Tag Archive for: bettering customer relationships

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Is it Time to Stop Paying Technicians for Leads?

I recently read Daniel Pink’s book, Drive – The Surprising Truth About What Motivates Us, and found that the conclusions from the book are directly relevant for those managers who are looking for ways to encourage their technicians to proactively promote their products and services.  These conclusions made me question, “Is it time to stop paying technicians for leads?”

Extrinsic vs. Intrinsic Rewards

In Drive, Pink presents compelling evidence that extrinsic rewards for completing certain tasks – for example, external rewards such as commissions, lump sum payments, etc. – do not always work and can even cause harm.  According to Pink, this is particularly true where the task is not routine and when it entails thinking and creativity.

The evidence suggests that creative tasks, such as evaluating and presenting the best solution for addressing a particular need, provide their own rewards in the doing.  These are called intrinsic rewards because the reward comes from performing the task rather than from an external source.  In situations like these, it is the reward of actually completing the task itself that largely motivates the employee to continue.

This last point is consistent with what I have experienced in my work with technicians.  There are many field service professionals who naturally bring ideas to the customer without any prompting or incentives.  They do this because they see it as part of the service they provide.  They get satisfaction and take pride from the fact that they are truly helping the customer.  They don’t need extrinsic rewards to get them to act; their reward comes from the act itself.

The Problem with Extrinsic Rewards

The problem with extrinsic rewards is that they can diminish intrinsic motivation for doing a task and turn that task from an interesting part of the job, into a menial chore.  But that is not all that Pink found to be problematic about extrinsic rewards.  Diminishing intrinsic motivation is just the first of the “Seven Deadly Flaws”[1] as described by the author.  The other six flaws of extrinsic rewards are:

  1. They can diminish performance.
  2. They can crush creativity.
  3. They can crowd out good behaviour.
  4. They can encourage cheating, shortcuts and unethical behaviour.
  5. They can become addictive.
  6. They can foster short-term thinking.

What Can Be Done?

So, what can we do if we want to encourage this proactive behaviour on the part of our technicians?  Here are some ideas:

  • Ensure that the baseline compensation is fair and adequate.
  • Constantly reinforce the fact that the act of identifying opportunities to help and speaking to the customer about them is an integral part of the service provided. As part of this, showcase examples of where technicians have acted in this way and how it specifically has helped the customer.
  • Openly praise and provide feedback to reinforce desired behaviours.
  • Offer rewards that are not contingent on the individual act of promoting services, but which recognize group-wide achievement. Pink calls these types of rewards “now that” rewards – as in, “now that you have achieved this, here is a reward to recognize that achievement.”  These are rewards that are not typically communicated in advance.  Pink cautions that this approach can lose its effectiveness if the “now that” rewards become expected (or contingent) rewards.

In the end, I think it all comes down to how we think about the task of making recommendations to customers.  If we see this task as part of the service, then we should treat and support it like we do all other services.  If we don’t provide extrinsic rewards for completing routine repairs for example, does it really make sense to do so for making recommendations?  The evidence suggests that offering extrinsic rewards may have the opposite effect to what we intend.

As always, I welcome your comments and questions. You can connect with me via telephone or email or leave a comment right here on the site. And as always, please feel free to leave a link back to your own blog if you have one via the commentluv feature here on the site. If you are reading this blog post via email, you will need to locate this post on my website by clicking here. Scroll down to the bottom of the page where you will find the comment section.

Jim Baston

“Motivation is the art of getting people to do what
you want them to do because they want to do it.”

 – Dwight D. Eisenhower

[1] Daniel H. Pink, Drive – The Surprising Truth About What Motivates Us (New York:  Riverhead Books, 2009), p. 59.

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The One Question Every Field Service Technician Should Ask

What is a simple question that delivers exceptional service and generates profitable revenue? It’s the one question that every field service technician should ask.  So, why isn’t every field service technician asking it?

In our workshops, we discuss the value that field service professionals provide by bringing opportunities to our customers’ attention that can help them operate their facilities/processes more effectively.  One way to uncover these opportunities is to ask this question, “Is there anything else that I can help you with today?”

