LearnShareProsper logo Boosting Business_Performance Adele Sommers
by Adele Sommers, Ph.D.
 www.LearnShareProsper.com Adele@LearnShareProsper.com 
In This Issue

May 29, 2008
Volume 4, Issue 11

"How-to" tips and advice on increasing business prosperity, published every other Thursday.

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-- Feature Article: The Power of Perceptions in Shaping Customer Satisfaction

-- Note from the Author: Improving Customer Service with Suggestions and Apologies

-- Special Message: Use an Online Suggestion Box to Tell 'Em What You Think!

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Note from the Author

Improving Customer Service with Suggestions and Apologies

Happy woman consumerMy recent newsletter article and blog post on using suggestion boxes to increase customer satisfaction generated an unexpected and welcome outcome: A personal note from Jeff Whitton, founder of a very promising new online service that has been much needed for a long time: SuggestionBox.com.

I'm shining a spotlight on SuggestionBox.com in today's issue, along with updated findings on how to use the power of apologies to help resolve major customer complaints.

Both suggestions and complaints represent the "voice of your customer," and thereby deserve a deeper look to understand their impact on your constituents' behavior. Not only is your goal to retain customers, clients, or patients through increased goodwill, but also to prevent more serious problems from occurring, such as the potential for litigation when something goes awry.

For these reasons, I hope you enjoy today's features, including "The Power of Perceptions in Shaping Customer Satisfaction," and please be sure to join the conversation on customer service by leaving your comments on my blog!

Here's to your business prosperity,

Adele
Adele Sommers, author of the "Straight Talk on Boosting Business Performance" success program

P.S. If you missed any previous issue, visit the newsletter index!

Special Message

Use an Online Suggestion Box to Tell 'Em What You Think!

SuggestionBox.com image: "Improve The Things Around You"SuggestionBox.com recently made its online debut as a brand "new, creative, and interactive way to send and receive ideas and suggestions." The actions you can take are simple but powerful. Here's what you can do...

1) Send: You can submit your own ideas and suggestions to any organization using the "Send Suggestions for Free" option. Others can vote on and discuss your idea, and you can track feedback and progress on the implementation of your idea.

2) Receive: You can set up a suggestion box (for a modest fee) to receive ideas and feedback from employees, customers, or other constituents using the "Set Up a SuggestionBox" option. This option offers a secure and convenient way to receive input, and gives your audiences a chance to "weigh in" on others' ideas while you evaluate them for merit and do-ability.

Why the need? I think this colorful description from SuggestionBox.com's FAQ page says it all...does this image of the age-old, often ineffective process seem familiar?

SuggestionBox.com image (suggestion box)"SuggestionBox.com modernizes the generations old practice of attempting to connect with customers through writing with a broken pen, attached to the end of a rusty chain, on a piece of scratch paper, slipped into a wooden box, with a corroded padlock. Then, with luck, months later it is possibly read by a manager, and probably discarded if it contains anything derogatory, before it is perhaps forwarded to upper management to languish in discussion before being ignored. Best case scenario? It gets implemented without acknowledging or engaging the customer who originally suggested the idea." (I agree!)

Another key point: SuggestionBox.com has its own suggestion box (of course!), to which I submitted an idea to create an affiliate program for suggestion box services. I've learned that SuggestionBox.com evaluated my idea, and plans to implement it!

Feature Article

The Power of Perceptions in Shaping Customer Satisfaction
by Adele Sommers

Woman weighing value on a scaleWhat's the value of perception? Isn't it interesting how our perceptions rule our beliefs and actions? So much of the brain research today seems to support the idea that our perceptions define our reality.

For that reason, this article focuses on the role of perception in the minds of consumers. Is the glass half empty or half full? The definition resides in your customers' eyes!

People Perceive Quality in Many Ways

Regardless of how good you believe your offerings or project solutions are, your clients and customers will be responding to "quality in perception" even more than "quality in fact."

  • Quality in fact refers to the features that we believe we're paying for, such as how much something weighs, how fast it runs, or various other characteristics.
  • Quality in perception refers to things like courtesies, special considerations, a caring and personalized attitude, and a host of other subtleties that can lead us to believe we're receiving something above and beyond what we're paying for. Effective quality in perception can help compensate for any gaps in quality in fact that could otherwise irritate or inconvenience consumers.


Often, Perceived Value Is Not about Cost

Some years ago, I was a volunteer mediator in the Small Claims Court system. Over a period of months, I was fascinated with the proportion of cases involving alleged wrongdoing or incompetence. People were suing businesses such as termite services and auto body painters, and even former best friends and health care providers over a variety of grievances! The suits often sought fairly small amounts of compensation, which meant that the financial aspects were not the primary concern.

Mediation sessionWhat repeatedly emerged in the mediation sessions was that each plaintiff felt that the vendor, service provider, health care provider, or ex-friend had not listened to his or her concerns. Those plaintiffs frequently believed that their complaints about shortcomings in services, products, or communications had simply been dismissed.

