Winners Vs. Losers

Winners have schemes	Losers have dreams
Always has a program	Always has an excuse
Winners make commitment	Losers make promises
Sees an answer for every problem	Sees a problem for every answer
Always part of the solution	Always part of the problem
It may be difficult but its is posible	It may be possible but it is too difficult
Winners makes commitments	Losers makes promises
Let me do it for you	That is not my job
Winners say, "I must do something”	Losers say, "Something must be done"
Winners choose what they say	Losers say what they choose
Winners believe in win-win	Losers believe for them to win someone  has to lose
Winners make it happen	Losers let it happen

                                       

Aegis Global Academy - Welcomes you to its Second Batch.

Aegis Global Academy

Aegis Global Academy, The World's First Institute of Customer Experience Management welcomes you to its second batch.


To know more call Academy at toll free 1800 209 8777 or visit at www.aegisglobalacademy.com


Academic Partners are IIM Indore, COPC USA and Service Quality Centre.

Book Review - Why We Buy

Paco Underhill is a revolutionary retail guru. He describes himself as an urban geographer and retail anthropologist. He is the founder of Envirosell, a research and consulting company that specializes in improving retail environments in order to sell more products.

His fundamental research methodology is to track customers as they move through stores; observe their browsing and purchasing patterns; and take detailed notes of how long they spend in each area of the store, what they touch and look at, what they buy, how much they spend, etc. In the present market 65% people purchase from stores (Shopping Mall, Retail Stores etc.).

Basically this book covers retail products - not services. Paco Underhill observe and analyze consumer behaviour in retail industry. One fundamental result of Underhill's research into shopper behaviour is that the amount of money spent in a store is positively correlated with the amount of time spent (keep consumer in the store longer and they'll spent more money).

Why We Buy is devoted to a discussion of the demographics of shopping - how different types of customers vary in their attitudes and approaches to shopping. Three main segments are considered: men, women, kids. Some of the more interesting observations that Underhill makes here include:

Regarding Men: Only 72% of men read price tags on items, as compared to 86% of women. If men spent half an hour in a store women spent one hour or more then one hour, it is almost twice or more than twice. Men always tend to go into a store, look at a large shelf of items, pick one, and quickly leave. Meanwhile, women are just opposite.

Regarding Women: Women are more interested in shopping as compared to men. Women generally take pleasure and pride in the shopping experience as opposed to men who always shopping for male-oriented items such as jeans, electronic equipment specially iPods etc. , the shopping environment for women should be relaxing, pleasant, featuring all of the positive layout factors previously discussed that will keep them in the store for a longer period of time. Underhill said Women are actually more information-intensive, reading the label for each possibility before making a purchase.

Regarding Kids: Many retail stores and mall in U.S and Australia started uninterrupted shopping for kids means leaving the parents free for shopping. The principal behind this is “longer the shopper spends in the store the more they will spend comes into play.”

 Many stores in the world do not provide opportunities for shoppers to touch and feel the product sensual experience  plays very important role in sales. Paco Underhill told us that two minutes is the limit of most people's tolerance - after that, they do the slow burn. He recommends a variety of distractions that can be place strategically in order to change the perception of how much time is being spent for waiting. 

Unit 1: Instead of Samoa, Stores: The Science of Shopping.

Chapter 1:

A SCIENCE IS BORN

In this chapter we find that the author Paco Underhill has been a part-time instructor at city university of New York in 1977 & teaching courses in fieldwork on environmental psychology department. The Lincoln center wanted to see if a large store is viable in that street, so the author Paco recruited few of his students to help. The author came forward to do this because was inspired by the great author William H Whyte, who has started his carrier as the editor of fortune magazine & written books such as “The organization man”, “The last landscape”, City: rediscovering the center” & “The social life of small urban space. The author Whyte is the founder of Project for public space (PPS) in the year 1974. In this author Whyte has made much research on people & how they use the public space, he died I n the year 1999. These inspirations lead him to start a group & train them on few special skills. These people are called the trackers they mainly watch each & every buying behaviors of a customer from the time they enter the shop till they leave the shop. A great survey is made & the analysis is been made on the data’s solutions are been derived for the problems. On application of these solution it is

found that the problems are been solved & turned out to be more productive. He thought of using the tool of urban anthropology to study how people interact with the retail environment, the science of shopping is a force today because the level purchasing is such that the big decision are also being made right there in the store, many clients try to replace us with the fancy software packages but still they had to come back to us. The author also says that there are competitors who sell what they do in a lower price but remember that you get only what you pay.

