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Customer Service

Thirteen Phrases Your Customers Don’t Want to Hear

August 14, 2023 By Nagesh Belludi Leave a Comment

When spoken with a particular tone, specific phrases can instantly infuriate and frustrate customers. Here are some alternatives to consider:

  • Avoid: “I don’t know.” Instead, try “That’s a good question. Let me check and find out.”
  • Avoid: “Just a second.” Instead, try “It could take me a few minutes to get that information. Could you hold while I check, or should I call you back in ten minutes?”
  • Avoid: “Wait.” Instead, try “I haven’t gotten to that yet.”
  • Avoid: “We can’t do that for you.” Instead, try “That’s a tough one. Let me see what I can do.”
  • Avoid: “You’ll have to…” Instead, try “Here’s how we can help you.”
  • Avoid: “That’s not my job.” Instead, try “I usually don’t handle that area, but I know who can help you. Let me see if he’s available.”
  • Avoid: “It’s your fault.” Instead, try “The way this process works is…
  • Avoid: “Why didn’t you do…?” Instead, try “Our process expects you to…”
  • Avoid: “How’s that my concern?” Instead, try, “I understand how upset you are.”
  • Avoid: “I know!” Instead, try “Yes, you’re right.”
  • Avoid: “As I explained earlier… Instead, try “Let’s review the steps again.”
  • Avoid: “Don’t you understand?” Instead, try, “Am I understandable thus far?”
  • Avoid: “Are you done?” Instead, try, “Will there be anything else?”

Master the art of words and deliver customer service messages with a confident, sympathetic tone. Create a personalized list of “Do Say” and “Don’t Say” phrases, drawing from your own experiences.

Reflect on the pain points and communication barriers that specifically frustrated you as a customer during customer service calls, as well as the instances where representatives provided positive interactions. Identify effective approaches and avoid pitfalls when engaging with customers.

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Filed Under: Effective Communication, Managing People Tagged With: Anger, Conflict, Conversations, Customer Service, Listening, Persuasion, Social Skills

From the Inside Out: How Empowering Your Employees Builds Customer Loyalty

August 7, 2023 By Nagesh Belludi Leave a Comment

At a time when apathy and distrust are so endemic in many organizations, some companies have nurtured employee loyalty to create customer loyalty flourish. The following case studies will substantiate the cultivation of a positive work environment that prioritizes employee recognition and support invariably results in exceptional customer service.

The Nordstrom Way: Enabling Employees to Have the Freedom and Vision to Become Self-Directing

Nordstrom’s founders created a culture that prioritized a “worshipful relationship” with its luxury department store customers and empowered employees to do everything they could to please them. The Nordstrom Handbook emphasizes outstanding customer service and encourages employees to set high personal and professional goals, expressing confidence in their abilities. The company’s Rule 1 reads: “Use good judgment in all situations. There will be no additional rules. Please feel free to ask your department manager, store manager, or division manager any question at any time.” Nordstrom’s success is a testament to empowering employees and supporting policies prioritizing exceptional customer service.

Flying the Fun Skies at Southwest Airlines: Giving Employees the Freedom to Deliver a Great Brand Experience

Southwest Airlines achieved great success early on due to its committed and motivated workforce. Founder Herb Kelleher recognized the importance of prioritizing employee satisfaction to create a culture of caring for one another and providing excellent customer service. Kelleher famously said, “The business of business is people—yesterday, today, and forever. If the employees aren’t satisfied, they won’t provide the product we need.”

To create a positive work environment, Southwest Airlines encouraged fun among its employees, setting it apart from other airlines that were considered dull and unappealing. Celebrating employees and their families is deeply ingrained in Southwest Airlines’ culture, and it is evident in the prominent display of pictures capturing these special moments throughout their office spaces. This people-centric culture helped the company attract and retain talented workers passionate about their jobs and provide top-notch customer service, which made flying with the airline a fun experience. Despite the potential cost savings, Kelleher remained committed to celebrating employees with parties, banquets, gifts, birthday cards, and outings, citing the value of having the fewest customer complaints in the industry.

