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December 2006 Archives

December 29, 2006

Where Will Customers Take You Next?

“You can undo good work so quickly if you don’t balance your channels.”

Mark Selcow pointed out this unfortunate truth yesterday when we were discussing the importance of having a consistent customer experience across channels. Selcow is president of Merced Systems, a performance management vendor focused on the contact center—for now. Merced has begun expanding into other areas of its customers’ organizations (field service and installation, back office, retail channel), courtesy of those customers. It’s not alone. Witness Systems is another contact center vendor whose customers are using its applications to improve service in other areas of their businesses (watch for our upcoming article on Banco Popular in the Jan/Feb issue of 1to1 magazine).

What makes this interesting to me is twofold: First, it shows that companies are increasingly recognizing the need to create a consistent multichannel service experience. Many are doing so by sharing common service processes across channels, in some cases supported by technologies that can help guide those processes. Second, it demonstrates the positive impact customers can have on a company that listens to and acts on their feedback.

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December 28, 2006

Offline Brand Preference Doesn’t Always Equal Online Sales

Walker Information just released its 2007 The Walker Loyalty Report for Online Retail, which reveals what it found to be the eight websites that garner the most loyalty. One thing I thought was interesting about the findings is that offline brand awareness doesn’t always translate into online sales or loyalty.

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December 27, 2006

Time's Man of the Year

Let's assume, for the sake of argument, that I buy into Time Magazine's choice of "me" as the 2006 "Person of the Year." If you haven't seen it, the media behemoth overlooked Al Gore, George Bush and Mahmoud Ahmadinejad as the person who "for better or worse" affected the news in 2006. It chose instead, everyone who gets onto blogs, social media sites and product review boards as that person. I think the choice is a complete copout personally, but let's put that aside. If the average Jack and Jill is "Person of the Year," then Fred Reichheld should have run a very close second. Here's why. The huge rush toward product recommendations, personalized marketing and the power of social "internetworking" has been driven by media companies and consumer marketing entities (agencies, brands, etc.) It has been in their best interest to drive consumer participationto access its resulting customer intelligence. No one person has been more influential than Reichheld in creating this environment. No single person has influenced the power of customer influence the way he has. His ideas have crystallized a new direction for business. Now, it ain't exactly overshadowing global warming or nuclear proliferation, but here's a reserved vote for Fred.

December 22, 2006

Do You Really Know Why Customers Are Calling?

Yesterday in my blog entry, Redefining the C in First Call Resolution, I discussed how to overcome the six main barriers to first contact resolution, based on a conversation I had with Rob McDougall, president of Upstream Works. During that call, McDougall made another great point: Companies need to measure first contact resolution – not just in terms of the pure numbers of closed cases, but also in terms of why callbacks are happening. This is especially important because understanding and reducing or eliminating the sources of callbacks can cut contact centers costs and significantly improve service. It call also improve interdepartmental processes.

Continue reading "Do You Really Know Why Customers Are Calling? " »

December 21, 2006

Redefining the C in First Call Resolution

First call resolution is a favorite metric of many customer service leaders. But in today’s multichannel environment, first contact resolution is fast becoming a more fitting moniker. This thought hit home for me during a recent call I had with Rob McDougall, president of Upstream Works. We were discussing the six main barriers to first call (er, contact…) resolution and how to overcome them. We also discussed what first contact resolution actually means.

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December 20, 2006

Delta Sets Its Own Course

In a feature article that I wrote in the May/June issue of 1to1 Magazine, I quoted a Delta Air Lines financial report as reading, “Unless we change our direction, we’re likely to end up where we’re headed.”

Seems like Delta is sticking to that proverb. Delta yesterday announced that it rejected U.S. Airways $8.3 billion hostile takeover bid. Instead Delta outlined a five-year reorganization plan. In the plan, the airline lists US Airways as being a “poor strategic fit” and because of its negative synergies, the acquisition would have created an impact of “reduced customer service.”

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December 19, 2006

FTC Rules on Word-of-Mouth

Word-of-mouth marketing is certainly a hot trend. It's growing to the point where complex strategies and programs have been put in place to make them happen. But with growth comes the potential for misuse. So last week the FTC ruled that companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships.

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December 18, 2006

Customer Service 2.0

Today's 1to1 Weekly article, "Amazon Sets Customer Service Standard," highlights a new customer service study from the National Retail Federation. At the top of the list for customer satisfaction are Amazon.com, Nordstrom, and L.L. Bean. It's interesting that the top three companies are also some of the top 1to1 brands out there. Two of these three companies don't even have a physical store, but their commitment to individual service and MVC treatment have propelled them to the top of the list.

Continue reading "Customer Service 2.0" »

December 15, 2006

What Drives Loyalty?

How’s that for a burning question? The desire to know what drives customer loyalty is definitely one issue that keeps many marketers awake at night.

I was curious to know how various industry insiders – from loyalty experts to marketing and service practitioners – would answer that question, so I asked: Of the many elements that organizations might consider a signifier of customer loyalty, which is the most important and why? And then I collected the responses and put them in 1to1 magazine in a brand new column called Taking Issue. The full responses are online.

