Re:Focus

Slippery Numbers

There are two types of claims: those based on hard numbers and those based on slippery numbers. 

Hard numbers are facts that, when evaluated, lead to a logical conclusion...and a hard claim.  For example, the US Constitution is 222 years old and, as such, is the oldest written constitution still in use today.  Slippery numbers, in contrast, are used to support a claim that someone wants to make, regardless of the hard numbers. For example, George W. Bush was one of the most popular presidents in US history (when compared to presidents with under a 40% approval rating).  The claim is technically true...when based on slippery numbers. But the measurement is clearly manipulated to help make the claim.

Sadly, hard numbers and hard claims are often reserved for scientists and text books.  Slippery numbers, however, run rampant in politics and marketing. Here's a real ad that Continental Airlines is currently running as an example.  The headline says - "The newest jet fleet.  Not just a new paint job." The problem is, their claim is based on slippery numbers.  The fine print right beneath the headline says, "Continental Airlines flies the newest jet fleet among global airlines based in the US." (click here to see ad full size). 

They only compare themselves to US based global airlines.  In other words, they only compare the age of their fleet to American Airlines, Delta and United - the only other US based global airlines.  Their claim of "newest" is factually correct...when based on slippery numbers.  If you consider the hard numbers and the claim they are attempting to make, you'd have to compare them to all airlines flying in the US. The problem is, the truth would not be the version of truth that they like.

As consumers we have to look out for any company that claims to be the best, youngest, fastest, smartest or any other absolute.  Odds are, to be the absolute at something, they are using slippery numbers to make their claim. Slice the numbers a different way, and some other company can make virtually the exact same claim.

As companies, we need to be honest with ourselves about what's more important to us - manipulating numbers simply to appear to have an advantage that we don't really have. Or to be honest about the things we believe and the way we conduct business.  As the old Buddhist saying goes, "how you do anything is how you do everything." Any company willing to trick their consumers in advertising is probably willing to include hidden fees in their price, offer benefits that aren't really there and promise guarantees or protections that are hard to claim when you feel you deserve them.

By the way, Spirit Airlines has the youngest Airbus fleet in the Americas and AirTran flies the youngest all-Boeing fleet...and I write the most popular blog on the internet*

*comparison made to less popular blogs.

No One Has A Passion For Customer Service...So Stop Saying You Do

I love it when companies say things like, "customer service is our passion"...because it's a flat-out lie.

Our passions are formed when we're young and there is not a single person involved in customer service in any company today that dreamed of being in customer service as a child.  Not a single one was lining up their teddy bears pretending to help them fix a software issue, get their cable TV working or helping them return an item of clothing that they've clearly already worn.

The truth is no one has a passion for customer service so saying it lacks any credibility whatsoever.  It is totally inauthentic.

However...

There are lots of people out there who care about other people.  There are many people in the business world who carried their teddy bear with them where ever they went and tucked it in to bed at night.  Later in life, the teddy bear was replaced by people.  These same kids genuinely cared about other kids on the playground.  They made sure everyone got invited to the birthday party so no one would feel left out.

And as adults - those same people make the best customer facing employees - not because they have a passion for customer service, but because they genuinely care about people.

If you want to offer great customer service, then hire people who care about other people then give them the tools and the freedom to do it.

And if you want to tell people about your "passion for customer service," try saying this instead: "we only hire people who care about other people." And, if you actually do it, your customers will feel the difference.

Membership Had Its Privilages

Being a member of American Express (and “member” was indeed the term) used to mean something. To carry that green card with the Roman centurion in your wallet was a sign of success, a sign of independence, proof that you were going somewhere. But the brand built on the premise of “Membership has its privileges” seems to have forgotten its cause and become just another company selling credit-card services. In an attempt to capture all the market segments, to have something for everyone, AmEx has tarnished its brand.  And worse, it’s hurting its own business.

Anyone who has an American Express card knows that it’s not accepted everywhere—but we were okay with that. The occasional inconvenience was acceptable. As with any premium brand, there was a price to be paid because we wanted to be part of an elite group. We didn’t carry an AmEx card because of  universal acceptance, anyway; we carried it because it was a symbol of who we were.

