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Richard Gee Presents....
-- THE CUSTOMER SERVICE STRATEGY
Service Quality Institute
http://www.customer-service.com
 
John Tschohl Seminars:
http://www.JohnTschohl.com
====================
Southwest Airlines
Rigorous Focus on Cost Reduction

On April 14, 2005, Southwest Airlines reported first quarter
2005 net income of $76 million. This compares to $26 million for first
quarter 2004.

Gary Kelly, CEO, stated: "Our rigorous focus on cost reduction and
successful fuel hedging program shielded us from record high energy prices
and enabled us to report our 56th consecutive quarter of profitability. For
first quarter 2005, we were 86 percent hedged, which reduced fuel and oil
expense by $155 million".

"We are 83 percent hedged for second quarter 2005 with crude oil prices
capped at $26 per barrel. We remain 85 percent hedged for second half 2005
at $26 per barrel; 65 percent in 2006 at $32 per barrel; over 45 percent in
2007 at $31 per barrel: 30 percent in 2008 at $33 per barrel; and over 25
percent in 2009 at $35 per barrel."
 
"Excluding fuel, our unit costs declined 3.8 percent. This superb
performance reflected a tremendous effort by our employees, and they
continue to work hard to improve productivity throughout our Company."

Total operating revenues for first quarter 2005 increased 12.1 percent to
$1.66 billion, compared to $1.48 billion for first quarter 2004.

This is an example of a Service Leader who has not only mastered service but
has the ability to control costs. With oil prices sky high, their ability to
hedge their fuel has protected them from out of control expense.

Great leadership, high performing employees and a service culture allow them
to be the largest and most profitable airline in the US.

====================
Handling Complaints and Solving Problems
 
When a customer has a problem, your employees need to solve the problem on
the spot. Your employees should take responsibility. 
Your employees should be honest with the customer. If you do this before the
customer calls you or explodes, your day will go more smoothly.
Unfortunately, very few people ever say; I made a mistake.
I screwed up. I am sorry it's my fault.
 
Most people try to cover their mistakes with a lie. Often, this just adds
fuel to the fire.  It destroys trust and reduces the customer's confidence
in your organization. If you are caught lying, the customer will never
believe anything you say.  Too many of us are concerned with losing face to
admit we made a mistake. If the organization is responsible just admit it.
Say we blew it. It is our fault. I am sorry. Let me tell you what we are
going to do.
 
I can count on one hand the times, in my life, I have ever heard an employee
say, I made a mistake. It is my fault. I am sorry. Think of your family. How
often when you make a mistake with your spouse, lover or kids do you say, "I
am sorry. I forgot, it is my fault".
 
When you take responsibility for a problem you restore confidence with the
customer. Trust increases. Most people will forgive an error when it is
quickly admitted and apologized for. Many people feel the error was made by
someone else.  They don't want to lose face or admit to a problem caused by
the organization. What is the big deal?
Just say, it is our fault.  I am sorry. Let me tell you what I am going to
do to solve the problem. Take action.
 
I broke my leg while pheasant hunting on February 6. I was taken into the
hospital by ambulance. A splint was put on the leg and they requested that I
see an orthopedic surgeon the following day, which I did. The doctor worked
with 3 other doctors each of whom examined my leg many times over the past 9
weeks. About 3 weeks ago when the splint came off, they put a cast on my leg
and found that my foot was turned. It is no longer straight.  On March 31, I
went in for another cast, looking at both legs sticking out of my hospital
gown, I could see that the right foot was badly turned. Instead of the
doctor saying, we have a huge problem and we need to figure out how to solve
the problem, the doctor basically said nothing except that I needed to see
another doctor on Monday. On April 6th that doctor basically did the same
thing and set an appointment for the 3rd doctor. I became very concerned.
The foot was turned way off to the right. I would find out later that it had
turned 30 degrees.
 
My confidence and trust was gone. I figured they were more concerned about
covering up the problem than fixing my foot. I got an appointment  a few
days later with the top trauma orthopedic surgeon in Minnesota.
He met with me on a Saturday. We spent one hour and he talked with me 20
times longer than the other 3 doctors combined. I switched doctors and
health care clinics. I have no idea if I will sue. Probably should because
had the problem been stopped originally I would be walking today.  Instead I
still have a leg brace, must have additional surgery and will have to spend
four more months on crutches. No tennis, no hunting and no fishing.  I asked
a good friend, Dale Anderson, M.D., who is with the same large health care
institution, what I should do with these doctors?  He said," I don't know.
I have never been sued." Dale happens to teach communications and humor, in
his spare time. He is the kind of doctor everyone wants.
 
