Personal and Practical Needs A Walker study found that during 2021 customer experience will overtake price and product as the key brand differentiator.1 Customer experience is critically important to your organization. But what exactly is "customer experience?" In short, it's your customers’ perception of how you and your company make them feel. These perceptions affect their behaviors, build memories, and drive their loyalty. If the customer has an enjoyable experience, they will continue to do business with you and even recommend you to others. So, what are the key steps to ensuring a successful customer experience? 86% of buyers are willing to pay more for a great customer experience.2 Every customer has two basic kinds of needs—personal and practical. How well you satisfy both kinds of needs shapes your customers’ perceptions of the service you provide. To satisfy your customers, you must meet or exceed these needs. To earn customer loyalty, you must consistently do this better than your competitors. Personal Needs Personal needs icon. Customers want to feel good about the way you serve them. They want to feel as if you care about them and their business. They want to feel confident in your ability. They don’t want to feel ignored, embarrassed, or as if they are a nuisance to you. The positive ways that customers want to feel are personal needs. Personal needs include: Feeling valued, respected, and important. Being heard, understood, and cared about. Being involved in processes and decisions that affect them. Practical Needs Practical needs icon. Customers initially come to your organization for practical reasons. You provide something that can satisfy their basic needs, or perhaps enhance their lifestyle or business prospects. Customers also come to you for your knowledge and expertise. When you efficiently and effectively determine what customers want you to provide and then take appropriate actions to supply it, you satisfy their practical needs. Practical needs include: Having a problem solved. Getting information or having a question answered. Obtaining a product or service. Getting assistance in performing a task. Exercise: Identifying Customer Needs Read the following story and identify the personal and practical needs for the store manager. The manager of a toy store expected a shipment of toys to arrive by Thursday morning. It was already well past noon on Thursday, and the shipment still had not been delivered. The manager was nervous. On Friday, the store would begin its biggest annual sales promotion, an event that will generate a large portion of its annual revenue. The manager decided to call the manufacturer’s order center to find out the reason for the delay. A service provider explained that their order had been loaded on a delivery truck the day before. The manager asked the service provider if they could provide more information, and they replied, “We contract all our deliveries to outside trucking firms. So that’s really all the information I have.” The manager asked for the name of the trucking firm, and the service provider explained that so many retailers had placed orders for similar promotions, and it could be one of several firms. The manager described the urgency of the situation, explaining that the store was already advertising the promotion on social media, radio, and television. “Tomorrow morning I’m going to have a store full of people wanting to buy these toys, so I need that shipment today!” The service provider replied, “I’m sure you were advised when you ordered that we don’t guarantee a delivery date. It really is important that you place your orders as early as possible." The manager hung up the phone in disgust. Select each tab and identify the personal and practical needs that best describe the manager’s needs from this story. Personal Need Practical Need Feel valued, important, or appreciated Feel respected Feel intelligent, smart, or knowledgeable Feel confident in the service provider’s ability Be listened to Be cared about Be involved in decisions Be asked for preferences or ideas Be given choices or options Be told what is happening (or will happen) and why Product Service Information or answers Action to be taken Problem to be solved Help in performing a task Ensure a deadline is met Great job! Identifying the practical and personal needs of your customers is critical to providing great service. ======================================================================================================= Meeting or Exceeding Personal Needs Three Key Principles can help you effectively meet and exceed your customers' personal needs. Maintain or Enhance Self-Esteem Maintaining or enhancing self-esteem means helping people feel good about themselves. Customers feel valued when they are treated with respect. Because customers are the reason your organization exists, you’ll want to give every indication that what they say and do is important to you. Customers who feel valued are more satisfied with the service they receive, and they are more likely to continue to be your customers. To maintain or enhance self-esteem, it’s important for you to: Use the customer's name. Show your appreciation for the customer. Recognize the customer's accomplishments and efforts. Compliment when appropriate. Be specific and sincere when complimenting or acknowledging. Choose words carefully to avoid damaging the