Regardless of how much we know today – that a business is only as strong as its customer service team – there are still some businesses that don’t realise they are offering bad customer service. There is nothing worse! Business growth can be completely trashed, when the client is expected to contend with terrible service.
The best marketing strategies, sales plans, and business tactics all go astray without a professional, positive, happy, well-trained customer service team. Here it pays to remember that the customer is king, and if he cannot be taken care of correctly, sales do not increase, and neither does brand loyalty. If world domination is the deal, and client care doesn’t feature big in that deal, then the best laid plans will go astray. The saddest thing is that many firms already believe they are offering the best care that they possibly can.
Let’s face facts; no-one wants to believe that they are bad at what they do. There is a customer client relationship, and like in most relationships; partners don’t like admitting that they are at fault. It is rare in the extreme for a firm to admit that their clients are not being serviced well. Much like a spouse rarely admits that they themselves are a terrible spouse. It is the human condition for people to believe what is expedient to believe.
These days most service agents are veiled behind powerful web-based tools. The same tools that are used to administer requests from the customer, are the tools that are used to manage the teams’ individual, as well as group success. Savvy web-based tools are just that, they are not human beings, and do not necessarily deliver an amazing customer experience. Conveniently, it becomes easy for management to jump to the conclusion that if the tools are working fine, then customer satisfaction is fine.
All growing, thriving, successful companies place a huge amount of emphasis on the actual customer experience – whether this is delivered in person, in live chat, on the telephone, or using other smart web-based tools. They want to know how and why their customers hare happy, and what their perspective is on the service they receive. Smart tools don’t automatically assume that a customer will be left happy, excited or gratified. The onus is on management to ensure that they assume nothing, and have all facts at hand.
The average online and even normal shopper is looking out for a memorable experience. Mediocrity just doesn’t cut it. Businesses that take cognizance of this, offer a memorable experience, and they do this with very good purpose in mind.
Todays’ successful business understands that offering fabulous customer service costs less than advertising does. They understand that training their team to be top of their game is vital – much more vital than managing damage control. It is much simpler to stop fires from starting, than it is to put out fires when a customer or two blows a fuse.
Therefore it is not state-of-the art web-based tools that are used to keep customers happy, but the experience of doing business with a company that pays attention to getting it right. Being amazing matters, where brand loyalty is the knock-on effect of making sure that the client feels good with the choices they have made.
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We are well into the second decade of the “New Millenium”, and while customer service tenets remain the same in their essence, its delivery has changed a great deal. Research has seen a remarkable change in the Rules of Engagement (ROE). So much so, that customers engaging with various firms using social media, are also being seen to spend up to 40% more than regular customers.
That is a large slice of the pie for all businesses that are intent on making profits (and why else be in business?) Expanding into new market places is an integral part of growth – in other words – making money. As a result of this, what is also being seen; is that customer service budgets for social media garnered sales, are also increasing in keeping with that consumer-base growth.
Social Media customers are not only demonstrating a larger financial commitment, they are far more deeply committed to brand loyalty. So, on an emotional level, there is also more depth in their commitment to these brand(s). However, there is also many more related risks for the business. The nature of the beast that is social media; means small mistakes can escalate out-of-hand fast.
Take for example a relatively recent fiasco when Mattel deleted posts to Habitats loose# on Facebook, and the slow response of Dell to images of an exploding laptop. These are prime examples of something going wrong. But today approximately 73% of all companies have at least three members of staff active on social media, promoting their products or services, and thereby – dealing with customers. They need to know how to respond fast.
Despite the fact that the social realm is a space which shows remarkable results by making use of highly flexible marketing strategies, firms are realising that snug internal control systems are highly desirable too. The fear of someone doing something “wrong” is a very real fear. Systems ensure that responsibilities are made clear, which prevents (hopefully), having to fight fire with fire.
Social media is a mega-force that a company can couple with to create cognizance, increase sales, enthuse brand loyalty, and much, much more. But from the very sentence used in conjunction with a firms’ identity, solid governance is required. It is a solid internal control system, and policies, that determines the ROE, and will help the firm, as well as its social media agents, succeed in this space.
