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Showing newest posts with label Customer Loyalty. Show older posts
Showing newest posts with label Customer Loyalty. Show older posts

Customer Service Person of the Year – Steve Jobs


“No. Not to worry.”

If you read the above text, you will probably ignore it as it does not contain any useful information which an ordinary Joe will look for. But tell the world that above text is an email response from Steve Jobs, you may like to read it again and try to find the background of the above text.

Over the last one month, Jobs is answering queries of customers like there is no tomorrow.


In case a customer is not happy with some hardware upgrade and writes to Jobs asking him the reason behind this lousy upgrade, Jobs replies him with a reason. 

If someone wants to know about whether he can access his collection of books on iPad, Jobs reply with one word reply. 

And the list goes on and on. ‘Blog world’ is full of such small and few-words-long emails which may not translate into any heart to heart talk (most of the time it is blunt and to the point) but it will always surprise you if you get a reply from a CEO. And if  he CEO happens to be Steve Jobs, Apple fanboys are more than eager to pick the threads and spread it on various blogs.

I find this practice of his a bit strange and amazing at the same time. Strange because it is far easy for a CEO to go for a press release and answer everything in formal and legally correct language which will do no harm to anyone. Yet he decides to take this off-beat path. His replies are often considered curt, blunt, and too short but usually to the point. If he decides to go the PR route, he can overcome all these short comings. But he decides to speak his mind and heart instead.

I find it amazing because a CEO need not respond to any customer mail. He can pass it on to his chunnu-munnus who will take care of the issue. It happens most of the time and it will continue to happen as CEOs are extremely busy species and small customers are definitely not their priority. It is amazing to see that someone is trying to do things differently.

Jobs may not be answering all the emails but whatever small number he replies, shows his concern for his customers concerns, and he feels that their concerns are his concerns.

He is, beyond doubt, my customer service person of the year.  

Miracle or mirage...



Just saying...

You can check out story behind Aloo Kachalu here. More Aloo Kachalu are here.

Thanks for remembering me...




My marriage anniversary was on November 18 and I got a discount coupon from Pizza Hut. I was glad to know that they at least tried to use data which I have filled innumerable times in their outlet. They are not the only ones who gather this data. I have filled such details in almost all places but it was good to know that at least someone used it.

They have done a couple of good things here. They have sent me a list of stores along with their addresses and phone numbers. This is small, mundane but extremely useful thing to do. They are not assuming that I know the locations of Pizza Hut and they are also giving me an opportunity to visit some other Pizza Hut outlets and not my regular ones.

Pizza Hut have given me a window of one month to avail the discount coupons. It is not that I have to utilize these coupons on any given date and time. I can enjoy a sumptuous meal as per my own convenience. A thoughtful thing to do.

In terms of implementation, they could have done better. A personalized mail would have been great. A less-strict-sounding T&C would have had a more soothing effect on me.

Anyways, I am thankful to them as they remembered me on one of the most important days of my life. Thanks, Pizza Hut.
 

Local Business - Sip and Bite

I have started loving local businesses or small business owners. Till few years back, I have always loved to dine-in some reputed national or international chain, always liked to shop with retailer which has national presence or has some phoren tag attached.
 
With some of my ordinary experiences with so called organized players, my faith is back in local businesses. My mindset is changing because with the advent of organized retail, local businesses have also pulled their socks and raised their standards (service, hygiene etc.) to decent levels. And organized retailers are unable to compete with these resurgent small businesses.
 
For the next four weeks, every Friday I intend to cover one small business to which I am sold because they offer me great service.  
 
First in line is a restaurant, Sip and Bite in Gurgaon which is run by an old Uncle and Aunty. Couple of months back, I developed an allergy to red chilly powder and doctor has asked me to avoid it. One evening, I went to this restaurant asking what all is available without red chilly. Steward suggested a couple of dishes, and I ordered as per that. True to his advice it was without any red chilly. 
 
