Chattanooga Internet Efforts

An interesting article in the Wall Street Journal today, highlighting, in part, Chattanooga's efforts to improve internet download and upload speed to it's citizens. Cable providers, of course, resist the effort. KNS had that part of the story a month or so ago.

I always find it interesting that companies who, for decades, have reaped profits from local or regional monopolies, then resist when the local government starts to generate efforts at improved services.

Rant aside, I always find this area of commerce, law, monopoly, government, utilities crossover to be fascinating. Add to this the population demographics (highlighted in the WSJ article) of various countries and it makes for very interesting reading (for a data wonk).

The additional focus area of small- to mid-sized cities falling behind and we all need to see internet speeds improved! Unknown applications abound with improved internet speed.

Starbucks v Panera

I know that piling on Starbucks has become somewhat of an art-form lately, but wanted to add my two cents worth. As I drove from a client site today, I craved coffee and had a few minutes to kill. I thought Starbucks, but immediately thought, "No, Panera's". I analyzed my thoughts and feelings. I like Starbucks coffee better, they have a greater selection, and service is good. It comes down simply to habits created by one factor, free internet access. When I have an hour or more free, but it is inconvenient to return to the office, I always find myself at Panera's. They welcome you simply buying a cup of coffee and going on-line. No one looks at you with laser-eyes; no problems. This has simply created the habit that Panera supersedes Starbucks.

I know that Starbucks made a crucial decision that they did not want people simply sitting and working. They wanted to create an atmosphere of the Italian coffee bar, with friends sharing cups of espresso and talking (and hopefully buying more coffee or leaving). Nevertheless, with this crucial decision, they now find themselves second on the list when I think of a quick place to go.

Delta customer service has degraded

I know, I know. This is a sad, old story. Nevertheless, I feel compelled to note how far Delta's customer service has fallen, as experienced by this one person. I used to love Delta Air Lines. My skyMiles account was active, my calling experience was good, reservations were easy. My experience today is markedly different.

I admit that I had a problem somewhat out of the norm. I had allowed myself to be bumped on a flight, and obtained a voucher for a future ticket purchase. In the meantime, Delta had instituted a new program called "Pay with Miles", which allowed a person to cash in 10,000 miles for $100 off a ticket. I wanted to book a ticket, use my voucher, pay with miles for $300 worth, then pay the remaining fee with a credit card. I can execute this type of transaction at Krogers (with gift cards and coupons), at gas stations, everywhere.

When I tried to perform this transaction online, no dice. There was nowhere to enter the voucher number. Cancelled transaction attempt 1. I called the 800 number for the skyMiles account and tried again. I was told that I can only use "Pay with Miles" online. I indicated my problem, then I was routed to India for "Online support help". I was told there that I could not execute this type of transaction. I asked to be connected with a supervisor. I was refused point-blank. Cancelled transaction attempt 2. I then called the non-skyMiles account phone number, to make the reservation. I again attempted to make the transactions, and they indicated that they would have to route me to the "Online support help". I refused, then asked to be transferred to a supervisor. Again, a refusal, but more polite. I indicated that I needed to book the ticket, afraid of a fare increase, so only used the voucher and my credit card. At the end of the call, I asked if there was an ombudsman or a number I could call to try to get this issue resolved. Sent online, where no immediate link was available. Failed transaction attempt 3. I had a ticket, now, but it cost $300 more than desired.

I called back today and asked the skyMiles assistant for help again. Again, I was routed to India. This time, though, I got through to an agent who indicated that I could execute the exact transaction which I wanted to execute. I told him, though, that I had already booked the ticket, and wished simply to have $300 credited to my credit card, and the miles subtracted. He indicated, after reported consultation with a supervisor, that I could cancel the existing reservation, but that the voucher had already been used and could not be used on this transaction, even though Delta led me astray. After five more minutes of polite, but firm insistence of this point, though, I got nowhere. Failed transaction attempt 4.

I dislike that several different Delta employees or representatives gave different answers. I dislike that I was actually able to execute the type of transaction, but was refused. I dislike that I had to pay $300 more for a ticket than needed or planned. I dislike the fact that my relationship with Delta has degraded so significantly. I truly hope that they can solve the problem of good customer service and still remain profitable. I do not believe this is impossible.

Rant over. I am not alone, though.....

here, here, here, here, here.....

Managing Opportunities or Problem Areas - Conclusion

As conclusion of Managing Opportunities or Problem Areas....