Understanding the rules of engagement, means that social media teams need to be trained, and given guidance – these are pretty obvious fundamentals. The team requires integration regarding the brand, and a solid understanding of the strategy behind their function, so, a strategy must be in place first. By the way, a firm also needs to fully understand the whims of social media, before coming up with a strategy.
Errors in this space currently feature massively in the news. Someone is just waiting with baited-opposable thumbs to Tweet some-one else’s mistake. Tweeters (and others) get tons of pleasure out of trashing brands online! Many of the mistakes that make the news can be simply avoided with appropriate strategies. Appropriate strategies, together with a solid system of rules of engagement, will provide social media agents with a more astute understanding of the customs of this space.
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According to Wikipedia and “Turban et al. : “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met customer expectation.”
Today, customer service is becoming more scientific than ever but some of the science behind it is not new. It is much more than about before and after-sales service. We live in a global economy, where the Internet is the chief protagonist, and Competitive Intelligence (CI) is the new catchphrase of the day. CI is not the only “CIA meets the boardroom” taking place by means of Internet technology, but it is not rocket science, and any business can take advantage of the benefits derived.
Businesses are watching their competitors through their websites, and virtually every firm that means business, has an online presence. By the same token, every business that wants to be on top of the corporate heap, should be doing the same. So, as Spy vs. Spy as this practice might seem, it is a lot more out in the open than in the bad old days, when the KGB and CIA were crouching on either side of the Iron Curtain – furtively recording every move made. However the techniques used are very similar to those that took place during the Cold War.
Competitive intelligence is designed to help businesses anticipate moves, and respond to opposition. So, just like the CIA, MI5, and the KGB recorded, debriefed, tracked, scrutinized, and analyzed every of each-others motives, matching them move for move in a process called “trade-craft”. So too are businesses involved in a very similar systematic process that is just as highly effective – CI.
The basic theme is to achieve a better understanding of what another business uses which gives them a competitive edge. We are not alluding to anything illegal or unethical such as industrial espionage. An example of industrial espionage is stealing the secret formula for Coca Cola. CI is above-board, astute, well-thought-out, systematic and an innovation which that drives better conclusions for companies.
One thing we can guarantee any business owner (A) of, is that their competitors (B,C,D and E) have made it their business to learn about (A’s) methods, in particular if (A) is successful. (A) may be the biggest and best, but they still need to know what (B,C,D and E) are doing that enables them to have a stake in a similar market share. A Competitive Intelligence framework provides the tools to create more significant value, shape goals, formulate strategies, develop tactics, as well as counter threats from rivals in the same industry.
It is essential for any business to make a distinction between their brands, products, and services from rivals, even if these products are similar in nature. PWC (PricewaterhouseCoopers) has found that fast-growth firms use Competitive Intelligence, and find it to be either critically or at the least “very” important for enabling them to position themselves against threats, adapt to changes in the market, increase revenue, save money, and at very little cost in terms of return on investment. Even High School football teams use this methodology to great effect, and any business with an online presence, should be effectively making use of CI too.
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Here are some key ideas to make this work in practice:
Coach and Train For Success
Customers are human beings, a well trained and fully empowered group of customer care representatives reflect the truth of that. They’re able to make decisions in the interests of the business that deliver a great experience – there’s no need for a handbook or manual, it’s a matter of common sense.
Honesty and Integrity
No cheap tricks, no sleight of hand. If you have a returns policy – honor it. If you have a special promotion, tell your existing customers when they place a repeat order, don’t let them find out from another source and leave them feeling cheated. Treat people with respect and fairness, both inside the business and outside of it. If your staff work in a backstabbing, dishonest environment don’t be surprised when this carries over to the customer. In short a great place to work, delivers great benefits to customers.
Lead from The Front
This ties in with the last point. Your leaders must embody the philosophy that the customer counts. A disconnect between; “Do what I say not what I do.” is a recipe for disaster. They (your leaders) develop the culture and promote the positive business model.
Reward Excellence
If you have superstars on the phones, or on the shop floor – recognize them for it, and not with gimmicky employee of the month programs, pay them more and offer genuine career advantages like more training or flexible working arrangements.
