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Customer Service

Your Bad Customer Experience May Be A Feature, Not A Bug

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About a month ago I bookmarked a post Seth Godin had made about customer service. Since it is a little longer than usual, I waited until I had the time to come back to read it.

Now I sort of wish I had read it earlier because it pretty much runs counter to every customer service best practices article I have ever read and provides a lot to think about.

Essentially he says there are different types of customer service and a company should own the type they practice rather than pretending they are striving for something they ain’t.

Customer service is difficult, expensive and unpredictable. But it’s a mistake to assume that any particular example is automatically either good or bad. A company might spend almost nothing on customer service but still succeed in reaching its goals.
[…]
Organizations don’t accidentally run ads, don’t mistakenly double (or halve) the amount of cereal they put in the box. They shouldn’t deliver customer service that doesn’t match their goals either.

and at the end of the post [my emphasis]

Every single person who makes budget decisions, staffing decisions and customer service decisions must to be clear about which strategy you picked, needs to be able to state, “we’re doing this because it’s congruent with what we say customer service is for.”

Obviously, you can mix and match among these options, and find new ones. What we must not do, though, is plan to do one thing but then try to save time or money and do something else, hoping for the results that come from the original plan without actually doing it.

Customer service, like everything an effective organization does, changes people. Announce the change you seek, then invest appropriately, in a system that is likely to actually produce the outcomes you just said you wanted.

Between those two passages I quote, he points out ten different uses of customer service. There are some most of us aspire to. There are some that we complain about.

We read a lot of articles about how businesses need to engage with customers. So when we have an unsatisfying interaction with a company, we may complain about how they did not take the opportunity earn our loyalty. But as Godin points out, they may be reaching their goals without interacting with us in the way we want them to.

As customers, we may be like the school kid who says, I am really nice, helpful and loyal to them, why won’t they like me? Liking you may not be important to their goals.

We all probably assume this is part of airlines’ calculation, but reading Godin’s post you realize there are a lot of other companies that have decided they are doing just fine without doing much more.

My suggestion as you read his post is to take a different approach than you might normally.

Instead of thinking about all the things you need to change about the way you do business in order to meet customer expectations, be honest and consider whether the way you handle customer service isn’t just the way you want it after all.

If it isn’t the way you want it, consider what approach would fulfill your vision of success rather than what approach the articles you read say you should be using.

Whatever philosophy you adopt needs to be inline with your philosophy on programming, education, pricing and operations. Any misalignment will be apparent.

You can’t change your pricing in an attempt to attract under served audiences but have programming, education and operations oriented to serving a different demographic.

Likewise, you can’t aspire to certain goals without directing training and funding to support it.

Once you have decided what your philosophy is and what resources you can afford to direct toward accomplishing it, then you need to own that reality rather than pretend to be doing something else.

Process Knows Its Limits

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A post on Drucker Exchange, When Process Is a Prison, got me thinking about ticket office operations. I am sure the content of the entry could be applied to a hundred things that happen every day in arts organizations, but that is what bubbled to the top in my mind.

“Procedures can only work where judgment is no longer required, that is, in the repetitive situation for whose handling the judgment has already been supplied and tested,” Drucker wrote in The Practice of Management. “In fact, it is the test of a good procedure that it quickly identifies the situations that, even in the most routine of processes, do not fit the pattern but require special handling and decision based on judgment.”

I pretty much started the trajectory of my arts management career in the box office a couple decades ago. Since then the rules governing exchanges, returns and other transactions have seemed to move from matters of policy and procedure to matters of judgement. These days having a ticket office manager you can trust to make good judgments on behalf of the organization is as, if not more, important than their technical ability to troubleshoot the computer system you are using to sell your tickets.

Granted, box office operations are probably technically more a matter of policy than procedure, but Drucker’s general sentiment applies.

The ticket office has always been viewed as the first place of contact with customers where good manners and efficient processing of orders is prized. But now customer service interactions are almost more important than the product being sold, given customer expectations and their ability to almost instantly report their disappointment to 1000 of their closest friends.

Consistently providing good service doesn’t necessarily mean treating everyone equally because everyone views their situation as special and may expect you to have some degree of awareness of those circumstances. This is why customer relationship management (CRM) software is viewed as so important by businesses at large (though you wouldn’t know it when you call your cable or cell phone provider). Many arts organizations don’t have the resources to support sophisticated CRM software so human judgment and good note keeping becomes all the more important for them.

Perhaps my perception of the change is based on the fact that I have gradually moved into a position of generating the policy rather than enforcing it and I am a big softy. But I suspect there are many others who will confirm that things have changed from the 70s and 80s when it was “No Refunds, No Exchanges, No Exceptions” for non-subscribers. Now it is more akin to “No Refunds, No Exchanges, Except for the Exceptions.”

As Drucker is quoted, the best procedure recognizes those times that are exceptions to the procedure. I think that some times changing environment requires you to recognize that it is no longer useful to maintain set policies and procedures in favor of general guidelines and good judgment.

Info You Can Use: When It Is Okay To Punish Your Customers

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A couple weeks ago I wrote a post in which I decried the practice of many companies who offer better rates to new customers but provide no reward to long time customers.

Right on cue the next day, MIT’s Sloan Review published a piece that analyzes the transactional relationships people have with different types of business and discusses which can get away with treating long term customers poorly.

They acknowledge the fact that it can often be more costly to find new customers than to retain the ones you have, but note this is not true for all types of business. They use examples of cable and cell phone companies who provide services that are difficult to change versus a highly variable situation where someone may prefer to shop at Lowe’s, but will often purchase from Home Depot because it is move convenient to the drive home.