Strangely, only 10% to 20% are asking this question

When I ask how many in attendance ask that question, I am amazed that typically only 10% or 20% put up their hands.  And I am further amazed at how enthusiastic those who do ask the question are about the value that they are creating by asking it.  To drive the point home of how valuable this question is for the customer, I simply ask those who do use the question a few questions.  The discussion usually goes like this:

Jim: Tell me, when you ask the question, how does the customer respond?  Do they tell you that it is none of your business?

Tech: [Chuckle] Of course not.  Actually, they appreciate the question.  I often get one of three responses:

  1. Can’t think of anything.
  2. Thanks for reminding me.  We have been having …
  3. You guys don’t happen to do [some service need], do you?

Jim: Do you think your customers appreciate the fact that you ask that question?

Tech: Sure do. It reminds them of something that they intended to speak to me about.  Sometimes we get opportunities to provide services that they didn’t previously buy from us because they didn’t know we did it.  It also provides clues to potential underlying problems that we can help with.

Jim: Can you think of any reason why you should not ask the question?

Tech: No.  It’s a great question.  It’s good for the customer and it’s good for us.

Why don’t more service managers ensure their field service teams asks?

If this question is of such value and is appreciated by customers, why don’t more of us as service managers ensure that everyone on our field service team ask it?  One reason I suppose, is the one given to me by some of the attendees.  They tell me that they don’t ask the question because they will not have time to respond to the customer’s request if it does arise.  They have other customers to attend to and don’t have a lot of “spare time” to address additional issues.  Although I can see their point, does it have to be a reason not to ask?  And, if we don’t ask the question, who will the customer turn to to get any outstanding issues resolved?

Make asking the question a part of your service technician’s routine

My suggestion is to make the question part of the service discussion at the end (or the beginning) of each service call, and then teach the technicians how to address the three typical customer responses (see above).  We can clarify with our field teams what our expectations are for “having a quick look” and what they can say to delay any follow up without giving the impression of putting the customer off.  If time is really an issue, we can provide clear steps the field team can take to get another team member to deal with the issue.

This questions provides great customer service and may help your bottom line

By asking if there is anything else that we can do for the customer today, we provide an excellent service to the customer by reminding them of issues they wanted to talk to us about, uncovering larger issues that may be underlying the customer’s response and informing the customer of other things we do as a service organization.  No doubt we have some on our team that provide this level of service for our customers.  Why not all?

As always, I welcome your comments and questions. You can connect with me via telephone or email or leave a comment right here on the site. And as always, please feel free to leave a link back to your own blog if you have one via the commentluv feature here on the site. If you are reading this blog post via email, you will need to locate this post on my website by clicking here. Scroll down to the bottom of the page where you will find the comment section.

Jim Baston

“It is not the answer that enlightens, but the question.”

– Eugene Ionesco

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Do You Tell Your Customers?

Your field service team can add tremendous value to your service relationships when they recommend products and services that you can provide that will help your customers be better off.  They are in a unique position to do this; they have the knowledge of the technology, an inside understanding of your customer’s current processes and equipment and, hopefully an appreciation of your customer’s goals and objectives.  They also have proximity to the customer.  The question is however, if you engage your technicians in promoting your services, do you tell your customers?

Do You Tell Your Customers?

I recently spoke at the Field Service Forum in Amsterdam.  I asked how many of the attendees either formally or informally encouraged their technicians to proactively recommend their services to their customers.  About 60% of the room raised their hands.  I then asked how many of those who raised their hands told their customers that they were engaging their technicians in this way and not a single person responded that they did.  This is entirely consistent with other discussions that I have had.

How about you?  Do you tell your customers?  Do you tell them that you are encouraging your technicians to look for products and services to recommend to them?  If you are not, you are missing out on an important opportunity.

Why Not?

Let’s examine one of the reasons why we seem so hesitant to let our customers know about the promotion of products and services by our technicians.  I believe that underlying our reluctance is that we tend to see the actions of our technicians as a “selling” activity.  And, it’s hard to promote “selling” as a benefit to our customers.

