Fabian Schonholz’s Blog

April 20, 2008

Customer Service In The Era Of The Internet

Filed under: Business, Thoughts — fschonholz @ 9:53 pm

I despise talking to customer service. Most of the companies I have had to call either for information, to report a problem, ask for a refund, get an RMA, or anything related to service, have resulted in horrible experiences. The customer service reps have been rude, they have lacked product knowledge, they have been less than attentive and willing to listen and have made no efforts in trying to find a solution that worked; to make matters worse US based reps can barely speak intelligent English. To the above equation you need to add reps not based on the US. It is not the accent that bothers me - mine is so thick you can cut it with a knife - but the lack of a customer centric culture. The accent just gets further in the way and aggravates the situation.

There are two companies where the experience is 180 degrees in the other direction: USAA and LaCie.

To call USAA’s customer service exceptional is to not do them justice. They are superb. I am not sure how the reps are trained, but I am yet to talk to a rep on the phone and not gotten the help I needed. What impresses me is that when a rep does not know the information, they freely admit it and they are not exactly apologetic. However, they know where to go get the information and who to hand you over to. The hand over from one rep to another is also fantastic. The first rep introduces you to the second. The second greets you and the first one asks the second if he/she has you. If the answer is positive, the first bids you good bye and now you are talking to the second rep, who had been fully briefed before you started talking, thus, not having to repeat yourself. Of the few times I had to call USAA - they have a great track record - and in those few times the experience has been consistent: Great customer service every time I call.

The experience with LaCie was completely different. I called to complain about an order I had placed where one of the items was back-ordered. My complaint was that I had been charged for the back-ordered item even though it had not been delivered, or so it seemed. The customer service rep, although I was very short, was nice, cordial, composed and quickly turned the situation around by being understanding of how I viewed the situation. He very quickly changed the mood and tone of the call and resulted on a happy customer. I am not sure if that is the experience I will get next time. Regardless, it was a pleasant one. The most important part of this experience was that even though I was in “the wrong”, I was never made to feel that I was wrong.

Few other experiences rival LaCie’s. So few that I can count them with one hand and have change. By at large, my experiences are really crappy and frustrating. The worst experiences are the in-store experiences. Two companies are notorious in my book: CompUSA and Fry’s Electronics. I will not go into details of these experiences because there is nothing to learn from them and in all honesty, I would waste your time describing them. But let’s just say that the reps where less than intelligent; their knowledge of what the products they carry is near nil; their interest in taking care of you is non-existent; their personal hygiene and presentation also lacking. And their vocabulary … well … let’s just say that my children have a better vocabulary than the people I encountered have.

I completely understand that the opportunities for education these people have had are not, to any degree, comparable to mine or my children’s. And I do not blame them for their lacks. I will, on the other hand, make them responsible for it. Who I really blame is the store managers (who probably also do not know any better) or regional managers. I blame people all the way to the top. They are the ones that lack customer focused service and since they lack it, they can not expect their chain of subordinates to react any different than they currently do.

A while back I was recommended I read a book called “Raving Fans” by Blanchard and Bowles. This book is a good example of why USAA and the CS Rep at LaCie are so effective in providing exemplary customer service. I recommend you read it. To think of it, the person that recommended it should read it again. His organization’s customer service is beyond lacking to the point that Fry’s and CompUSA’s in comparison are not too bad.

The customer service landscape today is, based on my experiences, a minefield with a few safe havens. But it needs not to be such a disaster. Traditionally customer service had information issues. In other words, a customer service rep lacked complete and accurate information. And when the data was available, it was hardly ever integrated and presented in such a way that helped the rep. Once upon a time I used to work for Prudential Group Insurance, West Coast Operations. My main responsibilities were to provide technical assistance to customer service reps (CSRs) and help them navigate a series of disconnected mainframe based systems. This was in 1994, ages ago in internet times.

