1. FEDA One Great Idea March 18, 2010

2. Simply the Best in Customer Service fb - Mitch Harper mitch@hwpo.com 979.823.5150

3. Description & Importance 4 Key Facts Strategy & Metrics What it Can look like

4. Description Physical place where we contact our clients. – All companies have “contact” Physical place where we contact our clients. – All companies have “contact” Place where one or more of the 3 negotiable mediums contact our clients: Money, Resources or Info. Place where one or more of the 3 negotiable mediums contact our clients: Money, Resources or Info. Relative term not able to be broadcast across a spectrum of industries or service levels. Relative term not able to be broadcast across a spectrum of industries or service levels.

5. Why Customer Service is Important

6. Good Isn’t Good Enough Percent Very Willing to Repurchase Overall Customer Satisfaction From Mastering Customer Value Management,Ray Kordupleski

7. Customer Service’s - Effect On Price Price Customer Service More Less More Acceptable Margin Range A.Y.F.N. W.L.O.S. Mitch Harper

8. Satisfied Clients tell an avg of 5 Dissatisfied clients tell an avg of 10 people 12% of those tell up to 20 people 96% - Dissatisfied clients won’t tell the company 95% - Dissatisfied clients become loyal if complaints handled correctly For each complaint received avg company has 26 prob – 6 are serious! * 13 Customer Service Facts – Michael A. Aun * Dr. John T. Self Some Facts we need to Know

9. Crunching the Numbers Assume Avg Company has 3000 clients Assume 1/2 of 1% are dissatisfied at any time 15 total people are pissed! 12% will tell 20 & 88% will tell 10 How many total people know????? 12% = 1.8 * 20 = 36 88% = 13.2 * 10 = 132 168 people know!

10. Rolling it Up Of the original 15 pissed people 14.4 won’t ever tell you they are angry However 14.25 if they ever do tell you and you fix it - will become loyal So What does this mean?

11. Moral? We have to get our clients to complain!

12. No one wants to hear they’ve done a lousy job, but criticism from customers is more valuable than praise. You want your customers to tell you when you’ve screwed up so that you can take care of the problem to ensure it doesn’t happen again - to them or anyone else. Carl Sewell

13. Why’s Customer Service so important? Lifetime spend of a typical car buyer $ 517,000.00 What is our typical client’s lifetime spend? $ ???????

14. 94 Customer Service Activities are Performance & Perception Driven Traditionally, which area do we manage most? Which is most important? Customer Service Reality # 1

15. 95 Customer Service Activities should be Preventive (Future Looking) & Corrective (Rear window) Which area is most expensive Where do distributors spend most of or time? Customer Service Reality # 2

16. Customer Service Fact # 1 Customer Service is personal to the individual Sewell Automotive Walmart Not necessarily Translatable

17. Customer Service Fact # 2 When dealing with the Client Customer Service is always a choice Wing Restaurant

18. Customer Service Fact # 3 Great Customer Service today is....... Just Good tomorrow and is Just Average in the future

19. Avg wait time to Disconnect Asia -Pacific Rim - 72 seconds Europe /Africa - 67 secs North America - 37 secs These get lower every year!! Source: Dimension Data

20. Customer Service Fact # 4 Clients want individuals they..... Trust (do what they say) Efficient (can do it quickly) Knowledgeable (can fix the issue) All 3 must be delivered for excellent customer service!

21. Building a Sustainable Model Three Primary Strategy Options Close Follow Lead Disregard

22. Close Follow Advantages Cost Structure Proven Low learning Cost Disadvantages Always 2nd George Strait Model Client risk - slow response

23. Lead Advantages Client Driven Disciples in the market On the “pulse” of the market Disadvantages Must be imaginative Cost / efficiency Company must be able to “react” to change

24. Disregard Advantages Zip in the cost area No training required Concentrate on other areas of business Disadvantages Competition Client retention Value perception

25. Alignment & Change None of the 3 choices matter unless (1) They fit our overall business strategy & (2) We can implement change in our businesses.

26. What do we measure?

27. Two Extremes 1 Metric4,836 Metrics

28. Measurements Key Questions What do I want to achieve (goal)? - increase, decrease, motivate, etc What is my commitment level? - cost, talent, time, short or long term What is the return? - sales, margin, loyalty, low acquisition cost

29. Good News & Bad News You know what to Measure “On-Time” Delivery “Order” fill Rate “Complete” Orders Credit Memo % of Client Complaints You know what to Measure Client Satisfaction Pricing Errors Average Hold Time First Call Resolutions Order Cycle Time