Lowe’s and Home Depot have to constantly work to retain customers and attract new ones while cable and cell phone companies can get away with raising rates mid-contract. The article authors say even if you are getting an offer to buy a new phone at a discount from your current service provider, it isn’t as sweet a deal as a new buyer is being offered.

Despite using the common terminology of “subscriber,” performing arts organizations don’t have the same luxury to treat current customers poorly that cable and cell phone companies do. I am sure it is no revelation that performing arts organizations operate in a far more competitive environment.

While depressing to contemplate, it was interesting to read the rationale that punishing customers makes good business sense.

Some customers are worth more than others and some customers are a greater drag on resources than others. Even if you don’t act on it, cultivating the ability to identify what policies are causing you to lose money can be valuable.

There might be some good lessons for arts organizations here. For example, some banks have started charging people to use lobby services and for receiving statements in the mail and made using ATM and receiving statements electronically less expensive because it costs more to maintain a physical presence and pay people.

Perhaps performing arts groups should make it more expensive to buy tickets in person versus online, rather than vice versa, as is the case in many places these days.

On the balance sheet, the answer is clear. However, since cultivating relationships are often viewed as the most important function arts organizations can fulfill for their community, perhaps it is better not to provide disincentives to personal contact.

But is that relationship something your customers value or is it something you have decided they value?

You should know the answer to this because if they do value good relationships and service, that is more expensive than just having someone at a desk. The training and retention of staff who provide good service and the database to support them requires a greater investment than just having someone available. If people don’t really value personal service, then maybe it is wiser to push them toward online ticketing and reduce ticket office staffing.

So here is the conclusion the authors came to:

“Specifically, we discovered that, most of the time, rewarding and acquiring new customers creates the most value. Under select circumstances, however, attention should shift to the retention of existing high-value customers….In markets that have a high degree of both flexibility and value concentration, companies should focus on rewarding their own customers — in particular, their best customers.”

The examples they use of high flexibility and value concentration is retail shopping, rental cars and airlines where people have many options to choose from and return customers will often spend greater amounts than just casual shoppers. They suggest reward programs for high frequency customers.

I translate that over to the arts as trying retain and reward subscribers and donors. The arts already acknowledge that these groups are high value individuals and need to be provided preferential treatment. So we have been doing something right all along!

Except that the authors don’t really address the question of what to do when your customer base is aging out. The article really just deals with optimizing your income from customers based on where your product/service falls on the continuum of flexibility and value.

There is an assumption that you have a product for which there is a demand. They address the question of how to treat your customers when you get them, not necessarily how to get them.

It is encouraging that the article validates the basic model many arts organizations use with their customers. The challenge that is still before us is offering a product people want and an rewards program that they value.

Stuff To Ponder: Subscriber Rush Tickets

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Since I have started a new job I am in the process of evaluating every document, process and interaction my organization undertakes. One of those areas is customer service, of course.

For that reason, an article I came across via The Drucker Exchange is really resonating with me. In a blog post titled, The Dark Side of Customer Experience, Monique Reece opens with a joke we can probably all relate to.

The longer version is in the post, but basically a guy dies and is shown heaven and hell and given a choice between the two. On his visit to heaven, everything is sedate and lovely. Hell is a veritable Mardi Gras party. After the doors close on Hell, the guy tells St. Peter he chooses Hell. The doors open and it the scene is the stereotypical hellish landscape.

Upon wondering what happened to the party scene, the man receives the response “Well,” said St. Peter as the doors closed. “The first time you came to visit you were a prospect. Now you’re a customer.”

Reece cites some of my biggest pet peeves– the introductory rate that rewards new customers and makes the person who has been loyal for 10 years, enduring price increases, feel like an idiot for sticking around so long for no recognition or reward. As Reece notes, there is actually more of an incentive to separate your relationship and then renew it.

The performing arts version of this is giving cut rate discount tickets to last minute purchasers, suggesting a certain amount of foolishness on the part of those who planned and purchased ahead of time. Some arts organizations sell large amounts of rush tickets at rates lower than those of subscribers who have committed to many shows in advance.

It just occurred to me moments ago, why don’t performing arts organization offer Rush tickets exclusively to those who have already purchased two or more tickets?

This would have multiple benefits 1- It rewards people who committed in advance; 2- It turns those people into recruiters for your show when they invite their friends along; 3- It gets people you already have a relationship with paying closer attention to your emails or social media account that you are using to communicate this discount, providing an opportunity to get them excited and mention other shows.

My suspicion is that attending a show on a half price ticket thanks to two people who purchased weeks in advance is a better model of behavior than attending alongside two other people who also decided to attend because tickets were half price.

It probably also reinforces many elements of the advance purchasers’ self-image if they know their friends were only able to attend because they were stalwart supporters of the arts organization.

The only real problem I can see with this idea is reserved seating. Offering rush tickets in this way appeals heavily to a social element which is compromised if everyone can’t sit together.

Granted, it illustrates the appropriate outcome associated with paying half price on the day of a performance versus full price in advance. Still the emotional disappointment of not being able to sit next to ones guests could supplant the acknowledgement of this logical consequence.

General admission events are good to go though.

This is not the direction I intended to go in when I started this entry. I like this result better.

Would You Know If Your Candy Machine Was Broken?

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As you might imagine, there are a few vending machines scattered around our campus. The one behind our building get cleaned out regularly when we have rental groups with large numbers of kids or our own shows are in tech week.

