At a breakfast meeting today, I was asked a question that the questioner probably thought was rhetorical. ’Would you agree that customer service is the most important part of establishing a brand?’
Always plan with customer satisfaction in mind, BUT gets the product basics within the marketing mix right first. No matter how good a story you talk on customer satisfaction, product quality will always shine out.
As former Country Manager for Service at Motorola you may expect me to bat the Service wicket. The reason I was appointed to Customer Service roles was that, as a marketer, I could listen to customers, conduct root cause analysis and effect CHANGE for improved product and customer satisfaction.
Seth Godin, in Tribes, makes the point that it’s no good just telling people you’re good - ‘We’ve got great customer service’ means damn all if the customer cannot even understand the product or affiliate to it. The whole brand representation needs to do that. Therefore to say that ‘It’s all about customer service’ is incorrect.
The whole marketing mix – the 7 P’s- product, price, promotion, place/ment and people, then process and physical evidence still to this day forms the basis of marketing within Universities and business schools who still teach the 7 P’s. They certainly do not lead with notions that Customer Service controls brand loyalty.
Each one of the 7 P’s is important, as is customer service – but there is no league table presented by any academic or key marketer, that I’m aware of, on which element is more important.
If you dropped your pricing by 50% would that create better customer satisfaction? Maybe, in the short term but price fluctuations only confuse then send out wrong signals to your customers. And what exactly does a 50% drop in price say about you to the customer? (another matter).
Even in an enlightened organisation, where the customer is at the heart of every decision, there are fundamental things to look at before even considering how the customer service policy shapes up. For example, is the product or service profitable? What sort of people should I employ to do a great job and to best represent the brand? Without a sound product, fairly priced, placed and promoted to the right target audience, the product fails, irrespective of what the customer thinks.
The best kept product secret collapses the customer service argument.
At Motorola, where customer service was critical, the most effective principles were around driving change and product development so that customers were satisfied; they would buy again and then recommend us to others. (Customer Advocacy – a way of life we formed at Compaq in 1999 and still on Seth Godin’s list.)
However, our product was constantly changing – and Nokia, Samsung and Sony E were changing at an even faster rate. If we didn’t catch up or lead technology, speed of applications, software capacity, battery life, reliability, and profitably, we would be dead.
Guess what? Customer feedback and our demands to US HQ for rapid change and development went unheard and our market share dropped from c. 26% to 4% in 18 months. (August 2011 update: Google buys Motorola …aha, someone with vision ..but hell’s teeth they paid a lot of money.)
Please don’t mix the notion that you can run a company based solely on great customer service. I teach the subject and it is should be seen as an extremely important part of every company’s culture. Customers need to feel they are being treated exceptionally well, all of the time. Not the smarmy, in-your-face, ‘have a nice day’ notion ( Brits hate that, sorry) But genuinely, because that’s how the company is led and that’s how every single member of staff feels, too. But put this activity before you build your brand fundamentals and you may not have a company.
Our customers at Motorola switched to other mobile manufacturers because we didn’t keep up. Where does that leave great customer service?
Drive everything towards the ability to satisfy customers, yes.. Building great customer service into every step of the brand building is entirely apt. But you don’t start building a house with the roof. Get the foundations right, then build the shell, then let your brand ‘roof’ be like the Sydney Opera House.