HOME PAGE

WHO WE ARE
  Founder
  Research
  Clients
  Contact

CUSTOMER INFORMATION
  What People Say
  Industry Press
  Assessments
  Data Evaluator
  ROI Model
  7 Competencies
  Information Masters

CUSTOMER INTERACTION
  What People Say
  Industry Press
  Buying Sciences
  Presentations
  Workshops
  Assessments
  Guidance
  Customers Are People

  Multimedia
  Press Kit
  Publisher

             Copyright_©_2008_CIBC

 

Service Management Magazine

 

COVER STORY

The human touch

THE HUMAN TOUCH – A VITAL COMPONENT OF SERVICE

Have you ever had someone call to service your appliances at home and thought how off-hand or unhelpful they were, as if they were doing you a favour by showing up in the first place? Only afterwards does it occur to you that you were the one paying them for that service, although it felt like it was the other way round! Recent research indicates that, if a field service provider delivers an acceptable level of service relative to their competitors, only 30% of what the customer will remember is the mechanical execution of that field service and 70% will be how 'humanly' the service provider's staff and technicians interact with their company. Yet, surprisingly, less than 10% of company resources are invested in how 'humanly' they interact with their customers. According to leading author John McKean, when customers are faced with a choice between companies with similar service capabilities and rates, they choose the provider whose interactions are most human – ie, treats them best. In our cover story in this issue, McKean investigates the impact of the human touch and the consequences businesses face when it isn't present. If anyone is not aware of exactly how their service engineers interact with the very people who keep their business in existence, this could well prove to be worrying in the extreme. BRIAN WALL EDITOR

 

THE HUMAN TOUCH

 

Research shows that it is the human touch that customers most remember when the field service technician calls, yet this aspect is often the most neglected by service organisations, says leading author John McKean

Recent research indicates that, if a field service provider delivers an acceptable level of service relative to their competitors, only 30% of what the customer will remember is the mechanical execution of that field service and 70% will be how 'human' the service provider's staff and technicians interact with their company. Yet, surprisingly, less than 10% of company resources are invested in how 'humanly' they interact with their customers.

In today's competitive service market, certain harsh realities exist:

• effective field service execution is a minimum requirement just to survive

• most competing field service providers have relatively similar abilities to deliver field services

• most competing field service providers have relatively similar rate structures.

When customers are faced with a choice between companies with similar service capabilities and rates, they choose the provider whose interactions are most human, ie treats them best. Therefore, the biggest opportunity for competitive differentiation for field service providers is a company's 'human touch'.

A company's human touch can be thought of as an age-old art that has traditionally been practised arbitrarily and inconsistently at an individual level. The challenge for field service providers is to implement this art as a consistent and unanimous science across your entire organisation. The first step of implementing this science is to begin thinking of your field technicians and the staff that support them as people. The second step is to think of your customers as people. They are all people, first and foremost, just as we are all people.

The truth is that your customers simply want the best service at the best price for their company, and also want themselves and their co-workers to be treated as human beings in every interaction.

To begin evolving a field service provider's human touch, a company must address the following critical human touch factors:

• treat field technicians and support staff like human beings

• address the three primary human needs of customers: acknowledge them, show respect and build trust

• communicate humanly with customers

• implement the human touch consistently across all business functions

• integrate humanness as a defined process

• design supporting technology to humanise (not dehumanise).

If 70% of what customers remember is how 'humanly' they are treated, then the next important question is what determines how humanly the staff treat the customer? Research shows a 75% correlation between how management treat staff and how staff treat customers.

The study covered six business units over two years, using quarterly summary measurements. Roughly 50,000 employees were surveyed over six business units, serving 50 large corporate customers. Not only was a strong correlation discovered between employee fulfilment and customer fulfilment, but this also extended to fluctuations in share price.

These three elements represent the classic behavioural business cycle, ie happy employees tend to create happy customers, which positively affects share price and profitability.

One particular telecommunications firm actively tracked employee and customer satisfaction for two to three years, using quarterly summary measurements. The correlation between customer satisfaction and employee satisfaction was .75 during eight measurement periods. The correlation was stronger than coincidental, while the conclusions were intuitive and statistical.

Respect customers while building trust

Transforming the art of the 'human touch' begins with understanding the basic needs of people. The most important question to answer is what behaviours matter most to people? Our research has found that people have three primary human needs and their corresponding emotional expectations: acknowledgement, respect and trust

Acknowledging customers – understanding how best to fulfill the human need for acknowledgment. Activities should focus on acknowledging the customer's existence, importance, characteristics and feelings. It is also important to focus on eliminating behaviours (intentional or unintentional) that create feelings of being ignored and anonymous.

Treating customers with respect – understanding how best to fulfill the human need for respect should centre on their dignity as human beings. Sending messages of respect starts with basic common courtesies and extends into such areas as respect for the customer's time, privacy, personal space, home and diversity. Equally as important is focusing on eliminating behaviours that convey disrespect.

Building trust with customers – actions to build trust in customers should be focused on honesty, ethics, integrity, openness, educating customers and, most importantly, operational excellence. It is also important to focus on eliminating behaviour which creates distrust.

Initial trust is either confirmed and strengthened, or is disproved and decreases, based on the customer's service experience.

Communicate humanly with customers

Positive interactions with customers cannot be accomplished without understanding, and then developing, the skills to create the most effective human communication between employee and customer. This involves becoming a better listener, as well as a better communicator to customers, both verbally and non-verbally. Here are some basics:

• listen first

• listen to fulfil the desire just to be heard

• humanness is best face-to-face

• listening without judgment

• let them teach you how to best communicate with them

• prepare staff for effective responses after listening

• listen to customer issues and then communicate them for systemic resolution

• be open and honest about problems as soon as they occur

• determine whether it needs to be 'fixed' or just further 'education' is called for

• show them accessibility – communicate approachability

• reinforce the impact and importance of simple common courtesies

• communicate your value that is: relative to competitors, easily differentiated

• use everyday words, not business or technical jargon, whenever possible;

• don't assume communication has been effective

• train staff for effective non-verbal communication skills

• 55% of communications is body language, 38% vocal intonations and inflections, and 7-8% the actual words

• make employees physically identifiable

• communicate only valued information and in the manner they want. SM

In the next issue, John McKean discusses how to implement the human touch right across the business.