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Gary McNeil
Vice President of Marketing
                              The Nordstrom Way to
Parature                      Customer Service
Robert Spector
International Best Selling
                              Excellence
Author and Trainer
THE COLLAPSE OF DEMAND




                      …customers are
 Although there         buying less –
may be signs of a        demand is
   recovery…          recovering slowly
THE CUSTOMER HAS NEVER BEEN MORE IMPORTANT



• In light of sales teams selling
  less - organizations are focused
  on:
   Customer retention
   Customer upsell and cross
     sell opportunities
   Lifetime value of a customer
   Overall revenue from the
     customer base
THE SHIFTING FOCUS: FROM HUNTERS TO FARMERS

        Falling Disproportionally on the Customer
                    Support Function
The focus has shifted to further
monetizing the customer base…




                                   …placing new found responsibilities on the
                                               support function
THE CHANGING PREFERENCES OF YOUR CUSTOMER

                     If You Build it They Will Come

The challenge isn’t driving customers to
       leverage self-service…




                                           … it’s keeping them there
THE IMPLICATIONS OF GETTING IT WRONG
 Costing You Money Now and Later
SERVICE HAS BECOME A MAJOR DIFFERENTIATOR



• Improving the customer experience
   Multi-channel support
     • Providing support in the manner by which the
       customer wants it
• Reducing customer effort
   Delivering on the promise of first contact
    resolution
     • The result is reduced frustration
• Increasing customer loyalty
   By reducing customer effort you increase
    customer loyalty
     • Increased loyalty is a game changer
PARATURE

       Parature is a global leader in on-
       demand software (SaaS) for customer
       service and support

       Parature enables organizations to:

       • Reduce the cost of supporting their
         customers
       • Have a 360 view of customer issues
       • Retain their customers
       • Improve customer loyalty
       • Generate more revenue from their
         base
       • Deliver ―great‖ customer service
PARATURE: AN INTEGRATED SUPPORT SUITE
      Customer Touch Points                                                Service Desk
  Delivering Multi-Channel Support                    For your CSR’s to Manage All Customer Interactions



                                                               Metrics &         Deploy       Feedback
                                                                Reports          Surveys
                       Chat



                                            Ticket
      Forums           ?




Downloads
                Your Customer                                                                        Your CSR
                                             Mobile




      E-Mail
                            Knowledge-                                  360º
                                                                      Customer         Intelligent
                           base and FAQ’s                                               Workflow
                                                                       History
               Phone
                                                                           Service Desk
800 CUSTOMERS ACROSS INDUSTRIES & MARKET SEGMENTS


Technology               Business Services   Gaming and Digital Media




Education                  Associations            Healthcare
The Nordstrom
 Way to Customer
Service Excellence
ASK YOURSELF 3 QUESTIONS:


1. Am I offering a better product or service than
                my competitors?

   2. Am I selling a less expensive product or
        service than my competitors?

3. Am I offering customer service that is superior
            to that of my competitors?
Customer service is
  not a strategy.
Customer service is
   a way of life.
―CONSUMERS ARE
   STATISTICS.
 CUSTOMERS ARE
    PEOPLE.‖
       -Stanley Marcus
The
Customer Service
  Department
Each and Every one
      of you
     is in the
 Customer Service
   Department.
The Key:
  Think like
the customer
“THE NORDSTROM OF…”

• Tanning Salons
• Hot tubs
• Collision repair
• Down payment assistance
• Tree farms
• Plumbers
• Dentists
• Real estate
• Garbage
―Eyes may be the
windows to the soul, but
shoes are the gateway to
      the psyche.‖
        -Linda O’Keefe, Shoes
PETE, BLAKE AND ERIK NORDSTROM
NINE MANAGEMENT PRINCIPLES OF CUSTOMER SERVICE
PART I

      Romancing Your Customer
1. Create an inviting place- in person, online and
   on the phone.

2. Provide your customers with choices- of
   products, services, and service channels.

3. Sell the relationship: Service your customers
   through the products and services you offer.
PART II

     Energizing Your Employees
4. Hire nice, motivated people.

5. Empower employees to take ownership.

6. Sustain the people on the frontlines
   through a culture of support and
   mentoring.
PART III

Building Your Customer Service Culture

7. Celebrate company heroes through
   recognition and praise.
8. Advocate teamwork through internal
   customer service.
9. Commit 100% to customer service.
1.   Provide your customers with choices- of products, services, and service
     channels.