Chapter 2:

WHAT RETAILERS & MARKETERS DON’T KNOW:

Retailers normally observe the lesson & apply the principles from it, marketer its fair to ask how much doesn’t the retailer already know? & few other questions. On a survey some in the organization where certain that we have made a terrible miscalculation, so they had their own study, but though they started doing something’s different they still required the team for the company’s big picture. In this the author is also discussed about the conversation rate. He also came up with a concept that the amount of time spent by the customer in the store determines his buying; he is also saying that another way of judging a store is threw the interaction rate. The author is told that retailers often don’t know who their shoppers are, he also has given few suggestions on many problems.

Unit 2: Walk like an Egyptian-The mechanics of Shopping

This unit deals with the science and the mechanics   of shopping (i.e.) how people physically react to the layout of space. There are certain physical and anatomical abilities, tendencies, limitations and needs common to all people and the retail environment and the technical terms that the author uses is biological constraints.

Chapter 3 - The Twilight

This chapter mainly deals with the lighting within the store or outlet. Here the author tries to show that the lighting within the store needs to be given so importance that it tends to majorly affect the buying behaviour of shoppers.

Chapter 4-You need Hands

In this chapter the author says that baskets which are placed within the store needs to scattered throughout the store which will make a easy job to customers.

All of which means that whatever's in the zone they cross before making that transition is pretty much lost on them. If there's a display of merchandise, they're not going to take it in. If there's a sign, they'll probably be moving too fast to absorb what it says. Putting the pile of flyers or a stack of shopping baskets just inside the door will increase the shopping experience of the customer. Shoppers will barely see them, and will almost never pick them up. Moving them ten feet in and the flyers and baskets will disappear. It's a law of nature - shoppers need a landing strip.

Shoppers need the use of their hands to touch, feel, pick up and examine merchandise - if they are burdened down with a coat, several other items that they have picked up, a toddler, etc., they will spend less time in the store than if they had a shopping cart, access to a coat check, strollers, baskets (placed inside the sore interior where they could actually be useful to someone who has already accumulated a few items), etc.

Chapter 5 – How to read a Sign?

This chapter mainly deals with the prominence and impact of signs in different outlets. Very often, signs in retail environments contain too many words to be scanned quickly, and are placed in locations where they will never be noticed - "Putting a sign that requires twelve seconds to read in a place where customers spend four seconds is just slightly more effective than putting it in the garage."

The typical movement and flow patterns of people are important to know in designing retail environments - for example, individuals tend to turn to the right when moving through a store - another titbit: people tend to slow down when they approach reflective surfaces. People don't see signs. They are focused on other things, or signs are badly laid out and placed in the wrong places. 

According to author, the signs need to be put where people are waiting. Give them something to look at. In 1½ seconds, they can only read 3 or 4 words.

Chapter 6-Shoppers move like People

This chapter mainly deals the most crucial aspect of shopping is the one that looks the simplest (i.e.) the matter of how exactly human beings move. Mainly how they walk.

·         Store layout, too, will need to be redesigned with larger aisles and ramps to accommodate walkers and motorized wheelchairs.

·         Shoppers move like people - they want to see stuff face on, not sideways. This applies to window displays & store displays.

·         American shoppers move to the right the same way they drive.

Chapter7-Dynamic

This chapter mainly gives insight into provide seating for support people: husbands shopping with wives, etc.

More than 50% of fast food is served in Drive-Through Windows. Ten percent of those people park in the parking lot to eat (primarily women).

