Retail Observer

RETAILOBSERVER.COM AUGUST 2014 42 T echnology and the way we do business are coming at us at break-neck speed whether we like it or not. Too often, companies stay stuck in the past and end up dying off as their lifeblood is sucked away in the name of tradition or we settle and say, "That's the way everyone does it". We spend more time following the leader and not enough time forging our own path. Northeast Delta Dental (NEDD) pulled it off again. They administer dental benefits to more than 750,000 individuals and families and companies of all sizes in Maine, New Hampshire, and Vermont. The total population of Maine, New Hampshire, and Vermont is roughly 3.2 million. Northeast Delta Dental was selected as one of the Best Small Companies to Work for in America in 2004, 2005, 2006, 2007 and 2008. When Tom Raffio took over in 1995 as president & CEO, there were 75 employees and now there are nearly 200. They have grown from 301,000 covered people in northern New England to more than 750,000 in 2013. He also authored an incredible book last year titled There Are No Do-Overs: the Big Red Factors for Sustaining a Business Long Term. • Making a Difference in a Big Way. Through market research they learned that many prospective customers of NEDD wanted to come to NEDD. They were aware of their better dental plan designs, dentist networks and exemplary service. However, decision makers at these prospective companies were unwilling to stick their necks out to convert. The decision makers feared that if they made the wrong decision and the conversion went badly their employees would be upset and their job would be on the line. • They are Committed to Providing Exceptional Service to Their Customers. In 1996, Raffio and his incredible team of customer driven employees introduced Guarantee of Service Excellence SM the (GOSE) program. This one-of-a-kind program guarantees seven major areas of service and reinforces them with a comprehensive group refund policy and… no competitor has ever copied them. You can download the guarantee at www.customer-service.com/deltadental. Look at the GOSE Guarantee #1. If you are a new customer and your transition to Northeast Delta Dental is not completely smooth, they will return up to one month's administration fee. The customer determines if their transition is totally smooth. (in 2013 they refunded $3,837 for their #1 Guarantee and only $7,486.03 for all seven of their guarantees). • Guarantee of Service Excellence SM creates 60%-75% market share. Since the inception of GOSE, Northeast Delta Dental's market share has increased from 20 percent in their three states to 60 percent in Maine, and 75 percent in both New Hampshire and Vermont. No bureaucratic insurance company is willing to put hundreds of thousands of dollars on the line when the decision of whether a conversion is smooth is completely at the discretion of the customer. • Reinvent the Rules. Recognize and grasp your opportunities as they present themselves. Learn how you can deliver value, differentiation, and improvement. I'm an ideas guy. I love big ideas. I get a vision for something and I'm obsessed with making it a reality. I've been obsessed with Customer Service for the past 40+ years. It's what good business practices is all about. • Give Your Customers Something They Never Saw Coming. The perfect example is Northeast Delta Dental. They did their homework. They communicated with their customers, their people and their community. We are all customers and as customers we expect fairness, courtesy, openness, and pleasant, friendly service. When we receive positive communication, we feel good. If we give poor service to the people we deal with in a business environment, they simply have the option to go elsewhere. When a company makes the momentous discovery that customers are really "people," and when they give customer service at least as much power and influence over decisions as they give financial considerations, then they are well on the road to achieving a competitive advantage and even market dominance. "The purpose of business is to create and to keep customers." —Peter Drucker, Management Consultant RO John Tschohl Customer Service John Tschohl presents strategic keynote speeches to companies worldwide. Time and Entrepreneur magazines Customer Service Guru and Service Strategist, 7 books including Achieving Excellence Through Customer Service. John@servicequality.com or www.customer-service.com. IN A COMPETITIVE WORLD, HOW DO YOU MAKE A DIFFERENCE?

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