You might have already guessed from the headline that I had the “pleasure” of being insulted by a customer service rep... again. This time I brought it on myself. I called the company. The telephone company. I can already hear your groans. You know what it’s like; most of us have been subjected to that particular brand of torture. What’s really sad is that we all have such stories – no matter what carrier we use.
Even sadder: Customer Service reps who answer 1-800 lines are often the only people with whom customers interact on a regular basis, so if they don’t do a good job, companies risk losing their clients.
On three separate occasions over the past 10 days, I got off the phone appalled by how the call had been handled. I make it a point to be courteous and friendly when speaking with CSRs (or at least I start out that way) and if I had this many unfortunate experiences, I can only imagine the high numbers of clients across the nation who are being mistreated by call centre employees.
Story #1
I called a company with which I do a lot of business – in fact, my volume has now reached the point where I have been accorded VIP status. Too bad I don’t also get VIP treatment.
The rep who plucked me from the queue had “attitude” from the get go. Instead of asking for my account password, she barked: “Password”. When I replied, “Honey” (the correct answer), the woman with the big southern accent reprimanded me with a “Don’t you ‘honey’ me.” I’m sure that I was not the first person who had to endure this women’s bad mood because when the rep came on the line she was already spoiling for a fight.
Note to marketers:
Make sure that CSRs start their shifts in a positive frame of mind. Do periodic checks and give them enough breaks to help them stay fresh. Things I have used successfully with various call centres:
• Have CSRs and supervisors watch short humorous clips at the start of a shift and during breaks. America’s Funniest Videos and Just for Laugh Gags seem to work well.
• Encourage CSRs to post photos in their cubicle that make them happy. After a trying customer, have reps stand for a moment, shift their visual focus to one of their favourite photos and take a deep breath before taking the next call.
• After a truly annoying customer (I know, most customers can be annoying, but I’m talking about the truly trying ones), have reps read something humorous after their “stand, focus, breathe routine”. I find that 2 or 3 jokes or one of the Reader’s Digest “Life’s Like That” stories can be effective. (Sample stories can be found online at: http://www.readersdigest.ca/laugh_search.html.)
Yes, this means that there will be a 15 – 20 second lag between the calls, but the next calls will go far more smoothly and quickly as a result. (And yes, timed trials we conducted support this assertion.)
Story #2
This time, the rep was unable to resolve my problem and didn’t really understand it anyway. After multiple attempts, I quietly said something along the lines of, “I know from my own work that supervisors often have codes and access to files that other reps don’t. Could you please put me through to a supervisor.”
His answer: “No.”
Thinking he hadn’t understood (his English was not great), I tried it another way. Again, I was told no. No explanation, no apology, just a curt “no”. Then I heard a click followed by a brief silence and then a dial tone. The rep had hung up on me!
I had waited nearly 10 minutes to get to that rep and he had hung up on me!
I dialled again. And waited on hold listening to insipid music. Again. When I finally got through to the company and was able to find someone to whom I could complain, I was told that he had probably hung up on me because the company’s reps had to answer a certain number of calls an hour and I had “probably taken up too much of his time”. I was also informed that CSRs were expected to handle their own calls without having to call upon their supervisors. The implication was that my actions were the reason that the rep had been forced to hang up on me.
Needless to say, we are no longer dealing with that company.
Note to marketers:
• Train your CSRs adequately and do not let them on the lines until they thoroughly understand your product, how it works and how to deal with things that typically go wrong, and how clients should be handled.
• Although you may encourage your reps to resolve customer problems within a certain amount of time, do NOT assign your reps quotas or reward them for getting through calls in shorter and shorter periods of time. Instead, determine how to reward CSRs for how effectively they handle calls and how good a job they do of making clients feel like they have been well-treated.
• Ensure that CSRs know they must never hang up on customers, no matter what.
And now, the tale that promoted this week’s blog post in the first place:
Story #3
Once again, a company insisted it had not made a mistake despite evidence to the contrary.
What happened? The short version: My eldest asked me when her cell phone contract was up. Not realizing that she was thinking of getting her own Blackberry and taking over the payments herself (mom had been footing the bill for the past 10 years or so), my answer was a distracted, “Uh... this August”.
A few days later she came home and proudly showed me her new Blackberry. The twist: My daughter had gone with a new carrier – but had asked to keep her existing phone number. Without speaking with me – the person in whose name the phone was listed and the person who paid the bills – the carrier I had been with for 20 years let the number be ported out. The problem is that there had been 3 phones on a single shared plan.
As soon as I learned what happened I immediately called *** to see if there would be a problem. There was. Someone in “customer retention” (hah!) had taken all three numbers off the plan and had put the two remaining phones on a different, more expensive plan. All without talking to me, the person in whose name had been listed.
At first the rep suggested that my daughter had pretended to be me (which was not the thing to say if trying to ingratiate yourself to a customer). After I explained that was impossible because she had had to show her driver’s licence and another piece of ID in her own name to get her Blackberry, the rep admitted it was their fault... but added there was no way the plan could be reinstated because it no longer existed... even though this had all happened in the previous 90 minutes or so.
After agreeing to move my youngest’s phone to a student plan that was almost (but not quite) as good as the original one, I was told I would have to send them proof of university enrolment and ID. I faxed the papers the following day. 10 days later, I called to make a payment and found that I had been charged over $250: $100 for my eldest daughter cancelling the 1st cell phone 3 days before the contact end date (even though I was told this would be waived because it had only been a few days and because *** had not checked with me) and the rest was “over-minute use” because of the type of phone plan the retention rep had put us on.
When I explained that I had indeed faxed the papers, I got transferred. 7 minutes and 27 seconds later (according to my phone’s timer) I got to explain the whole story again to someone in the hopes of getting the charges reversed. The response, in a supercilious tone: “Well, if you had sent the papers in, then we would have them, wouldn’t we?”
