Thursday 9 July 2009

Shoes from a Sweet Shop

Words: 736 Reading time: 2 minutes 27 seconds

Why can’t we just give the customer what he wants and needs and stop worrying about our own systems and processes?”

You may be familiar with this recent gripe I heard from a business trainer. It’s not uncommon from people who engage directly with clients when their own grand schemes seem to be going awry. And it does seem to pick up on common themes of listening and customer service.

How well does it work in practice?

At the risk of stating the blindingly obvious, just giving the customer what he wants and needs is a process in itself, if that is how the business decides to operate.

A process is “a sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee time, energy, machines, money) to convert inputs (data, material, parts, etc.) into outputs. These outputs then serve as inputs for the next stage until a known goal or end result is reached.” [businessdictionary.com]

Whereas a system consists of elements which continually influence one another (directly or indirectly) in order to achieve the common purpose the 'goal' of the system. All systems have (a) inputs, outputs, and feedback mechanisms. Systems underlie every phenomenon, and are everywhere one looks for them. [businessdictionary.com]

So, really, the call is not to abandon systems and processes, merely to operate different ones that are seen as better serving this advocate; whether such a change would better serve the business as a whole is an entirely different question.

One of the extreme models of customer service, and a very successful one, is Nordstrom. For those that don’t know, Nordstrom’s is a chain of department stores in the USA. At the end of 2000 they had 77 full-line stores and 24 clearance stores in 25 states, generated annual sales of almost $5 billion and boasted a sales-per-square-foot of $400, which is almost double the industry average.

A central plank in the service ethic that underpins Nordstrom is the single rule governing all employee actions:
“Use your good judgment in all situations. There will be no additional rules.”

That’s interesting. All it calls for is good judgment, not an unconditional abdication to whatever the customer demands. For example, in the early 1990s the residents of Santa Clarita, Los Angeles expressed a strong desire to have a Nordstrom store in their community, because of the improvement it would bring. At the time of writing, as far as I can tell, they are still waiting.

Even Nordstrom sets boundaries.

Ryanair can be seen as being at the other end of the spectrum, yet it's a highly successful business. It got that way by deciding exactly what it wanted to do and sticking to it.
Ryanair aims to be a low cost airline, so it flies to low-cost airports which are in out-the-way places. If a Ryanair flight is diverted, perhaps due to bad weather, there will be no coach laid on at the alternate destination. Ryanair is a low-cost airline. Coaches are not part of the package.

Michael O'Leary, the Irish airline's boss, now wants to abolish the luggage check-in. He proposes that people carry their suitcases to the boarding steps, where staff will stick them in the hold. This would be unacceptable at BA. At Ryanair it’s expected.

On opening up new routes Michael O'Leary has said, “I don't give a toss where people want to go. I'm in the business of creating a market for people to go where they have never heard of.”

Ryanair – we do what we do.

So, just giving the customer what he wants and needs misunderstands what customer service is about. Certainly, one must listen to customers, but one must also learn. And part of that learning may be that what this particular person wants is not what this particular business does.

Others may do what they want a lot better. In that context good service would consist of steering the person in that direction. They were never your customer in the first place, because a customer is someone who pays you for what you do.

And as a business trainer my complainant should have understood this.

Why can’t we just give the customer what he wants and needs and stop worrying about our own systems and processes?”

Let’s be charitable and put it down to frustration. The simple fact is, you can’t buy shoes from a sweet shop.

No comments: