Wednesday, September 10, 2008

When customers love you, they'll tell you when you mess up


We have a love/hate relationship with Starbucks. We love a lot of things about them: for one, we’re addicted to their beverages. Rich likes their coffee; Georganne prefers an iced Coffee Frappuccino. We often wonder if they put something in them that makes us crave them all the more, don’t you? We love their stores, too because they provide the perfect combination when we need a little sustenance combined with some sit down and shut up time. Starbucks is our favorite place to brainstorm when we need time away from the office – there’s an energy at Starbucks that’s easy to feel but tough to describe. We also like the fact that no matter where we are, the beverages taste the same. When you travel as much as we do, there’s comfort in that.

But there are a few things about Starbucks that bug us. Take ordering, for example. There was a time when neither one of us knew a Grande from a Venti. After all, we’re Baby Boomers and Starbucks was a haven for Generation Xers. Ordering came naturally to them. We struggled. Conversations between us and the Starbucks barista would go something like this:

Us : “We’d like two large decaf s, please.”
Barista: “Grande? Venti? Room? With legs or without?”
Us: “Uh … decaf? In a cup?”

And then the barista would stare at us for a few seconds, although it felt like hours, as the smug know-it-alls behind us would bore holes in the back of our heads for being too dumb to properly order a cup of coffee. After a couple of times of being humiliated like this we switched to hot chocolate.

Until a gallant Gen Xer came to our rescue.

We were giving a presentation at a hotel that had a Starbucks right outside of our seminar room. Everyone in the room was holding a Starbucks cup. George launched into a tirade about how dumb she felt trying to order a cup of coffee. After the program Kurt approached George and offered to give her a lesson on how to order. They sat in the back of the seminar room while Kurt explained that “Skinny” meant made with nonfat milk, “Wet” meant more milk, less foam, and “Solo” meant one shot of espresso, by itself. They sat there until Kurt thought George was ready to go solo.

As she approached the counter, George was determined not to be intimidated by the barista about to take her order. George said, “I’d like a Venti double-half decaf, triple, cinnamon, nonfat, no-whip, mocha. With room and legs.” Then she just smiled, handed the barista twelve dollars, grabbed her drink and got out of there before anyone found out she had no idea what she had just ordered.

Now-a-days we find a friendlier Starbucks. We like that ordering have become easier so even first time visitors can feel comfortable placing their order. Now if we could just get them to lighten up on those biscotti cookies that are so hard you have to dip them in something before you can eat them. We were politely told that the typical Starbucks affluent customer prefers an upscale biscotti with his/her coffee. Apparently we don’t fit this mold – we prefer doughnuts, thank you very much. Preferably gooey ones covered with chocolate and filled with Bavarian cream. Lots of Bavarian cream ...

Georganne is the one who usually stops on her way to the office to pick up our morning coffee. Almost every morning she would arrive with coffee spattered on the front of whatever she’s wearing. Tired of all the constant dry cleaning, George would call Starbuck’s headquarters every couple of months to complain about the lids they use on their hot beverages. The little spout makes it easy to drink from, but it’s not so great when you have to transport the drink somewhere.

The Customer Service Reps would always listen intently. They'd always apologize for the inconvenience, and assure George that they were looking into the problem. Sometimes they'd offer to send coupons; one time a CSR offered to pay for George's dry cleaning. And then they have a green swizzle stick-like splash sticks that perfectly plugs the drinking spout. Yes!

Starbucks doesn't have to do any of those things. They don’t have to have a customer service department, they don’t have to offer customers coupons, they don’t have to pay for dry cleaning, and they certainly don't have to invent new products just to keep customers happy, but we’re glad that they do.

One of the things that has helped Starbucks become as successful as they are is because they are receptive to their customers. It’s a good thing when customers take the time to complain to you about something they don’t like, because it means there are good customers. Loyal customers. The folks who don’t really care about you simply walk out the door and never some back. Consider the statistics:

Only 4% of unhappy customers will care enough to voice a complaint; 91% of unhappy customers will not come back to do business with you again; 80% of unhappy customers will tell 10 other people about their rotten experience; and 20% of unhappy customers will tell 20 other people about what happened in your store. Know what that means? If your store only has four complaints a year, you are likely to have had one hundred unhappy customers. By the way, that's just in the store. Imagine the damage a single angry customer can do on the Internet! Think about millions of people reading that one customer's complaint.

It’s easy to become defensive when dealing with customer complaints because it’s a natural reaction when someone criticizes your store. It’s really a gift. Starbucks didn’t think about what it would cost to fix George’s complaint, they only thought about what it would cost them in sales and negative word-of-mouth if they didn’t fix it.

How do you handle customer complaints in your own store? If you don’t have a policy in place, consider adopting these guidelines:

Plan for complaints: Let everyone know that complaints are important to the growth of your business and to accept them graciously. Log each complaint for future discussion and for follow-up. Resolve the issue: Listen to what the customer is telling you and react accordingly. Compensate the customer: Starbucks offered to pay for dry cleaning and sent coupons. Come up with a similar plan in your own store: money-saving coupons, a free class can work wonders. Follow-up with a hand-written note or telephone call to let the customer know that they are important to you and your business. Prevent the same complaint from happening again. Discuss recent customer complaints in store meetings then brainstorm ideas that will to preclude the same complaint from happening again.

When it comes to things that bug customers, the best defense is a solid offense. Plan ahead. That way, everyone will know what to do before the situation ever arises.




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