Where is the value for the customer in a conversation that goes like this?  “Mr./Mrs. Customer, I want you to know that we have encouraged our technicians to look for opportunities for us to sell you more services so that we can increase the revenues we receive from you.”  It’s hard to see any value in this statement, regardless of how noble our intentions or those of our field service team are.

Remember, It is a Service

The key is to keep in mind that we want our technicians to use their expertise and proximity to look for opportunities to help the customer and raise these with the customer when they find them.  This is valuable because the actions of our technicians can truly help our customers to be better off and to achieve their business goals.  Their recommendations therefore, are a service.

Yes, as service providers, we do benefit from this proactive activity through increased service revenues, but those revenues are our reward in return for the value of the service that we provide.  By regarding the proactive activities of our technicians through a service lens, it becomes easier to promote their activities just like we would any other service that we provide.

Have this Conversation with your Customers

An excellent way to promote the proactive actions of our technicians is to have this conversation with our customers.  “Mr./Mrs. Customer, we have provided direction and training to our technicians to encourage them to look for opportunities to help you operate your facility/processes more effectively while they are performing the service.  Would you have any objection when they find something that will help you achieve your business goals, if they bring the opportunity to your attention?”

By explaining the actions of our technicians in this way, we are able to communicate the value of their efforts for the customer.

If you formally or informally engage your technicians in business development activities, I encourage you to tell your customers – and let them know why it is of value for them.

Promote their efforts to your customers as a point of difference.  Let them know that you are providing your “heads” as well as your “hands”.  When they recognize the value of these efforts and benefit from the resulting recommendations, they will be delighted that you have engaged your technicians in this way.

As always, I welcome your comments and questions. You can connect with me via telephone or email or leave a comment right here on the site. And as always, please feel free to leave a link back to your own blog if you have one via the commentluv feature here on the site. If you are reading this blog post via email, you will need to locate this post on my website by clicking here. Scroll down to the bottom of the page where you will find the comment section.

Jim Baston

“You are not here merely to make a living. You are here in order to enable the world to live more amply, with greater vision, with a finer spirit of hope and achievement. You are here to enrich the world, and you impoverish yourself if you forget the errand.”

– Woodrow Wilson

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My Definition of Effective Communication for the Service Business

Thought - 3D

I was engaged in a conversation recently about why communication plays such an important role in the world of service.  It was an interesting discussion and allowed me the opportunity to share my definition of effective communication for the service business.

The quality of our communication is relied on to assess our competence

The quality of our communication is a major source of information that our customers rely on to evaluate our competence and the value of our work.  As an intangible service, it is almost impossible for a customer to accurately evaluate actual work quality or competence directly.  For example, if it takes us one hour to troubleshoot a problem, how does the customer know that the hour spent was amazing and that it would have taken anyone else a day or more to figure out the problem?  The answer is that they don’t really know, so they look to their perception of the quality of our communication as an important input that they use to assess our competence.

Communication can be intentional or unintentional

It is important to remember that communication can be intentional or unintentional.  For example, we can send an email as a way of intentionally communicating specific information.  Unintentional communication may also occur based on the quality of that email.  How the email is constructed (does it use good sentence structure, is it free from spelling errors, etc.) may communicate information to the customer that they use to evaluate our competence. So, for example, a poorly constructed email that has incorrect grammar and plenty of spelling mistakes, may unintentionally communicate an image of us that is not very complimentary.

We can limit the amount of unintentional communication that takes place.  If we recognize that the quality of the email that we send will also communicate something about our professionalism, then we can intentionally make an effort to ensure that the email is constructed in a manner that contributes to the communication of our professionalism.

Effective communication for the service business

Which brings me to my definition of effective communication for the service business.  Effective communication will achieve three objectives:

  1. Accurately transfer information
  2. Create the feeling of assurance in the receiver
  3. Reflect positively on the sender

Obviously, accurately transferring information is important.  Presumably it is the reason we sent the email or had a telephone conversation in the first place.  To be effective, the receiver must understand the meaning of the message in the way it was intended by us as the sender.  The second and third points are also important because they contribute to the perceived value of our work.