A number of months ago, whenever I would try to get a granola bar from one end of a row, I got a message to make another selection. A little experimenting showed this was the case for a few of its neighbors. Across campus near the administration building there is a machine in which a whole row returns the make another selection message.

I usually don’t see the guy refilling the machines or when I do, I am generally in a rush. But I finally said something to the guy about a month ago. He thanked me for the report and said he would tell the technician to take a look at it. Then he commented that he had noticed on his computer inventory that those items weren’t selling.

It is people like him that make me really nervous.

Part of the reason I finally said something to him was because I started to realize he had no real investment in his job. The situation had existed for about 6-9 months.

Even if he wasn’t the same person who was tending to the machines when the problem started, there were many signs one existed. Not only was the fact that part of the machine broken conspicuous when they were the only things ever left when students and kids literally emptied the rest of the machine, but the items that weren’t selling were actually noticeably sun-bleached. And of course, he admitted his inventory was telling him that items in both machines never sold.

Wouldn’t you suspect a problem if an entire row of candy bars in a machine never sold, yet the Snickers were moving well in the sites around the campus?

The reason people like him make me nervous is that I start to wonder what problems I am not being told about. The vending machine guy may not be paid well and doesn’t feel like he has any incentive to make sure the machine is producing revenue efficiently. I begin to wonder if people working for me might feel something similar. My concern isn’t so much about revenue maximization as ensuring patrons, renters and others who use the facility don’t have a negative experience.

One of the most difficult tasks businesses offering services seem to have these days is training people to be aware of problems and be proactive about either attending to them or reporting it for further action.

I generally feel like I have a good staff that pays attention to these things. This afternoon my technical director noted that the dust from nearby construction had infiltrated our ticket office and the room needed to be cleaned. But there have been times when I have noticed a glaring problem and wondered why none of those who pass that way regularly, including cleaning staff, students and faculty, attended to it in some manner.

Of course, a lot of the responsibility resides with those who train and supervise. It is incumbent upon them to discuss the values of the organization, mention the types of behavior that is expected and outline the available courses of action.

It is also important that those courses of action be viable and legitimate. If a problem is reported and results are not forthcoming, there is less incentive to report problems in the future. The same if the resources to effect the solution are rarely available or there is a perception that making the extra effort on behalf of the organization is not valued.

If a solution can’t be effected immediately, the timeline for the response should be communicated clearly–e.g., “The leaky toilet will be replaced when the building is closed for the summer, in the mean time, this is the temporary stopgap solution we suggest.”

In the non-profit arts, frequent communication about what sort of environment and experience the organization wishes to provide is important given the large number of volunteers that assist with so many tasks. Even long time volunteers may forget the overall vision because they are not exposed to it as consistently as regular staff and they may volunteer at a number of other places, each with its own vision of things.

Most of all, supervisors and other leadership need to emulate the values they espouse with their own actions. If they aren’t excusing themselves to assist someone who looks lost or bending over to grab a candy wrapper blowing by, it is more difficult to get others to do the same.

The Customer Is Sometimes Very Wrong

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Earlier this month, Thomas Cott’s You’ve Cott Mail had some stories about dealing with divas. While there are a few divas I have had to deal with, I actually feel like I have encountered fewer abrasive personalities in the arts over the last few years than when I was younger. It may just be that I am more confident now than I was in the early part of my career and I have enough experience dealing with such people that I either 1) identify them immediately and avoid becoming involved in the first place or 2) identify them immediately and take preemptive action to diminish opportunities for conflict.

I have actually had the occasion to pull customers aside and tell them I won’t tolerate them treating my staff in a certain manner more recently than saying the same to an artist. Of course, as I mentioned, looking over a touring artist’s contract you can often prepare for potential problems months prior to their arrival. You really don’t know if an audience member/renter will cause a problem until the moment it occurs.

Which is not to say you can’t channel your inner boy scout and be prepared.

Cott cites a blog entry by Seth Godin who mentions that it is tougher for people to get away with being a jerk because technology allows us to both learn about problematic people more effectively and identify alternatives.

While this is true for the providers of services, this is also true for the consumers. Performers can find out about bad experiences others have had at different venues and either avoid them or take steps to ensure their needs are met.

But it is also true for our customers. We often don’t talk about using this side of technology. We celebrate the fact that technology allows us to offer better customer service by recording customer preferences, noting how we disappointed them in the past so we can do better in the future and rewarding them for their record of loyalty. This is as it should be. Our focus should absolutely be on providing better service.

However, we should also value the contributions of our staff, collaborators, partners, etc, to our success and make an effort to provide a positive work environment and experience. Corporations apparently need to spend billions paying bonuses to retain the top talent, it behooves us to spend a little time making notes and taking steps to retain valued employees.

The same technology that allows you to remember your customer’s preferences so that they don’t have to reiterate them at every interaction also allows you to note that they give your staff a hard time, press them with heavy demands when renting your facility due to their lack of preparation or frequently challenge their credit card charges.

Making notes allows you to address these issues in advance of the next encounter in an effort to improve your relationship and experience–and take appropriate action if the changes don’t emerge.

Obviously, most companies aren’t going to get into discussing negative experiences with their customers over the internet the way customers will about them. (Though you may be sorely tempted!!!) However, when I wrote a few of these examples, I had particular instances in mind. The situation with people challenging their credit card statement in a serial manner has actually happened. Being on a ticketing system which shares a database of names and addresses allows us to serve our customers without repeatedly asking them to wait while we enter their personal information and it also allows us to provide warnings to colleagues about who is habitually trying to get out of paying for their tickets at venues around town.

