The Psychology of Customer Service

Here is the transcript from the video:

Ty –
Hi, my name is Ty Bennett, I’m the author of The Power of Influence and The Power of Storytelling and in today’s video we are going to share with you the Psychology of Customer Service. I say we because I have a coaching client and friend Sydne Jacques here with me in studio and Sydne and I will be doing this video together.
Sydne, thanks for being here.

Sydne –
I’m happy to be here.
Ty –
Sydne, let me brag on you for a minute – for those of you who don’t know Sydne – she is the Founder and CEO of Jacques and Associates, which is an multi-million dollar, award-winning engineering firm. Sydne is the also an amazing speaker and expert on creating distinction and as we were discussing customer service one day, we broke down the psychology of customer service and that is where this video is coming from.

So let’s talk about our world today. We are in a storytellers world. What do I mean by that? In today’s economy, word of mouth and recommendation marketing is at it’s peak. Due to social media our world has become connected and more than ever we rely on the experiences, recommendations and stories of others to make choices on what products we buy, who we do business with and what places we visit. That is why customer service in today’s world is paramount. Quality of product is no longer a competitive advantage in the market place because everyone has quality products. The way you deliver those products, service your clients and handle their needs though will differentiate you. Your customer service will make you or break you. That is why it is crucial that you understand the psychology of customer service.

But before we dive in, there is one other point that we need to understand. I don’t know what you do for a living, but I do know that every business in the world is based on two things. Volume and Retention. Whether you work in a restaurant, or you own an engineering firm like Sydne or you built a business in direct sales like I did, all businesses are based on volume and retention. It is the amount of people you get in the door and how often they come back. That is what drives business. So with that in mind, let’s break down the psychology of customer service.

Sydne –
Throughout the 20 years I have run our company, customer service has been a major focus. I constantly stress with my team the need to amaze our clients with the level of service we provide because ultimately we want them to go out and tell great stories about us. There are four levels of customer service and Jim Pancero, a sales strategist, explained them to me very simply. The first level is assumed. This is a basic level of customer service that we just assume will take place. The second level is expected. There are things our clients expect and when we deliver what’s expected or assumed it really doesn’t make much of an impact but if we don’t deliver what is assumed or expected, it is a disaster. The third level is impressed. If we go above and beyond or deliver with efficiency then we can impress our clients or potential clients. And the fourth level is amazed. It’s level four customer service that should be all of our focus if we want to stand out and we want people to talk about us, but I’ve found that these levels are sequential. We need to know what is assumed and expected and deliver on those things consistently before we can look for ways to impress and amaze.

Before Sydne explained the four levels of customer service I mentioned that all business is based on volume and retention. So let’s look at customer service from that standpoint. When you deliver at level one; Assumed, you end up with insufficient volume and no retention.
At level two; expected, you have increased volume (not earth shattering but a little increase) and possible retention. When we feel like we can count on good customer service we might come back.
At level three we begin to impress. We are moving from good to great. That creates considerable volume and probable retention. The likelihood of repeat business is higher when we have a good experience.
And at level four, if we amaze them, we end up with consistent volume and guaranteed retention. Every business in the world is looking for consistent volume and guaranteed retention. And assuming that your product is good then your customer service drives this volume and retention.
Look at the chart, as we better our customer service it directly impacts volume and retention.

Sydne –
The other piece of this that I always focus on is the relationship we create with our customers and clients. At level one, if all we hit are assumed needs, then we have a transactional relationship. When we go to level two, expected, we create an acquaintance. They are familiar with us, but we can’t expect loyalty. When we begin to impress at level three, that’s when we form a relationship. They know us and we know them. We invest time and attention into them and it pays off. Then building on that relationship, at level four we amaze them and create loyalty. That is what we really want. The cool part is in today’s world, in many cases when we amaze people with our customer service, we end up creating brand ambassadors as well because they are going to share their experience with others and recommend us.

So as we move up the levels of customer service it impacts volume and retention like Ty taught us but it also changes the relationship from a simple transaction to creating loyalty.

Ty –
Understanding the psychology of customer service will change your business. As we deliver customer service that amazes – we end up with consistent volume and guaranteed retention and we build loyal clients who will share our story with others.

Sydne –
We hope this video has been helpful to you. We have both benefited from this understanding of the Psychology of Customer service as we have built our own businesses. Go apply this and deliver the kind of service that is amazing.


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