Better Customer Service Through Transparency, Tribes, and Talent

I confess that I have a warm spot in my heart for customer service operations. It is probably because I met my wife of 29.5 years when she and I were on the customer service phones at the Polaroid Corporation. As an old phone jockey, it is apparent to me that the world of customer service is transforming. If we look back at history, we can see that the central tendency of consumer businesses is to move more and more function to the end consumer and to provide them more visibility to the availability of the product or service. As the phone grew in this country as a consumer device, clever pundits predicted that in order to meet the emerging demand for phone calls, the entire country would have to become telephone operators, and that is exactly what we are: We dial our own service. Likewise, when Michael J Cullen opened his first King Kullen store in Jamaica, Queens with 6,000 square feet, on August 4, 1930 with the wonderful catch phrase, “Pile it High, Sell it Low,” he ushered in the world of supermarket self-service at low prices. When they can, firms let customers roll their own.

Today, technology is enabling new capabilities and I see three trends which are recreating customer service in a new, more responsive, and economically efficient manner: transparency, tribes, and talent.

Transparency is best exemplified by Federal Express’s efforts over the years. They were among the first companies to “expose” their internal systems so that not only could the customer schedule pick-ups, print labels, and manage his account, but he could also see the same level of detail the firm had about the location of his shipment. Many firms could benefit by letting customers see where their product or service truly is. BMW allows people who have configured and ordered a Mini Cooper to check the status of the order, and see it location on the high seas as it is shipped across the Atlantic. So what? Well, just think about how the dynamic with your cable company would change if you could actually see if the service truck was on its way to your house. It certainly would change the attitude between the customer and the company. Heck, even the government enables you to track tagged polar bears!

Seth Godin’s book on Tribes talks about groups of people who are passionate about a topic — and those firms that are great at harnessing tribes change the nature of customer service. Dell famously converted an angry tribe into a happier one. There are tribes ready to be released about any product or service. There is a tribe who cares about airline travel; there’s one that feels passionately about the Porsche; another that obsesses over flat screen TVs. Those companies who have bad customer service are attacked by the tribe. Those who are good at involve the tribe in creating solutions for other customers. As Seth points out, tribes need to be led.

Turning to the third point, I believe unlocking talent is critical to the customer experience. (Godin talks about some of these issues under the term “tribe” but I wanted to separate talent out from tribe.) Let’s face it, most of the content that companies put out about how to use their product or service is often terminally boring, or disconnected to the real audience. Lauren Luke doesn’t have that problem. Who is Lauren Luke you ask? She has over 300,000 subscribers for her YouTube video tutorials on makeup. She has a personality and approach which sings on the small screen, and the YouTube format. The formal star-making machinery of any cosmetics company would never have found this woman; she’s not a famous actress or a model, nor does she fit some other spokesperson stereotype. Yet now she is one of the most well-known make up artists in the world. Talented users can create content that is engaging and useful — sometimes, as in Luke’s case, more engaging and more useful than the company’s own content. There is no reason that my local cable company could not have a contest for the best user-generated content on how to set up a new cable box and program the remote. Some would be fun, others clinical, and with the right contest-like structure, the end users will create something so much more engaging than any internal communications group could generate.

The general message is very clear — open up; involve your audience in crafting solutions as well as the information about your firm’s offers to other customers. The economics of this type of customer care are superior to anything that can be done with internal resources alone. When I did an analysis of a customer service organization at IBM many years ago, the codification of solutions into a knowledge base shifted first call resolution from less than 60% to over 90%. Customers were happier. The technical staff could spend their time on new products instead of chasing down customer problems. What’s not to like?

The future will be more connected, with more ability for people to share their impressions, stories and advice. In an ever-more crowded information market, the natural tendency will be for those people who lead the tribes to become important influencers. Those who generate great new content will be the market movers. Isn’t it time to get involved in this emerging customer service structure now — while there is still time to build a reputation based on “earned media”?

Metrics firm comScore released some new quarterly mobile data that shows strong growth for Android handsets in the US and an increase in mobile web usage:

Picture 124

RIM showed modest growth while the iPhone’s growth, according to these figures, flattened. Meanwhile WinMo and Palm lost ground.

Of course with the advent of Windows Mobile 7 and the fact that it’s not shipping until Q4, we should see Microsoft’s current mobile OS continue to suffer declines as users either update with other platforms or wait for the new Windows 7 handsets.

Picture 125

The numbers above basically translate into just over 70 million people accessing the mobile internet with varying degrees of frequency. By comparison 158 million or more are on SMS and just over 198 million are PC-internet users in the US.