Despite seeing red, and purple and a hazy green colour, I kept my cool and said that I could send a fax confirmation sheet to prove what I was saying. When the rep’s reply suggested that I was making it up, I hung up and tried again.
It took over two hours, but thanks to wonderful rep named Robin – who was the very first person to apologize – it will be resolved at the beginning of next week. (Though I did have to fax the original papers, a new note and the original confirmation notice twice more in the interim.)
Note to marketers:
• Let your CSRs know that it is never, ever, ever, okay to speak in a patronizing tone to customers or to be rude to them.
• Make sure your database can flag customers who repeatedly call in looking for rebates or giving you reasons why bills are not being paid, etc.
Then, when a client calls in, if there are no flags, make sure the CSR takes the customer’s side and tries to help – especially when the client has a long-term relationship with your company.
Even if there is a flag in place, CSRs need to treat the customers with respect (provided the client is not unreasonably rude) and listen objectively to what is being said. When uncertain about how to proceed, CSRs must know to involve their supervisors.
A few other suggestions to help keep the mood right
• Place mirrors next to the reps’ cubicles and encourage them to smile at themselves at the beginning of each call – but not during the call as it tends to distract CSRs.
• Don’t allow your CSRs to work double shifts as their ability to handle calls “nicely” and effectively diminishes the longer they answer calls.
• Provide CSRs with a quiet, phone-free place where they can take their breaks for people who want “silence” and an area where people can watch funny flicks if they prefer.
• Discourage reps from complaining about their callers during their breaks or they will return to their headsets more stressed than before the break. Again, this is supported by blood pressure experiments we conducted in multiple call centres.
• Provide free tea, coffee, pop, water and light snacks in the rest areas. When people return to their stations refreshed, rehydrated and reenergized, their ability to deliver excellent customer service increases significantly.
As mentioned at the outset, the Customer Service Reps who handle your inbound calls are often the only people with whom your customers speak on a regular basis. If these CSRs don’t do a good job, you risk losing customers. On the other hand, if they provide excellent service, you will likely enjoy a corresponding increase in customer loyalty. So... it makes sense pay CSRs well and treat them even better.
If you would like more on info on this topic, please feel free to contact me: jmc@theQgroup.com or 416-424-6644.
Regards, Jane-Michele Clark
Saturday, August 21, 2010
Friday, August 13, 2010
New Consumer Expectations re Customer Service Contacts
We all know that good customer service is paramount to growing a business and increasing profitability. What many managers are failing to realize, however, is that rapid changes in technology have lead to equally rapid changes in consumer expectations about what constitutes the delivery of quality customer service.
A survey of 750 people of all ages, from all parts of the country reveals seven areas in which companies should pay heed.
1) Preserve me from auto-attendant hell! Customers are becoming increasingly annoyed and frustrated with having to sift through myriad options, and having to listen to multiple prompt levels, only to find out after 2 or more minutes that the information they are seeking is not on the menu.
Worse is hearing a recording say that the desired service of information is only available through the company’s website.
The worst of all, however, is when the auto-attendant uses voice recognition – but doesn’t ‘recognize’ your voice. Those of you who suffered through the days of “Emily” before she was replaced will empathise with that remark.
It’s understandable that companies want to reduce costs by using auto attendants and, there’s no question that these are valuable tools. Yet, people want to connect with human beings; they don’t want to listen to a long list of prompts – especially not if they are having a problem (and let’s face it, that’s what usually triggers the call in the first place).
Three thoughts expressed by about one-third of respondents:
"If I had access to a computer at the time, I would not have called in the first place.”
“If I had wanted to look it up online, I could have – but I when I choose to pick up the phone, I expect it to be answered.”
“When I have a problem, there is no satisfaction in typing something in an online box and hoping someone will get back to me at some point – and that they will actually answer my question properly.”
To keep customers happy...
• Always make it easy for customers to reach a human being – from the first menu.
• Do not program your system so that customers are returned to the initial menu if they hit “0”. When customers try to zero-out, they should either get placed in a queue to speak with a rep, or told what button to push to reach a live person.
• Give people the option of voice prompt or touch prompt.
• If you do use an auto-attendant, limit the number of menus to two rounds of choices before the customer reaches a human being.
• If you have asked the customer to key in account information, make sure the profile transfers with the call.
• If the call has been answered by a company rep who needs to transfer the call to another department, do not put the customer back into a long queue. Instead, make it possible for your customer service rep to be able to jump to the front of the line. The initial agent should also be taught to stay on the call with the client until the next rep has picked up. Once this happens, the first rep should introduce the caller and give rep #2 a précis of the situation so the customer doesn’t feel like he or she is having to start all over again.
2) Don’t make me wait more than a couple of minutes in a phone queue. Many companies are making clients wait 15 minutes or more in a phone queue. Anything more than 2-3 minutes is considered unacceptable by more than 80% of customers surveyed.
During period of high call volumes...
• Have overload capacity – either by having part-timers who work from home (à la Pizza Pizza way), or by engaging another call centre to work on a contingency basis. By monitoring your call patterns, however, you should be able to determine when it is most necessary to have extra staff on hand.
• Let customers know how long they will have to wait to speak with an agent and, if the wait period exceeds three minutes, include the option of having a customer leave a message to be called back – or of keying in the number where they can be reached.
It is important to let customers know their call will be returned within 15 – 30 minutes max. if you are going to opt for this solution. And make sure that this actually happens.
Customers hate being told their call will be returned within one business day. The following thought was articulated by many survey participants: “I hate being told that they will get back to me in one business day. I don’t know if they will or they won’t. Besides, that is telling me that they will return the call when it’s convenient for them, whether or not it’s convenient for me at that time. How arrogant.”
• Periodically update customers as to how much longer they will need to wait to speak with an agent. This one action can have a dramatic impact on how customers perceive the wait time.
