The second example in Creative has to do with customer support. Creative pride ourselves as a company that provides the best technical support. All our staff know that. We have 400 people in Oklahoma USA, just listening to phone calls alone. We have a small technical/customer support team in Singapore serving only the small Singapore market. The team is hardworking and dedicated to the company. In general, their service is good and efficient - when there are rules.
There was once when I received a customer’s letter addressed to me complaining about our customer support department (CSD) with regards to a missing CD from our product. Our CSD insisted that the customer get the CD from his dealer who sold him the PC with our product. And the customers attached the letters of exchange. It was such a minor issue but I felt customer satisfaction was most important. So I wrote a small note and asked them to give him the CD and be done with it. CD-ROMs are very cheap anyway.
A few weeks later, I received another letter from this furious customer complaining that our CSD wanted to charge him like $15 for the CD because it was the responsibility of the dealer to give it to him. And he attached even more letters for me to read.
I was very upset this time because, what could have been a very simple and pleasant customer support issue, costing the company less than $1 for the CD-ROM if people in CSD had just given it to him in the first place, now potentially cost the company a bomb:
Firstly, the CSD’s time to write all those letters of exhange, they are way, way over $1. But because of NUTS, our CSD people did not see it. They are just trying to follow rules when there are no rules in such situation.
Secondly, the CEO’s time. I had to read about ten letters two times to figure out the gist of it all. It must have cost the company thousands of dollars. And even after my first instruction to just give him the CD-ROM, they still went into a cat and mouse chase to try to ask him to pay $15. Someone in CSD probably set the rule that if a customer wanted an extra CD-ROM, it would cost him $15 - that is it, regardless of the plight of the customer.
Thirdly, the most expensive part - the harm it had done to our brand name. A potentially unhappy customer would hurt the company way beyond the customer. He would tell all his friends not to buy from the company.
But people with NUTS mentality could not see beyond the rules. They could not see that a $1 CD-ROM was much, much cheaper than their own time, their CEO’s time and the value of the brand name.
I had to call all the three persons involved in this case to my office and explain to them very slowly about our principle of customer support. You could not fault them for dedication, they were trying to make an extra $15 for the company. Not seeing the big picture of how much more it would cost the company. I had told them that for us, the customer’s interest is always in the #1 position. I told them that they were the "customer’s advocates" - they had to be fighting with me for their customer’s interest, rather than the other way round.
Finally, told them to call up the customer directly, apologize and give him the CD-ROM he wanted and ensure that the customer was 100% satisfied. If the customers are not satisfied - we should not take their money.