Beyond the Call of Duty: Ladies and Gentlemen Serving Ladies and Gentlemen at Ritz-Carlton

The Ritz Carlton is renowned for its exceptional customer service, with the empowerment of employees being a critical factor in their approach. The company’s philosophy of “Ladies and Gentlemen Taking Care of Ladies and Gentlemen” highlights the importance of treating customers and employees with respect and dignity. Regardless of their rank and title, employees can spend up to $2,000 per day per guest without seeking supervisor approval to solve problems and deliver personalized and unforgettable guest experiences. This approach may seem costly, but it empowers employees to use their judgment to create memorable and personal experiences for guests. One of my friends enjoyed staying at a Ritz-Carlton hotel a few months ago, where he ordered a burger and a milkshake. Unfortunately, the hotel did not offer milkshakes, so he settled for a glass of water. However, to his amazement, the waitress surprised him with a milkshake to accompany his burger. She went the extra mile without being prompted by scouring the kitchen for milk, ice cream, and cold milk to create the shake.

Idea for Impact: Empowering Employees is a Strategic Approach That Yields Significant Benefits

Empowering employees goes beyond providing the necessary tools and training; it fosters a culture of trust, autonomy, and ownership.

How you treat your employees directly impacts how they treat your customers. When you prioritize making your staff feel appreciated and supported, they are more likely to provide exceptional customer service. A positive work environment can foster innovation and creativity within your organization while attracting and retaining top talent.

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  4. Create a Diversity and Inclusion Policy
  5. Seven Easy Ways to Motivate Employees and Increase Productivity

Filed Under: Business Stories, Leading Teams, Managing People, MBA in a Nutshell Tagged With: Coaching, Customer Service, Employee Development, Great Manager, Human Resources, Motivation, Performance Management, Persuasion

There’s Always Competition

July 6, 2023 By Nagesh Belludi Leave a Comment

There’s always competition, even if you’re introducing an industry-first solution. Let the following case studies serve as a cautionary tale.

Consider launching a new upmarket coffee shop in a bustling location. You might assume that establishing it in a neighborhood without other fine-coffee purveyors guarantees success, but competition still exists. Your intended clientele is already brewing their own top-notch coffee at home or patiently waiting to satisfy their caffeine cravings at work. By introducing your shop, you’re challenging their comfortable routine of enjoying coffee in their pajamas or at their work desks.

Don’t imagine the iPod didn’t face competition when it first launched. In fact, it faced a significant challenge from multiple fronts. Not only did it have to compete with other MP3 players, which were arguably less convenient, but it also had to outdo the storage capacity and convenience of CDs and the variety of radio stations. However, the iPod proved to be a game-changer with its ground-breaking 1.8-inch hard drive, a revolution in music-listening technology. With that iconic click wheel, you could shuffle through songs and switch from classical to heavy metal in the blink of an eye. And let’s not forget how cool it was to play with!

Back in the day, Southwest Airlines started with just three routes in Texas and no big-shot airlines to compete with. They had to convince folks that flying was better than hitting the road in their trusty jalopy. They hyped up the time-saving factor and ensured passengers knew they could still chow down on some grub at home. They also showered their passengers with free booze and had flight attendants rocking hot pants and go-go boots.

When Spirit Airlines decided to focus heavily on the Visiting Friends and Relatives (VFR) Market in Latin America, it had to compete against other high-priced airlines and face a new and challenging competitor. As technology advanced, Hispanic and Latino Americans could video-chat with their loved ones instead of splurging on expensive flights. Why bother with the hassle of international travel when you could easily catch up with your family while lounging in your jammies and munching on some Cheetos?

Remember, competition is everywhere—focus not just on direct competition but also on changing consumer preferences and hidden alternatives. You can’t just create customers out of thin air. Your product or service has to be compelling enough to make people choose you over your competition. You must offer something dramatically better, faster, cheaper, more powerful, or cooler than your established competitors.

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Filed Under: Business Stories, The Great Innovators Tagged With: Customer Service, Entrepreneurs, Innovation, Marketing, Parables

The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline

August 11, 2022 By Nagesh Belludi 1 Comment

When Spirit Airlines pivoted to competing on price in the late 2000s, it quickly gained a reputation not only for operational inefficiencies but also for its in-your-face, take-it-or-leave attitude towards customer service.

Where other airlines charged by-the-package fares for the flight experience, Spirit pared back service and introduced an a la carte pricing model. Charging for the “ancillaries”—i.e., everything optional, including water—allowed Spirit to keep ticket prices down and appeal to price-sensitive travelers willing to sacrifice the usual amenities for a lower ticket price.

