Archive for the ‘How to improve customer service’ Category

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Seeing it through

Thursday, May 19th, 2011

If a customer contacts you with an issue, do you see it through? Sometimes, the issue is easily resolved and one contact is all that is required. However, sometimes issues are more complex and require additional investigation or going up the chain of command. Do you hand this off? Should you hand this off?

At times, customers will want to speak to the supervisor or higher up directly. Perhaps in this case, you are seeing it through by putting the customers in firm contact with whom they want to speak. But what if you are in sales and the problem is in accounting. You send a customer to your accounting colleague and assume it is taken care of? Customer service that exceeds expectations would require you to check with accounting and with the customer to make sure the issue is resolved. You want to see the issue through resolution.

Seeing it through is about follow up. It requires discipline and organization. It takes extra work, but the extra work could truly pay off with a very satisfied customer.

It is endemic among larger corporations and utilities that with so many customer issues and underpaid, uninterested customer service representatives to see a lack of follow through. How many times have you called a company about a billing discrepancy or a missing shipment only to be told that it is someone else’s responsibility or that “the system” doesn’t have the information.  If the customer service agent would take ownership of the customer issue, and make sure it is finally resolved, the customer would feel taken care of, and probably, much more satisfied with the company.

Seeing it through is harder than shifting responsibility or washing your hands of a problem. But it pays off in the end.

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Disconnected from reality?

Tuesday, May 17th, 2011

Do you ever deal with an organization that promises superior service and yet, when you deal with the company, it is far removed from that promise? That is a disconnect and one that hurts both the organization and the customer.

Just the other day, we called a service provider. The representative on the phone was unhelpful, and not knowledgeable, forcing a transfer to supervisor. The supervisor was also not helpful. A customer care survey right after the call assured that “customer care is a first priority, and that the work that customers have to do to get their issue resolved should be minimal.” Not so. Obviously that is what the organization aims for, but the reality on the ground was much different. In fact,  this particular service provider is well known for not having stellar customer service.

An organization should know what is going on in reality. Surveys do help–as long as they are acted upon.

It is good to have a driving philosophy that can be applied to real life. One such example is the idea of  “The Four Cornerstones of Superior Customer Service.” They are all about the type of attitude a customer service representative should have, and they are:

  1. Positive attitude
  2. Respectful attitude
  3. Proactive
  4. Dependable

Clearly, the process starts with hiring the right type of people, who naturally exhibit these qualities. But it also has to start with training and laying out expectations. If an organization wants to keep customer service front and center, it must make the delivery of such customer service a priority and a reality.

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Waiting

Tuesday, May 3rd, 2011

Most transactions — going to the post office, making a deposit at the bank, paying your bill online–involve some waiting time. However, the longer the wait, the more unhappy the customer becomes. Standing in line, or being on hold allows customers to think about what they want from your organization. They may decide the wait is not worth it. Sometimes though, the wait is required.

Long wait times have much to do with staffing and customer demand. If you have ever arrived from an international destination to an US port of entry, you have seen the crowds in line at passport control. Since each plane holds from 200 to 400 passengers, and far fewer immigration officers (and now there are additional requirements for non-US citizens), the wait times can rise from minutes to hours.

Banks and post offices have minimized wait times by letting customers complete many (if not all) transactions online or on the phone.  Back in the 1980s before the Internet revolutionized everything, people would have to go in person to the bank to transfer money, get their latest account balance or check to see if a check had cleared. All those functions are available immediately through the Web, cutting down greatly on the people in line at the bank.

Organizations should aim to reduce waiting as much as possible. If it is not possible, Sean Silverthorne suggests making sure that customers understand why they are waiting, and that you are working on their behalf during the wait. In the article Make Your Customers’ Wait Times Less Painful on Bnet.com, Silverthorne says

provide customers with a visual or audio (typing) cue about the work actually being done behind the scenes.  (…)

Ironically, some people prefer to wait longer when this process is done right, such as at Starbucks. Baristas are under orders to steam drinks one at a time, and are prevented from the faster practice of batch steaming.

According to a research team that is studying this phenomena, “customers find waiting more tolerable when they can see the work being done on their behalf — and they tend to value the service more.”

The bottom line on waiting is that if it is inevitable, make it seem worthwhile.

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Customer service and customer retention

Tuesday, April 26th, 2011

Customer service is often thought of as a problem solving function. Although dealing with issues is a primary function of customer service, it should not be the only one. Another very important function is customer retention. Customers do not automatically become loyal to your company or organization. Customer service can encourage their loyalty.

