8. Contents
Introduction ix
Preface xi
CHAPTER 1: It’s all about Raving Fan creation 1
CHAPTER 2: Why is Customer Care a good investment - not just an
expense? 4
CHAPTER 3: What to call it? 6
CHAPTER 4: Fund it from Marketing 8
CHAPTER 5: Should we offshore Customer Service? 11
CHAPTER 6: The Tools of the trade 13
CHAPTER 7: If it doesn’t get measured - it doesn’t get done 16
CHAPTER 8: Raise the bar on people (always hire someone better
than whom you’re replacing) 18
CHAPTER 9: When to fire a customer (ever?) 20
CHAPTER 10: Customer feedback 22
CHAPTER 11: Social Media as a way to create great customer service 25
CHAPTER 12: Why your buying staff sometimes doesn’t listen and
will have 100 reasons why the customer is “wrong.” 27
CHAPTER 13: Paralysis by Analysis - don’t do it 29
9. CHAPTER 14: What’s the channel, Kenneth? Taking the order via
phone, store, web, chat, email, mobile, iPad, – does it matter how? 31
CHAPTER 15: Pervasiveness - Why Customer Care shouldn’t be rele-
gated to “just” the contact center 33
CHAPTER 16: Agent product training — why it makes a difference 35
CHAPTER 17: Use contests and spot awards 38
Conclusion 41
viii Contents
10. Introduction
In today’s commodity driven marketplace, where websites
enable (and sometimes encourage with new technologies) side-by-
side comparison of items, pricing, delivery speed, delivery cost,
etc., price is becoming less of a differentiator. One upon a time,
prior to the web, it was more cumbersome to seek out the best
price on a given product.
Today, finding the best price is just a few clicks away (some-
times competitors prices now even appear on your own website).
Eventually, even the sales tax advantage that many web businesses
today enjoy will go away once national legislation is passed. Once
that levels the playing field, price, sales tax, shipping costs…all will
be even (or very close to it).
So how do the great companies differentiate? How do we com-
pete in today’s marketplace where selection and price have become
more amorphous? The answer is the one area that has not (yet)
become commoditized: Customer Service. We can…because so
many companies are still lousy at it. There’s our opportunity.
This presentation talks in specifics about why it’s important to
fund customer service as a marketing investment – not an oper-
ating expense, what are the key elements of creating an environ-
11. ment that creates Raving Fans (aka repeat customers), and over 20
execution specifics to create great customer care as your marketing
differentiator.
x Introduction
12. Preface
The customer is always right - “even when you know damn well
that he’s wrong” or so said The Orvis Company’s modern founder
Leigh Perkins back in the 1960s. Google that phrase (the first part
only, please) and you’ll find thousands of references in support of
the concept.
No argument. As consumers, we all appreciate good customer
service – and have no trouble spotting poor service – when we get
it. This writing isn’t a debate on whether it’s important to provide
good customer service.
Lots of folks expound on the importance of customer service to
a business and consumers would be the first to agree. Zappos’
CEO Tony Hsieh certainly evangelizes the concept in Delivering
Happiness and Jim Collins in Good to Great talks about “the leap”
as well.
So assuming you believe that world class customer service is
required for your business….how do you pay for it? As CEO, how
do you justify the cost of 24 hour Live Chat to the Board? How do
you defend keeping your contact center open overnight with your
own skilled associates rather than farming it out to a 3rd party in
13. India? For that matter how do you justify running your own con-
tact center when lots of 3rd parties overseas will do it for less?
How do you support an extra body in the retail store in order to
handle returns more pleasantly after Christmas? What P&L basis
do you have for processing mail order returns and crediting cus-
tomers in 2 days rather than 7? How do you fend off the bean
counters when they come to and say “all those free replacements
you’re giving out are costing us a fortune.” How do the finances
look on your “try it or return it” program?
The fact is, management consultants left and right will point
out where your customer care is lacking. Where you need to
spend more. Where you need to be more customer engaging.
Or, another group of them (probably former CFOs) will be quick
to point out that you’re spending too much. That the EBITDA
can’t afford this much customer service “expense.”
Lots of writings such as Jeanne Bliss’s I love you more than my
dog” spend hundreds of quality pages outlining why customer
service is required for successful businesses of all kinds today.
But who’s explained how to finance this “expense”? Great to
layer on this cost in the name of The Customer, but at the end of
the day, the P&L has got to work. Is it doable? Can we create
Raving Fans with top-end customer service and still be profitable?
Is it overkill or is it require? Where do we draw the line in these
efforts?
That’s the subject of this writing. From my 30+ years in retail,
many of those at direct-to- consumer retailers, cataloguer, and
websites….I’m here to tell you without emotional arm waving in a
rational, finance-oriented way, how to practically make Raving
Fans (thank you Ken Blanchard) creation part of your profitable
business model.
xii Preface
14. It’s radical. Your CFO will shake his head. Your conservative
parent company might not buy in. But that’s ok. Somebody’s got
to be the Champion. You’ll know the practical secret and you’ll
succeed.