But no more. What had once been an exclusive club has thrown wide its doors to admit everyone. Suddenly, membership doesn’t feel so special anymore. The entire concept of membership—the whole idea of premium—is that it’s exclusive. The physics of it are unavoidable: The more you appeal to the masses, the less exclusive you become, and the less value your premium possesses.

This degradation is no theoretical matter: With the loss of value inevitably comes the loss of business. Card carriers hear the phrase, “I’m sorry, we no longer accept American Express,” more frequently now than ever before. I understand a small business’s decision to stop accepting the card; the fees, they say, are too high. But for me, the real red flag started waving when my American Express card was denied at H&M. The clothing chain has 175 stores in the U.S. and 1,800 worldwide. Last year, the company rang up $14 billion in sales—and it no longer takes American Express.

Only a bit less disconcerting is to slide your AmEx card across the counter and be told by the cashier that the store “prefers” that you use Visa or MasterCard, if you have one. There was a day when “members” insisted on using their AmEx cards. We did this because the experience of using it meant something to us. These days, more people are all too happy to flip through their wallets and pluck out the alternate plastic, as requested.

And that’s a problem. When those who pay to be a member of a club—and once a year, the membership fee still pops up on their statements—no longer defend the club as though it were their own, it’s a sign that the brand is slipping. Almost every AmEx cardholder also carries Visa or MasterCard, but not all Visa or MasterCard holders carry American Express. In other words, AmEx holders have a choice—and they are becoming increasingly indifferent to that choice.

Consumers’ appreciation of their American Express membership has never had anything to do with points or air-miles. Those are tricks that lots of companies use to drive repeat business—but it’s not the same thing as loyalty. Loyalty is the willingness to pay a premium, or even to turn down a better product, in order to continue doing business with the same company. Like any couture label, the American Express’s centurion was a badge of honor, and a physical symbol of living the American Dream. “Privilege,” as AmEx should know, isn’t about perks—it’s a feeling you imbue in your loyal customers.

And what of the retailers? Retailers rarely have nice things to say about AmEx anymore. They complain that it takes AmEx forever to pay them. The retailers are just as much a constituency as the cardholder; they should be made to feel like members, too. When a company has a strong brand, its constituents either tolerate the inconveniences or rationalize them away. But when the brand is weak, the only thing people focus on is what’s wrong.  And it gets worse. AmEx used to be one of those stocks that people held onto for the long term. But it’s very different now.  Like its product, AmEx stock is becoming just another equity, and investors bail out at the slightest hint of a cloudy day.

It all boils down to a few essentials: Great companies are built on the backs of the loyal, not the masses. AmEx no longer has shareholders, it has share-squatters. AmEx no longer boasts members, it gets visitors. And retailers no longer want to be a part of a purportedly exclusive club when they can get all the same services at the YMCA. Serving the mass audience and the luxury audience is fine—but you can’t do it with the same brand. Honda has Acura. Toyota has Lexus. American Express needs another card. Call it, say, People’s Express. People’s Express can chase market segments and go head-to-head with MasterCard and Visa. Meanwhile, that proud centurion on the AmEx card needs to stand for something again.

Learn how to keep your membership exclusive.

Read a free chapter from Simon's new book Start With Why

Read Now - http://bit.ly/L26zk

Twitter - @simonsinek

Article originally featured in BrandWeek.  

Who Cares About Customers?

One day, when you get old, would you like your family to support you or would you like them to care about you?

If you're family supports you, that means they will pay the bills for the old age home, call you the prescribed number of times and visit you on your birthday. But if they care about you, they will visit you more often and not on any set schedule. They will bring the grand kids over and make sure you get an extra helping of marshmallow sweet potatoes (your favorite) at Thanksgiving.

No one wants to be supported, we want to be cared for. So why are so many companies so proud of their "customer support?" You see it all the time on websites...the link in the upper corner that says simply, "support." To most that means giving you the ability to send an email with your question.  Support means answering your questions and acting in the prescribed manner.  But "care," that's an entirely different standard. Care is human...like the customers.

There is power in words - just as you plainly understood the difference when I asked you if you wanted to be supported or cared for when you get old, so too does that word impact the behavior of the people we hire to support...er...care for...our customers.  Firstly, the department itself is usually called, "customer support."  It should be called, "customer care."  We tell those who work in the department to offer "customer support."  We should be telling them to "care for our customers."