Shout Out About Your Care
Make it easy for clients to get in touch, don’t bury your customer care number in small print. Make it a prominent addition to every piece of marketing material and branded collateral you have. Encourage unhappy customers to get in touch, don’t wait until they’ve moved to the competition and then try and win them back.
Remove Complexity
If your customers need to push 12 buttons before they talk to a person, that’s way too much. Make it easy for your clients to talk to someone as soon as they call. There’s nothing more frustrating than endless automated options and it’s better to reduce the level of upset facing an already unhappy customer.
Apply Common Sense
If you hire people you trust (and you should). Then you should trust them to do their jobs. Don’t set individual targets for call length or face-to-face time, let your people decide how much time is “enough”. Measure customer happiness and make that the basis of reviews and rewards. Then elevate the very best in front of their peers, and encourage them to meet those standards.
Building the right environment for client satisfaction is essential to win over business. It’s also the critical path to retaining that business and turning your clients into ambassadors for your brand.
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In difficult economic times it’s important to recognize where you can achieve the most value with your business. Retaining existing customers is important during the good times, in the bad times it’s vital. It costs more to win and service a new customer than it does to keep an existing customer happy and grow their relationship. Here are some key drivers to reduce churn in your organization.
Customer Service is the Bottom Line
The way you serve and support your customers is key to your overall business strategy. Customer service should be represented at boardroom level, and not as a subsection of sales. In a market where everyone is chasing a smaller pot – it’s absolutely essential to protect what you already have.
Customer Service Really Matters
Over 70% of clients rate customer service as the single most important factor in doing business. They place it above sales, marketing, brand, everything. Over 80% place after care for a major purchase as the determining point for future loyalty.
Your Customers Must Come First
When times are tight, people are more ready to switch suppliers or providers than ever before. Nearly 50% of consumers say that they would consider making a move if the benefits were right.
Cost Cutting Is Not The Priority
It’s easy to focus on new revenue streams and tighten care budgets, after all – sales are what count right? Wrong. Your existing customers spend more money than your new clients in most instances and serving them is cheaper than winning over new clients. Don’t slash care budgets to chase rainbows.
Well Trained Employees Deliver the Goods
If you want to have a reputation for the best customer care, then make sure your people are well prepared to deliver it. Invest in motivating, training and empowering your service staff – their level of professional competence translates directly into the customer experience. Happy clients means more money.
Engage with your customers and empathize with them
Remember your clients if you meet face to face, keep key details to make dealing with you more rewarding – on CRM systems. Use social media to broaden your reach. Make it easy for your customers to reach you, and make it easier to serve them.
Monitor Feedback and Complaints
Each complaint is potentially lost revenue, turning a complaint around successfully can bring enormous financial benefits to your business. Make sure you have the appropriate systems in place to track problems all the way through to resolution. Make sure you can analyze the data and use it to prevent some problems from occurring again in the future. In short be proactive for your customers, and don’t wait for a disaster before doing something positive.
Be Creative and Strategic
That means make sure that every point of contact is consistent in its approach and that customer delight (not satisfaction) is at the heart of what you do.
A downturn in the economy can still bring plenty of opportunities to the customer savvy business. Don’t waste that moment – go after perfection while your competitors are licking their wounds. Make your company the single best in your field, and listen to your customers tell the world about it.
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In the world of business today it has become plain to see that 80% of all sales come from 20% of all customer. It is for this reason that customer service has become the “be all and end all” of any business. Customer retention is therefore the most profitable business strategy.
Unfortunately not all marketing campaigns are designed with customer retention in mind, regardless of how necessary. In the majority advertising is designed to attract new customers, while existing clients are ignored and get left to move on to the next supplier.
Let’s look at two examples:
- The online gambling industry, while keen to attract new customers, has acknowledged just how important player retention is – without regular members, these websites cease to exist. The majority of their big promotions are aimed at VIP members and regularly returning players. While new customers are offered incentives to join, it is loyal members that are offered the cream. These websites spend fortunes on existing client promotions and 24/7 customer service, to make sure their very important players return to play, and are nurtured every step of the way.