Now the steps listed above must be adapted to the situation at hand. Also, I have been accused of being “All carrot, no stick” with the approach above. My reasons for advocating this approach is simply this. First and foremost, it is best for the company and customer. If you are able to implement opportunities or solve problems with the above steps, teamwork is achieved and senior management is put into a position of not having to be involved in decisions that networked managers made. If there is conflict and the issues are resolved and implemented, teamwork is also enhanced. If there is conflict and resolution is not reached, then you (the opportunity promoter) is in the great position of advocating for achieving a positive opportunity. In addition, you are in a position of showing positive action toward goal achievement and you are also in the position of having attempted to resolve the issues prior to executive involvement. Note that the basis for your efforts to reach decisions and implement must be based on the best of intentions with all parties in achievement of the customer’s best interests.

Another key aspect of this approach is that of repetition. The first few attempts to solve problems or approach opportunities will struggle or fail. The willingness to continue to try to solve problems for the customer and company are key. You show your resilience to all involved and this has several aspects. Your peers realize that your fortitude is high and that you will continue to work for the best interests of all. Executive management will realize that your motives are right in the company and customer sense and that you are committed to improving.

Now, realistically, these steps will not work 100% of the time I had a problem which existed between a manufacturing and service group, where an intense study of service failures was required. I was on the manufacturing side. We had good problem identification and worked to plan actions required. Part of our effort required service input and action driven through-out the service organization. Despite the attempt at the above steps, we could not come to resolution nor could we get clear decisions from the conflicting parties on resolution. We had already begun the work on the manufacturing side to study the issue and make changes we felt were appropriate. I also attempted escalation within our existing management structure. No resolution was forthcoming and I made the decision to make the best changes we could, within the confines of the manufacturing group, and try our best to ensure solid customer service. Nevertheless, I still feel we missed an opportunity to have the best solution implemented across all groups.

Always be planning next steps

As part of the continuing segment on Managing Opportunities or Problem Areas....

The solutions to a problem or opportunity implementation are never linear. I equate the path taken to white water rafting. The river has a great effect on exactly where you are going and you must react continuously with knowledge, experience and effort to keep your craft moving in the right direction without capsizing. There are times where you can pull into an eddy and rest and there are times of vigorous action. Throughout all of this, though is the requirement to plan ahead and adapt to the changing conditions.

When Stymied, escalate with objectivity and data

As part of the continuing segment on Managing Opportunities or Problem Areas....

Once people realize that you are not shooting them, you just want to solve the problems, they will usually work with you. When they will not, ensure that you maintain your objectivity and escalate with data. A cool presentation, customer focused, will generally break loose resistance.

Work to execute the plan. Take the first steps

As part of the continuing segment on Managing Opportunities or Problem Areas....

If you have agreement on a plan or can execute the initial steps yourself or within your group, do so. Any actions taken should not be irrevocable, but initiative toward solving the problem shows your bias for appropriate action. Both employees and managers outside your group and senior management will recognize that you are willing to put your time and energy into solving problems for the customer and the company.

Operate outside your circle of influence, objectively and customer-based and company-based. When the good of the customer and company are the lens through which your story, plan and execution are based, the arguments are lessened or melt away.

Updated Cherokee Farms Information

As an addition to my earlier post, aggregating information on Cherokee Farms, The Knoxville News Sentinel had a very good article on the challenges to the site, here.

Reporting also indicated no timeline on the project.

My original post here.

The Car Wash Factor

I have a new thought on an metric, to monitor the health of the American consumer discretionary spending, The Car Wash Factor. Related to an earlier post on customer service, I was filling up my car and getting a car wash. The weekend day was absolutely beautiful, with sunny spring skies, 70 degrees, light wind. In the past two springs, the car wash at Wiegels (Ebenezer and Northshore) would have been packed two and three cars deep, waiting for entry into what is not a cheap car wash. There was not another car in site headed to the car wash. It caused me to notice, as I made several errand runs throughout the day, that there were never any cars in the car wash line.

Bernanke and the Federal Reserve can start monitoring car wash spending any day now.......

Customer Service, an example

I had a real life example of both bad and good customer service, and the psychological difference caused by each example.

At a local filling station (unnamed to protect the guilty) in the Cedar Bluff area, I had a significant purchase to make. I also asked for change for a quick cleaning of my car. The change was not available and the clerk was very surly, as if my expectation of support for their own cleaning equipment was a fault of mine. I was not happy and did not make any of the purchases, nor use their on-site equipment. Total immediate sale lost: >$10. What is worse for this store, though, is that I will not shop there again. Total sales lost: priceless. And I am only one customer.

After my experience, I left the store and drove to the Weigels at Ebenezer and Northshore to purchase the same material and service. I went in, the clerk smiled, change was immediately available. The clerk was pleasant and genuinely friendly and wanted to help. They will now get my business and I am only one customer. Total immediate sale: >$10. Reputation: priceless.

Genuine customer service is basic human kindness and understanding and a willingness to be helpful. It is not hard to expect nor train and the yields are emmense.

P.S. - The clerk at Weigels worked Sunday 5/4 around 2 p.m. I did not catch her name, but she is awesome!

