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High Priority!
July 2001
 

Rich Tehrani Avoiding Customer Freefall

BY RICH TEHRANI
GROUP EDITOR-IN-CHIEF, TMC


If you have been a regular reader of this column, you know that I spend a lot of time in airports. As we all know, air travel has become a series of delays, cancellations and general frustrations. Many times, I wish I could call Scotty to beam me up and send me to my destination. But, as the transporter is still in the realm of science fiction, I am stuck like the rest of you, a helpless victim of the current air transportation system. What really bothers me though, is the fact that most airlines seem to take it for granted that this is the way things are, and do little to improve their customer service. I don't even want to tally up the hours I have lost sitting in airports, waiting for my flight to be called, with little to no information about when the flight will take off or the reason for the delay or cancellation. I can't help thinking that if other companies ran their businesses like most airlines, without any apparent regard to the wants and needs of their customers, they would be out of business faster than ice cream melts on a summer day in Death Valley.

I know the airlines are an easy target and many of their problems can be traced to the inadequacies of the air transportation infrastructure, but they provide an apt metaphor for poor customer service. I have seen the impact of such poor service at other enterprises, where customers bail out for the competition without a second thought (a practice which has been enhanced by the ease of finding the competition with a bit of Web surfing). I have seen survey after survey stating that the number one reason people show long-term loyalty to a company is the quality of its service.

I can hear you now, saying, "But Rich, in this slowing economy, with budgets being slashed right and left, I can't afford to improve my customer service." The truth is, you can't afford not to, or your customers will be bailing out on you. To help you avoid parachuting customers, I have compiled the following common sense tips that should help you keep them coming back for more.

Have a realistic business plan. I know this sounds like a no-brainer, but I have seen many companies that seem to be going in too many different directions at once (mainly backwards) for lack of a business plan with realistic goals, phased implementation steps or the means to execute it, or, having a business plan with unrealistic goals, no implementation schedule and insufficient/no resources or infrastructure to support a realistic plan. Keep your business plan flexible, because change is the only constant in life. Failure to recognize the dynamics of your market will be your undoing.

Don't micromanage. While your business may have started small, continued growth and expansion will lead to new problems. Keep in mind that as your business grows, you will have to delegate, because micromanagement will only lead to the slowing down and eventual stoppage of all work processes.

Refine internal processes. In slow times, many companies find they have employees whose duties have lightened. If possible, earmark some of these employees to find ways to do things in a better and more streamlined manner. Have you always wanted to overhaul your accounting procedures? Now is the time. Have you wished, in the past, you had time to train your entire marketing department on PowerPoint to save fees on outsourcing? Do it now.

Personnel. Provide your employees with proper training, performance review and incentives, as this will pay off in the long run. Don't hire people with limited skill-sets and who cannot grow with the demands and opportunities of your business. Always treat those you do hire with respect and let them know you appreciate their contributions. Encourage innovative thinking within the organization -- you never know who may come up with the next great idea.

Nightmare on Wall Street. Don't pay too much attention to stock prices. It will just drive a reasonable person to drink. Now is the time to focus on your own back yard, not the entire planet.

Don't invest in technology for technology's sake. Just because a new technology comes along and promises great productivity gains and quick ROI, don't fall for it hook, line and sinker. Examine it closely as to whether or not it is truly applicable to your business. Don't get caught in techno-jealousy in a spiraling, keeping-up-with-the-Joneses, our-competition-has-it-so-we-must-need-it mentality. Strike a balance between spending loads of money on possibly unnecessary or ineffective new technologies, and not laying out any capital for new technologies at all. Many companies feel that the more money they throw at technology, the more profitability they will enjoy. This attitude is particularly prevalent in times of economic boom. Economic slowdowns are times to carefully evaluate which technologies to buy, which systems best fit your company's needs and which vendors will give you exactly what you need and want. Take the time to read and learn before you buy. On the other hand, many companies put a stop to any and all technology purchases during slowdowns. This is a risky move, as not keeping up with competitors who have made judicious technology investments means that when the economy does turn around, catching up will be difficult, if not impossible.

Explore technology options. If you think that many technologies are just beyond your means, look into the options of service providers. There are many reliable technology partners now who will provide equipment, network services, data services, telephony services, e-mail management, live chat, CRM, teleservices, campaign management and contact center management and personnel. This model allows you to adapt and expand or contract as customer demand waxes or wanes.

Live help. Don't pull the ability for customers dealing with your contact center to contact live help. An IVR or FAQ list is not a human, and never will be. Look at it this way: if a potential customer is browsing your site or calling your order line, there is a good chance that he or she will become an existing, and possibly repeat, customer. Don't scare the customers away by not providing them with the information they need when they need it.

Shipping options. Don't try and save money by downgrading your shipping methods. You may not know what happens to your products when you send them out the door with a delivery company, but your customers surely do. If existing customers perceive a weakening in your shipping policies, they may cease to be customers. If new customers aren't pleased with the manner and time frame in which their orders were shipped, they may shop around for a better deal. Consider adding a cheaper shipping option to the choices a customer has so he or she can SELECT that money-saving mode, but be open and up-front about it.

Returns. Maintain a good returns policy, regardless of how tempted you are to tighten your restrictions on returns. Try not to look at returns as lost sales, but as a gesture of good will that will encourage future sales.

Web-based training. Consider using Web-based training for contact center agents. Many computer-based training programs today can be done in fits and spurts during an agent's downtime, and you need not pull agents off the contact center floor for a full day or half day for classroom training, helping you keep the contact center staffed and ready. Additionally, agents who have used Web-based training report that they actually prefer its interactive nature to long, static lectures in a conference room.

Resist Web-site dabbling. Have you gotten your company's Web site the way you want it and is it serving your customers' needs? Then leave it alone...don't feel you have to overhaul your Web site four times a year in the same manner Martha Stewart changes her bathroom's color scheme. If it works, leave it alone. Your customers only get annoyed when they have to re-learn your site all over again every few months.

Provide integrated channels of communications. Depending on the urgency of the problem, their habits and where they might be at the time, your customers will contact you through various channels. Make sure that if they call, e-mail, fax or log onto your Web site to buy or pose a question, all their previous contacts are available for easy reference by whomever is helping that customer. Making customers repeat basic information or transferring them from person to person (or IVR menu to IVR menu) without resolving their problems are sure ways to send them heading for the exits.

Personalize the relationship. No one likes to be just another name on another list or just another call in queue. Give your customers the tools to let you know when and how they want to be contacted, what they are interested in and the option to be notified about things that are relevant to them. Your customer contact systems provide a wealth of information about your customers. Learn to use their reporting and analytics tools to the fullest, not just for marketing, but also as aids to providing better service. Develop the acumen to deliver the right message at the right time with a personal touch.

And last, but of paramount importance:

Always listen to your customers. Remember they have common sense, too, and they will let you know what your problems are faster than any chart, spreadsheet or consultant. Not building a responsive customer service and sales support organization is the first step on the road to going out of business. By listening to what your customers are asking, and responding promptly and properly to their concerns, you begin the long road of building a trusting and lasting relationship.

Sincerely,

Rich Tehrani
Group Publisher
Group Editor-In-Chief

[ Return To The July 2001 Table Of Contents ]


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