Unit3-Men are from Home Depot, Women are from Bloomingdale’s

Chapter8-Shop like a man

72% of men see price tags on items, as compared to 86% of women. For a man, ignoring the price tag is a measure of his virility. When a man accompanies a woman for shopping, her time in the store is drastically cut down when compared to women accompanying other women while shopping, they spend almost twice as much time in a store as a woman and a man. Open a women store next to a store that will keep the man happy. Women stores are not organized by the men to buy. Almost all the store are women centric. Men's Health magazine sells more than 1.5 million copies per month.

Chapter9-What women want?

Women usually take pleasure and pride in the shopping experience as compared to men who usually just want to get in and get out, unless they are shopping for specific male-oriented items such as power tools, stereos or computers. The shopping environment for women should be relaxing, pleasant, featuring all of the positive layout factors that will keep them in the store for a longer period of time.

As women take on more of the responsibilities of shopping for all items, as a result of more single family households and a general breaking down of the traditional sex-oriented shopping roles in the family. The traditional male retail preserves (such as Joe's Hardware) will become more oriented towards women's shopping preferences, the demise of Joe's hardware in favour of places like Home Depot attest to this trend.

Stuff for older people on the lower shelf. Gas stations for women have the cleanest washrooms ever. Men tend to sit in front and women in rear in fast food restaurants.

Chapter10: We are getting older

Many of us will spend more time being old that the time we had being young. It follows then that store layouts and packaging design will have to change in order to accommodate us aging baby boomers. This will include larger print on packages because older people have difficultly

reading anything less than 12 point type. Better lighting in stores because older people at age of 50 receive about 25% less light than at age 20 due to discolouration of the cornea and sharper colour distinction on signs and certain store areas. For example, on stairs, where it is critical that older customers are , able to easily differentiate the rise from the run part of the step, to avoid tripping. Store layout, too, will need to be redesigned with larger aisles and ramps to accommodate walkers and motorized wheelchairs.

Chapter11: Kids

This section is devoted to very young kids, and there are some predictable suggestions and points raised. For example, the merchandise oriented towards kids has got to be placed at eye level for those kids i.e, about three feet off the floor. Retailers have to provide for parents who are shopping with kids in tow by providing safe distractions and diversions for their kids, leaving the parents free for a few minutes of uninterrupted shopping. The principle that the longer the shopper spends in the store the more they will spend money.

Unit-4 – See Me, Feel Me, Tough Me, Buy Me: The Dynamics of Shopping.

This unit deals with the overall augmentation and the manner in which each shopper needs to be given the prime importance.The behavioural differences due to gender and age must be accommodated. The mirrors are crucial sales tools for wearable items like clothing, jewellery etc. But too many numbers of mirror will feel like fun house. 

Chapter-12:

The Sensual Shopper

This chapter talks about dynamics of shopping, how they shop and what does the shopping mean ? The activities of shopping like sight, touch, smell, taste, hearing and then whether to choose or reject. What are the products is to be tested before buying and what are not be and their reasons with some instances, how to segregate and arrange the product and how to differentiate them, so that customers will not get confused and they love to go for shopping and prefer the particular shop. Some methods had been followed to engage the customers and make them feel more convenient.

Chapter-13

The Big Three

Its talks about the three distinct aspects. They are design, merchandising and operation. All  these aspects are intertwined and interrelated to each other, if there are any changes or any decisions taken for particular aspects it  will affect the rest of the aspects.

Chapter-14

Time

How to turn shopping from bad to good can be  by playing music or keeping some pictures or some write-ups on the waiting areas so that the customer will not feel bored while waiting because the nature of the human is they feel  irritated when they are waiting.

Chapter-15

Cash/Wrap Blues

Self-services and augmentation are to be followed so that the store will have touch with the customers.

Chapter-16

Magic Arts

We should not place the two different products together, instead of this we should place two relevant product together (mouse with mouse pad) it leads to increase in the sales.

Unit 5: Screen Savers, Jet Lag and Whirling Dervishes; The Culture of Shopping.

Chapter: 17

The Internet: Internet shopping became very famous in present market. 20% of shopping is done by internet and 80% done by real world shopping. The advantages of Internet Shopping – So many options available, convenience, speed and lots of product information. The advantages of physical stores is – touch, trail and sensual experience, immediate gratification and social interaction.

