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The Best Ten Ways to Be Business Smart

2012-12-13T20:15:00.001-08:00

TIPS FOR BEGINNING HYPNOTHERAPY PROFESSIONALS - THE 10 BEST!

1. Professionalism

It is very important to think and act as a professional. This would mean dressing to look professional too, especially when one is new in this line and needs to convince others to trust you. The place where we operate should also be visibly professional and should be designed to make people feel comfortable. Being a member of a professional group is also good.

2. Confidence

Being confident is very important, especially since most of the cases you work with are on self esteem issues. If you do not project confidence, how can you expect our clients to be confident in what you do? When my clients tell me " I hope my ....." I tell them, "Don't hope. Just believe. And if you want it so badly, you will get it". This is a great confidence booster.

3. Knowledge

No one can deny the importance of knowledge in our field. Although you've had the best training, there's always something new to learn. So actively seek knowledge in your field. Taking a refresher course is also useful. In fact, when you take advantage of repeat courses, your knowledge of the essential parts of the course can become clearer. Then there are many books you could read and you could gain much from being an active member of email groups that discuss hypnosis.

4. Practice

Also, there is little gain if one just keeps on reading and gaining more and more knowledge without practicing. When you actually do the work, not only do you learn more, your confidence also soars. You can always learn from your 'mistakes'. Remember, the more you practice, the better you become. And when you actually start practicing, more questions will arise and so will answers and you'll find yourself filling spaces of your hypnosis puzzle!

5. Interpersonal Skill

You will need to talk to a lot of people and learn how to interact with them. Sometimes how you say something will make a difference as to whether they want to be seen by you. This is applicable not only for face to face conversations but also for telephone conversations. Due to moods, sometimes even the well seasoned speaker may make a mistake or two and lose customers as a result, so don't beat yourself about this. Also the more 'slips' you make, the more you learn and the more the next client will benefit from your experience. So, just keep refining your speech as you continue practicing

6. Competence

Competence comes with lots of practice and knowledge. When we are competent, we get more clients who will even recommend others to us. Keeping in touch with all the latest techniques available polishing our skills all the time through practice makes us competent in what we do. To be competent is to be skillful.

7. Mailing List

Keep a mailing list of all those who have enquired about your services and send them regular emails by providing some interesting details. However it is important not to spam them and you should allow them to unsubscribe from the mailing list whenever they wish. And when they need to see a hypnotherapist, they'll think of you- someone who's available and easily accessible.

8. Advertisement

You may want to do some marketing of your services so that people out there know that you exist. Today the best way other than the yellow pages is to maintain a web presence. Also your satisfied clients will be your walking advertisements, so make your work client centered. And most importantly, they should be truthful and reflective of the true nature of your business.

9. Perseverance

Sometimes things may seem like an uphill task. These are the times when you need to be like the deaf frog that continued hopping up the hill despite taunts from the crowd and despite the fact that all the other frogs succumbed to the heat and the steep slope and gave up. The message is: Don't give up easily!

10. Contribution

The most important asset of a service provider is the contribution he or she makes to the community, either in individual services or in a group. It is alright to want to achieve financial goals, but you can also contribute to your community by volunteering to give free public talks to educate the masses about the benefits of doing hypnosis. This way, more people get to know about your profession, and of course at the end of the talk, you may distribute your name cards and brochures about your service.

Ten Ways to Double Your Customer Base in Four Weeks

2012-12-13T20:15:00.000-08:00

The secret to a truly successful business lies within a keen understanding of the needs and desires of the market - and it is ultimately individual people who constitute that market. By connecting to those who want the products and services offered and communicating consumer benefits to them, businesses gain new customers and clients. But the problem faced by many entrepreneurs is that they either fail to define their potential customers or they lack the skills, resources, and strategies necessary to forge valuable relationships with them.
Promotion is essential, and a focused and effective marketing plan to promote one's business can easily double the customer base within four weeks. By following a few tips and engaging in some time-tested initiatives, the process can be both easy and lucrative.
Here are ten tried and tested methods for adding new customers in record time...
1) Build a Loyalty Ladder to Create "Raving Fans"
Loyal customers are ideal customers. Those who sometimes refer others to the business are even more valuable. But the most prized clients and customers of all are those who become so energized about the level of service they receive that they cannot stop telling others about it. These "raving fans" are a tremendous source of new customers. If a business makes a concerted effort to identify loyal customers and then offer them such a high level of service that they become cheerleaders for the business, the investment pays off many times over by expanding the customer base with premium customers.
When others witness this kind of VIP treatment they will likewise become inspired to rave about the business in order to enjoy the exclusive benefits of this preferred customer relationship.
2) Identify a Target Market for Direct Mail
Direct mail campaigns work best for reaching a consumer demographic that is defined and identified as a focus group. Unlike broad methods of advertising that hit everyone within a given geographic area, direct mail is intended to arrive at the doorstep of those consumers who are already known to be great candidates for products and services. To clarify the demographic, it may be helpful to know, for example, basic information about the recipients such as their age, gender, income level, buying habits, and place of residence.
3) Weed Out Bad Clients and Cater to the Best
Contrary to popular belief, it is sometimes advantageous to lose customers if the business owner deliberately orchestrates the loss. Prioritizing the kinds of customers a business prefers to have makes it possible to eliminate those who create unnecessary headaches and detract from better serving other, more valuable customers. And it also allows a company to focus on attracting those desirable customers who represent the bulk of the business and contribute most to the profits.
Losing those who are a liability is actually an asset that can help increase the number of customers in the profitable database.
Identify who the best customers are and treat them particularly well and invest extra energy in satisfying their needs while extending service above and beyond the call of duty. They form the core of the customer base, and by cultivating them it is possible to create more customers who are similarly extraordinary, loyal, and lucrative.
Birds of a feather flock together and the needs of the best customers will always be the same as the needs of the best potential customers the organization is trying to attract.
4) Create Strategic Business Alliances
By partnering with other businesses with which there is a common customer demographic but no actual direct competition, a company can expand its customer base quickly and easily. Those customers who trust other businesses and have proven their loyalty to them will be inclined to follow their recommendations or perceived endorsements of an alliance partner - which is why corporate sponsorships of major events like auto races and concerts are so common.
Locate businesses that share the same philosophy, style, and corporate culture or personality. By choosing good alliances it is possible to build all sorts of creative campaigns to increase the customer base.
Create a "win-win-win" situation for your business, their business and for shared clientele.
5) Use Radio, TV, and Newspaper Advertising
Getting the word out through mass media is often the only thing necessary to vastly increase the number of customers, but many businesses devalue this kind of effort because they are not willing to pay for advertising or they don't understand how it can help.
For those businesses that are on a tight budget, classified ads in local newspapers are an easy way to enter the local ad market. Another affordable but effective tactic is to use press releases.
6) Train and Support Employees to Improve their Skills
Valued employees - are ones that business owners invest in to help them further their careers and skills by developing a sense of ownership and responsibility that can boost a business' customer base dramatically. Employees come in contact with people every day, both inside the place of business and elsewhere. Someone might be a potential customer because they walk through the door, but it may take a certain level of professional skills to convert them into paying customers. By helping that employee learn the skills needed to promote the business to those contacts, it is possible to capture new customers.
7) Improve the Conversion Rate for Leads and Contacts
Keeping tabs on leads or sending contacts costly mailings can be a drain, not an asset. As leads and contacts are made, they need to be converted as soon as possible into customers. Otherwise they can simply become a nuisance and a labor-intensive list of names. Once someone becomes a lukewarm lead, it is important to warm them up so that they become a hot prospect and then a loyal customer.
If the current conversion rate is 20 percent for every 100 contacts or leads, boosting it to 30 percent represents a 50 percent increase in customers. Then, systematise your conversion strategies so that once a new contact enters the leads database, they are automatically cultivated and nurtured to become a paying client.
8) Convert a Single Customer into Multiple Customers
One of the easiest ways to increase the number of customers is to concentrate on those already in the database. This kind of conversion is often just as lucrative - but far less expensive - than trying to drum up business from cold-calling those who have never stepped foot in the store.
9) Go Online and Drive Traffic to the Brick and Mortar Location
Create a website and it will act as a customer magnet that never sleeps and a business presence that extends around the entire world almost overhead-free. Give site visitors something valuable in exchange for them providing more information about themselves. But keep it simple so visitors are not intimidated or tired out by the process.
Attract 10,000 visitors to the site per month and convert only one percent of them and that will add up to more than 1,000 new customers per year. Convert 10 percent and 1,000 new customers will show up within the first four weeks - an astonishing result that is entirely plausible and achievable.
10) Increase Visible Exposure
Brand recognition is powerful, and we live in a visual world of shapes and colors that are constantly competing for our attention. Capitalize on visible exposure at every possible opportunity and it will soon increase the customer base while strengthening the brand. Put a business logo and tagline on shopping bags, give away beverage coasters, key chains, and coffee mugs. Look for every chance to come out from the shadows and be seen, because the more a business is seen by potential clients, the greater is the chance for that business to double its customer base in a short period of time.
Once a business manages to recruit customers, it is important to maintain consistency through ongoing marketing campaigns that strengthen the relationship, expand upon it, and further respond to the wants and needs of those customers. The investment necessary to find, identify, and attract a new customer is much greater than the energy and effort that is required to retain an existing customer who will reward the business with loyalty, referrals, and greater profits over multiple transactions.
Neglecting to follow through and preserve "top-of-the-mind awareness" once it is accomplished is a common mistake made by business owners, and it is a costly one, because those customers will be lost to competitors. Once a customer shifts loyalties it is twice as hard to win them back.
So it is imperative that the end of the initial four-week strategy be viewed as the beginning of a lifelong relationship.

How to Lose Customers

2012-12-13T20:13:00.004-08:00

Have you found that you have just too many customers? Are you looking for a way to get rid of some of those pesky customers who seem to keep coming back and taking up all of your time? Would you like to have time to do more important things, like spend your time trying to get new customers, rather than spend so much time taking care of existing customers? Have no fear, we have gathered some of the top ten tips for weeding out the heard and getting rid of customers.

- Play games with their finances, avoid paying rebates or ignore discounts

- Lie to your customers or intentionally mislead them

- Forget previous promises and refuse to live up to your commitments

- Make false claims or advertising about your products or services, practice "puffery"

- Make it virtually impossible to get in touch with a human being, add more menu options to answering services do not return messages

- Disrespect your customer, pretend they are not there, ignore them, be rude or condescending

- Blame problems on company policy or coworkers, take whatever tact is necessary to avoid personal responsibility

- Remind your customer that you are the only option

- Assign numbers to your customers and avoid using their names, make them look for their number

- Tell them to quit whining because there are other customers who have the same problem or have it much worse

Have you tried any of these tactics with your customers already?

If you are not trying to give away your customers to your competition, what are you proactively doing to insure that the opposite approach is being taken? It is not just a matter of trying to avoid these top ten tips for thinning the customer herd, it is about proactively doing the opposite. The odds are that several people in your organization are already practicing one or more of these top ten tips. What can you do to instill a culture that embraces a well defined alternative approach?

The odds are even greater that many members of your competition are practicing several of these top ten tips for getting rid of customers. As your competition becomes more prolific at practicing the art of losing customers, what can you do to create an environment that rewards associates for embracing and evangelizing customers?

There is a very simple barometer for measuring which side of the customer-centric fence your organization inhabits. Just ask this one simple question, "What gives you a greater sense of satisfaction, getting rid of an annoying customer or keeping one?"

- Act responsibly to protect the finances, assets and investments of your customer, they are investing in you

- Be honest and trustworthy, especially when it seems uncomfortable to do so

- Only make promises that you can keep and then keep them

- Exercise Truth in Advertising

- Design automation for customer ease and convenience, not for avoidance

- Treat customers with courtesy and respect, they are your shareholders

- Take ownership and command to find solutions and then coordinate internally if other resources are necessary

- To keep the competition away you need to 'win' your customer with every contact

- Numbers and Accounts are for identification, but authentic relationships are for people

- Listen

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Words of Wisdom

"Sow good services; sweet remembrances will grow them."

- Madame de Stael

"Always render more and better service than is expected of you, no matter what your task may be."

- Og Mandino

"Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality."

Top Ten Ways to Lose a Customer

2012-12-13T20:13:00.001-08:00

After days of searching online, I found a website that I thought sold the item I needed. Excited, I scoured the website for the price of the product and the payment. Unfortunately, I never found the information. After ten minutes of searching, I gave up.
No matter how many visitors you are able to attract to your website, there are still ways to lose them before making a sale. Below are the top 10 ways to lose a paying customer.
1. Navigation - One of the easiest ways to turn off a website visitor is create a complicated website. If a customer struggles to find their a product, they will more than likely get frustrated and leave the website before they buy.
When I first designed my website I had no idea about design. Looking back, I'm not sure I accomplished pretty and I did not create an easy website to navigate. Much like the one I mentioned earlier, my website was frustrating to visitors.
2. Busyness - The wrong type of website can turn off visitors and repel sales. Create a website designed for your target audience. For example, if you're selling aromatherapy products, you'll want a relaxing environment. However, if you're a life coach you want to pump people up. Your website should be full of life and activity.
3. Sizing - Many websites make the mistake of sizing their design to fit their screen. Unfortunately, the standard resolution that most monitors are sized to (800 x 600) does not always match. When this happens, visitors must scroll not only up and down the page, but left and right as well. To eliminate this frustration, set you width to no more than 800 pixels.
4. Point of Contact - When visitors to your website have a question they want to be able to easily find your contact information. Many websites display their email address, phone number, or a link to their contact information either in their menu or at the top/bottom of their website, which makes it easy to find.
5. Hidden Pricing - Customers want to have all of the necessary information before they make a purchase. Make sure your prices are available up front. When customers have to dig for pricing information, there's a good chance that they will get frustrated, give up and leave your website.
6. Customer Service - You can set your business apart from all the rest by offering fast, friendly and helpful service to your customers. Try to respond to emails and phone calls within twenty-fours hours. Smile while you type or talk on the phone because your customers will hear the lilt in your voice and respond.
7. Follow-up - If your customer asks a question about a product or service, follow up within 48 hours to see if they have further questions. Many times this follow-up can lead to a sale. Neglecting follow-up can lose you customers.
8. Spam - If you offer a newsletter or other type of mailing list, be careful with what you send to your subscribers. Avoid mailings that look like spam. Choose a template that works for you and that will be recognizable to your readers.
9. Professional Conduct - In the business world it's important that you're professional, especially when dealing with difficult clients. It's imperative to be kind, courteous and take care of business. Refrain from any type of name calling or blame placing. Stand up for your business in a professional manner and treat your customers with respect at all times. Remember the old adage -- the customer is always right.
10. Payment Options/Security - Customers want to know that they can trust you with their financial information. Choose a payment provider that offers a secure way to transit orders and credit card information. If possible, offer more than one payment option to give your customers the ability to choose how they will pay.
Creating a website that is customer-friendly isn't as simple as one might think. There are many aspects to consider and the designer must choose carefully or risk losing sales. Avoid these ten no-no's and make your website into a successful business venture.

