A Complaint Is a Gift Seminar

Have you read the best-selling customer service book "A Complaint Is a Gift" and find yourself wondering how you can instill world class customer service and complaints handling in your organisation?

If so, why not book Claus for a one day seminar to explain the methods he has used to help some of the world's leading companies deliver world class service - and experience for yourself what this can do to re-vitalise your company, increase customer loyalty, and reduce customer defections and bad word-of-mouth.

As one of the world's leading authorities on customer service, Claus is an inspiring choice as a speaker for a conference for your customer service teams, but the message runs so deep it should be heard by anybody in your company if you want to improve your bottom-line results, be able to attract and retain the best staff, and develop a company culture where your staff work with you - and not against you.

To find out more about the unique customer service concepts and how we can also tailor any programme or seminar to meet your specific needs, please drop us a line.

Building A Customer-Focused Culture at Zappos.com

As promised, I wanted to give you some insight into the customer-centric culture at Zappos.com. Zappos is one of the fastest growing retailers in the US and on the Internet, with sales of their shoes and accessories set to hit $1 billion this year. It is run by Tony Hsieh, who gracefully accepted the invitation to write the foreword to the second edition of A Complaint Is a Gift, the book version co-authored with Janelle Barlow, of the customer service concept I pioneered back in the early 1990s.

Tony has instilled a culture at Zappos based around 10 core values, which not only guide their everyday dealings with internal customers as well as external ones, but they are also a part of the hiring process so you need to exhibit these traits if you dream of getting a job with Zappos. The 10 values are:

1. Deliver "WOW" through service
2. Embrace and drive change
3. Create fun and a little weirdness
4. Be adventurous, creative, and open-minded
5. Pursue growth and learning
6. Build open and honest relationships with communication
7. Build a positive team and family spirit
8. Do more with less
9. Be passionate and determined
10. Be humble

In addition to these 10 core values, Tony also has some incredibly good tips on how other companies can learn from Zappos and truly focus on their customers to achieve success. And what a success Zappos has become. 75% of all sales come from repeat customers and basket sizes increase from the first to the second transaction. This is all down to ensuring that the customers really do feel welcome and looked after by Zappos.

What impressed me most about Tony is his genuine interest in his customers. I read a story about how two sisters felt that they had been racially profiled by a Zappos outlet store in Las Vegas and how Tony personally dealt with the complaint along with other members of senior management. Read this inspirational tale of true customer service.

Try doing a Google search on Zappos and their customer service as well and you will find many fascinating insights into the company both from employees and from customers. The idea of doing an annual culture book is also something I like a lot, although I would like to see this being made available for free (perhaps as a PDF?)

Tony is very active on the speaking circuit and is not afraid to share the secrets of his success with people in all industries. The principles he has used to build the foundation for Zappos.com are evergreens in the field of customer service and customer relationship management and can be applied by ANY COMPANY in ANY FIELD. On Tony's blog he is more than happy to share his wisdom with you and you can watch several of his keynotes.

If you have time to watch only one, I would recommend that you watch Tony's keynote presentation below to be inspired to do something to improve your customer focus. I can guarantee you that just a tiny improvement in ONE of these areas can increase your customer loyalty and customer lifetime value (LTV) dramatically.

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FREE excerpt from A Complaint Is a Gift

August 1, 2008 the 2nd edition of A Complaint Is a Gift hit the shelves. We've now got a free excerpt which you can download (PDF). The original sold more than 130,000 copies.

Thoroughly revised and updated with new material on handling Internet complaints, dealing with complaints directed at you, complaining effectively yourself, as well as new examples covering a wide range of industries.

The concept is more relevant than ever in today’s constantly connected world, when customers can complain instantly and broadcast their dissatisfaction around the world.

Download the excerpt.

Don't forget to enter our competition to win 1 of 5 copies signed by Claus.

If you would like to buy a copy of the book at the discounted launch price of $13.57 go to Amazon.com.

Thanks, Tony!

I just wanted to thank Tony Hsieh of Zappos.com publicly. Tony has, very kindly, written the foreword to the second edition of A Complaint Is a Gift, and is somebody who really "gets" that business is about the customers - rather than systems and policies making it easy to shift products. Tony passionately believes in what he is doing and Zappos is definitely one of the true shining beacons of customer service anywhere in the world today.