Fast forward to today. CSRs’ operations are no longer, for the most part, mainframe based, and most system have been integrated in such a way that the information is presented in a series of screens that make life much easier to find. To make matters better for CSRs, many of the system offer key-word search to assist finding information more efficiently. A clear example of some of these advances is banking. When you call your bank, in many cases (BofA Credit Card Services for example), you are connected to CSR in India, The Philippines, and other. The rep has access to a great deal more of information regarding your account and transaction history.

Putting the cultural and language elements aside, the first issue starts with security. Some person in some country half across the world has access to some of your most important financial information. But that would not change if the CSR was located here in the US, or for Europe in Europe or however local. What would change is the ability to do background checks. Secondly, what level of encryption in maintained for the connection between the outfit in India, for example, and the data repository in Colorado, again for example? If it was local, then there are regulations that need to be observed and regulatory bodies that conduct audits. Although these regulatory bodies extend their scrutiny to vendors and providers, I am not sure of the level of efficiency and transparency rendered in the above mentioned audits.

However, security, technolgy and data/information even though paramount, the problem remains with my chief complaint: Lack of customer focus on the part of the CSRs. And with the information they have at their disposal and the installed systems providing the information, I am utterly surprised service is still lacking.

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April 13, 2008

Ethics And Morality

Filed under: General, Thoughts — fschonholz @ 9:22 pm

For a while now, I have been concerned with Ethics and Morality. What they mean,  how they relate to each other, how humanity interprets and implements them, whether they extend beyond humanity and planet Earth, the history of Ethics and Morality and how they have evolved through time. Ethics and Morality did not start with Greece and the classic period, but for all accounts, at least as far as I know, the concepts were formalized then.

I have spent a few weeks now reading definitions. In the original version of this post, I had included a few of them. But then the post became too technical and about definitions rather than discussion and intellectual investigation. Moreover, I encountered contradicting definitions from different sources. I am enclosing a summary of the encountered definitions since they provides a frame of reference for the rest of the post:

  • In one set of definitions Ethics was defined as the study of Morality, while Morality as the study of Ethics.
  • A second set defined Ethics as the study of Morality and Morality as “the principles concerning the distinction between right and wrong or good and bad behavior”.
  • A third definition defines Ethics as the study of “what is good and what is bad and how it applies to behavior” and Morality as the study of Ethics.

Now you see the problem. The first definitions create a circular reference. It defines one in terms of the other and provides no scope as to what the true nature of these words really is. The second and the third are in direct conflict with each other. One defines Ethics in terms of what the other defines Morality.

My concern with these concepts goes beyond definitions, meanings and interpretations. I often argue that humans as a specie has yet to develop intellectually. We lack vision and imagination to truly incorporate time expanses of trillions of years and distances of billions of light years. And along those limitations, we lack the capacity to understand the true nature of the universe. Moreover, we have developed this limitation in the tongues we speak and write.

I try to think outside the box. I try, with some level of success, to think beyond the intellectual limitations inherent to humanity. Not because I am more intelligent, but because at least I recognize the limitations are there and I attempt to break through them. At the risk of sounding conceited and arrogant, if Einstein did it, so can I. In trying to break through the limitations I often try to organize concepts in hierarchies. Proof of my limitation is that I have started to think in trillions of years and billions of light years, while time and space are infinite; and no matter how I reconstruct my hierarchies, I can not visualize and internalize this infinity. But slowly, I am getting there.

Ethics and Morality are part of this thinking outside the box and organization. Just as Mathematics (I will argue the universality of Mathematics in a separate post) and mathematical concepts are true here on Earth, as in the Moon, Alpha-Centauri or 100’s light years away in any direction, other constructs and concepts must be as well. So, if the concept of  1 + 1 = 2 here on Earth or 10 Billion light years away holds, so does the concept of Good and Bad. However, before we can define this concept we need a framework.