customer's self-esteem. Example “That’s a good question to ask, Mr. Smith. _______ is complicated, and many of our customers find it confusing. That’s why I’m here, to help clear up any questions or concerns.” Listen and Respond with Empathy Listening and responding with empathy means demonstrating to your customers that you understand and care about what they say. The purpose of this Key Principle is to show customers that their feelings are important to you. Don’t assume that customers know you understand—express your understanding. To listen and respond with empathy, it’s important for you to: Listen actively for the facts of the situation. Don't interrupt. Listen and watch for signs of how the customer is feeling. Respond in a way that shows you understand both the facts of the situation the customer described and how they feel about it. Example “I can hear that you’re frustrated (feeling) about this problem. You’ve been inconvenienced by the delay (fact).” Involve the Customer To “involve the customer” means to share appropriate information with customers and get their participation in decisions and actions that affect them. Customers want to have a say in what’s happening to them. They dislike feeling “processed” or “handled.” By involving customers, when appropriate, you let them know that you value their thoughts and ideas, that you are their partner, and that you are willing to do what it takes to meet or exceed their expectations. To involve the customer, it’s important for you to: Ask the customer their preferences. Share important details or information about the situation. Make the customer aware of options. Ask for ideas, even when you have a good solution. Use the customer's ideas when possible. Explain what you are doing or going to do. Avoid telling or demanding. Example “Do you prefer an aisle seat or a window seat? I’m going to put you on hold for a minute while I check what is available.” ============================================================================================================= Customer Experience: Practice Addressing Personal Needs Read each interaction, then indicate which Key Principles you would use. A customer calls to make arrangements to pay future bills. Early in your conversation, the customer says, “I’m going abroad for several months and want to make certain that my payments are kept up to date.” Which TWO Key Principle(s) would you use? Select all that apply. Listen and respond with empathy Correct! Involve the customer Correct! Maintain or enhance self-esteem Submit Correct! Anytime a customer notifies your company of a lost or stolen credit card, the policy is to immediately deactivate the card so that it cannot be used. You arrange to send a new card to the customer, who receives it a few days later. In some emergency instances, you can arrange express delivery so that the card arrives the next day. There is a small fee for express delivery. You receive a call from a customer who has lost their credit card. The customer says, “I’m traveling next week and really need that card as soon as possible.” Which TWO Key Principle(s) would you use? Select all that apply. Involve the customer Correct! Listen and respond with empathy Correct! Maintain or enhance self-esteem Submit Correct! Your organization recently launched a personal loan campaign for college students. You answer a call from a customer who says, “I have to tell you that I'm a little nervous about this. I’ve never had a loan before, and I don’t know what to do. I know I have a good credit rating, but I've always heard scary things about loans and interest...” Which TWO Key Principle(s) would you use? Select all that apply. Listen and respond with empathy Correct! Maintain or enhance self-esteem Correct! Involve the customer Submit Correct! ============================================================================================= Meeting or Exceeding Practical Needs As you’ve learned, all customers want to feel valued, understood, and involved—but in different ways. You can satisfy their unique personal needs by using Key Principles. Your customers also have unique practical needs. These are the special reasons they have for choosing to do business with your organization. You provide products and services that might solve their problems, satisfy their basic living or business needs, or even enhance their lives or their work. = To satisfy your customers’ practical needs, you must efficiently and effectively determine what they want you to provide, then take appropriate action to supply it. Here’s a simple four-step process for doing this. It’s called the Service Steps. Step 1: ACKNOWLEDGE the person. It might sound too simple, but it’s important to greet customers as soon as they call or walk into your organization. This lets them know that you value their business, and that meeting their practical needs is a high priority for you. It also tells customers that they can expect an efficient and effective interaction. Step 2: CLARIFY the situation. Before you can satisfy customers’ practical needs, you must find out what those needs are. Be careful not to assume what customers need. In some cases, you’ll have to help them define or clarify their needs. Step 3: MEET or EXCEED the need. Once you know what customers need, you use this knowledge to determine how your products and services will satisfy them. Always look for opportunities