CustomerCare News The Promenade at Coconut Creek
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Spring 2013
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Never Underestimate the Power of Word of Mouth page 14
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turpis. Cum sociis natoque penatibus et
ridiculus mus. Integer fermentum, ipsum quis tincidunt dictum, urna nisi egestas
sapien, nec laoreet magna orci at ligula. CCN
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Whetstone Station Restaurant and MorbiBrattleboro, consequatVermont porttitor Brewery, MERS’ EXPEC page 5 T USTO
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Best of Breed vs. All in One page 18
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CELLENCE RAM OF EX InMat magna eu odio aliquam condimentum at eu est. FIRST PROG CO T. RS FI ER CUSTOMER M CUSTO WWW.CCN 2013 VE X The Customer First R RIN E M MBE RE Program of Excellence ™ E GT M page 8 HE STO
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h t u m n e a nk U LT I M AT E C U
A Celebration Media Publication
BE RI C BS
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Start Your Subscription Today Customer Care News magazine is dedicated to exploring the relationship between customer care, customer satisfaction and the bottom line. The more a company focuses on customer care, the more it reaps the rewards of higher customer satisfaction. Research shows that customer satisfaction is essential because of its impact on the many factors that affect a company’s bottom line. It generates higher customer loyalty, repeat business and increased revenue. Happy customers lead to a happy bottom line and happy stakeholders. This should be the call of every company in America. Subscribe to Customer Care News to receive the latest information on trends and issues in customer care with articles from industry leaders and more. Each issue highlights leading industry providers of education and resources that can assist companies in improving their customer satisfaction scores, and thus improve their bottom line. There is no charge to subscribe to the magazine’s digital edition. Simply go to www.customercarenews.com/subscribe/.
Associate Publisher’s Letter
I
. had an opportunity to speak at the Michigan Bankers Association (MBA) conference in Traverse City, Mich., in April. The topic, The Emergence of the Customer Experience:
Attracting and Retaining Customers, was well received. It was an enjoyable experience speaking to so many bankers from Michigan and around the Midwest. There were two areas of focus that stimulated a good deal of discussion from the participants. The first involved statistics from the book The Customer Experience Revolution: How Companies Like Apple, Amazon, and Starbucks Have Changed Business Forever by Jeofrey Bean and Sean Van Tyne. Of particular interest were the statistics that Gary Tucker from J.D. Powers uncovered regarding how many companies really deliver the ultimate customer experience. It was found that: • 75% of companies do not believe that the customer experience is important • 20% of companies only pay “lip service” and remain uncommitted to the importance of the customer experience • Only 5% of companies recognize the value of the customer experience as a competitive edge The proverbial beehive was roused. I knew I stepped on some toes and waited for the possible attack. Fortunately, the audience was more intrigued than defensive. The more they understood how the customer experience is a significant differentiator that sets them apart from their competitors, the more internal reflection was observed. The ensuing discussion and energy filled the room. Toward the end of the presentation, I suggested that a critical skill in providing the ultimate customer experience is to manage relationships. Heads tilted and thought bubbles stemming from the participants’ heads appeared. It’s all about relationships, I asserted. The customer experience can be simplified by thinking in terms of managing relationships. It involves: • Exposure to the company’s brand prior to becoming a customer (all received messages) • The ease, friendliness and enjoyment of the company’s products and services • The everyday interaction with the company, processes, technology and its people This simple understanding seemed to resonate with the bankers. However, the real challenge is for organizations to adopt, embrace and commit to it. Only then does an organization have a chance of becoming a “customer experience company” — one of the 5%. This edition is complete with similar and relevant articles from various contributors. I want to take a moment to thank the people who took the time to submit articles. Your energy and thoughtfulness have contributed to the success of CCN.
