I was adjusting the FAQ portion of the blog and I came across one of the simple reasons we are doing this work. I thought I would post it, since it usually brings about considerable thought and good discussion.

The question is: Why is it that most business leadership is usually inconsistent and less than impressive in its commitment to customer satisfaction programs?

I won’t beat around the bush to give you my opinion and hope you will give us yours.

I believe reason for the inconsistency in customer centricity comes from the fact that most business leadership find customer centric programs to be short term expenses for unquantifiable, long-term results.

If we are able to show them that the short-term expense provides quantifiable short term results, I believe they will commit to changing their business and in turn changing the world.

The XCS methodology does just that.

Last weekend I accompanied a friend to buy a car. She was looking for a convertible and was willing to consider different brands. We went to a BMW dealer first. She went for a couple of test drives and was impressed with the cars as well as the experience at the dealer. The salesperson was not pushy, he was attentive and knowledgeable. They spoke about value and pride of ownership. When we were done, the salesman asked if we wanted to see some numbers or if we wanted to have him send us some financials to review at our leisure.

Our second visit was to a Jeep and Chrysler dealership. The salesman was very nice, family guy with 5 kids, etc. We went on a couple of test rides and liked two of the cars. When we asked the pricing for each of the cars his response was . . “Well, which one do you like better?”. It depends on the price, we mentioned. He then said, “Well I can work up a better number if you tell me which car you prefer”. At that point, it became clearly apparent why I’ve given up on American cars.

We mentioned again, that we lilked both and wanted the best price on each. He asked us to sit down, then asked us to fill out a credit application before he went to the manager to ask for a price.

Why is it so hard to find out the best price on a car?

We were ready to walk out at that point, but felt bad for the salesperson who had spent quite a bit of time with us. The salesperson stayed in front of the manager for a total of 14 minutes, while we waited on the other side of the dealership. Finally, I got tired, went over to the manager’s desk and asked if there was anything wrong. The manager, who was wearing sunglasses indoors, pitched his head down and looked over the top of the glasses and said, “Well… I’m having trouble with the fact that you’re not committed to a car”. Sigh . . . . we left.

Why can’t the American Car dealerships see the obvious:

1. Technology should be used to improve the product and the customer experience, not just to cut costs.
2. Informational access has changed everything – I know your costs, I know your methods, I just want open and respectful treatment.
3. Don’t manipulate the sales situation. Manipulate your offerings and my experience, I’ll do the rest.

Wake, up. You are not in the car business. You’re in the customer satisfaction business.

I supposed it would be best to have an American automobile industry. But I suspect its too much to ask.

Today I was discussing the underlying tenets of customer satisfaction with a couple of colleagues. We came out of the discussion with . . “the difference in XCS comes from treating customers like people as opposed to objectifying them as “customers, accounts, etc”. It sounds overly simplistic, but it’s true.

The discussion lead to a methodology by the Arbinger Institute that rang a chord with me. The methodology, as explained by my colleague, provides a better ability to control our “way of being” as opposed to controlling our actions.

It occurred to me that often our actions fall short of customer’s expectations because we are are simply acting (following the expected customer satisfaction practices) possibly lacking inner honesty. We are missing the proper “way of being”.

There are 2 ways to see people, he explains:

1. as Objects and
2. as Human beings.

You might think that one naturally treats people as human beings, but many times we don’t.

As we were in the discussion, our waiter came to the table to fill up our water glasses. I noticed that one of us acknowledged the waiter with eye contact and thanked him for the service. Then I thought – it wouldn’t be uncommon for me to simply move the glass as to make it accessible to the waiter, and accept the service without acknowledgement. This is an example of objectifying the waiter.

When we objectify people, he further explains, we can see them as:

• Vehicles (sources of wanted activity)
• Barriers (those people that stand in the way of what we want to happen),
• or Indifferently

The very nature of objectifying people makes us the center of focus – HOW DO THEY AFFECT ME?

This makes XCS impossible. I cannot think of the customer’s point of view, assess their expectations and exceed that expectation with a “service mindset” if I am focusing on how he or she affects me.

XCS is about treating people like human beings. Seeing their humanity before we judge how they may or may not affect us.

This is not so easy, but if we can do it, we will gain the respect and loyalty of our customers.

Customers are people too.