We’re in control

Fortunately, we can consciously construct our emails, conduct our telephone conversations and otherwise communicate in a manner that will intentionally convey our competence and professionalism.  This will help ensure that the customer feels reassured by receiving our correspondence and recognize that they are in good hands.  Correspondence of this nature will also reflect positively on us as professionals in our trade.

As service professionals, we have a choice.  We can remain unconcerned about the importance that our correspondence has in providing insight to our customers about us and our competence and leave the resulting image that we create in their minds up to chance.  Or, we can consciously and intentionally use our communication opportunities to effectively communicate so that we continually remind our customers that they are dealing with a competent professional.

As always, I welcome your comments and questions. You can connect with me via telephone or email or leave a comment right here on the site. And as always, please feel free to leave a link back to your own blog if you have one via the commentluv feature here on the site. If you are reading this blog post via email, you will need to locate this post on my website by clicking here. Scroll down to the bottom of the page where you will find the comment section.

Jim Baston

“The single biggest problem in communication is the illusion that it has taken place.”

– George Bernard Shaw

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Disappointed with Technician Efforts in Making Recommendations to Customers? Teach Them the “5 Ps”.

In his book, Coaching for Improved Work Performance[1], Ferdinand Fournies notes that, although there are 16 reasons why employees do not do what they are supposed to do, 99% of the time it is because of only two – they either don’t know what they are supposed to do or don’t know how to do it.  If you are disappointed by your technicians’ efforts in making recommendations to your customers, try teaching your technicians the 5 P’s for making recommendations.

The 5 Ps refers to the five steps technicians can use to effectively communicate their recommendations to the customer for those product and services that they feel will help their customers to be better off.  This simple approach addresses why the customer should take action. It is easy to remember and it works as follows:

Permission:  Every recommendation should start with asking “Permission” from the customer to proceed.  It is as simple as stating the topic of conversation and then asking if they have time for that conversation now.  For example, “Mrs. Customer, I just completed the maintenance service and I have a recommendation that will eliminate these unexpected failures and significantly reduce your energy usage.  Would you have just a few moments to talk about this now?” Asking permission shows empathy for the customer’s situation and, if the customer is too busy, allows them to reconnect at a more suitable time.

Problem:  The “Problem” is simply a statement of what has been found that would benefit from your recommendation.  Ideally the problem statement can be reduced to a few simple sentences.  For instance, “Mr. Customer, both of your units are over 18 years old and at the end of their useful life.  As a result, you will continue to experience unexpected failures and parts will be increasingly hard to come by.  It’s only a matter of time before you experience an extended and costly breakdown.”

Proposal:  In this context, “Proposal” simply means a statement indicating what can be done to address the problem.  In our case, our proposal might look like this, “This would be a good time to consider replacing the old units with new higher efficiency units.  Because the existing units are working now, we can schedule the replacements at a time which will cause the least amount of disruption.”

Payoff:  The fourth P, “Payoff”, refers to the benefits the customer can expect by taking action.  Continuing our example, we might say, “The new units should give you years of trouble free operation and will significantly reduce energy consumption.  Not only will the energy savings pay back your initial investment while your tenants enjoy a more comfortable workplace, but you can relax knowing that you are contributing to a greener environment.”

Pose:  The fifth and final P is “Pose” as in “pose a question”.  It is simply the call to action at the end of the conversation.  Here are some examples:  “Would you like us to put a proposal together for you so you can evaluate the options?”  “Would you like me to arrange to have someone call you from our office to discuss this further?”  “Would you like us to go ahead with this recommendation for you?”

I encourage you to introduce the 5 Ps to your team and look for opportunities for them to practice.  Set aside a few minutes at each safety/service meeting for the team to role-play for example.  As the field team becomes more comfortable with the approach, they will become more comfortable in using it to make recommendations to the customer that will motivate them to take action.  And, by proactively making more recommendations to customers, your field team will be offering a higher level of service.

