Climbing the Customer Service Pyramid

By James A. Baker
Founder
Baker Communications

 By now there is almost universal agreement in the business community that excellent customer service is the key to holding on to customers, which, in turn, is the key to sustaining long-term profitability. After all, it costs almost 10 times as much to sell a customer the first time as it does to sell to him the second time. You do the math. So the million dollar question here is, “How can your company build stellar customer loyalty?” The answer is, gradually and professionally. And it all comes by gaining an understanding of the customer service pyramid.

Before you can deliver excellent customer service – the kind that leads to long-term customer loyalty – you need to make sure you understand how excellent customer service looks from the customer point of view. Companies spend a lot of time designing elaborate systems that they think will be helpful to customers, only to discover customers aren’t impressed at all. Generally, customers are looking for a few simple, practical value items when they do business with you. These items build on one another, which is why it is called the Customer Service Pyramid.

1. Basic Performance Level – This level has to do with those standard items that customers just assume they will receive from a good customer service experience. This would include things like a courteous, quick, professional attitude from whoever speaks with them. You don’t earn extra points for delivering this, because customers require this. But it will really cost you if you fail here!

2. Fulfillment Level – At this level, the customer actually expresses a particular problem, need or request to you. He knows that if he doesn’t express the need to you, it won’t be met. This is where a lot of good customer service programs sink or swim. If you are able to adequately address the need, or at least provide some service or relief that demonstrates good faith on your part, the customer will have his basic need fulfilled and trust you with more of his business. Failing to fulfill this need increases the likelihood that he will shop around a little more next time.

Levels one and two represent the stopping point for most customer service programs. You have fulfilled your duty, and delivered it professionally. What more could a customer want? The answer is, a lot, and even if they don’t always expect more, they are always very impressed when the get more anyway.

3. Bonus Level – Often a customer may be envisioning his “perfect solution, “ say, receiving a new unit since his non-functional one is still under warranty, rather than simply getting free shipping and free repair from your shop in another state. They may not really expect to get such preferential treatment, but they may ask anyhow. Anytime you are able to provide this extra bonus service – giving them something they are not really entitled to at little or no cost to them -- it provides a super boost to the customer’s opinion of you and your company. This can translate into many big customer loyalty points.

4. The Jackpot Level -- Sometimes you, as a CSR are aware of options, opportunities and benefits which the customer might highly value, if only he knew they existed. Sometimes companies create products or services which are so new the customer is not aware of them. Or maybe the company recently adjusted its policies to open up premium options to a broader customer base. In any event, a CSR can send customer loyalty through the roof by spending just a few moments getting to know the customer’s needs or history a little better. Some of this information will be in your database, and the rest of it can be collected by asking a few polite, probing questions. Once you are sure you have something that the customer would be excited to receive, simply offer it to him. “Mr. Brown, we have just instituted a VIP program that will allow you to order this unit at half the advertised price, as long as you subscribe to the premium support package for a year. Would that interest you?” Everyone likes to be treated like a VIP. Companies who treat their customers like VIPs end up with lots of VLCs – Very Loyal Customers.

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March Customer Service Quick Tip of the Month – Don’t Forget D.A.V.E.

To provide customer service that will grow loyal customers year after year, just remember DAVE.

D – Dependability. Don’t promise what you can’t deliver; always deliver what you promise.
A – Assurance. Keep all your customer dealings at the highest level of integrity. This builds trust and puts the customer at ease with you and your company.
V. – Value. Of course, the bottom line is that the customer wants a product or service that meets his needs and performs at level that meets or exceeds his expectations. You can’t keep good customers by selling bad products.
E – Empathy. In all his dealings with you, the customer wants to see ample evidence that you care about his situation, understand his problem, and respect his right to be heard and well-served.
Follow DAVE’s lead and your customers will follow you, too.