Dr Ian Brooks NEW ZEALAND'S LEADING BUSINESS ADVISOR.
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NZ Business

Handle with Care
August 2009

When a business customer buys a product or service from you, do you and your staff understand the value of what has been put in your hands?

I run a small publishing company and we recently received an order from Coca Cola in Singapore. We sent the parcel through New Zealand Post, using their track and trace service. Three weeks later, our customer reported it had not arrived. We went online to discover the parcel, which had been taken to the Post Office June 2nd was picked up June 18 and left the “country of origin” the same day. It arrived in New Zealand June 22 (remember, it was going to Singapore) and a delivery attempt was made June 18, the day it was picked up. The website told us: “Delivery was attempted but was not able to be completed for the following reason: Delivery Unsuccessful.” Not finding this helpful, we rang the 0800 number and was told they would look into it. It turns out that DHL, NZ Post’s supplier, made only one attempt to deliver the item instead of the two they are required to make. NZ Post was not able to say why the delivery was unsuccessful. (How do you fail to find Coca Cola in Singapore?) They did say the parcel was now in New Zealand but did not know where it was.

I said I was less interested in what went wrong and more concerned about finding the parcel and sending it to my customer ASAP at NZ Post’s expense. The CSP did not have the authority to do this so I asked to speak to his team leader. I was told she was unavailable but would call me later that day. She did not. The next day, I called again and asked to speak to the CSP but he was on his break. I asked to speak to the team leader but she was away at a meeting. I asked to talk to her manager. He was also away but I could leave a message on his voice mail, except he had forgotten to turn on his voice mail. I asked to speak to his boss but he was also off site at a meeting. I requested each call me before 5 PM as they were expected in the office later in the afternoon. Nobody phoned. I called the next morning and finally got hold of the team leader. She was apologetic but could not do better than say they would try and find the parcel. I said that was not good enough and I would send a replacement order, at their expense. She said that was OK but pointed out it would take 3 or 4 days, not counting the day we took it in, to reach Singapore. As that was unacceptable we sent the parcel via another courier company that promised delivery in 2 days.

Your poor performance can put your customers out of business.

Clearly neither DHL nor NZ Post did their jobs very well. But more alarmingly, when things went wrong, nobody at NZ post reacted with any urgency. Nobody seemed too concerned about putting things right. And, nobody at NZ Post, including the senior manager I finally spoke to, showed any concern their own supplier had failed them. The underlying cause – and the reason for me telling you this story – is nobody at NZ Post seems to understand when a business customer does uses their service, they are putting their customers and their reputation in NZ Post’s hands. They do not realise their poor performance can put their customers out of business.

Do your people understand that your poor performance can put your customers out of business? Here are seven steps to make sure they do.

1. Make sure your staff know who pays their wages.
I asked the team leader at NZ Post if she knew who paid her wages and she answered: “I sure do, It’s NZ Post and the New Zealand taxpayer.” Wrong answer! It is their customers.

2. Make sure your staff understand the need to get it right first time.
This is absolutely essential because your customer’s reputation, and even their future, may depend on it. My company now has a customer who thinks we are fools because my supplier cannot do what we paid them to do.

3. When something goes wrong, put it right with urgency.
Customers do not want explanations and they do not want to hear what you cannot do for them. They want to know what you are going to do so they can put things right with their customer.

4. Do what you say you are going to do.
If you say you will return a call, or if one of your staff says you will return a call, do it. False promises add insult to injury, enrage your customers and destroy what is lefty of your credibility.

5. Show you care.
Show you are upset your customer has been put in this position. Make your apology genuine and heartfelt.

6. Make sure your suppliers know they have your customers in their hands.
NZ Post showed no awareness their supplier had failed them, their customer and their customer’s customer. Thus I have no confidence in them and will not use them again.

7. Do not let internal issues affect your ability to look after your customers.
I learned later I could not get hold of anyone from the team leader to the senior manager that day because they were all in the same meeting discussing how to handle a major internal issue. I understand the need to do that but not at the expense of your customers. Either empower staff not in the meeting to make decisions or have somebody on call who can.

When your business customer places an order with you, they are quite literally putting their most valuable asset in your hands. Handle it with care.

Speaker If you would like Ian to speak at your next conference,
contact him at: ian@ianbrooks.com
Dr Ian Brooks

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