As always, I welcome your comments and questions. You can connect with me via telephone or email or leave a comment right here on the site. And as always, please feel free to leave a link back to your own blog if you have one via the commentluv feature here on the site. If you are reading this blog post via email, you will need to locate this post on my website by clicking here. Scroll down to the bottom of the page where you will find the comment section.

“Act as if what you do makes a difference. It does.”

 – William James

[1] F.F. Fournies, Coaching for Improved Work Performance, McGraw-Hill, 2000
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BYOB Service – The Competitive Edge

Close up of human hand holding brain

I don’t need to tell you that field service is a competitive business and getting more so with each passing day. Customers are more knowledgeable and demanding, competitors are innovative and tough, and the great things you do for your customers are often overlooked. It’s time to bring BYOB service to your customers and gain the competitive edge. BYOB stands for “Bring Your Own Brains” and the service company that offers this service encourages their technicians to bring their heads as well as their hands when providing a service for a customer.

In today’s competitive environment, the best way to stand out from the crowd and to take market share is to demonstrate to your customers that they are better off for having hired you. Not only is their equipment running in tip-top condition, which is what they would expect by engaging a professional and competent company like yours, but they can say that your efforts have made a contribution to their business that was beyond the scope of the work you were contracted to perform. Maybe because of their relationship with you they are operating more efficiently or safely. Perhaps your recommendations have helped them extend asset life or achieve some sort of important recognition or goal. Regardless, they can look to your relationship as bringing much more value than simply keeping the equipment running and they will reward you by renewing their contract and telling their friends and colleagues.

Of course, the only way to help your customers to be better off is to recognize what is important to them and identify and communicate those actions that the customer can take that will help them make improvements. Our field team plays a critical role here because they are the ones in the best position to gain an understanding of the customer’s challenges and goals and recognize steps that can be taken to address them.

This is where BYOB Service comes in. This helps technicians recognize that a critical part of the service that they provide is looking for ways they can help that customer achieve their goals and helping the customer recognize the value in taking action. BYOB Service providers show their field personnel that proactive conversations with their customers about their recommendations is not selling, but rather an integral part of the service that they provide. BYOB Service companies nourish and build upon the brains of their technicians through training, coaching and practice.

How about your service offering? Do you provide BYOB Service for your customers? Do your technicians recognize that their job is more than fixing things and keeping the equipment running efficiently? Do you and your management team nourish the proactive efforts of your technicians through ongoing training and constant coaching and support? Do your customers recognize your efforts and can they say they are measurably better off for having engaged you?

As always, I welcome your comments and questions. You can connect with me via telephone or email or leave a comment right here on the site. And as always, please feel free to leave a link back to your own blog if you have one via the commentluv feature here on the site. If you are reading this blog post via email, you will need to locate this post on my website by clicking here. Scroll down to the bottom of the page where you will find the comment section.

Jim Baston

“I not only use all the brains that I have, but all that I can borrow.”

– Woodrow Wilson

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5 Things to Consider When Paying Technicians Commission

Discount and commission concept represented by percentage sign.

If you have encouraged your technicians to promote your services, you may be considering ways to recognize their efforts.  Perhaps one of the most obvious approaches is to pay them a commission based on the number of opportunities identified or on the value of the resulting order.  If you are thinking of paying your technicians a commission for new business consider these 5 key points. Read more

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6 Ways to Get the Most out of Training your Team

Jim Baston - Proactive ServiceService managers often ask me if they should attend our Proactive Service® workshop with their technicians. My answer is always “yes” and I explain ways to get the most out of training their service tech team. Although I am enthusiastic about the manager attending, this is a somewhat qualified response because these benefits of attending can be outweighed by how the manager acts during the workshop itself. Too often, I find the manager in the back corner of the room, huddled over their laptop or frantically texting someone on their phone. Frequently they will leave the room for long periods of time. To me, this is a lost opportunity and can actually have a negative impact on the training. Here are the 6 ways to participate effectively and get the most return for your training investment: Read more

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The Difference Between Losing a Sale and Losing a Customer

customer service expert Jim BastonThere is a difference between losing a sale and losing a customer and I experienced it first-hand this week.  In this case, I became the “lost” customer.