Privacy Policy

2011-12-29T18:23:00.000-08:00

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Ten Ways to Lose Customers

2011-12-29T17:57:00.000-08:00

"To any enterprise, there are no jobs more important than those serving its customers."
Isn't it ironic that it takes years to build a great customer relationship but only moments to tear one apart! There are so many ways to lose your existing customers, if you aren't careful in your dealings every day. I came up with these ten ways to lose your customers, but these are by no means the exclusive list. What is interesting is that each of the ten service points I've covered below can be turned around into a great way to actually reinforce, and retain your customer relationships to make them even stronger. The common thread I found to achieve great customer service requires staffing great people, training them, and retraining them. It also helps to have a company culture that values service over everything else. I suggest you review these examples with your entire customer service team!
1. "BROKEN PROMISES" - Customers get upset when a company makes promises that aren't fulfilled. This has been referred to as "over-promising and under-delivering." Adopt the philosophy that you will always live up to the commitments you make to your customers. Teach your customer service team, "A promise we make is a promise we intend to keep... each and every time." When someone on your customer service team makes a commitment to one of your customers, your company must stand behind that commitment, even when it costs you money. Admit your mistake, apologize to the customer, and do what ever you can to make them happy. Remember this: a customer who is unhappy with your service will tell everyone they know exactly how poorly you treated them. Failing to live up to your commitments to one customer may end up costing you business from several of your other existing customers! When you treat your customers poorly you need to realize that you are driving business to your competitors! Teach your customer service team to "under-promise and over-deliver!"
2. "SHUFFLING THE PROBLEM" - We have all experienced the frustration of contacting a company by phone, regarding a complaint, and then being transferred from one unhelpful person to another. "Customer shuffling" is a nasty customer service practice the employees in some companies use to avoid taking responsibility for dealing with a customer's problem. When this has happened to you, do you get the same feeling that I do, that this company doesn't really care about me, my problem, or my future business? To solve the "customer service shuffle" your company has to create clearly written procedures that each customer service representative must follow in order to address common complaints. When you train your people, and empower them by giving them the decision making authority they need to solve customer related problems, you avoid their need to shuffle dissatisfied customers around. Empower the employee who receives a customer complaint to follow up on it, from beginning to end. Customers are happiest when the customer service representative (CSR) who makes the initial contact also has the decision making authority to resolve the complaint quickly and easily. Ask yourself this question: How important are satisfied customers to my business? The correct answer is not only "yes they are very important", but you should realize that satisfied customers are the key to your past, present and future success! Don't ever forget that a satisfied customer is likely to return to do business with you again and again while, unfortunately, your customers who leave dissatisfied are likely to be gone forever!
3. "POOR SERVICE ATTITUDE" - We have all dealt with customer service people who project the attitude that, "it's not my problem." This really makes customers angry! When I sense this is happening to me I take action. I quickly assume the customer service representative lacks empathy for my problem, so I immediately ask to speak to a customer service supervisor (CSS)! I think that's what most of do when this happens. For this reason, I believe you should have a written procedure in place describing what your customer service team should do when a customer is extremely unhappy or irate, and to have a procedure in place. Establish a practice of monitoring interactions between your CSR's and your customers. Have your customer service supervisors monitor actually customer phone calls and do it often. Finally establish standards for customer service and deal with employees who are rude or project an uncaring attitude to customers. Remember: your company only gets one chance to make a first impression on your customers so make sure that first impression is a good one!
4. "MAKING CUSTOMERS ANGRY" - I've gotten mad plenty of times when I have had to deal with customer service people concerning product or service related problems. Sometimes my problem is solved to my satisfaction and sometimes it isn't. When I am still unhappy or angry with quality of service I received you can bet I won't do business with that company again, and I suspect you wouldn't either! But some companies have a way of calming down and satisfying even their most unhappy customers. Do your service employees know how to do this? What do your employees do with irate customers? Do you have a procedure in place? Show me a company where the customer service people know how to satisfy those unhappy customers and I'll guarantee you that company trains its people well. Here is an idea I would recommend to you to turn dissatisfied customers into satisfied customers. It's called TRAINING! During the initial orientation of newly hired customer service employees you should make sure each member of your team is thoroughly trained on when to refer customers to a supervisor. During the orientation, using role playing, each of the members of your team should gain hands on experience dealing with a variety of actual service related problems that have caused your customers to become irate in the past. With a written customer service procedure in place, a strong orientation of new employees, and ongoing staff training using role playing, your team will be ready to address any customer related concern.
5. "LACK OF FOLLOW-UP" - You can't always solve every customer related problem in a matter of moments. Let's face it, there are times when you do need to research the problem and get back to the customer at a later time. There is nothing wrong with explaining to the customer that you need time to investigate their problem. But when this happens be sure to make a commitment to the customer of a specific timeframe within which you will get back to them with a response. Failure to get back to a customer, once a commitment is made, is like telling them that their business is not very important to you. It also sends the message that the people in your company lack integrity. If you are going to be delayed in responding make a point of letting the customer know. Provide updates as soon as you have them. Teach your team how important it is to live up to their commitments to your customers and to one another. Remember: Customers don't want to hear excuses from a company they are trying to do business with! Treat your customers the way that you would want to be treated! Teach your team to follow this simple standard, "Make commitments, and then follow through on them every time!"
6. "ALIENATING CUSTOMERS" - There is an old adage in customer service circles, "the customer is always right!" Those of us who work in customer related jobs know this isn't literally true, but when it comes to our customers we act as if it were! One hundred percent of the time, in our dealings with customers, we need to project a positive attitude, along with respect for our customer's point of view. It serves no purpose to argue with our customers, and those who do come to find out the outcome is never really positive for their business. You may win the argument now and then but you will more often than not lose a customer. What is one customer worth? If you treat them right you may be able to count on future business, and good word-of-mouth advertising. Argue with, and debate with your customers, and ultimately prove your customers weren't right, and you are likely to lose that customer for life. That's the customer service version of "winning a battle but losing the war!" When you work in a job where you are in contact with customers, you can't afford to have a "bad" day. Don't ever forget, if it weren't for your customers you'd be out of business. If you treat your customers poorly they'll vote with their feet by doing business with your competitors. Adopt the attitude that your customers are always right, and you're on your way to establishing customer relationships that may last a lifetime!
7. "REACHING AN IMPASSE" - From time to time, no matter how hard we try we aren't going to be able to satisfy every customer. Even the most experienced customer service representatives (CSR's) run into customer related problems over which they just have no authority. There is a way to avoid leaving the customer with a bad feeling about your company and it involves having a simple procedure in place. The answer when this happens is for the customer service team to get a supervisor involved in a discussion with the customer immediately. Time is of the essence, and it is critical for your service team to know exactly what to do. I recommend that you train your CSR's to take the following steps:
I. Initially, your CSR should work directly with the customer to resolve the problem.
II. If an impasse is reached, ask the customer to speak with a supervisor.
III. The CSR Supervisor listens to the customer's concern. Sometimes the process of simply listening to the customer, and letting them vent their concerns, seems to extinguish the size of the original problem.
IV. The CSR Supervisor attempts to resolve the problem and satisfy the customer.
V. At this point, if an impasse still exists explain as clearly as you can your company's policy and why an exception cannot be made. The key is to "seek understanding from the customer, not agreement!" Often, once the customer understands your explanation of "why", they are more likely to accept the decision, though they may still disagree with you.
VI. Apologize for any inconvenience the customer has experienced and thank the customer for their business. Unfortunately, in some cases, the CSR Supervisor and the customer will end their conversation at an impasse simply "agreeing to disagree."
Teach this procedure to everyone and post a copy of it on every bulletin board. Review it with new employees and periodically discuss it at team meetings with your entire staff. If your company wants to be known for having great service the key is to provide ongoing customer service training to everyone who is contact with your customers.
8. "APATHY TOWARD CUSTOMERS" - Do you know who pays the bills at your business? I am talking about the rent, lights, gas, electric and even your pay and benefits. The answer is of course your customers pay all of your bills by choosing to spend their hard earned money on your products and services. But customers can change their buying habits, and they do it all the time. Don't ever forget they can choose to walk away from your business in favor of spending their money on your competitor's products and services. Think about that for just a moment. In fact you should think about that every day! What are you doing to make your customers want to continue doing business with you? Are any of the people servicing your customers taking your customers for granted? There are plenty of alternative sources for almost every product imaginable. Is there a compelling reason why your customers should continue doing business with you? Think about it, talk with your service team about it, and do something about it, NOW!
9. "NON-COMPETITIVE PRACTICES" - Customers have more options for purchasing products and services than they have ever had before. Everyone has internet access, and they use it to compare products and services. You should make it a practice to study the competition. Study their pricing structure for products and services against your own. Customers don't mind purchasing from a business for a fair price. Study your competitor's pricing structure and make adjustments accordingly. Don't underestimate the intelligence of the shoppers for products like yours in the marketplace. People are smart and the market will dictate what you can expect to charge for your products and services. It is important to remember that the customer expects you to make a fair profit, but no more!
10. "MISHANDLED PRODUCT ISSUES" - When a customer makes a purchase it is quite easy to smile and thank them for their purchase. How does your service team react when that same customer tries to return that purchase for a refund or a replacement? Often customer service people are well trained to sell products and collect money. Less time is typically spent on teaching the importance of service after the sale. Your customers will learn more about your company from the way you deal with a product the customer wants to return to you, than they will from the way you handled their original purchase. Do you provide service with a smile? Are you just as glad to see the customer making a return as someone who is making a purchase? The reality is that you should handle both transactions in the same positive manner. Some companies have restrictive return/service policies which create bad feelings for their customers. If you treat your customers well when they have a problem they will reward you by returning again and again to make future purchases. If you mistrust your customers, and make them feel like naughty children when they try to return a product, they'll leave you, and spend their money elsewhere! Show your loyalty to your customers by taking care of them when they have a problem, and they will reciprocate by being loyal to your business. A good rule to follow is this: take care of your customers, the same way you would want to be treated under similar circumstances if the same thing happened to you!
"When you stop worrying about making money, and concern yourself with taking care of the needs of your customers, success will follow." Michael Bergdahl
Ten Ways to Lose Customers
by Michael Bergdahl
International Speaker, Author, & Wal-Mart Competition Authority

Michael Bergdahl
"Professional International Speaker on 6 Continents, Author, And Authority on the Best Practices of Wal-Mart & Sam Walton"
His Background: Michael Bergdahl is a professional international business speaker, author and turnaround specialist. Bergdahl worked in Bentonville, Arkansas for Wal-Mart, as the Director of "People" for the headquarters office, where he worked directly with Wal-Mart's founder Sam Walton. It was Sam Walton who gave Bergdahl the nickname, "Bird Dawg!" Previous to Wal-Mart he worked in the FMCG Industry for PepsiCo's Frito-Lay Division in the sales organization and headquarters staff assignments. He is also a turnaround specialist who participated in two successful business turnarounds at American Eagle Outfitters, and Waste Management.
Wal-Mart/ Sam Walton Authority: Michael Bergdahl is considered an authority on the best practices of Wal-Mart & Sam Walton.. He has appeared on CNN, CNBC, CNN FN, MSNBC, CNN International, Univision, CBS National Radio and Bloomberg TV. He has participated in internationally televised news debates on "Power Lunch", "On the Money", "Morning Call", and "Closing Bell". Articles written by him, and articles written by others about him, have appeared in business newspapers and magazines around the world. Bergdahl is the moderator of a LinkedIn discussion group called, "Wal-Mart's Best Practices - Super Group" with more than 2900 worldwide members including: Retailers, FMCG Product Manufacturers/Suppliers, & Supply Chain Professionals.