Often, once a sale has been completed or an issue resolved, customers hear nothing more from the organization. Think of how many times you have stayed at a hotel and not heard a word after you signed the credit card receipt. Or if you do hear something, it is an offer to sell you more service or product.

To retain customers and encourage loyalty, organizations have to figure out ways to reward loyalty and appreciate their customers’ patronage. For small businesses, thank you notes and calls are feasible. For larger businesses, there could be loyalty programs, repeat business discounts and special treatment.

On the Small Business CEO blog, in the post “The 4 Biggest Customer Service Mistakes You Can Easily Avoid,” number three is “being inaccessible.” Many times businesses bend over backwards to seal a deal only to become silent once the sale has been made.  Many businesses spend thousands of dollars to sell a product/service and then, will not spend the cost of a first class stamp to thank a new customer for his/her business.  This does not encourage customer retention.

Basic customer service avoids losing customers, but “advanced” customer service will work to retain customers, increase loyalty and increase sales.

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Too many rules?

Thursday, April 21st, 2011

One area that consistently garners customer complaints is fine print. Many companies put in arcane rules and regulations into fine print so that they are covered, but the customers are left hanging.  Very few people read through an entire contract, and fewer still read the fine print because IT IS HARD TO READ. And some companies keep the fine print specifically because of this fact. They do not want customers to read the rules and regulations because most customers would balk at certain policies.

Because some companies make it intentionally hard for customers to know what is permissible and what is not, customer service agents are left having to explain the same issue over and over, or otherwise try to deal with irate customers who are fighting a policy “they should have known about.”

Fine print, excessive rules and regulations, arcane policies are all the enemies of customer service. Christopher Elliot writes an excellent piece about this on Bnet.com, “Is Your Customer Contract Undermining Your Company’s Service?” In it, Elliot writes:

A fairer contract isn’t just better for your customers. It can also improve your customer service. When the unfair provisions in the fine print are removed, then customers get the service they expect – not the service the fine print entitles (or doesn’t entitle) them to.

A few pointers about rules and contracts:

  • Companies need to ask whether all the rules are truly necessary, and what they are there for. Are you overprotecting yourself?
  • Why are the rules hidden and not in plain view? Is there a way of making what is allowed and what is not crystal clear?
  • Is the company using fine print to defend itself or screw the customer? Yes, there is a difference. What scenarios are more likely and what is the best policy if those scenarios happen?

Too many rules and provisions can become a nightmare for both the customer and the customer care portion of a company.

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Expectations. Expectations. Expectations.

Tuesday, April 19th, 2011

If customer service can be boiled down to one word it would be expectations. Customer service is about meeting expectations (or exceeding them) and also about managing expectations. When expectations are not met, or when they are not managed, the inevitable result is an unsatisfied (or even angry customer).

Expectations are set even when the company involved does not advertise a certain outcome. Expectations are set because most people (customers) expect a certain minimum from the companies they deal with. Usually customers expect:

Competent service

Responses to their questions

Conflict resolution

Information

In the article for Business Insider, “Four Valuable Customer Service Lesson We Can Learn From the Airlines,” author Shep Hyken discusses how airlines handle operational issues impacts how customers view the airlines. He says that there are four lessons that we can learn from airlines that are doing it right:

  • Managing expectations
  • Providing information
  • Having a backup plan
  • Creating confidence

Notice the first lesson involves managing expectations. If passengers are told that their flight will be delayed, they don’t expect to be on time, and can then make alternate plans if necessary. The frustration is reduced.

To apply to your customer service, your organization must define the essential expectations that your customers have about your product and service, and strive to meet or exceed them. But, if something around those expectations is not going as planned, then you must manage your customers expectations IMMEDIATELY. Don’t withhold information.

Expectations will make or break a business. Businesses who consistently live up to expectations will survive and even thrive. However, businesses who do not live up to expectations will certainly end up having disappointed customers who will not come back.

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Proactive vs. reactive

Thursday, April 14th, 2011

Proactive customer service is directed to anticipating customer needs, issues, problems or wants, and jumping ahead. Reactive customer service, which is much more common, seeks to resolve issues as they arise.

Clearly, proactive customer service takes more time, more effort and deals with many more intangibles. Reactive customer service is easier. The  big difference between them is one prevents and the other fixes.

Perhaps the best strategy for most organizations is to mix it up.  You will have to respond to customer issues when they arise, but still looking to prevent those issues from arising in the first place.

