fewer complaints are not better
Post on 17-Oct-2014
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DESCRIPTION
Most call centers are pressured to “get calls down and reduce talk time”. Time spent on calls is not viewed as investment but simply cost. This webinar builds on the blog and service myths paper and focuses on the silent majority of customers who are unhappy but never complain and show the need and benefit of an effective response/contact management support system. For every incremental dollar invested in handling calls from unhappy or befuddled customers, the company makes three to ten dollars in incremental revenue plus fosters positive word of mouth (WOM) where negative WOM existed in the past. This case compels both CFOs and CMOs to rethink their view of service.TRANSCRIPT
Fewer Complaints Are Not Better
Creating an Aggressive Customer Service System
With John Goodman
AGENDA1. Big Ideas from Strategic Customer Service2. Getting Your CFO Onboard3. Creating an Aggressive Customer Service
System4. 45Sec.com Example5. The Advantages6. 9 Steps on Getting Started
5 MinutesIntroductions
45 MinutesWebinar
10 MinutesQuestions
TODAY’S SPEAKER
John GoodmanVice Chairman of Customer
Care Measurement and Consulting
Big Idea #1
Staff doesn’t cause most customer dissatisfaction…
Sales, products, processes and customers do.
Big Idea #2
It is cheaper to give great service than just good service.
The revenue payoff is 10-20 times the cost.
Big Idea #3
People are still paramount.
Make the front line successful with flexibility and clear explanations.
Big Idea #4
Deliver technology that customers will enjoy.
Delivering psychic pizza via any channel.
Basic Tip of the Iceberg Multiplier is ratio of complaints received to problems in market
Ratio to manager can vary from 1:20 to 1:200
Causes– Effort – Hopelessness– Retribution– Where
1-2% Complain to Manufacturer
10-25% Complain to Local Store or
Channel
75% Do Not Complain
Consumers Who Experience a
Quality Problem…
12
Understand the Causes of Customer Dissatisfaction
- Fails to follow policy
The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes*
Customer20%-30%
Employee 20%
-Wrong expectations- Customer error
- Fails to follow policy- Attitude
Company 40%-60%- Products and services
don’t meet expectations- Marketing miscommunication
- Broken processes
Poorly designed products,processes, and marketing
create most unmet expectations.
Customer expectations
must be set to avoid problems
and surprises.
At least 30% of contacts are preventable
With aggressive complaint solicitation you recoup much of the revenue
Show Unvoiced Complaints Are Costly
It costs five times as much to win a new customer as to keep one!
Get CFO Support by Highlighting Non-complaints (example behavioral data)
IQuestion/problem
experience
II Contact
behavior
IIIContact handling
CustomersCustomers
No Question/problem
experience80%
No Question/problem
experience80%
Question/problem
experience20%
Question/problem
experience20%
IVMarketimpact
Non-contactors
75%
Non-contactors
75%
Satisfied1
50%
Satisfied1
50%
Mollified2
30%
Mollified2
30%
% Definitely Will
Recommend
69%
39%
74%
42%
32%Dissatisfied3
20%
Dissatisfied3
20%
Word of
Mouth**
---
2.9
1.7
4.4
5.5
% Definitely Will Keep
Purchasing
82%
42%
90%
42%
22%
% Very Satisfied with
ABC
81%
40%
82%
52%
35%
Contactors25%
Contactors25%
Getting the Resources: Quantify The Revenue Risk Of The Status Quo
x xx=
=
=
=
=
2,500
3,000
3,000
37,500
46,000Total Customers At Risk
75% Do Not
Complain
25%Complain
200,000Customers
withProblems
20%Dissatisfied
70%Repurchasing
75%Repurchasing
50%Satisfied
90%Repurchasing
30%Mollified
80%Repurchasing
Demonstrating financial impact with the CFO, CMO and the General Counsel
Three strategies: Prevention, Solicitation of Complaints and Improved Response
At $1,000 per customer, $46,000,000 at risk
Quantify The Revenue Payoff of Increased Resolution
=
=
=
=
x xx
=
1,500
2,000
1,500
37,500
42,500Total Customers At Risk
200,000Customers
withProblems
10%Dissatisfied
70%Repurchasing
75%Repurchasing
70%Satisfied
90%Repurchasing
75% Do Not
Complain
25%Complain
20%Mollified
80%Repurchasing
Move resolution from 50% to 70%
Net enhanced bottom line of $3,500,000 with no more calls
At $1,000 per customer, $42,500,000 at risk
Quantify The Revenue Payoff of Increased Accessibility and Resolution
=
=
=
=
x xx
=
5,600
3,200
2,400
30,000
41,200Total Customers At Risk
200,000Customers
withProblems
10%Dissatisfied
70%Repurchasing
75%Repurchasing
70%Satisfied
90%Repurchasing
60% Do Not
Complain
40%Complain
20%Mollified
80%Repurchasing
Move complaint rate from 25% to 40% and resolution from 50% to 70% @ $20/add’l call
Net enhanced bottom line of $4.8 MM in revenue and $1.2 MM gross profit even allowing for 30,000 more calls at cost of $600,000
At $1,000 per customer, $41,200,000 at risk
ROI Calculation in Detail30,000 more calls at $20/call (includes cost of remedy for some calls) = $600k$4.8MM incremental revenue@25% Gross contribution, $1.2MM profitROI is 100% allowing for incremental cost of handling calls.