2.   Create an inviting place- in person, online and on the phone.

3.   Sell the relationship: Service your customers through the products and services
     you offer.

4.   Hire nice, motivated people.

5.   Empower employees to take ownership.

6.   Sustain the people on the frontlines through a culture of support and
     mentorship.

7.   Celebrate company heroes through recognition and praise.

8.   Advocate teamwork through internal customer service.

9.   Commit 100% to customer service.
Part One-
Romancing Your
     Customer
#1



 Provide your customers
      with choices-
of products, services, and
    service channels.
#2



    Create an
  inviting place
in person, online,
and on the phone.
―The Nordstrom piano
doesn’t take up much
room. It’s a small idea,
but it’s a genius idea.‖
    -Leonard Lauder, Retired Chairman, Estee
                                 Lauder Cos.
“A PLACE TO REST”


I followed my wife while she shopped.
From store to store she went.

I, the great man, was spent.
The flesh pulled on my bones like two bags of cement.

At last I found a chair.
Heaven only could have been more fair.

Of all the stores, Nordstrom was best.
They gave a husband a place to rest.
Have you created an
inviting place for your
      customers?
Have you created an
       inviting,
     easy-to-use
      Web site
for your customers?
THE TELEPHONE
#3


Sell The Relationship
Service your customers
 through the products
and services you offer.
MEASURE BOTH FEET
Nurture your relationship
 (partnership) with your
 vendors and suppliers.
Part II-
Energizing Your
    Employees
#4




      Hire
nice, motivated
    people.
Hire the smile.
 Train the skill.
#5




Empower employees
 to take ownership.
―I like the freedom.
It’s like I have my
own little business-
my own men’s
store.‖
               -Salesman,
         Men’s Furnishings
―The minute you come up with a rule
you give an employee a reason to say
 no to a customer. That’s the reason
            we hate rules.‖
                   -James F. Nordstrom,
                     former co-chairman
It all starts with the
        culture.
―The same principles that were here
before I got here will be in place after I
retire….
You can’t teach culture. You have to
live it, experience it and show it.‖
                              -Brent Harris,
                         Vice President and
                         Regional Manager
The Importance of
     Values
―People always ask me, how do you
teach core values?
The answer is, you don’t. The goal is
not to convince people to share your
core values. It’s to hire people who
already share your core values.‖
                      -James Collins, Author,
                              “Built to Last”
#6



    Sustain the people
on the frontlines through a
         culture of
 support and mentoring.
MENTORING EMPLOYEES
•   Show videotaped interviews with top
    salespeople who offer tips and advice.
•   Use frequent staff meetings as workshops for
    salespeople to compare, examine, and
    discuss sales techniques.
•    Act out skits in which employees play the
    roles of salesperson and customer.
•   Encourage top salespeople to talk to fellow
    employees about goal-setting, marketing,
    selling, using the phone, and customer
    service.
CUSTOMERS

 SALES & SUPPORT PEOPLE



   DEPARTMENT MANAGERS



STORE MANAGERS, BUYERS, ETC.


     BOARD OF DIRECTORS
Part III-
Romancing Your
     Customer
#7



Celebrate company
 heroes through
 recognition and
      praise.
―Whatever their level of the
Inverted Pyramid, employees want
to feel needed and valued.
Recognition reinforces the areas
that we want to focus on all the
time, like service.‖
            -A Nordstrom Store Manager
Recognition
 Meetings
ELEMENTS OF GOOD RECOGNITION MEETINGS

Demonstrate sincere, authentic
appreciation for the people you are
honoring.

Emphasize team spirit.

Teach people something new.

Perpetuate the culture—What makes
your company unique?
#8




Advocate teamwork
  through internal
 customer service.
Teamwork creates a
sense of ownership.
What’s the key to internal
 customer service and
      teamwork?
Communication
―My customer service is to my
managers and my salespeople
because they are talking to the
customers. I need their feedback to
help shape my buy.‖
            -Women’s Sportswear Buyer
#9




 Commit 100%
      to
customer service.
1.   Provide your customers with choices- of products, services, and service
     channels.

2.   Create an inviting place- in person, online and on the phone.

3.   Sell the relationship: Service your customers through the products and services
     you offer.

4.   Hire nice, motivated people.

5.   Empower employees to take ownership.

6.   Sustain the people on the frontlines through a culture of support and
     mentorship.

7.   Celebrate company heroes through recognition and praise.

8.   Advocate teamwork through internal customer service.

9.   Commit 100% to customer service.
Be nice.
Robert Spector
 www.robertspector.com

ThinkLikeTheCustomer.com
QUESTIONS?