If we search anything on web, you find half a millions of websites. Uncensored nature of World Wide Web is the biggest disadvantages. Mostly students using www for searching their study material, homework and resources for their term papers.

Many consumers believe that if they can’t find something on the Internet, it doesn’t exist.

Underhill said that half of the information on Internet is fake, example – Once upon a time Underhill wanted to book a hotel in Singapore via Internet, website showed him that there is no room available in that hotel. Underhill made a one phone call to the hotel and booked his rooms. This proves at that moment Internet was wrong and fail.

Chapter: 18

Windows of the World: The world’s most ardent Internet shoppers come from South Korea, where close to 100% of all Internet users have bought stuff online and same followed by Germany, United Kingdom and Japan. According to the serve which was conducted by Mr. Underhill most popular online purchases are airline tickets, books, clothes, DVD’s, games and accessories. 60% of them claim they buy products mostly from the same sites. Another way the Internet has worked well is in children’s online communities, like Club Penguin, Webkinz or other sites where kids are entreated to buy, tend and shower their love on virtual pets. Amazon.com is one of the most popular website for oline shopping, which has given the best shopping experience to shoppers.

Now a days Facebook is not only a social networking website, now a days Fcaebook is a market place, with lots of advirtisements.

By 2015 the vast majority of growth in the retail market place will take place in emerging markets, where well-trained merchants are serving emerging customers. Today in each and every country have shopping mall tradition, interesting thing is that Kuala Lampur to Dubai, from Tokyo to Lisbon, and all are looking same almost. Malls are cool destinations for teenagers for spending time. Today retail is the part of human life. LVMH, the luxury goods company in US started a business school in luxury goods management and he also gave MBA degree in retailing.

Chapter 19:

Final Thoughts: Shopping is in our breathe and in our DNA also, specially Internet shopping. Now days each and every big retail store, shop, shopping malls has its own Internet Address (website). Shopping is a form of entertainment, just like the movie or zoo. Your best customers are your current customers. Find ways to upsell them.

Entice them to the back of the store. Keep them in the store longer.




* This book review is done Rishabh Saxena, Aarthi Ajay Kumar, Vandana Ramesh, Santosh and Sairam Indla. This book review is only for class purpose.

8 Rules For Good Customer Service

8 Rules For Good Customer Service

• Listen To Your Customers
• Don’t make promises unless you WILL keep them
• Deal with complaints
• Be helpful - even if there’s no immediate profit in it
• Train your staff (if you have any) to be ALWAYS helpful, courteous, and knowledgeable
• Take the extra step
• Throw in something extra
• Answer each and every query

      If we follow these 8 rules our customer will be happy.

Why Retail Customer Experience - An India Growth Story.

Why Retail Customer Experience

India Growth Story

• Transition from a agrarian and industrial economy to a services economy: Over 50%  of GDP today contributed by the services sector
• Initiated by the IT sector about two decades ago
• Enabled by the telecom revolution that created the infrastructure to develop the IT/ITES sectors
• Boom in IT/ITES & Telecom sectors created earning capacity in young people
• Rapid Telecom proliferation enabled the common man to participate vigourously in economic process and enhance their earning capacity
• Freeing up of bank credit through easy availability of loans in the forms of Credit cards, Home loans, Auto loans, Personal loans, fuelled consumption of Lifestyle goods
• This led to a boom in the housing ,auto, retail, aviation, travel, tourism, hospitality, insurance and healthcare industry.

The Future Trends

India’s expected growth of around 8 to 10% per annum for the next decade is driven primarily by the service sectors :

    

•          Retail CAGR – 23-25%

•          Insurance CAGR – 24.7%

•          Banking CAGR – 7%

•          ITES CAGR– 17%

•          IT CAGR – 9%

Manufacturing lead growth will be technology driven and not employment driven owing to India’s outdated labour laws which discourages large scale employment.