In the ensuing years, the unconventionality of this business model did not go down well with customers. Much of the flying public’s frustration with Spirit had to do with Loss Aversion. That’s the notion that the emotional disappointment of a loss is more extreme than the joy of a comparable gain. If finding a cheaper fare on Spirit felt delightful, giving up some—or all—of the savings to purchase ancillaries and surrender the savings felt utterly miserable.

Passengers felt ripped off by these seemingly hidden fees, especially when the true cost of flying Spirit ended up greater than what the initial ticket price led them to believe.

Spirit became quickly convinced that there was a perception problem—its customers didn’t fully understand how its fares work. Particularly, first-time customers blindly presumed that Spirit Airlines works the same way as other airlines. In reality, there were no hidden or excessive fees, and passengers could only pay for what they need or want. In 2014, the airline introduced its “Spirit 101” campaign to educate customers and alter their perceptions. With time and the increased adaptation of the “Basic Fare” model and curtailed customer service by every other airline, passengers’ expectations have since been right-sized. Spirit Airlines has come a long way, and its customer service has improved vastly.

Further studies on loss aversion have shown that a cascade of successive fees is worse than the cumulative: i.e., three ancillary fees that add up to, say, $70, feel a lot worse than a single $70 fee. Appropriately, Spirit offers a “Bundle it Combo” package.

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Filed Under: Business Stories, Mental Models Tagged With: Aviation, Biases, Customer Service, Decision-Making, Emotions, Entrepreneurs, Innovation, Marketing, Mental Models, Parables, Persuasion, Psychology, Strategy

Is The Customer Always Right?

July 14, 2022 By Nagesh Belludi Leave a Comment

No matter how finicky or rude a customer is, many businesses make employees treat bad customers with unquestioned respect or risk reprobation—even getting sacked.

Per the well-worn business adage, is “the customer is always right?” No, they’re not. Sometimes they’re wrong, and they need to be told so.

Your goal should be to do business with people that you enjoy doing business with. Some customers simply aren’t good customers. They don’t follow directions and complain irrationally. They have unreasonable expectations, and they treat your people rudely.

Idea for Impact: A prudent maxim is, “the customer is usually right.” Put the customer first, but don’t get mistreated by them. Putting the customer first doesn’t mean putting employees second. As a business, you must let customers be wrong with respect and dignity; but employees should be authorized to caution some customers, “After due consideration, we believe your actions are unacceptable. Persist, and we’d choose to lose your business.” Some bad customers are just bad for your business.

Almost always, though, unhappy customers are your greatest source of learning; they can especially offer an honest assessment of the expectations you’re setting. Customer satisfaction with a transaction depends on their expectations going into it.

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Filed Under: Managing People, Mental Models Tagged With: Assertiveness, Attitudes, Conflict, Customer Service, Getting Along, Likeability, Persuasion, Problem Solving

How to Reliably Tell If Someone is Lying

February 25, 2022 By Nagesh Belludi Leave a Comment

There isn’t one reliable behavioral cue that consistently reveals that a person isn’t telling you the truth, but the most expected sign of dishonesty is evasiveness.

Does the other person evade answering direct questions or declare, “I don’t know,” “that’s about it,” or “I don’t remember doing that?”

Instead of making direct denials, do they seem to have been caught off guard and take more time to think up a believable response?

Idea for Impact: To detect a lie, listen and pay attention. If lying is nothing more than communicating false information, dwell on what’s being said. Does it make sense? Does it align with other facts you’ve mustered or anecdotes you’ve heard? Do the answers to your probing questions stand up to scrutiny? Does the story begin to shift?

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Filed Under: Effective Communication, Managing People Tagged With: Body Language, Customer Service, Ethics, Etiquette, Listening, Persuasion, Social Skills

Selling is About Solving Customer Problems

December 15, 2021 By Nagesh Belludi Leave a Comment

The best salespeople don’t sway customers through manipulative games and mesmerizing presentations. Instead, they figure out how they can enhance a customers’ lives.

If customers believe their problems are real and, more importantly, if they understand them personally, they’re more likely to be persuaded by an image of a satisfying solution.

No product or service is excellent in and of itself. It’s only worthy if it fulfills customers’ needs.

Invest more time in the problem representation stage. Develop a fuller appreciation of your customers’ problems. Make the idea of paying money for the solutions seem natural. Induce consumers to fit your products and services into their long-held routines.

Idea for Impact: Focus on solving customer problems. Don’t find customers for your product. Find products for your customers.