Negative Word of Mouth avoided – 120,000 cases @ 4/ non-complaint
Objective: Fulfill Customer Expectations
No unpleasant surprisesIf trouble encountered
Accessibility – not average speed of answer up to a point, hours of operation – weekend monitoring of SMTaking ownership, apologyClear, believable, confident explanation Creating an emotional connection rather than just courtesyMoney is often not the best solution
Creating an Aggressive Service System
1. Assure capability for resolution
2. Surface problems as soon as they occur
Causes of Dissatisfaction or Escalation
Lack of flexibility due to lack of authorityLack of knowledge – training or access to informationKnow policy but cannot explain and defend itExplains policy from company perspective but shows no interest in customer perspectiveLack of empathyLack of confidence in process & internal partners
Assure capability for resolutionAuthority & Flexibility – flexible solution spacesInformation
Who is customerWhat are circumstances
Capability to take action – includes partners with SLAsIncentives – recognition
Time for emotional connection and education make transaction memorable and remarkable
Surface the problems immediatelyPlace message and channel in front of customers just when they need it (but you need to be open)
Homepage & FAQsNotices and labelsSignature blockInvoicesNotice of process failures – or deliver psychic pizza
Message that addresses barriers
No hassle – minimum of information – login and passwords are barriersWill do no good – we want to hearFear of retribution – safe place to complain and lack of defensiveness – on signature blockAll channels available almost all the time and ease of use – channel hopping is facilitated
elaine
45Sec.com: Innovation Example
The consumer sees the invitation for feedback on a sign and scans the QR code.
They touch “record” and give the local manager a 45-second positive or negative feedback message.
45Sec.com: Innovation Example
Advantages of Universal Reps with Little or No RoutingAdvantages
Little need for complex IVR – easier to communicate where to go for help
Economies of scale – all reps can handle all calls – 15% less reps
CSRs have call to call variety Career ladder via certification
Disadvantages Need for more highly trained reps – training 30-40% longer,
OR much more effective knowledge base Need for more detailed, efficient knowledge base Must train everyone on all updates so more time devoted to
training – not cost effective unless very stable staff
Advantages of Skills Based Routing to Specialists
Advantages Less information to remember and 40% lower training time Obvious career ladder via progressing to more complex
transaction units Less need to escalate Easier for supervisors to monitor and coach CSRs sound more confident because they are more expert CSRs are members of a small group and have more feeling
of belonging Easier to accommodate product introductions and marketing
and warranty changesDisadvantages
Need for 15% more reps to fill basic needs of each queue Need for IVR to get customer to right queue – more mis-
directs and transfers Need for separate staffing plans for each queue
Getting Started
Step # 1
Identify value of the customer and cost of winning a new one
Getting Started
Step # 2
Have your CSRs ask 100 customers if they encounter problems that they have not
mentioned or complained about
Getting Started
Step # 3
Ask CRS about grumbles an gripes they hear as well as issues that they have difficulty handling
Getting Started
Step # 4
Make the case to marketing and finance to solicit complaints
Getting Started
Step # 5
For each difficult issue, is the cause: Flexibility and authority Access to information Lack of skill
Getting Started
Step # 6
Empower one team by issue – blanket empowerment does NOT
work
Getting Started
Step # 7
Monitor and coach intensively and celebrate improved
expertise
Getting Started
Step # 8
Aggressively solicit complaints to a small set of customers to
determine how big the iceberg is and what kind of issues you’ll
receive
Getting Started
Step # 9
Roll out after you confirm the value of enhanced service
SummaryFew complaints may mean a large unvoiced dissatisfactionMore calls is better than less calls when they are from customers with problemsYou can almost always retain a customer for less than they are worth and less than you would pay to get a new oneA prerequisite is fixing your response process to satisfy most callers.Pilot test the aggressive approach before rolling it out
This webinar is outlined in detail in:
“Strategic Customer Service”
For package of articles or questions: [email protected]
Click here to view the webinar recording!