After a few days, I again went to this place. Steward came to me with a menu and asked me, "Sir, you want without red chilly?". I was floored because he remembered me and my choices. After that moment, I knew I was going to be a regular at this place. After all, you do not find such places very often where people remember you very often.
 
Place is clean and kitchen is open and is visible to everyone. This exudes confidence in the diner as he can see that everything is cooked in a place which is spic and span. It also shows that owners have full faith in their facility.
 
I am sold to this place because of their thoughtfulness and openness.

Customer Service Tips



An interesting article which lists 50 things that should be avoided by you, if you are working in a restaurant. Though, this list talks about things not-to-do in restaurant but a lot of points can be applied to all businesses related to service. 
 
Some of the points which I feel relevant to many businesses are:
 
Greet warmly - An eye contact. A hearty smile. A friendly hello. A sincere greeting. All these things help in initiating a relationship which can be cherished for long time to come.
 
Opening lines matter - Do not open your conversation with a lame sentence like "mineral water or tap water?" More the interesting opening lines are, more the customer will be inclined to stay with you. After all you do want him to come again and again because of you. 
 
Interrupting a conversation is a sin - Yes, you have some wonderful ideas and bombarding your customer with those ideas is the only logical thing occurring to you. But hold on. Let your customer speak first. Do not interrupt him. If customer is accompanied by a friend or spouse and they are discussing something, do not interrupt them as well. Be patient, you will have enough time to throw your ideas at them.
 
Take feedback and fix things which are not right - After customers are done with their shopping, dinner or window/floor shopping, do take their feedback. And taking feedback will be the first step only and it would be an incomplete step if you do what needs to be corrected.
 
Be consistent throughout your conversation - Charming at the beginning of conversation. Listless in the middle. Tired at the end of the conversation. Not done. Hardly an impact which you want to leave on customer.

This is only part one and I can't wait to read the second part as well. Will share with you all as soon it is updated.

Conversations are on...always





Customers talk. And , they talk in every possible forum available to them. Facebook. Twitter. Parties. Blogs. Everywhere. You think of a place and probably a conversation will be going around about good or bad customer experiences.

Apple is generally known for providing great customer experience. But they are also not perfect. Apparently, Time Capasule (a Wi-Fi router which also backs up your data) dies after 18 months. Customers are writing to Apple about this faulty product line. Though products are covered under Apple extended warranty plan but that is not enough for Apple fans. These fans do not want that their product to go bad at first place.

Anyways, fans of Apple, who go out of way to show their affection for Apple and its products, have now taken an off-beat route to protest. Fans have setup a website which mourns the death of Time Capsule and all dead Time Capsules can R.I.P. together on this website. So far, 178 owners have registered their dead Time Capsules on this site.

Unfortunately, there is no R.I.P. for conversations around good and bad experiences.

Loyalty Programs and Recession



With this downturn in economy, loyalty cards are in vogue once again.
 
With plunging footfalls and receding sales, retailers are re-thinking about their loyalty programs. Some retailers are promoting their loyalty cards aggressively. In West, many retailers are re-launching their loyalty cards with improved benefits (read - more points per transaction).
 
While others are debating whether investment on loyalty cards in worth it or not. Discounters are promoting their heavy discounts unabashdely.  These discounters do not believe in investing in loyalty cards as customers do not find much value in it and results do not justify investments.
 
Economic Times carried an interesting article on this trend.

Loyalty Programs...For What?

I am an avid reader and during weekends, I spend close to 2 hours in various book shops. I have loyalty membership card for a couple of book stores and recently I added one more of Om Book Shop as they have decent presence (in terms of number of stores) in Delhi. 

Last weekend, I bought a couple of books on sale and while billing, I informed the cashier that I have membership card. “It is of no use as you are already buying books which are on sale”, replied the cashier. “So, what?”, I asked curiously. “As you already have discount on your purchase, we cannot add points to your bill”.  

Is membership card are all about projecting discounts, I asked myself? 