Customer Care

2011-12-29T17:56:00.001-08:00

Service of mankind will secure leadership.
(A Conceptual-Practical Roadmap towards Stable Customer Account)
Introduction
Business venture is an interactive phenomenon of interdependent individuals to attain financial benefits. The ultimate motive of a business venture or an entrepreneur is to earn profit, so that a successful business venture is evaluated on the basis of its economic returns. An economic return or profit is outcome of multiple factors such as effective entrepreneurship, efficient resource management, knowledge management, customer satisfaction, supportive government policies, and booming global conditions. These factors can be grouped into two categories - success factors & performance indicators. A success factor leads towards successful business, while a performance indicator leads towards better performance of a business. Success means profit and performance means profit level. The most inevitable success factor of a business venture is Business Location, while the vital performance indicator is Customer Care. A wrong selection of business location leads towards business closure and customer dissatisfaction means less demand or low return; the ultimate outcome of low return is business closure, too. Appropriate business location gives stability to entrepreneur, while a caring approach towards customers mean stable customer account or loyal customers. A suitable business location gives better start to a business and customer satisfaction gives long-run sustainability to a business. Moreover, a better selection of business location is helpful to meet supply constraints, while a sensible approach towards customer care is supportive to tackle demand pressures.
Customer Care has two dimensions - perceptual and practical. At practical level, it is careful behavior towards multiple needs of customers, while at perceptual level; it is helpful mindset towards multiple needs of customers. Customer satisfaction is ultimate achievement of a business venture. It provides sustained sales or reasonable return over a long period of time. The very bases of customer satisfaction are better production techniques and good distribution system. The twin strategies, efficient production & effective distribution, produces and delivers the product with zero defects and develops lifetime or loyal customers. It is noteworthy that the production contents or prices are generally equivalent for identical category of products or services in a competitive economy, so that, the dominant aspect of any customer care process is to enhance distributional ease for customers, technically speaking; it is application of Customer Relationship Management (CRM) model.
Customer Relationship Management (CRM) is the process of taking care of customers before, during, and after the sale of a product or service. A caring process is started when a prospective customer hears and responds about some product or service, hopefully, it never ends. The final target is to create a Loyal Customer or to achieve Customer Loyalty. Ideally, customers should enjoy the process of buying / hiring as much as they enjoy use of product / service. In the real world this is very difficult. Business owners may not be able to remove the all hurdles that can get in the way of positive customer experiences, but they can be managed by implementing some psychosocial approaches towards customer's expectations. A quality production, competitive price, friendly environ, accommodation of social norms of customers, correct information to customers are some necessary steps towards better customer care.
Good customer relations are not accidental outcomes of business life; rather good customer relations are outcome of good business processes, both operational as well as structural. The multiple institutional processes enhance the level of customer satisfaction, like having a set procedure for selling, the best after sale customer caring practices help and ensure that customers will remain satisfy throughout the process of buying and using. A satisfied customer is inevitable objective for business success, the prominent signs of satisfied customers are:
· Repeated buying interaction with the organization,
· Telling friends and colleagues about the advantages of dealing with and purchasing from the organization, &
· Giving appropriate feedback to organization from time to time.
Businesses flourish and develop on old & new customers. However, customer creation is a lengthy and complicated process. It is the process of winning both heart & mind. A product / service satisfy the emotional and perceptual aspects of customers. The whole institutional process is involved, directly or indirectly, towards better customer experience. A repeated customer is indication of satisfied customer. In order to maintain customer loyalty or repeat, a business provides a consistent buying experience to her customers. It is cost-effective, time-saving, and efforts-saving to satisfy an existing customer as compare to create some new customers. An empirical study calculated that an organization spends/needs five times additional resources to find a new customer against the cost to keep an existing customer.
Customer Decision Analysis
It is generally true that 80 percent of profits come from 20 percent of customers. However, the total customer base is important. The small customer enriches the organization, generally, through proper feedback. The right approach is to differentiate the responsible customer from detractor. A detractor customer is unreliable, non-cooperative, and unreceptive and criticizes illogically and arrogantly due to some psychological / social leanings. A responsible customer is logical, conceptually, loyal, emotionally, and reliable, practically. Moreover, a business face, generally, two types of customers, we may call them trendsetters and trend-followers. A trendsetter is leader customer; he/she sets the tone and trend for market. The follower customer is affected, extremely, by trendsetters, he/she is influenced by snobbish / bandwagon effects. An entrepreneur can also set some trends for masses through some innovative marketing techniques. For example, Microsoft settled some new attitudes of public towards computer and software. A great number of transnational companies do it for their products and services such as McDonald, KFC, and Pepsi.
An item or service is bought due to multiple reasons such as utility, price, and social fads. Consumers in any market tend to select one product or service over another based on their perception of its value. Value, simply, is quality at some right price level. Quality also includes non-price attributes, such as product delivery system and customer service. A customer's perception of right price is a composite of several factors such as need, facility, aesthetic, delivery procedure and price of alternatives. It is responsibility of management to make her product / service valuable for existing and prospective customers. A continuous and dynamic review of market situation is necessary to maintain comparative advantage. An innovative approach towards multiple marketing techniques / channels is necessary for persistent satisfactory buying experience.
A customer finds countless differentiated products in the market. There is, sometime, very little difference in content and price of the product or service. For example, customer has countless varieties of dresses to wear / houses to live / vehicles to travel. A competitive/differentiated situation can be managed through better delivery services and after sale services. Advertisement is supportive just to create one time experience; repetition is outcome of customer satisfaction. A customer leaves due to multiple reasons such as non-caring staff, product dissatisfaction, product price, and price of alternative products. The most important is non-caring attitude of staff towards customers. It is noteworthy that competitive environ or availability of differentiated products or services can change the customer mindset towards buying or purchasing at any time.
A Customer Value Analysis is used to evaluate basis of customer decision towards product/service; it gives concrete understanding of market-perceived quality profile - price profile. The proper understanding and utilization of customers' valuation approach gives an edge over competitors and improves the market share of a business. It has three levels:
Basic / Expected: - At basic level customer needs are assessed and customer is expecting these basics from you. The basic needs of customers must be satisfied for the survival of business. It is important to note that the survival of business is not compulsory; it is an outcome of enterprise approach towards satisfaction of basic / expected requirements of customers. Expected / Basic requirements of customers are invisible, usually; they become visible when they are unfulfilled. For example, the very basis of a dress is to save the customer from environmental itchings and to give someone a reasonable look, a dress unable to satisfy the basic needs shall be failed.
Desired: - The customer desires something better but he is not expecting from you or others. A desired level of customer care is achieved by knowing unspoken customer preferences. The best and effective way to get awareness about hidden customer preferences is to talk with customers / expected customers about their unspoken wants / desires. The knowledge about desired preferences provides an opportunity to achieve higher level of customer satisfaction. It leads towards marked difference between you and your competitors because customer is getting it from you and not getting it from someone else, moreover, it provides a long-run comparative advantage due to informational edge. The process of knowing unspoken preferences is easy to state, however, painful to implement due to informational inefficiencies or personal prejudices. It is noteworthy that the comparative advantage may vanish any time due to some imitation or information leakage, the solution is continuous updating of changing preferences and better approach towards satisfaction of preferences.
Unanticipated: -These are discontinuous features of a business to create pleasant surprise among customers. Good customer care means happier customers and increased referrals. A pleasant surprise to customers is effective strategy for sale maximization. It is noteworthy that a good experience is propagated normally to 5 persons and bad experience is propagated generally to 20 persons. A pleasant surprise to customers from time to time can be opted as permanent strategy to achieve or maintain customer loyalty
Product Delivery Model
The product / service delivery system has far reaching affects on customer satisfaction and company's market share. It must be based on customer friendly approach. A product/service delivery model has, generally, five vital components.
Environmental: - It is the physical set-up of the delivery system. It affects the aesthetics and psychological needs of customers. The friendly environment accommodates the social norms of customers, as well.
Interpersonal: - It is the interactive set-up of the delivery system. A relationship is a close partnership that evolves, steadily, through mutual cooperation, common goals, and reciprocal respect. A cordial interpersonal environment is necessary for satisfactory relationship with customers.
Procedural: - It includes waiting, guidance, documentation, etc. It must be easy to understand and simple to do. A proper setup for guidance on multiple procedures develops long-lasting relations with customers.
Financial: - It is the liquidity transfer set-up of the delivery system. The standard/legal norms of financial transaction are necessary to avoid some crises/mistrust. A liquidity transfers phenomenon is highly sensitive area of business realm, the whole institutional effort may collapse at final moments due to some non-cooperative or irrational or illegal measures of fund transfers.
Complaint Window: - The window facility is needed to improve the level of service of delivery process. The complaint window makes room for next and better experience for both, businesses and customers.
Entrepreneurship & Customer Care
An entrepreneur initiates, develops, and maintains a business. An effective entrepreneur reads the market situations, constantly, and responds it accordingly. A market change has multiple categorizations. The prominent changes are:
· Real Vs Expected Changes,
· Short-lived Vs Permanent Changes,
· Normal Vs High Promising Changes.
A wise entrepreneur closely watches the situation and reacts with effective business techniques to reap the maximum benefits of changing market environ. A response to some real change need some concrete steps towards customer care process, e.g., demographic shift is a real change, while an expected change demands a robust analysis of expectations for some future outcomes. A well-organized preparation to meet some real or expected changes is necessary aspect of a visionary entrepreneur. A short-lived change can be managed through some short-term measures or some operational changes in business process, while a permanent change demands some long-term measures or some structural changes in business process. The accurate understanding of temporal phenomena of change is essential aspect of dynamic entrepreneur. Normal changes brings normal profit to a business, a normal response is enough to mange it, on the other hand, high promising changes bring windfall profit for business, consequently, an innovative response is required to reap wind-fall profit. An innovative response has some risky aspects, too, but, at the same time, it is inevitable for higher and better returns. A stable and successful response to normal or high-promising changes is essential aspect of an innovative entrepreneur. It is noteworthy that customers forget very soon an entrepreneur who is neglectful towards customers' changing preferences or market situations. A visionary, dynamic, and innovative approach towards change is inevitable aspect of effective entrepreneurship.
Final Remarks
Begin your Customer Care efforts by focusing first on what matters most to customers, consequently you would be able to see measurable results within few weeks/days. The key towards successful implementation of Customer Care process is to understand consumer preferences accurately, to estimate consumer preferences precisely, and finally to respond on customer preferences appropriately.
We are living in information age; information about something is easily available to everyone due to multiple information channels, consequently, customers have fairly good information about products and services due to print and electronic media. In addition, computer / internet has attained inevitable factor during some day to day customer experiences, for example, ATM service is necessary for normal banking. A business can implement customized software for better and quick dealing experience. Application of Customer Relationship Management (CRM) software involves many applications that merge back-office operations and databases with front-line customer interaction. It enables the business to provide correct and timely information to customers, answer their questions, and take care of their needs as early as possible.
Business success and sustainability is outcome of stable customer account. A customer is real asset of an organization. It is base and foundation of every accounting asset, both tangible and intangible. The decisive difference between customer account and other business accounts is presence of heart & mind with former, a customer have some emotional leanings and rational expectations. An accounting approach towards stable customer account may lead towards some wrong business practices. A humanistic approach towards customers is essential for successful implementation of Customer Relationship Management (CRM) Modal.

