Photo Credits: garrulus

They say customer service is the new marketing. Many companies, however, still don’t “get” phone customer service, and they consider it a cost rather than a marketing opportunity.

In addition to having overly complicated automated systems and poorly trained representatives, some companies make things worse by doing this:

Forcing callers to dial “1” for English

If you’re in the U.S., English should be the default language. There is no need to make callers push an extra button. Request callers to “press X” only for other languages.

Welcoming callers by asking them if they knew they could go to the web for help

Callers don’t need to be reminded up front of other ways to contact you. They are already on the phone, with a problem. Solve their problem first, and then, at the end of the call, remind them about your website.

Asking callers up front to stay after the call to answer a survey

Like in the previous example, this is better done at the end, once you have addressed the caller’s problem.

Not giving callers the option to speak to a representative

Sometimes callers have problems that can’t be answered by an automated system, or simply don’t have the time to navigate through a complicated maze of options.

Some companies make it impossible or nearly impossible to talk to an agent, to the point that there are now websites that specialize in telling us how to bypass the automated systems of most companies.

Not giving callers the estimated waiting time before they can talk to an agent

Saying “your estimated waiting time is 8 minutes” is better than just saying “your call will be answered shortly”. A good automated system should make it easy for callers to decide if they should hang around or hang up and call later.

Using the call as an opportunity for a sales pitch

Some companies build a sales pitch into the recording, for when the caller is on hold. Being on hold with a problem doesn’t exactly put callers in the best frame of mind for a sales pitch.

In addition, some live operators are given a hard-sell script to be delivered after the customer service transaction. The rationale is that customers will feel guilty to say no to somebody that has just helped them solve a problem.

This may work sometimes, but most of the time it will backfire and make you come across as self serving.

Do you have a phone customer service pet peeve of your own that we could add to this list?

A few weeks ago, while in a conference at a high end Miami Beach hotel, a copy of USA Today was delivered at my doorstep every morning. Since I don’t read the newspaper any more (I get my news from the web or through RSS feeds), I just left it in a corner of my room before going about my daily activities.

On the third day, I noticed the following statement written in a very small font on my room card keys envelope:

“Please call the front desk to refuse delivery of USA Today. If refused, a credit of $0.75 will be applied to your bill”.

If the powers that be who manage this large hotel chain thought guests would appreciate this gesture, they’re probably thinking like accountants, not like customers. I don’t know if I fit the profile of a typical guest, but this is what went through my mind immediately after reading the statement:

“This fancy hotel has taken it upon itself to buy a newspaper I don’t want, and charge me $0.75 without even asking me. On top of that, since I don’t want it, I have to spend time and effort making an opt-out phone call that will probably make me look like a cheapskate. Finally, I will need to spend more time at check-out to see if the $0.75 were in fact credited for every day I didn’t receive the paper.”

Some time ago I explained why I think opt-out policies are a bad idea, and this simple example is no exception.

If I were running the place, I would not offer newspaper delivery by default, and I would re-write the statement as follows:

“If you want a copy of USA Today at your doorstep every morning just call the front desk and we will deliver it at no charge”.

Now, if I really wanted to kick it up a notch, I would change the statement to:

“In our efforts to help the environment, we do not provide automatic newspaper delivery. However, if you want a copy of USA Today at your doorstep every morning just call the front desk and we will deliver it at no charge.”

Fine, but “what about the newspaper cost?” you may ask. Well, the cost of the newspaper vs. the cost of a room in this hotel comes out to less than 0.25%. Furthermore, if only 30% of guests opt to receive the free newspaper (and 30% still strikes me as a high number) the newspaper cost per room would go down to around 0.08%.

In other words, it would cost practically nothing for the hotel to institute a much better policy that would leave everybody happy (with the exception perhaps of USA Today and a few obtuse accountants).

Do you think the hotel’s current policy is a good or bad idea? Do you expect hotel newspapers to be free? Do you still read newspapers? Please share your thoughts here.

Photo Credits: edans

A few days ago, my wife came home with a story about bad customer service that unfortunately is becoming too common.

She was at an Office Depot store in Miami, picking up some office supplies. She was standing in line to pay, with four other customers in front of her, at the only cash register open in the store.

As the minutes passed bye, she got tired of waiting and asked the cashier why couldn’t they open another register. She answered that they were short on staff, without providing any further details.

My wife then walked to the copy center where two associates were chatting and asked to talk to the manager. One of the associates replied that she was the assistant manager, and that she could probably help.

My wife explained the situation and asked her if they could open another register. The assistant manager replied that they had received orders from corporate to have only one cashier, to reduce costs.

She paused for a second and, probably noticing the frustration in my wife’s face, offered this pearl: “but this is what you can do: if you want, I can give you the address of our corporate office so that you can write and…”.

She didn’t finish speaking. My wife, dropping the office supplies she had picked up on the counter, cut her off and said: “No, THIS is what I can do: I can walk to my car and drive a few blocks to your competition where I can get what I want without having to wait in line. Goodbye.”