Here’s a hint: stop thinking of customer service as an expense.
It’s not. It’s an investment.
Do you (traditionally) think of marketing / advertising as an
expense? Maybe so, but I’d guess that your marketing spend (as a
percentage of sales) is a separate line from your customer service
and warehouse expenses. Stop doing that.
Countless marketing consultants will tell you it’s easier to retain
a customer, and to get a repeat sale from a customer, rather than
acquire new customers. So why do most companies spend an
inordinate amount of money in “marketing” attempting to acquire
new customers while being stingy on their customer service spend
to retain existing ones? Makes no sense, right?
Take some of that (new customer) marketing spend, slice it off
your traditional advertising budget, and spend it overtly (with joy
and excitement) not because you have to do it but because you
want to do it on existing customers.
Zappos does this. They consider their customer service their
marketing. Sending customers pizzas and flowers might be
extreme and unnecessary. Hsieh speaks to the game but doesn’t
give the game plan.
Here now is the inside, practical thought process and imple-
mentation steps behind top notch customer service and paying for
it profitably. Few companies have taken this leap. Yours can.
Preface xiii
16. CHAPTER 1
It’s all about Raving Fan creation
In his 1993 book Raving Fans: A Revolutionary Approach To
Customer Service Ken Blanchard couldn’t have foreseen the rise
of online “Social Media” as we know it today. Yet the concept is
even more valuable today to our story than it ever was.
Today a huge number of product and services purchases are
made after a referral from a friend or an endorsement, or rating &
review of some sort. Traditional product marketing is changing
from a one way conversation where the marketer “advertises”
(throws spaghetti at a wall) and some consumers absorb. Now,
marketing is more a two way dialogue between marketer and
receptor.
Large consumer brand entities are making the marketing shift
moving large portions of their budgets away from traditional TV
and media advertising and into new opportunities to engage with
their customers. Nike, for example, is now spending more on
these 2-way conversation opportunities than ever before.
Given that old VO5 shampoo commercial where one friend told
another, and another, and another, we can easily see the power of a
17. referral. It’s not a stretch, then, to understand why it’s a good
investment to create not only someone who refers your product
warmly, but someone who raves about you to the next shampoo
head down the line.
Blanchard knew that creating Raving Fans was important to a
business, but the mechanics of how and why weren’t yet apparent.
Today they are. Raving Fans can forward your product to hun-
dreds (if not thousands) of recipients within a mouse click. (The
opposite is true: Piss someone off, and you risk losing validity in
the marketplace as well).
So creating a Raving fan (not just a plain old “fan”) has extra
importance and value to the success of a company. One could
argue that traditional 9-5 customer service can sometimes create
“fans.” But it’s that Raving fan that we want. For that we need the
go-the-extra-mile customer care (that costs more). But in today’s
ever connected world, the value of ratings, reviews, and the word
of mouth can make or break a company. Hence the importance of
creating Raving Fans.
Don’t just do the “least” amount of customer service necessary
to appease customers. Do the extra mile that will make them
Rave. In fact, since none of us are perfect, every customer care
group has daily situations where something went wrong.
If you approach this as a challenge rather than a problem, some
of the best, extreme, Raving Fans can come from customers who at
one point believed they were wronged by you, your product, or
your service. Give them everything you’ve got to turn them
around, be a great apologist, and they can turn into some of your
best evangelists.
Raving Fan creation should drive every element of your cus-
tomer care practice and spend. Raving Fan creation makes one
2 Raving Fan Creation
18. time customers into repeat customers. Raving Fan creation turns
prospects into new customers.
Raving Fan creation turns a losing situation into a winning
one. Raving Fan creation makes being a customer care representa-
tive fun. Raving Fan creation makes being a customer fun.
Raving Fan creation improves and expands your 12-month file.
Raving Fan creation improves the value of your company. Raving
Fan creation improves your bottom line. Raving Fan creation is an
investment in your customer.
And without customers, we have no reason to be here. Raving
Fan creation, in short, is a good marketing investment.
It’s all about Raving Fan creation 3
19. CHAPTER 2
Why is Customer Care a good investment
- not just an expense?
Why is Customer Service/care a good investment (rather than
being solely an unavoidable expense)?
In today’s commodity driven marketplace, where websites
enable (and encourage) side-by-side comparison of items, pricing,
delivery speed, delivery cost, etc., price is becoming less of a differ-
entiator.
Once up on a time, prior to the web, it was more cumbersome
to seek out the best price on a given product. Today, finding the
best price is just a few clicks away.
Eventually, even the sales tax advantage that many web busi-
nesses today enjoy will go away once national legislation is passed.