• Give customers the option of holding with or without music. If you do include music, ensure that the selection will appeal to a broad range of clients, or is targeted to your customer demographics. We learned of one company who lost over 2% of its client base within 3 months of installing a new phone system. Investigation revealed the problem to be the heavy metal and rap music that played when customers were hold – customers who were primarily seniors!
3) Give me a toll-free number. With longer and longer wait times becoming commonplace, customers truly object to having to hold when they are paying long distance charges – especially when they are calling to resolve a problem they believe you have created for them.
4) Don’t make me quote chapter and verse about my account to get simple information. In these days of increased white collar crime, it is reasonable, and sensible, for companies to protect their customers by ascertaining that they are dealing with the correct person before discussing an account. However, 3 key questions should be the limit. Beyond that, it takes up too much time (costing the company money) and only frustrates your client.
Better yet, consider implementing a password.
Further, if the call needs to be transferred to another department’s rep, make sure the customer is not required to re-verify his or her identity.
5) Employ phone reps who speak English well with and without a strong accent... and make sure they are properly trained. Nearly 70% of participants expressed some level of dissatisfaction with calls that are handled by call centres in other countries when the person on the other end of the line is difficult to understand, or cannot seem to easily grasp the problem to be solved.
6) Give me more flexibility in how I contact you on any given day.
As communication options increase, so should the options that customers have for contacting your company.
• Offer clients the choice of scheduling appointments by going on-line or using their PDA to access a special appointment site.
• Let customers send a text message or e-mail to request that customer service call them within the hour.
• Enable customers to access their accounts on-line – and give them the ability to change billing and service options while there. Create apps that work with new mobile devices.
Giving customers (who want it) the ability to interact more with their accounts will make them happier – and has the added benefit of saving companies money and employee time.
7) Don’t tell me how I have to deal with you. This is similar to the above point, but the respondents’ distinction is that not only do they want the flexibility on choosing how to communicate with companies, but they want choices in terms of the ongoing relationship.
Right now there are multiple generations of customers – which means multiple ways in which people want to interact with companies. Don’t force everyone into the same mold or you risk alienating at least one of the generational groups.
For instance, it makes no sense to tell someone who is older and computer-phobic that they can only get their bills on-line (and yes, a large percentage of people 60 years and older does not trust on-line “banking” and “account management” in any form)… just as it could cost you a customer if you were to tell a Gen Xer that there is no on-line access to their accounts.
The research underscored one key point: More than ever it’s important to know how your customers want to be treated – and to deal with them their way.
If you would like more info on any of the above suggestions, please feel free to contact me: jmc@theQgroup.com or 416-424-6644.
Regards, Jane-Michele Clark
A survey of 750 people of all ages, from all parts of the country reveals seven areas in which companies should pay heed.
1) Preserve me from auto-attendant hell! Customers are becoming increasingly annoyed and frustrated with having to sift through myriad options, and having to listen to multiple prompt levels, only to find out after 2 or more minutes that the information they are seeking is not on the menu.
Worse is hearing a recording say that the desired service of information is only available through the company’s website.
The worst of all, however, is when the auto-attendant uses voice recognition – but doesn’t ‘recognize’ your voice. Those of you who suffered through the days of “Emily” before she was replaced will empathise with that remark.
It’s understandable that companies want to reduce costs by using auto attendants and, there’s no question that these are valuable tools. Yet, people want to connect with human beings; they don’t want to listen to a long list of prompts – especially not if they are having a problem (and let’s face it, that’s what usually triggers the call in the first place).
Three thoughts expressed by about one-third of respondents:
"If I had access to a computer at the time, I would not have called in the first place.”
“If I had wanted to look it up online, I could have – but I when I choose to pick up the phone, I expect it to be answered.”
“When I have a problem, there is no satisfaction in typing something in an online box and hoping someone will get back to me at some point – and that they will actually answer my question properly.”
To keep customers happy...
• Always make it easy for customers to reach a human being – from the first menu.
• Do not program your system so that customers are returned to the initial menu if they hit “0”. When customers try to zero-out, they should either get placed in a queue to speak with a rep, or told what button to push to reach a live person.
• Give people the option of voice prompt or touch prompt.
• If you do use an auto-attendant, limit the number of menus to two rounds of choices before the customer reaches a human being.
• If you have asked the customer to key in account information, make sure the profile transfers with the call.
• If the call has been answered by a company rep who needs to transfer the call to another department, do not put the customer back into a long queue. Instead, make it possible for your customer service rep to be able to jump to the front of the line. The initial agent should also be taught to stay on the call with the client until the next rep has picked up. Once this happens, the first rep should introduce the caller and give rep #2 a précis of the situation so the customer doesn’t feel like he or she is having to start all over again.
2) Don’t make me wait more than a couple of minutes in a phone queue. Many companies are making clients wait 15 minutes or more in a phone queue. Anything more than 2-3 minutes is considered unacceptable by more than 80% of customers surveyed.
During period of high call volumes...
• Have overload capacity – either by having part-timers who work from home (à la Pizza Pizza way), or by engaging another call centre to work on a contingency basis. By monitoring your call patterns, however, you should be able to determine when it is most necessary to have extra staff on hand.
• Let customers know how long they will have to wait to speak with an agent and, if the wait period exceeds three minutes, include the option of having a customer leave a message to be called back – or of keying in the number where they can be reached.
It is important to let customers know their call will be returned within 15 – 30 minutes max. if you are going to opt for this solution. And make sure that this actually happens.
Customers hate being told their call will be returned within one business day. The following thought was articulated by many survey participants: “I hate being told that they will get back to me in one business day. I don’t know if they will or they won’t. Besides, that is telling me that they will return the call when it’s convenient for them, whether or not it’s convenient for me at that time. How arrogant.”
• Periodically update customers as to how much longer they will need to wait to speak with an agent. This one action can have a dramatic impact on how customers perceive the wait time.