Ways to Lose Your Customers

2011-12-29T17:56:00.000-08:00

I try to make daily choices to be positive, and encourage (and train) others to do the same. This includes how we perceive situations, the language we use, the types of feelings we try to empower (positive versus defeating), and our mental talk. There are times however, when I think great learning can come from taking something that is negative and "turning it around" to apply the positive. As you review these, ask yourself if there are any components you might be inadvertently demonstrating with your customers, or if you can relate to these through your experiences as a customer.
#1: KEEP IGNORING ME, AND YOU WON'T NOTICE WHEN I LEAVE
Have you ever been a customer, needed help, and so approached the only employees in your line of sight (two of them engaged in their own interaction)? If you are like me, you have approached them cautiously and with respect, standing a few feet away to not interrupt them, but to patiently wait for them to stop what they are talking about to serve you. The problem is when they don't stop, and they don't acknowledge you. Here is a real-life story from my vault of experiences. I was in a local grocery store needing help to find a product one day. It wasn't busy in the store, and the only employees I could find were doing exactly as I just described - talking to each other. No problem with this, I moved in to wait and be acknowledged. What happened surprised me. One of the employees darted away so he didn't have to help me at all. The other employee couldn't run fast enough and so was stuck with me. I asked where this particular product was located in their store, and the response I received was "over there...". Bad enough, the employee who wasn't busy doing much didn't take me to the product, and didn't even point, but ended up disappearing as well. If you don't want your customers to come back, keep ignoring them. If you do, please LOOK and ACT like you want to help.
#2: SHUT UP AND LISTEN
"They don't care how much you know, until they know how much you care." Effective sales are about understanding what a customer needs (tangible need and intangible need - motives), and then meeting those needs. It is not about pushing your product. Nothing frustrates me more than having someone contact me to "sell' their product and never giving me a chance to respond to their questions. I have been interested, and have even gone as far as trying to be really clear about what I need to help them make the sale, but they don't stop talking about themselves long enough to listen. Please apply Pareto's Law of Economics to this one - listen 80%, talk 20%.
#3: DO YOU HAVE A 'NEVER RESPOND TO EMAIL' POLICY?
I am a proponent of self-service initiatives and technology, and having an email option through your business website can be a great CHOICE for me to contact you. The important thing to remember is, if I am making this choice you have offered to me, please respond. I have emailed companies with questions, to seek information, and most recently to cancel a policy. In this last example, it took two emails and a couple of weeks before I ever heard anything back (at least I finally did). In my other experiences I wondered if my email went into a black void in space. A response was never received. If you want your customers to email you, please don't forget that this medium needs to have a service standard attached to it (just like your phone service does). At a minimum you should be responding to emails within one business day. Customers will not choose to email you, they will phone you instead, which is a more expensive contact method initially.
#4: I REALLY DON'T CARE WHAT YOU DID ON THE WEEKEND
I seem to notice this more and more often these days, and this is the experience of a very inappropriate conversation going on between employees at the same time they are "serving" me. I have been privy to who is dating who, what big crisis happened, inappropriate verbiage, and immature behaviours. The sad part is they don't seem to think anything is wrong with doing this. In the process, I am left feeling uncomfortable, and ignored. It is important that peers in the workplace get along, but there is a time and a place for this, and it is not in front of the customer.
#5: DID YOU REALLY JUST HANG UP ON ME?
This is the one where the employee hangs up on the customer (and not by accident because he mistakenly hit the wrong button on the phone). I had an experience where my utilities (natural gas) account was showing as in arrears. We had recently moved, and in the process of changing over my account, no one at the gas company had told me they would be changing my account number altogether. So, I kept making payments towards the account I had always been using. Some months after we moved, the gas company collections department started to call. Through words and tone, I was being told that I was a delinquent customer. I tried to explain my position - I had been paying. Instead of listening to me, the employee continue to talk (and to talk over me). It is frustrating to not be listened to (especially when you are being accused), and so I began to "talk over" her. My voice was not angry, nor was I yelling, but I was definitely getting louder and probably sounding more frustrated. Her response was to begin to dance. She did this by getting louder, continuing to talk over me and continuing to interrupt. How did this tango end? She told me if I didn't stop talking to her that way she would hang up. I was shocked, took the moment of silence to again try to explain my position, only to be rewarded with a click and a dial tone. I was so surprised I think my jaw actually dropped. My response was to immediately phone back, ask to speak to a supervisor to complain about my experience.
#6: DID YOU JUST EXPERIENCE SOMETHING HORRIBLE IN YOUR PERSONAL LIFE, OR ARE YOU JUST THAT UNHAPPY TO SERVE ME?
Unfortunately, there are many personal stories I could share to illustrate this point. Here is the most recent example. I was leaving my hotel to go to a client's office in Ottawa recently. The office was not more than two blocks away, but armed with a suitcase, laptop, etc. my choice was to quickly catch a cab. The hotel front reception had provided excellent service as I checked out, and personally took my bag outside and flagged a cab. I jumped into the cab and the cab driver refused to get out and put my bag into the trunk until the hotel individual directed him to. Begrudgingly (it was all over his facial expression and with the added element of under his breath grunts) he got out and did his job. I let him know the address I was going to and he again grunted and spit out the words "that is only a block away". Yes it certainly was but hey I am the customer and it is my choice to get the ride. The entire 5 minutes it took him to get me to my location, he glared at me, talked under his breath, grunted and complained. He drove recklessly, and when we arrived reported that he didn't have change, just "pay me my $5.00 and get out!" While this example illustrates many non-customer focused behaviours, I want to make the point that our demeanour in every second of contact is critical to the overall experience. Many times I find myself coming face-to-face with a service representative who looks like the world has come to an end. Hey, if you don't want to deal with people please don't enter the service industry. First impressions are lasting and help us form our impression of the entire business, not just the individual in front of us.
#7: I'M NOT YOUR PEER, I AM YOUR CUSTOMER
I was recently on a flight, waiting in line for the washroom. The flight attendant was shuffling empty pop cans around, and was very friendly - she immediately smiled and asked how I was doing. That's great, and you might be asking what she did wrong? It was how she interacted with me after I politely (and with genuine interest) responded by asking her how she was doing. She proceeded to tell me how she just wasn't into work yet at this point. She was hoping to get "into it" soon, but this flight was an extra booking she had taken, and was part of her schedule to be flying for the next 36 hours. Oh well, the money is great and that is what it is all about. WRONG. In my perspective as a customer, it is all about providing service to the many individuals who have paid to take your flight today. In my opinion, her attempt at interacting with me on a personal level went just a bit far. It is great that you are well paid in your job, but please engage me in conversation that is relevant to me, or maybe to what my experience has been like so far. Interactions are key to customer experiences, we have to communicate with each other and it doesn't always have to be just business. Please use judgement in what you are sharing with your customers.
#8: BEFORE YOU SAY THAT TO ME, TRY PUTTING "INSERT NAME OF SOMEONE YOU LOVE" AT THE END OF IT
While words are not the most important component of a communication message (body language and tone elements say more to the customer than the words you actually choose), they are still one of the three components, and need to be thought out before expressed. The biggest source of dissatisfaction may not come from having to say "no", or the fact that you do have a policy and for the customer's best interest you need to stick to policy. The biggest source is when you choose negative words, period (no options, no explanation). Here are some examples - try to say them out loud and see how you feel (it is like someone is putting their hand out and turning away, closing the door). For fun, try to put the name of someone you really care about at the end and see what happens.
That's not my job.
It's our policy.
I can't do that.
I won't do that.
Sorry.
You can't do that.
We don't accept returns without a receipt.
You have to...
No.
It doesn't work that way.
#9: ARE YOU DISCIPLINING YOUR EMPLOYEE IN FRONT OF ME?
How uncomfortable and inappropriate is this one. "Coaching" (and I use this term very loosely") in front of your customers. This is one that I have been surprised to experience, and to hear that others are experiencing as well. It is also more than a friendly reminder, or a gentle nudge. What has happened is downright yelling, voices raised arguing. When an employee has done something he or she should not have, the time and place to COACH, not talk down to, punish or argue, is away from customers after the interaction.
#10: TALK TO ME IN A LANGUAGE I UNDERSTAND.
Sometimes I wonder if the employee is speaking a different language (when we are both speaking English). This one reminds us that if we can't interact where both parties understand the other, we won't get far in our interaction. How do we speak a different language? Some simple ways are: speaking too fast so all of your words seem to string together, speaking too softly so I can't hear you, using technical terms and company jargon that I don't understand. Be careful with accents. If you have a dialect or accent, you may need to slow down a bit so the customer can understand what you are saying. I recently had an experience as a customer where we were having a window in our door replaced. The employee was very nice, he was very professional, but when he was finished and was trying to explain that in the process of inserting the new window the door had been cracked he lost me. Based on an accent and very fast paced speech, he rambled on trying to explain to me what had happened and what would be done about it (both very good service behaviours). The challenge was, I didn't get any of it. I had to resort to asking questions about what I thought he was saying, pointing and using gestures and affirming my understanding through his head nods in response. Communication is critical to the experience, without it there isn't an interaction. Please be cautious about what you are saying and how you are saying it so you aren't leaving your customers confused and frustrated.
#11: DON'T ASK ME TWICE
Technology has offered businesses opportunities to enable greater service options to customers. We can email, use voice automation to get to the department we are looking for, try products on your website, talk to your online "robots" for help, click on "chat with a representative now" and get a live human right off of the website, download one of your pod casts, the list goes on and on. I am a strong proponent of technology as an enabler (not a driver) of customer service, when it is designed and implemented with the customer in mind. One area that is of great frustration (it may not be enough to lose a customer) is IVR technology (you know, press one for this, 2 for that), which asks you to provide some piece of personal information before you are connected to a live human. It is not having to provide that personal piece of information that is frustrating, it is then having to repeat it again for the person on the phone. Why are we asking customers to put in key data that is supposed to make their call more expedient when we are either not using, or actually don't have access to what they entered? What was put into place under the presumption that it will help the customer, is actually creating a barrier and frustration. Ask yourself - do you have any technologies that have been set up this way? If yes, can you change the business practice or redesign the technology to start using the information? If you can't, why are you asking for the information?
#12: DON'T COMPLAIN ABOUT ME TO THE NEXT PERSON IN LINE
This one comes from a personal experience. Last summer we were on a family road trip and stopped at a fast food restaurant for a quick bite en route. We were with another family, and so my husband was the first to order and his friend was right behind him. My husband was trying to order combos, and the employee serving him was having a challenge understanding what it was he wanted. A few words passed between them (nothing harsh) and in the end they collectively figured it out. The problem happened after this. My husband moved to the side to wait for his order, and his friend stepped up to the counter. The employee proceeded to verbally complain about my husband and how unclear he had been, etc. etc. We were shocked at the lack of common sense portrayed by the employee. Whether or not the employee was debriefing to our friend or to a total stranger, it is completely inappropriate and unprofessional to ever complain about a customer to another customer. If someone has frustrated you, be very cautious about when and where you discuss it - you don't want to risk being overheard, as customers will form an impression of your business based on your behaviour.
#13: WERE YOU TRYING TO RECOVER FROM THAT PROBLEM OR JUST MAKE IT WORSE?
The first rule of thumb: every company will not be perfect, mistakes will be made and problems will occur. The key to any problem solving strategy is appropriate recovery (right the wrong) and then ideally offer a viable restitution strategy (do something extra). Here is a personal example of a recovery strategy gone wrong. It is again a restaurant story and occurred last year in Osoyoos, BC at a family restaurant. My dinner came out burned (they had tried to cover it up by putting the burned toast facing the centre of my sandwich versus being the outside layer of bread). The cover up didn't work, and I politely ate what I could and then identified to the waitress that it really was not edible. She did a great job of saying sorry and an even better job of offering me two options to recover from the problem. One was a gift certificate to be used towards a future visit or a percentage off of the current bill. As I don't live in Osoyoos and may never have been back, I chose the percentage off. When the bill arrived, she had taken $1 off. This represented about 1% of the sandwich cost, and I felt that I had been slapped in the face. In business, we should spend time identifying what we can and should do in the moment when a problem arises. The faster we can rectify the problem and leave the customer satisfied, the greater the chances of having a loyal customer. The caution and learning from my tale - do not inadvertently "slap your customer when he is down".
#14: YOU SHOULD HAVE SPENT MORE TIME CARING ABOUT ME WHEN YOU HAD ME AS A CUSTOMER
I know that for many businesses where I am a customer, I am probably one out of thousands. This means that I am probably just a number, and maybe my business doesn't matter so much in the overall scheme of things. Here is something to consider. How much does your business spend on attracting new customers versus keeping your existing ones? You may need to ask this question via a couple of different business units, as retention and customer care roles are often different than sales and attraction. I recently changed my phone provider and am now getting more calls to win me back than I ever did when I was already theirs. It is easier to keep a customer than it is to find a new one, but I often find that this isn't reflective of how businesses are set up. What do you do to attract new people, and what MORE do you do to keep the ones you have, happy?
#15: PLEASE DON'T TREAT ME LIKE I CAN'T AFFORD WHAT YOU SELL
Do you ever judge a customer in the first few seconds of contact based on how they look or sound? If you do (and I am sure we are all guilty of it at one point or another), this one is for you. We were in the market for a piece of furniture, and so on a Saturday afternoon off we went. One particular store I went into was slightly higher end. I entered the store and was able to walk through it in its' entirety without any of the employees (there was a team of them and they were not all busy with other customers) even acknowledging my presence. In fact, they looked up briefly from the desk and then proceeded to continue on with whatever they were doing. No hello, no ask if I needed help or what I might have been looking for. This is rude service, however here comes what I believe was the reason for the poor service. I was in sweat pants, with my hair in a ball cap, no makeup (you are getting the picture). I didn't look like I could afford what they were selling, and I believe this was the reason why I was snubbed. After all, why would we waste our time on someone who can't buy anything anyways? The saying "don't judge a book by its cover" holds true in customer service.
#16: IF I AM UPSET ABOUT SOMETHING, AND WILLING TO TALK TO YOU ABOUT IT, PLEASE DON'T DIRECT ME TO A COMMENT CARD
We want our customers to share their concerns with us, as this provides us with feedback about what we aren't doing to meet/exceed their expectations. We may encourage their feedback through surveys, opportunities to post feedback via our websites, or using comment card/suggestion boxes in our physical locations. There is nothing wrong with any of these mediums. The frustration comes when you have an upset customer who is standing right in front of you trying to share their concerns, and you direct them to write it down. While it may be important to have it written down as a component to your follow up process, it is not the customers' responsibility to do this when they are already talking to you. It is your responsibility to scribe what they say, on their behalf, and then forward it to the appropriate person (s).
#17: AFTER I HAVE POLITELY SAID "NO THANK YOU" THREE TIMES, DROP DOWN TO THE LINE IN YOUR SCRIPT WHERE YOU THANK THE CUSTOMER AND CLOSE THE CONVERSATION
I will again use a personal story to illustrate this point, and will also identify up front that my point is from the perspective of customer service, not necessarily the best strategies to close a sale when it comes to telemarketing. I have no problem being contacted by a telemarketer wanting to identify a new product or service I may be interested in, or is looking for a financial donation, etc. The issue comes in the script. When you have provided your pitch to the customer and the customer says no, please recognize it as "not interested". Okay, you might try one more slant, but in my personal experiences I get extremely frustrated when I politely decline and you continue to try every angle. I became so frustrated in one circumstance that after saying no at least three times, I finally politely responded with, "please drop down to the point in your script where the customer has said no and really means it". The person on the other end was evidently surprised by my question, but the point hit home and the call was closed. Please remember that if you are calling a customer to sell something, you still need to identify and be aware of my needs. You don't want to end a contact with my vowing to never do business with you because you aggressively wouldn't accept my no thank you.
#18: ARE YOUR CUSTOMERS REALLY LISTENING TO YOUR VOICE RECORDED SALES PITCH?
Technology now enables companies to push-out voice recorded sales pitches to your phone. You have probably experienced this yourself at least once. You answer the phone and are greeted with a voice recording. The technology is supposed to provide a viable medium to communicate with potential customers, in a more cost effective manner than humans making the calls. Ask yourself (and ask your circle of influence): how many times do you listen through the recording versus simply hanging up? Is this helping or hindering your business? How might your customers be feeling when they perceive another point of human contact removed? How can we create loyalty with voice recordings?
#19: WASHROOMS ARE FOR CUSTOMER USE ONLY
What kinds of signs do you have in your business? Take a close look and ask yourself, what kind of message are they sending to your customers (actual or potential)? Nothing frustrates me more than seeing "washrooms are for customer use only" signage and it is for this reason. If I (or someone else) are trying to use your washroom, it is because we are in need of the facilities. As a parent, I have often found myself in need of finding the nearest facility quickly. I have also been told I cannot use the washrooms unless I purchase something. This has left me leaving the store and going elsewhere, and vowing not to return. So take a close look at your signage. Are your words and the message you are portraying one of welcome or a harsh barrier? What is the real intent behind your message? In the case of the "washrooms are for customer use only", you never know - I might only be using your washroom today, but may end up being one of your most valuable customers in the future. How you transact with your customers today will influence any future interactions.
#20: TAKE MY CONCERNS SERIOUSLY
Blogs, YouTube, My Space, PowerPoint presentations, full websites dedicated to the cause. Customers who feel they have not been listened to by companies, or feel they have been wronged are now armed with greater mediums to voice their complaints. Now the opportunity to tell others is not restricted to word of mouth and whom you know. Customers can very quickly launch a video, write a blog and make it available to thousands, or hundreds of thousands of people. Your company may be getting free negative advertising that you don't even know about, because of a situation that occurred which left the customer frustrated and angry. We have included this in our 50 Ways to Lose Customers, as we think it is important to remember the power of referrals (for the good or the bad), and the potential loss of business you might experience if you are not listening to your customers.
#21: I AM FEELING NEGLECTED & IGNORED
In any job related to customer service, we are responsible for more than just serving the actual customer. We might have paperwork, shelves to stock, phones to answer, cleaning, etc. These tasks are important and they relate to the customer having a great experience, and the business continuing to operate effectively. What drives customers crazy is when these tasks are chosen over them. If you are on the phone with a customer and someone is standing in front of you at the counter waiting for service, don't drop the person on the phone, but don't ignore the person at the counter either. Manage the customer's perception of the situation. Make eye contact, smile, and perhaps even a non-verbal gesture indicating you will be right with them. If you are busy with paperwork or stocking shelves and customers are waiting for service, this is a no brainer. Stop what you are doing and serve the customer.
#22: RUDENESS ISN'T A RECOVERY STRATEGY
Years ago we were in Ainsworth BC at a nice restaurant with friends and our young children. All of the dinners arrived except mine. At this point there was no problem, the waitress indicated she had forgotten and went back to the kitchen. It is important to note that I was with young children, and if you have dined with the young you know your window of opportunity to eat and leave before boredom sets in is small. When everyone was finished dinner, mine arrived. I ate quickly but anticipated that in a nicer restaurant there may have been training provided on how to recover when you make a mistake. The bill arrived and nothing had been taken off, there was no indication of a free dessert either. Basically there was no attempt to recover from their mistake. So I politely proceeded to identify that I had expected to see something come off of the bill. This is where it really surprised me. I not only got a "no" but I also was told in no uncertain way by the waitress that if she took money off the bill, it was going to cut right into her own proceeds. Are you kidding me? Well she got what she was trying to avoid. Zero tip, and an angry customer who is happy to share her experience with others.
#23: ARE YOU POINTING THE CUSTOMER RIGHT OUT THE DOOR?
I believe that when customers are looking for something they will try to find it themselves before asking for help. This relates to products in your retail store or directions. When a customer approaches you needing help to find something, how do you respond? Many times, the reaction we receive as customers is obvious irritation or the infamous finger point coupled with some verbal cues. If a customer is trying to find something, chances are they might be interested in buying it. Unless you absolutely cannot leave where you are standing, walk the customer yourself. Chances are, if a customer is left on their own and gets frustrated, you will have succeeded in finger pointing them right out the door.
#24: WERE YOU HIRED FOR THAT BAD ATTITUDE?
If you hate providing customer service, please get out of the service industry. It is not okay for customers to have to deal with negative attitudes, employees who treat us like we are an interruption to their personal conversations, who are uninterested and unmotivated to want to help us - even if they are warm bodies filling a job. How would you feel if you went to Disneyland and Cinderella snarled at you, or Goofy ran away when he saw you coming? It might seem silly, but the Disney experience is just that because of how they have defined, trained and expected their end-to-end experience to be executed by all employees.