This is not one off case. At most of the places, membership card is either projected as a medium of giving discounts or extending offers. I agree customers lap it up because they are lured by extra benefits , but loyalty cards can serve lot bigger purposes to a retailer than extending discounts. 

Loyalty cards, as the name suggests, are there to build loyal customer base, to build relationship with existing customers, to treat regular customers so well that they become your brand ambassadors and to help in building loyalty that span a lifetime. Tesco is known for doing this so well. They use their loyalty data to understand consumer behavior and tailor-make offers and promotions according to taste of their loyal customers.  

I guess Indian retailers still have a long way to go as far as using loyalty cards effectively is concerned. If implemented and used well, loyalty cards can be the reason for a customer's coming back to store. 

As usual, your point of view is welcome.

Problem ownership and WOW! experience



On a New Year’s Eve, one of my team members got a call from a customer wishing her a Happy New Year.  She did not recognize the customer in first instance but after the customer told her complete incident, she recognized her.  

Apparently, the customer had to struggle a lot to get her concern resolved until she got in touch with my colleague. My colleague helped her in getting her concern resolved. And the customer remembered this act of hers and related her interaction as a WOW moment. This is why she decided to call her on New Year Eve and give her wishes. 

What made this interaction stand out? I think the problem solving approach of my colleague. I agree it is her job to resolve the customer’s concern but she could have easily passed the buck to some other entity, department, person or whatever. So many times we have seen and observed that people simply pass the buck and do not own the problem. With no one taking ownership, customer’s frustration increases and thus the chances of providing great customer experience is lost.  

In a report published by Knowledge @ Wharton emphasis is on this point. The report examines the ways and means of providing wow experience in retail stores to customers. Biggest challenge faced by retailers is lack of problem ownership.  

Courtney stresses it is important for retailers to have a clear, simple problem resolution process. "The biggest issue is problem ownership," she says. "If all you can do is train everybody on one thing related to problem-solving it would be getting people to own the problem and not pass it off." Hoch says that while problem resolution was not as great a factor as some of the other five elements, one common thread emerged from the research: "A person stepped up to the plate and figured out how to solve the problem." Having that experience changed the consumer's state of mind from helplessness to, "'Boy, somebody came up and helped me.' We all like a hero, but it doesn't happen very often," Hoch notes.

Every retailer can have best quality products and can create great ambiance, but it is the small gestures that make a difference.

Share of wallet



Tom Fishburne has come up with nice cartoon on how consumers are preferring to spend. I am glad to see iPhone over there :-)

As Tom puts it

Yet Apple still managed to blow away iPhone expectations this last quarter.  Even in the midst of a recession.  And value-oriented attack ads from Microsoft.
I know, I know, Apple is the stereotypical poster brand.  It's almost cliché to talk about them as a marketing case study. And, yes, their computer sales are down.  But I still find the iPhone example pretty inspiring.  The average high street has shuttered shops and desperate Sale signs, yet the Apple store always feels crowded.
Why? Because Apple creates meaningful products.  They pass the "recession litmus test".  And because they excel at "share of wallet".

I would also like to add my quota of whisky and beer in my share of wallet.

What are your additions?

Biggest losers are in demand


In any business the most important thing is to know the customer. Duh.

Companies have spent millions of Dollars in building customer databases. They have spent this huge amount of money so that they can build relationships with customers and stay ahead of their competitors.

Now is the time when everybody is busy in trying to maximizing their returns on customers database which they have collected over the years.

Casinos are no different. Researchers are using their extensive customer data to find most profitable customers - biggest losers. They would love to avoid their unattractive customers.

Frequency of visits to casino and amount of money spent in casino is important to them but more important is how many times customer has lost. Based on the previous data they intend to calculate how much more money they can make in future from such profitable customers.

Casinos will give best of the treatments to their biggest losers. Airport pickups in best of the cars, best of the hotels to stay in, best of the rooms to put up and in the end casinos will hope customers take this bait and lose big time. I wish I had not listened to my parents and should have taken up gambling :-(

This year companies will follow one simple mantra - love them, lose them and love anyway.
 