• Give customers the option of holding with or without music. If you do include music, ensure that the selection will appeal to a broad range of clients, or is targeted to your customer demographics. We learned of one company who lost over 2% of its client base within 3 months of installing a new phone system. Investigation revealed the problem to be the heavy metal and rap music that played when customers were hold – customers who were primarily seniors!
3) Give me a toll-free number. With longer and longer wait times becoming commonplace, customers truly object to having to hold when they are paying long distance charges – especially when they are calling to resolve a problem they believe you have created for them.
4) Don’t make me quote chapter and verse about my account to get simple information. In these days of increased white collar crime, it is reasonable, and sensible, for companies to protect their customers by ascertaining that they are dealing with the correct person before discussing an account. However, 3 key questions should be the limit. Beyond that, it takes up too much time (costing the company money) and only frustrates your client.
Better yet, consider implementing a password.
Further, if the call needs to be transferred to another department’s rep, make sure the customer is not required to re-verify his or her identity.
5) Employ phone reps who speak English well with and without a strong accent... and make sure they are properly trained. Nearly 70% of participants expressed some level of dissatisfaction with calls that are handled by call centres in other countries when the person on the other end of the line is difficult to understand, or cannot seem to easily grasp the problem to be solved.
6) Give me more flexibility in how I contact you on any given day.
As communication options increase, so should the options that customers have for contacting your company.
• Offer clients the choice of scheduling appointments by going on-line or using their PDA to access a special appointment site.
• Let customers send a text message or e-mail to request that customer service call them within the hour.
• Enable customers to access their accounts on-line – and give them the ability to change billing and service options while there. Create apps that work with new mobile devices.
Giving customers (who want it) the ability to interact more with their accounts will make them happier – and has the added benefit of saving companies money and employee time.
7) Don’t tell me how I have to deal with you. This is similar to the above point, but the respondents’ distinction is that not only do they want the flexibility on choosing how to communicate with companies, but they want choices in terms of the ongoing relationship.
Right now there are multiple generations of customers – which means multiple ways in which people want to interact with companies. Don’t force everyone into the same mold or you risk alienating at least one of the generational groups.
For instance, it makes no sense to tell someone who is older and computer-phobic that they can only get their bills on-line (and yes, a large percentage of people 60 years and older does not trust on-line “banking” and “account management” in any form)… just as it could cost you a customer if you were to tell a Gen Xer that there is no on-line access to their accounts.
The research underscored one key point: More than ever it’s important to know how your customers want to be treated – and to deal with them their way.
If you would like more info on any of the above suggestions, please feel free to contact me: jmc@theQgroup.com or 416-424-6644.
Regards, Jane-Michele Clark
Tuesday, August 10, 2010
How to Make Yourself Make Cold Calls
Cold calling. For some people, just thinking those words makes their stomach hurt and sweat prickle their sensitive spots. Fear. Fear of cold calling is a powerful thing.
In June 2010 we asked 150 people with various job titles, working for different types of companies, and with different levels of experience, what they hated most about their jobs. 139 of these people put calling strangers, or even clients for whom they had to ask for help or for money, in the top 5 things they hated at work. With sales reps, cold calling made it to the top 3 100% of the time.
When asked why cold calling was so bad, most people cited something related to fear. Fear of failure. Fear of rejection. Fear of looking/ sounding stupid. Fear of failure. Fear of... well the list was long. Really long. And the interesting thing is that most of the reasons or examples people gave to explain their answers were more about what they imagined would or could happen, rather than anything bad that they actually experienced. Or if they had encountered the problem, it was not a usual occurrence.
One way or another fear can wreak more havoc than many other things because it's devious. It's truly sneaky, finding myriad manner of ways to manifest itself.
No matter whether you are fresh out of school and trying to get your first job interview, or are well-established manager, or have been running your own company for years, that little inner voice can be a real problem when it comes to making phone calls. Nearly 90% of people who have to make calls for work say that they often procrastinate and welcome even the smallest reason as an excuse to talk themselves out of making the very calls upon which their livelihoods depend.
During this study, and over the years too, many business executives have told me that their self talk is more destructive than just about anything anyone else can do to them.
If you listen to the chatter of this little voice, it will wear you down faster than chalk being dragged over rough cement. So what can you do when you can't pick up that phone because it suddenly weighs 1,000 pounds?
Here are some suggestions from "regular" people who are succeeding in small and/or spectacular ways (from "What Works For Me", a compilation of useful tips and thoughts that I started writing years ago):
"I get a glass of water to keep things lubricated and I don't let myself have a coffee until I've made at least 10 calls." ~ Fred B., Seattle, WA
"I make a list of 20 calls I need to make the next day just before I go home - along with notes about what I need to say. If I don't have the list, my mind seems to wander to any other task at hand so that I can avoid the calls." ~ Wendy M., BC
"I tape the phone to my wrist until I reach my day's quota!" ~ Unknown
"I don't check my e-mails until I've made the calls. That way I can't procrastinate by finding reasons to avoid getting on the phone." ~ Sharif Z., New York, NY
"I give my assistant $20. If I don't have the calls made by noon (and show her my notes), then she gets to keep the $20. It cost me over $200 before I got into a regular morning call routine." ~ Sylvia B., Chicago, IL
"I stand to make my calls because it gives me more energy. I don't get to sit down at my desk until the calls have been made." ~ Tammy H., CA
"I choose the least important call for the first one of the day. I tell myself that it's okay to blow it because it doesn't really count. Often I ace the call and get the appointment, the momentum just carries me. Even if it doesn't go well, that call has started the ball rolling and I'm okay once I get going." ~ Bill E., London, ON
If none of these ideas help when you're scared (yeah, I know, you have a different word for it), then remember this chant. It's one that Jack Canfield taught me years ago - one that always works to center me and give me a smile before getting on with the task. The only trick is to actually remember to do the chant.
And what is it you might ask? It's...wait for it... and sing it to the traditional Ohm sound. It's "Ohhhh what the heckkkkk, go for it anyway!"