Although the costs are very high, my health insurance will cover most of
them.  I am upset with the poor quality care by the 3 doctors who were
unwilling to confront a serious problem. The result is they lost a customer,
will have i ncredible negative word of mouth advertising and maybe a
lawsuit. I could have handled the doctor admitting a serious problem and
discussing solutions instead of hoping it would go away or not communicating
so there would not be a lawsuit.
 
It really doesn't mater what business we are on. Be honest. Tell the truth.
Take responsibility. (You might need a lot of insurance when you do this.
Some customers may die from a heart attack from pure shock that someone
would do this)
 
Let me review the tips for handling difficult situations and irate
customers. These will work about 85% of the time.  Had the 3 doctors done
this at Park Nicollet Medical Center I would still be under their care. I
just lost all confidence and trust.

Tips for providing Customer Care

Four Methods to defuse a Difficult Situation

 1. Give the Customer a warm, sincere "hello" with a smile.

 2. Anticipate the customer's complaint and head it off with a  
     sincere, concerned comment.

 3. Apologize and assume responsibility.

 4. Solve the problem promptly.


  Six steps in handling an Irate Customer

  1. Listen carefully and with interest to what the customer
      has to say.

  2. Put yourself in the customer's place, make responses 
      that show that you care and you are listening.

  3. Ask questions in a caring, concerned manner and listen
      actively to the customers answers.

  4.  Suggest one or more alternatives to answer their
       concerns.

   5. Apologize without blaming.

   6. Solve the problem or find someone who can solve it.
 
===============
John Tschohl Seminars

Customer Retention Boot camp
June 7-8, 2005 - Quito, Ecuador
With John Tschohl
INFORMATION:
Fausto Villota
President
Fundación Rehumana
Quito, Ecuador
Phone:  (593) 22 37 18 07
Cell:      (593) 99 82 81 19
E-mail: fausto.villota@servicequality.net Fausto Villota is a Service
Quality Institute Certified Consultant in Ecuador.

If you want to receive more information
about the Boot camp and get a copy of the brochure, send an email with your
contact information (including name, company, position, address and phone
number) to:
servicio@servicequality.net
For faster service please write "Ecuador Boot camp" in the subject line.

Dar es Salaam,   Tanzania
September 5-6, 2005
Rosemary Kitillya
Managing Director
H & R Consultants Ltd
PPF Tower Bldg, 12th Floor, North Wing
Garden Avenue / Ohio Street
PO Box 70703
Dar es Salaam,   Tanzania
Tel: 255-22-2130073
E-mail: handrt2002@yahoo.com

John Tschohl traveled throughout the world last year lecturing on customer
service. His keynote presentations and one and two day seminars are well
attended. They provoke executives and leaders to think. He can help your
organization build a stronger commitment toward superior service.

John is able to handle any size audience. His energy and excitement will
build passion, among your leadership team and employees, toward a service
strategy. Contact your local representative or John@servicequality.com if
you would like to use him in 2005 or 2006.
You can view his marketing video for free at http://www.JohnTschohl.com
==================== May 23-26 / September 12-15, 2005 · Certified Customer
Service Leader (CCSL) (3 days) $998

· Leading Empowered Teams for Service Quality.  For all those in
  leadership and management positions.  (2 days)  May 23-24 &
  September 12-13, 2005.

Leading Empowered Teams is built on helping you learn how to identify the
gaps preventing you from being a Service leader, empowerment, how to coach
an empowered and Service driven team and how to use teamwork to pull
everyone together.

·Feelings teaches the fundaments of customer service. (1 day)

· Certified Customer Service Trainer (CCST)  (4 days) $1997

· Leading Empowered Teams (2 days).

· Feelings (1 day)

· Train the Trainer Seminar, (1 day) May 26 & September 15, 2005.
   Be certified and trained to conduct both of these
   programs internally.

====================

Service Quality Institute publishes The Customer Service Strategy To submit
ideas, questions or topic ideas, send an e-mail to
quality@servicequality.com

====================

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