The Referral Engine by John Jantsch - Book review



The Referral Engine

Teaching Your Business to Market Itself


By: John Jantsch

Published: May 13, 2010
Format: Hardcover, 256 pages
ISBN-10: 1591843111
ISBN-13: 978-1591843115
Publisher: Portfolio/Penguin









"Human beings are physiologically wired to make referrals. That's why so many businesses can grow and thrive by tapping this business-building strategy alone", writes marketing and digital strategy coach, and award winning social media publisher at Duct Tape Marketing, John Jantsch, in his transformational and practical book The Referral Engine: Teaching Your Business to Market Itself. The author shares the reasons that referral marketing is such a powerful growth machine for a company, and provides the tools and techniques necessary to make referrals an integral part of any business strategy.

John Jantsch understands the importance of customer referrals to the growth of a business. The author demonstrates hands on familiarity with proven referral techniques, as well as with the psychological drives that cause people to recommend products and services to others. As one of the leading experts in referral marketing, John Jantsch writes from years of experience, with knowledge, and with much wisdom gleaned from many successful companies. The author is able to drill down past the most obvious forms of referrals, to include the very deep emotional reasons that create the desire to pass along a recommendation, and the need to complete the referral with others. Because John Jantsch understands referrals so well, he is the ideal guide for any business that wants to add a perpetual referral machine to their strategy.



John Jantsch (photo left) recognizes that much of what generates customer referrals is providing an superior customer experience. Satisfied customers, who feel engaged by a company through its employees, are very likely to evangelize a business to others. As John Jantsch points out, not being rude to customers, being exciting and not boring, and giving to others to get business in return, are the guiding principles of referral based organizations. The author also understands the unique relationship between various employees and their customers, and the role they play in the referral process. Sales people, for example, have a direct link to customers and as such are crucial to creating a successful referral program. At the same time, all employees must talk with customers, and really listen to what they have to say about products and services.

For me, the power of the book is how John Jantsch combines the theory of customer referrals, of the psychological need that customers feel to share their experiences with others, and the practical tools to put an effective referral system in place. The author shares proven techniques, to establish an ongoing referral program, that have been tested and have worked well in the real world. Unlike many books on referrals, John Jantsch fills his book not with platitudes but with a workable process that not only engages the customer, but involves every employee within the organization.

At the same time, the author extends the engagement of the employee beyond the doors of the business to include education for the best customers as sources of referrals. The education process helps the customer to refer other ideal customers, within their own narrow band of qualifications, to the company. The result is s multiplication of ideal customers referring other customers sharing the same overall characteristics. The holistic approach to referrals, taken by John Jantsch, sets this book apart from others of the same topic.

I highly recommend the seminal book on building a business through referrals, The Referral Engine: Teaching Your Business to Market Itself by John Jantsch, to anyone seeking to turn referrals into an integral part of their organizational marketing and growth strategy. Whether the business is brick and mortar, internet based, or a combination of the two, any company can be transformed into a dynamo through the use of referrals. John also is careful, and to his credit, to point out that a commitment to a referral system is a long term and ongoing process. There are no quick fixes or magic bullets. Referrals require building trust, and that takes time. For a business prepared to create that level of engagement, however, the growth potential is almost unlimited.

Read the essential and game changing book The Referral Engine: Teaching Your Business to Market Itself by John Jantsch, and put the power of the customer referral to work for your own company. Combining superior customer service, with a committed employee team at every level, and an engaged customer base, will turn your organization into a perpetual referral machine.

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Micah Solomon: Exceptional Service, Exceptional Profit - Author interview



President of Oasis Disc Manufacturing, and founder of the College of the Customer website, Micah Solomon, co-author with Leonardo Inghilleri of the highly practical and business transformational book Exceptional Service, Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization was kind enough to take the time to answer a few questions about the book.

Micah Solomon shared some proven strategies for building customer loyalty, through providing service excellence, to build a lasting organization that creates a superior and memorable customer experience.

Thanks to Micah Solomon for his interesting and informative answers.

What was the background to writing this book Exceptional Service, Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization?

Micah Solomon: Exceptional Service Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization has an interesting genesis: In part, it is a distillation of the ideas that have led to the growth of my own business, Oasis Disc Manufacturing from its start in a room in my basement to its current status as a leader in its sector of the entertainment industry. This growth has been possible because I created systems that allow customers to retain a personal, human experience at our company in spite of the rate at which our company has scaled.