Very low penetration of key lifestyle enabling services:

•      Organized Retail only 5% of total Retail market,
•      Banking at 35%,
•      Insurance life at 12%
•      Healthcare 4%,
•      Telecom 45%.
•      Main Growth to be witnessed primarily from the non metro/rural markets.

Characteristics of the Market Place

Huge proliferation of brands:

•         13 telecom  companies
•       22 Insurance companies
•       78 Banks
•       >25 large organized retail chains

Very little product features and price differentiation:

•          Only advertising approach differs
•       Power of choice with the consumer
•       Power of information with the consumer owing to huge media proliferation.

Characteristics of the service sector Economy

• Lack of a physical product or just a token physical product.

For example: SIM card, Credit card, Insurance policy document etc

Availability of absolutely identical brands with competitors

i)        Competing retail chains like Big Bazaar and Spencer. 

• Near price and promotion parity
• Need to get the process right consistently – very practical in nature
• People perhaps the only clear and ongoing differentiator

How do organization differentiate them

• Advertising
• Sales Excellence
• Price
• New Product Features
• Customer Experience

What is Customer Experience?

People + Process + Products + Physical Environment

* Products, processes and environment – all driven and leveraged by people.

Learnings

1.       Every person can make a difference.
2.       It is not about a resource but about a can do mindset.
3.       An idea that comes from the heart and seeks to give more than it expects to receive at the onset acts as a powerful magnet and draws people to it.
4.       Such ideas have a payoff way beyond any commercially motivated idea.
5.      The willingness to serve is a far more powerful way to align people than wishing to be served. 

Why does customer experience matter to the

Organization-

•        You go back the second time
•        You accept suggestions to buy other offerings from the organization
•           You trust the organisation, its offerings and its people more.
•       You thus, enhance profitability and growth of the organization

What is Retailing

Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.

The term retailer is also applied where a service provider services the needs of a large number of individuals as in the case of banking, telecom, travel leisure & entertainment from a branded physical or virtual touch points.

Purchase

• Brand decision
• Model decision
• Trial
• Terms of purchase
• Payment options

Potential Touch Points – Web/ Store/ Pos/ Sales People/ Resellers/ Kiosks

Book Review - CUSTOMER CULTURE

CUSTOMER CULTURE

How FedEx and Other Great Companies Put the Customer First Every Day

                                                                                                                                

About the Author

MICHAEL D. BASCH was a founding officer of FedEx, where he spent 10 Years as a Senior Vice President. He was part of the teams that invented bar code tracing system at FedEx, Built its SuperHub, and founded the FedEx Business Logistics Division.

Before Joining FedEx, Basch spent eight years with UPS in Sales, Personnel, Operations, and Industrial Engineering.

About of the Book

• The Book explains the importance of the Customer Culture in an organization.
• Culture is everything. “Get the right Culture, and your people will do what is necessary to serve their customers and make owners piles of money” as said by one CEO
• How to develop cultural structures or systems to get your employees into the process.
• Look for better, more cost effective and more valuable ways to serve your customers.
• Books explain about the various techniques and their application with real examples related to Customer Culture.

The Book is divided into three parts:

•                    The Theory
•                    The Application
•                    The Result.

THE THEORY 

System drive people:

• Vision: A clear picture of the desired customer experience.
• Mission: To get more package
• Values: The code of conduct or rules of the game that will not be compromised.
• Goals: The specific time – critical results that the organization desires to achieve.
• Relevance: The desire or determination level among the people to achieve the goals.
• Feedback: The result of scoreboard that tells people their relative success.
• Action: The specific action taken by the people to achieve the goals and problem
• sort out or not.
• Back Ground: Good service was defined as flawless service (service on time) and low cost (at a price the customer was willing to pay).

Problems

• The cultural structure, so successful in other areas, was not working in this district.
• The members were being compiled every day, and the information was there, but the managers were not using the information to provide feedback and to build relevance.
• Company wants to change the culture to focus people on reducing cost while maintaining on time delivery, we set a cost reducing goal at moving delivery cost than 28 cents to 23 cents per package.
• More than 10% at the packages were placed on the wrong conveyor and leading to poor service and increased cost.