Some companies spend millions of dollars in expensive ads, margin-eroding discount coupons, new and bigger stores, anything to lure prospective customers in. Then, when customers are in the store, with merchandise in their hands and ready to pay, they don’t want to take their money!

It just doesn’t make sense. How much does an extra cashier cost per hour? What is the gross margin on office supplies? 50%, 60%? If they don’t want to hire extra people, why can’t they cross-train associates so that they can be more flexible on the job and perform different tasks? Can’t they install self-service checkout machines?

Somehow I suspect that the executive who made the decision will be praised by his or her superiors and maybe get a fat bonus at the end of the year. At the same time, sales will probably plummet, but that doesn’t matter. They will chalk that one up to the “recession” and everybody, except the customer, will be happy.

Read Also:

Red Zone / Green Zone: The downwad spiral of companies that view customer service as a cost (by @missrogue )

I don’t like to spend money on cars, but with $4 per gallon of gas and my 12 year old Jeep acting up I decided to just move on and buy a smaller, more efficient vehicle.

A friend at work had recently bought a Scion xD, a cool little car loaded with features, a decent engine and great fuel economy. I liked it and decided that it would be my next car.

I started my new car search by emailing four local Scion dealers (let’s call them dealers A, B, C and D) to see if they had the color I wanted (and also to evaluate their responses as a marketing experiment). My email request was simple: I told them that I was looking for a silver, base xD and asked for two things: price and availability.

Following is a summary of the answers I received:

Dealer D

Didn’t answer.

Dealer C

They sent me three consecutive emails, none of which answered my question. Instead, I received these gems:

Email 1:

Hello Mario !
I have good news for you! Give me a call (xxx) xxx-xxxx or reply to this email. Please call me at your convenience. You’ll be glad you did!

Email 2:

Dear Mario,
We’d like to welcome you to our new Virtual Dealership!
Click the arrow to the right to view your special presentation.
Please feel free to reach me at any time. I look forward to
working with you.
Have a great day!

Email 3:

Hello Mario !
Thank you for your interest in the Toyota (sic) . Below is a brochure containing additional information. Please click below and it should open right up. If you have any trouble, please pick up the phone and call me john doe (not his real name) at (xxx) xxx-xxxx. Also, if you have any questions or concerns do not hesitate to contact me.

Three emails, no answer. Just spam and fluff.

Dealer B

These guys were close, but in the end fell short. Their first email came back quoting me an xD with $389 in options, when I had clearly stated that I wanted a base car. On top of that, they had added a $699 dealer fee.

I politely wrote back saying that I appreciated the response, but that I had requested a car w/o options, and that I would not pay any “dealer fees”.

They wrote back, two days later, with a new quote, this time without the options and the dealer fees. In the two days it took them to get back to me, though, I was already talking to dealer A and we were already far ahead into the process.

If dealer B would have answered my question from the start, or at least wouldn’t have taken two days to send me their second quote, they may have gotten the business. Instead, they blew it.

Dealer A

A sales woman immediately answered my email, giving me a price and letting me know that they had three cars in stock that fit my criteria.

I replied back asking her if that was the net price before tax, tag and title. She wrote back immediately, confirming that yes, it was, and that since this was an Internet transaction they would waive the dealer fee.

I then made an appointment to test drive the car. That day, she had all the paperwork ready and made the process a breeze. She even made arrangements to wash my wife’s car while we waited for my new car to be ready.

In Summary

Why did dealer A get my business?

1. Because they answered my e-mail in the first place.
2. Because they answered directly and promptly.
3. Because there was a real person on the other side.
4. Because they gave me the specific information I was looking for.
5. Because they didn’t send me spam.
6. Because they didn’t try to bamboozle me into having to call them.
7. Because they didn’t try to pull the old bait and switch.

Seth Godin’s latest book has a lengthy section on the value of direct email communication with customers. This is pretty much what he says:

Every organization now has the ability (and probably the responsibility) to deal directly with the world. With customers, with prospects and with those impacted by their actions. No middlemen. This direct connection is an asset or a risk, depending on how you look at it.

Some companies regard email communication as a cost and therefore avoid it. Others consider it an excuse to send spam. Others, however, see it as an opportunity to build a business, as our little example shows.

Photo Credits: garybembridge

The true character of organizations is often revealed by how well do they respond to customer feedback. Doing the right thing for the customer has always been good business sense, but never more important than today, when blogs and social media have given consumers the power to share their experiences with millions of people.

The blogosphere is full of stories about bad customer service, but today I will share with you an example of customer service done right:

Last month I traveled to Dubai and stayed at Le Meridien hotel. Overall, my stay was pleasant and uneventful, but somehow I couldn’t get over the high cost of the daily Internet connection charge (US$20). For somebody like me who can’t fathom spending a day without being connected to the web, having to pay for Internet access is like having to pay for air to breath.

Upon my return to the States, the hotel sent me an email survey, asking me to rate the different aspects of my visit. I gave the hotel a good review, however I expressed my discomfort with the Internet charge telling them that, in my opinion, a hotel that caters to business travelers should recognize that Internet access is not a luxury but a necessity, and therefore should be offered at no extra charge.