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  5. A Sense of Urgency

Filed Under: Leadership, Mental Models Tagged With: Customer Service, Marketing, Mental Models, Persuasion, Problem Solving, Skills for Success

When to Send Customers Gifts

November 20, 2021 By Nagesh Belludi Leave a Comment

Gifts are crucial marketing tools, which can help customers remember you throughout the year, not just during the holidays:

  • Send a gift after a sale. Saying thank-you does more than complete the sale—it helps build the relationship.
  • Send gifts after receiving referrals. One of the most rewarding compliments a salesperson can receive is a referral. Send a thank-you soon after getting a referral.
  • Commemorate anniversaries. Observe the day you signed your first contract with a customer, making it a special date to celebrate each year.
  • Remember birthdays. Send customers some birthday cheer, not just a card. Be creative and personalize the gift—send tickets to a sports event that the entire family can enjoy, for instance.

Idea for Impact: Business gifts can help solidify sales relationships and earn even more business. Pay attention to the things your customers enjoy and show your appreciation. As long as your gifts don’t seem patently insincere, they’re likely to welcome them.

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Filed Under: Effective Communication, Managing People Tagged With: Courtesy, Customer Service, Etiquette, Getting Along, Gratitude, Likeability

How to See Opportunities Your Competition Doesn’t

November 19, 2021 By Nagesh Belludi Leave a Comment

'Different' by Youngme Moon (ISBN 0307460851) Harvard strategy professor Youngme Moon’s Different: Escaping the Competitive Herd (2010) describes how many companies pursue the same opportunities that every other company is chasing and thus miss the same opportunities that everyone else is missing.

In category after category, companies have gotten so locked into a particular cadence of competition that they appear to have lost sight of their mandate—which is to create meaningful grooves of separation from one another. Consequently, the harder they compete, the less differentiated they become … Products are no longer competing against each other; they are collapsing into each other in the minds of anyone who consumes them.

Moon argues that the companies and brands that see a different game win big. Such innovators don’t just try to outcompete their rivals at the margin. Instead, they redefine the competitive landscape by embracing unique ideas in a world crammed with me-too thinking.

European airline Ryanair unleashed a new wave of relentless cost- and price-leadership by charging customers extra for everything beyond a seat itself. If you want to check a bag, you pay extra. If you want an airport agent to check you in and print your boarding pass, you pay extra. If you want food and drink, you pay extra. Later on, Spirit Airlines took the price-obsession further by charging for carry-on bags too. After a rough rollout and customer defiance, paying for carry-on bags has become the new normal.

Idea for Impact: Being different is what makes all the difference. If you do things the same way everyone else in your field does things, why would you expect to do any better? What are you doing to raise your game—not just to stay in place, but to get ahead?

Wondering what to read next?

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  4. Fail Cheaply
  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: Business Stories, Leadership, The Great Innovators Tagged With: Aviation, Competition, Customer Service, Getting Ahead, Innovation, Leadership, Risk, Strategy

Employee Engagement: Show Them How They Make a Difference

September 20, 2021 By Nagesh Belludi Leave a Comment

The sure-fire way to assist employees find meaning and fulfillment at work is to get them to have even a small interaction with people who directly benefit from the work they’re doing.

One research showed that radiologists developed a stronger sense of the significance of their work if a photo of the patient were attached to an X-ray. “It enhanced their effort and accuracy, yielding 12% increases in the length of their reports and 46% improvement in diagnostic findings.” Radiologists typically don’t interact with patients directly—they work in the background providing interpretation services to other doctors.

Idea for Impact: People are inspired less by what they do and more by WHY

How people see themselves and their meaning and purpose in this world may be the most significant incentive of all.

Empower your employees, especially those that aren’t on the frontlines, with direct reminders of task significance. Invite next-down-the-line customers (virtually or in-person) to share meaningful insights, give appreciation, and share feedback. Promote regular dialogue with customers to help stay relevant and become responsive to customer issues as they arise.

Wondering what to read next?

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  2. These are the Two Best Employee Engagement Questions
  3. A Sense of Urgency
  4. Treat Employees Like Volunteers
  5. Seven Easy Ways to Motivate Employees and Increase Productivity

Filed Under: Leading Teams, Managing People Tagged With: Customer Service, Great Manager, Leadership, Motivation, Networking, Performance Management, Persuasion, Social Skills

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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