For those of you who haven't heard of Zappos yet, they're one of the fastest growing shoe retailers and last year generated revenues of more than $800 million. However, they're a very atypical company because their mission is not to become the world's largest shoe retailer, but rather "providing the best online experience possible".

Over the next couple of weeks I will tell you a bit more about Tony and his company and give you some insights into what makes them tick and what makes them exceptional in my opinion. For now, I don't want to dilute the message of the big thank you I would like to send to one of MY customer service heroes for writing the foreword to our book.

The second edition of A Complaint Is a Gift will be published by Berrett-Koehler on August 1st, 2008.

Find out more about Zappos.com

Excerpts from the first edition of "A Complaint is a Gift"

While doing a Google search for the new edition of "A Complaint Is a Gift", I stumbled across a list of quotes compiled by Andrew Gibbons from the first edition of the book.

You can download the excerpts and quotes here. I would also recommend visiting Andrew's site as there are many other free book excerpts available.

Soon you will also be able to read excerpts from the new book here on the blog, so sign-up to receive the RSS feed or sign up for email news in the right-hand navigation.

5 Myths of Complaint Handling

I thought I'd just share this little teaser excerpt from the forthcoming second edition of "A Complaint is a Gift" with you. These are 5 myths about complaint handling, which you might find useful to keep in mind when dealing with annoyed customers.

Myth # 1: People naturally know how to handle complaints. After all, they've been receiving them their entire lives.
Reality: Most people have to check their natural reactions when they receive complaints. At some level, a complaint is perceived as an attack, and when confronted most of us are inclined to attack back, especially if the complaint is delivered in a blaming manner. Effective complaint handling requires that we counter our instinctive tendencies. When staff who work call-center phones hear themselves on tape with a customer, they are frequently surprised that they sound so hostile and arrogant with customers.

Myth # 2: It's a good idea to set targets to reduce the number of complaints you receive.
Reality: Bad idea! If you set targets to reduce complaints, your staff will help you by not reporting the bad news they hear. To some degree this normally happens.
Setting targets to reduce complaints will only encourage staff to make sure your organization receives even less customer feedback. Your staff will do this by making it more difficult for customers to complain or by discarding complaint evidence.

Myth # 3: If you give customers what they want, you have satisfied them.
Reality: No way! Giving customers what they want when they complain does not guarantee satisfaction. There is a huge emotional component to complaints. If this emotionality is not addressed, you can give customers whatever they want, and they will still walk away upset. Good responders understand the psychological dimensions of complaint handling.

Myth # 4: Complaint handling and sales are unrelated.
Reality: Complaint handling is as demanding a task as is sales. Actually, a good complaint handler is, in effect, a sales person for your organization because they keep your customers coming back.

Myth # 5: Complaints are a sign that your company is not doing a quality job.
Reality: Companies will always create some dissatisfaction for their customers. Zero defects is a target, often not a possibility. Your quality suffers when you fail to hear this dissatisfaction. Complaints represent an open dialogue with your customers who are giving you a chance to keep their business. They are giving you information you might otherwise not hear that you can use to improve your quality. At a minimum, complaining customers are talking with you, rather than the rest of the world. And that is a gift!

"A Complaint is a Gift" hits the shelves in bookstores across the US on August 1st. You can also pre-order a copy from Amazon.com or read more about the book in previous posts.

More Information on "A Complaint is a Gift"

The book description page for the second edition of A Complaint is a Gift is now live at BKConnection.com and I thought I might as well just present it in the same way that Janelle Barlow and Claus Møller have over there:

• Demonstrates why complaints are the biggest bargain in market research, and how companies can use this information as a strategic tool to increase business

• Offers a complete Complaints Policy that readers can implement in their companies

• Presents dozens of real-life striking examples of poor-and excellent- complaint handling

Customer complaints can give businesses a wake-up call when they're not achieving their fundamental purpose-meeting customer needs. Complaints provide a feedback mechanism that can help organizations rapidly and inexpensively shift products, service style, and market focus. Unfortunately many businesses dodge responsibility for a customer's dissatisfaction, believing that complaining customers are trying to get something for free or that the problem is the customer's fault. Businesses who don't value their customers' complaints suffer from costly, negative word-of-mouth advertising.