Loyal, to whom


Loyalty cards have long been blue eyed boys of CRM and marketers. They are used to enhance customer relationship, build a base of loyal customers, design an offerings based on customer preferences and serve loyal customers well so that they become brand advocate.
However, Raj has an interesting and different take on this. His point of view is that companies are losing lot of money because of dishonest employees who tend to use loyalty cards for their personal use. According to one report, a company has lost half a billion dollars due to multiple redemption of coupons.
Almost every major retailer has invested lot of time, money and effort to make their loyalty programs a success. They have spent huge funds to understand consumer behavior, shopping pattern and enticing consumers with tailor made offers. But those efforts have gone in the drain as some dishonest employees are making money and companies are suffering losses.
Reasons for this loss are loose processes at the billing counter, certain staff related procedures not followed religiously, job dissatisfaction, and poor financial health of employees.
Processes and procedures play an important part in achieving certain goals and any lapse in processes can make that goal achievement difficult.
It is important to have internal customer (employee) satisfaction to achieve external customer satisfaction. Job dissatisfaction of employees will reflect in their customer interactions and customers will not get any satisfied response to his queries and concerns. Hence whole customer experience has gone for a toss.
This is whole thing is like a leaking bucket – keep filling it from one side and have an open end at other side so that everything flows out. Find ways and means to plug this hole.

Simple rules for great service

Some small budget movies are making lot of money in US.

But what's really driving this year's box-office surge? Three movies: Sony's "Paul Blart: Mall Cop," Fox's "Taken" and Universal's "Fast and Furious" have grossed more than $350 million combined, surprising analysts and outperforming even movie-mogul expectations.
Reason: they market it differently.

A closer examination of their success suggests Tinseltown's studios and stars aren't merely reaping the benefits of a nasty recession; they're also creating those benefits by making substantial changes in marketing and distribution -- tweaks that retailers and consumer brands should note too.
According to reports, these movies did four things right - Hit the bricks, Hire hungry talent with something to prove, Break taboos and Sizzle sells in any season.

The above four principle are also required to deliver some exceptional customer service.

Working at ground level :- Spend time with people who are face of your company. Nothing beats listening to customers. Spend time where your customers are. JetBlue CEO always spend time interacting with his passengers in the flights. He takes feedback about services. He is connected to ground and it is no surprise that JetBlue flying experience is always a pleasure.

Hire hungry people :- This is the most important point. Employees who are face of the company should be hired and trained with great care. They are the company for customers and customers will build image of company through them. Hire people who have passion and hunger for customer service.

Break taboos :- For years retailers have put up return policies which did not offer any benefit to customer. Policies were pro companies and did not offer any chance to customer for any negotiation. Then came Zappos and their 365 days return policies. They challenged the status quo and they have now 75% customers as return customers.

Sizzle always sell :- Adding your signatures while delivering customer service always delight customers. PizzaHut always sizzles if you happen to host your birthday part in their restaurant. You celebrate your birthday in PizzaHut and their staff sing a song for you. Employees go out of their way to ensure that you have fun.

Simple rules but great results.

Recession marketing

In these times of crunch, KFC is investing in future by doing cause marketing – they are repairing roads.

Don't be surprised if you see Col. Sanders out filling potholes. In an unusual
cause-marketing push, KFC is tackling the pothole problem in Louisville, Ky. in
exchange for stamping the fresh pavement with "Re-freshed by KFC," a chalky
stencil likely to fade away in the next downpour.


There are opportunities for more businesses by building huge goodwill amongst their customers and generating positive word of mouth.


Ideas I overheard:
• Gyms should let people who lost their job have a free off-peak-hours
membership
• Salons should give free haircuts/facials to anyone on their way to a
job interview
• Conferences should give scholarships to struggling small business
who ask nicely
• Restaurants should offer a free dinner for anyone who just got laid
off

Innovation in marketing is the key in these tough times and such acts of kindness will not be forgotten easily.


