It’s All About Service
Good customer service is at the heart of any business. It always
has been, but customer service is even more important today, since
on the Web it’s so easy for people to find and connect with your
competitors. Your competitors aren’t just local any more either; even
small businesses can offer their wares to the global community. This
evolution in the customer relationship has even led to changes in
terminology. It’s really the same thing, but some people go so far as
to refer to “customer service” as “customer care.”
Whatever you call it, customer service is a key element in building
customer loyalty, and customer loyalty is what underlies repeat
business. Customer loyalty is about establishing a relationship, which
is what happens when businesses listen and engage in “conversations”
with their customers. There are real bottom-line impacts here
– acquiring a new customer is much more expensive then selling to an
existing customer.
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Customer loyalty is also a long-term proposition. Promotions and
pricing discounts may bring in new customers, but repeat business is a
function of how well the customers were served. A Purdue University
study found that 92% of U.S. consumers base their opinion of a
company on the quality of service. The same study showed
that 63% of consumers will go elsewhere if they have a negative
service experience.1
Meeting Expectations
Every customer touch point must be designed to create value,
and every chance to interact with a customer is important. Every
interaction can either strengthen the customer relationship, or weaken
it by making customers feel frustrated. That’s why it’s important to
develop an integrated view of customer interactions (which includes
your Web site, email, live support and in-person contacts). In a
business transaction, no one likes surprises. Because of the Web,
customers are coming to expect real-time information that can be
accessed 24x7. Customers want to know the status of their orders,
the location of their shipments and the expected dates of delivery.
Email can be a great tool for keeping customers informed, but every
email should also provide the option of speaking to a live customer
rep. If you only communicate with your customers electronically, it will
be much harder to develop a solid, long-lasting relationship.
The Web is getting better and better at delivering an experience
that’s personalized for each individual. Web applications and Web 2.0
technologies are making customer information more readily accessible.
Data integration tools can pull together past purchases, identify buying
patterns and recognize personal preferences, thereby assembling
the framework for a very targeted sales campaign. This kind of
personalization also contributes to customer loyalty, in the same way
it once did for neighborhood shopping. Everyone likes to visit a place
where “everybody knows your name.”
Your Web site is an important component in your overall service
program, since it serves as your virtual “front office.” One study
found that 74% of consumers “regularly or occasionally” conduct online
research before making purchases offline.2 So even if you don’t
actually sell through the Web, your site should be easy to navigate,
easy to understand, and provide multiple communication options
(such as live chat, opt-in email lists and feedback submission forms).
It’s even possible to provide an “Extranet,” a portal through
which registered customers can sign in to gain access to special,
personalized content.
Your Web site can be an invaluable tool for understanding how
your customers think. You can use it to conduct regular customer
satisfaction surveys, or allow customers to post comments and product
suggestions. Some companies provide full-blown discussion forums
in which customers answer the questions asked by other customers.
That provides a kind of customer-support function without drawing
on your own resources. Keeping an eye on these candid customer
conservations is a great way to gain insight into how people really feel
about your offerings.
Tips for SuccessCallout 3
It’s important to establish some mechanism for sharing customer
data across the entire company. Data sharing can be low-tech (with
a written customer log) or high-tech (with data-sharing applications).
However it’s implemented, data sharing is what will let your company
understand each customer, and speak with a single voice. Customers
want to feel that your company understands them, and you want the
relationship to be with the company, and not just with an individual
sales rep.
It’s also important to pay special attention to issue resolution. Resolve
issues as quickly as possible, and if it can’t be quick, be sure to keep
the customer informed throughout the process. Consider a live-chat
application; it can let customers ask questions and gather information,
the way they would in a retail store. Studies have shown that
customers who feel a problem was handled well are actually more
loyal than those who never had a problem in the first place.
Despite the Web, some customers still prefer a telephone contact;
most will at least want the option. Every time one of your employees
speaks with a customer, it will help or hurt the long-term relationship.
Customers who are on a first-name basis with a designated contact
point are happier and therefore more loyal. Be careful about
bottomless call routing systems and never-ending message loops;
these are key factors in customer dissatisfaction.
Loyalty is a matter of customer engagement, and that means making
the relationship a two-way conversation. Be sure that each touch
point exploits its potential to learn something about the customer. Be
aggressive about gathering feedback. On-line surveys can be useful
here. Do direct follow-up calls to find out how your customers feel
about your products or services.
Always add a personal touch, even off the Web. A person’s name
always catches their attention; people can pick out the sound of
their own name even in a noisy room. Interestingly enough, research
at Cornell found that waiters and waitresses received bigger tips
when they addressed customers by name.3 Some retail stores are
capitalizing on the power of personalization, instructing their sales
staff to make note of the name on a customer’s credit card, so they
can say “Thank you, Ms. Jones.”
In Closing
Many things have changed, but some things stay the same. Today’s
technology provides new ways to deliver on customer expectations,
even for small to mid-sized companies. The expectations themselves,
though, are the same ones customers have always had. Customers
want to be served well, and treated with respect.
Through the intelligent application of affordable, Web-based
technologies, even small companies can deliver a customer experience
that is on par with some of the world’s largest enterprises. It’s another
example of how the Web has leveled the playing field in the world
of business.
Sources
1. http://phx.corporate-ir.net/phoenix.zhtml?c=113058&p=irolnewsArti
cle&ID=358361&highlight=
2. www.bigresearch.com
3. http://people.cornell.edu/pages/wml3/pdf/megatips.pdf
For more information contact your AT&T Representative or visit us at
www.att.com/business.