The problem with flagging people for negative interactions is that it can be abused to take revenge for petty slights. Which is one of the reasons few companies encourage these sort of notes in customer records. Not to mention the records might be subpenaed or hacked so you don’t want to write anything you wouldn’t say in public.

But for those egregious cases where people make your staff miserable, you owe it to everyone to keep proper records. Time makes memories fade and problems don’t seem as serious later on…until the person does something to remind you why you didn’t want them back. In non-profits there is a lot of staff turnover so good notes can help smooth transitions by maintaining a portion of the organizational memory.

Good notes can help you strengthen your relationships with the majority of your customers by identifying their needs and preferences, but also prevent you from letting the minority of your customers divert time and resources more constructively spent on the bulk of your customer base.

Goodwill Benefits Of The Arts

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In the course of this blog I have posted about great customer service experiences I have encountered. I have also mentioned some superlative performances to which I have been witness. Never before have I had occasion to discuss how a great performance has earned me extended good customer service.

Last winter we had a flamenco group perform in our theatre. We had a great audience and some really good outreach events, one of which earned us the commendation of a program officer at the state arts foundation. For this alone, I would be happy.

By some confluence of events, the group and the guest services manager at the hotel we use really hit it off. I am not sure what exactly happened. The group asked us to set aside tickets for about six of the hotel staff. This doesn’t happen all the time, but it isn’t completely rare. In fact, some times I have given comps to shows front desk people have wanted to see.

This time was different from the past. In the course of the group’s stay, the front desk and they really bonded. When the group returned to Spain, they sent the guest services manager a gift. When I met with the guest services manager last week to talk about our room needs for the coming season, she mentioned that she was planning to visit the flamenco group during a vacation to Europe.

As I write this, I almost feel ashamed to admit that I have benefited from this burgeoning relationship. I haven’t pressed any advantage, but the good will the guest services manager has felt has facilitated my operations since then.

Because of flight schedules, just about every group we had perform since last winter has arrived before noon and the check in time was 3:00. In the past we were told that the hotel would try to fit them in, but it was likely they would have to wander around for awhile until the rooms were ready. This past Winter and Spring we were told the first rooms available would be theirs. No one ended up having to wander around and kill time until the rooms were ready.

As a result, the artists were more settled and rested than in the past. They were able to arrive at the theatre at the appointed time and didn’t feel rushed to set up. I can’t say they performed any better than they would have had they been obliged to wait a few hours before they checked in. I do think they left having a more positive view of our organization than they might have.

They had no idea they were the beneficiary of the good will generated by those who preceded them. From the tenor of my meeting with the guest services manager, it is likely the benefits will be extended to artists in our next season as well. Hopefully none of them will cause things to sour.

To me this is one of the intangible benefits the arts bring to the community. If I was just another company bringing a lot of business to the hotel, they would certainly make an effort to ensure all our needs were met. I don’t know that they would be as personally invested in my organization if our entire relationship was based on commerce. How we might benefit from this is a lot harder to measure than economic or even intrinsic benefits. (Though accountants will try to figure it out for you.)

Bidding to Be Bumped

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You may or may not have heard that Delta Airlines has a new process by which the airline allows passengers to bid how much they would be willing to accept to be bumped off an over sold airplane. While I suppose this is an improvement over the old process by which they factored in when a person bought their ticket and how much they paid for their ticket when the airline decided who to bump in the absence of volutneers, the move seems to announce they are giving up any pretense at offering customer service. It seems like they are announcing their intent to overbook and that if you fly with them, you take your chances. Granted, every other airline may hold to the same philosophy and Delta is just being honest and open. I am just saying that it is bad customer service and public relations.

I can’t find who said it, I believe it might be Malcolm Gladwell or Daniel Pink, but I have seen someone cited a number of times in recent months that any policy decision which is made to benefit employees/your company is not a customer service decision. This seems especially the case here as it appears Delta is counting on a little game theory to reduce the amount in travel vouchers they give out by having people bid secretly against each other.

The basic thing I think they need to ask is- does anyone really come to the airport and go through full body scan/pat down at security with the intention of not flying? The fact that there have to be compulsory bumps can attest to the fact people generally don’t. I am sure someone will do an analysis of the most overbooked flights and the best bidding strategies and then go on the Today Show to talk about how someone can fly around the country virtually free if their travel plans are flexible enough. Most of us will be arriving at the airport with the specific intent to fly that day. Offering money doesn’t build a relationship with a customer, even when it is done openly and voluntarily at the gate.

Heck, do people show up to a performance willing to be turned away or have a disappointing experience even though they don’t have to arrive an hour early to get through security? Does getting your money back improve your relationship with a performing arts organization even if the parking was free and easy to find and the cost of dinner and a babysitter weren’t factors in the evening?

Perhaps other performing arts venues have changed their approaches, but even though I know not everyone will show up to a sold out show, I don’t oversell the house. Regardless of whether it is a reserved seating or general admission event, I always have a few seats held back to use at my discretion to resolve problems. I suspect there aren’t many places that would regularly oversell their houses. This is not just because of fire regulations, but because unlike the airlines, many places view performance tickets as a contract to provide a service. You can refuse people entry, but selling tickets you have no intention of honoring can be considered fraud. It is also pretty bad public relations so most of us avoid it even if we have no idea if the state would consider overbooking to be fraud.