Once that levels the playing field, price, sales tax, shipping costs…
all will be even (or very close to it).
So how do the great companies differentiate? How do we com-
pete in today’s marketplace where selection and price have become
more amorphous? The answer is simple: We compete on Cus-
20. tomer Service. We can…because so many companies are still
lousy at it. There’s your opportunity.
Customer service is the differentiator. Be fantastic at it and
your customers will rave about you to others – versus the compet-
itor who has the same product and price. Be just so-so at it and
you remain in a price war with the guy down the street.
Creating Raving Fans through customer service and support is a
qualified marketing spend (versus expense) because it is your
secret sauce. It’s your differentiator to the competition. It’s where
you can shine while your competitor sinks.
Don’t believe me? Go and look at your competition’s policies,
hours, procedures, tools, — even their tone of voice – on their
websites.
Do they say you, as a customer “MUST DO THIS” in order to
be qualified for care? (Anyone who tells me, as a customer, I
MUST do something isn’t qualified to be a Raving Fan creator in
my book. Customers have choice, and they shouldn’t be told they
MUST do anything).
Do they give you multiple ways to solve a problem? Do they
make it easy? Do they make it fun? My bet is no.
There’s your opportunity. Be creative. Find ways to deliver and
delight your customer beyond what they were expecting. Your
competition isn’t doing it. Yet.
Why is Customer Care a good investment… 5
21. CHAPTER 3
What to call it?
I can’t tell you how many times I’ve argued with my teams
about what goes on the website header: “Customer Service”
(traditional) or “Customer Care” (new-fangled).
There was a period of time when it was trendy to call it “Cus-
tomer Care.” The story went that this phrase implied a higher
level of love for the customer and a higher level of attention. I.e.,
we “care” for our customers we don’t just “service” them. (The
word “service,” implying a somewhat lower standard of care).
Frankly I don’t care whether you call it “Customer Care,” “Cus-
tomer Service,” “Help,” or whatever. The semantics of the words
seem to be the argument more than the real point: That is, the type
of help you get when engaging with the company is of the highest
caliber.
I’m not impressed that one or the other of these terms is better.
If anything, I lean towards the most recognizable phraseology that
implores the highest level of click-through. For that: I personally
prefer “Customer Service” – only because every web user knows
what it means.
22. Most importantly, deliver. Go over and above in delivering.
I.e., don’t just be open “business hours.” Be open for Customer
Service/Care 24/7. Don’t just have Live Chat some hours of the
day. Have it all the time. Don’t have a long phone queue…answer
on the first ring.
These are the deeds — the proof-in-the-pudding – rather than
the words.
What to call it? 7
23. CHAPTER 4
Fund it from Marketing
Traditionally, customer service has been seen by companies as
an expense.
Well-managed companies are always on the lookout for run-
away expenses. Particularly when hard times hit, expenses are the
first areas to be reduced, cut, slashed, driven-down – you choose
your phraseology.
From the CFOs’ perspective: sales are good. Profits are good.
Expenses are bad.
In a traditional P&L, “Marketing” or “Advertising” tends to get
its own line. Sometimes it’s included within a company’s “oper-
ating expenses” – sometimes, not. In any case, marketing is usu-
ally viewed as an investment rather than expense.
In fact, one company I worked with actually called advertising/
marketing expenditures “Commercial Investment” to underline
the point.
24. In a traditional P&L customer service, warehouse operations,
store salaries, electricity, etc., are all viewed as “expenses” – and
subject to the “Cost Cutter.” (You know who s/he is, they’re the
author of those end-of-quarter emails that implore people to
reduce unnecessary expenses to make sure the bottom line comes
out as rosy as possible).
Since Raving Fan creation is our Prime Directive (thanks to
Gene Roddenbery) any “expense” we incur in doing that should be
treated as a marketing investment. Spend X; get Y, with a profit of
Z. That’s generally the marketing paradigm.
With customer care: Spend X (some amount of extra care), get
Y (turning them into a repeat customer and Raving Fan who will
evangelize you), with a profit of Z (higher number of repeat sales,
more referrals, healthier 12-month file).
Go ahead and plug in your numbers from your own P&L. It’s
simple math: Invest in your customers and they’ll come back to
you and spread the gospel.
Hsieh says Zappos spends “little” on traditional marketing. In
fact, they, like other retailers, do spend on advertising, but they
spend more than most on over-the-top customer care. They call
that “expense” their “marketing spend” and justify it in that way.
Indeed, Zappos’ growth and success has come largely from
WOM (word-of-mouth) marketing and their everyday use of
speedy and shipping. Zappos generally doesn’t discount its prod-
ucts – so it’s not about price for them (or for their customers).
Talk to Zappos customers and you hear Raving instantly.
Zappos has built their business on doing whatever it takes to create
Raving Fans, and funding that by calling it marketing.
