Submitted by: Tom Hooyman(16) Ethically Speaking Log in to become a member of Tom Hooyman's Fan Club!
Practically every business states, “We provide excellent customer service" or “We will exceed our customer’s expectations." Businesses pay an exorbitant amount of money to learn from companies who are known for their customer service, such as Disney and Ritz-Carlton. As a matter of fact an entire industry has evolved, filled with a cadre of consultants that tells companies how to improve their customer service. A quick search of “customer service" on Amazon shows that there are over 4800 books devoted to the subject. But very little attention has been given to the ethics of customer service.
Recently, I was calling the general counsel of a national clothing retailing company and as I was being transferred from one office to another--one person answered the phone by saying, “What?!", I was taken aback by such a rude “greeting" but then quickly regrouped and asked for the person with whom I wished to speak. The next thing I heard was, “click"--the phone going dead. They had hung up on me. I redialed but this time for some reason didn’t get transferred from one person to another.
Granted the person who answered the phone with--“What?!"--may be under a lot of stress. The company’s stock is not performing very well--personal investments may be loosing value. There is rumor that the company is going to be sold--job security may be threatened. The corporate offices are located in New York---working in Manhattan is an additional stressor all by itself.
Regardless of the person’s situation, treating people in a disrespectful manner is unethical. This isn’t just about poor phone etiquette. Treating people in a dignified and respectful manner is fundamental to all human relationships and critical for the success of any organization. When the phone is answered with a gruff -What?- there is something fundamentally wrong with this organization. It is indicative of why the stock is underperforming and the company is on the sales block.
Ethics is fundamental to every human relationship and is the critical success factor for any business. One study showed that over the past 5 years, companies with high ethical standards outperformed the S&P 500 by over 200%.
Ethics involves the values and principles that frame all relationships. It is neither finance, nor strategy, nor technology nor teamwork that gives a company a competitive advantage. It is ethics. Consider your own buying habits. Businesses that produce quality products or services and treat their customers fairly will always have extremely satisfied customers. These are the companies that you will consistently do business with.
Even if a company has a great product or service but treats its customers unfairly or dishonestly will not survive. Blockbuster’s recent “bait and switch" with late fees is a good example of how dishonest corporate behavior drives away customers. Customers will not come back a second time.
Employee loyalty increases six times in ethical companies. The same is true with employees. If we think of employees as customers--people who have choices about where they want to work--employees will seek other employment if they feel they are being treated unethically. On the contrary, a study by the Hudson group shows that employee loyalty increases six times when employees perceive management as being ethical. Perhaps even more startling is the 2001 report by the Cherenson Group that stated 78% of employees will prefer to work for a company with high ethical standards than make more money. Imagine the competitive advantage any company has with such loyal and dedicated employees!
Paying attention to ethics improves customer service. Here are three simple rules for incorporating ethics into an organization’s culture which will drive exemplary customer service.
Rule #1: Realize Ethics is Everywhere
First, realize that ethics is part of every decision you make. We normally think of ethics as choosing between something which is clearly wrong and something clearly right, such as falsifying sales reports in order to receive a bonus or embezzling funds to buy expensive personal gifts. These are the easy ethical decisions that we make on a routine basis, i.e. most of us make the right decision when it comes to fraud and embezzlement. However, when we think of ethics in this manner we trivialize it and minimize the influence ethics can have in transforming our businesses.
The more challenging ethical dilemmas involve not merely choosing between good and evil but rather between good vs. good--or even more challenging--good vs. best. When we expand our awareness that ethics plays a role in every decision we make, both professionally and personally, our ability for meeting daily challenges is enhanced.
Rule #2: Build up Trust
The second rule for improving customer service through ethics is to increase your trust capacity. Trust is foundational for every relationship, personal and business. If your customers don’t trust your company then the likelihood of them continuing to do business with your company is slim. Your customers will question whether your products will perform how they are supposed to perform and will doubt the quality of your services. When a product or service doesn’t meet your client’s expectations they loose trust in your company and eventually will take their business elsewhere.
When we trust others and believe they have our best interests in mind, we are willing to forgive a lot of mistakes. Think of your own relationships--whom do you trust? We trust people and businesses who keep their word. We trust people who don’t falsely advertise their talent--Fast Company reports that 33% of resumes contain lies--and we trust companies that stand behind their products and keep the promises they make. When a business claims that its product can do xyz and the product indeed fulfills the company’s promise then we grow to trust that company.
It doesn’t take much to lose trust. To build up trust and continue to make deposits in our customers’ trust accounts takes a tremendous amount of consistent effort. A few suggestions that can help you build your customers’ trust are:
Set realistic expectations for delivering your product/service in the promised timeframe
Keep your customer’s/clients best interest in mind
Readily admit a mistake, learn from it and communicate the mistake and remedy to the client in a timely fashion
Develop a keen awareness of your own and your company’s limitations that could hinder keeping the promises you have made to your customers
Rule #3: Execute with Commitment
The third rule from ethics for ensuring exemplary customer service focuses on commitment. In order for your company to “go the extra mile" you first have to complete the initial mile or miles. Commitment is perhaps the most challenging of these three rules because it involves day-to-day execution. Commitment requires vigilance to every details of your customers’ needs, even those that remain unspoken.
Consider a customer’s recent experience at a W Hotel and while standing at the check-in, talking on a cell phone, complains to her husband about a throbbing headache and a very long day. The bellman overhears the conversation and immediately brings two aspirin and a glass of water. The bellman’s reaction is not a chance occurrence. According to Carolyn Jones, W’s vice-president for HR, “We’re committed to serving what we sell."
Anything worthwhile takes commitment. From something as simple as keeping a personal new year’s resolution to the challenge of fulfilling an organization’s vision, executing with commitment is fundamental for success.
Conclusion
Few of us intentionally treat others unethically. We are usually caught up in the hectic ness of life and just aren’t thinking. Ethics raises our consciousness and expands our horizons. It causes us to ask: Why are we acting this way? Should we be doing this in the first place? How can we make it better? Ethics is just as concerned with an organization’s “big picture items" such as values, purpose and strategy as it is with day-to-day operations and it starts with something as simple as answering the phone.
Dr. Tom Hooyman is a nationally recognized ethicist who helps people and organizations work right, play nice and sleep tight. To Learn More about the difference ethics can make for your organization, please contact Tom at: 303.757.4585 • tom@ethicallyspeaking.com
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