Solutions

• To arrange the right transport vehicle.
• To teach the sorters the relationship between cities and three digit short codes.
• To motivation the team.
• As industrial manager set up a new system at the district headquarters where two part time clerks to gather information from 28 operating centers each night.
• Clerks would report to division manager and division manager would report to own respective manager.
• If delivery would be in systematic way cost would be decrease.

Result

• The net result of this performance- improving system was a cost per package reduction from 28 cents per package to 23 cents per package in six months, which was a 20% reduction in costs.
• Company used feedback to make goals relevant to people. They took the actions necessary to build performance and to achieve the goals.
• Fixed cost went down as predicted and within six months, the hub operators had worked out a way to bring the average pay level down to 3.5 hours, so the cost per package was back in line. 

Vision

In order to build a vision of ever-increasing value to customers some understanding of human nature and what the customer’s needs are must be addressed.

The first need of people is to have their physical needs-

On the physical side of customer need and advantages like value added curve, Federal Express maintained leadership.

Stage two is meeting informational need-

At Federal Express, that meant meeting the tracing needs of customers.

Get the package there on time was number one.

Company developed the bar code tracing system to meet the informational need.

Stage three is meeting emotional needs-

Meeting informational needs often naturally evolves to meeting emotional needs.

For example, knowing my package is going to be delivered on time gives me peace of mind, which is emotional need.

Stage four is spiritual needs-

By spiritual needs here, we don’t necessarily mean religion although it may mean that to some readers. By spiritual, we mean greater purpose where people (customer and employees) see that they are part of something greater than themselves.

VALUES AS WORDS VERSUS VALUES AS ACTIONS

Means whatever is preached should be implemented-

• Values, when practiced by all employees, define a consistent customer experience in action. Values lay out the rules of the game that are being played by employees and observed by customers.
• Values are the uncompromisable that define the organization. They attempt to define what is acceptable and what is not. They are the in-bounds or fair play area of your business world.
• Development and inculcating of values is the second step in building the success structure.
• Values simply communicate the sense of principles and rules that the corporate leader would instill if he or she was present in every operation.
• Values cannot be delegated.

Example1:

UPS (United Parcel Service) washes every truck every day whether it needs it or not. A core value of UPS is cleanliness.

• This policy is written in its policy book, but, like all solid values, it is lived in action.
• You could literally drop a burger on the truck floor, pick it up, and eat it without thinking twice.
• Once the district manager of UPS asked the center manager to mop the truck flor by hand. This means UPS enforces its value.

Example2:

Federal Express-

• The People value, a Guarantee of Fair Treatment (GFT) policy. The employee had the right to be heard if they felt they were treated unfairly in any way.
• A no-layoff policy was developed and has been followed even in the very hard times the company.
• In the beginning when the volume wasn’t there, pilots would work in the hub, sell, and even manage stations rather than be on leave from work.

GOALS

GOALS provide focus and direction for people, but, without relevance and feedback, become just numbers on paper.

• The goals must relate to the overall goal of sustained, profitable growth. Sustained means long-term, employee-oriented goals. Growth means mid-term, customer-oriented goals.
• There should only be 3 to 5 goals. This applies to the company as a whole. Each workspaces goal may be different, but the goals support the organisation’s goals.
• Goals need to be limited, measurable, and communicated constantly so that all employees relate what they do to achieving the corporate goals.

Example:

Federal Express- is a good example of integrated goal (Customer, employees, and owners). Goals are set for people (employees), Service (Customers), and Profit ( Owners) parts of the business.

• People: Employee Survey and leadership Index conducted and posted annually.
• Customers: Package count and SQI (Service Quality Index) posted daily.
• Owners: cost per package and profitability calculated and posted weekly.

RELEVANCE

GOALS are accomplished to the extent people are committed to accomplishing them. To the extent that people find the goals relevant to the personal to them personally, they will do whatever is required and within their power to meet them.

• Relevance is to motivate people (employee goals) in synch with the customer and owner goals.
• To attain a good customer culture in an organization, company and individual goals should be made relevant to the employees.
• Relevance gives Clear vision and values that give people and overall sense of direction that are important within the culture.

