Archives for June 2017

Bad Customers Are Bad for Your Business

June 6, 2017 By Nagesh Belludi Leave a Comment

Herb Kelleher: “Dear Mrs. Crabapple, We will miss you.”

Southwest Airlines is a paragon of superlative customer service. Southwest’s happy and engaged employees routinely go out of their way to delight their customers. In spite of such remarkable devotion to customer satisfaction, there have been times when Southwest had to decide that some customers were just wrong for their business.

In the very entertaining and enlightening Nuts!: Southwest Airlines’ Crazy Recipe for Business and Personal Success, authors Kevin and Jackie Freiberg narrate how Southwest had to let go of a customer who couldn’t be less satisfied with her travel experience. This customer relations-story is best appreciated in light of the fun-loving and gregarious nature of Southwest’s legendary founder and ex-Chairman/CEO Herb Kelleher.

A woman who frequently flew on Southwest, was constantly disappointed with every aspect of the company’s operation. In fact, she became known as the “Pen Pal” because after every flight she wrote in with a complaint.

She didn’t like the fact that the company didn’t assign seats; she didn’t like the absence of a first-class section; she didn’t like not having a meal in flight; she didn’t like Southwest’s boarding procedure; she didn’t like the flight attendants’ sporty uniforms and the casual atmosphere.

Her last letter, reciting a litany of complaints, momentarily stumped Southwest’s customer relations people. They bumped it up to Herb’s desk, with a note: ‘This one’s yours.’

In sixty seconds, Kelleher wrote back and said, ‘Dear Mrs. Crabapple, We will miss you. Love, Herb.’

Bad Customers: Wrong for Your Business, Wrong for Your Employees

Customers are the lifeblood of any business. Customer satisfaction begets loyalty, and loyalty begets revenues and profits. Businesses can therefore never place too much emphasis on their customers.

However, with slogans like “the customer is always right,” many businesses fall into the trap—and the slippery slope—of trying to satisfy every customer’s every wish.

Although your business may need all its customers—even the irksome ones—the reality is that some customers can actually be bad for your business. You can’t sustainably run a business without trying to satisfy every customer—particularly those cranky, annoying, or unreasonable ones.

Be wary of customers that fall into these categories:

Customers who require high maintenance but cannot be charged more
Customers whose demand for price destroys your profitability
Customers who want a lot more (better product, better service, better schedule) but are tightfisted
Customers who require supplementary services or products (especially those that are not part of your business’s core competencies) and tailored solutions that you don’t provide and can’t profitably offer to the rest of your customer base
Customers who don’t subscribe into the future vision of your business or your industry, which they’ll need to strategically commit to as some point in the future
Customers who tend to be aggressive and hostile, and disrespectful to your employees, regardless of how well they serve the customers

Strategic Customer Management Involves Being Tough Minded with Some Customers

Considering your long-term business goals, sifting through who should and who shouldn’t be your customers is an important element of strategic leadership.

With every product or service you offer, focus on who you want your customer to be, what expectations they have of you, and what you can profitably provide to them. Once you have figured that out, customers who don’t fit well need to be managed judiciously and decisively.

Without strategic customer management, you run a risk of disrupting your ability to converge around the needs of your principal customer base.

Remember the notion of opportunity cost—every ‘no’ is a ‘yes’ to something important.

Idea for Impact: Let Go of Some of Your Troublesome Customers

Sometimes, it may be better to lose certain customers by turning them down than to dilute your ability to serve other valuable customers profitably. Stop trying to delight every customer. Take a hard look at the past, current, and future of every customer and prioritize whom you can going to serve better and more successfully.

Inspirational Quotations #687

June 4, 2017 By Nagesh Belludi Leave a Comment

The minute a person whose word means a great deal to others dare to take the open-hearted and courageous way, many others follow.
—Marian Anderson (American Singer)

Where at all ethically possible, we must give others hope. Without it, a person figuratively or even literally dies.
—Marty Nemko (American Career Coach, Author)

Never mind your happiness; do your duty.
—Will Durant (American Historian)

He that lives long suffers much.
—Common Proverb

The hardest type of criticism to take is about self-perceived strengths. Yet this is the most important to hear.
—Ben Casnocha (American Entrepreneur, Investor)

We are rich only through what we give; and poor only through what we refuse and keep.
—Sophie Swetchine (Russian Christian Mystic)

In this age of specialization men who thoroughly know one field are often incompetent to discuss another.
—Richard Feynman (American Physicist)

True kindness presupposes the faculty of imagining as one’s own the suffering and joys of others.
—Andre Gide (French Novelist)

