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E-newsletter Archives » October 2008

Welcome to the The Marketing Source e-newsletter! Our goal is to provide you with real-world marketing tips.If you have any ideas for articles, please send them along.

Don't be Caught by Scary Tales of Your Customer Service

tunnel vision

We all have too many tales to tell of terrible service. Our stories are like Halloween spooky stories that get better (or more horrendous) with each retelling. Unfortunately, too many customer service stories are true!

In this day and age we encounter poor customer service so often that we have come to expect it. After all, how long has it been since you were last caught in an endless voice mail loop unable to find a real live person? Did you complain? What about the last time you traveled? Were you treated well? If your last trip was like mine, I'm guessing your answer is NO. How long did you wait in the grocery store line? What happened when you called your insurance company about a claim? I know your answers, because I've lived those experiences too!

So if we are all so frustrated by customer service, why don't we do more to fix the service we provide to OUR own customers? After all, it's far more expensive to capture a new customer than to keep an old one. And in these economic times, you can't afford to let even one customer slip away.

The reality is that most small businesses (and big ones too) don't go nearly far enough with service programs. Knock-out customer service extends far beyond immediate problem solving to changing the system so problems don't happen again and again. Even better, a true customer service program helps build loyalty and customer good will that keeps your customers coming back.

So take a time out and take a hard look at what your company is doing on the service front.

Solve the problem
Everyone makes mistakes. And you can capture a customer's loyalty for life by solving a problem quickly and effectively. But that means you need a front line that is able to actually solve a problem. Your front line should be empowered to fix the situation at hand. Your phone system and Website should be "complaint friendly" too so customers have an easy way to let you know there is a problem. And, most importantly your system should include a check to see if the customer is satisfied.

Push the power down the line
Your staff is in the line of fire. Don't tie their hands with endless policies and procedures. Give them the freedom, tools and most importantly training to fix the problem, right there, right then. Allow your staff to approve merchandise returns, provide gift cards (or other goodie) to send to customers with problems or simply connect the customer with a manager or the customer service person who can help.

Don't stop there: fix the system
Customers can get over one mistake, but they won't forgive you again. A recent Wall Street Journal article, Making the Most Of Customer Complaints advised, ". . . if a customer experiences a second failure of the same service, there is no recovery strategy that can work well. In all likelihood, that customer will be lost forever." So make sure you are implementing a culture that allows you and your staff to learn from mistakes. This will only happen if information from your front line customer service people quickly finds it way to management levels so that necessary fixes can be immediately institutionalized.

Collect your data
Who in your firm looks at the big picture - trends about how often a particular problem happens? How often? How does that information change what you do each and every day? The answers are a gold mine - but only if you collect them. Put some simple reporting system in place to track complaints and service issues, including what the problem was, what was done about it, who handled it and how satisfied the customer was with your resolution.

Build loyalty with rewards
Our favorite airlines give us frequent flyer miles, our favorite supermarkets give us discount cards and our favorite shoes stores provide frequent buyer cards. Do you feel appreciated? Are you really loyal to the companies providing those goodies? Too often, these rewards just aren't much of an incentive. Think bigger, and target your rewards to match what your customers want. (How do you know what they want? Ask. This is a great place for a little market research, even if it's informal. You could learn a lot by making a few phone calls to regular customers.) Sure, some people will respond to straightforward economic incentives. But you could offer points or discounts toward spa services and other luxuries for "pleasure shoppers." Provide exclusive benefits like private special events or concierge type services to customers motivated by privileges. Give access to streamlined services, like no-wait checkout lines or shortened transactions online, to customers who care most about efficiency.

Put on your customer hat and walk through your company's customer service system. Take a look at the trends of complaints and problems. Evaluate what you are doing to reward your valuable customers. We're betting you can find at least a few improvements that will help keep your customers coming back.

Still not sure about your customer service? We can help.

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