Dr. Keith Levick Associate Publisher
www.customercarenews.com
Spring 2013
klevick@customercarenews.com
3
CustomerCare Table of Contents News Spring 2013 Publisher Dale Jaslove
djaslove@customercarenews.com
Associate Publisher Keith Levick, Ph.D.
klevick@customercarenews.com
Editor-in-Chief Jamie Rawcliffe
jrawcliffe@customercarenews.com
ce n e r e ff i D Be the
Production Manager Chris Schramm
cschramm@customercarenews.com
Operations Manager Jennifer Barth
jbarth@customercarenews.com
Website Design Melissa Sherwood Contributing Writers Chris Attebery, Peter Case, John Lusk, Charlie Smith, Jason Wolcott Website Consultant www.sherwoodandblack.com Customer Care News 32000 Northwestern Hwy., Suite 128 Farmington Hills, MI 48334
www.customercarenews.com Customer Care News is designed to provide accurate and authoritative information in regard to the subject matter covered. The publishers have taken all reasonable steps to verify the accuracy and completeness of information contained in Customer Care News. The publishers may not, however, be held responsible for any inaccuracies or omission of information in any article appearing in the Customer Care News.
Spring 2013
Entire contents copyright 2013 by Customer Care News. All rights reserved. Reproduction or use of editorial content in any manner without written permission is strictly prohibited.
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A case study in excellent customer service
MERS’ EXPEC TAT IO
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08 The Customer First
Helping you put your customers
Dr. Keith Levick, Jeofrey Bean and Sean Van Tyne discuss the implications of
technology on the customer experience
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first every time
Customer Experience
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Program of Excellence™
10 Technology and the
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apagett@customercarenews.com
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Brewery, Brattleboro, Vermont
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Editors/Writers Amy Pagett
05 Whetstone Station Restaurant and
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aseebaldt@customercarenews.com
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Editorial & Materials Coordinator Anne Seebaldt
Customer
presented by e s Magazin Care New and Resources
ning CCN Lear
2 013
akers
eM Experienc 14 Never Underestimate the Power of Word of Mouth
Creating the ultimate customer experience can provide some of your company’s best marketing opportunities
ce
erien tomer Exp s u C te a ltim the U 16 Double-edged Sword livAerGood De TM
Technology pushes companies to provide increasingly better customer service
17 5 Ways Brands Can Take Social to the Next Level
Social media expert offers tips for
companies to use social media to their advantage
18 Best of Breed vs. All in One
What is the best infrastructure solution for your call center?
19
Customer Care Glossary
Customer Care News
Whetstone Station Restaurant and Brewery, Brattleboro, Vermont A case study in excellent customer service
pinnacle of customer service, Whetstone Station
Restaurant and Brewery in Brattleboro, Vermont,
offers just that from the minute customers enter. David Hiler and his partners Tim and Amy Brady all had long histories www.customercarenews.com
5
Spring 2013
C
onceived on a Harpoon Beer coaster to provide the
in the hospitality field (mainly running inns from the West
rant where customer service, great food and good times live.
and opening Whetstone Station, which is all about the beer, the
restaurant to get the atmosphere they were looking for, which
Coast to the East Coast), before finally digging in their heels food and making sure the customer is happy. The ideal location
Whetstone Station is perched over the Connecticut River
squarely on the Vermont side of the Vermont/New Hampshire
border, overlooking Mt. Wantastiquet in New Hampshire. A
restaurant with a locale such as this gives you an advantage as
an owner, but people will stop coming if the service isn’t there. At Whetstone Station that is not an issue.
David, Tim and Amy redesigned the entire interior of the
also meant reducing seating. But when customers walk through the door, they instantly feel a part of something special. The
industrial-themed brewpub and restaurant features a highceilinged dining room and outdoor dining on two decks. “The Whetstone Station is dedicated to providing patrons an outstanding dining experience like no other,” says Hiler. Great food, great beer…great service
What really sets Whetstone Station apart? A wonderful
The concept for Whetstone Station evolved over time.
selection of craft brews, one of the most welcoming and accom-
David and Tim found themselves lamenting as they visited
sirloin tips, fish tacos, Tim’s Awesome Burger (with peanut
During many trips out of town for hospitality conferences, both
other brewpubs that Brattleboro really didn’t offer anything
similar. They often thought of their current location (formerly known as the Riverside Cafe) as a perfect place to breathe life into this concept, so when the Riverview closed and the building became available they were finally able to see their many talks over various microbrews in different parts of the country
butter), and a variety of locally sourced menu items. With the country’s attention slowly drifting toward genetically modi-
fied food, Whetstone Station strives to use locally grown food
whenever possible — another plus. In addition, the restaurant’s top chef recently took home the gold in a food competition in Vermont’s largest city, Burlington.
