Leader Lessons in Delivering World-Class Customer Service from Amazon.com
I love Amazon! Over the past 10 years or so, I have purchased countless items from Amazon.com; books, office supplies, DVD’s, electronics, coffee, assorted gifts and a lot more. In fact, rarely does a week go by without at least one Amazon package arriving from UPS. I even have my own “Recommended Reading Store” powered by Amazon.com. You can (and really should) visit it here > Steve’s Recommended Reading
Apparently, I am not alone in my infatuation with the company. In the published 2011 Temkin Experience Ratings, Amazon was ranked #1 in customer service out of 143 large companies across 12 industries. According to Temkin, the results were based on feedback from 6,000 US consumers that evaluated three components of the customer experience:
- Functional: How well do experiences meet consumers’ needs?
- Accessible: How easy is it for consumers to do what they want to do?
- Emotional: How do consumers feel about the experiences?
Anyone who has participated in my Pinnacle Performance sales/customer service training can tell you this is remarkably similar to my teachings of the ingredients of a properly-balanced world-class customer service organization. As an example, far too often I see businesses that focus too much attention on meeting customers “functional” needs, compromising or outright neglecting the “emotional” aspects of the customer experience.
As I have stated many times, great customer service is a feeling thing; its how the customer feels when they’re doing business with you and, more importantly, how they feel and the stories they tell when their business transaction is complete. Amazon, as well as any company, figured this out and committed to consistently delivering a complete customer experience.
Speaking of Amazon’s customer-centric philosophy and success, Jeff Bezos, CEO of Amazon, said;
“If there’s one reason we have done better than of our peers in the Internet space over the last six years, it is because we have focused like a laser on customer experience, and that really does matter, I think, in any business. It certainly matters online, where word of mouth is so very, very powerful.”
Here are a few Amazon best practices that every tire/auto service business can also do to improve the customer experience, customer retention and sales:
- They Personalize
When you purchase an item (any item) from Amazon, you will often receive an email back that reads “customers that purchased what you just purchased are also interested in these items”. Every time you visit their website and search for an item you are also shown alternative items that other customers have ultimately purchased. These types of recommendations personalize the customer experience and make customers feel like someone is paying attention and is interested in helping them. Speaking from personal experience, Amazon not only knows my buying history they use it effectively to introduce me to other items aligned with my interests.
How well do you monitor and manage your customers specific service/product purchase potential? How well do you communicate this with them in ways that do not feel generic or one-size-fits-all?
- They Keep You Informed
One of the biggest consumer grievances in all of customer service is the lack of progress updates once a business transaction is underway. This is especially true of service providers where consumers typically experience anxiety and frustration when they are not kept informed of developments with their job.
This issue rarely, if ever, occurs at Amazon. Place and order and you’ll receive an instant email with your order confirmation and estimated time of delivery. Not long after that first email you’ll receive another with your shipping information and tracking number. Any questions along the way can easily be administered by email or, if you prefer, by calling a real live human-being on their customer service line.
Do you practice pro-active customer-contact? When customers are waiting for service, do you check-in with them and provide progress updates? Do you phone customers if their service may be longer than originally anticipated?
- They Reward You
Amazon apparently understands a fact I reference in my training; keeping your existing customers is cheaper and more profitable than getting new ones. Accordingly, they have created a rewards program that, well, rewards customers for their loyalty. As an Amazon Rewards card holder, members receive points on purchases transacted with the card and can then apply those points as rebate dollars towards future purchases – something I regularly do!
Amazon is not alone in this endeavor. Most industry-leading retail and service companies have some type of customer rewards or loyalty program. Why? Because they work to strengthen the customer relationship, make customers feel that their business is valued above and beyond the transaction at hand, and provide an added incentive to continue the relationship.
What does your customer rewards program look like? If you don’t have one, why not? Are you losing business to competitors that may be benefiting from their program?
- They Practice Customer-First When Things Go Wrong
As I wrote in my Winning and Losing with Customer Complaints article in Tire Review magazine, the true test of a business’s customer service effort is not when things are going right – but rather what is done when things go wrong.
Consider this personal experience I had while attempting to purchase an MP3 player as a Christmas present for my daughter. Below is the self-explanatory communication between myself and Amazon customer service.
My MP3 product was delivered today. It arrived in a thin white box with “BP Consulting” on the return address. I opened it and was (still am) shocked and upset to find the product in a plastic bag with PC connecting wire and headphones – that’s it. There is no original product packaging, users manual, mfg info, etc. I will leave packaging feedback with photo shortly.
This is a gift and I can’t give it as is. Looks like I purchased, discarded packaging, used and re-gifted this way.
Very Disappointed and Need Resolution ASAP (or sooner)
Actual response from Amazon.com Customer Service (received 3 hours after original message)
I’m sorry to hear if your MP3 disc player arrived that way. This usually doesn’t happen. We make every attempt to package items securely to protect them during shipping, but sometimes cases like this occur.
We always appreciate customer input on how we can improve our store, and I’ve forwarded your message to our shipping department.
I want to make this things right for you, so I’ve requested a full refund of $79.99 for the MP3 disc player, since you received the item that way. This refund will appear as a credit on your American Express card in the next 2-3 business days.
We look forward to seeing you again soon.
Did I solve your problem?
This response is right on many levels; there’s empathy, appreciation, no blame, accountability and action. You’ll notice I didn’t ask for a refund but that’s exactly what I received. Customer service champs like Amazon realize it is far better to lose a little bit now then it is risking the loss of a customer for life.
Do you have a customer-first complaint resolution process? Do all your employees understand and are empowered to use it?
Amazon practices world-class customer service every day. Following their lead can make a real difference in your business results as well!
Steve Ferrante is the CEO & Trainer of Champions of Sale Away LLC., providing Pinnacle Performance Sales, Customer Service and Winning Team Culture training, speaking and professional development services to success-driven businesses throughout North America. For more information on Steve and Pinnacle Performance services for your team visit saleawayllc.com