Going for it "anyway" is really important. You need to take that first step, make that first call, because as soon as you start taking action, you will find it easier to keep going. People who force themselves to make calls find that they gain momentum and courage with each number dialed, and each call seems to get progressively easier. So just start and see what happens.
“Yeah, right,” you say. “But how do I get myself to take that first step?”
Tune in next time for Part II. aIn the meantime, we invite you to read for: "Getting better results through cold calling" (http://bit.ly/b5IlYJ) and remember, have fun and be prepared to “go out on a limb because that is where the fruit is.”
Jane-Michèle Clark
In June 2010 we asked 150 people with various job titles, working for different types of companies, and with different levels of experience, what they hated most about their jobs. 139 of these people put calling strangers, or even clients for whom they had to ask for help or for money, in the top 5 things they hated at work. With sales reps, cold calling made it to the top 3 100% of the time.
When asked why cold calling was so bad, most people cited something related to fear. Fear of failure. Fear of rejection. Fear of looking/ sounding stupid. Fear of failure. Fear of... well the list was long. Really long. And the interesting thing is that most of the reasons or examples people gave to explain their answers were more about what they imagined would or could happen, rather than anything bad that they actually experienced. Or if they had encountered the problem, it was not a usual occurrence.
One way or another fear can wreak more havoc than many other things because it's devious. It's truly sneaky, finding myriad manner of ways to manifest itself.
No matter whether you are fresh out of school and trying to get your first job interview, or are well-established manager, or have been running your own company for years, that little inner voice can be a real problem when it comes to making phone calls. Nearly 90% of people who have to make calls for work say that they often procrastinate and welcome even the smallest reason as an excuse to talk themselves out of making the very calls upon which their livelihoods depend.
During this study, and over the years too, many business executives have told me that their self talk is more destructive than just about anything anyone else can do to them.
If you listen to the chatter of this little voice, it will wear you down faster than chalk being dragged over rough cement. So what can you do when you can't pick up that phone because it suddenly weighs 1,000 pounds?
Here are some suggestions from "regular" people who are succeeding in small and/or spectacular ways (from "What Works For Me", a compilation of useful tips and thoughts that I started writing years ago):
"I get a glass of water to keep things lubricated and I don't let myself have a coffee until I've made at least 10 calls." ~ Fred B., Seattle, WA
"I make a list of 20 calls I need to make the next day just before I go home - along with notes about what I need to say. If I don't have the list, my mind seems to wander to any other task at hand so that I can avoid the calls." ~ Wendy M., BC
"I tape the phone to my wrist until I reach my day's quota!" ~ Unknown
"I don't check my e-mails until I've made the calls. That way I can't procrastinate by finding reasons to avoid getting on the phone." ~ Sharif Z., New York, NY
"I give my assistant $20. If I don't have the calls made by noon (and show her my notes), then she gets to keep the $20. It cost me over $200 before I got into a regular morning call routine." ~ Sylvia B., Chicago, IL
"I stand to make my calls because it gives me more energy. I don't get to sit down at my desk until the calls have been made." ~ Tammy H., CA
"I choose the least important call for the first one of the day. I tell myself that it's okay to blow it because it doesn't really count. Often I ace the call and get the appointment, the momentum just carries me. Even if it doesn't go well, that call has started the ball rolling and I'm okay once I get going." ~ Bill E., London, ON
If none of these ideas help when you're scared (yeah, I know, you have a different word for it), then remember this chant. It's one that Jack Canfield taught me years ago - one that always works to center me and give me a smile before getting on with the task. The only trick is to actually remember to do the chant.
And what is it you might ask? It's...wait for it... and sing it to the traditional Ohm sound. It's "Ohhhh what the heckkkkk, go for it anyway!"
Going for it "anyway" is really important. You need to take that first step, make that first call, because as soon as you start taking action, you will find it easier to keep going. People who force themselves to make calls find that they gain momentum and courage with each number dialed, and each call seems to get progressively easier. So just start and see what happens.
“Yeah, right,” you say. “But how do I get myself to take that first step?”
Tune in next time for Part II. aIn the meantime, we invite you to read for: "Getting better results through cold calling" (http://bit.ly/b5IlYJ) and remember, have fun and be prepared to “go out on a limb because that is where the fruit is.”
Jane-Michèle Clark
Tuesday, August 3, 2010
The Role of Loyalty Programs Today
Earlier today I promised to write a little more on the role of loyalty programs today. This is not an exhaustive take on the matter, but should give you a little insight into the way things are moving.
It is commonly accepted that well-conceived and executed, formal customer loyalty programs can increase retention rates as well as revenue and profitability per customer. Despite the expectation that over $2 billion will be spent worldwide on customer loyalty programs in 2010, however, less than 15% of companies today are leveraging their customer loyalty programs to advantage.
In part this is because fewer and fewer programs are being well-managed, and in part because the way rewards-based loyalty programs are being perceived by customers is changing.
Although having a loyalty program is as de rigueur as having a website these days, customers are increasingly indicating that these programs do not necessarily make them loyal customers because so many companies with similar offerings have programs with similar rewards.
For this reason, my advice to companies today is this: Only join, or introduce, a formal rewards-based customer loyalty program if....
• Your primary reason for introducing the loyalty program is to capture data... and you ensure that your systems are designed to allow for easy analysis of the data, and that marketing initiatives are deployed accordingly; and
• You want to use the information to better understand your customers’ behaviour patterns and preferences in order to improve the product offering, customize service and create a more meaningful relationship with the customer, and
• You are prepared to invest sufficiently in the program to provide meaningful benefits to your customers – benefits that will actually enable you to shape customer behaviour; and
• You understand the benefits of customizing services and/or packages and/or communication to the specific needs of individual customer cluster groups; and
• You are willing to offer special benefits to your best customers – and think that it is okay to treat your top clients like VIPs (yes, excellent service to all, but kingly treatment for the top tier).
That’s a lot of ands – but you need to take this to heart if you want a loyalty program that reaps rewards for you.