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 blog.parature.com

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The Nordstrom Way To Customer Service Excellence

  • 1. Gary McNeil Vice President of Marketing The Nordstrom Way to Parature Customer Service Robert Spector International Best Selling Excellence Author and Trainer
  • 2. THE COLLAPSE OF DEMAND …customers are Although there buying less – may be signs of a demand is recovery… recovering slowly
  • 3. THE CUSTOMER HAS NEVER BEEN MORE IMPORTANT • In light of sales teams selling less - organizations are focused on:  Customer retention  Customer upsell and cross sell opportunities  Lifetime value of a customer  Overall revenue from the customer base
  • 4. THE SHIFTING FOCUS: FROM HUNTERS TO FARMERS Falling Disproportionally on the Customer Support Function The focus has shifted to further monetizing the customer base… …placing new found responsibilities on the support function
  • 5. THE CHANGING PREFERENCES OF YOUR CUSTOMER If You Build it They Will Come The challenge isn’t driving customers to leverage self-service… … it’s keeping them there
  • 6. THE IMPLICATIONS OF GETTING IT WRONG Costing You Money Now and Later
  • 7. SERVICE HAS BECOME A MAJOR DIFFERENTIATOR • Improving the customer experience  Multi-channel support • Providing support in the manner by which the customer wants it • Reducing customer effort  Delivering on the promise of first contact resolution • The result is reduced frustration • Increasing customer loyalty  By reducing customer effort you increase customer loyalty • Increased loyalty is a game changer
  • 8. PARATURE Parature is a global leader in on- demand software (SaaS) for customer service and support Parature enables organizations to: • Reduce the cost of supporting their customers • Have a 360 view of customer issues • Retain their customers • Improve customer loyalty • Generate more revenue from their base • Deliver ―great‖ customer service
  • 9. PARATURE: AN INTEGRATED SUPPORT SUITE Customer Touch Points Service Desk Delivering Multi-Channel Support For your CSR’s to Manage All Customer Interactions Metrics & Deploy Feedback Reports Surveys Chat Ticket Forums ? Downloads Your Customer Your CSR Mobile E-Mail Knowledge- 360º Customer Intelligent base and FAQ’s Workflow History Phone Service Desk
  • 10. 800 CUSTOMERS ACROSS INDUSTRIES & MARKET SEGMENTS Technology Business Services Gaming and Digital Media Education Associations Healthcare
  • 11. The Nordstrom Way to Customer Service Excellence
  • 12. ASK YOURSELF 3 QUESTIONS: 1. Am I offering a better product or service than my competitors? 2. Am I selling a less expensive product or service than my competitors? 3. Am I offering customer service that is superior to that of my competitors?
  • 13. Customer service is not a strategy.
  • 14. Customer service is a way of life.
  • 15. ―CONSUMERS ARE STATISTICS. CUSTOMERS ARE PEOPLE.‖ -Stanley Marcus
  • 16. The Customer Service Department
  • 17. Each and Every one of you is in the Customer Service Department.
  • 18. The Key: Think like the customer
  • 19.
  • 20. “THE NORDSTROM OF…” • Tanning Salons • Hot tubs • Collision repair • Down payment assistance • Tree farms • Plumbers • Dentists • Real estate • Garbage
  • 21.
  • 22.
  • 23.
  • 24. ―Eyes may be the windows to the soul, but shoes are the gateway to the psyche.‖ -Linda O’Keefe, Shoes
  • 25.
  • 26. PETE, BLAKE AND ERIK NORDSTROM
  • 27. NINE MANAGEMENT PRINCIPLES OF CUSTOMER SERVICE
  • 28. PART I Romancing Your Customer 1. Create an inviting place- in person, online and on the phone. 2. Provide your customers with choices- of products, services, and service channels. 3. Sell the relationship: Service your customers through the products and services you offer.
  • 29. PART II Energizing Your Employees 4. Hire nice, motivated people. 5. Empower employees to take ownership. 6. Sustain the people on the frontlines through a culture of support and mentoring.
  • 30. PART III Building Your Customer Service Culture 7. Celebrate company heroes through recognition and praise. 8. Advocate teamwork through internal customer service. 9. Commit 100% to customer service.
  • 31. 1. Provide your customers with choices- of products, services, and service channels. 2. Create an inviting place- in person, online and on the phone. 3. Sell the relationship: Service your customers through the products and services you offer. 4. Hire nice, motivated people. 5. Empower employees to take ownership. 6. Sustain the people on the frontlines through a culture of support and mentorship. 7. Celebrate company heroes through recognition and praise. 8. Advocate teamwork through internal customer service. 9. Commit 100% to customer service.
  • 33. #1 Provide your customers with choices- of products, services, and service channels.
  • 34. #2 Create an inviting place in person, online, and on the phone.
  • 35.
  • 36. ―The Nordstrom piano doesn’t take up much room. It’s a small idea, but it’s a genius idea.‖ -Leonard Lauder, Retired Chairman, Estee Lauder Cos.
  • 37. “A PLACE TO REST” I followed my wife while she shopped. From store to store she went. I, the great man, was spent. The flesh pulled on my bones like two bags of cement. At last I found a chair. Heaven only could have been more fair. Of all the stores, Nordstrom was best. They gave a husband a place to rest.
  • 38. Have you created an inviting place for your customers?
  • 39. Have you created an inviting, easy-to-use Web site for your customers?
  • 41.
  • 42. #3 Sell The Relationship Service your customers through the products and services you offer.
  • 44. Nurture your relationship (partnership) with your vendors and suppliers.
  • 45.
  • 47.
  • 48. #4 Hire nice, motivated people.
  • 49. Hire the smile. Train the skill.
  • 50. #5 Empower employees to take ownership.
  • 51. ―I like the freedom. It’s like I have my own little business- my own men’s store.‖ -Salesman, Men’s Furnishings
  • 52.
  • 53.
  • 54. ―The minute you come up with a rule you give an employee a reason to say no to a customer. That’s the reason we hate rules.‖ -James F. Nordstrom, former co-chairman
  • 55. It all starts with the culture.
  • 56. ―The same principles that were here before I got here will be in place after I retire…. You can’t teach culture. You have to live it, experience it and show it.‖ -Brent Harris, Vice President and Regional Manager
  • 58. ―People always ask me, how do you teach core values? The answer is, you don’t. The goal is not to convince people to share your core values. It’s to hire people who already share your core values.‖ -James Collins, Author, “Built to Last”
  • 59. #6 Sustain the people on the frontlines through a culture of support and mentoring.
  • 60. MENTORING EMPLOYEES • Show videotaped interviews with top salespeople who offer tips and advice. • Use frequent staff meetings as workshops for salespeople to compare, examine, and discuss sales techniques. • Act out skits in which employees play the roles of salesperson and customer. • Encourage top salespeople to talk to fellow employees about goal-setting, marketing, selling, using the phone, and customer service.
  • 61. CUSTOMERS SALES & SUPPORT PEOPLE DEPARTMENT MANAGERS STORE MANAGERS, BUYERS, ETC. BOARD OF DIRECTORS
  • 63. #7 Celebrate company heroes through recognition and praise.
  • 64. ―Whatever their level of the Inverted Pyramid, employees want to feel needed and valued. Recognition reinforces the areas that we want to focus on all the time, like service.‖ -A Nordstrom Store Manager
  • 66. ELEMENTS OF GOOD RECOGNITION MEETINGS Demonstrate sincere, authentic appreciation for the people you are honoring. Emphasize team spirit. Teach people something new. Perpetuate the culture—What makes your company unique?
  • 67. #8 Advocate teamwork through internal customer service.
  • 68. Teamwork creates a sense of ownership.
  • 69. What’s the key to internal customer service and teamwork?
  • 71. ―My customer service is to my managers and my salespeople because they are talking to the customers. I need their feedback to help shape my buy.‖ -Women’s Sportswear Buyer
  • 72. #9 Commit 100% to customer service.
  • 73. 1. Provide your customers with choices- of products, services, and service channels. 2. Create an inviting place- in person, online and on the phone. 3. Sell the relationship: Service your customers through the products and services you offer. 4. Hire nice, motivated people. 5. Empower employees to take ownership. 6. Sustain the people on the frontlines through a culture of support and mentorship. 7. Celebrate company heroes through recognition and praise. 8. Advocate teamwork through internal customer service. 9. Commit 100% to customer service.
  • 75.
  • 77. QUESTIONS? Follow Parature on: blog.parature.com www.facebook.com/parature www.twitter.com/parature www.youtube.com/paratureinc www.slidesharenet.net/parature www.parature.com/rss