My point isn’t so much to pillory the airlines. You could read enough of that over the last 10 years to have gotten your fill of it. I just wanted to provide a reminder about customer service being about relationships. Something that can’t be improved by providing an easier way to inconvenience people. Voicemail putting people on hold did not improve the experience over having a live person doing the same. This is something to remember when you consider emulating the airlines and their fluctuating pricing schemes. Yes, it may provide an improved yield per seat, but if your organization has been working to improve its relationship with the community, a more opaque pricing system is not going to accomplish that.

On Refunds and Exchanges

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So I made a big mistake this week with a reception invite. There was actually a letter missing from the title of the show on the cover of the invite. Now in my defense, about five other people missed it to. I had originally assumed that I messed it up by accidentally brushing the space bar when I was reviewing the work on my computer yesterday. Then I went back and looked at the versions I emailed out to the various parties involved, including the show creator, over the course of two weeks. It was missing all that time and no one caught it. I suspect part of the reason is that the cover of the invite was inverted so that it would fold into the correct orientation on the finished product. (Also, I think the show might be cursed. The show creator made a mistake on his first run of invitations a year ago when he was inviting his donors to a preview of part of the work.)

In any case, I sent the corrected version back to the printer and told them if they were having a sense of deja vu, it was because I had made a mistake on the first run. I got a call from the print shop and they said if I brought all the flawed pieces back, they would only charge me 50% of the original cost on the reprint. This was happy news to me since I resigned myself to putting the reprint on my credit card as it was my fault. I think it is a great policy on the part of the shop because they earn good will from the customer and they can be sure the paper is recycled rather than tossed in a dumpster.

As I usually do when I encounter an example of good customer service, I wondered how this policy might be applied to the arts. My first thought was in regard to exchange fees for tickets. Many organizations either do not exchange, have a $2-$5 fee for exchanges or only allow subscribers to exchange. I don’t have any data on how well any of these policies are received by audience members who want to change the performances. I suspect it is largely a function of the communities and the dynamics of the relationship each organization has with its audience base. While I think no exchanges or a fee provides an incentive to make a firm decision, it can be difficult to discern if the ticket office made a mistake or to demand people pay it when an accident/emergency is going to prevent their attendance. Deciding to do an exchange or refund is so often a subjective judgment call that having a fee can exacerbate the frustration of those who feel they were unjustly denied.

Part of the problem is an empty seat is not a ream of paper. Yes, an empty seat is lost revenue once the show has started but that is a more abstract concept for people than the ream of paper now spoiled by a mistake the consumer has made. The whole concept of a performance as a perishable commodity which you are exchanging money for can be tough to grasp if there are many opportunities. My dentist can fine me for breaking my appointment because he knows I will have to come back sooner or later when my teeth start to hurt. (Just for the record, I am faithful to my 6 month appointments.) Occupying his chair is something I feel I need to do. Not always the case with some performances.

In these days when people are making and changing their plans at the last minute, do no refund/exchange policies or fees make sense? Do they provide a disincentive to attendance in the first place? There are a number of organizations who experiment with flex passes, some of which allow you a set number of tickets to any performance you want to see. You can come once with 6 friends, come 6 times to the same show yourself or go to 6 different shows yourself. Seattle Rep has a package like this called Player Pass. They even have a Today’s Pass where you call the day of the show to get the best seats. Of course, if the show is sold out, you can’t get in.

If you only have one night performances and many of these shows don’t have similar ticket prices, then it can be difficult to institute a program like this. What I like about these flexible programs is that it puts a little more of the responsibility back on the ticket buyer. I am good at my job because I excel at advance planning. In the face of indecision and vacillation over weekend plans, I want to grumble, “geez, make a decision already!” With these flexible passes, if a person waits too long and the show they want to see is sold out and they don’t value the remaining shows in the season as much, then their subscriptions have lost a little of that intangible value I spoke of earlier.

Of course, the annoyance factor for me would be about the same whether they were wheedling and begging to get into a sold out show or vacillating about going to a show in advance. I may feel a little smug about having a sold out show, but I always hate having to turn people away from great shows for reasons that have nothing to do with ticket revenue. Flex passes don’t alleviate your worry on Wednesday about whether people will come to see the show on Friday because few have committed to any weekend plans yet. Well sure, with the flex passes you have already collected some money, and that is comforting. But performances were meant to be seen, the more the better.

Why Don’t You Want To Talk To Me?

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I often write, as do so many others, about the importance of establishing a relationship with your audience/donors/community. However, according to a blog post on the Harvard Business Review, our customers may not want a relationship with us. Well, not with arts organizations specifically, but rather with businesses in general.

The post, “Why Your Customers Don’t Want to Talk to You” begins by asking,

“Have you ever walked into an airport, seen that there is nobody in line at the check-in counter, but still made a bee-line for the self-service kiosk? Better yet, have you ever waited in line for an ATM machine even though there is nobody in line for the teller inside the bank?

If you answered “yes” to either of these questions, you’re not alone. Most customers these days demonstrate a huge — and increasing — appetite for self-service, yet most companies run their operations as if customers prefer to interact with them live.”

The authors cite data showing that businesses assume their customers prefer live service twice as much as self service, but that customers are “statistically indifferent about this … By and large, this indifference holds regardless of their age, demographic, issue type, or urgency.” The authors aren’t sure why this is, but offer a hypothesis

“…maybe customers are shifting toward self service because they don’t want a relationship with companies. While this secular trend could be explained away as just a change in consumers’ channel preferences, skeptics might argue that customers never wanted the kind of relationship that companies have always hoped for, and that self service now allows customers the “out” they’ve been looking for all along. “

But what was really helpful about the article were the comments about customer expectations and when people may prefer one type of interaction over the other. And if you don’t believe me, scroll down and read the comment left by Matt Dixon, one of the article’s authors who says as much as he enjoyed writing the post, he is enjoying the comments more.