Looking back at the summary of definitions above, I subscribe to the second one:

“… defined Ethics as the study of Morality and Morality as ‘the principles concerning the distinction between right and wrong or good and bad behavior’”

This definition provides a workable framework for the way I see Ethics and Morality. Ethics is an abstract concept while Morality deals with specifics. In other words, Ethics is a theory, a collection of ideas and concepts that describe esoterically a state of being, while Morality is the implementation of the theory. There is no weight in Ethics. There is no judgement in Ethics. There is no bias in Ethics, just the description of how to build a system of moral values, whatever these values may be. On the other hand, Morality is all about weight, judgement and bias. Morality is the implementation of an ethical system.

The table below is provided as an example of other conceptual and implementation associations in the hopes that it will clarify the argument above:

table_001.jpg

From the definition and table above I have established that Ethics is a theoretical construct while Morality is its individual implementations. Thus, what follows is that there is more than one morality, which indeed there are.
If we want to think of Morality as a complete concept, whether or not as an implementation of Ethics, we need to think of it as a collection of individual moralities. These moralities, in the majority of cases, are based on religious or cultural basis. We can consider a Christian Morality, which in itself could be considered a collection of individual moralities following the different Christian splinters (Roman Catholic, Baptist, Episcopalian, Church of England, etc.) Similarly, a Jewish Morality may follow an alike pattern and be a collection or moralities in the same form as Christian Morality. So on and so forth. (But, outside of religious based moralities, what other moralities can we find? We will come back to this later.)

These moralities all deal with specific behaviors. In the case of Judaism, in particular within the orthodox communities, there are 613 Mitzvoth (commandments) that must be followed and observed. A portion of these are regarding good: “You Shall”, and a portion regarding not good:”You Shall Not”. These commandments are the basis for a behavior and the compendium of moral codes. Yes, I am equating commandments to behaviors, but that is exactly what a commandment is: a discrete behavior. A commandment is a quantifiable action and the collection of quantifiable actions represents a behavior(s). I will assume that Christianity, Buddhism, Islam, etc., follow a similar pattern of commandments and behaviors. Furthermore, while I do equate commandments or compendiums of moral codes to behaviors, I am not equating religion and dogma with morality. This distinction is important.

Does Ethics deal with good and bad? Or Good and Evil? This is an important question. In my opinion no it does not. However, when discussing Ethics we normally fall into discussion of good and bad, Good or Evil. Why is that? Because our inability to maintain a level of abstraction. Based on the above definition: “ … Ethics as the study of Morality …” we can clearly see another reason why we fall into identifying Ethics with good and bad, Good and Evil, it seems implicit in the definition since Morality is defined as the study of good and bad “behaviors”. What seems implicit, it may not be.

Athenians and Spartans shared the same logical bases and by at large the same code of Ethics. But their moralities had points of difference. While Sparta condoned euthanasia, Athens repelled it. The moralities of the two city-states where based on the same set of religious beliefs, the same set of logics, same philosophical backgrounds and bases of governments. However, Spartans, based on their needs supported the systematic disposal of undesirable genetics traits by killing new-borns that did not measure up. Today, we would consider this practice evil. But that would be our morality speaking and not Ethics.

To summarize

  • Ethics is the theory of actions and behaviors that can lead to good and bad, Good and Evil. However, it does not label any of the identified actions and good or bad, Good or Evil. It also deals with the concept of good and bad, Good and Evil but does not create an association between actions and these concepts.
  • Morality creates associations between actions and behaviors and good and bad, Good and Evil. These associations are normally built in the context of religious dogma and culture.
  • Ethics is universal. Since it does not deal with associations, the concepts can be transposed to any part of the Universe without loosing validity.

The exceptions that prove the rule

There are two questions that I will not answer, but are pertinent to the topic in this post:

  1. When we talk about business and the concepts of good and bad, we discuss them in the context of Business Ethics. However, isn’t this the case of a mislabeled morality?
  2. Is “truth” (not THE TRUTH) part of Ethics or Morality?

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Fabian E. Schonholz - Copyright 2007, 2008