The team at Whetstone Station is dedicated to making sure
Spring 2013
come true. But it became more than that — they built a restau-
modating staff in the area, and, of course, the food — grilled
6
Customer Care News
that every facet of your visit to their establishment is a positive
message when your table is ready — just don’t stray too far
policies on the planet — YES! That’s it, the word yes and, of
Using the technology to survey customers has also been
one. How do they do this? Perhaps one of the simplest service
away.
course, everything that comes with it.
beneficial for Whetstone Station. Approximately one hour
involves training your employees to truly believe that the
their experience while it is still fresh in their minds, which
One of the first keys to providing great customer service
customer always comes first. In the restaurant business this is
not always an easy feat. So, staff training and meetings include teaching everyone how to deal with both happy and unhappy customers. And this is evident upon visiting the restaurant.
If the internal customers aren’t happy (the waitstaff, bar-
after customers have dined they receive a text asking about
serves the restaurant well. Every experience might not always be the best, and the worst customer is one who stews on a bad
experience and never tells you. And if you don’t know, you can’t fix the problem.
tenders, hosts/hostesses, chefs), then the external customers
Experience pays
notch service will certainly feel that. So morale among the
being the host with the most. But anyone who has ever worked
at Whetstone Station, you’ll have the opportunity to fill out a
ally more of a firefighter constantly making sure your staff
who come in looking for a great meal accompanied by toprestaurant’s employees is another top priority. When you dine
customer comment card. These cards are reviewed daily and positive comments are read out loud during shift meetings prior to the restaurant opening. Negative comments are viewed
as a chance to improve and not berate so the mood among the staff stays upbeat, which translates to the customers and their experience.
“We’re just pleased to have a strong, happy staff that cares
as much about the restaurant and making customers happy as we do,” says Hiler.
In today’s world, however, a customer can have 10 good
Many owners open their restaurants with the notion of
in a restaurant knows there’s very little of that — you’re actu-
shows up, your cooks show up, the restaurant is presentable, the
floor is clean, the glassware is sparkling, the cutlery is aligned properly…. And at the end of the night you’re given 10 hours
before you have to do it all over again. Owning a restaurant is
really a love of the game, because it involves long hours where
a million different things can go wrong on any given day. So while an educational background in hospitality helps, practical
application is key, and David, Tim and Amy all have that onthe-job experience.
Having a successful business anywhere, in any field, requires
experiences in a row followed by one bad one that keeps them
an understanding of the customer — knowing and truly
as loyalty clubs to keep customers coming back. Since the res-
fronts. With restaurants there are literally hundreds of things
from returning. So Whetstone Station has created things such taurant is as much about a good craft beer as it is a great burger, it developed the Mug Club, which is a lighthearted way to keep
folks loyal. With its ever changing beer menu, it is entirely possible for them to have more than 100 different crafts brews
during a one-year time period. The Mug Club requires custom-
ers to try 99 different beers during the course of the year to
earn their mug. Once the mug is earned it is displayed for the
world to see and the customer can call it off the wall on every
visit. And if you are able to complete the challenge, you also
understanding their wants and needs and then delivering on all that can go wrong during the course of an evening, and as a
purveyor in the food industry you must constantly “keep calm and carry on.” But you’ve got to get the bus boy to understand
that too because customers can sense when something is wrong, and that can affect their experience when they’re out for a fun
evening. This is the very essence of what drives the Whetstone
Station team. The customer is always right, the customer is always first and the customer is always greeted with a smile.