The reasons why people prefer not to deal with a live person run the gamut- not wanting to be upsold, incompetence/poor customer service from staff, wanting to take time with decision making, not feeling pressured to justify choices to a machine and having already done research on line.

The plus side for humans is avoiding the maze of choices on voice mail systems or having a problem that doesn’t seem to fit the options provided. The human better not sound like they are proceeding through a menu of choices! And of course people aren’t entirely convinced technology is dependable. Two of the calls I fielded today were questions about whether orders had gone through.

One comment by a poster named Will Kenny caught my attention.

“Much of the problem is how companies have defined “relationship,” and many of them simply meant “some way to stay in contact with the customer, to sell more stuff.” In other words, a “relationship” is formed, in these companies, when the company has found a way to continue talking to the customer.”

I felt a little guilty because often that is pretty darn close to the subtext of what we mean when we talk about developing a relationship with our community. It is tough to get past that because we are running businesses and have bills to pay after all. We probably have much more sincere relationships with our next door neighbors than we do with our customers because we babysit each other’s kids and make chicken soup when someone is sick. But those same gestures create a positive impression about the organizations we work for in people’s minds too. And those type of sincere gestures on the corporate level –including just plain listening well–can help strengthen organizational relationships, too.

Arts organizations are in a medial position in all this. So much of what we produce can be researched using other sources. You can read scripts, watch videos, listen to recordings and read reviews. People can avoid contact with us if they like. However, because of the intimidation factor involved with the arts, we are also called upon to be experts, and compassionate experts at that, who can explain without alienating. We save money by having technology handle information requests well and replace a real person. But we also save by having knowledgeable and skilled people who answer the questions. I think there is something to be said for small organizations where some times everyone ends up grabbing the phone because it forces everyone to be able to speak confidently about matters outside their immediate area.

Acknowledgement from Unexpected Quarters

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Last week I received an email wishing us a Happy Thanksgiving from one of the B&Bs we stayed at in Ireland this past summer. Thinking back to my discussions about developing emotional relationships with customers over the last few weeks, I thought that was a particularly clever gesture.

A lot of social media software tracks your friend’s birthdays and anniversaries, so I wouldn’t be surprised to receive an email for that occasion. These folks are apparently paying attention to holidays that have some significance in the country of their former guests. I received plenty of domestic Thanksgiving greetings and wishes, but it is the one from Ireland that sticks in my mind because you don’t often receive acknowledgment of an occurrence which holds little significance to another.

I have no plans to return to Ireland in the next year, but there is a pretty good chance that should I do so in the next five years, I will remember this gesture as I recall my last visit and make plans to return.

That You Care Is What Matters

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Yesterday I alluded to the research findings presented by Fleming and Asplund in their book, Human Sigma, that how you handle customer problems is more important to your relationship with them than actually solving the problem. (I should mention, HumanSigma is a program of Gallup so they have a lot of experience in surveying.) They say that “customers who encounter a problem and are extremely happy with how the company handled the problem often have levels of emotional attachment equal to—and in some cases exceeding– those who have no problem at all.”

The Means, Not The End That Matters
They say that customers don’t expect a business will always resolve a problem to their liking, “but they do except the company to handle them in an exemplary way.” There is also the issue that not everyone has the same expectations of a solution to contend with. They use the example of receiving an undercooked meal at a restaurant. Some people may be content with having the meal cooked properly and the offer of complimentary dessert. Others may feel the whole meal should be free. You are likely to be more successful creating good procedures to address problems than you are at creating solutions that will please everyone.

They have found that people who have a high emotional investment are likely to give a company the benefit of the doubt when a problem arises viewing it as an honest mistake or even pondering how they may have contributed to the situation. Those with low engagement are more likely to place heavier blame on the company for the problem making it more difficult to please them.

Steps to Resolution
Fleming and Asplund suggest six steps that should be part of resolution procedures.

First is to acknowledge the problem exists. Second is to apologize. They are quick to add that apologizing is not accepting the blame. Lawyers warn clients not to apologize out of fear it can be used against them in lawsuits. But according to a NY Times story, policies of apologizing have cut malpractice suits and legal costs for the University of Michigan and University of Illinois hospitals. People who feel wronged view the refusal to apologize as a lack of empathy for the situation and so they escalate matters in an effort to gain acknowledgment.

Good resolution processes can actually strengthen a relationship with people who have experienced a problem. According to Fleming and Asplund, people who have encountered a problem and have been extremely satisfied with the way a bank handled it were 51% full invested in the bank versus 26% full investment by people who never experienced a problem. They say that apologizing validates a person’s trust in the company and reinforces their value as a customer.

The third step they suggest is “Take ownership of the problem and follow up, even if the problem is unresolved.” Promising to follow up by a certain time or date is better than a vague “as soon as possible” because the customer may feel they have to continue checking in on your progress. Even if you haven’t solved the problem by the appointed hour, it is better to contact the customer with that information than leave them wondering or in the position of having to track the contact person down again.

Suggestion four is to handle problems on the spot rather than bumping it to a supervisor. This means empowering front line service people to respond with a solution appropriate to their position. If the customer is not satisfied, then someone higher in the chain can be contacted. They use the example of a hotel chain that generally had managers resolve problems with free nights’ stays. Among the steps they took were to empower housekeeping to offer gift baskets, robes and bouquets of flowers and only refer a problem to the manager if a person was dissatisfied. Because they weren’t defaulting to free accommodations to resolve their problems, their costs dropped and satisfaction rose.

