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.

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!