How long does it take to develop such a strong presence
receive discounts on future food purchases, dinner for free on
as one of the best restaurants in town? In this instance, it only
more. The club is a fun way to draw the customer in, keep them
hospitality field, so they’ve seen how not to do it and how to
the anniversary date of your mug club entry, unlimited soda and happy and keep them coming back.
With everyone’s reliance on smart phones these days,
the owners of Whetstone Station have found a way to reservation, they receive a text message confirming it. Walk
in on a busy night and the wait is 30 minutes? No problem. Take a walk through downtown Brattleboro and receive a text
www.customercarenews.com
do it right. The three of them along with “the Best Damn Brew Crew, PERIOD,” have been able to capture the artsy commu-
nity of Brattleboro and the attention of the surrounding area and give people the best experience they can when they walk
Spring 2013
capitalize on that market as well. When customers make a
takes nine months! The three owners have backgrounds in the
through the door. CCN
Peter Case is a contributing writer based in Brattleboro, Vt.
7
The Customer First Program of Excellence™ Helping you put your customers first, every time
I
t has been said often these days how necessary it is to provide a great customer experience given the explosion of social media
outlets and the ease with which consumers can communicate with one another — sharing both good
and bad experiences. Something this important bears repeating. Keeping customers happy is one of the keys
to business success. Putting customers first and making their needs a priority is the first step.
With this in mind, Customer Care News teamed
up with CCN Learning Resources to establish a
program that will help businesses not only put their
customers first, but also let them know that. The
Spring 2013
Customer First Program of Excellence™ incorporates
the best practices, principles and strategies to empower
and engage staff and management to provide the best possible customer experience.
8
Customer Care News
Through
the
Customer
First
Program, which is geared toward
small- and medium-size businesses, organizations have access to a host of materials that will demonstrate to
regardless of what the research shows. These tend to be commodity-driven businesses.
“By participating in the Customer
customers that they are committed
First Program, companies are taking the
ence time and again. “As publisher
ter,” says Dr. Levick. “It does not happen
to providing the best possible experi-
of Customer Care News magazine, I am pleased to help underwrite this program that is designed to help small
first step of many to become a 5 percen-
with simple slogans or rah-rah speeches. It starts with an awareness that this will
take a commitment — one that starts
businesses establish the ultimate customer experience by
from the top and extends across the entire company.” CCN
Customer Care News Publisher Dale Jaslove. “I believe the
To find out more information about the Customer First Program
are pleased to be a part of this program.”
888-438-9528 ext. 808 or go online to www.ccncustomerfirst.com
getting their staff and managers on the same page,” says
Customer First Program of Excellence does just that. We Among the materials available to participants in the
program are custom-designed certificates, window decals, employee “lunchroom” posters and employee wristbands.
of Excellence and how your business can order materials, call
Be the Difference
In addition, an owner’s guide helps owners and managers
also generating new and loyal customers.
C
D EE
ING
CUST
OMERS’ EXP E
C TA TIO NS
this initiative designed to improve customer retention while
EX
implement the program, directing them as they establish
“The rationale for developing the program derives from
the philosophy that providing the finest care for customers
word or a fad. It is the lifeblood of every company that
requires continual improvement. It is with this in mind
that we set forth and created the Customer First Program of Excellence.”
The customer experience — defined as all the interac-
tions that consumers have with or about a company’s mes-
sages, processes, people, products or services — has replaced the more traditional role of customer service. According to
Levick, this requires companies to redefine how they con-
EN
CE
NG
2013
THE
MEMBER
U LT I M
AT E C U S T O
PE
RI
RI
E
“Customer service (or care or experience) is not a ‘buzz’
CUSTOMER FIRST PROGRAM OF EXCELLENCE™ WWW.CCNCUSTOMERFIRST.COM
LIV
says Customer First Program Director, Keith Levick, Ph.D.
TM
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is not a single event, but rather a never-ending process,”
MER
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Fr ankenmuth Brewery Fr ankenmutH, MICHIGAN
presented by Customer Care News Magazine and CCN Learning Resources
2 013
Experience Makers
duct business. The research shows:
• 5 % of companies really understand the value of cus-
tomer experience and embrace it. In these companies it is woven into their culture and fabric.