Editor's Notes

  1. Although there may be signs of a recoveryCustomer purchasing behaviors have changed – they’re simply buying less…and will be for the foreseeable futureTransition – cs&s is changed
  2. They represent what’s most importantTop-line revenueRecurring revenueCosts – if not managed correctlyCritical information to better inform sales, mktg, pd, and financeLeading KPI’s (key performance indicators)RRRepeat purchaseX-sell oppty’sUp-sell oppty’sProduct feedbackAdvocacy - positive and negative
  3. Customer requirements are changing – in addition to becoming more web savvy overall preferences are migrating to web self-service models.While there’s an urgency premium associated with the phone, the reality is the customers marginally prefer the phone over web self-serviceEven in urgent situations, customers appear to trust the information they receive on-line and trust that ultimate resolution will occurCustomer preference for the phone over self service occurs with end users 51+ years in ageWeb self service extends well beyond the X’ers and Millennial generations Net-net the challenge isn\'t getting your customers to the web – it’s keeping them there. Many CS&S functions find themselves in the loose-loose box – customers initially go to self-service channels, yet end up picking up the phone due to poor self-service experience.No tolerance for bad serviceThey’re demanding a better customer experience:24x7 support – (near real time response rates)Native language supportEase of useConsistency / familiarity Multi-channel supportWeb – KBChatE-mailDiscussion groups / forumsMobilitySocial media environments (cloud)