Yes, it’s better to suspend judgment rather than embrace error. But agnostic, neutral thinkers have little to say and less to teach.
—Ben Casnocha (American Entrepreneur, Investor)

A happy life consists not in the absence, but in the mastery of hardships.
—Helen Keller (American Author)

Misery is a communicable disease.
—Martha Graham (American Choreographer)

Do not stand in a place of danger trusting in miracles.
—Arabic Proverb

The milk fed to a snake only increases its venom. Similarly, the advice given to a fool leads to aggravation and not peace.
—Hitopadesha

Gratitude and treachery are merely the two extremities of the same procession. You have seen all of it that is worth staying for when the band and the gaudy officials have gone by.
—Mark Twain (American Humorist)

The world does not need tourists who ride by in a bus clucking their tongues. The world as it is needs those who will love it enough to change it, with what they have, where they are.
—Robert Fulghum (American Unitarian Universalist Author)

A great deal more is known than has been proved.
—Richard Feynman (American Physicist)

It is a mistake to think that moving fast is the same as actually going somewhere.
—Steve Goodier

The More You Can Manage Your Emotions, the More Effective You’ll Be

June 2, 2017 By Nagesh Belludi Leave a Comment

Understanding the deep-rooted basis of our negative emotions and their destructive consequences can help us navigate the turmoil that sorrow, love, anger, greed, envy, pride, and fear can invoke in our lives.

The pioneering American psychologist William James argued in his famous 1884 essay “What is an Emotion?” that emotions and their effects on our attitudes and our behaviors is bidirectional. That is to say, “bodily disturbances” are manifestations of our emotions and those reverberations are really the fount of the emotions themselves.

Our natural way of thinking about these standard emotions is that the mental perception of some fact excites the mental affection called the emotion, and that this latter state of mind gives rise to the bodily expression. My thesis on the contrary is that the bodily changes follow directly the PERCEPTION of the exciting fact, and that our feeling of the same changes as they occur IS the emotion. Common sense says, we lose our fortune, are sorry and weep; we meet a bear, are frightened and run; we are insulted by a rival, are angry and strike. The hypothesis here to be defended says that this order of sequence is incorrect, that the one mental state is not immediately induced by the other, that the bodily manifestations must first be interposed between, and that the more rational statement is that we feel sorry because we cry, angry because we strike, afraid because we tremble, and not that we cry, strike, or tremble, because we are sorry, angry, or fearful, as the case may be. Without the bodily states following on the perception, the latter would be purely cognitive in form, pale, colourless, destitute of emotional warmth. We might then see the bear, and judge it best to run, receive the insult and deem it right to strike, but we could not actually feel afraid or angry.

“Geological Upheavals of Thought”

I’ve been reading American philosopher Martha Nussbaum’s outstanding—albeit demanding—book Upheavals of Thought: The Intelligence of Emotions. The initial chapters contemplate the power of emotions and the manifestation of emotions in all aspects of our thought stream.

One of the central positions of Nussbaum’s book is that our sentiments and emotions spring from internal narratives—the stories we ponder within ourselves about who we are and how we feel. Emotions are acknowledgments of our indigence and lack of self-reliance.

Emotions are not just the fuel that powers the psychological mechanism of a reasoning creature, they are parts, highly complex and messy parts, of this creature’s reasoning itself.

…

Emotions … involve judgments about important things, judgments in which, appraising an external object as salient for our own well-being, we acknowledge our own neediness and incompleteness before parts of the world that we do not fully control.

…

Emotions should be understood as “geological upheavals of thought”: as judgments in which people acknowledge the great importance, for their own flourishing, of things that they do not fully control—and acknowledge thereby their neediness before the world and its events.

…

Human beings … are the only emotional beings who wish not to be emotional, who wish to withhold these acknowledgments of neediness and to design for themselves a life in which these acknowledgments have no place. This means that they frequently learn to reject their own vulnerability and to suppress awareness of the attachments that entail it. We might also say … that they are the only animals for whom neediness is a source of shame, and who take pride in themselves to the extent to which they have allegedly gotten clear of vulnerability.

Nussbaum notes that our strong emotions stem from our intolerance and from the disruption to our internal narratives about what comprises perfection:

The emotions of the adult life sometimes feel as if they flood up out of nowhere, in ways that don’t match our present view of our objects or their value. This will be especially true of the person who maintains some kind of false self-defense, and who is in consequence out of touch with the emotions of neediness and dependence, or of anger and aggression, that characterize the true self.

Idea for Impact: People who lack the capacity to withstand psychological distresses such as anger, fear, frustration, and sadness are at a marked disadvantage in life. Learn to manage your negative emotions.

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