And, I was extremely fortunate to team up with someone I’ve always wanted to work with: Leonardo Inghilleri, an instrumental force in creating similar systems in a different context at The Ritz-Carlton Hotel Company, The Walt Disney Company, and now The West Paces Hotel Company. Leonardo and looked at the parallels in our systems and extracted a single comprehensive strategy for our readers. We wanted to wind up with a single set of technologies, principles, and strategies that could leverage shoestring budget businesses and much larger ones equally well.

Your book is about creating exceptional customer service. Why do so many otherwise astute companies fail so badly at providing great customer service?

Micah Solomon: Providing exceptional service requires an intensive overall organizational commitment day in and day out, plus much specific knowledge. There are many processes involved: appropriate hiring, worker involvement in job design, etc., which companies need to do more than pay lip service to. Furthermore, service is a curious combination of an entirely subjective area (nobody can define “exceptional service” except for the customer) and entirely data driven (there’s no point learning how to apologize empathetically for service breakdowns without also spending the time on data notation and analysis to determine the patterns of where those service breakdowns are occurring so you can fix the broken processes that are leading to the need to apologize).

How can a company create a commitment to providing excellent customer service?

Micah Solomon: It needs to come from the top, and then be woven into all elements of the company, most importantly into the hiring, orientation, and training portions of the company.

What elements form the basis for an exceptional customer service program so it is carried out effectively?

Micah Solomon: Your entire company needs to be your exceptional service program. There isn’t anyone in a company who can be exempt from providing customer service. The elements involved are:

a) First ensure you are first providing a baseline of satisfactory customer service, which consists of four elements: 1. A product/service which is designed to function perfectly under any reasonably foreseeable circumstances. 2. A caring, friendly person to deliver this product/service. 3. Timeliness. Plus,(because things do go wrong), 4.A effective problem resolution program.

b) To bring customers to the level of true loyalty (which is where you build strategic value for your company—by binding customers to you, rather than merely satisfying them), you need to add the element of anticipatory customer service: knowing what a customer wants even a moment before she asks for it or even knows she wants it herself.

You do this several ways: by carefully tracking preferences you have noted or have been volunteered earlier by this particular customer, by having your own employees and other knowledgeable people use your own product/services to such an extent that you know exactly how customers in your target group would like them to function, by hiring people who are extremely appropriate for the job – empathetic, intuitive, warm, etc., and by training, orienting, and reinforcing your staff to be extraordinary in such key people-related skills as honoring the protective bubble that we all have around us, only breaking into it at the moments that are appropriate. (For online interactions, there are a slightly different set of rules, but rules apply nonetheless.)



Micah Solomon (photo left)

Why do so many companies use the wrong words and language when speaking to a customer?

Micah Solomon: Almost certainly they aren’t thinking about this issue -- their choice of words -- at all. We recommend in “Exceptional Service, Exceptional Profit” that you create a specific “Language Bible” or “Lexicon” of words that are appropriate -- and, more importantly, those that are not—for your business, and ensure that everyone sticks to the program.

Even the best companies have customer service failures. How can a company turn failure into success?

Micah Solomon: Customers understand that things can and will go wrong. What they do not understand, accept, or find very interesting are excuses. Pay attention. Listen. And say very, very sincerely, that you are sorry. Then, fix the problem and follow up to ensure it has stayed fixed. Most of all, don’t panic: Studies are conclusive: Customers who’ve had a problem that was resolved effectively became more loyal than those who experienced trouble-free service in the first place. Why? Because until a problem occurs, the customer doesn’t get to see us strut our service.

Very often, executives remark that that customer service and its results are impossible to track. Is there a way to create and utilize effective and accurate metrics to measure customer service results?

Micah Solomon: The first thing a company should do to counter this mindset is calculate the lifetime value of a customer. In companies we have worked with, the value of a customer can be up to a million dollars. Maybe it’s $100,000 in a particular company, or $10,000, or even $10,000,000, but in almost every case it tends to be more than anyone at the company realizes before the calculation is done.

Second, multiply that number by the potential internet value—positive (if the customer becomes what Seth Godin calls a “sneezer” who spreads word of your great problem resolution) or negative (if the customer does a PowerPoint of your suckworthiness). Now, tell me: at this point are you seriously going to instruct your front-line workers to take a hard line and argue with customers regarding an overnight shipping bill?

As far as measuring the effectiveness of your day to day customer service results, it is important to have the numbers that are critical to your company in front of you—what could be called a “three dimensional dashboard.” Not just cash flow and other similar numbers, but other indicators, such as employee engagement, problem resolution success, and customer loyalty. (Are you losing or gaining in the number of customers willing to refer your business and who are planning to use your business again?)

