They just don't get it, do they?
MICHAEL DELL PLACED HIS customers at the epicenter of his operations. He also popularized the term "mass customization" several years ago. At an early age, Dell knew better than his mega-corporate competitors. Dell knew that customers were changing in many ways -- needs, habits, values, and preferences -as fast as the speed of technology.
Dell knew what customers want -- quality, service, trustworthy brands, and choices -- faster and at least cost. The arrogant ways of some of Dell's bigger competitors in the early going tell us they just don't get it. Today, the customer is king. Tomorrow, the customer will be god. God is more merciful than the market. The market today is so omnipotent that it can dictate whether a businessman will have a business, or if employees will have jobs. The market today is merciless and unforgiving. Some businessmen with great brands, and their employees, just don't get it and take customers for granted.
Henry Ford once fell in love with his Model T, and produced this type of car every 40 seconds. When the duo of Du Pont and Sloan listened more to the customers and turned out new GM car models every year in the early 1920's, they ate up Ford's once monopolistic share of the market. It took Henry II, the grandson, to listen to customers and hired a bunch of Whiz Kids to turn Ford away from impending bankruptcy.
The Model T story is a classic testament to the falsity of the "one size fits all" mindset. Unfortunately, this outdated mentality still abounds in today's best conglomerates. Let me illustrate.
It was roughly 8:30pm last Monday, April 23 when I attempted to pick up the replacement of a defective gadget I bought from a well-known technology provider at SM Megamall's Cyberzone. I have been a subscriber of this giant firm for more than 12 years, and my family and I have a few post-paid accounts. I politely asked the security guard for a number, but I was told that they were closing soon and are no longer serving additional customers other than those being served already. So I asked if I could just follow up my request for the replacement. The guard asked me to write my name, phone number and reference number of the transaction I made a few weeks earlier. I did. After about 20 minutes, the guard said the replacement gadget is available, but I had to return the following day, since I missed the cut-off for customers to be served.
I reasoned that I could wait till the last customer is served. After all, the replacement gadget is ready and it would likely take a few seconds to document my receipt of the replacement. I thought it was not much of a hassle for them. To my surprise, it seemed it was against their rules on the cut-off. My explanation that I was a loyal customer for more than 12 years, a few other post paid accounts, and that I waited for almost a month to get back this gadget all fell on deaf ears. I wanted to come near the customer service counter, but was bodily prevented from doing so. Of course, I was embarrassed. That's when I realized that I wasn't smart after all. I could have better enjoyed talking and texting under the sun if I subscribed to the SMARTER provider. I guess it's my fault that I continue to think GLOBAL, and that's the kind of treatment I got. I hope my friends in this Class "A" conglomerate can see this as an opportunity to improve the way their minions handle their customers.
Treating all customers the same way is a classic way of mass production. Sadly, that's passé. Mass customization is treating your customer individually. Today, one size fits only one -the customer you are serving right now.
Many companies have realized that mass customization is a real differentiator in the market today, especially in highly competitive industries. It is something that did not just happened suddenly. There were tell-tale signs of this phenomenon nearly half a century ago when W. Edwards Deming started his passion on quality. Quality always wins. Quality is not just what's inside the product -- it is very much a part of the service that goes with the product. Not all customers are the same. You got to accept that Lady Gaga was just "born this way" -- not like you or me.
On June 25, 2001, the TGV Mediterranee encountered difficulties that caused a considerable delay. To make it up to its customers, a top executive of this train company wrote most, if not all, registered travelers an apology for the delay. In addition, a "Bon Voyage Coupon" equivalent to the fare paid for the delayed trip was enclosed. The coupon was good for one year for all travels offered by the company. The coupon was only worth $50, but its value in terms of future patronage was priceless.
Great companies connect with their customers in an emotional way. They often go above and beyond the call of normal duty. Going the extra mile tells a loyal customer, "We value you." Shooing away a customer because it's roughly 30 minutes to closing time translates into something like, "Hey, buddy, get smart. We don't like you here."
Taco Bell has a unique way of handling customers' mess. They call it SOP for OBM -- standard operating procedure for One Big Mess.
Imagine a mother drops in with her toddler for a meal. The child gets careless and knocks the drinks on the floor. It's One Big Mess (OBM) by the customer, but One Great Opportunity (OGO) for Taco Bell. Here's what usually happens next. A staff assures the mother that it's perfectly all right - she does not lose face. Next, he talks to the child not to worry and that a replacement drink will be given right away. The child saves face and is assured her momwon't scold her. Then, a new, bigger drink is served. The mess on the floor is cleaned up at once and unobtrusively. For good measure, a side order of fries or pie, is unexpectedly served. Long after the spill is forgotten, the big drinks and the fries or pie will be long remembered by parent and child -- and all other pairs of eyes glued on the incident.
When you are the industry leader, you got to continually think of better ways to connect with your customer, not by treating them the same way, like run of the mill. If you are not the " nationwidest," you have more reason to find ways to delight, not harass, your customers so that they will shift allegiance to you -- not from you. In many industries, customers have fleeting and short-lived loyalties. One sad experience told by word of mouth can make several people think twice about your " unli" plans.
Here's a useful tip. Turn a mess into a message. When your customers feel treated like a loser, you lose. When your customers win, you win. Of course, some people just don't get it, do they?
Of course, one small incident can easily be dismissed as an isolated case involving one crazy customer. How a company reacts to one small incident speaks volumes -- and values, good old values.
History is replete with stories of how some companies now inhabit the cemetery of once upon a time great companies for simply taking customers for granted. Often success measured in pecuniary terms tends to hide some nasty incidents that tend to erode the moral fiber painstakingly nurtured by the owners and top management. Therefore, some executives will just let some incidents be. After all, how can you argue against success?
On the other hand, one isolated incident says that horror stories can happen, especially if the boss is not watching. Sometimes, it all depends on who's talking.
As the poet Lew Welsh says, "If the poem is made right, it will sit well in any room."
(Ernie serves in various capacities at the American Chamber of Commerce (AMCHAM), Employers Confederation of the Philippines (ECOP)AND the People Management Association of the Philippines (PMAP) and other professional and non-governmental organizations (NGO'S). In 2011, he was given recognition as Diplomate in People Management (DPM) and voted "Best Newspaper Columnist of the Year" (for his Sunday Inquirer column) by PMAP, where he was President in 1999. He is the President and CEO of EC Business Solutions and Career Center, a human resource consulting firm. His new books, "Life's Big Lessons" and "Life's Big Lies" are now available at book stores. He can be reached at ernie_cecilia@ yahoo.com)