Fewer Complaints Are Not Better


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Most call centers are pressured to “get calls down and reduce talk time”. Time spent on calls is not viewed as investment but simply cost. This webinar builds on the blog and service myths paper and focuses on the silent majority of customers who are unhappy but never complain and show the need and benefit of an effective response/contact management support system. For every incremental dollar invested in handling calls from unhappy or befuddled customers, the company makes three to ten dollars in incremental revenue plus fosters positive word of mouth (WOM) where negative WOM existed in the past. This case compels both CFOs and CMOs to rethink their view of service.

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Fewer Complaints Are Not Better

  1. Fewer Complaints Are Not Better Creating an Aggressive Customer Service System With John Goodman
  2. AGENDA 1. Big Ideas from Strategic Customer Service 2. Getting Your CFO Onboard 3. Creating an Aggressive Customer Service System 4. 45Sec.com Example 5. The Advantages 6. 9 Steps on Getting Started 5 Minutes Introductions 45 Minutes Webinar 10 Minutes Questions
  3. TODAY’S SPEAKER John Goodman Vice Chairman of Customer Care Measurement and Consulting
  4. Formula for Maximizing Customer Experience
  5. 5 Big Ideas from Strategic Customer Service
  6. Big Idea #1 Staff doesn’t cause most customer dissatisfaction… Sales, products, processes and customers do.
  7. Big Idea #2 It is cheaper to give great service than just good service. The revenue payoff is 10-20 times the cost.
  8. Big Idea #3 People are still paramount. Make the front line successful with flexibility and clear explanations.
  9. Big Idea #4 Deliver technology that customers will enjoy. Delivering psychic pizza via any channel.
  10. Big Idea #5 Sensibly create remarkable delight.
  11. Basic Tip of the Iceberg  Multiplier is ratio of complaints received to problems in market  Ratio to manager can vary from 1:20 to 1:200  Causes – Effort – Hopelessness – Retribution – Where 1-2% Complain to Manufacturer 10-25% Complain to Local Store or Channel 75% Do Not Complain Consumers Who Experience a Quality Problem…
  12. 12 Understand the Causes of Customer Dissatisfaction - Fails to follow policy The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes* Customer 20%-30% Employee 20% -Wrong expectations - Customer error -Fails to follow policy -Attitude Company 40%-60% - Products and services don’t meet expectations - Marketing miscommunication - Broken processes Poorly designed products, processes, and marketing create most unmet expectations. Customer expectations must be set to avoid problems and surprises. At least 30% of contacts are preventable
  13. Show Unvoiced Complaints Are Costly Current situation
  14. With aggressive complaint solicitation you recoup much of the revenue Show Unvoiced Complaints Are Costly It costs five times as much to win a new customer as to keep one!
  15. Getting Your CFO Onboard
  16. Get CFO Support by Highlighting Non-complaints (example behavioral data) I Question/problem experience II Contact behavior III Contact handling Customers No Question/ problem experience 80% Question/ problem experience 20% IV Market impact Non- contactors 75% Satisfied1 50% Mollified2 30% % Definitely Will Recommend 69% 39% 74% 42% 32% Dissatisfied3 20% Word of Mouth** --- 2.9 1.7 4.4 5.5 % Definitely Will Keep Purchasing 82% 42% 90% 42% 22% % Very Satisfied with ABC 81% 40% 82% 52% 35% Contactors 25%
  17. Getting the Resources: Quantify The Revenue Risk Of The Status Quo x xx = = = = = 2,500 3,000 3,000 37,500 46,000Total Customers At Risk Demonstrating financial impact with the CFO, CMO and the General Counsel Three strategies: Prevention, Solicitation of Complaints and Improved Response At $1,000 per customer, $46,000,000 at risk
  18. Quantify The Revenue Payoff of Increased Resolution Move resolution from 50% to 70% Net enhanced bottom line of $3,500,000 with no more calls At $1,000 per customer, $42,500,000 at risk
  19. Quantify The Revenue Payoff of Increased Accessibility and Resolution Move complaint rate from 25% to 40% and resolution from 50% to 70% @ $20/add’l call Net enhanced bottom line of $4.8 MM in revenue and $1.2 MM gross profit even allowing for 30,000 more calls at cost of $600,000 At $1,000 per customer, $41,200,000 at risk