Fund it from Marketing 9
25. Zappos has run at full tilt putting most of its eggs in this
bucket. I’d argue no need to go to that extreme, but a more bal-
anced investment approach between traditional advertising (to
attract new customers) and Raving Fans creation customer care (to
close sales and create repeat customers) is an easier and more pal-
atable approach for most companies.
Direct-to-consumer companies, by discipline, measure every-
thing (see that chapter). But social media, WOM marketing,
Raving Fan creation, etc. – are harder to associate an immediate
sale. So, it’s harder to justify the “expense.”
But it’s hard to argue with Zappos’ success making their cus-
tomer care expense their marketing spend. They didn’t try to
measure the immediate sales result of sending callers to a compet-
itor’s website when they don’t have the shoes in stock themselves.
Or sending someone flowers on their wedding day. Or pizzas.
They just believe.
They believe in the power of the Raving Fan, and the results are
clear: people go back to them over and over again. That’s the
payoff – er – the ROI – on their customer care investment.
10 Raving Fan Creation
26. CHAPTER 5
Should we offshore Customer Service?
I’m not a fan of “offshoring” contact centers to other coun-
tries.
Nothing against these countries, but the service simply is not
the same. True, cost is less. But your customers know that it’s not
“you” answering the call or chatting. The obsequious, ultra-polite
responses parterned with a lack of real compassion and empathy
about your situation makes such interactions annoying and a with-
drawal from the bank of customer care, rather than a deposit.
The move towards offshoring customer service operations
began – and gained steam in the recession — in an effort to reduce
expense. But remember, customer care isn’t an expense – it’s a
marketing investment. Given that viewpoint, by offshoring you
are investing on the cheap – and your customers know it.
What kind of investment is it when customers get frustrated
due to cultural and language differences? Our goal in our interac-
tions with our customers is to create Raving Fans. That won’t
happen with the offshore agent. We’ve all experienced that less
than satisfying conversation.
27. Offshoring will reduce – not enhance – the opportunity to turn
“customers” into Raving Fans. In the end, it’s not “cheaper”
because you’ll lose customers, create few Raving Fans, and won’t
increase sales.
Don’t do it. You’ll be sorry. And so will your customers.
12 Raving Fan Creation
28. CHAPTER 6
The Tools of the trade
In 1985 I was a lowly marketing intern at L.L. Bean but
remember heated discussions about the value (or expense) of the
newly instituted 800#.
They were in the throws of A/B testing some catalogs with the
new-fangled 800# against some catalogs with the standard 207-
Maine area code (toll call).
Arguments against the “tool” were some of the same we hear
today: A) it’s further expense, B) the customer will call anyhow
even without the 800# so why go to that expense, C) the telephone
and US Postal service has “always worked fine before” – why do
we need something new that will detract from the bottom line, etc.
Sound familiar?
Ultimately, clean A/B testing of mailings showed that the ver-
sions with the 800# delivered higher numbers of orders, better
conversion, and ultimately better profitability despite the perceived
additional expense. The investment of the 800# paid off. Of
course, toll-free numbers became industry standard in the U.S.,
and no serious catalogers today mails without one.
29. Substitute “800#” for any of the more recent tools (each of
which costs expense): How about: Web sites? Live chat, “Video
Chat,” Next generation Ratings & Reviews, User-Generated Con-
tent (photo and video postings), email response, CEO-email
response, Facebook monitoring, Tweeting, _________ (fill in the
blank). They all cost money, they all create an alternative engage-
ment model for customers, and many are still “unproven.”
Traditionally, marketers need “proof” that tools increase con-
version/sales (a la the 800# test). However, with customers
coming to us in multiple ways these days it’s getting a bitter harder
to calculate attribution with clarity.
Last touch? First touch? If someone got a catalog, went to the
website, called on the phone, live chatted (or any combination of
these), then ultimately placed their order…which tool “gets the
credit”? Hard to tell.
The veracity of the various new tools (and up and coming ones
that we haven’t even thought of yet) varies. Live chat, for example,
has high conversion rates (20% +) but only if the labor is managed
well. If not, it can be a poor investment (nee “runaway expense”)
that the bean counters want to kill. Fortunately skillful managers
and supervisors have always been the key to new technologies and
they go hand in hand.
There’s always a new “shiny object” threatening to capture your
attention and resources in web marketing, but when it comes to
customer engagement, since that’s going to be your most impor-
tant differentiator, and, since you’re now considering it a mar-
keting investment, you can give these tools a bit more benefit of
the doubt.
14 Raving Fan Creation
30. Surely they contribute to Raving Fan creation. And anything
we can do to go above and beyond and surprise and delight our
customers will cause them to come back.
Give customer engagement tools a whirl. Measure their impact
and conversion. But ultimately listen to your customers: If they
use the tools – they work. Period. If customers abandon them…
or don’t adopt them: move on.