• 2 0% of companies understand the concept of the customer experience but only pay it lip service. These companies may have signs and slogans, but are not
rience matters. They do not see it as a differentiator
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Deliver the Ultimate Customer Experience 9
Spring 2013
committed to it.
• 7 5% of companies do not believe that customer expe-
Technology and the Customer Experience
C
CN Associate Publisher Keith Levick, Ph.D., recently sat down with Jeofrey Bean and Sean
Van Tyne, co-authors of the new business lead-
ership book The Customer Experience Revolution - How Companies like Apple, Amazon, and Starbucks Have Changed Business Forever, published by Brigantine Media. The
three discussed the increasingly important role technology is playing in creating the ideal customer experi-
ence, and the pitfalls that can be found along the way. KL: When I got to the airport, that’s when the trouble began. First of all, I was late. I couldn’t get off the phone and I couldn’t
print my ticket, so I had to print it at the airport. I was at the
KL: I much prefer the human-to-human interface. I become
friendly. I just didn’t know what to do as my anxiety increased.
prompt until I finally get to a human. Do you think other people
The bottom line is that I almost missed my flight.
frustrated when sitting on the phone going from prompt to feel this way?
SVT: I had a very similar experience on my last travel. I was run-
JB: I think it depends on whether the technology is working
kiosk; the type of things it was asking for (like identification),
is flawed and it’s not doing the job effectively. In many cases, the
ning late, and I didn’t preprint like I normally do. I went to the I didn’t have. I got frustrated because it wasn’t going to give me
what I needed. I have a happier story than you because when I finally got to a human, they did take care of me and got me
Spring 2013
and you’ll need to talk to a person to take care of your needs.
kiosk trying to print my ticket and everything was going wrong. I didn’t understand what they were asking me; it wasn’t user
what I needed. And they got me on my way with a smile, and I didn’t miss my flight.
10
Let’s face it, sometimes the technology doesn’t fit your needs
and if it has been designed properly. It could be that the design development of these products did not involve the right people or they were rushed to market too quickly. In the end, people are left unhappy and frustrated.
We ran into a situation in the quick-serve restaurant market.
Customer Care News
They put kiosks in quick-serve restaurants and found that
SVT: There are a couple of interesting issues when you look
only want to interface with a machine. I don’t know if that’s
is the boomers. The boomers controlled our economy and will
people under the age of 35, when they are in a rush and hungry, as intense as when someone is late and they need to catch a plane.
SVT: The thing with a kiosk is that it reduces human error, and people’s orders are correct more often. If it isn’t, they can only blame themselves. The other interesting thing that Jeof and I learned is that customers tend to upsell themselves more
than if they were at the counter. Therefore, if a customer service representative was trying to upsell the customer, the customer is more likely to say no. But when interacting at a kiosk, one is more likely to say yes. Restaurants really love these things
because they are making more money faster by using the kiosks
at the different generations. The largest population by number continue to do so for a while. The next generation is Gen X — those born in the ’60s and ’70s. We’re a much smaller number
who tend to have some angst and are angry at the boomers —
not only because they experienced a better childhood, but also they left us with the bill. And then there’s Gen Y, also known as
the Millenials. It’s not surprising that the younger generations
are adapting much more quickly than the older generations. In fact, this is the first time in human history that younger
people know more about technology than older people. Now, when grandpa can’t figure out the VCR he hands it over to the grandkids.
and have happier customers.
KL: Do you see any social implications from that?
JB: When it comes to kiosks in restaurants, EMN8 provides
SVT: Oh absolutely. The other thing we see as a trend is the
technology is to account for the ever changing situations that
with its privacy. And the concern for privacy increases with age.
the appropriate technology. The challenge when developing human beings encounter. For example, rushing to catch a plane. Sean, do you think these things are considered?
