Thursday, February 18, 2010

Customer service or not....bad service will hurt your bottom line




Customer service or not


Ok this is a rant, but hopefully it will be a constructive rant, how is your customer service performance, take a minute and rate yourself ? go for broke, pick a customer at random and ask them how your customer service was, ok take the step of the cliff, and ask a customer who had a problem with your company, what they thought. I think that would probably make you smile or maybe wince, I have had occasion during the last two days that ended up with me making a formal complaint, one was my housebuilder Meridian homes ( www.meridianresidential.co.uk) , the other my Bank "The halifax"(
www.halifax.co.uk ). The scores on the door is Meridian 1, Halifax 0, this is the second time the Halifax have messed up big time, and this time will be the last. Meridian after a slow start came back strong and are sorting things out, The Halifax well, they do not bother about who they mess up unless it is there good friend Gordon Brown, who likes to spend our money and give it to the banks to spend on bonuses for the fat cats ( http://news.bbc.co.uk/1/hi/business/7666570.stm) and http://preview.tinyurl.com/yaxyd5x . I do think the Government had to help out, but with the lack of morals the banks have shown, you would think the Government would have sorted them out, but I am sure there will be a few board positions opening up for them soon.

But that is enough of the rant, please have read at this article I found on BNET , it is an interesting slant on how a third party can effect your own customer service rating.



Even champions of customer service can get it wrong, especially if they leave their reputations in the hands of third parties, as John Lewis Partnership (JLP) supermarket chain Waitrose appears to have done.

I was forwarded a blog by Mark Samuels in which he complains of being charged £25 for having his car parked outside a London branch of Waitrose for more than two hours. (Personally, I think anyone who spends longer than two hours in a supermarket should be awarded £25.)

Samuels was understandably infuriated by this disproportionate fine for overstaying his allotted time in the parking space and wrote a letter of complaint to the Waitrose customer service department. He received a quick response, but was told that the car park for that branch was run by a third party, Britannia Parking, and he’d have to take his grievance up with that company.

Digging around, I’ve discovered a number of consumer forums where Waitrose customers are complaining of being stung with large fines for parking longer than two hours in other Waitrose parking lots run by the same company (Waitrose has different arrangements with other private companies and local authorities, so not all stores are affected).

Some have raised questions over the legality of these fines and Britannia Parking’s adherence to car parking regulations.

Other complaints are around inadequate warnings for shoppers that they risk a fine if they occupy a parking space for too long.

Whether or not Britannia is within its rights to levy these fines, it is Waitrose’s customer service reputation that is suffering.

Such is the consternation over these parking fines, one customer has even complained about it on the official Waitrose website forum. This complaint was replied to with the same form-letter sent to Samuels, only with a different branch substituted.

Waitrose, like its sister brand John Lewis, ranks highly in customer service surveys and trades on its reputation. In this instance, though, it has come away looking like it doesn’t care how its customers feel.

At the centre of this gaffe is the strategy of using a third party to handle a part of its customer interaction — parking facilities. Waitrose clearly has no control over what customer service strategy Britannia Parking decides to adopt, but shoppers won’t make the distinction. They see themselves as Waitrose customers, being unaware of the existence of Britannia Parking until they are handed a fine.

Bad news can spread fast. There’s a danger more customers will launch forum discussion strings and tweet about bad experiences. If a form letter on its own site is an indication of Waitrose’s response, it seems it’s unprepared to deal with online customer dissatisfaction.

And what does its parking policy say? At the very least, it puts out the message that shoppers are welcome at the stores, but only for a limited time.

For a retailer that otherwise holds the views of its customers so dear, this is a curious strategy and it really should know better.

In the retailer’s defence, a spokeswoman for Waitrose said: “We pride ourselves on ensuring our customer’s shopping experience with us is an enjoyable one from the moment they arrive at the store, which includes providing convenient access to car parking spaces. We therefore employ companies, where required, to manage Waitrose-owned car parks to ensure that this is the case.

“We are always careful to ensure signage is clear to let customers know what the terms of parking are, however, our branch managers generally know their customers well and we trust them to exercise their discretion. In practice this means being flexible over parking limits if they know that a particular customer needs extra time to do their shop. We would welcome any customer who believes they have been given an unfair parking fine, to speak to a member of the branch management team.”





Friday, January 29, 2010

The myth of the NDA


I have been asked in some strange situations to sign an NDA, and never thought to ask a VC to sign one, I found this post by Christian Mayaud www.sacredcowdung.com and I think it will help those who struggle with this topic. I have just worked out the cost of managing NDA's for this project I have been working on for the last two years and it comes close to £100k.