A Realtor's View of Solar Power Systems

I have been following the All Around KTown blog by Suzy Trotta, a Knoxville area realtor. I asked for her opinion, from a Realtor perspective, on solar power systems and the effects on the home. A very good response was forthcoming (see entire email at the end).

I have pulled a few of the comments out as particularly noteworthy. The first comment is that residential solar power is not prevalent at all. Suzy indicated

"I have personally never helped a client buy or sell a home with solar panels. I would say they are still fairly unique in our area, although I have seen them from time to time. I searched the MLS to see if there are any homes with solar power currently being marketed, and I couldn't find any."

I also think that it is clear that it will take time to have people recognize the value and need for solar power, per Suzy,

I know many people in this area aren't accustomed to solar power and might need some education and/or persuading to see the light - no pun intended :)..........

and

[some other houses] had a few progressive energy saving features. These features, which included a state of the art foam insulation, did nothing to sell the houses, even though buyers were told that they could save up to 40% on their heating and cooling bills. Maybe they didn't believe it, maybe they didn't get it, maybe it was the market, or maybe it was just the houses.....................there was no way to prove those "savings." If you could show people before and after utility bills, that might do the trick.

The last comment from Suzy, which I thought bears a comment, was

At the end of the day a homebuyer in this market is going to look at two things - is it going to cost me anything and what good does it do me? If the answers are "nothing" and "saves you a lot of money," then solar panels are probably a good investment.

The savings potential is clear on solar power (or close at least). The cost, though, needs to be recognized. If a homeowner spends $20K on a solar system, a residual value must be recognized during the sale of the home. I would have a hard time not recovering some of the money directly, not only in the "making a home easier to sell" category.

Thanks to Suzy Trotta for the thoughts and comments! I appreciate it!

--------------------Suzy Trotta's full email (with her permission)---------------------

First of all, let me preface my comments by saying that I don't know that you're asking a "average" Realtor. My thoughts on this topic might be a little left of center. With that in mind...

I have personally never helped a client buy or sell a home with solar panels. I would say they are still fairly unique in our area, although I have seen them from time to time. I searched the MLS to see if there are any homes with solar power currently being marketed, and I couldn't find any. However, in light of the current housing market, as well as the current national economy, I would think that anything a homeowner could do that would both a) make their home stand out from the crowd and b) save the buyer money in the process, would be a good thing.

Having said all that, I know many people in this area aren't accustomed to solar power and might need some education and/or persuading to see the light - no pun intended :) I had some new construction homes listed out in Lenoir City that, although they did not have solar panels, had a few progressive energy saving features. These features, which included a state of the art foam insulation, did nothing to sell the houses, even though buyers were told that they could save up to 40% on their heating and cooling bills. Maybe they didn't believe it, maybe they didn't get it, maybe it was the market, or maybe it was just the houses. Hard to say.

With those new homes, there was no way to prove those "savings." If you could show people before and after utility bills, that might do the trick. At the end of the day a homebuyer in this market is going to look at two things - is it going to cost me anything and what good does it do me? If the answers are "nothing" and "saves you a lot of money," then solar panels are probably a good investment.

I personally think solar panels are a great idea and my husband and I have talked about possibly installing them on top of our humble 60s tri-level some day. That's after we finally get around to getting a new roof :)

I hope this helps answer your question and sorry it took me so long to get around to it!

Suzy

Be willing to listen to a conflicting party

As part of the continuing segment on Managing Opportunities or Problem Areas....

When problem resolution or change is required, there are often conflicting parties. I truly believe that this will occur less often than most people believe; nevertheless, you will run into people who will not immediately support the needed change or solution.

Listening to the conflictor is crucial, and ideally this is done as part of the planning process, prior to meeting with the senior executive. A story and a plan for solving the problem is very powerful if you have taken the time to work with affected managers and other personnel, in advance, to see if agreement can be reached. Key lessons:

1. You learn from the other manager or employee the major issues or resistance points.
2. Ideally, you can both agree to a plan to solve the problem
3. If agreement is not reached, you have given an honorable notice to the other person that further conversation and conflict on the problem area will occur.

The last point bears further discussion. I have seen in action the “sneak attack” mode of plan presentation. In this scenario, the person with a plan has not discussed this with anyone, except the executive or manager. You are affected and are called in to give your assessment of the “plan”. As you hear the presentation, the plan generally involves major changes to your or your group, with little or no change to the person who is presenting the plan. I do not advocate this method. I believe, as the planner, that it is imperative that you take the burden of discussing the solutions with your peers and try to resolve it first. Then, when presented in a more general meeting, the person who is alerted to the potential conflict will generally respect you more for at least allowing them to prepare. The level of resistance will be far lower and the teamwork of the group increased.