  20. ROI Calculation in Detail • • • • •
  21. Objective: Fulfill Customer Expectations  No unpleasant surprises  If trouble encountered – Accessibility – not average speed of answer up to a point, hours of operation – weekend monitoring of SM – Taking ownership, apology – Clear, believable, confident explanation – Creating an emotional connection rather than just courtesy – Money is often not the best solution
  22. Creating an Aggressive Service System
  23. Creating an Aggressive Service System 1. Assure capability for resolution 2. Surface problems as soon as they occur
  24. Causes of Dissatisfaction or Escalation  Lack of flexibility due to lack of authority  Lack of knowledge – training or access to information  Know policy but cannot explain and defend it  Explains policy from company perspective but shows no interest in customer perspective  Lack of empathy  Lack of confidence in process & internal partners
  25. Assure capability for resolution • Authority & Flexibility – flexible solution spaces • Information – Who is customer – What are circumstances • Capability to take action – includes partners with SLAs • Incentives – recognition • Time for emotional connection and education make transaction memorable and remarkable
  26. Surface the problems immediately Place message and channel in front of customers just when they need it (but you need to be open) – Homepage & FAQs – Notices and labels – Signature block – Invoices – Notice of process failures – or deliver psychic pizza
  27. Message that addresses barriers • No hassle – minimum of information – login and passwords are barriers • Will do no good – we want to hear • Fear of retribution – safe place to complain and lack of defensiveness – on signature block • All channels available almost all the time and ease of use – channel hopping is facilitated elaine
  28. 45Sec.com Example
  29. 45Sec.com: Innovation Example The consumer sees the invitation for feedback on a sign and scans the QR code.
  30. They touch “record” and give the local manager a 45- second positive or negative feedback message. 45Sec.com: Innovation Example
  31. Advantages of Universal Reps with Little or No Routing Advantages  Little need for complex IVR – easier to communicate where to go for help  Economies of scale – all reps can handle all calls – 15% less reps  CSRs have call to call variety  Career ladder via certification Disadvantages  Need for more highly trained reps – training 30-40% longer, OR much more effective knowledge base  Need for more detailed, efficient knowledge base  Must train everyone on all updates so more time devoted to training – not cost effective unless very stable staff
  32. Advantages of Skills Based Routing to Specialists          
  33. 9 Steps on Getting Started
  34. Getting Started Step # 1 Identify value of the customer and cost of winning a new one
  35. Getting Started Step # 2 Have your CSRs ask 100 customers if they encounter problems that they have not mentioned or complained about
  36. Getting Started Step # 3 Ask CRS about grumbles an gripes they hear as well as issues that they have difficulty handling
  37. Getting Started Step # 4 Make the case to marketing and finance to solicit complaints
  38. Getting Started Step # 5   
  39. Getting Started Step # 6 Empower one team by issue – blanket empowerment does NOT work
  40. Getting Started Step # 7 Monitor and coach intensively and celebrate improved expertise
  41. Getting Started Step # 8 Aggressively solicit complaints to a small set of customers to determine how big the iceberg is and what kind of issues you’ll receive
  42. Getting Started Step # 9
  43. Summary  Few complaints may mean a large unvoiced dissatisfaction  More calls is better than less calls when they are from customers with problems  You can almost always retain a customer for less than they are worth and less than you would pay to get a new one  A prerequisite is fixing your response process to satisfy most callers.  Pilot test the aggressive approach before rolling it out
  44. This webinar is outlined in detail in: “Strategic Customer Service” For package of articles or questions: jgoodman@customercaremc.com
  45. Click here to view the webinar recording!