We, as customers, can always tell the difference too.  A customer support agent who has been told to offer "support" tends to follow a script.  They tend to be matter-of-fact about things. And even if the problem is not resolved to your satisfaction, they will actually tell you all the things they've done to help you and that there is nothing more they can do. That is, by all fair metrics, good support.

But customer care agents who have been told to take care of the customer, will talk to you differently.  They have more patience.  They will go out of their way or even ask one of their colleagues for help if they don't know the answer.  There is no script.  They don't need one.  If you hire someone who likes people and you tell them to take care of other people, there is no special training required...just special words to inspire them to do the right thing...to take care.

Executives May Make Decisions, But That Doesn't Mean They Know The Answers

This weekend I walked into a Verizon Wireless store to pick something up. They had these fancy new tablet computers that the agents carry around the store with them. Apparently, some folks back at corporate decided that having the tablets was a way for their agents to spend more time face to face with customers instead of being stuck behind a desk.  Sounds like a great customer service decision, right?

Wrong.

You see, the executives who decided to put the tablets in the stores have never actually worked in the stores.  And no matter how many surveys they had their agents complete, there is no better learning than being in the trenches.

In the case of Verizon Wireless, when they used desktops, their agents had to be signed in - one computer for one agent.  But with the new tablet systems, they have to share the interface. If one agent has a lot of information they need to fill in about a customer, the other agents have to wait. I think this is hilarious. They want their agents to spend more time with the customer...so now, the agent and the customer can stand next to each other while the whole transaction takes longer than if they stood at a counter.  As a customer which would you rather have? Stand at a counter and get out quickly or be forced to make chit-chat while the transaction time is needlessly protracted?

It is for this reason that more companies are including front-line people on design teams or decision groups - because their insights are second to none. Boeing, for example, invited real flight attendants, pilots and passengers to help them design their new 787 Dreamliner. They boast that it will be the most comfortable plane for all those who have to fly in it and not just those who manage its numbers from far away desks. 

Including those who will be most impacted by the decisions in the decision process is much more powerful than focus groups.  Focus groups will simply report what they want or don't want.  What they like or don't like. And very often the requests or desires are unrealistic or financially impossible. But when they are on the actual design team, on the inside, they are subject to all the budgetary and production restrictions and are more likely to work with management to solve the problems and find the best solutions.

As for Verizon Wireless, this time, they got it wrong.  But next time, I hope they'll heed this advice and include some customer service folks on the team tasked with how to improve customer service. Can you hear me now?

Why People With A Sense of Humor Love Southwest

As for companies who aspire to be loved as much as Southwest, the trick is to know what your personality is first and then hire people who represent it.  Don't just hire anyone, no matter how great their resume and try to force them to be something they are not. Herb Kelleher, Southwest's founder and former president, said, "you shouldn't  hire people for their skills you should hire them for their attitude, you can always teach them the skills later."  The problem is which attitude? It has to be the attitude that fits your company. When your employees belong in your company, when they fit your culture, then their ability to properly represent you will come naturally.

The Battered-Wife Customer Service Model

I saw a TV interview  with Dave Barger, JetBlue's current CEO, on which he answered some passenger questions.  One passenger asked why the airline was charging for pillows and blankets.  Barger's reply?  He said that although JetBlue was charging for those amenities, every passenger also got a leather seat and 36 free channels of live TV.

I couldn't believe my ears.  JetBlue, the symbol of how an airline is supposed to treat customers had changed strategies.  It seemed they are now opting for the "battered-wife" customer service model.  It's akin to when a battered wife asks her abusive husband why he beats her and he replies, "What are you talking about?  I put food on the table and provide a roof over your head." 

When a customer complains about something, the appropriate response is to explain the circumstances or apologize.  Offering a "counter argument" completely misses the point and ignores an opportunity to do right by your customer.  Complaints are a cry for help!

A legitimate customer service complaint had been raised to the most senior executive in the company to which the best answer he could muster was a memorized boiler plate of product features.  Did I miss something?  When did American Airlines buy JetBlue?

When a company says they "promise" to do something, that's a pretty weighty commitment.  Uphold that promise and your customers will give you a lifetime of loyalty, even if you screw up now and then.  Violate that promise and you can quickly destroy any sense of authenticity you may have built.  Worse, you quickly find yourself looking and sounding exactly like everyone else.

