Occupy Wall Street (#OWS) and Customer Service

The publicity surrounding Occupy Wall Street makes me think we need our own movement in customer service.  I just don’t know where to gather (suggestions here).

Occupy Wall Street (#OWS) and Customer Service

In many ways the #OWS experience is exactly what I advocate relative to customer service.  Vote with one’s wallet.  One thing the “99%” understand… change requires action.  Sadly the same malaise that affects American voters (perhaps the 99% are upset, but few vote) wreaks havoc on consumers too.

Companies need not be obligated to deliver good service, and in fact many do not.  But those that do, reap higher rewards in the form of decreased acquisition costs, loyal customers, and higher profit/customer.  Government can’t compel good customer service.  But it shouldn’t have to either.  Customer service and corporate profit motives are not mutually exclusive.   Companies should freely deliver superior service because it improves profitability.  I have first-hand knowledge that such service can improve corporate profitability while leading to more satisfied consumers.  (Yes, the proverbial win-win.)

Rise up brothers and sisters!  The pivot point is that although we aren’t entitled to great customer service we can choose to take our business elsewhere.  Failing action in the political sphere, guilt rests with a complaisant American public.  Too many remain mute on the sidelines and too few have exercised their right to vote for too long.  In the realm of customer service, how do our actions stack up?  Or are we too guilty of failing to change when better alternatives exist?

What steps will you take to initiate change when you experience unacceptable service?  And with which company will you start?

Zappos Customer Service Stumbles, Doesn’t Fall

If you follow customer service industry you may be aware that Zappos, renowned for their service, had some recent issues.  Upgrading its Warehouse Management System (WMS) caused Zappos to delay customer order shipment.  This stumble is important only because it will further strengthen their company.

Any other company and you might be forgiven for declaring the end of the world.  For Zappos, however, their customer-centric DNA will win the day.  Their brand is built on service and their engaged employees take personal pride in that reputation.  They will take the necessary steps to right the wrongs, to improve as a result, and to re-earn our loyalty.  And don’t forget the benefits the integrated WMS brings.  Zappos gained access to the Amazon inventory and now both companies can take advantage of Zappos’ legendary customer service.

Why might a customer forgive Zappos?  Zappos’ reputation was earned through repeated focus and execution.  We trust them, believe they will learn from the mistakes, and have confidence they will find ways to improve.  They won’t rest until this blemish is erased from memory.

The pivot point is that when your company is known for service, customers give your company the benefit of the doubt and continue to do business with your firm.  The reverse is true as well.  Companies that are known to have little vested interest in service create the conditions that make exodus a distinct likelihood.  Next time you think about cutting costs by cutting service, think about whether or not you could suffer a set-back successfully.

What problems would cause customers to deny you a second chance?

The Third Secret – Targeting Qualified Prospects

The third secret customers keep from you is which [future] customers to target.  If you knew the answer to this question, you could grow your customer base in a cost-effective way by amortizing customer acquisition costs across a larger number of clients.  There are two ways this may occur:

Wanted: Qualified Prospects

Ask for Qualified Prospects

Customers tell your company who would benefit from your product.  This information won’t appear magically so you have to ask for it.  (Note: some companies offer referral bonuses for this information.  I’m against such perks because they introduce a quid pro quo aspect that resembles pork-barrel politics.  Better that your product is so strong that they feel like their reputation will be enhanced in the process.)  The company actively and directly participates in this method.

Earn Qualified Prospects

Customers tell their contact that you would help them solve a problem.  This method is word of mouth (WoM) marketing and is one of the premises behind NetPromoter Scores.  To make it work, the customer’s experience with your brand must be so positive (or cult-like in the case of Apple) that consumers purchase goods and services to be part of the experience.   The company actively but indirectly participates in this method.

Gain Customer Trust

Regardless of which method you choose, your goal is to gain customer trust through a valuable customer experience:

  1. Know thy customer
  2. Create a great product that meets customer goals
  3. Support the customer like they’re the last customer on earth
  4. Develop some market buzz by appealing to perceived customer needs
  5. Laugh all the way to bank like Apple

The pivot point in this secret and others is that customers must trust your company and brand.  Products and service must work together to create an experience that customers value.  When this work is done customers become willing to reveal qualified prospects and interactions become collaborative endeavors which benefit company, customer, and shareholder.