business Archives - Page 33 of 40

Customer Reviews

Customer reviews can make or break a company in the US. Especially now that the internet gives customers a way to instantly compliment or complain about service (and to make sure that their opinion is available for anyone to see) one good or bad review can drastically change the number of customers a company has.

In 2012, after Brandon Cook from New Hampshire posted a Facebook story about a Panera manager named Sue making a special order of clam chowder for his grandmother and giving her a free box of cookies as well. The restaurant became much more popular. Several people who would not otherwise have eaten at this restaurant went there, and commented about it online. Some of the Facebook comments that people made were:

Cyrus Twirpwhirler: “My family is eating at Panera tonight because of this story. Way to go Sue and Panera! Snow Case: That is so cool, I’m a customer already, but I like them even more now. Daniel Julian: That is so cool!!! Have to visit Panera soon.”

Do it Yourself

Often German managers would rather complete a certain task themselves instead of passing it on to a team member. Many do repairs in their house, fix their cars, and some sit in their office at home until late into the night.

For those with limited financial resources, doing things yourself might be a question of economics. For others, there is a German reason: they often have a clear picture in their mind of how the final product should look. That they don‘t hand it off to a team member is not a sign of mistrust or lack of confidence.

Instead, Germans are skeptical that the other person will fully understand what is expected. By the time they have explained the task and how the final outcome should look, they most likely will have completed half of the work.

For the team member will create her own picture of the final product. Two pictures of what the work should look like. A dilemma for every customer-supplier relationship.

“Way to go, Sue!”

Customer reviews can make or break a company in the USA. Especially now that the internet gives customers a way to instantly compliment or complain about service (and to make sure that their opinion is available for anyone to see) one good or bad review can drastically change the number of customers a company has.

In 2012, after Brandon Cook from New Hampshire posted a Facebook story about a Panera manager named Sue making a special order of clam chowder for his grandmother (and giving her a free box of cookies as well), the store became much more popular. Several people who would not otherwise have eaten at this restaurant went there, and commented about it online. Some of the Facebook comments that people made were:

Cyrus Twirpwhirler My family is eating at Panera tonight because of this story. Way to go Sue and Panera!

Snow Casey That is so cool, I’m a customer already, but I like them even more now.

Daniel Julian that is so cool!!! Have to visit Panera soon.

Not a consumer’s job

Harvard Business Review. October 31, 2001. Tom Davenport, Business Professor at Babson College: Was Steve Jobs a Good Decision Maker?

„He (Jobs) also didn’t believe in analytical decisions based on extensive market research.“ Quoting The New York Times’ obituary:

„Mr. Jobs’s own research and intuition, not focus groups, were his guide. When asked what market research went into the iPad, Mr. Jobs replied: ‘None. It’s not the consumers’ job to know what they want.’”

Steve Jobs was not of German descent. It was known, however, that he had great respect for German design and technology. He and his family, it was reported, had debated for weeks what brand of washer they should choose. His arguments won out. They purchased a Miele.

How the work is done

Germans are results-driven. The strength of their economy underscores this. For Germans work results and work processes are synonymous, inseparable, integrally linked with each other. Germans focus on the details of how the work is done.

Processes are, therefore, results. They are how the work is done. If something does not function properly, if a product has an imperfection, the Germans analyze rigorously how the work was completed.

All problems, product deficits, signs of diminished quality are from the German perspective a failure in work processes. If something new has been developed, Germans not look first at its benefits for the user, but how it is made. How something is done, processes, craftsmanship, approach is always the focus of Germans.

Continuous improvement

Manufacturing automobiles is based on complex production processes. Chassis are formed out of high tensile steel, which are then fitted and painted. Each and every step in the process is made up of smaller, more exact process steps.

All of this cannot work without those involved following processes. Operating on checklists will not lead to road-worthy automobiles.

German cars are known worldwide for their quality, possibly the best in the world. Could that technical quality be based on the quality of processes? Could the strict adherence to well-defined processes be a key to success?

Consult the customer

Communication with the customer about expectations is a primary role of American business. For example, a senior consultant at a major American strategy consulting firm described collaboration as an attribute that is “built into the very culture of our consulting firm.” New consultants are selected for their ability to understand and respond to the needs of their clients.

The website of a leading strategy consulting firm tells future clients that “custom solutions yield the greatest competitive advantage and value for our clients. We ground each solution in how our client’s organization actually works and in the client’s unique position in the marketplace.”

In order to understand the client’s unique situation and demands, the consultants work side-by-side with the client’s employees and listen to their concerns.

A report from the Center for the Study of Social Policy about customer service describes the complex interplay of factors involved in customer satisfaction. One finding of the report is: “Successful customer service companies listen to, understand, and respond—often in unique and creative ways—to the evolving needs and constantly shifting expectations of their customers.“

Germans consult. Americans serve.

A big source of misunderstanding between Americans and Germans, rarely made explicit, is about whether business should inherently be customer-centric, supplier-centric, or somehow balanced, as our fourth column in this series explains.

Germans and Americans alike will of course say they care about their customers. But they associated different meanings with that notion. And that often leads to misunderstandings and frustration. American providers of business services proudly offer exactly that: a service. By contrast, German providers view their proposition less as a service and more as a consultation. The difference is subtle, but consequential.

“Cut off at the branch’s roots”

Consumer products giant Procter and Gamble sold its hair products business and its fragrances division, including the struggling German brand Wella.

But some criticism of Wella had been going in the other direction, namely that innovations happen too impatiently, and that Procter and Gamble thinks in the same fast terms as in the drugstore-based consumer products business.

Hairdressers in Germany, however, want to use the products they know over the long term, providing that they have had positive experiences with these products. Too many new things annoy them.

When it acquired Wella, Procter and Gamble bought its way into an unfamiliar field, namely the hair salon business, said a manager with a competitor. Then the company cut off the brand’s roots by closing Wella’s headquarters in Darmstadt, Germany, thereby losing institutional knowledge and the confidence of its vast network of hairdressers.

According to the manager, a former strength of Wella, namely their sales reps’ good relationship with hairdressers, was lost.

Source: Handelsblatt Global Edition. June 10, 2015. “The Great Brand Sell-off.” By Christoph Kapalschiniski.

Between honesty and politeness

There’s a fine line between honesty and politeness and Germans are known abroad for not beating around the bush. Kate Müser and Waslat Hasrat-Nazimi at Deutsche Welle in Bonn explore the rather direct questions they’ve had to answer in Germany.

Note 1: Towards the end Kate states that it is impolite to discuss politics in the German context. This is not correct. In fact, it is just the opposite. Many comments below the video on YouTube are by Germans stating this clearly.

Note 2: Another German commented, and rightfully so, that the opposite of direct is not polite, but instead indirect. The commenter goes on to state that Kate’s ironic winking about how German directness can be impolite is an unfair judgement of the German people.