Customer service is the key to franchise success
by
Enhance Plus
Now, as national customer service training manager for the Retail Food Group, May trains franchisees for bb's café and Donut King – and he is amazed by how dramatically the picture has changed.
"These days, you can get a half decent cup of coffee at a service station," May said. "Now quality alone isn't enough. Customers are looking at the whole experience and brands that succeed are 'people' places."
Wayne Toms, founder and managing director of Enhance Plus , is a customer relationship and customer satisfaction specialist consultant. He agrees that today's customer is more discerning and that a raft of factors other than price can affect how satisfied they feel, either drawing them back or keeping them away.
"It's so competitive now; consumers have more choice then ever before," Toms said. "A few years ago, someone serving coffee could have a 'like it or lump it' attitude – and you might just have to lump it because there wasn't anywhere else to go. These days you can often just walk to the next corner.
"Research is telling us that the market is becoming very service oriented. It used to be price driven – people were prepared to forego quality in order to save some money. Now the pendulum is swinging the other way. Consumers are discovering the difference between cost and price, and they're prepared to pay a reasonable price for quality and a sense that all of their expectations will be met. A growing number will even pay a little more for something they associate with an indulgent or luxurious experience."
Toms believes that, just as the fast food sector had to change in order to embrace a growing demand for healthier food, coffee shops have had to pay attention to the trend towards meeting a customer's personal needs as well as their product needs.
"They have had to become more service oriented, focusing on customers' expectations and not just paying lip-service to them," Toms said.
So how can you identify those expectations?
"The first step is recognising that you need to put a value on service – the culture has to be there," Toms said. "The next step is to put systems in place that allow you to monitor your customers' expectations while at the same time measuring whether you are meeting them. You need to generate genuine feedback, you could contact regular customers personally to ask them what it is they particularly like about your store and anything they’d like to change. Or you could offer an incentive for online feedback – remember that 70 per cent of people who aren’t happy don’t complain to you, but they do tell their friends.”
We know who you are
Dean Salomone, managing director of Franchise Careers and vice president of the Franchise Council of Australia Victorian Chapter, said there are broadly two types of coffee drinkers. Some drink it every day and want a great cup of coffee fast. Others want a comfortable place to sit and talk to friends.
He believes that coffee shops catering to both have the best change of success, and that both types of customers appreciate feeling that they're recognised and remembered.
"It feels good when someone knows you by name," Salomone said. "'A strong latte for Dean' generates a very different reaction from 'who ordered a strong latte?'. Worse still is 'did someone order a strong latte?' No one wants to think the staff might get their order wrong."
In the takeaway environment, the whole customer interaction might only take three to five minutes, but that's long enough for service to make the experience personal.
"Remember me, know me, know what I want and, suddenly, I'll stop thinking about going anywhere else," Salomone said. "You might be tempted to try to up-sell by offering a muffin or biscuit, but when most people ask for a cup of coffee that's all they want. I believe it's more important to focus on creating a long term relationship than to try for a bigger one-off sale. You want the guy on his way to work every day to think of you first." Salomone said the way you meet and greet your customers can influence their behaviour. As an example, when there are a couple of people ahead of someone who walks in, acknowledging him or here with a simple 'I'll be with you in a moment' will make them more inclined to wait. Ignore them and they might well wait for a few seconds then leave.
"Coffee shops tend to attract young casual workers who might only work one or two shifts a week. That can make it difficult for the owner to ensure they're doing a good job of making customers feel welcome. It's important to take control of the front line even when young Johnny is doing the actual serving. 'A long black for Mr Smith, Johnny' seals your relationship with your customer and keeps you as the public face of the business.
"But it never ceases to amaze me how many potential franchisees overlook the importance of this relationship. You wouldn't believe the number of people at an induction-type training session who ask 'should I be out at the front?' I think that's probably a good idea!
"If you don't like dealing with customers, don't buy a retail business, it's as simple as that. With coffee shops particularly, a lot were developed over time from an owner operator model. You can't just buy one, throw it under management and expect to get a decent return. Most were developed with the clear objective of having the owner and/or his or her partner there all the time. Staff need to be taught and trained and the best way to do that is to lead by example."
Peter May said that franchising is a system and that's what makes it so attractive, but that the system doesn't have to stifle individuality.
"We encourage our (franchisees) to become their own people," May said. "During their two days of intensive service training I'm looking out for what makes each one tick and how we can build on that.
"An older couple who might have taken early retirement to run their own business might exemplify family values, trustworthiness and honesty. On the other hand, we might have a dynamic young gun who attracts a younger crowd with his skills as a barista and the way he memorizes orders. Different experiences attract different people; you're never going to be able to please everyone.
"For instance, Donut King is one of the largest retailers of take-away coffee in Australia, but they appeal to a different market from bb's. The Donut King franchisee has only fleeting contact with the customer, but even here there's an opportunity for your personality to shine. One occasionally gives a child an open paper bag and says 'if you catch the donut it's yours'. Of course he throws it right into the bag so the child is delighted, the family is happy and he's attracted a bit of a crowd by building in a touch of theatre."
May said, as a franchisee, you have to decide whether you want to work on the business or in the business.
"Some want five or six outlets and to run the business by hiring, leading and motivating staff – which, incidentally, isn't as easy as it sounds. Others buy themselves a job for a change in lifestyle, and because they love coffee, love food and love people. I'd say, if you don't have a passion for coffee and service or understand why it's such a big deal for some people, don't go there." 25.07.2007
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Tel: +61 02 4933 8589
Fax: +61 02 4933 6066