The Tools of the trade 15
31. CHAPTER 7
If it doesn’t get measured - it doesn’t get
done
While I’m all for devoting marketing spend to customer
service, throwing money at a topic indiscriminately is never
good practice.
Even more so with regards to working with customers and
using engagement tools. The best way to manage any kind of mar-
keting spend is to deploy, measure, then deploy and measure
again. If you don’t measure a given topic – then it doesn’t get
done.
By “get done,” what I mean is: with measurement you know if
something works. If something works, then the proper response
should be: Spend more! If something isn’t working, then you
know to Cut! Spend less.
Measurement can be by statistics: I.e., conversion rate. Or it
can be by customer feedback: i.e., what percentage of the customer
traffic is successfully using a given tool.
32. No matter how you measure – do something. Don’t make
investment decisions by the seat of your pants. (You’ll always be
wrong some of the time; but worse, you’ll miss the opportunities to
expand on something you didn’t know was working).
If it doesn’t get measured - it doesn… 17
33. CHAPTER 8
Raise the bar on people (always hire
someone better than whom you’re
replacing)
You get what you pay for.
Nothing’s more true in terms of the front line personnel who
deal with our customers.
But it’s not always “just cash” that motivates. Rather, working
in an empowered environment, where they are charged with cre-
ating Raving Fans (rather than reducing their talk-time), does
wonders for retention.
Nonetheless, when attrition (or expansion) of your contact
center agents, retail store reps, or direct to consumer sales force
comes about (which it always does) use those opportunities not to
just replace with an equally warm body…but to raise the bar.
When I arrived as CEO at a sporting goods retailer, of the 45
contact center agents, only 20% had direct experience with any of
the three sports we specialized in. Really? It’s simply not that hard
to find people out on the street that are passionate about golf,
34. baseball and softball. The trick is holding out until you find those
passionate folks – who also are great people persons.
It’s a matter of setting priorities. Tell your HR person you
simply aren’t interested in candidates who don’t have experience
in the products you sell. Period. Raise the bar on the quality of
people you hire…hold out for the best. And make sure they have
real interest in what you do.
Here’s a golden rule on hiring: Always replace a departing
person with someone who’s at least two levels better than they
were. Not someone who’s “just as good.” But someone who’s
better. That way you’ll always be increasing the quality of the staff
who regularly touches your customer.
Why does this matter? Because these are the folks who are rep-
resenting your company. It’s like how the box is packed that is
shipped to the customer on an order. Why does it matter if it’s
presentable, it’s only a box of stuff? Because that box is the last
touch you will have with your customer. It’s the last thing they’ll
remember about your company.
Same thing with customer service or retail personnel: Your
company is being represented by them, is creating Raving Fans by
them, so it matters how good they are.
Hire the very best, always hire better, and empower them.
Won’t cost you any more. And will improve your bottom line
results, customer retention, and sales conversion.
Raise the bar on people (always hire someone… 19
35. CHAPTER 9
When to fire a customer (ever?)
I recently read in the paper that some pediatricians are “firing”
families who don’t believe in vaccinating their children.
They view it as too much of a risk to them, their staff, and other
patients in the waiting room to have those “customers” around.
They view it as a risk and blight on their operation.
While these families aren’t looking to necessarily to take
advantage of these pediatricians, my bet is you have customers
who do actively try to take advantage of your good will and efforts
to create Raving Fans.
Do they buy, use, then return items repeatedly? Do they ver-
bally abuse well-meaning agents on the phone? Do they not
respond to your efforts to satisfy their needs…then accuse you of
stonewalling them? Do they try to double, triple, and quadruple
dip on every promotion you run? Do they use your generous
exchange policy as a rental agreement to continually upgrade to
the latest product?
36. We all have some customers like that. While we hate to lose
sales and lose customers, at some point, it’s costing you real money
in resources, emotions, and wasted effort that could be applied to
other, well-meaning customers.
Fire ‘em. They’re a blight on your operation and no matter
what you do, they won’t turn into Raving Fans. (Of course, make
sure you’ve tried your darndest and there’s no other way out). Fire
the outliers rather than mold sub-standard customer service poli-
cies around them. Don’t manage to the exceptions.
“Mr. Customer: I’m so sorry that we haven’t been able to live up
to your expectations and meet your needs. I’d suggest you try
another resource for your future needs who might be better
equipped to handle your requirements.”
I’m sure the majority of your customers aren’t like this. But for
that small, tiny minority that takes up far too many resources and
never will be happy: don’t dwell. Move on.
When to fire a customer (ever?) 21
37. CHAPTER 10
Customer feedback
Pick up any three business advice books and chances are one
of the first things you’ll read is that as a leader it’s more impor-
tant to listen than to talk.
Substitute the word “leader” for “brand” or “retailer” and I’d
argue the same.