FEEDBACK: You Can’t Manage or Innovate.

Three ingredients for building a customer culture – Goals, Relevance & Feedback.

• Goals, Relevance & Feedback are equally important. If there is no goals feedback is irrelevant & ignored.
• In a company there was a white board for previous day activities. Benefit of this white board was that employees see how they are doing as a team to achieve the company’s primary goals. Feedbacks system making every employee aware of the company’s goals.
• Every weekend there was a meeting where all feedbacks were discussed. End of every quarterly employee put their view and made plans for next quarter. All managers saw whether goals are being met or not, if not, start working to being met the goals. He took instant actions to get fast results.
• In the beginning there were three primary indicators of success: Package Count, Service Level & [Weeks-to-Break-even (WTB)] Performance. WTB technique used by executives to check whether the company was on right track. If the weeks-to-break-even (Performance) is less than the previous week management needs to evaluate where we are lacking.

Example:

A Good Examples where Feedback has been lost is the U.S Health-Care System.

They did not take a systematic or cultural structure approach to the problem, and therefore little was accomplished. They tried to understand the problem, find its solution, and pass a government mandate to implement the solution. This is typical of most business when confronted with a need to move to a new vision or to make a major change in direction.

Extraordinary Service is Delivered by its Creators.

• Whoever invents a service concepts and process better be the people who deliver it because they are likely to be the only ones who are passionate about it.
• Creating a team and work in a team will reduce time and work load.

APPLICATION

Big company like big ships:

• Companies today are living in a world that is fast moving and fast changing.
• How does a well-thought-out Customer Culture make big and bureaucratic more nimble in a fast-moving and changing world?
• Some ships are highly effective. Take aircraft carries, for example. They combine the power of the ship with nimbleness of the airplanes on the deck.
• The ship provides the support system for the airplanes. The airplanes provide the nimbleness and ability to engage the enemies where they are.
• This is an easy to understand in channel- dependent companies (those companies that distribute their products through third party retailers or small companies.
• The big companies could be the aircraft carrier seeing its role as providing support for its channel partners, who are close to the customer and who are very nimble at changing with every change in the marketplace. Channel partners, as small business, are so nimble that constantly alter their business as necessary for survival and hrive no matter what the economy throws them.
• The same support /action system can be developed with employee groups, but, for purpose of simplicity, we will concentrate on an Example of a major manufacturer that cannot be named and how it is in the process of building the aircraft carrier and the Jet airplanes.
• This is company that sells home product and home diagnostic equipment to and through local contractors (channel partners).
• Most of the companies simply try to fill the pipeline by pushing inventory to the reselling channel partners and leave it up to them to move the products to their customers.

Systemize The Routine; Humanize The Exception

• The best time to capture customers is when they have a problem that you can solve. This is true whether it is a new or existing customer, but especially true with existing customer.
• You Can Turn Angry Customers Into Raving Fans Simply By Solving Their Problems.

Example: 

To determine the validity of this principle-

I am at airport waiting for a flight. It is delayed, and I can see that, but cannot get Information.

• Because I don’t have information, I have no options other than to sit around and hope someone will tell me something. Usually, This is another passenger who has heard something. People are frustrated and upset all around me, and some are even screaming at gate to no avail.
• Airlines probably have several delays every day for 365 days a year and yet still find it difficult to build the system to keep their customers informed.

Informed customer can make the decisions to call or do whatever to take control over their own destiny.

That’s all people want: Control over their own destiny. Take that away, and you really have an upset customer.

Current technology would make it very easy to send an email or computer-generated call to a customer whose flight is late and save a rushed trip to the airport. Technology could also have the people picking them up automatically notified if a flight is late, saving time on both ends. This is building systems to focus on customer issues that demonstrate that you care enough as an organization to solve their problem.

I could go on and on about how companies deal with angry customers, but I don’t need to. I do about your experience of zero power in a difficult situation and the employees that either had no power or no passion to resolve your issue.

