Poor customer service destroys brand reputation.

Posted on the May 29th, 2009 under Business Risk, CRM, Noise to signal, Piplzchoice by CarolW

dellhell In the old days there was the “suggestion box”. You can still find them in some stores and businesses, where customers can offer suggestions, point out problems and make requests. I have seen first hand the responses to these suggestions from store managers. They range from “Yeah, right!” as it drops into the waste basket, to sincere concern resulting in a plan of action to resolve the issue or improve service.

Guess which businesses are more successful? Today there are a myriad of ways for customers to share their frustrations with products and services. There are  blogs, forums, review sites, communities, tweets and so on.

Companies who care to keep customer loyalty would do well to keep an eye on these and  have an easy way to contact the company. Many times  I have called for support only to get sent  and back and  forth from one useless “representative” to another, folks who have no real knowledge or power to deal with the issues.

Nothing takes the shine off a  recent purchase like finding out that once a problem arises you are on your own.  Not spending the time and money to resolve customer issues is extremely costly. Goodwill is a critical  factor in making  purchases and when we don’t see any coming our way we are not only  going to stop buying their products, we will likely tell a number of people, who tell  more people, the ripple of bad will eventually becomes a wide and deep river. Most of us understand that lemons happen, defects happen, etc. When the company “owns” their part of the goodwill contract and does everything in their power to resolve it, I become more likely to be impressed with their commitment to make it right, than to focus l on the original problem. How about you?

Years ago, I worked in a fine Italian Restaurant  in San Francisco. An older, single woman with blue hair and a thick Southern drawl ordered the Mixed Greens with Gorgonzola which she pronounced “Gore Gone zula” When I returned with her salad, she looked frightened, I asked what was wrong.  She  asked what the moldy cheese was doin’ on her salad? I explained that it  was the “Gore Gone zula” and if she liked I would be happy to get her a salad without it “Could you?” She sighed in relief and a little embarrassment. I assured her it was no problem and commended her for trying something she was not familiar with. I then explained to her the different items on the menu in detail, for her for future reference and to make sure she would be happy with her second course.

She came back the next day for lunch with 4  other blue haired Southern Belles in tow and told me they were supposed to have  gone somewhere else, but had found the service there too “snooty”.  They asked for my table.  I gave them a crash course on Northern Italian Cuisine, (made sure no one got any “Gore Gone Zula”). They had a great time, asked me to  take a picture with all of them and had a memorable experience.

It all started when she ordered something she thought she wanted, that turned out to be something else. I  did not do anything wrong, it was really her mistake. But, like the old saying goes “Do you want to be right or do you want to be happy”  or in this case, do you want your customer to be happy? It was well worth the cost of tossing the “gore gone zula” salad and spending some extra time to help her and her subsequent guests the next day to explain the menu to make sure they were happy with their meal.

Many of you have heard of Dell Hell.   Dell, once  the darling of the industry, had so many unhappy customers who created such a roar on the internet, that  it’s fall from grace could only be stopped by heroic measures.

Dell weathered the storm because Michael Dell has been personally involved in Dell’s efforts to listen to its customers. One of those moves was to create a dedicated corporate blogger. Dell tapped Lionel Menchaca, an employee of 14 years. Menchaca, as blogger Jarvis, himself, said on The Buzz Machine, speaks to people "honestly and directly" (April 3, 2007). In blogs, Jarvis related, Menchaca "admitted the company’s problems. But he also answered back … . He immediately earned the respect of me and many other bloggers. According to Jarvis, Manchaca gave the company "a human voice." In return, Jarvis said, Manchaca gave customer respect and "got respect in return. It works." For his part, Menchaca credits Bob Pearson, Dell’s vice president of Corporate Communications, for changing how the company adapts to the world of the Internet.

Customer Service: The New Marketing? In a troubled economy such as we are currently experiencing, those who survive will  be the ones who are proactive, who are not just waiting for the calls to come in to customer or tech support, but are “out there” wherever their customers hang out on the internet- looking, listening, hearing  and acting on what they find.

So when you reach out to that kvetching blogger you found online, you’re engaged in customer service as well as PR, market research, marketing, sales, and product development. You are reinventing your company—and, if you get there before your competitors, your industry. That is why you shouldn’t relegate this vital task to one department or some interns or consultants. You should reorganize the company around this new relationship with your customer, finally putting that customer at the center of everything you do because—thanks to the Web—you can. If you don’t, well, someone will you say you "suck."

So what have we learned here? If you are a consumer, take advantage of the multitude of venues to share your opinions, experiences, complaints and suggestions. If you are a provider of products or services, keep your eyes and ears peeled for what your customers are saying about you.  The likelihood is, that the more you do this, the more positive posts will outweigh the negative ones.