Their fifth suggestion is have a process which quickly brings the problem to the attention of a supervisor or manager. The mention a logging system which alerts managers if a problem remains unsolved after a certain period of time. Most arts organizations are small enough that a computerized system is not needed to communicate complaints to other staff. Just the same, there is plenty of opportunity for the complaint to lie dormant on someone’s desk and never be brought to a supervisor’s attention so the importance of communicating a complaint needs to be emphasized. The authors warn to be wary that your system not make people feel their responsibility in addressing complaints ends upon handing them off to someone else.

The last suggestion is to leave people better off than they were before the problem occurred. Even if the solution is not the one they desired, they should still be in a better position than they were before. Presumably this means gaining intangible benefits such as feeling more valued as a customer and perhaps having a specific contact person who can address future difficulties if the current problem hasn’t been completely resolved.

Business Solutions Unfair to Customers

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Emotional Advocacy
Yesterday, I started writing about the book, Human Sigma by John Fleming and Jim Asplund and as promised, I wanted to continue exploring the book today. One of the things I was happy to see addressed was the idea of the single question customer survey. I had pondered the validity using the question, “Would you recommend this company to others?” in a past entry.

Fleming and Asplund note that not only do you miss a lot of information by asking only one question, but also all advocates are not created equal. As discussed in my last entry, people can be satisfied and thus have no reservations about suggesting a company or service to others, yet they aren’t really invested in the company and may defect. Then there are those who are emotionally invested and can serve as enthusiastic promoters.

The authors don’t have any specific suggestions about what questions to pose on satisfaction surveys, likely because they urge you to “get under the hood” of customer relationships and ask about things that matter. What matters to one business may not have any significance to another.

The authors give an example of a survey they conducted at an amusement park where most of the feedback they received was negative. People complained on and on about the parking, lines, the prices, the food and the lack of shade. When they were asked if they would return, everyone said they would without hesitation. The deciding factor was their childrens’ enjoyment. Had they the same experience on a Saturday night (sans the lack of shade) at one of our performance venues, they would never come back again, but the vicarious joy they experience through their kids provides an emotional connection with the theme park.

Fairness In Interactions
Later in the book, the authors discuss perceptions of fairness and how that can feed people’s emotional investment. That section of the book is fairly long so it is difficult for me to cover all the ways interactions can be viewed as fair or not. Anyone who has worked in customer services knows that people’s preferred treatment can swing between wanting to be treated exactly like everyone else to wanting an exception made for them, all depending on their situation.

There were a few examples they gave that are recognizable as significant the arts world. For instance, subscribers and donors who have invested themselves in your organization expect preferential treatment in return for their loyalty. (The example the book gives is airline frequent flier program.) If you launch a campaign to attract new business that offers a better situation to new people than to long time customers, you run the risk of alienating them. An example that comes to mind is the low introductory rates offered on cable television packages that are only good for new accounts while you get no recognition for your long term relationship.

Another example in the performing arts world can be found in ticket exchange policies. Many organizations have a no return/no exchange policy with subscribers and donors being the only exception. As long as policies and procedures are enforced equitably, there is no problem. But once you perform an exchange for a flat tire but not my canceled babysitter excuse, then the inequity in the system is exposed. And then there are policies that are confusing to patrons from the start such as why internet and phone orders incur a service fee but walk up orders don’t.

Business Solutions Unfair
One example they give as an impediment to good customer relationships is the phone queue with the recorded message about your call being important leaving you to reconcile how this can be if the place is so poorly staffed the average wait time is twenty minutes. What the authors say about this really struck me, (my emphasis) “From the customer’s perspective, any process or system whose primary purpose is to solve a business problem rather than a customer concern is unfair.”

They also note that treating people equally can appear unfair. If your customer service staff follows the exact same scripted process with customers not recognizing that the script can’t cover all eventualities, the result may make you look incompetent and patronizing for asking questions or suggesting solutions which obviously do not apply to the situation.

Tomorrow I want to address what the book says about solving customer problems. It turns out how you attempt to resolve a problem is much more important than whether you actually solve it.

A Folding Table, A Jug of Water and Thou Sweating In The Parking Lot

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I am reading a book about customer service right now. My intention is to report some observations on the text as a whole at some point. However, I saw an illustration of one of the points made in an early chapter today. The book had noted the veracity of “time flies when you are having fun” pointing out that a well designed wait that is 30 minutes long can actually seem shorter than a poorly designed wait that is only a third as long. Because human perception is involved, you can ruin a relationship with a customer in the latter situation even though you significantly reduced their wait time.

Our campus is in a situation with many strikes against it. Budgets have been cut so staffing is down but enrollment is up adding an additional 1500 student to our commuter campus. Alas, the heretofore un(der) used overflow parking is now inaccessible due to long delayed construction projects.

There wasn’t much to be done about the parking unfortunately, but someone got organized this year and had information tables distributed about the campus with all sorts of hand outs and big coolers of water. There were also large color campus maps that someone slapped up on the sides of buildings so people didn’t have to seek out kiosks to figure out where they were.

I looked around wondering why no one had thought to do this before. People had always volunteered to serve an hour or so on the welcome committee but it was never this organized or welcoming. People stood around smiling, answering questions and engaging people who looked lost. Now there is a table identifiable as a source of information from a distance that is stocked with information—and most importantly after trekking in from that parking space in the hinterlands you stalked for 30 minutes–water to drink.