Why? Two reasons.
1) Rewards alone don’t create loyal customers.
2) Customers expect that, in exchange for allowing marketers to track their purchases and other consumer behaviours that they will be rewarded with more personalized, customized service.
Point #1: Rewards
Despite nearly 70% of participants saying they are satisfied with the loyalty programs in which they participate, less than 25% say that the programs make them loyal to the company running the program.
In nearly 70% of cases, people have come to view these programs simply as a way to get a little extra perk when they patronize retailers and service providers they like for other reasons. They participate in all the programs offered by the types of retailers they frequent so as not to miss out.
The following comments from a few of the research respondents are representative of the broader picture:
About gasoline: “I play in the Esso, Shell and Petro-Canada games. That way, I can go to whatever gas station I find on the right hand side of the road when my gas light goes on. I don’t really care whose gas I buy because it’s all the same to me and it’s all the same price, too.”
What business travellers said about hotels: “When I book a hotel, I choose one that, in order of priority, is a) close to the conference or meeting, b) within my corporate allowance, c) known for being clean, safe and accommodating and d) has a points program. If the first things aren’t in place, it won’t matter what kind of rewards program the place offers; I simply won’t stay there.”
About grocery retailers: “If the program is free, I sign up. If not, I don’t. I always show my card when I’m in the store, but I don’t decide where I’m going to shop because of the card. If there are great specials or points on certain items, I may buy them, even if I hadn’t plan to when I entered the store, but as I said, things other than the loyalty card make me decide where I’m going to do my groceries.”
Given a choice between frequenting a retailer or service provider that was conveniently located but had no loyalty program – and one with a loyalty program that was not conveniently located, 90% chose convenience over loyalty program, as long as the companies’ reputation were similar and the price gap not too large.
Interesting observation: As a result of the glut of loyalty programs in the market, collectors are becoming loyal to the reward and points play, rather than to the company.
The only way to change this is to either have a loyalty program that is superior to anything else – and this includes almost unprecedented levels of customized service and communication
In terms of the rewards themselves, they need to be attainable. In many instances, respondents indicate that the rewards are becoming harder and harder to earn and that this is making the rewards program less of a motivating factor. This is supported by a recent CMO Study which finds that 38% of participants overall say there are too many conditions and restrictions on the programs and that 37% of people feel the rewards lack any real value.
Point #2: Recognition
For the top tier clients, the one who represent the highest revenue contribution per person – and are also usually the most profitable, too – recognition is more important than reward. Indeed, the most active participants in a program expect that the company reps should be able to recognize their value to the company and they should be given special treatment as a result. Fewer than 10% of companies surveyed, however, say they have special tools in place to a) recognize the best customers and b) provide them with special treatment in any case.
Many airlines and hotels are notable exceptions to this – and room and seat upgrades and other special treatment can cement relationships with the best clients. Said one senior exec: “I travel a lot and my airline knows me. When my meeting is done early, I just head to the airport. Even if I have a later reservation, I know they’ll get me on the next flight, even if they have to bump another passenger. I don’t care about free trips; I do care about getting home sooner.”
What Does All This Mean in Terms of The Role of Loyalty Programs Today?
In an age where is an increasing gap between customer satisfaction and loyalty, it is clear that true loyalty comes from having customers who feel like they are valued. It’s equally clear that the purpose of a customer loyalty program is to give marketers the insights that will help them treat special clients like VIPs. This will, in turn, lead to higher retention levels, large revenues per transaction, more referrals and better profitability overall.
If we look at the evolution of loyalty programs, we’ll see that this is not a new concept. For more on this, please read: The evolution of loyalty programs: http://bit.ly/cBW6dc
If you would like clarification on anything, please feel free to contact me: jmc@theQgroup.com.
Until next time, remember to have fun and be prepared to “go out on a limb because that is where the fruit is.”
Jane-Michèle Clark
It is commonly accepted that well-conceived and executed, formal customer loyalty programs can increase retention rates as well as revenue and profitability per customer. Despite the expectation that over $2 billion will be spent worldwide on customer loyalty programs in 2010, however, less than 15% of companies today are leveraging their customer loyalty programs to advantage.
In part this is because fewer and fewer programs are being well-managed, and in part because the way rewards-based loyalty programs are being perceived by customers is changing.
Although having a loyalty program is as de rigueur as having a website these days, customers are increasingly indicating that these programs do not necessarily make them loyal customers because so many companies with similar offerings have programs with similar rewards.
For this reason, my advice to companies today is this: Only join, or introduce, a formal rewards-based customer loyalty program if....
• Your primary reason for introducing the loyalty program is to capture data... and you ensure that your systems are designed to allow for easy analysis of the data, and that marketing initiatives are deployed accordingly; and
• You want to use the information to better understand your customers’ behaviour patterns and preferences in order to improve the product offering, customize service and create a more meaningful relationship with the customer, and
• You are prepared to invest sufficiently in the program to provide meaningful benefits to your customers – benefits that will actually enable you to shape customer behaviour; and
• You understand the benefits of customizing services and/or packages and/or communication to the specific needs of individual customer cluster groups; and
• You are willing to offer special benefits to your best customers – and think that it is okay to treat your top clients like VIPs (yes, excellent service to all, but kingly treatment for the top tier).
That’s a lot of ands – but you need to take this to heart if you want a loyalty program that reaps rewards for you.
Why? Two reasons.
1) Rewards alone don’t create loyal customers.
2) Customers expect that, in exchange for allowing marketers to track their purchases and other consumer behaviours that they will be rewarded with more personalized, customized service.
Point #1: Rewards
Despite nearly 70% of participants saying they are satisfied with the loyalty programs in which they participate, less than 25% say that the programs make them loyal to the company running the program.
In nearly 70% of cases, people have come to view these programs simply as a way to get a little extra perk when they patronize retailers and service providers they like for other reasons. They participate in all the programs offered by the types of retailers they frequent so as not to miss out.