People want to do business with People, not companies.

Colleen’s last post about mindset shifting brought to mind the importance of Paradigms.

The primary reason for cultural resistance to change is the momentum held in the current paradigms.

A paradigm is a set of rules or expected actions used to solve problems. After time, the paradigm becomes the norm and thus drives the way we act in certain circumstances, many times without thinking or justifying our actions. We simply trust the paradigm. (For more info on paradigms check out Joel Barker, he is my paradigm guru- quite good.

For example:

Problem: traffic accidents at intersections

Solution and new paradigm: traffic lights – red=stop, green=go.

At first the current paradigm (slow down, proceed with caution dodging crossing traffic) will resist. After a while the new paradigm will begin to take hold as it proves effective in solving problems. Over time the paradigm is refined (add a yellow light, add arrows, add time delays) with more problems being solved as the paradigm matures.

The adoption of new paradigms can be painful but can also be very beneficial. There are risks – (to be discussed in future posts, if there is interest).

The current Customer Satisfaction paradigm is: Customer satisfaction is good as long as we can afford it (CS is a short term expense, for an unquantifiable, future benefit) This paradigm never really worked, but lacking the tools and processes to measure the benefits, what seemed logical prevailed.

XCS is a new paradigm that solves many of the uncertainties of the old and shows us the mechanism to attain loyalty and measure the progress and financial benefits to the organization. It is simple and easy to follow.

As Paradigms go, its not the most difficult to introduce into a culture.

Try it.

When you go to an authentic Mexican Restaurant, are you surprised if the front door has a Japanese design on it? What if if the bathroom had a Jamaican landscape on the wall? What if the menu offered sour kraut?

Being aligned with your customer expectations is a basic business requirement, but the real secret is being consistent.

XCS is a mindset. As a mindset, it becomes possible to show XCS in all we do.

When we are inconsistent in our intention across touch-points, we create doubt.

Doubt can never create positive emotion.

Find all your touch-points and sprinkle some XCS on them. Then find all the paths that lead to those touch-points and sprinkle some more.

Consistency is the key.

Try it

A couple of weeks ago, I had the distinct pleasure of speaking at the quarterly gathering of Financial Women International - in Orange County Ca. This is a great organization that facilitates resources to financial professionals (not exclusively women), trying to make a difference and improve business practices.

During the talk we touched on my experience with banking and the potential need to reconsider the banking industry’s heavy reliance on fees and penalties as a source of revenue. My position, as you can guess, is the practice is inherently destructive to XCS and thereby to business value.

I left Bank of America because of poor service. And now it feels like I will have to change all my direct deposits and automatic payments again . . . .sigh!

A few minutes ago I logged on to my online banking account and found two charges on my overdraft protection account that didn’t make sense, $10 and $12.56. I had little to do while waiting for my plane at the gate so I decided to call.

“Hi, this is John” – a voice answered.

Hello? is this Wells Fargo? Yes, John replied. (I will save commentary on his greeting for another time).

I asked John about the charges, and after looking for my record, he was easily able to assess the situation. “Every time your overdraft protection account is accessed, there is a fee assessed on your account”. WHAT?

Of course, Sir you are making use of a service for which there is a fee.

John, you charge me interest for that service, isn’t that fee enough?

You also have ALL my money in your bank, which I assume is worth something.

Finally, the purpose of the overdraft protection is to “PROTECT ME FROM OVERDRAFTS !”, not to find another reason why I should get a fee. Plus, “I have this super duper platimun, high octane, VIP account with glittery cards that is supposed to separate me from the masses that actually have to deal with fees like these !”

Guess what he said? Mr. Vidal, your agreement which I can make available to you, clearly outlines these fees.

Guess what I said? John, close my accounts.

And now I have to find another bank.

This is getting old, and frankly, I don’t have the time for it.

OK, I talk about it a lot, but I actually thought I had let go of this angry side. Even though I say it’s an epedemic, institutional issue, I thought moving from my old bank to a new one would solve my problem. But I haven’t moved on on, and it isn’t solved. Why? Because it is an epidemic institutional issue.

I’m angry. Not because of the $22, but because we are losing our sense of decency for each other. We continue to sell ourselves for money, protected by the shield of corporate policy. Thinking the one who dies with the most wins.

XCS is about us, not about money.