While I walked around comparing what I was seeing to previous years, I realized that tweaking your customer service up a level or two doesn’t just help your relationship with those you serve. It also sends a message to other employees about the commitment of the organization. Memos about improving service are useful and identify areas for improvement. In this case, there were no memos that went out about how things were going to be done better—it was just done.

I am obviously someone whose business it is to think about improving customer interactions so I notice such things. But I have to believe that others noticed the improvement, how it fit in the context of other recent changes and what it all says about the direction of the organization.

I also had some insight into the issue of providing volunteers with opportunities to feel they are doing important work. I have never really had much desire to volunteer for welcoming slots before. Today when I witnessed the increased effort at hospitality, I had a desire to participate next time around. (Just have to remember not to schedule sending the brochure to the printer, interviewing a ticket office clerk and starting internet sales on this day next time.) In previous years, my impression of the job was that it provided a pleasant first impression of the institution and directions to buildings. With the addition of tables, maps and water jugs, suddenly it seems like an important contribution to relieving anxious new arrivals.

We are planning a volunteer luncheon/training in a few weeks so perhaps I am in a receptive mindset on the subject. We have been thinking about how to design the volunteering experience so people have a greater feeling of doing something of value. We have been discussing increasing volunteers’ scope of responsibility and authority. I believe we also have to consider if these duties will allow them to feel they are providing a service patrons find valuable. Though certainly, people volunteer for different reasons and more authority may be a bigger motivator than being useful.

Rewarding Any Bit Of Intiative

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I have been thinking about performance awards for employees a fair bit lately in the context of our cleaning staff. Our building has three different people assigned to clean it. One guy is responsible for my office, another is responsible for the basement and another takes care of the lobby and seating area. The shop area we have to clean ourselves since there is just too much potential for the wrong thing to get tossed out.

What seems to reinforce the low status of theatre in the Great Chain of Being is that the newest person hired is assigned to clean the lobby and seating area. Yes, that’s right, the person with the least experience is assigned to clean the area in which my organization interacts with the community. I have no idea why this is but I have been cautioned against pushing too hard in getting it changed.

The technical director’s theory about why we are a training ground is that perhaps each person is expected to clean X square feet a day and it is easier to gain experience cleaning the wide open space of the lobby and aisle versus the same square footage across individual offices.

Whatever the case may be, the results are inconsistent cleaning job except in one unerring activity. I haven’t been able to get any of them to regularly dust even the most obvious spots like the tops of the banisters and the 100 foot ledge in front of the mural. I know they are instructed to keep the area clean. It just never happens as it should.

In the last few months, the building supervisor told me that the guy newly assigned to clean the basement is excellent. Given our past experience, that didn’t seem like it would be hard to achieve in comparison so I was pretty skeptical.

But I happened downstairs just before I went on vacation and saw the guy was cleaning the dirty fingerprints off all the doors. In all my time here, that has never been done by the cleaning staff. Since my return I have wandered around the basement and noticed that nooks and corners are now looking neater and spiffed up.

Finally we have a guy who sees things that need to be done and is doing it. He is also making note of things that are broken and suggesting they be fixed. This proactive approach is no small matter because the basement contains our green room, dressing rooms and dance studios. These areas get the heaviest daily use and are the fastest to become soiled. So having these rooms look good when guest artists and renters use the facilities goes some distance in creating a good impression.

I know that there are awards given out to buildings and grounds people. While I can’t submit a nomination, I am resolved to talk to someone who can about putting his name in. As I have been thinking about doing this, it occurred to me that saying someone got the award for excellence in janitorial service at the ceremony doesn’t really provide an example for others to emulate. I’ll admit, getting an award for wiping the finger prints off doors doesn’t sound like a behavior you would strive to model either.

I am discovering that taking that sort of initiative is a rarer thing than I imagined among people at large. Janitorial staffs are hardly deserving of being singled out in this regard. When I was growing up, I thought only people who performed extraordinarily and heroically got awards. Now I realize there is a great deal of worth in doing the mundane very well.

In fact, I think this is one of the lies our educational system perpetuates along with the destiny altering power of your permanent record. Throughout your childhood and higher education, those who have made the most extraordinary achievement receive awards. Certainly, there is value in this because you don’t get to the moon by mediocrity. But generally once you graduate and are in the real world, the grades you got in school are an invisible factor in relation to how valuable you are to your company, family and friends.

There is certainly no substitute for brilliance, but making the choice to take the initiative is within the power of pretty much everyone. In school, it is often the people who added hard work to a special quality who get rewarded. The vast majority were never in the running despite hard work because they lacked that special quality.

It is becoming increasingly clear to me in the professional setting, it is extremely important to reward those who make the choice to go beyond the minimum expectation because this is a reward the vast majority can obtain on their own merit. I am not referring to a feel good reward for everyone, I am talking about providing incentive in order to receive a higher standard of service that everyone can provide.

I will say, there is a part of me that is disappointed that I even have to suggest this. I mentioned earlier that I am recognizing that doing the mundane well is commendable. That is because I have been coming from a place where I expected a certain standard of behavior as a norm only to realize that standard was actually abnormal. Frankly, I wonder if I am not making this suggestion out of a mild sense of desperation to raise thing to a place I consider normal before it sinks any further.

Prior to visiting China I remember reading that saying thank you when receiving some service or polite gesture might be seen as insulting because good service is expected and expressing appreciation implies otherwise. So I wonder in contrast about the United States. Are ubiquitous statements of thanks and tip jars on every counter creating an environment in which expectation of more than the minimum requires some sort of recognition?

Joe Patti's Musings on practical solutions for Arts Management

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Butts In The Seats by Joe Patti is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
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