JetBlue used to serve as a prime example of exactly how to treat customers.  They were teaching the old boys that it's how you treat people not just the degrees of pitch your seat reclines that really matters.  Sadly, since the departure of JetBlue founder David Neeleman, JetBlue are starting to act and sound like everyone else.  Sadly, JetBlue is now teaching us a very different lesson about customer service.

JetBlue says the reason they exist is "to provide superior service in every aspect of our customer's air travel experience."  They even offer a bill of rights which includes being honest about a situation.  David Neeleman, JetBlue's founder and former CEO stood out among CEOs in and out of the airline business for his willingness to be honest.  After JetBlue suffered serious service problems during a big winter storm in 2007 (hundreds of passengers were left stranded on planes for 6 or more hours), Neeleman went on national TV and said, "we screwed up."  It was that kind of honesty which endears customers.  The JetBlue board ousted Neeleman three months later preferring the leadership style of Dave Barger, JetBlue's former COO. 

In an age in which too many companies opt for the battered-wife customer service model, JetBlue really did seem to believe in humanity.  Neeleman maintained a blog (or flight log, as he called it), the current CEO does not.  JetBlue used to have one class of service aboard their aircraft - we are all equal, we are all human - they professed.  Now, however, JetBlue allows you to pay a little more money to get a little more legroom.  I hate to be the one who points out the obvious but that's a class (though I concede, there is no curtain). 

With or without Neeleman at the helm, honesty and humanity should still prevail at JetBlue.  Barger simply had to explain that the oil crisis had put tremendous pressure on the airline and it pained them to have to nickle and dime their customers but it was either that or suffer much more serious set backs.  All he had to do was appeal to the humanity of their customers to work with them in this time of need.

There are many advantages to not making any promises to your customers.  For one, you have more flexibility.  Secondly, it's much easier to meet low expectations.  The disadvantages include vastly reduced customer loyalty (different from repeat business) and little opportunity to differentiate.  Making a promise and operating your business based on Why your company exists means you hold yourself to higher standards.  You have to be less flexible because you'll need to opt for what's right not for what's most profitable or most expedient sometimes.  But the benefits include greater long term value and much more loyalty and support from customers, even when you're not operating at your best.

I'm just sad to see one of the few companies who believed in customer first start to show signs of cracking.

I Miss Starbucks

Want to know what's going on with Starbucks?  Like so many companies that achieve such levels of success, Why the company was founded in the first place has been forgotten.  The cause that drove them to change American culture has now become something much less inspiring - now, it's all about What they do.  A company devoted to "the third space" is now just selling coffee.

The following is a letter I sent last week to Howard Schultz, CEO of Starbucks (his version didn't have the picture...otherwise it's a carbon copy).

July 29, 2008

Dear Howard:

I miss Starbucks.

There was a time, not too long ago, that Starbucks stood for something.  There was an underlying cause, a purpose, a belief you had about the world.  It was that idea that I bought, not the coffee.  And it was inspiring.

But those days are gone. 

Now it’s about coffee and money.  Lets be honest, it’s an open debate if Starbucks coffee is really better (and even if it is, I can get about the same from someone else).  And the money?  Well, as soon as a company starts focusing on the money, they certainly can’t focus on the customer experience. 

It’s pretty remarkable.  Starbucks is signally responsible for creating a coffee shop culture in America.  Starbucks didn’t bring coffee to the United States – it brought the coffee shop experience – the third space, you called it.  The space between home and work. People bought into the Starbucks belief – I know I did.  Your cause was clear and your actions proved it.  But over time the cause has lost its clarity, and your actions prove it.    

There was a time when you invited people to spend time in the third space – giving those who wanted to stay a ceramic cup and ceramic plate.  But then a focus on the money started to erode that purpose.  Certain decisions started to muddy the cause...dilute the belief.  And paper cups became the standard.  Nothing says to a customer, “we love you now get out” like a paper cup.  It started to be about the coffee and not about the experience.  It’s no longer about the third space.

I hope you rediscover why you do what you do.  I hope you once again become a champion for your cause, not just a purveyor of caffeinated drinks.  I miss the third space.  I’m not telling you anything you don’t know, in fact, it was you who told me over the past 20 years what you believed…and I believed you.
I would love to help you rediscover your Why.  I would love to help you inspire people again.
Hell – I just miss you the way you used to be.  I loved that Starbucks.

