Uncommon service

In the competitive landscape of service industries, achieving and funding service excellence is a multifaceted challenge. It requires a deep understanding of industry dynamics and customer relationships. Companies must navigate the delicate balance between enhancing service quality and managing costs effectively.

One approach is to identify customers willing to pay a premium for superior service. Starbucks, for example, charges more for its coffee but offers a comfortable, linger-friendly environment. However, the premium customers are willing to pay varies significantly across industries. Missteps in this area can lead to customer backlash and a loss of trust.

Another strategy involves making cost reductions that simultaneously improve service. Progressive Insurance, for example, has implemented immediate response vans that provide better customer service and reduce fraud and disputed claims, leading to substantial savings. Similarly, Intuit has improved its software by having its product development team provide phone support, leading to better future versions and reduced tech support costs.

Creating a successful service model in a business isn't just about hiring exceptional employees; it's about designing a system that enables even average employees to consistently deliver excellent service. This approach involves several key strategies.

Firstly, it's crucial to recruit frontline service specialists who are passionate about providing outstanding service and treat them as a privileged class within the organization. Support from management and backroom teams is essential to set these individuals up for success. This involves selecting people who are not only skilled but also genuinely enthusiastic about their roles.

Training is another critical component. New hires should be given ample time to fully integrate into the company's culture, which goes beyond just learning the technical aspects of their jobs. This cultural immersion can take months and requires a significant investment in terms of time, energy, and resources.

Simplifying the job is also important. By automating and streamlining processes, employees can focus more on delivering great service rather than getting bogged down by complex tasks. It's necessary to regularly review and simplify job descriptions as complexity tends to creep back in over time. Providing the right IT tools and solutions that support rather than hinder employees is also a part of this simplification process.

Involving customers in creating a remarkable service experience can lead to their appreciation and loyalty. However, this approach comes with unique challenges. Customers need to be equipped with the right tools and training to contribute effectively, and businesses must provide the necessary guidance and management to support them.

Customers are not just passive recipients of services; they actively shape the service experience. For instance, a customer taking too long to order in a fast-food line slows down service for others, a consulting client's vague goals can lead to imprecise advice, and diners lingering over coffee can disrupt the schedule for subsequent reservations. These scenarios illustrate the concept of "customer operators," where customers are involved in the service process.

However, customers can be unpredictable and may feel entitled, yet they do not require salaries or benefits. Managing customer variability is essential, and businesses can either reduce it by limiting options or accommodate it by catering to individual preferences. While the former enhances efficiency, the latter prioritizes service quality but is typically more costly. Self-service models have emerged as a solution, allowing customers to tailor their experience to their preferences without the need for extensive labor management.

To achieve exceptional service, it is essential to develop a service model within an organizational culture that supports and enhances your objectives. Aligning your business model with your culture is crucial, especially if customers are actively involved in the service process. Transparency is key; there should be no hidden secrets within the culture that could undermine your service model.

After establishing a solid service offering, securing funding, and ensuring that both employee and customer management systems are operational, the next vital component is the interaction between your people. This interaction defines the culture of your organization. Frances Frei and Anne Morriss emphasize that uncommon service is the result of a well-designed service model meeting a culture of service excellence. They suggest that service excellence is a combination of design and culture.

The culture of an organization amplifies the impact of its service offering. In successful organizations, the service design and the culture that drives it are aligned and mutually reinforcing. The three pillars of a strong culture include clarity about the culture needed to succeed, effective signaling of cultural norms and values, and consistency between the desired culture and the organization's strategy, structure, and operations.

For instance, Zappos, under the leadership of Tony Hsieh, is renowned for its clear and celebrated company culture, which is detailed in their annual Zappos Culture Book. Zappos' culture is built on ten core values, including delivering exceptional service and embracing change. Similarly, JetBlue's founder, David Neeleman, demonstrated the company's commitment to service by personally serving passengers, reinforcing the company's mission to "bring humanity back to air travel."