Establishing Successful Customer Relationships Through Effective Communication

2011-12-29T17:25:00.002-08:00

"One cannot always oblige; one can, however, always speak obligingly..." says Sri Sathya Sai Baba, Indian spiritual master, which is an exact explanation for the complex role of corporate communication in modern corporations today.
The customer, as the old saying goes, is the king! A king he truly is he believes, that is, till the not-so-charitable mandarins of marketing let him know and make him aware, rather painfully for him, that he is one among the many millions that feel that way, without actually being that way. However, the same mandarins grudgingly acknowledge that a happy customer is a brand's success, while a delighted customer is a brand's ambassador. The customer relationship management paradigm - popularly abbreviated as CRM - is built precisely on these pillars. And the customer enjoys a precarious position in this paradigm.
In the concentrated CRM efforts a company often forgets the basic thing that is the cornerstone of the concept... relationship! Traditional marketing theories have always focused on attracting new customers, rather than retaining existing customers. Over the past decade, thanks to intensified competition and greater variety of products, this has gradually altered. The current flavor of marketing is 'retain' more than 'gain'. Because retention leads to growth and growth leads to fulfillment.
In marketing, today, the consumer is treated not as a king but like a mischievous sprite. He is accused - well, almost - of making a brand dance to his wishes and whims. While purists tend to argue that brands need customers and vice versa, modernists counter it by saying that customers need a brand, any brand, so long as the brand is his willing genie. This disproportionate balance shapes brand communication strategies. Positioning per se is no longer a marketer's tool but rather as an awkward proposition to grab the customer's fancy. Positioning is not brand or product or benefit or feature-centric anymore; it is customer-centric.
What is then important to establish a relationship between a brand and its customer? In order to build a personal relationship, the brand's personality has to come through (Michael C Gray, 2006). It will no longer be brand and customer, but simply 'you' and 'I'... a collaboration is well-developed leads to 'we', which could be a fulfilling state for a brand and a customer.
Social researchers have always advised marketers that people prefer to do business with people, not institutions or brands. This implies that corporate communication has to be the link that helps to build and maintain a healthy relationship between both stakeholders. Technically there can be several types of regular communication: newsletters, fax messages, voice broadcasts, blogs, sales letters, emails and more.
Communication with customers reflects the following aspects of a relationship.
o Strong culture
o Favorable identity
o Coherent philosophy
o Genuine sense of camaraderie
It may not be instant gratification or affection but effective corporate communication establishes an appropriate and professional relationship with the customer, including quick, responsible channels of two-way communication. Corporate Communication is all about managing perceptions and ensuring that with effective and timely dissemination of information a positive corporate image is created that ensures a smooth and affirmative relationship with all customers, at all times.
Be it a corporate body, company, research institution, non-governmental organisation, PSU, all of them need to have a respectable image and reputation in the eyes of the customer. In today's day and age of increasing competition, easy access to information and media explosion - reputation management has gained even greater importance. So, corporate communications as a role has become significant and professional in nature while dealing with customers.
Gone are the days when corporate communications merely meant 'wining and dining the client'; it has now emerged as a science and art of perception management. The concept of managing relationships with customers is as old as trade itself, but the focus has always been to sell products and services (Kotler, Philip, Introduction to Marketing Principles). Competition, driven by globalization and the Internet, has changed the face of business. Customers now have a variety of choices and, most importantly, they are becoming far more knowledgeable and demanding. The power has truly shifted to the customer. With this scenario, most companies realize that they need to treat their customers with more care.
Companies are now desperately searching for different ways to manage their relationships effectively, not only to acquire new customers, but also to retain the existing ones. According to a Harvard Business Review Study by Reicheld & Sasser, some companies can boost their profits by almost 100% by retaining just 5% or more of their existing customers.
Customers express their satisfaction in many ways. When they are satisfied, they mostly say nothing but return again, and again, to buy or use more. Measuring satisfaction is only half the story. It is also necessary to determine customers' expectations or the importance they attach to different overtures of a brand, otherwise resources could be spent raising satisfaction levels of things that do not matter. The measurement of expectations or importance is more difficult than the measurement of satisfaction. Many people do not know or cannot admit, even to themselves, what is important.
Consumers do not spend their time rationalizing why they do things, their views change and they may not be able to easily communicate or admit to the complex issues in the buying argument. A customer satisfaction index is a snapshot at a point in time. People's views change continuously and the performance of companies in delivering customer satisfaction is also changing. Measuring satisfaction must be a continuous process. (Paul & Nick Hague, White paper on Customer Satisfaction Surveys, B2B International Ltd.)
Even when experts discuss CRM, the discussion is almost always from the point of view of marketing, sales and business development. Seldom is CRM looked upon as a 'goal' that every organization should actively pursue. Often it is looked upon as a tool that every organisation could use. The differences are plenty. And CRM is not an IT function. CRM is more often a function of communication, by the company directly, through an intermediary such as a PR agency or simply through the media.
Successful CRM practices is not about statistics, data warehousing or loyalty programs, rather it is about competing in the relationship dimension-not as an alternative to having a competitive product or reasonable price-but acting as a differentiator in terms of 'feelings for the customer', however abstractly - and sometimes absurdly - romantic that may sound. If brands can get an edge based on how customers feel about the brand, it's a much more sustainable relationship in the long run. This feeling for a brand, as brand theorists prefer to call it is directly proportional to the communication efforts, written words and spoken sentences, that emanate from a company.
Link it to the corporate communication strategy and you will have a direct connect between the company and its customer. The critical dimension of any CRM practice is the relationship that a brand shares with its customers. Using the word customer itself may sound a trifle improper here because 'customer' implies that the person is 'outside' a relationship. And any relationship is expressed and nurtured by communication.
Almost always marketers try to understand a customer from the marketing perspective, as people who have to be 'given' something to retain their loyalty. This naturally places them on a moral (and commercial) pedestal that enables them to look down upon hapless customers as beneficiaries of their largess. In communication parlance this signifies up and down power positions. And in a relationship between equals the power position is not hierarchical. Sometimes the anachronistic social mindset refuses to place the customer on even keel with a brand - and vice versa - painting him as a king, or as an unrealistically greedy pauper.
CRM is a simple process, because establishing a relationship is simple. Nowhere is understanding more profound than when it comes to human emotions... but surprisingly the very same human emotions have been overlooked by companies while interacting with their customers.
What is a relationship? When is there a relationship between two entities? What is the role of corporate communications in establishing, maintaining and fulfilling such relationships? Relationship could simply mean to be a particular type of connection existing between people related to with each other biologically or emotionally and having social or economic dealings with each other. Unfortunately all pretenses of dealing with relationships that often ask for simplicity, empathy, credibility and sincerity cease the moment commercial returns on investments are discussed. Which is what communication is all about; communicating to customers, and not with them.
Researchers have often argued that to understand brand-customer relationships, it is necessary to consider what the brand thinks of its customers, more than what the customers think of a brand. Marketers struggle hard to enhance the satisfaction of customers only to find that they choose their competitors. Why does this happen? Research has further shown that investments in customer communication, which logically seems to be the most crucial aspect in a relationship, has been the most neglected area in most companies.
The argument for this lies in the reality that 65% of all customer service activities are outsourced to business processing units (BPUs). That means the brand does not directly handle customer interactions and queries - unless they are of a certain level, of course. This is akin to asking your friend to talk to your representative about everything that you want to say, including... affairs of the heart, and speak directly only if it is something serious! This attitude, in the first instance, is marketing-driven and one-sided. There are also many brand loyalty programs, which are being attempted by marketers in isolation without the back up support of several other relevant and related strategies. There is a distinctive need for marketers to understand the importance of customer communication, and not merely look at it from the point of view of PR, Advertising or other known corporate forms of communication.
Often corporate communication strategies are designed... to work as a bridge between stakeholders, to justify policies and decisions, to deliver business strategies, to inform and persuade, and of course to emphasize that the company is committed to putting customer interests first, almost as an afterthought!
Thus corporate communications is almost always understood as a process used to build, foster, nurture and extend business relationships with customers. This is unfortunately a bureaucratic understanding, as GE's former CEO Jack Welch says, "Bureaucracies love to focus inward. It's not that they dislike customers; they just don't find them as interesting as themselves." And the communication reflects it.
In 'Customers Are People: The Human Touch', author Jon McKean states that in competitive markets, where customers have a choice between similar products and pricing, "70% percent of customer decision-making is based on how customers are treated." "Yet," McKean adds, "Over 80 per cent of customer initiatives are focused on 'selling to customers better' through superior products, prices and promotions, than in investing more resources in treating customers better..." How best can a person be treated? By simply being talked to in a better manner.
The question staring squarely on the faces of companies is: "How to make a customer loyal?" When companies talk of relationships where customers have real choices, they are honestly trying to be the best suitor to the customer, 'as the customer sees it', and not 'as they want the customer to see it'. Reichheld and other loyalty experts have studied this issue for years and have concluded that relationships are driven by the behaviour and perception of customers of the value of the relationship that exists between the brand and himself, which is the net result of what economic and psychological value the customer receives from the brand.
According to psychologists customers' emotional states influence about 50 percent of the value they perceive from their purchases. Jim Barnes, author of 'Secrets of Customer Relationship Management: It's All About How You Make Them Feel', sums it up by saying, "Value is created every time a customer is made to feel welcome, important and valued."
After reasonably agreeing to the fact that the important aspects in CRM are relationship and how customers, on account of their distinct behaviour and personality, differently and uniquely perceive a relationship, it is also imperative to stress on the point that corporate communication is the prime driver of any relationship. As the leading Indian telecom brand AirTel shows in its advertisements, communication is all about expressing oneself.
A brand identity is shaped by a collective interactive experience of customers, product, policy, and strategy. Which is why developing a brand-customer relationship is important. The choice is simple: either a brand makes a customer experience or it gets created despite the brand. To create a successful relationship, the brand must develop a compelling identity with the customer and have a genuine value proposition. The brand must rely on customer perspective, appreciate the viewpoint and have the ability to communicate appropriately. A common pitfall for many brands is that they do not take the time to think about how they should articulate the brand identity. Needless to say, a successful brand strategy is incomplete without a sound communications strategy. The organization must be aligned in ways that anticipate and fulfill customers' emotional expectations at every touch point to create meaningful relationships and lasting competitive advantage.
Successful customer communication clearly highlights the brand's functional, emotional, and self-expressive benefits, as the customer would like to see. It is delivered in a way that is superior or unique when compared to competitors. Customer experience is shaped by a series of interactions with an organization.
According to Jonathan Hardcastle, barriers to effective communication such as frames of reference, value judgments, selective listening, filtering and distrust (all between sender and receiver) complicate the communication systems and messages. However, these can be overcome by sending clear, complete, and specific messages, which are to put it rather romantically, 'straight from the heart'. Demonstrating love and affection, clarifying intentions, being reliable and dynamic can enhance credibility, exhibiting warmth and friendliness, and building a positive image. Soliciting and providing specific feedback can also enhance communication effectiveness between partners, which is what brands should consider customers as.
One of the most important consumer satisfaction elements is the ability to ask questions and being able to receive appropriately satisfying answers from the brand's representatives. Gaining information, uncovering motives, giving incentives, obtaining participation, checking understanding, initiating the thinking process, inducing agreements, and refocusing attention, are all essential components of an effective consumer communication plan, says Hardcastle. Thus, the active listening skills of a brand help to build rapport with customers that is both intimate and empathetic.
The other most important aspect is the subtle non-verbal communication of a brand and the customers, that is useful both in reading the underlying emotions and attitudes of customers, while reinforcing a brand's verbal messages. Understanding subtle communication can enhance the brand-customer relationship.
Coupled with this are improving standards of technology and devices that add an edge to the communication process. Unfortunately over-dependence on technology and automation has had an adverse impact on customer relationship. While on one hand brands talk of a relationship - a concept normally associated with living things largely and human beings in particular - on the other hand the overuse of technology has led to a dissociation that has taken the customer and brand away from each other. This dichotomous situation has to be recognised by the brand as well as the customer, for communication is all about power positions, and it is important to understand that in a relationship the power positions are on an even keel.
Concluding, due to the growing complexity and turbulence of the business environment and the related growth in research knowledge about customer behavior patterns, managers of the 21st century have to take four themes as paramount; the necessity of managing the challenges of change; functioning within a global environment; being sensitive to the diversity among people; and behaving with ethical integrity.
The final ingredient that binds a customer to your brand in a lasting relationship is dialogue. Your company's brand isn't a monolithic, hermetic face that the organization presents to the world. Rather, it's an ongoing exchange where you listen carefully to your customers, understand what they say, and respond by modifying your value proposition and extending your businesses appropriately to fulfil customers' desires. You exist because of the customer. This selflessness is the cornerstone to successful CRM.
Therefore any corporate communication effort should focus broadly on three aspects: understanding relationships, understanding the distinct behaviour of consumers to relationship overtures and understanding (and establishing) the role of communication in effective and enduring customer relationships.