But I’d love to hear your answers to that question, too. So to get the conversation started, here are the abbreviated versions of a few of the responses:

Continue reading "What Drives Loyalty?" »

December 13, 2006

Be Social

Social media is fast becoming the “it” online activity. Oh sure, it’s been around for ages. But with new technologies and marketers’ enthusiasm, its burgeoning role as a hotbed of advocates and influencers is undeniable. So, then, what sites are doing it well?

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Technology Meets Tradition

Consumers can buy most anything online today, so why not Christmas trees too?

The New York Times this week reported that last year 200,000 to 500,000 Christmas trees were bought online. Many of the 60 U.S. growers that sell trees online are expanding their e-commerce capacity to accommodate what they expect to be a growing number of time-pressed consumers this holiday season who plan to order trees online.

Similar to purchasing a book from Amazon, the tree is packaged and shipped FedEx or UPS to arrive in about five days. One tree grower in the Times article says he may even add virtual tree selection where shoppers can pan the fields, find their tree, and he’ll cut it down for them.

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December 12, 2006

Give Gift Cards, Get Customer Insight

For the first holiday sales season on record, gift cards are expected to sell better than gifts of toys, games, music and movies, according to the 2006 American Express Gift Card survey of 1,013 shoppers. Two-thirds (66%) of shoppers plan to purchase them this year, up from 57% in 2005 and 55% in 2004, according to the survey. It's a great experience for purchasers and redeemers alike, and with a smart strategy, it could be a great interaction experience for the retailer as well.

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December 10, 2006

Have Your Ever Been Experienced?

Jimi Hendrix was famous for asking that question. I think a lot of companies could profit from the same inquisition. As raised in our 1to1 Weekly story, the question of customer experience and its importance cannot be overstated. The mistake too many compannies make is in equating the customer experience with the retail experience. Big mistake. The customer experience is not just transactional. It is interactional. Every time a customer experiences the brand message, media, employees, contect center and even the sights and sounds of a company, that customer is having an experience. I would bet almost my whole marketing budget on improving that experience. It's the foundation of customer loyalty. If your company doesn't provide a customer experience that reflects some kind of well-thought strategy, don't bother with the meeting about revenue goals, loyalty or all that other fun stuff. Get the experience right first.

December 8, 2006

Can Selling Get More One to One?

Sales professionals in B2B environments, as well as in some retail environments, often specialized in the kinds of relationship building activities that are integral to fostering long-term, high value “partnerships” with customers. Does it get more one-to-one than that? Yes. Sprinkle a bit of technology into the mix and salespeople get a powerful tool to accrue and share information not just among their peers, but also with other departments in their organization that have information integral to the sales process (Interface Software calls this relationship capital); streamline sales and administrative processes; and track and report on results in real time instead of at the end of a quarter, when it may be too late to make necessary adjustments; and more.

The catch is that there are still many, many sales forces that, although they may use CRM or SFA technologies, have not realized the full potential of those tools.

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December 7, 2006

Loyalty on Fire

Yesterday I had the great pleasure of attending a launch event for Circuit City’s Firedog services group. The retailer has been taking direct steps to battle behemoth competitor Best Buy, including creating Firedog and hiring Samsung’s Peter Weedfald as senior vice president and chief marketing officer. Not surprisingly, Weedfald dove right into the fray and brought his passion for customer and community to bear on the challenge.

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December 6, 2006

American Girl Place Creates Lasting Relationships

On a visit last week to see the tree at Rockefeller Center, I was surprised less by the mob scene in front of the tree as I was with the legions of girls gathered across the street and wrapped around a building.

The building was American Girl Place—the Saks Fifth Avenue for the popular doll that bears its name. The New York, Chicago, and Los Angeles stores have become the Mecca for young girls to travel to for doll grooming and accessroy shopping.

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December 5, 2006

CEO=CSR

The corner office is usually reserved for discussions about financial impact and revenue numbers. Yet more high-level executives are rolling up their sleeves and getting in the muck and mire of customer service. Craigslist founder Craig Newmark told Business 2.0 recently that he spends at least 40 hours per week on customer service, and can't understand why other businesses don't.

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December 3, 2006

Goin' Mobile

Does mobile marketing have potential? Our 1to1 Weekly story certainly raises a lot of that potential. And you know what they say about the heavy burdens of potential. I think that for mobile marketing to succeed it needs to grow beyond its youth-heavy culture. As it stands now, mobile marketing is a very cool and engaging way to reach kids on their cell phones. It needs to grow into a very convenient way to help organize the lives of adults. If I ran a travel company I would be all over cell phones and smart phones with alerts, text messages and small screen ads. If I ran a restaurant chain I would do the same. If I was a high volume e-retailer like Amazon, I would develop interfaces to keep busy adults connected to their music and books. I would also work hard on ways to encourage cell phone payments, or as it’s known in industry parlance, the wireless wallet. Mobile marketing has huge potential because it's starting from a customer-centric standpoint. Now it just needs to grow up.

December 1, 2006

Great People Create a Great Customer Experience

You may have noticed that a few of my recent blog entries (and a couple of my 1to1 Weekly “Reporter’s Notebook” articles) focus on the close connection between employee engagement and customer satisfaction. Among many the presentations I attended recently there was one common thread: You can’t train for attitude, you have to hire it.

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