By nature, brands/retailers do a lot of talking. Whether that’s
via traditional TV, Radio or print advertising, or by a catalog or via
a website…that’s all “us” talking at “you.”
Social media has increased the amount of two-way communica-
tion. Nevertheless the vast majority of marketers’ efforts are
aimed at “talking at” our audiences.
With that much talking, we’ve got to aggressively work at lis-
tening. It’s generally hard for a marketer/retailer to listen because
we think we’re so smart. But just the act of listening will make you
smarter.
38. There are several different ways to listen to our customers
(aside from social media)…and I recommend doing them all. No
one method is a silver bullet, as customers will choose which fits
their style and needs. The wider the net you cast, the more input
you’ll get in return.
Here’s a laundry list:
· BizRate – free from ShopZilla if you participate in their
product feed. One of the best, low-cost, direct-feedback mecha-
nisms available from folks who have purchased.
· Survey Monkey (and other such services) – low cost ability to
create customized surveys. Better than doing it yourself because
they tabulate the results. Makes surveying your customers for
feedback a snap.
· Ratings & Reviews on your website. If you don’t have them,
it’s a requirement for doing business online.
· “Ask & Answer” (a product from Bazaar Voice) – customers
ask questions. The “community” answer. If not, your customer
service answers.
· “Stories” or Anecdotes – Your customers rely their experi-
ence with you in an adhoc manner on the telephone in email, in
live chat, or on the website.
· Live Chat transcripts – one of the most rich places to mine
customer feedback and pipe it back to your merchants and mar-
keters.
· Net Promoter Score – One question: Would you recommend
this store to a friend?
Customer feedback 23
39. Aside from these vendor-provided vehicles, (and there are
others) one of my favorite ways to solicit feedback is to simply
make it easy and ask for it via your website.
Create a page called: ABC COMPANY/we listen. On that
page, have your CEO ask for feedback and promise replies. You’ll
be surprised the honest and useful feedback you get.
As a CEO I monitored that feedback and occasionally jumped
in to the correspondence between an assistance and the cus-
tomers. A terrific way to stay in touch with your customers and
listen.
However you do it, make sure you make it easy for your cus-
tomers to reach back to the you and express their positives and
negatives. It’s rich fuel for turning them into Raving Fans.
24 Raving Fan Creation
40. CHAPTER 11
Social Media as a way to create great
customer service
There’s lots of angst and hand-wringing in the business media
these days about the meaning and role of social media – so I
won’t repeat those voluminous discussions and opinions here.
I’ll simply say in these days of various means of social media
development, social media is a source of two-way conversation
between a brand/retailer and its customers, so it can’t be ignored.
Lots of vendors and sources of places to spend marketing
money in social media. I’m not clear that any of it has been
“proven.”
So the best way to “handle” social media today?
1) Place a dedicated body (preferably someone who participates
normally in that space) in the role of social media spokesperson,
manager, whatever.
2) Throw a lot of spaghetti at the wall and see what sticks.
41. 3) Don’t spend a lot of money on programmatic vendors, etc.
4) Most important: do #1. Be visible in social media and be part
of the community. See what develops. When there are “com-
plaints” – your social media person will head them off. When
there are platitudes, s/he can acknowledge and thank the com-
munity for the feedback.
Social media is a great source of Raving Fans – or – Raving
Complainers. The complainers are prime opportunities to become
transformed into fans. But only if you’re “in the game.” Therefore
keep it simple: be in the game and be part of the conversation.
You can then be innovative from there.
Social media is not “the tool” for engagement. It’s simply an
enabler. Just like old fashioned communication itself.
26 Raving Fan Creation
42. CHAPTER 12
Why your buying staff sometimes doesn’t
listen and will have 100 reasons why the
customer is “wrong.”
Previously I’ve talked about the importance and methods of
listening to the customer and how that can help you create
Raving Fans.
Inevitably, some of what you hear, particularly product feed-
back, ends up in your buying staff’s hands. (If not, you should
ensure it does…).
The traditional response by professional buyers (who think they
know best what the customer wants, after all, that’s what they’re
paid to do) is to respond in a defensive manner.
I.e., “We thought about that and don’t agree.”
Or, customers repeatedly ask for specific basic information on
your website. Yet buyers repeatedly leave that out of their product
specs. Why? “everyone knows that.”
43. Well, perhaps you know that, Mr. Buyer, but assuming all of
your buyers are seasoned and experienced veterans is wishful
thinking — and wrong.
Another fallacy is discounting a comment because “we don’t see
that comment very often so its not important.” That neglects to
take into account the people that have the same issue but don’t
report it to us (most of them).
It’s tempting to a professional buyer to discount customer feed-
back. And, yes, not all customer feedback is actionable. But much
of it can be…if we listen in a receptive manner.