5 Customer Experience Management Myths

2011-12-29T17:24:00.001-08:00

As customer experience management (CEM) continues to gain importance in the minds of today's CEOs, more and more companies are taking on customer experience management projects to improve customer satisfaction, develop better customer insights, nurture customer loyalty and advocacy, and improve customer lifetime value. The rapid rise to the top echelons of strategic priority has brought an unfortunate side affect; numerous customer experience management myths have begun to form due to a flood of conflicting definitions, perspectives and over-hyped promises.
For any company seeking to establish or improve its CEM capabilities, it's important to dispel these myths once and for all.
Myth #1: Net Promoter Score (NPS) is the Only Metric You Need
The customer experience can be broad, long running, it can span channels, and is influenced by any combination of internal and external factors. Attempting to measure it effectively with a single metric such as customer satisfaction or net promoter score is overly simplistic and risky. Effectively managing the customer experience requires effective measurement and management of a portfolio of metrics that will provide a true measure of what is - or is not - working.
The Net Promoter Score (NPS) is a measure of customer advocacy that was the centerpiece of Fred Reichheld's 2006 book titled 'The Ultimate Question.' The net promoter score is calculated by taking the percent of customers who are promoters less the percent of customer who are detractors. Obviously, the higher the resulting number - the better.
While the net promoter score is an effective measure of overall customer advocacy, it will not address all of your potential CEM questions. Here's why:
1. Customer advocacy - or net promoter score - measures only one dimension of the customer experience. Focusing only on a single metric such as net promoter score means ignoring equally important dimensions such as customer satisfaction and customer loyalty. An effective and comprehensive CEM program must take all of these dimensions into consideration.
2. The net promoter score is only an aggregated measure of the total customer experience. However, the number of factors and touch points that contribute to the overall experience can be numerous. Focusing only on an aggregate metric without understanding or managing the contributing factors can yield unpredictable results. Companies seeking to improve their overall customer experience must focus on managing and measuring the underlying events that contribute to an exceptional experience.
3. The net promoter score does not necessarily equate to customer action. For example, for every customer that says they would "definitely recommend" the company in a customer survey may not make any actual recommendations. Companies seeking to realize tangible results will need to correlate their NPS ratings with other key business metrics such as new customer additions, increase in profitability, or changes in market share.
While NPS is an important CEM metric, companies that are looking to establish or improve their CEM capabilities will need to identify a more robust set of metrics that will measure all dimensions of the customer lifecycle.
Myth #2: Customer Experience is Just a New Term for Customer Service
Customer service just doesn't measure up to the customer experience. Make no mistake, customer service is as important as ever; delivering great customer service is one of the most tangible and visible methods for improving customer satisfaction. Customer service, however, represents only a small fraction of the overall customer experience. Companies that talk themselves into a false sense of accomplishment by focusing only on customer service are missing the bigger picture; customer experience encompasses much more that just customer service.
While customer service is important, focusing solely on customer service misses the mark on the bigger picture. Here's why:
1. Customer service often represents only a subset of potential touch points: a receptionist, a call center representative, or a restaurant waiter or waitress. Each touch point does provide a significant contribution to how each customer is treated. Even the best customer service, however, won't rectify an otherwise flawed customer experience. In contrast, the customer experience is broad and encompasses all touch points that can extend from the customer's first impression to their ultimate defection.
2. Customer service often refers to human interaction with the customer. While human interaction is critical, consumers are increasingly utilizing self-service alternatives via the internet, automated telephone response systems, and kiosks. According to a study by Pew Internet Study, 73% of adult Americans use the internet, a touch point dimension that continues to grow steadily. Customer experience initiatives must consider all touch points and channels in order to grasp the end-to-end scope of the customer experience process.
While customer service is an important component of the overall experience, companies that are looking to establish or improve their CEM capabilities should define their customer experience more broadly; the experience should be defined as an end-to-end process that begins with customer attraction, flows through interaction, and ends with cultivation - where the process starts over.
Myth #3: Each Channel Should Have A Unique Customer Experience
Thanks to technology and multiple points of presence, business just keeps getting more complex. Innovations in technology have brought new channels such as the call center, Internet, and now mobile channels in many industries. Many businesses, anxious to stay in the game, jump in with new channel offerings without an integrated view of the customer.
Granted, each channel has unique characteristics and can be used in different ways and for different purposes by the customer. Treating each channel experience as unique and independent, however, is a recipe for disaster. Each channel may indeed be different; the customer experience shouldn't be.
Ever since the day that Ray Kroc began expanding the McDonald's empire, he set the standard for consistency across each and every location. No matter where you are in the world, the McDonald's experience is the same. Ray Kroc's formula for consistency should be a blueprint for any business operating in a multi-channel environment today. Managing each channel as unique and different shouldn't be. Here's why:
1. Customers are increasingly expecting multiple channel options. According to a Sterling Commerce Study, 80% of customers surveyed feel it is important to have a choice of shopping across multiple channels when choosing a retailer. Businesses with only a single channel option, or channels which are discrete and disconnected, will likely miss the boat.
2. Customers expect the experience to be the same across channels. According to a survey conducted by Tealeaf, 85% of adults expect their online service levels to be the same as offline, an increase of 3% from the prior year. Providing inconsistency across channels will only contribute to customer frustration or confusion.
3. Customers will likely switch channels. As the number of channels available to the customer continues to grow, so too does the challenge of providing seamless cross-channel integration. A customer experience that begins in one channel should transfer seamlessly and be continued in another without interruption. Lack of consistency across channels will only detract from the overall experience.
While each business channel has unique characteristics and can be used in different ways and for different purposes by the customer, each channel experience should not be designed or managed independently. Companies that are seeking to establish or improve their total customer experience should focus on cross-channel consistency and seamless channel handoffs regardless of the business scenario. Simply put, maintaining discrete channels with separate customer experiences won't cut it for today's demanding customers.
Myth #4: A Centralized Customer Database Provides a 360-degree View of the Customer
Establishing a 360-degree view of the customer has long been the holy grail of any CRM program. Many companies consolidate their multiple customer databases into a centralized customer database and declare victory. Although establishing a single customer database is foundational to a 360-degree view of the customer, a customer database alone often won't provide your company with a complete view of the customer. Here's why:
1. A centralized customer database often contains only basic or static data including name, address, account number, demographic and profile information. Although this core information is critical, it often won't provide historical information regarding transactions or changes to address, account, or profile information. Without historical information, it's difficult to get a complete picture of the customer.
2. Customer interactions can take place in many forms, at multiple locations, and across multiple channels. Unless the customer database is specifically designed to store interactions, you'll be missing an important element of your customer's behaviors.
3. Customer databases are often designed to support operational activities such as transaction processing, order management, and billing. Operational databases often lack robust customer analytics that are necessary to unlock the secrets of the customer experience.
4. Customer feedback is often collected and managed separately from customer information. As a result, correlating customer sentiment to specific customers or customer segments can be difficult.
Although a centralized customer database is foundational to a 360-degree view of the customer, a database alone won't provide the complete picture. Companies that are seeking to establish or improve their total customer experience should look beyond customer databases to more robust data warehousing capabilities that include a view of historical changes, transactions, interactions, and feedback that can provide a complete 360-degree view of the customer.
Myth #5: CRM Software = Customer Experience Solution
As CRM concepts have matured, the hype-engines have been thrust into overdrive. The resulting marketing can make it difficult to differentiate between CRM and CEM. But make no mistake; Customer Experience Management is much different that Customer Relationship Management. Choosing a CRM software solution to solve your customer experience issues can miss the mark. Here's why:
1. CRM software is typically more functional (rather than process-centric) in nature. Many CRM systems are designed to provide specific point solutions to support CRM functions such as call center support, eCommerce, marketing automation, or loyalty reward management. While each point solution often works well, CRM software solutions alone won't enable or help to manage the end-to-end nature of the customer experience process.
2. CRM software is limited to the reach of its technology and can't support or influence all touch points. While CRM software has come a long way over the past decade, there are still customer experience touch points that can't be directly influenced or managed by CRM software. Touch points such as employee interactions, aspects of direct marketing, and third-party touch points may have a significant impact on the customer experience but may not be supported by CRM software.
3. CRM software is often implemented as a best-of-breed solution and lacks the level of enterprise-wide integration necessary to develop and manage a true 360-degree view of the customer. CRM software solutions are great at managing customer information. The view of the customer can limited, however, if a complete set of customer interactions, behaviors, or preferences aren't properly captured and analyzed. Interactions such as inbound and outbound communications, campaigns, or customer care interactions are often not tracked and managed by CRM solutions. CRM solution alone won't solve this problem; businesses must take the steps to engrain CEM concepts throughout all touch points in their enterprise.
4. CRM solutions provide a limited set of customer experience metrics. While CRM solutions often provide key functional metrics, they are often transaction in nature and won't provide a comprehensive set of metrics necessary to analyze, measure, and manage the end-to-end customer experience.
While CRM software is an important first step for any business seeking to improve their customer relationships, it is not a surrogate for Customer Experience Management. Companies that are seeking to establish or improve their total customer experience should look beyond CRM software solutions and seek customer experience solutions that augment CRM software. CEM specific capabilities should include business process management, sophisticated customer experience analytics, and enterprise-wide visibility to customer interactions that span the total customer experience.

Customer Service - More Than 100 Surefire Ways to Lose Your Customers

2011-12-29T17:24:00.000-08:00

Some people are saying that customer service is the pits these days with surly sales people leading the way. Just in case you haven't conceived of every method to further alienate your clientele, we have come up with a list of ideas that are certain to drive customers away from your business. With tongue firmly planted in cheek, we offer the following tips to you:
Customer Service in General:
1. A closed mouth gathers no foot...speak boldly!
2. When the only customer service tools you have to work with is an axe, you will have hours filled with fun.
3. Try to come to an amicable conclusion...the place where you and the customer both got tired of arguing.
4. An irate customer is its own reward. Make someone's day.
5. Freely and frequently tell customers that you HATE your job.
6. Only provide one-word answers when customers ask questions.
7. If you're having a bad day, the quickest way to feel better is to take out your frustration on a customer.
8. Your day is not complete until you've sent yet another customer running away.
9. Pass the buck to another coworker; you're not in the mood to deal with this customer right now.
10. Creating some inaccuracy can save a world of explanation, ahem.
11. Best customer service award goes to: the one with the subtle blend of psychology and extreme violent behavior.
12. Make sure you try to upsell another product to the customer, no matter how much they argue they don't need it. You never know, they may not realize they could use something they didn't want until it was forced on them, and your commissions will go up!
13. If the shoe fits, beat the customer senseless with it.
14. Nope, nope, we can't alter that service for you, that's the way we do things here. Yes, I know we could probably DO it, but that's our policy, no alterations of any kind to the services for customers.
15. Act as distant and indifferent as possible to the customer; they'll eventually go away, I promise.
16. Ready?! Aim......FIRE!
17. Make it your policy to take pictures of customers that lodge a complaint. Then post them on the front door and use them as target practice for your dartboard gaming. That will surely slow down the complaints you receive.
18. When a customer asks where your blue widgets are, do NOT make eye contact, and simply mumble something under your breath. If they persist, just quickly point in its direction, but don't make the mistake of raising your head and looking their way or you're doomed; you'll be stuck with having to actually SHOW them where they are.
19. If you can't beat the customers, arrange to have them beaten.
20. Everything is an interruption. Someone comes into your store, it's an interruption. When the phone rings, it's an interruption. If a customer is in front of your face, it's an interruption. Heavy sigh. Everything these days is a bloody interruption!
21. If you're the acting manager, it's easy to duck out the back door if there's an irate customer making a complaint. They can't make a complaint to the manager if the manager isn't there, right?
22. When a customer is lodging a complaint, argue the matter in hand from YOUR standpoint, not theirs. Stand your ground!
23. It's not losing the argument that matters...it's how many you take down with you that counts.
24. Give the customer a very vague time frame of when they can receive delivery of the widget they ordered or when you'll arrive for their service call from somewhere between 9 a.m. and 5 p.m. on Tuesday. Now for the fun part...don't show up, and don't call to let them know!
25. Don't deal with a complaint with reality. No one does. Deal with your OWN reality.
26. If you believe your customers are a pain in the butt, TELL them!
27. When the customer is wrong, they're dead wrong. TELL them!
28. Your Point of Sale Poster at an electronics store reads: Don't ask us to change the channel... the TV is for OUR enjoyment, not YOURS.
29. If you can't dazzle the customer with brilliance, riddle them with bullets.
30. Argue long enough to get the last word, and you just might get it!
31. Repetitive arguing with a customer will eventually establish your validity.
32. Tell the customer the item they want is in stock when it isn't, and quickly charge their order to their credit card. It will get restocked sooner or later...just put off their calls until it arrives, and you've made a quick sale! It's also hilarious fun to think of them checking their mailboxes each day for weeks on end with anticipation of its arrival.
33. Defeat to a customer ain't bitter if you can sprinkle them with a little dirty revenge.
34. Use voice mail on your telephone system with the option for customer service to 'press 2'. Have a canned recording for the customer to leave a message for screening purposes. Just don't return the complaint calls.
35. Our company's Mission Statement has been revised. Our goal is to see how many customers we can piss off this month.
36. If all else fails, blame the customer!
37. State that they're calling you a bitch like as if it was a bad thing.
38. When someone asks to speak to a manager, tell them none are available.
39. You can be one of those bad things that happens to good people.
40. Provide different store policies and services throughout your store that conflicts just to confuse people.
41. A good scapegoat is hard to find...do your earnest to find yours.
42. An argument long winded enough will end up in semantics.
43. When all else fails, mumble.
44. Anyone can admit they were wrong...the true test is not admitting it to anyone!
45. Be the best at talking in circles, for you shall be known as the 'big wheel'.
46. Tell the customer you didn't say it was their fault...you said you were going to blame them.
47. Inform the customer they have the right to remain silent. Anything they say will be misquoted then used against them.
The Customer Service Counter:
48. To hell with calm and rational discussion with customers over refunds...now is the time for shameless bickering!
49. Sign at customer service desk: Thank you for not annoying us more than you already are.
50. What part of our policy for things not covered for returns -- 1) changing your mind; 2) found cheaper price; 3) things you didn't need but you couldn't resist the price -- do you not understand?!
51. Sign at customer service counter: I want to die peacefully in my sleep like my grandmother...not screaming and yelling like the customers I shot yesterday.
52. Let's see...we've got your name, address, rank and serial number, home number, cell phone number, your mother's maiden name...oh yes, we still need...
53. Guaranteed your money back...if we feel like it.
54. Sign at customer service desk: If you can read this, you are within aim range...oops, I mean in proper file formation.
55. Sign at customer service: Don't get me mad...I'm running out of places to bury the bodies.
56. Never underestimate the power of stupidity when you're the customer service manager.
57. There is always one person in the customer service department that understands and works well with people. This person must be fired.
58. Tell the customer you're sorry to hear they're unhappy. Now follow through the process of closing their account. You'll never have to be bothered by them again!
59. When a customer brings back an item for return that you sent them in error, try to talk them into keeping it. If they flatly refuse, try to talk them into splitting the cost of re-stocking the item.
60. Make the customer angry enough in a manner to make them happy to be leaving. At that point you've done your job!
61. Sign at customer service counter: Bring on the customer return beheadings!
How to Anger a Customer Even Further:
62. When a customer makes a complaint, just give them a blank stare. If that doesn't work, give them attitude. It will work every time!
63. Throw the customer a stick and ask them to go away.
64. Show the customer you can get even madder than they are, and yell louder than they can.
65. Take on a bad attitude. It will surely diminish any façade of friendliness the customer may have mistakenly taken.
66. State if you agreed with them you'd both be wrong.
67. Keep looking at your watch while the customer is vocalizing their complaint.
68. Treat the customer like they're a waste receptacle. End of that story.
69. Tell the customer you've fixed the problem. But don't do anything...at ALL.
70. Explain that just because you don't care about their problem doesn't mean you don't understand.
71. State you're there to help them out, then ask which way they came in.
72. Tell the customer you're busy and they're not the only one waiting.
73. Tell them you refuse to have a battle of wits with an unarmed opponent.
74. Tell the customer the way you see it, there doesn't seem to be any problem.
75. Explain that their warrantee expired upon payment of their invoice.
76. Keep talking until the customer finally stops listening.
77. Tell the customer to commit suicide and be done with it. After all, millions of lemmings can't be wrong.
78. Inform the customer that this is the best time for them to just shut up.
79. State that you'll try to be nicer if they'll try to be smarter.
80. Sarcasm is just one of the many good services we offer.
Ways to Handle Telephone Calls:
81. Sorry, I can't take your order...I'm on lunch break.
82. Throw the customer on hold before they can squeak out 'Hello'. Now you can take that much desired coffee break.
83. If you have an angry customer on the phone; don't waste your time with it...simply hang up!
84. Throw a big wad of gum in your mouth when answering the phone...remember to chew with your mouth open. That goes for eating your lunch while answering phones as well.
85. Tell the customer to call back when you're not so busy.
86. Rush through calls, forcing customers off the phone at the earliest opportunity.
87. Slam the receiver in the customers' ear when you hang up to break their eardrums, or drop the receiver on the floor while talking to them. Even a good couple of whacks on a desk with the receiver in hand during conversation should suffice.
88. Tell the customer 'that's not my department, call back and ask for someone else to help you'.
89. Try waiting to see how long a customer will sit on hold before they finally hang up and go away.
90. Tell the customer they're going to have to repeat their information; you're only the third person they've had to speak to thus far.
91. Tell the customer that someone will be calling them back within 1 hour. But don't follow through with it whatever you do!
Courier Service Companies:
92. Flipping the bird in traffic and making rude gestures while you've got your company logo and phone number on the vehicle.
93. Drive in reverse to the receiving door and slam on the brakes and watch it fly...'Here's your delivery! We don't do hand bombing!'
94. Sure, we're available 365 / 24 / 7 to serve you...just don't call us after 2pm or on weekends.
95. God help the customers today...our dispatcher quit smoking last night.
96. You want it when? Then laugh out loud when they answer.
97. Here's our rate sheet...de jour.
98. We only have 1 truck today...you'll have to pay tractor trailer rates for that skid.
99. Sorry, the driver had a flat tire...again.
100. Sorry, we don't take envelopes on Mondays, Wednesdays or Fridays...only high paying jobs.
101. Open unmarked small brown paper packages, then deliver to customer. Then make comments on their contents.
102. One tequila...two tequila...three tequila...floor.
At Restaurants:
103. If you're the waiter and a customer complains about their food, make sure to instill the fear of what the cook (or you for that matter) can do with their food when they send it back...you know what I mean. They'll think twice about following through with that complaint!
104. Be a ghost. Only appear to their table when you can't escape the customers' sight. When you finally get around to giving them their bill, give them someone else's with a much higher total. Cha-ching $$$.
105. Strike up an argument with the customer as to why they didn't give you a fatter tip...you deserve better!
At the Checkout Counter:
106. Be sure to turn your back on the customer standing at the till and do spill ALL about the great time you had at that party last night to your coworker. Don't forget to tell your friend about that awesome outfit you wore to the party either.
107. Your Point of Sale Poster at the checkout counter reads: If you like us, tell us. If you don't, don't tell US your problems.
108. How do I set my cash register on stun?
Miscellaneous Customer Service:
109. Customer stress is waking up screaming, then realizing you haven't gone to sleep yet.
110. If you can't beat your customer in an argument, try kickboxing.
111. Deja moo: The feeling you've heard this customer bull before.
112. An armed sales rep equals one very polite customer.
Have you had enough? Likely, your customers have! In all seriousness, customer service doesn't have to be that bad, but it is easy to see how easily it can degenerate. The next time you feel like "dissing" those who support your business, then reference this article for a "your wake up call".