These ‘‘softer’’ indicators can be derived from your preferred tracking tools—your short-form customer ‘‘quizzes,’’ full-length customer surveys, secret shopper reports, and employee-filed reports, as well as data gathered on employee engagement by your managers and HR leaders.

Should customer service skills become a priority when recruiting and hiring staff?

Micah Solomon: Not so much specific skills, but definitely customer service-related traits: traits such as natural warmth, empathy, and optimism (customer service can be a draining job). The traits needed to work with customers are very close to immutable: If you have them in your twenties you probably will still have them in your sixties. By contrast most customer-related skills, such as knowledge of telephone scripts, high-end voicemail systems, dining room knowledge, etc., are much more easily learned, and are not as important to possess at the time of hiring.

With so much business taking place over the internet, is there an effective way to develop exceptional customer service online?

Micah Solomon: One way to distinguish your company online is to offer customers an opportunity to connect with a real person online, just as you would offline or on the telephone. For example, instead of a web-based chat window that blandly announces "you are now chatting with Jane,” try "you are now chatting with Jane Yang-Katzenberg.” The customers will treat your “Jane” better, they'll take her advice more seriously -- and they'll be more likely to want a committed customer relationship with her company.

What are the critical moments in a business and customer relationship when it's absolutely crucial to provide exceptional customer service?

Micah Solomon: In addition to recovering from service failures (a very crucial moment), research shows that customers remember the first and last minutes of a service encounter much more vividly -- and for much longer -- than all the rest of it. If you can really “nail” your hellos and good-byes, in other words, you’ll get extra credit with your customers and a halo effect over how they remember their entire interaction with you.

What is next for Micah Solomon?

Micah Solomon: In addition to taking care of my “baby” Oasis Disc Manufacturing, I’m enjoying spending more time speaking to organizations on improving customer service and the customer experience: mostly in the corporate world but also unique nonprofits like Operation Smile and Brown University.

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My book review of Exceptional Service, Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization by Micah Solomon and Leonardo Inghilleri.

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Exceptional Service, Exceptional Profit by Leonardo Inghelleri & Micah Solomon - Book review


Exceptional Service, Exceptional Profit

The Secrets of Building a Five-Star Customer Service Organization


By: Leonardo Inghilleri, Micah Solomon

Published: April 2010
Format: Hardcover, 192pp
ISBN-13: 9780814415382
ISBN-10: 0814415385
Publisher:AMACOM







"The single best thing you can do for your business is to build true customer loyalty, one customer at a time", write Executive Vice President and Managing Partner of West Paces Consulting, Leonardo Inghilleri, and President of Oasis Disc Manufacturing, Micah Solomon, in their highly practical and business transformational book Exceptional Service, Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization. The authors describe proven strategies for building customer loyalty, through providing service excellence, to build a lasting organization that creates a superior and memorable customer experience.



Micah Solomon (photo left) and Leonardo Inghilleri understand that many aspects of a business are outside of management control. The authors emphasize, however, that customer service is a part of the company that can be addressed and developed at every level of an organization. Because customer service excellence touches every aspect of the business, the authors provide a comprehensive examination of how small details of service can result in a very positive customer experience. This attention to the customer begins with the initial contact with the company, and then continues through every customer engagement with the organization. The result is customer loyalty and customer evangelism that extends far beyond one person, and touches many future customers as well.



Leonardo Inghilleri (photo left) and Micah Solomon recognize the critical importance of the employees in the overall customer experience. As a result, employee selection, training, and advancement must include a focus on customer service skills. The goal is to create an organizational culture of always providing the very best in service excellence. Because customer service is so personal, the authors point out that the best customer service is achieved one person at a time. The authors also realize that things can go wrong in every company, and there will be less than desirable customer experiences as well. The book contains valuable advice for turning those negative moments into a positive experience, so that the company recovers and learns from their mistakes.

For me, the power of the book is how Leonardo Inghilleri and Micah Solomon guide the reader through both the theory and the practical application of the entire customer experience process. They share important concepts on value pricing that includes the crucial element of customer service excellence. Even more importantly, the authors demonstrate that customer service is not a cost center as often believed, but instead is a business building and profitable part of the organization. To that end, the book contains an important section on measuring and tracking the value of customer service, and its contribution to the company bottom line. Because so much business is conducted online, the authors add a critical chapter on building customer service over the internet. Overall, the book is a complete course in creating the best in customer service, and turning that service excellence into a competitive advantage in any economy.

I highly recommend the essential and must read book Exceptional Service, Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization by Micah Solomon and Leonardo Inghilleri, to anyone serious about creating the very best in customer experiences in their organization. The book provides a complete guide to enhancing every aspect of the customer experience from a general big picture overview to the finest details of service excellence.