I’d challenge your product staff to view customer feedback as
gifts of gold: Not all of it spendable, but a lot of it potentially
viable.
Evaluate what you can, thanks the customer for all of it, and
execute what’s feasible. Resist the temptation to be defensive and
dismissive. Rather, grab hold of every customer nugget you can
get and along the way you’ll create some Raving Fans.
28 Raving Fan Creation
44. CHAPTER 13
Paralysis by Analysis - don’t do it
Traditional direct-to-consumer retailers (“catalogers”) have
long been experts at mining data from customer usage patterns
and buying habits.
“Data Warehouses” are standard tools in the direct industry
which allow marketers to segment their activities based upon what
they know about the customer. This use of analytics is robust and
a proven, solid way to run a business.
That traditional use of analytics from the “catalog business” has,
of course, migrated over to web-based businesses, where the data is
even richer because it’s gathered in real-time. There are hundreds
(if not more) of data points one could review, and large web
retailers tend to have entire departments dedicated to reading the
data, interpreting it, and reacting to it.
Same goes for customer service. “Talk Time” has been the age-
old KPI for call centers.
Traditionally, the goal has been to keep Talk Time to a certain
controlled number in order to control expenses. As I’ve argued
45. previously, I’d measure Talk Time differently – i.e., the more
chances we have to interact with our customers – the better.
There are other metrics that customer service plays with to
gauge performance. Average order size, average items per order,
add-on sales, Upsells, — you name it, there are plenty of data
points.
The use of data in direct-to-consumer sales is important; no
doubt. It’s a disciplined manner in which to leverage what we
know to grow the business.
But the don’t get paralysis by analysis. Use the data to guide
you, but don’t let it paralyze you. Take the data along with your
experience and gut. And most importantly: if the data is leading
you to a place that encourages customer interaction, don’t cut it
off.
Find a way to leverage that information, cost-effectively, to
create more Raving Fans.
30 Raving Fan Creation
46. CHAPTER 14
What’s the channel, Kenneth? Taking the
order via phone, store, web, chat, email,
mobile, iPad, – does it matter how?
In short order, any way I can get an order from a customer –
is great – I’ll take it.
There’s no “bad” way or channel. In fact, omni-channel
retailers play in all channels and let the customer tell the retailer
how s/he wants to interact (not the other way around).
There is some fairly well supported data that direct-to-con-
sumer companies tend to see which shows that a customer
acquired via online marketing programs have a lower “Lifetime
Value” than those acquired through other sources.
Without getting into that debate, I’ll simply say that that’s ok…
as long as the acquisition cost is adjusted downward appropriately.
But back to the subject at hand: it really doesn’t “matter” how a
customer gives you their order (as long as they give it to you some
way). There’s also some empirical evidence that customers that
47. transact with you in multiple channels should be valued higher
than those who only use one channel.
Great. Really, I don’t care. Let them use all the channels or
only one, it’s not an area that we should spend a lot of energy ana-
lyzing or impacting.
Instead, I’d rather spend effort on merging all my channels
together into a Retailer Eco-System…encouraging consumers to
use all of your channels (whichever happens to be most convenient
to them at the moment) and focus on making each of those chan-
nels as strong as they can be; each channel offers a somewhat
unique experience.
That “eco-system” (rather than “set of channels”), assuming it’s
complete, will draw customers back.
Part of that eco-system is Raving Fan customer service. And
that level of service needs to exist throughout the eco-system. In
fact – throughout the company. The subject of the next chapter.
32 Raving Fan Creation
48. CHAPTER 15
Pervasiveness - Why Customer Care
shouldn’t be relegated to “just” the
contact center
”Yeah we have great customer service – our contact center
takes care of everything.”
Ever heard that from a retailer? Or said it yourself? If so, we
need to broaden your view.
Raving Fans Customer Service, in order to be most effective,
needs to permeate the organization. Buyers, Control Buyers,
Accountants, Retail store clerks, warehouse clerks – everyone –
needs to think like a customer.
Why? Because only then will you create a culture of customer
service that doesn’t allow for slipshod service to exist.
If everyone in the organization treats the customer the way they
personally would want to be treated, then you’ve won the battle.
Simply empower everyone in the organization to do whatever it
takes for the customer to create a Raving Fan.
49. Sometimes a “it’s not good for the company” or “it’s too expen-
sive” mindset seeps in. Nonsense. Consider it an investment in
your customer retention. Chalk it up to marketing.
There are several legacy retailers that will accept any return for
any reason at any time (LL Bean, Orvis, etc.). They view that
expense as a marketing expense. They trust their customers.
Over the years, that trust has been borne out in the form of
loyal, Raving Fans, who come back over and over again. If it “cost
too much” don’t you think these very successful companies would
have abandoned the practice years ago?
