Relationships in Business: Self-Service vs. Customer Service

My business partner Brian sent me a link the other day. The basic premise of the article on this tech site referred to a piece in Harvard Business Review called Why Your Customers Don't Want to Talk to You. Given that this concept flies in the face of what I talk about a lot—the importance of relationships in business—I felt that it was worth mentioning.

It turns out that the staff at Harvard Business Review have researched this topic extensively. They've found that corporations drastically overstate the extent that their customers want to talk with them. To quote the HBR article: "...companies tend to think their customers value live service more than twice as much as they value self service. But our data show that customers today are statistically indifferent about this — they value self-service just as much as using the phone. And guess what? By and large, this indifference holds regardless of their age, demographic, issue type, or urgency."

Ironically, I've recently come face to face with this very issue while shopping for a (somewhat esoteric) part for my car online. I spent about 45 minutes researching the part number, pricing and stock levels all from my laptop rather than driving 1/4 mile to the auto parts store. Why?

The writers in Brian's link proposed that there are three main reasons:

Convenience - Why stand in line to talk to the teller when the ATM is 10 feet away? Why would you wait for the checker when there's a self-service checkout area at the grocery store?

Repeatability & Speed - Let's be honest, if there is a task that you regularly undertake— buying a gallon of milk via the self-service line at the grocery store for example— you get pretty darn proficient at memorizing what comes next. "Enter your Club Car…thank you" "Scan your first ite…" Beep! "$5.99" "Enter your pay…thank you". I can buy a gallon of milk from the self-service line in less than 30 seconds. The checker is easily at least double or triple that.

Error, Embarrassment and the Human Factor - Fact: People don't like making mistakes in front of other people. If I can use a machine to get an answer without having to feel stupid for asking the question, will I use the machine? You'd better believe it. See the previous discussion about the auto parts store. I research parts to buy them online, BUT should I need to visit the auto parts store, I'll know exactly what I'm asking for and can thus (hopefully) avoid looking like I don't know what I'm talking about.

This system, however, is not without flaws. It breaks down when you have a problem. When I have an issue with a company, I want to talk with a live person. I want them to fix the issue and I don't want to fight my way through an automated system. Referring back to the link that Brian sent to me, one sentence stood out;

"If you want to build relationships with your customers, remember why they're there. [Hint:]They're not there to interact with you. They're there to get the service or product you're selling them. If interacting with you isn't helping them in some way, it doesn't matter how friendly you are: it's still a negative experience. Building relationships needs to be largely a byproduct of doing a good job, not the end goal in itself."

A ha! There's the kicker: Relationships ARE important. They're built as a result of setting and fulfilling a customer's expectation—regardless of whether it was accomplished via a machine or human interaction.

What do you think? Given the choice to use a self-service option to accomplish a fairly routine task, are you going to use it? Or do you willingly stand in line to receive "personalized" attention? Is there an instance where the service that you've received from an automated system has improved your overall experience and perception of a company? Drop me a line in the comments area below.

Thanks for reading.

—Jason @ Ideavise

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Seth's Blog: Accepting limits

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Success and Value in the Client Relationship: Are You a Mosquito or a Firefly?

According to the Merriam-Webster dictionary, success is defined as favorable or desired outcome; where value is a relative worth, utility, or importance— though not always monetary in nature. It struck me the other night while thinking about the comparison between success and value that a  business often falls into one of two categories: mosquitoes and fireflies. While it might be oversimplistic to limit all companies to just two categories, read on and see if you agree with my conclusions.

Some mosquitoes feed on nectars, while others feed on proteins and iron in blood. Companies with short-sighted business models that are based solely on sales can be lumped into this category. Since they aren't expending any effort to get to know their clients (or their clients needs), they are free to spend their time following the sweet smells of short-term success just as the mosquito follows carbon dioxide and alcohol signatures of potential feeding targets . In many cases they offer solutions that put their own profitability above the needs of the customer. In short, their "success" is often at the expense of someone else.

Fireflies make a contribution to their surroundings. They have the ability to create an internal chemical reaction called bioluminescence which causes an area of the firefly's abdomen to glow; this light source is used to court potential mates. By emitting a light source in their environment, they are able to find partners to help them achieve success (in this case, by procreating and prolonging the species). When used as a metaphor for business, companies in this category seek to add value to all customer relationships, finding success themselves (which is not always monetary) when others succeed. In some instances, the best example of this success is when the fruits of these efforts yield a productive result for a third party.

Do you seek to contribute and add value to your customer relationships? If so, does that value extend beyond your own bottom line? If we asked five of your customers/clients, what would they say?

Thanks for reading. We invite your feedback in the comments below.

—Jason@Ideavise

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Shut Up About Work Already!

Leaving business conversation at work can be difficult for some of us. We're fortunate in that we love what we do. But in order to build lasting professional relationships, sometimes you need to leave work at the office.

If all you talk about is work—even in semi-professional settings like company dinners, coffee with vendors, etc.— you're neglecting an opportunity to connect with people on a level outside of their profession. Find out what makes them tick—better yet, find out about their interests, hobbies and goals. You just might find a common thread that will strengthen the relationship and give you a leg up on closing the sale.

Who says relationships aren't important in business?

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"Relationships Don't Matter in Business." Wait…What?

Relationships don't matter in business. Or so I was told recently in a conversation which included that; one of the most short-sighted statements ever heard in business. The gist of the exchange was an executive telling a vendor that relationships don't matter in business—that they're immaterial to the process.

What's more likely is that this particular executive doesn't understand HOW to relate to people in business. And since he doesn't understand, he perceives it to be worthless.

If that truly is the view of this particular executive, then he's missed one of the primary purposes of commerce, which is service. The most successful type of service exists when the person providing it truly understands the position and need of the person receiving it. The best way to accomplish this is through communication—forming a relationship.

Our company's relationship with our print rep is a perfect example (shameless plug: Denise Cardona at Printworx in Watsonville, CA). Because of our history (read: relationship), I know that she's willing to do everything within her power to get our projects completed on time and within budget. Consistently, time and time again, she's put herself in a position to serve the needs of our company. And it's because of that relationship that I'm not currently in the market for a print vendor. I'm quite satisfied with the one that I have.

Relationships are foundational for trust, and visa versa. More often than not, companies have options when it comes to clients, vendors and community associations, and we typically gravitate toward sources that we trust. To postulate that relationships don't matter means that no value is placed on service or trust and  that price alone is probably the most important criteria (read our post from December 4th: How to Overpay by Shopping for the Lowest Price). Businesses that shop on price alone will never experience the value that solid, long-term relationships create.

Do business relationships matter to you? Regardless of the answer is yes or no, tell us about it in the comments below.

—Jason @ Ideavise

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