Real relationships are yet to be built...

But, as we all know, relationships are NOT a commodity. And never will be. I know a lot of people that would help me out if I begged them to and just a handful that would come to my rescue before I even opened my mouth. They are the ones that have got my back. It’s the STRENGTH of the relationships that I have, not the NUMBER.
This is true for loyalty programs in India. Most of the times CRM is content with number of customers enrolled in loyalty programs instead of the amount of business customers (number of visits, bill value etc) are doing with the organization.

Enrolling new members are like building an asset but CRM should try to maximize returns on this asset. To maximize this effort, a solid retention strategy is required. This can be achieved by:
  • Tracking amount of business customer is doing with the organization
  • Designing specific promotions based on customer's purchase history. Tesco never send same membership statement to three customers
  • Giving discounts on products and service that matters to customer
  • Remembering them on their birthdays and anniversary
  • Sending handwritten thank you note (once in a while will not hurt).
With the availability of technology this is not difficult, however customer needs to be at the center of whole CRM strategy. Is that difficult to do?


Committment+intent= memorable customer experience

I have been looking for a specific product in Spencer's Hyper, Gurgaon for last two-three weeks and was not able get it there. Every time I requested sales associate to get the product and he assured me that you will get it next time.

Today I went to Spencer's Hyper for my weekly shopping. Sales associate recognized me from a distance and came running to me with my product. I was impressed with his committment and intent to help customers. His timing and delivery of customer service gave me delightful and memorable customer experience.

I have always been fan (not a loyal customer but fan) of Spencer's Hyper and with today's incident this bond just got stronger.

Recessionary marketing by JetBlue

Read a great story on JetBlue's commitment towards customer focus and customer service. JetBlue has decided to refund the tickets of people who have been laid off by their companies.

New York-based value airline JetBlue Airways Corporation (Nasdaq: JBLU) today announces The JetBlue Promise Program, boosting customers' confidence to book travel by honoring a full refund to anyone who experiences involuntary full-time job loss prior to their trip.

"JetBlue is committed to helping customers book stress-free travel plans, and based on their feedback we made adjustments to our refund policy to allow them to book with confidence," said Robin Hayes, executive vice president and chief commercial officer for JetBlue Airways. "This price promise allows them to book early and take advantage of our low fares without worrying they will lose their money if they need to cancel their trip due to job loss."

This is great recessionary marketing which will bring confidence in customers. Customers who will never forget this great gesture especially the one who will use this service.

They will be JetBlue's customers...for life.

Google baba sab janta hai!

Google baba sab janta hai (Google remeber everything)!

This is my favorite dialogue and also shows how much I trust Google searches. But I am sure, I am not the only one.

Lot of corporates use Google to check their prospective employees and customers are checking reviews of services and products offered by companies before making purchase.

Seth Godin has written a short post on how Google is can be used for personal branding.

Make sure you people speak positive things about your brand (personal and corporate) in social media because everyone is using this tool to know more about you.

Customer Service Quote #2

“I would label the consumer of 2025 in three ways: more demanding, wiser and more worried.”

Mike Clasper (the former President of Procter and Gamble)

Going by above prediction, organizations which will understand the customer, have knowledgeable sales person and heart, will attract more loyal customers.

Loyalty and relationships are saviours

Adage came up with their analysis on some retailers who are doing well in these tough times.

"With the economy in a tailspin, the retailers that are flourishing -- and floundering -- may surprise you. ...look at varied categories for common threads and found a few that point to higher sales: Keep spending, target your marketing and look for ways to offer value."

Couple of retailers are targeting its customers through "personalized conversations." They are investing their marketing dollars in building relationships with customers.

Most of the retailers do have loyalty cards but they are often clueless on how to use them. Loyalty programs do not go beyond offering extra points, additional discounts and special promotions.

They are hardly used for:

  • relationship building
  • to learn what your customers really value
  • experience that customers are looking for
Retailers are learning from Apple on how to build great relationship and loyalty with customers.