Customer Service isn’t just relegated to the contact center. It’s a
mindset that must exist throughout the company via every asso-
ciate and as a priority from the top – the CEO. He or she grabs
hold of the concept and is supportive at every turn.
It’s imperative that from the CEO to the maintenance staff –
everyone acts to support the customer at every turn – not just with
lip service – but with the company’s pocketbook (when necessary).
34 Raving Fan Creation
50. CHAPTER 16
Agent product training — why it makes a
difference
Ever call (or live chat) a retailer, reach their contact center,
and within four seconds of starting the conversation realize that
you know more about the product you’re asking about than the
person answering the phone?
Pretty lousy feeling – right? That’s because we believe they
should be experts. Or at least have some knowledge (or access to
knowledge) that we don’t.
It’s another reason off-shore contact centers fail. Because they
don’t have the knowledge and their ability to gain the knowledge is
limited.
Many domestic contact centers also suffer from this malady.
There are many so-called “Third Party” call centers that take
phone calls for a variety of companies. The incoming caller ID
tells them how to answer the phone.
These agents many times will have never seen your product or
understand its function.
51. Warning: These agents are a withdrawal from the bank of brand
strength rather than a deposit. Your CFO may argue it’s cost-effi-
cient to use these contact centers rather than your own, but in the
long run these under-educated agents, many of whom may be
inexperienced and/or out of touch with your brand, will cost you
sales, repeat customers, and Raving Fans.
One of the best things you can do is co-locate your contact
center with a store or your warehouse. Many companies have his-
torically placed a low value on this and have instead located their
contact centers where phone labor is cheap (versus where logistics
is well suited for shipping).
I’d argue that’s a very short-term focus that far under-utilizes
and under-values the operation. Creating ultra-smart agents, via
exposing them every day to your products, should be the #1 crite-
rion in locating your contact center.
Then, set up regular “product shows” or a mini-store show-
room for the agents to regularly come in contact with the product.
Train the associates on the new products. Have manufacture’s /
vendor representatives regularly (monthly) spend time with the
agents training them on the new products and giving them the
inside scoop.
When they’re not answering calls, provide the agents with
sources (electronic or otherwise) of new product information and
articles, details, data, etc.
Train your agents. Make them product-smart. Perhaps give
them a generous discount so they purchase and use and become
Raving Fans of the product themselves. Give them a point of view
with your customers. That’s how you transform them from just
order-takers to sales people.
36 Raving Fan Creation
52. That’s how you raise your average order. That’s how you
increase repeat sales. That’s how you increase average items per
order. That’s how you increase add-on sales … all good stuff.
That’s how you create Raving Fans.
Agent product training — why it makes… 37
53. CHAPTER 17
Use contests and spot awards
Creating a culture of Raving Fans customer service can be fun.
One of the tried and true ways is to use contests and “spot”
awards. (Spot awards are some low-value item that are handed out
to an associate “on-the-spot” for doing a great job. Example: free
car wash coupons, movie tickets, etc).
As discussed previously, product knowledge is key to creating a
relationship with customers that sticks. Contests (often sponsored
by your vendors) in the contact center, the retail stores, and, yes,
even in the administrative/management group, are a great way to
stimulate interest and learning about products on a regular basis.
Sure, everyone should be doing this “anyhow.” But the fact is,
there’s lots of work to do and the squeaky wheels gets the grease.
I’d argue every month there should be at least 2 or 3 different
sales and/or product knowledge contests going on in each group;
awarding the top associate performers who provide Raving Fans
level of service. These are fun, everyone gets something out of
54. them, and low cost (many times free when your vendors support
them).
Spot awards are also great for associate morale and regularly
underline and remind everyone throughout the company to think
like a customer and to support Raving Fans customer orientation.
Spot awards should be given liberally – and – with public recogni-
tion.
These interactions are another, ongoing reinforcement of the
company’s commitment and support of creative Raving Fans at
every stage of the game.
Use contests and spot awards 39
55.
56. Conclusion
Creating Raving Fans is the thing to focus on.
Get all your customers shooting for you and the sales and profit
will come.
Use social media in a much larger way than is typically being
defined today. I.e., today’s “social” involves only those people who
choose to engage in today’s “social media” platforms – whether
they be Facebook, LinkedIn, YouTube, or Pinterest.
Today’s “social” is a very narrow scope of retailer buyers
(despite how much traction these platforms are getting).
The real play on “social” is to get all your customers being social
for you. Not a new concept. Think V05 commercials… “I told a
friend…who told a friend…who told a friend.” The platforms
today are just means to an end…but the “end” is the real prize.
The strength of the Raving Fans concept is so important, it
deserves to be funded as marketing, not as expense.
57. It doesn’t replace a great product, terrific store or website or
catalog execution, or a host of other retail fundamentals. But it is
essential to differentiating your business from like-minded com-
petitors. It’s the secret sauce. Now go create some.
42 Raving Fan Creation