to do more than customers expect. Often, little time or effort is required to exceed their expectations. And, sometimes, just a little extra effort on your part can have a big effect. Step 4: CONFIRM satisfaction. Checking to make sure customers are satisfied is a critical step. If they aren’t satisfied, you need to know that before they leave or hang up the phone. This way you can clarify any unmet needs they have and take appropriate action to meet or exceed them. If the person is satisfied, Step 4 will demonstrate your commitment to the customer and assure you that you’ve done your job effectively. ================================================================================================== Customer Experience: Practice Addressing Practical Needs Read each interaction, then indicate what you would say next. Alex: "Hi, welcome to ABC Hotels. I’m Alex. I can help you." (Greet promptly and courteously. Give your full attention. Use appropriate pace.) Ms. Keyes: "I've just arrived. My flight was really delayed due to a bad connection, so I'm hoping that you have still held the room for me, although I know I'm several hours later than planned. Can you check?" What would you say to CLARIFY the situation? "Of course, I can help! So, it seems like we need to start with checking that your room booking is still available because you have concerns after the flight delays. Can I start with pulling up your booking?" Correct! You asked questions to determine needs, provided appropriate information, and summarized to check understanding. Correct! Alex: "Great, I've found your booking, Ms. Keyes. We have a couple of rooms clean and available for you now. You must be tired after the travel." Ms. Keyes: "That would be good, thank you." Alex: "Do you have any room preferences such as higher floor or near the elevator?" (Take opportunities to exceed expectations.) Ms. Keyes: "As quiet as possible, please." Alex: "No problem. I've found a quiet corner room on the 7th floor. I'm just getting your room key card ready. Would you like a wake-up call or delayed breakfast?" (Take opportunities to exceed expectations.) Ms. Keyes: "A wake-up call at 9 a.m. would be great, so I don't miss my meeting. Can I order room breakfast now?" Alex: "Of course. Here is the menu—go ahead and write what you would like to eat and the time you want it delivered to your room. I will get it to the kitchen." (If routine, act promptly.) Ms. Keyes: "Here you go. Thanks for all your help, Alex." What would you say to CONFIRM satisfaction? "Thanks for completing that so quickly. I will ensure the kitchen has it shortly, and I have set up your wake-up call. What else can I assist you with, Ms. Keyes?" Correct! You committed to follow-through and asked questions to check satisfaction. You will have an opportunity to thank the customer once she replies to your question. "No problem. Have a good sleep!" Submit Correct! ============================================================================================================= Steps for Great Service: Final Check You have been through the essential steps for great service—skills to help you meet the practical and personal needs of your customers. Now, it's time to test yourself! Is this a personal or practical need? (Q)To get an appliance repaired (A)Practical Correct! Is this a personal or practical need? (Q)To have a say in what's happening (A)Personal Correct! Is this a personal or practical need? (Q)To feel special (A)Personal Correct! Is this a personal or practical need? (Q)To speak without interruption (A)Practical Correct! (Q)You need to use all four Service Steps in order with each customer. (A)True Because the steps build upon one another, you need to use them in order. But you may go back to one or two steps during a conversation. Correct! (Q)If you feel that you clearly understand the customer's needs, you do not have to summarize to check for understanding. (A)False Summarizing is important because it gives you an opportunity to ensure that you understand the customer's needs. Correct! (Q)One step that is optional, depending on how pleased the customer seems to be, is Step 4, CONFIRM satisfaction. (A)False Although often overlooked, this step is critical in consistently ensuring customer satisfaction. Correct! (Q)If a customer is not satisfied when you try to CONFIRM satisfaction, return to Step 2; CLARIFY the situation, to find the cause. (A)True Returning to Step 2 gives you another chance to clarify the situation. Then you can satisfy the customer by meeting or exceeding the need. Finally, confirm satisfaction again. Correct! =============================================================================================== Tools and References Download the Steps for Great Service Job Aid. References 1 Walker. (2020). Customers: The Future of B-to-B Customer Experience. Retrieved from https://www.walkerinfo.com/knowledge-center/featured-research-reports/customers-2020-a-progress-report 2 Clarke, D., & Kinghorn, R. (2018). Experience is everything: Here’s how to get it right. PwC. Retrieved from https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/pwc-consumer-intelligence-series-customer-experience.pdf We invite you to provide feedback on this online course! Your feedback is instrumental in helping us make future enhancements. Launch the survey in a new window. Congratulations! You've reached the end of this course.