My car is getting a bit long in the tooth.  It’s a 2008 and, with over 230,000 kilometers on the clock, it really is time to trade it in.  So it was a happy coincidence that I got a call from the salesperson at the dealership where I purchased this car to tell me about a great deal on the same model I currently own.  I knew that 2013 was the last model year this particular vehicle was made and I was delighted that there were still four available.  I took the car for a test drive while the dealership inspected my car.  When we returned, the salesperson offered me an opening price for the trade-in.  The price was very low and I explained that I just could not see my way to make a deal.  I thanked him for thinking of me and we shook hands.

I got a call on my cell about two minutes later from the salesperson.  “Good news!” he said.  It turns out that they could increase the offer by over 27%!  Over the next few days we negotiated a deal that would be “acceptable to the sales manager”.   We finally agreed on a number – about 43% more than the original offer for my trade-in.  The sales manager accepted it.  We had a deal – or so I thought.

In fact there was really no deal and that was where the problem lies.  “All you need to do now is come in and sign the papers and give us a deposit and the car is yours”, the salesperson said and I arranged to come up that morning.  “Everything will be ready.  We won’t keep you long.”  In fact, everything was not ready.  There was more to it than just signing the papers.  Before making good on their part of the agreement, the sales manager insisted on taking “one last look at my car”.  So the deal, unbeknownst to me, was conditional on a second inspection of my vehicle.

I am sure you can guess what happened next.  The sales manager inspected my car, returned to his office, and had a quick word with the salesperson, who, was sent out to tell me that they could not honour the offer that they had agreed to just 30 minutes before.  I wasn’t very happy and a little upset that I was not told that our agreement was conditional.  I felt that my time was wasted and I expressed my disappointment to the salesperson and that I thought they had acted very unprofessionally.  It occurred to me that this is the type of activity that gives car salespeople such a bad name.

In their zeal to make the sale, they lost sight of the customer – a customer who has been with this dealership since 2008.  They could (and should) have been honest with me during the negotiation. Had they been up front with me that the deal we negotiated was conditional on a second inspection, or had they made it clear that their original offer was the best that they would be able to do instead of putting me through a “mock” negotiation that they wouldn’t honour, then I would have little cause for complaint.  In either case, I may not have ultimately purchased this car, but they would have kept a customer.  Sadly, they have lost both.

This incident brought to focus the difference between losing a sale and losing a customer.  Sometimes we get so focused on the prize, that we will rationalize any means to get there.  Questionable tactics may win the sale on occasion, but the risks are high.  If caught we will not only lose the sale, but also the customer.  And that lost customer is bound to tell others about the experience.

Professional business people realize that it is better to be up-front with the customer even if it means that they are unable to come to an agreement.  When approached this way, the business person may not win the immediate sale, but their integrity will likely win their respect and retain the customer and the opportunity to serve them in the future.

I’d love your feedback on this. And as always, please feel free to leave a link back to your own blog if you have one via the commentluv feature here on the site. If you are reading this blog post via email, you will need to locate this post on my website by clicking here. Scroll down to the bottom of the page where you will find the comment section.

Jim

“The secret of life is honesty and fair dealing. If you can fake that, you’ve got it made.”

– Groucho Marx

 

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Taking the Stress out of Challenging Situations

Customer service expertIn our programs, we dedicate a portion of our time to presenting an effective technique for taking the stress out of challenging situations.  We discuss the impact of stress in emotional situations and the important role that we play as technicians to reduce it.  The power of this technique was brought home to me last week.

On a trip to western Canada, I had the dubious pleasure of having my email hacked by someone who gets their kicks out of making the lives of others miserable.  It started about 6 AM with a couple of “Undelivered Mail Returned to Sender…” email messages and suddenly it turned into a torrent.  My smart phone would not stop vibrating as message after messaged jammed my inbox.  And then, after about 10 minutes, it stopped.  Phew, I thought.  That must have been a glitch somewhere.  Just as my blood pressure was returning to normal, it started again and this time it did not stop.

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