Category Archives: Best Practices

Aligning your Business to Customers: Pillar 3 – Communication

Posted on 5 July 2011 by | 1 Comment

In earlier posts we’ve focused on how important employees and products are to ensuring the business is aligned to your customers.  In this post, we’ll look at how communication helps your company align with customers.

  1. Listen and Understand the ‘Need’ – Technology companies often miss this piece.  Very ‘cool’ technology that doesn’t meet a need will not be turned into revenue.  Recognize that the ‘need’ will be different depending on the audience.  The user may need new features; the buyer may need different contractual terms.  But each of these elements (and more) makes up the total experience and must be considered.  It sometimes helps to map the customer experience from the first interaction (e.g. learning about you via billboard, website, radio jingle, etc.) to the purchase point, to the point after which they’ve made a purchase and need to receive ongoing support.
  2. Respond – I’d never advocate doing everything your customers ask (rejection is good in business) but you should respond in some way.  Some companies set up automatic mechanisms where the feedback is self-evident (for example, online voting where results are visible).  Customers know that a certain number of votes are required before an idea is considered and learn not to expect anything for unpopular (read: not profitable) ideas.
  3. Follow-Through – The most-missed step.  Your brand relies on integrity, just ask Congressman Weiner.  Your company can’t afford to agree to change and remain stagnant.  If it does, there’s no point in listening in the first place.
  4. (Optional:  Claim Credit) – Dizzy Dean is often attributed with saying “it ain’t braggin’ if you done it.”  If you listen to your customers and use their feedback to change some aspect of your company, make sure you (1) thank them and (2) point out how responsive you were.)

The pivot point is that to align your company to your customers, it must start with a commitment to listening, and then continue with a commitment to doing.  Companies that omit Step 3 become known for listening and ignoring (a shaky pillar indeed).

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Posted in Best Practices, How to Deliver Customer Service

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Luggage or Lunch: Why Choose?

Posted on 4 May 2011 by | 2 Comments

I read an interesting article at Knowledge@Wharton titled Nickeled and Dimed: Is It Possible to ‘Over-fee’ Consumers? The basic questions are how much is too much?  At what point do consumers revolt against your brand and defect?

The short answer to these questions, like so many others, is “it depends.”

Customers have much different perceptions about what products are suitable for them, and about what price points are warranted.  In short, the value equation for each customer is different.  Airlines, banks and other industries have tried to address this nuance and uniqueness by charging for each item.  Their assumption is that consumers will pay for add-ons that are valuable to them and their specific circumstances.

One approach airlines haven’t tried recently is to model pricing after hotels that offer all-inclusive vacation packages.  (Southwest comes closest.)  Why not acknowledge the differences by offering pricing packages that (1) include everything and (2) require payment for specific items.  Like other industries, they should understand the typical costs to service their customers.  By offering an all-inclusive fee, airlines would appeal to customers who want simplicity and no hassles.  By continuing to offer “pay by the drink” fees they could appeal to even the most cost-conscious.

Another industry that could benefit from improved customer focus regarding choices is cable TV.  In that industry, the only pricing choices that exist contain several unneeded and unwanted programming options.  Pay per view fight night notwithstanding, wouldn’t consumers prefer the ability to pay for programming at a more granular level?  What about charging for minutes, or hours, rather than the number of channels and the type of programming?

The pivot point is that since customers have different definitions of what “good service” and “good pricing” is, companies have to manage to a wide segment of consumers.  It’s in their best interests to service both simultaneously, rather than making the choice for consumers.

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Posted in Best Practices, Customer Loyalty

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Why What You Want Doesn’t Matter

Posted on 18 April 2011 by | Leave a comment

Ever get unsolicited calls from someone trying to sell you something?  I got one the other day and was reminded why they are generally unsuccessful.

The salesperson went through a brief introduction of himself and his company (they outsource technical support).  Then he mentioned some customer names to pique my interest.  (Perhaps he thought we wanted to emulate those companies?)  He left his contact information and followed up with an email to be sure I had his contact information.  All in all, it was standard fare for an outbound sales call.

Here’s why he didn’t/won’t receive a return call.

The call focused on what he wanted.  In a message that lasted sixty-two (62) seconds, he told me what I could do for him… four (4) times!  Not once did he appeal to my business needs.  Was I trying to:

  • Reduce costs?
  • Increase customer satisfaction?
  • Drive revenue higher?

I had zero incentive to pick up the phone to help because – what he wanted doesn’t matter.  To earn the return call he should have painted a clear picture of how his business, product, or service could solve my problem.

The pivot point is that we must ensure our phone calls and emails serve customers’ needs.  If our value-proposition solves our needs alone, customers have no reason to respond to our well-intentioned outreach.

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Posted in Best Practices, Customer Service, Influential Factors - Helpful, The Right Kind of Customer Service

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