With great respect,

Simon Sinek

Are You REALLY Inetersted In Sending Holiday Wishes?

I'm fascinated how companies feel the need to use the holidays as a cheap excuse to troll for business.  It's so unsavory.  Don't get me wrong, sending a holiday card at the end of the year is a great way for a company to reconnect a lapsed customer relationship or foster a new one.  But if you don't really want to send holiday cheer, don't send the card...you could do more harm than good.

Everyone knows that sales is about relationships.  And everyone knows that relationships can't be built in 5 minutes.  Any experienced salesman knows that if he just walks in and starts "selling" ("show up and throw up" as Jack Daly, one of the best sales coaches out there, calls it), then the sales call will probably not end successfully.  The same is true for holiday marketing.

Of all the fake holiday wishes I received this year, this one was my favorite. An internet marketing firm sent me an email with the subject: Happy New Year from www.eyelogicmedia.com (see below).  Not knowing who they are, I actually did think that it was a nice sentiment and opened it.  That's when I realized that they don't care about me and my happy and healthy New Year at all.  There is not a single warm wish in the entire email. There are however copious announcements about their new clients and all their awards.

How disappointing.

They did exactly what Jack Daly rails against - they had my attention and an opportunity to talk to me like they cared about me (or at least fake it).  They could have taken a step to building a relationship with me (especially if their email was memorable).  They could have sent me holiday cheer and easily created an opening to talk to me again about business in the New Year.

But they didn't. 

As soon as I realized they weren't wishing me a Happy New Year (as they promised in the subject line), I disengaged.  I deleted the email without reading a single word about how great they may be.

Sending a holiday card to existing, lapsed or potential customers shouldn't be seen an opportunity to make a sale or remind everyone how great you are.  It  should be  used  to send warm wishes and wish people good fortune in the New Year.  That's it.  If the message is genuine and if you are creative in how you deliver it, people will remember you.  And if you really care to send holiday cheer to people, then odds are your holiday card will be one of the steps you'll take to lay a foundation for a long and fruitful business relationship.

And on that note, I wish all of you a very happy and health New Year (and don't forget to check out our online store - there are big savings on all our most popular items)...see what I mean.

Great Service - Bad Product

Just a short addendum to the piece to my last posting "The best customer service is no customer service."

T-Mobile is much lauded in the press for their superior customer service.  They have made customer service a priority and deserve great credit for their improvements.  BUT...why do they need great customer service in the first place?

"All they've got is great customer service because their product sucks," says Julie.  A T-Mobile customer who did not read this blog nor did I talk to her about my opinions.  She's been on the phone with their "great customer service" because something went wrong...as she says, "something always goes wrong with them."

Again - I am a great believer in great customer service, but it's even better if your customers don't need it.

Earlier in Southwest Airlines life, a company heralded for their great service, they didn't have a customer service department.   They didn't need it.  They didn't get any complaints.  Someone in the office volunteered to answer the occasional letter of complaint that would  come in now and then.  The reason they didn't need it was simple - because their product was excellent.  Their front line service was so good, there was no need for staff to deal with things later.

I applaud T-Mobile for making strides in customer service, and I'd be even more impressed if they had to shrink the size of their customer service department because they couldn't keep everyone busy.

The Best Cutomer Service Is No Customer Service

In a recent meeting, I asked a senior employee of a big commercial bank why their customers did business with them.  "Our customer service," she said.  "We have better customer service."  I smiled and commented, "the only reason you have a customer service department in the first place is because something went wrong with your service.  If you had a better service, you wouldn't need a customer service department at all."

Don't get me wrong, if someone has to call, they better be treated with respect; they should never be left on hold forever, and they should get off the phone liking your company even more than before they called. But if they don't call at all - that's even better.

Customer service is like topical ointment.  Sure it soothes the itch for a short while, but unless you treat the allergy, the itch just keeps coming back.

Companies should strive to reduce the size of their customer service departments.  Very detailed metrics should be kept and not just shared among the rest of customer service (something already happening), but also with product development, engineering, online services or any other department that would be responsible for fixing the problems that occur.

What's more, these customer service metrics can help management prioritize resource allocations.  Fix the most common and/or hardest to fix problems first.

Of course, if you prefer not to make a better product, you can spend all that extra money on bigger call center and lots more customer service training.