Had the defendants in these cases earlier offered something as simple as a sincere apology -- and had they made a concerted effort to communicate while also taking timely remedial action -- I believe the resulting quality in perception could have prevented many of these lawsuits, even if the quality in fact still left something to be desired.



New Proof of the Power of Apologies

The New York Times recently reported that sincere, heart-felt apologies coming from doctors, surgeons, and hospitals who made serious medical mistakes have the effect of greatly reducing the likelihood that patients will sue for malpractice. Further, patients who settle out of court are often willing to accept lower settlement payments than when doctors become defensive and deny what happened.

"Deny and defend" is the advice that malpractice lawyers and insurers typically give to doctors in the U.S., according to the Times. Studies that show that as few as 30 percent of medical errors are ever disclosed to patients. Yet because malpractice claims have helped cause medical expenses to skyrocket, drastic changes in approaches to handling these high-stress situations are sorely needed.

Doctor writing a prescriptionAccording to the article, two years ago, the University of Illinois Medical Center initiated a program of openly acknowledging and apologizing for its medical mistakes. Since then, the number of malpractice filings against the center dropped in half. And in 37 cases where the hospital acknowledged a preventable error and apologized, only one patient has filed suit.

In one patient's situation described in the article, "the doctor was completely candid, completely honest, and so frank that . . . all the anger was gone." This apology also helped settle the case for a significantly lower amount.



Creating a Perception of Seamlessness

To help ensure the continuity of our customers' perceptions, we need to create consistently pleasant experiences in every interaction each person has, from visiting a Web site or bricks-and-mortar location, to asking for more information, to buying products, to receiving shipments, to interacting with the actual products or services, to asking for help, and so on.

Consider this very important point: People perceive a series of interactions with your organization and offerings as one cohesive experience -- as if everyone and everything represents threads in the same seamless piece of woven fabric.

Piece of woven fabricCustomers don't care whether behind the scenes, your business is spread out all over the world, or whether individual departments consist of contractors or employees, earthlings or aliens. Whenever customers call technical support representatives, for example, they expect them to know all about the features advertised on the Web site that are supposed to be in the product.

So, if there is any type of communication disconnect, you might be able to explain it to yourself, but there's no logical explanation for it in your customer's mind.



Prescriptions for Boosting Quality in Perception

These important findings show the power of apologies and candid communications in influencing the perceptions of clients, customers, or patients. To make sure you're not overlooking potential ways to create quality in perception, consider:

1) Special courtesies that can set your offerings apart from your competitors'
2) Your ability to listen to and handle complaints quickly and diplomatically
3) Your willingness to be honest with clients about problems and shortcomings
4) Clear, prompt, and courteous communications that convey consistent details

Remember that quality in perception is not a substitute for quality in fact. But it can go a long way toward minimizing customer and client dissatisfaction, as well as powerfully reinforcing stellar quality when you ultimately deliver it.

Copyright 2008 Adele Sommers

The Author Recommends

Insights on Customer Perceptions from Dan Kennedy

"In looking at all the available research data about customer and client behavior, we found that on the average a satisfied customer will tell about three other people about his satisfaction with a particular product, service, place of business, or company. . . .

"Consider this little math game. If one happy customer creates three more, who each create three, who each create three, who each create three, who each create three, who each create three, you've got 2,217 customers. 

"This story has a flip side though. The same research indicates that on the average a dissatisfied customer gripes to eleven other people. This shouldn't be surprising. Bad news or negativity seems to spread faster and farther than good news. When you're irritated, annoyed, or disappointed with a business you probably tend to tell that story to a lot of people, too. 

"This negative or critical word-of-mouth advertising . . . can stop people from doing business with a company who might otherwise have done so. If you want to think about this in sheer numbers, it only takes one dissatisfied customer to wipe out the positive effect in the marketplace of four satisfied customers. 

"All this only serves to reinforce the obvious... it's very desirable for you to do everything possible to insure that [your] customers have satisfactory experiences whenever they call, come in, or transact business."

-- Excerpted from "Your Customer's Perception IS Reality," by Dan Kennedy

About the Author

"Straight Talk" Special Report
"Straight Talk" Workbook

Adele Sommers, Ph.D. is the author of "Straight Talk on Boosting Business Performance" -- an award-winning Special Report and Workbook program.

If you liked today's issue, you'll love this down-to-earth overview of how 12 potent business-boosting strategies can reenergize the morale and productivity of your enterprise, tame unruly projects, and attract loyal, satisfied customers. It's accompanied by a step-by-step workbook designed to help you easily create your own success action plan. Browse the table of contents and reader reviews on the description page.

Adele also offers no-cost articles and resources to help small businesses and large organizations accelerate productivity and increase profitability. Learn more at LearnShareProsper.com.

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