The following comments from a few of the research respondents are representative of the broader picture:
About gasoline: “I play in the Esso, Shell and Petro-Canada games. That way, I can go to whatever gas station I find on the right hand side of the road when my gas light goes on. I don’t really care whose gas I buy because it’s all the same to me and it’s all the same price, too.”
What business travellers said about hotels: “When I book a hotel, I choose one that, in order of priority, is a) close to the conference or meeting, b) within my corporate allowance, c) known for being clean, safe and accommodating and d) has a points program. If the first things aren’t in place, it won’t matter what kind of rewards program the place offers; I simply won’t stay there.”
About grocery retailers: “If the program is free, I sign up. If not, I don’t. I always show my card when I’m in the store, but I don’t decide where I’m going to shop because of the card. If there are great specials or points on certain items, I may buy them, even if I hadn’t plan to when I entered the store, but as I said, things other than the loyalty card make me decide where I’m going to do my groceries.”
Given a choice between frequenting a retailer or service provider that was conveniently located but had no loyalty program – and one with a loyalty program that was not conveniently located, 90% chose convenience over loyalty program, as long as the companies’ reputation were similar and the price gap not too large.
Interesting observation: As a result of the glut of loyalty programs in the market, collectors are becoming loyal to the reward and points play, rather than to the company.
The only way to change this is to either have a loyalty program that is superior to anything else – and this includes almost unprecedented levels of customized service and communication
In terms of the rewards themselves, they need to be attainable. In many instances, respondents indicate that the rewards are becoming harder and harder to earn and that this is making the rewards program less of a motivating factor. This is supported by a recent CMO Study which finds that 38% of participants overall say there are too many conditions and restrictions on the programs and that 37% of people feel the rewards lack any real value.
Point #2: Recognition
For the top tier clients, the one who represent the highest revenue contribution per person – and are also usually the most profitable, too – recognition is more important than reward. Indeed, the most active participants in a program expect that the company reps should be able to recognize their value to the company and they should be given special treatment as a result. Fewer than 10% of companies surveyed, however, say they have special tools in place to a) recognize the best customers and b) provide them with special treatment in any case.
Many airlines and hotels are notable exceptions to this – and room and seat upgrades and other special treatment can cement relationships with the best clients. Said one senior exec: “I travel a lot and my airline knows me. When my meeting is done early, I just head to the airport. Even if I have a later reservation, I know they’ll get me on the next flight, even if they have to bump another passenger. I don’t care about free trips; I do care about getting home sooner.”
What Does All This Mean in Terms of The Role of Loyalty Programs Today?
In an age where is an increasing gap between customer satisfaction and loyalty, it is clear that true loyalty comes from having customers who feel like they are valued. It’s equally clear that the purpose of a customer loyalty program is to give marketers the insights that will help them treat special clients like VIPs. This will, in turn, lead to higher retention levels, large revenues per transaction, more referrals and better profitability overall.
If we look at the evolution of loyalty programs, we’ll see that this is not a new concept. For more on this, please read: The evolution of loyalty programs: http://bit.ly/cBW6dc
If you would like clarification on anything, please feel free to contact me: jmc@theQgroup.com.
Until next time, remember to have fun and be prepared to “go out on a limb because that is where the fruit is.”
Jane-Michèle Clark
The Evolution of Loyalty Programs
By taking a partial look at the evolution of customer loyalty programs, it is easy to see why so many rewards-based programs are not delivering what the customer really wants.
According to the Turkish tour guide who showed us around the ruins, the first documented “loyalty” program was recorded in Ephesus (ancient Turkey) in the 2nd Century AD. Rival oil merchants apparently would offer customers a free amphora refill every 5th time and would give customers special stones to mark each of the first 4 purchases.
Apocryphal? Who really knows? What is clear, however, is that merchants have been finding ways to encourage customer loyalty for centuries through use of discounts, “buy one get one free”, punch cards and various other types of offers.
In the 1970s, the first of the airline frequent flier programs made its debut. At the time it was a powerful way to get people to choose one airline over another. As more airlines jumped on the loyalty bandwagon, and more people started accumulating frequent flier miles in different programs, however, lines were drawn. If someone were racking up miles in one program, flying on another airline meant making a negative decision against himself (or herself).
The natural human response: Join the other loyalty programs.
Seeing the sign-ups and changing reservation patterns, car rental companies, hotels and others in the travel business entered the fray. As did large retailers such as Zellers, sub stores, coffee chains, grocery stores, video rental outlets... you name it and today it probably has some kind of loyalty program. You’ll also find online programs such as Mypoints, Ebates and other that reward loyal shoppers. There are even non-profit online services such as SchoolPop and iGive.com that have been created with built-in have loyalty building mechanisms.
The result is that today, over 80% of North Americans participate in at least one loyalty program*. One third belongs to two or more – and a whopping 10% of North Americans now participates in more than 20 loyalty programs.
According to COLLOQUY, the average for the US: 14.1 programs. For Canadians the average is 17.5. Not surprising given the proliferation of such programs. In Europe the numbers are lower, but on the rise there, too, nevertheless. According to both Forrester Research and META Group, people’s propensity to join such programs is not expected to diminish in the near future, despite the diminishing of perceived value to the average consumer.
Why is that? In our parents’ and grandparents’ day, the “loyalty program” was actually the service provided by the corner store grocer. He built relationships with his loyal customers and they came to count on him. When Mrs. Smith’s had family coming in from the east coast, he made sure to order her dad’s favourite lamb roast. When the White’s daughter was getting married, he ordered in special ink to use on the invitation envelopes. When Mr. Green was injured at work, the grocer brought the 50 lb. bag right to the house because he knew the Greens’ sons were only 2 and 3 years old. As for the beef bones, they were always saved for the Coxwell’s collies.
Customers were loyal to the establishments where they were recognized and treated as though they were special.