The full circle

Posted on the May 26th, 2009 under Just ranting, Uncategorized by Gregory Yankelovich

sailing-caribbean-from-colon-to-portobelo2 I started sailing about 20 years ago to escape the stresses of the technology business and to pickup a new hobby. Little did I know how technological and stressful the addiction to sailing would make my life! It all started rather innocently during a short Canadian summer, with learning a completely new and weird language of marine terminology, practicing sail trim and basic boat handling techniques in the warm, light breezes of Lake Ontario. However within a few weeks my colleagues could not find me at the office anymore and the cellular technology of the time could not extend too far outside of the shorelines, which was perfectly OK with me, but did not please my customers very much. I started to feel that work interfered with my sailing too much, and decided to quit working. Plus, the winters became much longer and more miserable since I started on this path, so I moved to California where I could sail all year round and didn’t have these annoying land masses to deal with.

As I progressed in my learning “the ropes”, and started to venture into the arts of coastal and subsequently offshore navigation, the technology started to creep in, as use of GPS and chart plotters leave a lot more time for “being the one” with surrounding environment, compared to endless math of sextant. I also experienced a pull for ocean voyaging, and started to participate in offshore races and purchased an appropriate boat to sail South someday. Unfortunately, technology was not standing still, and cell phone calls started to reach me miles offshore, where pesky bosses and immature subordinates demanded something I could not possibly deliver at the moment. So I cut the lines again and sailed to Mexico, and as I finally escaped the “chains” of technology, I started to miss it the most. Oh it’s so hard to travel without weather forecasts (marine SSB radio I did not have), refrigeration or water makers – all these evils of technology that are so expensive, fragile and difficult to maintain!

Over a period of the last 10 years my wife and admiral persuaded me of the importance of technology to my (i.e. her) happiness. I was continuously adding all these marvels of technology to our vessel, and learning how to operate and maintain them, until our power generation system had to be re-designed to feed all this “comfort”. Now I can sell power to the grid, which they do not have in Kuna Yala, and my Blackberry with a fitted Cell Amplifier, used as a modem, gives me connectivity that allows me to do my work in the remote wilderness. I guess it’s time to get a different passion, like starting a new business perhaps?

Meanwhile I’ll let others deal with technology issues on water:

A seafaring band of scientists, engineers and yachtsmen with an obsession for Jules Verne and clean energy are building what they call the largest solar boat in the world, a $13 million catamaran they hope will take them around the world next year.

Construction is well underway on the 98-foot-long vessel, which will feature 5,059 square feet of photovoltaic cells. The project is being funded by Rivendell Holding AG, a Swiss firm that invests in renewable energy, simply to prove it can be done and the shipping industry can reduce its dependence on fossil fuel.

The team plans to circumnavigate the globe at the equator in 120 days at an average speed of 10 knots. Should they succeed, Planet Solar will set a maritime milestone. Solar electric pleasure boats have been tooling around lakes for awhile now, solar electric ferries are increasingly common and a solar electric catamaran called Sun 21 crossed the Atlantic in 29 days. But so far no one’s made it around the world in a solar electric boat.

The power of BETTER – Default Behavior and the Internet Operating System

Posted on the May 24th, 2009 under Noise to signal, Piplzchoice by Gregory Yankelovich

images Fred Wilson wrote in this post of his very popular blog

When you want to search for something on the Internet, most people go to Google without even thinking about it. 

When I want to buy something on the Internet, my default behavior is to go to Amazon and search for it. 

When my kids want to get tix for a concert, they go right to Craigslist and post a ticket wanted listing and search for a seller.

These are ‘default behaviors’. We do these things by second nature without even thinking about it. 

 

I would like to add that more and more people would not buy any device or appliance anymore without first checking their reputation via customers reviews. Amazon seem to have the largest “inventory” of customers reviews on the Internet, but judging by LinkedIn tread asking this question, have not become an ultimate destination for consumers who are looking for their peers opinions about products they want to purchase. A number of people answered to the question with multiple sources for “collective wisdom” often dependant on a product category. That seem to point at the quality of a rating mechanism and methodology involved on these sites – five stars (Likert scale) method is very popular, but not very successful in giving consumer any comfort or convenience in their attempt to make better decision and to reduce probability of “buyer’s remorse”.

Here’s a post from Vovici (survey company) that does a pretty good job of explaining:

Years of data show that the spread of a five-point scale usually skews heavily towards the top two answer options. Thus, when using five-point scales, we’ll find that:
* 88% of respondents answer 4 or 5
* 10% answer 3
* 2% answer 1 or 2

Another problem is with the lack of specificity and consistency of the rating methods available today that negatively impacts consumer ability to personalize peer-to-peer advice, i.e. some customers are more peers of mine than others. It’s a matter of our personal sensitivities and priorities which makes it difficult to align using one-dimensional scale of measurement and forces us to read multiple reviews before making our minds.  That sometimes takes hours.

Returning to Fred’s post:

If Google’s power over the web wanes, and I think it will in time, it will not likely be the result of Microsoft or someone else replacing it as the default search service. It will be because new default functions emerge that lessen the number of times we want to use the search function.