Article Source: http://EzineArticles.com/423989

It's Never Too Early for Customer Service

2011-12-29T17:22:00.000-08:00

Setting the Stage
The startup environment is one in which feathers are flying and those involved are in perpetual motion (both mentally and physically). Often, in the course of developing products and/or services, chasing down funding and looking for those first precious customers, the concept of a customer service organization falls way behind the back burner. And, while staffing this function and fully equipping it with all of the bells and whistles that are available to customer service organizations may not be the best move in these early stages, it is never too early to build the foundation for this vital function.
There are few, if any, entrepreneurs who would actively and knowingly reject the concept of customer service. Of course, everyone knows how important the customer is - right? Well, yes and no. While the idea of providing good customer service seems like an obvious one at any stage of a company's life, the actual delivery of great service takes much more than just a passing thought or general presumption. In fact, the earliest seeds that need to be planted in any new organization are those representing "top of mind" placement given to customer service at every step in the growing process of that enterprise. This is absolutely not limited to those with the term "customer service" in their job title.
As previously stated, it is not necessarily the case that there will be anyone with a "customer service" title or primary functional responsibility in the early days of the company. It is, therefore, all the more important that those who are there at the beginning and who are, literally, setting the stage for the success (or not) of that new organization integrate the process of delivering superior customer service into everything that they do. So, without people explicitly tasked with the customer service function and in taking it beyond the concept stage, how is this done?
Systems and processes (never mind documentation) are not always a primary focal point for those attempting to achieve the above referenced "tasks" (i.e., product/service development, funding, early customer acquisition, etc.). However, more often than not, the need for these systems and processes rises to the surface relatively early in the building of a company. This may be the result of requirements placed on the organization by their current and/or future investors. That is a good thing. It would be an even better thing if the same level of attention paid to establishing systems and process for functions such as accounting, engineering development, sales and manufacturing was equally applied to the customer service function (marketing is often also an afterthought in this category - that's a topic for another time).
Optimizing the Organization
Interestingly, one (certainly, I) could argue that customer service is the one organization in most companies that touches and interfaces with each of the others. Therefore, it might even make sense to get that one started first. This is true based on the fact that, by definition of the function (again, in most companies), Customer Service is the only place (and time) where/when someone inside the company is actively engaged with the customer while that customer is in the process of using the company's product and/or service. This is one of the best (if not the best) opportunities to optimize everything else the company does (from accounting to engineering to sales and marketing).
For example, let's assume that alpha Customer A calls in to report a bug on the newly released product they've just received from Company X. Beyond the basics of providing a prompt, professional and knowledgeable response to Customer A, Company X can (and should) benefit from that interaction in several other ways. Of course, the details of the bug being reported need to be clearly, completely and accurately communicated to engineering. Depending on the nature of the issue (often there is a very gray area between a bug and an RFE - request for enhancement), this information should also be shared with marketing. If that same customer is operating under a service contract, has outstanding (unpaid) invoices and/or has any other financially oriented "association" with Company X (i.e., a "pay for bug" reporting agreement), the accounting/finance function in the company may need to be notified as well. If the bug/issue being reported has to do with how it was shipped and/or received (especially, if it requires an RMA - return materials authorization), the manufacturing/shipping organization needs to get into the loop. Last, but never least, is the opportunity for sales to create and maintain an ongoing bond with their customer. In the case of a bug report, the salesperson responsible for that customer may want to place a follow-up call to assure that the customer was satisfied with the response to their call. Additionally, and (once again) depending on the nature of the issue, the salesperson may even be presented with an opportunity to "up-sell" another product and/or service to that customer.
Fire Prevention
Hopefully, this most generic of examples makes a strong case for the argument that the customer service function is most tightly integrated with that of the others in the company and, therefore, should be set up to optimize this relationship from the start. An equally compelling case can be made for preventing the fall-out associated with not making customer service a priority from the beginning. This particular circumstance can have much more serious and long-lasting consequences than that of losing out on the benefit of early resource optimization.
In even the most successful early stage ventures (maybe, especially in those), the lack of attention paid to the customer service function (in the form of systems and processes) will result in some serious fire-fighting "opportunities". Let's continue on with the earlier example of Company X. If Company X (like so many startups) has not taken the time to set up (even the most rudimentary) customer service processes and systems by the time they are in "production" (vs. alpha or beta) mode with their first customers, they may only (to date) suffer the loss of optimizing those early customer interactions.
This is generally the time when many new companies decide that it's finally time to start thinking about the "Customer Service Department". This may mean hiring their first one or two customer support representatives (technical support engineers) or may even lead to a search for the Customer Service executive who will build that organization. Again, generally speaking, the job of putting processes and systems in place is left to those who eventually are tasked with running this function.
As someone who has previously built and run several customer service operations, I don't deny the satisfaction of starting something from scratch. However, putting (never mind changing) tires on the proverbial "moving bus" is not a pleasant experience for anyone (the new service person/people, the executive management of the company and, most especially, the customer). In fact, in the worst of circumstances, it can endanger good work done by the company thus far by compromising those critical early relationships. It also has the very real tendency to provide significant disruption in the rest of the business while all attention gets focused on putting out these new fires.
Best Case Scenario?
Up to this point in the discussion, there has only been talk of the risks/results and no more than a general reference to the cause(s). To better illustrate the point, a more specific example is in order. Okay, so now Company X has 15 new customers and each of them is in "production" mode (vs. alpha or beta) with Company X's products/services. To date, all communication with these customers has been handled (and, very likely, not recorded) by representatives from Engineering, Sales, Marketing or even by the chief executive. While not ideal, this hasn't caused any major heartburn (yet) on anyone's part. In fact, to be fair, direct contact by all of these organizations with the customer in the early stages may be very beneficial.
Company X, having reached this production stage of the business, has now hired Customer Service Representative P and Customer Service Representative Q to begin taking customer calls from this point forward. Hey, there are only 15 customers - that should be plenty of coverage, right? Without going into too many details (every company, product/service and customer combination represents an endless number of possibilities), the best case scenario for the new customer service reps is that the calls will come in no more that two at a time (one for each rep). Further, this best case situation would assume that the questions/problems will be either easily answered/resolved by whatever training the rep may have received prior to answering their first call or that someone (i.e., an engineer) with that answer is readily available to assist. Staying with the best case, these first few callers/customers may not even notice that there has been a change. Further, these reps may even go so far as to document (in an Excel spreadsheet, in email or even on paper) the nature of the call for future reference. Taking all of this into consideration, under the best of circumstances, it still substantially limits the organization's ability to optimize the customer service function (and to enhance its customer relationships).
A Touch of Reality
That was an example of a best case scenario - one that only exists in a "perfect world" (one in which we do not live). In a more likely situation, more calls will come in than only the 2 reps can handle at one time. Given that little or no consideration was previously given to customer service systems, it is unlikely that there is a queuing feature set up on the phones to handle such a backlog. This may send customers to a generic voicemail, an operator or (heaven forbid) an RNA - ring no answer - state. Now things begin to get interesting (and not in a good way). The customer has become aware of the fact that things have changed (and not in a good way).
Let's add another level of "less than perfect world" reality to this picture. One of the customers gets through to a customer service rep and wants to follow-up on a call previously placed to Company X on an outstanding issue. Given that there are no systems in place and little or no record keeping to date, the rep (and the customer) is at a definite disadvantage. The best that can be hoped for now is that either 1) the individual who originally handled this issue (i.e., an engineer) can be identified and is readily available to take over the call or 2) the customer service rep takes a message and promises that someone will get back to the customer. Yikes! That does not present a very professional face of Company X to its (relatively) new customer.
Take that same customer, who is, by now, probably pretty frustrated at having to wait on hold (or worse), having to be transferred off to another person and/or having been told that someone will get back to them (because whoever answered the phone had no knowledge of this customer or their outstanding problem). Put this customer on the phone with their salesperson. Let's say that the sales team is really on the ball and is "proactively" checking in with all of their new customers to make sure that all is well and even venturing so far as to look for another sale. What a surprise that salesperson will get when they hear, from their now very frustrated customer, that "No, things are not going all that well and what's happening with my outstanding issue?" Whoops! A smart salesperson will do their best to de-ruffle the feathers and promise to get right back to the customer with status.
Now, where does that salesperson go to determine the current status? He may start with the new customer service department. Because there are only 2 of them, one probably remembers that customer (hopefully) and can tell the salesperson that the issue was handed off to an engineer. As the overall company is still pretty small, the salesperson is also successful in tracking down the engineer (who is, by now, fully immersed in trying to resolve a customer issue vs. working on new development efforts - development engineers really hate that). Push has come to shove and a resolution is in the making. A call back to the customer is made by the salesperson (not the customer service rep) and, for now, that customer situation has been resolved. Keep in mind that, throughout this process, little or no records have been kept on any of these interactions or their results. Is it possible that this same customer (or another one) will call again with the same or a similar problem? What will happen then?
The Good News
The above example is far from extreme in its assumptions. In fact, I've personally been privy to just such a set of circumstances (more than once). And, I only took the example so far - it could (and does) get much worse. And it is definitely exacerbated by more customers with more products and variations on those products over time. These not-quite best case scenarios present themselves over and over again in companies getting started and waiting until they really "need" a customer service organization before they deal with the requirements of customer management. In thinking this way, they neglect to recognize the benefits of incorporating the initial systems and processes that will support such an organization once it is in place. There is good news - it doesn't have to be this way. And, Mr. CFO, it doesn't necessarily have to cost a bunch of money to do it correctly and in a timely manner. In reality, the actual cost of doing it right up front is far less than that of recovering from the losses incurred by waiting too long.
So, how does doing it right look? The first step (and, arguably, the most important) is to create and maintain a customer service mentality throughout the process of growing the new company. This mentality needs to be shared amongst every single individual in the organization and must be one for which every person is also equally responsible (the customer belongs to the company, not to the customer service department). That's still a bit on the vague side, I know. How about another example:
The company founders (two engineers, a marketing person and someone with the early funds) are having their first "official meeting" in one of their garages (it really does happen this way!). It's a brainstorming session on how to put together the early structure of the company so that they'll know what kind of resources they require in the short and longer term. While it's not necessary for the "customer service department" resources to be on this agenda at all, the meeting should most certainly include how customers will be managed (and by whom) from that day forward. This includes an inherent acknowledgement that customer management is a vital function of this company and one that will always be a priority. That discussion inevitably leads to one of process and (even rudimentary) systems requirements. Quite literally, it must cover such basics as:
o How will the customer reach us?
o Who will be their primary/initial contact point?
o How will we track and share data accumulated during every customer interaction?
o What will be our commitments to both response time and follow-up and how will we ensure they are met?
It really does not get much more basic than that - nor does it get any more important. A company with the best product, the best profit margins and the best sales and marketing teams will still fail if the customer relationships are not properly managed. And it cannot start too soon.
More Good News
A bonus in answering the above questions (and adequately addressing them) will be that the overall optimization of the business referenced earlier is enabled. The tracking and sharing component (when effectively managed), in particular, will go a long way toward assuring that all of the functional organizations are on the same page (at least as far as the customer experience is concerned). There is also value in at least identifying the type of communication technology and methodology that will be used between the company and its customers as those same elements will also be needed for internal interface and that with the rest of the "outside world" (i.e., partners, vendors, investors, etc.).
While direct interface between the customer and various functional representatives (i.e., engineering, marketing, sales and senior management) affords many benefits, it is not mutually exclusive from establishing a customer management process. It is as though whomever happens to be on the phone with the customer at any particular moment is acting as a customer service representative (vs. as an engineer, a salesperson, a senior executive, etc.). This provides a smoother transition for both the employees of the company and, more importantly, the customer when there eventually are actual customer service representatives in place. It has the added benefit of demonstrating to the customer, from the onset, that customer management is a company priority (beyond that of just obtaining the customer's money).
How Much is This Going to Cost Me?
The concept of minimal financial outlay was presumed earlier. This concept is based on the fact that the purchase of specific hardware/software systems meant to manage the customer relationship are not (necessarily) a requirement in meeting the proposed business objectives of customer management (at least, not right away). In the early days, the terms "system" and "process" are virtually interchangeable in that the process is the system and visa versa. For example, a "system" of managing customer information may just be the process of maintaining a written (online) log that is available to all of the functional organizations and representatives. This may be accomplished through means as simple as email or file sharing. Similarly, the "phone system" may be a distribution of the cell phone number for the "technology guru" with call forwarding to his/her backup when the initial call isn't answered. Both of these examples may make use of technology; however, it is not in the form of an incremental expense to the new business; instead, it is just making best use of existing resources.
Not Just a Department After All
I suppose it could be considered trite to state that customer service is a state of mind vs. just a department. However, I cannot think of a better way to summarize where it must fit in the creation and growth of a successful enterprise. Stephen Covey references something called the "emotional bank account". This same theory can be applied to the customer relationship. If properly managed, customers will put up with a lot more than they would otherwise because good customer management builds up "credits" in that emotional bank account from which to draw during the inevitable times when things don't go quite as planned. Both the customer and company benefit from viewing their association as a relationship having value over time beyond any one sales transaction. It is with this mindset that strong companies are built and grown to last.
So, the next time you are in a position of contemplating a new enterprise (or investing in one), don't forget that "It's never too early for Customer Service!"