A couple of days later, I received this email from the hotel’s Quality Director:

Dear Mr. Sanchez,

We would like to thank you for filling out the Guest Questionnaire sent on behalf of our parent company, Starwood Hotels and Resorts Worldwide.

We were indeed delighted to note that you have enjoyed all the services and facilities, which you have experienced throughout your stay and are grateful for the positive comments you have expressed in your customer evaluation, especially concerning our reception staff.

Concerning your comments with regards to our internet charges, we have credited your American Express Card no. XXXXXXXXXXXXXX the amount of AED 140 for the two usage of internet on February 11 & 15.

We would certainly look forward to the pleasure of welcoming you back to Le Méridien Dubai in the not too distant future. In the meantime, if you require any further assistance, please do not hesitate to contact us either via my email address (email address here) or direct fax (fax no. here) and we would be more than happy to be at your service.

Yours sincerely,

Name Here
Quality Director

Now, THAT is a good response. And it is good, in my opinion, for several reasons:

1. The survey was taken seriously and not just as a routine task or, as many companies do, as easy and free marketing research.
2. It shows that the company values long term relationship with customers more than the short term profit that can be extracted by nickel and diming them.
3. The response is an actual email message from an actual human being, and not an automated, prefabricated response.
4. Instead of offering a token concession, like a free drink or a small discount on my next visit, they directly addressed my concern by eliminating the Internet access charges altogether.

Think about these four takeaways and how you can adapt them and apply them in your small business.

Attention and trust are the most valuable commodities of the new economy. Every time a customer gives you attention (by buying a product, filling a survey, etc.) you have the opportunity to respond to it in a way that generates loyalty and trust. And trust, more than product features or price, is what ultimately will separate the great companies from all the rest.

A couple of weeks ago, I started my personal blog on a relatively new platform called Tumblr. Tumblr is technically a “tumblelog”. Basically, it works like a blog but it’s lighter on features and much easier to update and maintain (some people compare it to what blogs looked like in the early stages of blogging).

The reason I’m bringing this up is because last week Tumblr experienced some technical issues during an upgrade that went wrong. What happened next is an example of how a company should handle these issues, and how well do committed customers react to honest feedback:

Tumblr immediately posted a heartfelt apology on their blog, and detailed the steps that they were taking to improve. The customers’ reaction was overwhelmingly positive (you have to read the comments…)

Companies that offer tons of value, and build a strong brand to the point where customers become fans, will have an easier time going through rough waters because their customers want them to succeed. Go Tumblr !

Photo Credits: linnybinnypix

Last weekend I rented a car for a day. I stopped to have a cup of coffee and, fiddling with my rental papers I noticed a blue sticky note attached to the envelope with something written on it. It was a disclaimer that said something like this:

If you drive less than 75 miles, don’t re-fuel your tank. A $10.50 EZ fuel service charge will automatically be added to your bill. If you decide to fill up your tank, simply bring your receipt and the charge will be reversed.

I ended up driving more than 75 miles so this never became an issue. However, when I returned home I did some research on the charge, which I found odd and lopsided in favor of the rental car company.

I found out that back in November 2007, the company had settled a class action suit brought against it by customers who returned the car with the gas tank full, who argued that the charge was not properly disclosed. The disclosure issue has now been addressed by the sticky note I mentioned before, so the charge is now “legal”.

There is, however, a marketing angle to this story, which I would like to explore today.

Basically, by requiring customers to opt-out of the charge instead of asking them if they want to sign-up for it, the rental car company is creating an unnecessary burden on customers. How?:

1. They are forcing them to read the documentation. People in general hate to read manuals and legal disclosures.
2. They are forcing the customer to remember to ask for a gas receipt and then be organized enough not to lose it.
3. Finally, they are forcing you to produce the receipt upon the car’s return (when your mind is usually focused on more important things, like not losing your belongings, finding your ticket and passport, and catching your plane on time).

It just happens that these “convenience” charges are almost always levied for the convenience of the company, not the customer.

How would I have handled it?

If I were in charge this is how the customer experience would have gone:

Rental Agent: Hello Sir/Madam. Let me tell you about about our EZ fuel service option: if you drive less than 75 miles and don’t want to refill your tank, you can just bring the car back and we will add $10.50 to your bill. Is that something you would be interested in?

Customer One: Hmmm, let’s see. I’m going to rent a Jeep Commander that gives me 15 miles per gallon, and I’ll probably drive around 70 miles. That’s about $14 in fuel , so, yeah… sign me up, that’ll save me some money and a trip to the gas station.

Or,

Customer Two: That Hyundai that I’m renting today gives me around 25 miles per gallon and I’m probably only going to drive 50 miles. Hmm, I guess I’ll pass. No, thanks.

See the difference? No surprises, no gimmicks, and the customer decides.

The problem with opt-out policies is that they require customers to take action where no action should be needed. After all, why should you be forced to get out of something you didn’t request in the first place? It’s the same kind of feeling as when when you receive unsolicited email or telemarketer calls.

Arbitrary opt-out policies upset customers, create unnecessary friction and ultimately undermine the bond of trust that should exist between a brand and its customers. Asking for permission first is always the best policy.