REALITY: Nothing Screams "I'm Clue-less" Louder than asking for an NDA.
Read my lips: "NDAs are
a) Unenforceable and
b) Even suggesting an NDA makes you look like a complete idiot."

The request to sign an NDA is yet another red flag that VCs see all the
time. So let's set the scene: VC enters the conference room where the
entrepreneur is about to present -

Clue-less Entrepreneur: "Would you mind signing an NDA first?"
VC: "No problem." (VC thinks: "Oh man. Not another one!")

(Use of the word "one" refers equally to the NDA and the entrepreneur)

What is the entrepreneur really saying when requesting that executed NDA?
a) "You might be a crook."
b) "What I am about to reveal to you is so earth-shattering that it is a
distinct possibility that you will drop everything in your life and try to
steal my idea and do it without me."
c) "If I force you to sign an NDA, you will think I am being a responsible
businessman. "
d) "My ideas will seem much more important if you have to sign an NDA first."
e) "I need to guarantee you will never ever reveal to the world how truly
stupid my ideas are."
From my experience, only answer "e" makes sense to me. Over the years, I've
signed hundreds, if not thousands, of NDAs. And, so far, I have yet to
learn anything from the subsequent disclosure which -
I didn't know already,
I hadn't seen at least ten times before,
Wasn't easily discovered in the public record,
Wasn't generally known by industry participants, or
Wasn't so stupid, mundane, or derivative that I couldn't imagine why
anyone would ever consider wasting any time on it.

So it’s always being hard for me to take anyone seriously if they request an
NDA. From my own past, I can dredge up two relevant stories:

Story #1
in the mid-1980, I was working late one night with a patent attorney.
Being a curious, but naive, engineering graduate student, I asked the patent
attorney if people ever had to worry about their patent attorney stealing
their ideas:

Attorney: "Hmmmm . Only in the unlikely scenario that the attorney could be
guaranteed at least $5 million in cash."

Me: "Huh?"

Attorney: "Well, I figure $5 million is the life time earnings of a typical
patent attorney."

Me: "Huh?"

Attorney: "Well, if a patent attorney was ever caught stealing a client's
ideas, he would never be able to work again - so really, the temptation to
steal an idea would only be if - a) it was a guaranteed pay-out, and b) the
pay-out exceeded his subsequent lifetime earnings."

Me: "Gee, that makes sense."

(In retrospect, what I should have said was: "Gee, it's comforting to know
I'm working with a patent attorney who has thought through so precisely
under what circumstances it would be appropriate to consider stealing a
client's ideas." )

Of course, being a chronically naive idiot, I didn't really appreciate what
he had just told me . which bring me to -

Story #2

It's the early 1990s and I'm visiting the first VC on the road show for my
first venture-backed company -
Me: "Gee, would you mind signing an NDA first?"
(I remember being so proud at the time that I even knew what an "NDA" was.
One of those "insider acronyms" that would surely prove I was part of "the
club.")
The Kind and Patient VC: "Sure . no problem."
(He signed it without hesitation and handed it back to me.)

Me: "Gee, thanks."

The Kind and Patient VC: "By the way, do you mind me letting you in on a
little secret?"

Me: "Wow! . sure thing!"

The Kind and Patient VC: "It's something you should probably think about
from time to time. Building companies is really all about execution - not
ideas .you know - the old 5% inspiration, 95% perspiration rule .Anyway, no
matter how great your ideas are and now matter how great your plan is, it's
unlikely anyone will ever understand those ideas and plans better than you."
Me: "Uh? . Yeah?"

The Kind and Patient VC: ". and people like me, who make a living working
with people like you, would always chose to work with you first ."

Me: "Uh? . Yeah .OK ."

The Kind and Patient VC: " . and the truth is - most people never act on
ideas or plans anyway - you know: never really commit to the whole
perspiration part ."

Me: "Uh? .Huh?"

The Kind and Patient VC: "Let me explain it this way - Even if you were to
go down to the corner of Broad and Wall Street - ground zero for the
financial markets - and randomly pass out 1000 copies of your business plan,
no one will ever execute that plan without you - no matter how great it is."

Me: "Uh? .Oh . soooo, you're saying I'm an idiot for asking you to sign that
NDA."

The Kind and Patient VC: "No . just reminds me you're a little green."

Okay. I'm a little slow, but I finally got it -

Key Principle: CONTEXT = TRUST

- not an NDA!

Am I saying an NDA is NEVER called for?

Pretty much . It's a little like asking an Eskimo to agree in writing to
never use a refrigerator . It would be a very very rare circumstance indeed