How To Keep Your Customers

customer serviceIn a worldwide recession, keeping your customers happy is critical. And, at any time, it’s always cheaper to retain new customers than to acquire new ones. One way to do this is with great service. Here are two examples of companies that got service right.

A book newsletter recently featured an offer for free chocolate. Send your name and address and get chocolate! I was all over that and immediately responded.

A few days later, I got back a very nice note from the VP of marketing and sales at the chocolate company, saying that due to overwhelming demand (and cross-posting of the offer in places it didn’t belong), they could only offer the chocolate to bookstores and retailers.

However, as a consolation prize, they offered a discount to anyone who ordered a box of chocolate from their site before Valentine’s Day.

I was disappointed (though not completely surprised) to be told I was ineligible for the free chocolate, but I sent back a note asking if they could send the chocolate instead to the indie bookstore down the street (and included the name and address) – as a random act of kindness.

Well, I got another note back asking for my address, and saying that they would try to send me some chocolate after all!

Now, that’s service, and bravo to them all around!

Meanwhile, Bernd reports that great service is taken very seriously in Japan:
“Once it was butter in a glass jar. Upon opening we found a black residue in the cap and near the top rim. My wife called the toll-free number, the area salesman (who normally visits the retailers) came by the same day to pick it up, with profuse apologies.

Few days later we got a ready-made postcard, apologies for the inconvenience, case under investigation.

Week later a letter, with apologies for the inconvenience, “what looked like mold was confirmed to be mold. We are investigating the manufacturing process to prevent recurrence.” Letter was in a box with more butter jars than we had bought and two other products from the same company. They wanted us to keep their name in good regard.”

Photo: striatic

Are You Scaring Your Customers?

Friday the 13th is traditionally a good time to watch scary movies, but that doesn’t mean the fright should extend to your business.

If your phone systems are complicated, it’s hard to reach the right department, and hold times are really long, you may be scaring your customers away.

Multichannel Merchant reports (Feb. 10, 2009) that a recent survey of e-tailers found that service levels have slipped considerably in the past year. The report found that the number of e-tailers offering 24/7 service access has dropped to 27% (from 39% the year before), and the shipping times had increased to nearly 5 days.

However, the biggest problem was customer service rep knowledge. There’s more outsourcing (to save money), training levels have dropped, and the reps don’t know as much about the products as they should. Customers are frustrated, because they can’t find what they want, get product questions answered correctly, or solve problems.

The article quotes E-tailing Group President Lauren Freedman saying, “‘There’s not enough emphasis on building a customer service culture anymore.” What happens is that “bad” culture leads to poor email service, a poor call center, and finally, …”you open up live chat and you’re bad at that too!”

There were some bright spots though. The service winners included Brookstone, Lands’ End, Brooks Brothers, and Bluefly.

Meanwhile, I had an excellent “customer service” experience when I called the city of New York City information line the other day. Instead of trying to figure out which of the gazillion possible city offices to call when you have a problem, you just dial 311.

Here’s what happened. I was looking out the window and saw lots of water pouring out of my neighbor’s town house, into the yard. Something was clearly broken, but I had no idea what or who to call about it (neighbors weren’t home). So, I called 311.

After one or two push button choices, I got a real person. I explained the problem and she transferred me to the Department of Environmental Protection. I repeated it, and after speaking with a supervisor, the rep decided the problem required the fire department. She connected me, and gave ID info to the operator. I explained the situation, and the 911 operator notified the fire department.

The whole thing took maybe 5-10 minutes. A fireman was at my door (to look down at the problem) about 3 minutes later.

They turned off the water (it was deep enough to slosh around in) and the immediate problem was solved (though I understand the owners found a big mess when they came home).

If a big bureaucracy can do it… you can too!

Photo:wordridden

The Best Time to Invest in Customer Service

The demise last year of BlueSky, a company that specialized in fulfilling orders placed from the catalogs of non-profits, left many people thinking that the nonprofits had ripped them off. Customers were left with cashed checks, credit card charges — and no merchandise.

It’s a customer service and public relations disaster, particularly since many of the organizations affected didn’t have any of the order information and couldn’t tell who’s missing what.

According to DM News (4/9/08) Winterthur [the decorative arts museum in Delaware], “… refused to take any responsibility for orders placed with catalogs sporting its name and logo left unfulfilled by BlueSky.”

“ ‘Winterthur is not responsible for resolving issues related to the operations or outstanding orders of BlueSky Brands and does not have information on the orders that have been placed,” the company said in a statement on its site. “Credit card issuers may be able to assist in resolving billing disputes with BlueSky Brands for those orders paid for by credit card.’ ”

On the other hand, The National Wildlife Federation reacted by collecting inquiries, sorting them and working on developing a plan to manage them; the Smithsonian posted a Q&A on its site.

The best time to invest in customer service is before something like this happens. Have policies in place that encourage your reps to go out of their way to help customers: check on which store still has a particular book in stock, or where they can find their favorite flavor of your pasta sauce. The second best time is after something like this happens. Instead of washing your hands and walking away, try to negotiate on your customers’ behalf with your vendors, investigate what happened, and do your best to make it right.

Photo: brycej

Getting Bad Customer Service? Complain About It

Is it worth complaining about poor service in restaurants or other places?  Does anyone really listen?

It turns out they do. A few months ago, my doctor fired my insurance plan. It was disruptive, annoying, and irritating. I don’t go to the doctor often, but he’s convenient, he has my records, and I rarely have to wait.

Well, two weeks ago, I got another letter saying the economy is bad, patients’ options are limited, and the doctor’s practice was able to negotiate with the insurance company to ease some of the administrivia. So, he’d changed his mind. He would continue to take the insurance and apologized for the “disruption, hardship and angst” that many patients endured after the original decision.

I thought that was remarkable. He realized he’d upset his “customers” and he took steps to fix it.

Dell’s Marketing is Broken

Hugh at Gaping Void said, “.. if I randomly asked you to make a list of the world’s top ten most “Creative” companies, would Dell make it on to the list? I’m guessing, for most people reading this, they simply wouldn’t.

Yes. I happen think this is a SERIOUSLY huge problem.”

This got me thinking. Dell’s problem is they have no tribe. They haven’t reached out to their customers, or given people considering a new computer any particular reason to prefer Dell over HP or any other brand.

Apple is famous for its “cult” of enthusiastic, loyal customers, a tribe if you will. One reason is that they provide first-class customer support. Several months ago, the display on my iMac wasn’t working properly (everything had a green tinge). I have Apple Care, and they sent a technician here (twice – because he didn’t have the right part the first time) to fix it. For free!

When a Dell customer has a problem, they’re routed to an outsourced customer “service” rep in India, who has been given poor training, may not speak English well, and is forced to rely on a script. I know of one instance (and could easily get more) in which a Dell rep talked a customer through “fixing” her computer. At the end, she said, “OK, where are my files?” They were gone. She’d just deleted them!

Why not encourage Dell owners to talk to each other? Have a forum to discuss problems, work-arounds, and new updates. Have executives hang out and answer questions.

Post software documentation written in plain English (have you seen Microsoft’s online documentation? It’s unintelligible). Offer special upgrades for higher quality tech support. Or heck, just offer the best tech support. Have it stand out, be so remarkable people talk about it.