A Complaint Is a Gift shifts the paradigm about how complaints are viewed by business. By presenting dozens of striking examples and research studies, Janelle Barlow and Claus Moller show that companies must view complaints as gifts if they are to have loyal customers. A Complaint Is a Gift is a "how to" book for those who want to turn complaints into a strategic tool to increase business and customer satisfaction, and to learn something new about products and services. It is filled with practical guidance:

• how to behave as if complaints are gifts
• how to use communication principles to handle upset customers
• how to respond to written complaints
• how to handle personal criticism, and more

A Complaint Is a Gift also tells how to create complaint-friendly organizations by encouraging customers to speak out. It outlines communication structures that can facilitate the movement of complaints from frontline staff to upper management, allowing customer-identified problems to be fixed within the company. Complaint-friendly cultures are described in detail, and specific structures are suggested that can be adopted by companies interested in becoming complaint-friendly.

A Complaint Is a Gift repositions the role of complaints in business-and argues that handling customer complaints is not just about making customers feel better. It is a book for individuals and companies to deal with complaints in a new and refreshing way. It also brings together three decades of customer dissatisfaction research and shows how companies can use this information to change internal policies and practices.
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The first edition has sold more than 130,000 copies so far and it's very exciting to see the buzz that is starting to build around the new edition. For more information and to order a copy see the previous post about its release.

BusinessWeek's 2nd Annual Customer Service Survey is Out

BusinessWeek have just announced the results of their second annual customer service survey in the US. The survey was done with the help of JD Power and shows some interesting results. You will definitely be able to pick up some interesting tips for your company to improve your customer service.

For a wealth of in-depth results, including the top 50, feature articles and for an opportunity to share your own customer service experiences head on over to BusinessWeek.

Using technology to stay on the front foot in the customer service race

Earlier today I came across this interesting article over at ComputerWorld about how companies are starting to develop "Customer Service 2.0". There are some interesting examples of how Comcast, often slated for their customer service, now monitors Twitter (a mini blog service) and very quickly responds to negative comments in order to alleviate any grievances and ensure that customers feel their problems are being dealt with.

The sometimes abusive comments being posted by bloggers and Internet users are worth listening to as these could be from the customers who are so hacked off that they've given up on complaining, but at the same time now have the free tools available to tell the world how they feel about your company in a minute or less. Following on from the concept of "A Complaint is a Gift", by monitoring the Internet for unhappy customers can give you a competitive advantage and can put you in a position to not only keep your customers, but increase their loyalty dramatically. Knowing what we do now about how few of unsatisfied customers actually complain, this is one of the best opportunities that technology has afforded us to actively identify our unhappy customers and make sure we bring the relationship back on track.

Head on over to ComputerWorld to read the full article with several examples of how companies are now monitoring the web and kick-starting "Customer Service 2.0".

Pre-order "A Complaint is a Gift" (2nd Ed.) now!

2nd Edition of "A Complaint is a Gift" Hits the Shelves on August 1!

I'm happy to announce that BK Business is releasing an updated version of the customer service management bestseller "A Complaint is a Gift" on August 1, 2008. As with the first edition, released in 1996, this book has been co-authored with Janelle Barlow and will feature brand new and up-to-date examples of how to deliver great customer service through handling customer complaints. When I originally developed the concept as a 1-day training programme with a small booklet of cases, examples, ideas, tests and implementation guides back in 1993, it was considered a novel concept that a complaint could be a gift. Most people thought that I had lost my marbles and I was often asked: "How can you say that a complaint is a gift? Have you ever been on the frontline dealing with irate customers?" My response was quite simply that if our customers do not tell us what we're doing wrong, they're probably not telling us what we're doing right, either.

• Handling complaints in an efficient manner does not only give us the opportunity to determine if there is anything wrong with our products, services or delivery mechanisms.
• It also allows us to establish a better relationship with the complaining customer. Research has shown that at heart, most of the people who complain actually want to remain your customers so this is an ideal opportunity to turn them into even more loyal customers rather than risk them spreading bad word-of-mouth around.

One of the key premises of the original book was some shocking research from TARP that showed that on average, an unhappy customer will tell 23 of their peers about their experiences, whilst somebody who has had a positive experience will only share that information with 9 peers. Furthermore, the cost of retention for almost all product and service categories is manyfold lower than the costs of a new customer acquisition. Therefore you cannot afford to take customer complaints lightly, but must learn to treat them as gifts. You can pre-order "A Complaint is a Gift" (2nd edition) from Amazon now.