For a while, we in North America moved away from expecting this kind of special personalized, customized service, but the pendulum is swinging back.
Today, with consumers understanding that companies can track individual orders and keep track of who spends what with a company, there is a returning desire to receive the old-fashioned corner store recognition.
The advent of social media tools is increasing this expectation, so marketers need to re-examine how they will use their loyalty programs for these programs to remain effective.
Today, a formal rewards-based customer loyalty program must...
• Capture customer demographic, transactional and preference data. Systems must be designed to allow for easy analysis of the data, and marketing initiatives need to be deployed accordingly;
• Make use of the information to better understand customers’ behaviour patterns and preferences in order to improve the product offering, customize service and create more meaningful relationships with customers;
• Receive adequate financial and personnel support to provide customers with relevant benefits – benefits that will actually help to influence customer behaviour;
• Include customized services and/or packages and/or communication that respond to the specific needs of individual customer cluster groups; and
• Offer special benefits to the best customers.
It’s funny, but as we have become more technologically sophisticated, we are seeing a return to older time customer service values... and the marketers who recognize this, and put in place the systems to provide this level of service to the best customers, will be able to capitalize on what is transpiring in the market.
Well, I guess that's it for now. My next post will start to outline some of the things you can do to get more bang from your customer loyalty program buck.
In the meantime, if you would like clarification on anything, please feel free to contact me: jmc@theQgroup.com.
Until next time, remember to have fun and be prepared to “go out on a limb because that is where the fruit is.”
Jane-Michèle Clark
*This figure is hard to quantify, but Jupiter Research puts the figure at +75%, The Q Group Research says 85% and other studies show figures anywhere from 80% - 90%. Differences in regional and demographic skews account for the differences in stats, but most marketers agree that +80% is a reasonable figure.
According to the Turkish tour guide who showed us around the ruins, the first documented “loyalty” program was recorded in Ephesus (ancient Turkey) in the 2nd Century AD. Rival oil merchants apparently would offer customers a free amphora refill every 5th time and would give customers special stones to mark each of the first 4 purchases.
Apocryphal? Who really knows? What is clear, however, is that merchants have been finding ways to encourage customer loyalty for centuries through use of discounts, “buy one get one free”, punch cards and various other types of offers.
In the 1970s, the first of the airline frequent flier programs made its debut. At the time it was a powerful way to get people to choose one airline over another. As more airlines jumped on the loyalty bandwagon, and more people started accumulating frequent flier miles in different programs, however, lines were drawn. If someone were racking up miles in one program, flying on another airline meant making a negative decision against himself (or herself).
The natural human response: Join the other loyalty programs.
Seeing the sign-ups and changing reservation patterns, car rental companies, hotels and others in the travel business entered the fray. As did large retailers such as Zellers, sub stores, coffee chains, grocery stores, video rental outlets... you name it and today it probably has some kind of loyalty program. You’ll also find online programs such as Mypoints, Ebates and other that reward loyal shoppers. There are even non-profit online services such as SchoolPop and iGive.com that have been created with built-in have loyalty building mechanisms.
The result is that today, over 80% of North Americans participate in at least one loyalty program*. One third belongs to two or more – and a whopping 10% of North Americans now participates in more than 20 loyalty programs.
According to COLLOQUY, the average for the US: 14.1 programs. For Canadians the average is 17.5. Not surprising given the proliferation of such programs. In Europe the numbers are lower, but on the rise there, too, nevertheless. According to both Forrester Research and META Group, people’s propensity to join such programs is not expected to diminish in the near future, despite the diminishing of perceived value to the average consumer.
Why is that? In our parents’ and grandparents’ day, the “loyalty program” was actually the service provided by the corner store grocer. He built relationships with his loyal customers and they came to count on him. When Mrs. Smith’s had family coming in from the east coast, he made sure to order her dad’s favourite lamb roast. When the White’s daughter was getting married, he ordered in special ink to use on the invitation envelopes. When Mr. Green was injured at work, the grocer brought the 50 lb. bag right to the house because he knew the Greens’ sons were only 2 and 3 years old. As for the beef bones, they were always saved for the Coxwell’s collies.
Customers were loyal to the establishments where they were recognized and treated as though they were special.
For a while, we in North America moved away from expecting this kind of special personalized, customized service, but the pendulum is swinging back.
Today, with consumers understanding that companies can track individual orders and keep track of who spends what with a company, there is a returning desire to receive the old-fashioned corner store recognition.
The advent of social media tools is increasing this expectation, so marketers need to re-examine how they will use their loyalty programs for these programs to remain effective.
Today, a formal rewards-based customer loyalty program must...
• Capture customer demographic, transactional and preference data. Systems must be designed to allow for easy analysis of the data, and marketing initiatives need to be deployed accordingly;
• Make use of the information to better understand customers’ behaviour patterns and preferences in order to improve the product offering, customize service and create more meaningful relationships with customers;
• Receive adequate financial and personnel support to provide customers with relevant benefits – benefits that will actually help to influence customer behaviour;
• Include customized services and/or packages and/or communication that respond to the specific needs of individual customer cluster groups; and
• Offer special benefits to the best customers.
It’s funny, but as we have become more technologically sophisticated, we are seeing a return to older time customer service values... and the marketers who recognize this, and put in place the systems to provide this level of service to the best customers, will be able to capitalize on what is transpiring in the market.
Well, I guess that's it for now. My next post will start to outline some of the things you can do to get more bang from your customer loyalty program buck.
In the meantime, if you would like clarification on anything, please feel free to contact me: jmc@theQgroup.com.
Until next time, remember to have fun and be prepared to “go out on a limb because that is where the fruit is.”
Jane-Michèle Clark
*This figure is hard to quantify, but Jupiter Research puts the figure at +75%, The Q Group Research says 85% and other studies show figures anywhere from 80% - 90%. Differences in regional and demographic skews account for the differences in stats, but most marketers agree that +80% is a reasonable figure.
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