On the flip side of the coin:
- Cellular telephone companies spend fortunes to attract new clients and give so much away that it appears that these incentives are completely insane. Sign a new contract and receive massive incentives, but current customers are rarely rewarded. Who wants free minutes between the hours of 12am and 5am, or a few ebucks that add up to nothing for a normal user? Therefore it makes good sense to sign a new contract with another provider who is offering something special, no matter how fleeting this might be – they can always move on again.
Experts agree that marketing dollars are far better spent on customer retention. This means we should be looking for ‘stickiness’, not new customers who will just go away. In the past ‘stickiness’ came naturally, but now we can drive to any mall, or even shop online, so, rarely stop to shop at the corner grocery store. By the same token, sales personnel are barely trained in customer car and don’t care to know your name. It used to be nice to have Joe from the corner store call you by name and ask how you enjoyed the ham. He kept his customer numbers, and would give you a telephone call to let you know that the new stock of Christmas hams had arrived – this courtesy was to his benefit.
As a result of new trends there are millions if not billions of disloyal shoppers. But with a little will and the help of advanced technology, this can actually change. We now also see superstores giving away loyalty incentives, they have the ability to keep large amounts of data on record and are re-establishing contact with the customer.
Word of mouth advertising is the most effective form of marketing of them all. It does not matter how many prices you slash, a customer won’t return or talk about your store if they don’t feel appreciated. Good customer service is about sending the customer away happy, so, you know they will come back again. It is much harder work to sell the same item to a different customer every time.
Good customer service is like starting a new relationship – one that the customer would like to pursue. Be helpful, train your staff to do the same; be consistent, always answer phones – that’s what “call forward” was invented for, and remember people want to speak to a person, not a machine. Reward customers well for loyalty, be patient when dealing with complaints, listen to what they tell you, only make promises that you can keep, walk the extra mile, throw in something extra for free, and train all your personnel to do exactly the same.
You may feel that it is trite for us to say; but good customer service is simple, it is simply a matter of old fashioned common sense and good manners. At the end of the day you, your product or your business will be judged by the action you take, and not by what you say.
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The fourth strategy: Communication. We live in a time of instant gratification. People can go online, type in something on their computer, and the results are up in an instant. Communication is very important but it needs to be done promptly. It is important to get back to people in a reasonable time frame. When people call you, get back to them within a few hours or a day as the latest. If it’s an e-mail, absolutely within a day to two days maximum. People want to know that you’re attentive to their needs. People will start to associate your quick response to their communications with your quick response to their needs and that’s a great association for them to make; a great reputation to have. That’s the kind of communication that you want to have. It’s not really a verbal communication per se, but it’s going to create the impression that you’re in tune with their needs. It is important that you show that you are in tune with their desire for a response and that you are there to deliver to them quickly and efficiently. If you can communicate and connect efficiently and effectively with your clients with an e-mail or with a phone call, then you can show that you are in tune with them and their needs.
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My final strategy is one of the most important ones:
Let them know that they’re special. Let them know that you appreciate them coming to you. As I said earlier, there are thousands of choices available to people in our world today. With just a couple of strokes on a keyboard and a few clicks of mouse, people can shop anywhere in the world instantly.
Why should they come to you? Well, if you’ve been communicating in the way I recommended in my previous posts, you know that communication is really important. But besides that, you also want to let them know that you’re grateful for them being there and that you appreciate them trusting in you, being willing to be part of your business, and being willing to help you grow.
There’s a great expression: “Reward the behavior you desire.” Reward your customers for doing the things you want them to do. If they’re shopping with you, you want to reward them. That reward could just be a letter that you write and send out. For the people who are reading this that are small businesses, I love handwritten letters in your own handwriting. A personal note that says, “Hey, thanks for shopping with us the other day, I’m glad you like that.” For people who have larger businesses, that’s not practical and then an e-mail version or some type of a mail system that can generate letters for you is great. But let them know that you appreciate them. And I’m not talking about a follow up letter to sell them more stuff. I’m talking about a letter or a note or a call or something just to let them know that you’re glad they’re part of your business; that you’re glad that you had the chance to serve them.
If you put all of these five communication and customer relationship building strategies in place in any existing business system, your business will do better, your customer loyalty will increase, your profits will increase, and you’ll be able to serve more people. A win-win for all around!
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