Tag Archives: Acquisition

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?

The Top 1,000,000,000 Reasons to Listen to Your Customers

While others write about the Top 10 Reasons to listen to customers more powerful examples are all around us.  After all, if Zappos can generate $1B in word of mouth (WOM) revenue why do companies continue to ignore their customers?  Satisfied customers are the best sales channels ever!

The Best Sales Channels:

  • Generate Additional Business – If customers are willing to speak favorably about your company or its products, they’re likely to make additional purchases.  This willingness to purchase more comes at no additional cost, the next benefit of WOM.
  • Are Cost-Effective – We often think in terms of acquisition costs.  Some businesses measure success with ratios of 3:2.  If it costs $3 to acquire a customer who spends $2 they declare victory.  This model only works with recurring revenue streams, when the customer lifetime value is considered.
  • Reach New Customers – This is the true power of WOM advertising, and why Fred Reichheld ‘s The Ultimate Question have gained such momentum.  Once a company has set a positive experience in motion with one customer that good reputation spreads and other customers seek out the company’s products and services.

    If WOM still seems touchy-feely (and the $1B doesn’t convince you) then it’s worth considering that any B-School professor would tell you that leveraging fixed assets is a wise choice; it magnifies benefits across a larger number of consumers.  The same applies to WOM advertising.  Respecting customer’s needs and supporting customer goals is really just good business sense.

    The pivot point is that by listening to customers you can continually spread your acquisition costs.  Happy customers encourage others to buy whereas unhappy customers actually increase the barriers and impediments to sell.

    With one billion reasons to listen to customers, where will you start?

    Why Re-Invent the Wheel?

    Business Week recently announced its list of customer service standouts.  These customer-focused companies provide excellent examples of how to deliver exceptional service.  So read on and add to your bag of customer service tricks.  What follows is a list of companies that made the list along with unusual or noteworthy ways these companies are improving their bottom line while they improve their customer service.  Before you check out the article, try to guess which initiatives belong to which companies.

    Ace Hardware, Amazon.com, American Express, Amica Mutual Insurance, Apple, Barnes & Noble, Branch Banking & Trust, Charles Schwab, Dell, Enterprise Rent-A-Car, Fairmont Hotels & Resorts, Four Seasons Hotels and Resorts, Jaguar, L.L. Bean, Lexus, Nordstrom, Panera Bread, Publix Super Markets, Southwest Airlines, Starbucks, The Ritz-Carlton, True Value, USAA, Wegmans Food Markets, WestJet

    Investing in Employees

    • Increased training budget by 13%.  Awards tuition scholarships for employees.  Answer
    • Employees granted equity in company.  Answer

    Investing in Technology

    • Leveraged best of both worlds after implementing best practices from recently acquired company.  Answer
    • Implemented overflow call system to use remote representatives when local volume overloaded local resources.  Answer
    • Integrated online inventory with brick and mortar inventory to speed customer fulfillment.  Answer

    Investing in Customers

    • Escalated problems if not solved within 20 minutes.  Answer
    • Developed outreach program to contact dormant customers.  Answer
    • Roving check-out clerks bring service to customers.  Answer

    The pivot point is that we can learn much from those companies that blaze the way with excellent customer service.  We don’t need to re-invent the customer service wheel.  And while not every solution will be appropriate for all companies, these stalwarts set the bar high when innovating around, and executing on customer service.

    Which companies are customer service trailblazers that should make the next Business Week list?