Read the brilliant customer experience book Exceptional Service, Exceptional Profit: The Secrets of Building a Five-Star Customer Service Organization by Micah Solomon and Leonardo Inghilleri, and turn your company into the gold standard of service excellence for your industry, with your focus placed on your customers. This book will transform your company culture, build powerful customer engagement and loyalty, increase your business profitability, and help you to out distance your competition.

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David Axson: The Management Mythbuster - Author interview



Management thought leader, speaker, and President of the Sonax Group, David A. J. Axson, was kind enough to take the time to answer a few questions about his provocative and thought provoking book The Management Mythbuster. The author takes a fresh and often humorous perspective on the most frequently voiced conventional management wisdom, and describes how much of what is taken for granted, is often very wrong and in need of some serious revision.

Thanks to David Axson for his informative and insightful answers.

What was the background to writing this book The Management Mythbuster?

David Axson: For 25 years I have observed (and often participated in) management processes that consume vast amounts of time and energy only for the results to be abandoned or ignored – from strategic plans that all but guarantee market domination, detailed budgets that project sustained earnings growth, to IT projects that promise incredible ROI’s. It has become not just a colossal waste of time but downright dangerous as managers rely on the results of these exercises to make decisions while all around them the world is changing ever faster. Thankfully the global credit crisis has brought the deficiencies into sharp focus

Why have basic management practices been overlooked as a root cause of the market crash and of the continued sluggish economy?

David Axson: First of all it does make for such good press as greed, stupidity and fraud. However we are seeing many organizations such as IBM, Proctor & Gamble, Google, and American Express embrace many of the changes that are needed from short cycle forecasting, rolling budgets to scenario planning and risk-based planning.

Why are these established business practices, taken as accepted wisdom, so dangerous to the companies and to the economy as a whole?

David Axson: These practices were designed for a different world – the post WWII era when manufacturing dominated, economies were largely national and computer and communications technology was in its infancy. So much has changed, today terrorist bombs in Mumbai (December 2008) or a flu outbreak in Mexico (March 2009) are not just items on the news but material business issues for many companies across the globe.

Are traditional management practices outdated in the rapidly changing modern globalized economy?

David Axson: The short answer is yes. There are rigid, calendar-based and excessively financial in focus. Five year strategies, detailed annual budgets and quarterly forecasts have little hope of remaining relevant in today’s volatile and uncertain world. We need management practices that are able to keep pace with the speed of today’s world – in short we need our management practices to act in real time just like our businesses

You make the statement, in the book, that strategic planning is of little use in times of great volatility and uncertainty. Why are strategic plans of little value to companies today?

David Axson: There is nothing wrong with developing a strategic plan providing the right focus is adopted. Larry Bossidy former CEO of Honeywell described it well, “Strategies are a road map lightly filled in.” Unfortunately too many organizations have developed very detailed strategies that have no ability to adapt to material, unforeseen events (“Black Swan”). We have had a lot of them in the last ten years: dot.com bust, 9/11, Hurricane Katrina/Rita, Asian Tsunami, SARS/avian/H1N1, credit crunch, Icelandic volcano, etc.



David Axson (photo left)

What is wrong with the current state of budgeting and operating plans?

David Axson: Apart from taking too long to create, being obsolete they day they are created, focused on the wrong things and offering a false sense of security, not much! In many organizations that level of detail in plans and budgets has become absurd and frankly our crystal ball isn’t that good. We need to “match our desire for detail with our predictive ability.” We also need to embrace uncertainty and not place all our bets on a single, albeit very detailed, view of the future that has little change of becoming reality.

You write that executive compensation rewards poor performance and punishes good performance. Why is that the case?

David Axson: The majority of organizations set fixed targets for compensation. For example, your target is to grow 10% or make $100m next year. The problem occurs when either of the following situations occur:

a) you grow 12% and everyone gets a nice fat bonus – but what if all your competitors grew by 15%? Did you do a great job or just have a bad plan? Consider the reverse situation which has been very prevalent recently.

b) The target is 10% but you only deliver 3% because of a down economy that was not expected when the plans were drawn up (think of 2008 and 2009), however all your competitors report huge losses and a shrinkage in the size of their business. In reality you are a hero but no bonus for you this year!

Is corporate investment in personnel and training wasted or just misdirected?

David Axson: Often its both! Too much effort is focused on developing generic skills (problem solving, communications, etc.) and too little effort is spent developing analytic and decision-making skills. A second problem area is IT training when a new system is deployed the training tends to focus on educating people on the features and functions of the software rather than how the system can be integrated in the overall performance management process. Organizations that fail to get this right will suffer in two ways:

a) They will never get the full return on their IT investments

b) Their best people will not stay around very long

Why has technology failed to live up to its promises?