Here’s is the points-

• You systematized what you can, but always leave the customer an out o be able to talk to human being.
• You systematized the routine and humanize the exception.
• Airlines could challenge their employees to come up with a process to handle delayed flights.
• May be it’s only communications, but its something that understands the exception to their overall passenger-handling systems.
• Software Company could challenge their service people to come up with a way to deal with frustrated customers.
• And so more examples of BPO sectors. IVR ,they can help u immediately (humanize the exception).

The Single Egg Organization-

• Organizational structures focus people on cooperate objectives and provide relationship structures.
• The single Egg organizational structure that focus employees on their customers-whether internal or external customers.\was invented by employees from a healthcare insurance company. The single Egg analogy provides a central focal point-the customer as the yoke of the egg.
• So far 28 different companies including federal Express using this organization structure.
• One major paradigm to be challenged is the way that most companies are organised so that the focus is on everything but the customer.
• The most companies use a hierarchical organization with CEO

But according to single egg organization Customer comes first and all response according to that-

Typical Organization Structure-

CEO

Sales

Service

Manufacturing

Finance

Typical Organization with Customer on top-

Customer

Sales

CEO

Service

Manufacturing

Finance

RESULT

Paddi Lund story:

Story says about the business transformation from average to extraordinary over a period of time by using correct customer culture.

The story is about Paddi Lund dentist who runs an office in Brisbane, Australia. He was very unhappy, working 60 hours a week and making average dental pay. He was stressed out and wanted to commit suicide. Then he started thinking of his life and profession and he said that “If goal of life is happiness, however one defines it, why would I spend the prime years of my life and the prime hours of those years at a job that makes me unhappy?”

By stating these quotes, he started thinking why he is unhappy and asking his employees. Then he decided not to commit the suicide. And thought of creating a happiness centered business where customer’s employees and owners enjoy customer culture process.

• They were able to understand why they were unhappy, because they were around the people who don’t want to be around us. According to this statement we can say that the people around us are not willing to be with us which we also get depressed.
• In order to reach his vision they should create an environment where people wanted to be there. They started working on the dentist negative experience

Pain

Smell

Waiting

Value

Time Spent

• He and his team worked all the dentist negative experience and created and positive experience to the customers, Paddi was happy now working 23 hours a week. His team was aware of the fact the growth means towards happiness, not growing in size.
• Michael D. Basch attended the paddi Lund seminar in Brisbane. He was quite impressed by his seminar.
• Then he comes to know about the Paddi’s commitment to his vision

VISION

Dental happiness-

• Then he came to know about all the things which Paddi did to overcome the unhappiness like “stress o meter” implementation.
• As Paddi Lund’s Progress in his business from depression to happiness we can say that if the organization is large or small will not matter to build some culture which drives customers, employees and owners.
• Paddi created a courtesy system and value system in his organization.

Value System-

Value System is the guidelines or rules that staff members should follow in the organization when they are working together.

Courtesy System-

This consists of eight values followed by paddi organization to improve the customer relation ships

• Greet and Farewell: Greet them in a specific way
• Speak very politely: Using the words “Please”, “Thank U” ,“You’re welcome “ whenever required
• Apologize and make restitution: When someone feels wronged by your action , you apologize and take an action to backup the words.
• Use positive conversation: When conversing we use positive conversation
• Talking about problems: Talk about problems openly and honestly and as challenges to be overcome by the team.
• Talking about people: Most work-groups have cliques and people often talk behind people back’s. This should not be encouraged
• Blame a system: Often work groups tend to blame people , not systems, for lack of performance.
• Tell the truth: Asks the people to express the truth openly, responsibly and honestly.

Relevance system-

Paddi also developed the system, which monitors the people weekly goals whether they reached or not and monitoring them.

They discuss the revenue, happiness and client referrals they were reported daily and focused on those things to meet or exceed revenue goals.

Goals-

Goals are set and are achieved, and made according to weekly relevant marketing.




*This book review is done by Rishabh Saxena, Soumen Mahato, Rakesh Mishra and Neethu Gummadi. This book review is only for class purpose.