Canadian Business

Editor’s letter

- JAMES COWAN

Why are companies so bad at customer service?

Last Friday, the kid behind the counter at a local coffee shop asked my name, introduced himself and shook my hand. The café is new and I’d visited it enough to be recognized, but not to qualify as a regular. The handshake makes it far more likely that I’ll be returning. Companies may try to institutio­nalize this kind of customer service, but that often ends with a Starbucks barista misspellin­g your name on the side of a cup. The clerk’s five-second, apparently spontaneou­s gesture, however, made me feel like something that is often described but rarely found: A valued customer.

The best practices of customer service often amount to the basic manners that we learn as kids: Shake hands, remember names and say “sorry” when you make a mistake. A handshake not only makes a server more likeable, it makes the client more forgiving if something goes wrong later, according to a 2012 study published in the Journal of Cognitive Neuroscien­ce. Both common sense and neuroscien­ce vouch for the value of caring for clients. So why do so many companies screw it up?

A significan­t reason is that good customer care often relies on people who never interact with customers. It’s emphasized by executives and understood by front-line workers, but often forgotten by the layers in between. And it’s these middle managers, accountant­s and IT engineers who can stifle the best customer service rep. Call centre workers are expected to be helpful and empathetic—but also to hit the productivi­ty targets set by their higher-ups. Retail salespeopl­e make no commission from processing the product you’re returning. As James Surowiecki wrote in The New Yorker: “Modern businesses do best at improving their performanc­e when they use scalable technologi­es that increase efficiency and drive down cost. But customer service isn’t scalable in the same way; it tends to require lots of time and one-on-one attention.”

It also can’t overcome a poorly designed system. In his book Service Failure, consultant Jeff Toister writes about a catalogue company whose returns department left packages in a tractor trailer for weeks on end, effectivel­y hidden from its customer service reps. “I don’t know of any secret phrase that can make a customer feel better when your business is unable to find a package mailed three weeks earlier,” he writes. Deployed properly, technology can be a help, rather than a hinderance. A 2006 McKinsey report cites a major clothing retailer that upgraded its stock systems, then used the increased efficiency to give employees 20% more time to interact with customers. A Forrester survey found 77% of consumers feel the most important thing a company can do is value their time.

There are plenty of Canadian companies that demonstrat­e strong customer service is possible. Online retailer Frank & Oak allows customers to contact them by their preferred medium—chat, email or phone—and empowers reps to solve problems on the spot. Both WestJet and MEC built reputation­s on always erring on the side of the customer. For companies looking to improve their relationsh­ip with customers, start with what McKinsey calls “moments of truth”: those encounters that are emotionall­y significan­t rather than merely transactio­nal (think applying for a loan, not paying a bill). They will differ by company. It might be making a return, or finding a better flight. Or, perhaps, the moment when a casual customer at the coffee shop becomes a devoted regular. letters@canadianbu­siness.com

@jamescowan

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