The document outlines a webinar on creating an aggressive customer service system. It discusses 9 steps for getting started, including identifying the value of customers, empowering customer service teams to resolve issues, and aggressively soliciting customer complaints to uncover problems. The webinar argues that fewer complaints does not necessarily mean better customer satisfaction, and that retaining existing customers is cheaper than acquiring new ones. It promotes fixing response processes, giving customer service representatives the ability to resolve issues, and piloting an aggressive approach to customer service.
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
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
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!
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
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
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
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
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
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