David Axson: Two major reasons:

a) A lot of technology solutions have simply automated inefficient processes

b) Technology is only as good as the people who use it. This relates to the prior point on training – we do a very poor job at equipping people with the skills to use cool new technology to make better decisions.

What has happened to common sense in management, and what has replaced it?

David Axson: A large part of it is fear. After all we have been doing it the same way for decades. I jokingly say that common sense has been replaced by nonsense – unfortunately there is more truth to the statement than we would like. Every manager should ask himself or herself whether they think their business will be more or less predictable and slower or faster moving in three years time. If the answer is less predictable and faster moving then ask yourself if the processes you use today can cope.

What do companies need to do to end the myths that surround management?

David Axson: Take a little time to ask some basic questions:

a) What if the assumptions we have about the future are wrong?

b) How we will know they are wrong?

c) What will we do about it?

Simply asking these three questions can dramatically change the dialogue in the boardroom or executive suite.

What is next for David Axson?

David Axson: I am heading off to the Asia and Australia to take the message global. I am also working with a small group of organizations that get the need for change and we are building new processes that will allow them to confidently navigate tomorrow’s uncertain world.

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My book review of The Management Mythbuster by David A. J. Axson.

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The Management Mythbuster by David Axson - Book review



The Management Mythbuster

By: David A. J. Axson

Published: February 2, 2010
Format: Hardcover, 368pp
ISBN: 9780470463628
Publisher: John Wiley & Sons




"There are only two problems with the theory and practice of management today. We take the topic far too seriously, as the rows of earnest tomes in the bookshop testify, and we are too trusting. The body of commonly accepted wisdom is huge, and most of it is junk", writes management thought leader, speaker, and President of the Sonax Group, David A. J. Axson, in his provocative and thought provoking book The Management Mythbuster. The author takes a fresh and often humorous perspective on the most frequently voiced conventional management wisdom, and describes how much of what is taken for granted, is often very wrong and in need of some serious revision.

David Axson dispenses with any reverence for standard management practices which he describes as unable to cope with the fast changing market conditions of the twenty-first century. The author points out that outdated management techniques, if they were ever indeed valid, are simply of no value in a globalized and technology based world economy. They may even be counter-productive and causing an even faster demise of many corporations. For David Axson, the financial meltdown of 2008 was a clear indication that generally accepted and applied management principles were not only wrong, but also major contributors to the crisis in the first place. The well established management practices were helpless to better manage risk and uncertainty in a diverse and rapidly changing economy.



David Axson (photo left) points out that the standard management concepts were never even intended for twenty-first century management conditions in the first place. Because these management ideas were considered to be working well in more stable economic times, they were considered to valid for all conditions by their practitioners. As a result, they created a false sense of security because of their familiarity and seeming effectiveness. When the economy became globalized, and technology changed the face of business, the trusted management tools were worthless in the face of rapid change, volatility, and complexity of the modern economy.

David Axson describes six systemic management problems:

* Strategic plans are of little use in times of great volatility and uncertainty
* Operating plans and budgets provide a false sense of security
* Management reporting is driven by obsolete view of the world
* Incentive compensation rewards [poor performance and penalizes outstanding performance
* Investments in staff education have been inadequate and misdirected
* Technology has failed to improve and in many cases has reduced the effectiveness of management

For me, the power of the book is how David Axson takes a systemic approach to dispelling what he considers the most persistent and dangerous management myths. His book is a wake up call to any managers and executives who believe it's still business as usual. As David Axson describes, with humor and and in a very irreverent manner, the standard management practices are out of date in today's rapidly changing global environment. Instead of simply making incremental changes to existing management concepts, the author suggests a thorough reexamination, and a necessary discarding of many current fads and popular ideas. David Axson suggests that even basic common sense has been removed from management thinking, and has been replaced by conformity, standardized procedures, and ego based decision making.

I highly recommend the landmark, and must read book The Management Mythbuster by David A. J. Axson, to anyone seeking an entertaining book on bringing common sense and fresh thinking to the theory and practice of management. It's time for a complete reinvention of management theory and practice, and this book is a much needed eye opener for many managers.

Read the groundbreaking and idea transformational book The Management Mythbuster by David A. J. Axson, and discover the often unsettling truth, that everything that one may have taken for granted as fact, is now proven very wrong. Discover how real wisdom and clear thinking can work in the twenty-first century global and highly technological economy, and why it's critical to discard the obsolete ideas that were the root cause of the recent economic problems.

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