Gaven Fahl is a Customer Service professional currently providing consulting services to early stage companies in the form of defining and implementing Customer Service/Professional Service infrastructures. This work included strategic positioning of the Services organization within the company, assistance with staffing, acquisition and implementation of required technology and development of related process and documentation. Additional consulting services have been provided to larger companies in support of existing Service organizations. These include analysis of resource requirements for organizations in transition and general systems/technology consulting.

The Importance of Focus for Generating Customer Value

2011-12-29T17:20:00.001-08:00

Abstract

It is essential to carefully choose your Customer Value Proposition. Both value creation from the customer as well as the corporate viewpoint gain from consistent and deliberate focus on key market segments and core competences. This results in a mutual exchange of value, which will stabilize and strengthen your competitive position.

Introduction

The term customer value is typically used in one of two ways. Either customer value is used to describe the benefit a customer gets from using a product, or, customer value is the profit a customer generates for the company. In this paper we embrace both the "soft" (satisfaction) and "hard" (profitability) approach to value creation.

It is somewhat of a paradox to consider the value for the customer as if this were in some way opposed to the value for the company. There really should not appear to be a conflict of interest between value for versus from the customer, since this is not a zero sum game. For example, a customer that is getting excellent service is therefore less likely to shop around, compare prices, and maybe churn. Great service and satisfied customers are necessary to avoid your product being perceived as "merely" a commodity. How else can you command a premium price?

There is no reason to suggest that value created for the customer is in any way antipodal to value generated from the customer. The trick lies in matching the offer to the customer needs, or, finding the "right" customer given a company's offering[1]. To achieve this goal, it is essential that a purposely chosen Customer Value Proposition (CVP) be pursued.

Measuring Customer Value

There are many possible criteria to measure corporate performance like market share, turnover, profit, number of products sold, etcetera. Aggregate turnover, sales volume or market share do not necessarily provide a reliable picture of the (financial) performance of a company. For example, a large market share could have been acquired at too high cost, and as a result the profit per customer may be dangerously low.

Rather than only rely on aggregate performance figures, it is better to also capture characteristics at the individual customer level. The question then is: what are the most useful performance criteria to determine how a company is doing? Such performance criteria should ideally also provide guidance on how to change course "in mid-air", to offer help with tactical decision making. In general, aggregate numbers are not very useful to help everyday decision making at the operational level.

Not all customers are created equal, some are more profitable than others. For this reason, you want some kind of measure for profitability. Often, the hardest part in determining individual customer profitability is dealing with the fixed costs. You need to set up an allocation scheme that takes into account how fixed costs should be allocated across customers. This is not easy, but necessary to establish an individual profitability calculation. As an example, suppose hardware is needed to host a new VR system. If only 10% of customers have started using this system in the first year, it seems hardly reasonable to "charge" these customers with the full hardware costs. Then users of essentially a more efficient system would all "become" terribly unprofitable!

Measuring customer profitability is vitally important to target the right prospects. Companies want to spend their marketing resources where this will generate the highest payoff. This requires insight in cross- and up-sell potential. It is not just current profitability, but also the development of customer profitability over time that is important. Insight in both is necessary to evaluate the ROI of marketing spend.

A New Paradigm: From Aggregate to Individual Customer Data

Businesses are increasingly run "by the numbers". CRM, the new marketing paradigm, has helped to shift the focus from aggregate company sales to the individual customer. It is not enough anymore to know that your market share went up. The underlying "quality of growth" needs to be monitored as well. Numbers like the percentage of new customers and attrition of the existing base can have a huge impact on bottom line figures, and further potential for growth[2],[3]. According to many[4],[5], CRM has failed in many respects. Even if this were true, it has nonetheless brought about a lasting change in focus on the kinds of numbers that are used to steer businesses.

In this new marketing paradigm, the focus is now on customer lifecycle management, on developing and maintaining customer relations. Marketing spend is seen, not just as an expense, but rather as an investment in the relation with the customer.

Value From or For the Customer?

Sometimes the debate on value creation is treated as a zero sum game: by doing more for the customer the company is earning less. This is only an apparent paradox[6]. Sustainable value can only be created if the supplier can afford to offer the current service level and still maintain profitability.

From the customer perspective, they consistently need to get a better overall deal than they could get from the competition[7]. If dealing with the current supplier does not generate excess value, customers will leave. Value for the customer means more than just offering a better price. As an example: the Ritz-Carlton hotel chain is not cheap. But the service is excellent. As long as the "total experience" is better, the Ritz-Carlton still provides more value to those who can appreciate this superior service.

For the corporation, value creation comes in the form of a steady cash flow, which can be counted on to extend into the future as well. Value is created in marketplaces where both suppliers and customers are in a win-win relation. Only then will the supplier be able to sustain its market position, and only then will it be in the customer's best interest to maintain the relationship with this supplier.

Loyalty is not something that can be bought, at least not profitably for prolonged periods of time. In fact customers cannot even be owned. Customers can be rented from the marketplace. But this comes at a price, namely acquisition and retention costs. Loyalty is a privilege one can earn by consistently delivering superior value to the customer.

Dynamics of growth

Providing value to the customer leads to growth in the market. This in turn leads to a better understanding of the reasons behind success (customer feedback and research), which then shows the way to providing even more value. This cycle can continue growing. It is a self-reinforcing cycle.

Focus on the right kinds of customers is a leverage point in that it can make or break success. A loss of focus will cause this same cycle to gradually break down over time.

The risk of success is that it can blind you. Success in the marketplace should come from a match between your CVP and meeting needs of customers. What is it about the service that customers value the most? Dell is an example that might apply here, They had years of stellar growth, and pioneered innovative distribution and supply chain management methods. Currently they are wandering, their service and quality are dropping because they appear to be too many things to too many customers. By putting effort where this is most appreciated by your customers, you stay "lean and mean".

It is crucial to determine your core competencies. You need to define exactly what the benefits are for the customers. Then you need to specify the needed processes, systems and communication that are required to deliver these unique benefits. Why is it that (high value) customers like you? Then, focus all energy towards meeting those goals.

Given an organization's infrastructure and value proposition, certain customers can be profitably targeted, others maybe not. The constellation of organization structure, systems in place, and the value proposition a business is working with (its "capabilities"), together comprise the most important elements that will influence the costs of an organization. Moving outside of these core competences entails a risk of inefficiencies.

Risks of an undifferentiated approach

What are the risks of an undifferentiated growth strategy? This will result in a loss of value in four places:

1 - There is less of a match between the value proposition and your new customers. As a result, you become increasingly dependent on customers choosing you, instead of the other way around. This risks devaluation of your brand for two reasons. Firstly, for many customers you cannot deliver what they expect. And secondly, you loose your differentiated position. Your brand becomes an "average", there is no longer a way to differentiate yourself from the competition[8].

2 - You loose focus on your core competencies, given the CVP-segment match. Because of heterogeneity in new customers, a pressure arises to diverge activities, to fulfil more different kinds of needs (similar to the problems Dell is currently facing). For example, there will be more processes to manage, more different kinds of questions and requests from customers, and you risk running into service and communication problems. It is inevitable that lack of a clear priority of service and value will lead to higher operating costs. As a result, you can expect more errors in fulfilment because you are being been forced to offer more diverse services.

3 - Once "the wrong" customers have entered the base, it becomes much harder to cross- and deep sell. Also, developing new products becomes much harder: whom to develop them for? This will then further amplify the difficulties in cross-selling.

4 - The leverage on the market goes down, costs go up, and therefore there is even less competitive power. You don't "know" your customers, simply because there is no "typical" customer (anymore). And the customers don't know you, due to lower average tenure. Your service costs are likely to go up when your customers are less familiar with your services[9].

Because of these four reasons higher costs will be inevitable, thereby making it even harder to compete. Margins have eroded and more cumbersome operations negatively affect your nimbleness to move into new market segments. Heterogeneity in customer needs will lead to a mismatch with the CVP. Therefore, it will become harder to satisfy existing customers. In particular, loyalty and referral rates will go down, leading to a downward spiral.

How to measure progress

How do you establish the match between CVP and customer needs? This will require tracking some key metrics. To monitor developments over time, you compare successive cohorts in terms of cross-sell, profitability, and tenure. This means comparing groups of customers that entered in successive years, and "normalizing" their profile. By "normalizing" we mean comparing all groups at their start, after being a customer for 1 year, 2 year, etcetera.

When analysed in this way, a new perspective on the portfolio of customers arises. Over time, growth in the total number of customers may lead to slightly lower cross-sell and tenure figures. It is important to strike a balance here, and any steep drop in cross-sell, tenure or profitability should be cause for concern.

Another important source of input is customer feedback. Ask customers how and when they find value, in particular your most profitable customers. Of course, you should focus effort where the cost/value payback is highest. Customers' needs are a moving target, and aligning with customer desires requires continuous innovating and adapting[10].

Which customers to target

In the remainder of this paper we will demonstrate why value for the customer is in large part the result of quality and appropriateness of customer acquisition. Although the misfit between CVP and customer cohort only shows after a while, it originates at the moment when customers enter into a relationship. The "right" new customers to try and acquire, are those that have the potential to buy your extended offer. That means not just taking the basic core product, but also the extended products and services. This is essential because it is well established that only customers that you can cross sell to successfully, are the ones who are likely to become profitable[11].

How do you determine which customers should be targeted? There are two essential ingredients needed here. The first is an Activity Based Costing (ABC) scheme. It is important to break down customer profit into the constituent components. This allows an analysis of relative contribution of profit per product category. The second ingredient is a longitudinal breakdown of cross-sell. What this implies is that customer data need to be represented relative to their origination date. This way, you can display profiles of customers after 1, 2, 3 years of tenure, etcetera, but also make comparisons relative to when the relation began (start year 2005, 2004, etcetera). Customers you can cross-sell to effectively are the ones to target for.

There is one minor complication. The way customers "look" after successful cross- and up-sell might be quite different form the way they looked when they first became customers. Yet their initial appearance is what the targeting should be aimed at. You search for look-alikes of prospering customers, the way they looked when they first became customers. The fact that these customers prospered under the current value proposition is living proof that these are the kinds of customers for which the offering has the most appeal. There is a good match between the CVP and inherent needs.

What to do when there is a mismatch between customers and CVP?

Suppose you conclude there is a mismatch between the CVP and new customer acquisition. This becomes clear when too many new customers are not developing well. What can you do to get back on track?

There are basically three approaches you can take now:

1 - Install barriers; prevent certain (low value) customers from entering. For example, one could establish a business rule that Private Banking customers can only enter into a relation with the bank with a minimum starting deposit of at least 2 Million Euro. This effectively prevents the "wrong" kind of new customers from entering.

2 - Demarketing; employ a cost control strategy. Freeze all marketing investments and simply stop making offers. You can cut down on customer service, for instance by giving these customers a lower service priority at the call center. This part of the tactics is meant to prevent more waste on customers where the investment will bring insufficient returns.

3 - Differentiate on price; when some customers only use part of the proposition (buy only few product categories) then you can adjust the price/service strategy. One way to do this is by offering bundled service packages at a discounted price. What this effectively does is make the overall CVP more interesting for the customers you are seeking (with a large share of wallet), and make the offering more expensive for customers who are only "cherry picking". Such a strategy kills two birds with one stone because it mitigates the costs low value (low wallet share) customers are creating, and it communicates the appeal of a "full deal" to customers you aim to attract.

Conclusion

In this paper some arguments have been put forward to demonstrate why focus on a purposely chosen CVP, and targeted acquisition of new customers are key to sustainable success in the market. Purposely choosing and shaping your CVP is an ongoing strategic process. The choice for a given CVP should come from an assessment of core competencies[12], in combination with existing market needs and financial potential.

Constantly reshaping your CVP should be the result of evaluating customer feedback. Make the best possible use of what customers say they particularly like about your service, implicit or explicit. Implicit feedback is displayed, for instance, in higher response rates. A high response rate implies relevance of your marketing offer. Explicit feedback can be gathered either in dedicated research, or at moments of customer interaction (for instance in the call center).

Another important point we made is the central importance of the customer acquisition process. Customer acquisition is not something to undergo, it is an activity every company engages in. We asserted how important it is to target for customers who have high potential for future growth. New customers are rarely very profitable at the outset. What's important is that their customer value be managed throughout the lifecycle.

The risks of an undifferentiated growth strategy, of not selectively acquiring new customers are pernicious. This is mainly because the consequences are usually only felt much later. Due to the time lag between cause and effect, the relation with inappropriate acquisition may not become evident. Also, the diagnostic measures (cohort analysis) needed to improve profitability may not be obvious and easy to obtain.

The good news is that a consistent focus on customer value, whether seen from the customer or the company, will drive towards a mutually beneficial optimum. By acquiring the right customers in light of the chosen CVP, cross-sell will go better, and therefore market leverage is greater, service will be better, and less costly. Create value for the customer, make sure your CVP and "chosen" segments match well, and keep a sharp eye out for future profitability of your customers. This is exactly why it is so important to deliberately choose and shape a CVP in such a way that customers will engage in a full-blown relation, and can therefore become highly profitable to the company.

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