An interesting example of customer service gone wrong is Wal-Mart. As this article on Bnet discusses, the giant retailer lost its way because it did not pay attention to customer needs and therefore lost business. In order to boost its bottom line, Wal-Mart cut back on the variety of product available. This made customers think twice about going to Wal-Mart. Now, the company is in reactive mode, and is trying to lure customers back by adding back product variety. Can you regain customers once you have lost them? That is the question.

Proactive thinking in customer service is really about cutting back on the reactive work you will have to do. Start with considering what your customers want and need. If you align your business with these needs and wants, chances are your customers will not have many issues with you.

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What makes customers angry?

Tuesday, April 12th, 2011

No company wants to have angry customers.  Anger is a toxic emotion that will have negative consequences for a company.  Customers who have issues or problems start off frustrated. If the issue or problem is not addressed (and resolved), the frustration mounts and can turn to anger.  An angry customer will not only stop doing business with the company, he or she will lash out against the company…sometimes even using legal recourse (filing complaints or even legal suits).

Kelly Gregor, writing for the New Zealand Herald in the article “Companies: Beware the irate customer” cautions that angry customers are more able to voice their complaint very publicly using social media.  Gregor interviewed Greg Gianforte, founder of a U.S.-based software company, who said this:

“US consumers are angrier than consumers in New Zealand. Instead of calling a business or a supplier, and trying to resolve the issue, [US] customers are jumping on social media sites and discussing their bad experience there.

But what is making customers angry?”The biggest mistake companies make is assuming “one size fits all” and this mentality needs to change in order for businesses to be able to deliver efficient customer service, ” said Gianforte. Other sources of frustration include:

  • Being slow to respond.
  • Not resolving issues to customer satisfaction.
  • Not accepting responsibility or shifting responisbility to the customers
  • Poorly trained representatives
  • Not appreciating a customer’s business

There are many more reasons that customers can get angry. Companies must recognize the source of anger and move to fix it, or risk losing business. And as an added incentive, social media serves as an amplifier. An angry customer can get many more people angry at a company. By the same token, a satisfied customer can share his or her approval on social media.

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Touch points

Thursday, March 31st, 2011

The concept of touch points is simple–where does the customer come into contact with your organization. The touchpoint is the place where customer service is necessary, yet often, this is exactly the weak point in the organization.

How many times have you gone to an online retailer to purchase something and you find that there is no easy way to contact the company? It is expected that when you transact business online the touch point will be online, meaning you will get an email or instant message capability.  How many times have you walked into a store, and there is nobody there to help you? The touch point here is in person, and should happen when a customer enters the location.

Businesses must know what their touchpoints are and must have customer service available at those locations.  The article from Business Insider, “Take a Customer Service Tip from Lexus,” discusses why Lexus has been consistently ranked number one in customer satisfaction by JD Power and Associates.  It argues that Lexus treats people correctly at each touch point (service, showroom, etc.). The author writes:

In your business, what are the four or five main touch points that your customers would grade you on? My guess is that they are somewhat obvious.  Focus on these main touch points. Make them a core focus. Do it right and you will be on track to deliver customer amazement – an experience that is always better than average.

Whatever your business type is, there is a point of customer interaction. Make sure that at that touch point, your customer can get the assistance or attention he or she requires.

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What can you learn from the customer service leaders?

Thursday, March 24th, 2011

There are businesses out there that are known for their exceptional customer service. What is it exactly that sets them apart? More importantly, are there are any lessons that can be immediately applied to your organization?

Zappos, the online shoe retailer, is known to be a customer service leader.  What can you learn from Zappos? “The Zappos Effect: 5 Great Customer Service Ideas for Smaller Businesses” on PracticalECommerce.com provides a great starting point. According to the article, the five ideas that you can institute are:

  1. Fast response time
  2. Take returns without question
  3. Have solutions at the ready
  4. Treat your customers well (this should go without saying)
  5. Treat each customer as an individual (also, should go without saying)

What is telling about this list is the implication that some businesses do not live by these “rules.” Some businesses are not customer-service oriented and therefore, don’t treat customers right.

These five lessons from Zappos are applicable to every kind of organization. If you provide a service and not product, you can still make “returns” easy. If the customer is not satisfied with your service, don’t grill them about it…try to rectify the situation.  What types of issues are your customers most likely to face? Why not brainstorm solutions and empower your customer care people to find ways to help?

Here’s an exercise: Think about who you consider a customer service leader . What makes that business stand apart? What  lessons can you draw from their service, and what can you apply to your business?

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