions.
q Don’t second guess employees and diminish their ability to think on feet and
risk their sharing of ideas.
q Don’t pen in employees with rules and regula4ons that define their every
move.
q Find out what encourages an employee to rise above standard opera4ng
procedure.
q Believe in the people closest to the customers – let this be our guide in how
you hire, train, and develop employees.
q Release control factors to inspire imagina4on.
HANDOUT #5 (continued):
Trust Employees To Do the Right Thing
Cultural and Operational Actions:
“Believe” Employees Do The Right Thing:
HAND OUTS 10
HANDOUT #6a “Prepared Employees” Planning Tool for Leaders
Task Trust Looks Like… Training Tools
Interact with customers -‐Company Orienta4on
-‐Customer Service
-‐Job aids
-‐Call monitoring Represent our Company
-‐Our core values
-‐Our higher purpose for customers
Describe our products and services
-‐Product Knowledge -‐Samples
-‐Access to trials Answer customer ques4ons
-‐Company Orienta4on
-‐Job Orienta4on
-‐Facts and figures
-‐Employee Handbook Guide customer conversa4ons in sales/order taking
-‐Sales Skills
-‐Overcoming Objec4ons -‐Selling Against the Compe44on
-‐Scripts & Guidelines
Follow opera4ng prac4ces and procedures
-‐OTJ Technical Skills -‐Training Manual
Handle upset customers
-‐Service Recovery -‐Service Recovery Guidelines
-‐Who to Call Contact Sheet
-‐Escala4on Guidelines Handle point-‐of-‐sale transac4ons
-‐Cash Handling -‐Training Manual
HAND OUTS 11
q Use this tool to evaluate your ability to nurture employees and believe in them.
q For the tasks relevant to your business, in Column #2 describe what ac4ons would signify employee trust.
q Highlight any suggested training that you currently don’t have but believe you should implement. Add to the list of
training ideas already filled in Column #3. Discuss gaps and opportuni4es.
q Highlight any of the suggested tools that you currently don’t have but believe you should implement. Add to the list
of tools already started for you in Column #4. Discuss gaps and opportuni4es.
HANDOUT #6b:
“Prepared Employees” Planning Tool for Frontline
Use the tool on the following page to prepare and free employees to deliver what’s best for the customer.
1. The tasks in the first column represent typical responsibili4es of a frontline employee.
Draw a line through the rows that don’t apply in your situa7on.
2. Describe briefly, in Column #2, what you believe trust looks like in terms of “doing the
right thing.”
3. Jot down the tools and/or training you are aware of that is available to you to help you
deliver on the tasks described in Column #1.
4. Jot down ideas and sugges4ons for what you believe you need from your leaders to help
you feel more trusted and/or beper prepared to deliver on that task.
HAND OUTS 14
HANDOUT #6b (conDnued):
“Prepared Employees” Planning Tool for Frontline
Task Trust Looks Like…
Training and Tools Available
to Me
What Else I Need
Interact with customers
Represent the company
Describe our products and services
Answer customer questions
Guide customer conversations in sales order taking
HAND OUTS 15
HANDOUT #6b (conDnued):
“Prepared Employees” Planning Tool for Frontline
Task Trust Looks Like… Training and Tools Available to Me
What Else I Need
Follow opera4ng prac4ces and procedures
Handle upset customers
Handle point-‐of-‐sale transac4ons
OTHER:
OTHER:
HAND OUTS 16
HANDOUT #7:
Commitment and Action Plan
Considering your “ah-‐Ha’s” during our session and your reflec4ons throughout, then iden4fy goals that will enable you to DECIDE TO BELIEVE. Write your goals in the space below.
DECIDE TO BELIEVE Customer Goals: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
DECIDE TO BELIEVE Employee Goals: ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
HAND OUTS 17
Now translate those goals into actions to focus on for the next four weeks.
Date AcDon Steps
Today
Week 1
Week 2
Week 3
Week 4
JOB AID #1:
Challenge Card #1
JOB AIDS 1
JOB AID #2:
Ten Words and Phrases to Eliminate
How and when you talk with your customers reveals your disposi4on towards them and ul4mately shows up in your bopom line results. When you’re open and in listening mode, your customers will respond accordingly. If your focus is to provide value to them at every touch point, then make sure you use posi4ve phrasing and the human touch whenever possible. If at all possible, eliminate the following words and phrases from your customer communica4on – even in the fine print – to convey your trust in your customers.
• “not valid a[er…” • “not responsible” • “not covered” • “expire on” • “reason for return” • “return before” • “not privy to customer review” • “out of stock” • “company has ul4mate authority to… • “customer must”
JOB AIDS 2
JOB AID #3:
Challenge Card #2
JOB AIDS 3