Source: http://searchengineland.com/comscore-android-shows-strength-as-mobile-web-usage-grows-37777

By Brendan ReganAugust 11th, 2009

I’m not gonna lie…what you’re about to read was inspired by a real-life online shopping experience. I won’t mention the guilty site, but I’ll say they sell clothing and jewelry to young urbanites.

As I relate the following three eCommerce mishaps, be thinking about whether you can eradicate all of them from your business by the time the “Holiday Rush” hits. ALL are preventable, if you start today and take one item at a time.

Let’s start at the “precipitating event;” the spark that lit my desire to shop online…

1. An email with a promo code arrived. w00t! They paid attention to past purchases, and sent me a great promotion: 10% off a brand I’ve purchased before, and free shipping if the order exceeds a certain amount.

How They’re Losing Sales: Despite not mentioning an expiration date for the promo code, it was expired by the time I reached checkout. I’m notoriously slow for opening emails from online retailers, but I bet I’m not alone. Creating a sense of urgency with an expiration date is fine, but remember that shoppers sometimes go weeks without going through their personal email accounts to read your promo codes.

And now it’s Customer Service’s turn…

2. When the promo code came up as expired, I was understandably disappointed. I’d just spent a fair amount of my weekend building up enough value in my shopping cart to qualify for the free shipping (Yes, I’m cheap.) My credit card was out of my wallet. So, I clicked the live chat in the cart to see if they’d extend the promo code, or give me an equivalent one.

How They’re Losing Sales: The live chat agent, while polite and earnest, was not able to do anything to help me (be a cheapskate). They weren’t empowered by their employer to get creative and save me from abandoning my cart. They suggested I call the “real” Customer Service during regular M-F business hours. So my guess is that the live chat is being outsourced, which is fine, but if they aren’t empowered to save sales, they’re probably not giving good ROI.

Now stepping up to the plate, Technology…

3. I came back the next day with the intention of calling the retailer and trying to get them to extend the promo code or give me the equivalent deal. So, I returned to the site and clicked “My Cart” to review what I’d put in there, and have it on-screen when I called.

How They’re Losing Sales: They didn’t save my cart! So many sites are saving cart items via cookie that I assumed my items would be there the following day or week. So now I’m definitely not going to re-build my cart AND call them to try and negotiate the promo code. I’m going to just repress the whole memory…maybe I’ll even forget the retailer’s brand in the process!

These 3 blunders may seem unconnected from a business perspective, but from a buyer perspective, they were all part of a persuasion scenario that broke down and turned a VERY motivated shopper into a lost sale.

I do like the site, and hope they can address these issues and stay in business. But they and others will have a very painful holiday sales season if they don’t treat the disparate parts as a unified buying experience that must be nearly flawless to be profitable.

If ever a retailer could get away with having exceptional cross-selling and up-selling functionality, yet provide a new visitor checkout process and web forms that break many usability rules, Amazon is certainly one of them. On the other hand one of Amazon’s competitors, The Book Depository, certainly appears to focus more on providing better usability throughout the buying journey, especially for new customers.

Read more

Jared Spool’s Revealing Design Treasures from The Amazon presentation at An Event Apart in Seattle highlighted some great design lessons from Amazon’s Web site.

Find the summary of the presentation here.

Shopping attitudes vary across Europe. Retailers must tailor their online offers to the needs of target segments

Retail sales in Europe have been hit hard by the economic crisis, but as retailers struggle to navigate through the storm, they shouldn’t lose sight of the region’s longer-term shopping trends. Online sales have been growing there—rising 31 percent across France, Germany, Italy, the Netherlands, and the United Kingdom in 2007, according to the latest available aggregate data. Some signs indicate that Internet sales will continue to grow during the recession: last December, for example, UK online sales were up by 30 percent, compared with those of the previous year—even as sales in stores fell by 1.4 percent, British Retail Consortium figures show.

Read more in McKinsey Quarterly

Good post from the blog of Zeus Jones

This post is about how an aspect of internal operations that has been made transparent to customers and in doing so has become a driver of loyalty or additional business.

Read More

Neilsen has a really interesting report out covering the online landscape. I highly recommend looking at it. I found it as valuable as the McCann Social Media Wave 3.0 study done last year.

The study covers the obvious shift in audience we’re all witnessing in front of our eyes. Newspapers are evaporating and social media sites are exploding.

Main conclusions:

  1. Online web usage is getting a longer tail – McCann uncovered more website categories growing in popularity
  2. Video and social media have the steepest growth curves
  3. Long form video is growing
  4. Mobile internet usage is exploding

Read More

Interesting post on Social Media

Social media has only just taken off, says Forrester analyst Jeremiah Owyang — and his “Future of the Social Web” report says social networks and marketers will have to change their strategies. “Bad things will happen,” he says.

Read more

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