SVT: They’re probably looking at it from the technology up standpoint rather than from a market-down. Instead of thinking
about what it does they need to look at what it solves — what user goals are you meeting. Jeof calls it the “do-fors.” Don’t think about what the technology does, think about what it does for your customer.
KL: With all the technology I utilize on a daily basis, I often wonder if developers actually do that or if the goal is to make it faster rather than consider what I’m experiencing.
JB: The ones that do it well consider their customers’ needs. Like Apple’s interface (iPhone iPod, iTunes) — they spent a great amount of time considering what the customer needs to accomplish.
younger generation (much like Europe) is far less concerned
Younger generations are less concerned about privacy due to Facebook, Twitter, instagram and tumblr. They are more wired
into the technology than the rest of us. Having said that, I do
want to add that the boomers are becoming more comfortable with technology. They are using Facebook and the Internet
more than ever before. Once they understand the benefits, they use it. They are just slower adapters and concerned more for their privacy.
KL: There is a hurricane of information
coming
at the consumer
today. It sounds like what both of
you are saying is that technology is here to stay.
KL: Another issue you brought up is the generational issue,
SVT: Not only is
ogy. For the first time in the history of the United States, the
here to stay, but
when you mentioned that people under 35 enjoy using technol-
workplace has four generations (the Silent Generation, Baby Boomers, Generation X and Generation Y). Clearly, the Gen X technology; it’s just part of who they are. How do you see the older generations using technology?
www.customercarenews.com
technology
humans’ dependency on technology will only increase in time
and not decrease.
Sean Van Tyne, co-author of the new business leadership book The Customer Experience Revolution - How Companies like Apple, Amazon, and Starbucks Have Changed Business Forever
11
Spring 2013
and Gen Y employees are more tuned in and aligned with using
the
SVT: Statistically, whenever you can involve a human face, both
the friendliness and interaction go up. That is why you see pictures of faces on websites.
Another interesting use of technology is how stores like Wal-
Mart, Best Buy and others use it to identify the customer. With that information they track what is purchased and are able to
direct the customer to specific locations in the store. If you are in their loyalty program they remain connected with you. They Photos courtesy of BRIGANTINE MEDIA (WWW.BRIGANTINEMEDIA.COM )
remain fully engaged with the customer.
In my world, that means that the need for technology to be
ubiquitous or invisible is also going to become mandatory. That is the ultimate interface, one that is invisible. A classic example
is the thermostat; you set it and you don’t think about it again, especially if it’s automatic.
KL: If what you are saying is true, how will companies interface with customers? What can they do to provide the ultimate customer experience, so we’re not left frustrated?
JB: One size doesn’t fit all. A company needs to look at itself and determine its core competency. It needs to determine what it is
JB: No. Each company needs to decide what technology they
want to use and how it will provide a better customer experi-
ence. Some companies will have little use of high technology. However, if you serve a young, high-tech audience, you’ll want to offer them the latest and greatest social mobile experiences.
JB: Companies need to understand that at some point they need to have a human experience; even if you order something online it will get delivered to your house. You may want to call
someone for support, which would be an analog experience. I think that companies that really understand their market
and understand where to set the digital and analog experience will be much farther along than a company that runs fully automated.
KL: It may be that it all comes down to the relationship the customer has with the technology. At times it could be an
exceptional relationship or it could be a disaster. What sug-
gestions or recommendations do you have for organizations or companies providing technology?
SVT: I think Jeof and I would say the same thing — it requires the three Ds: Determining, Developing and Delivering the
proper technology, and we discuss that in our book, The
Customer Experience Revolution. First the company needs to
KL: I understand that technology is here to stay and that
then deliver it. And always make sure it delivers on the prom-
However, technology does not offer the human touch. When
determine what it wants to be, then begin development, and ises made as well as monitor the results.
I walk up to a human interface at a store or a bank I want the
JB: Additionally, as Keith mentioned earlier, there is so much
drives the motivation to come back and do business with that
tivity and access to information anytime, the big challenge is
smile, which gives me the feeling that “I’m important” and
Spring 2013
we’re coming to?
and what it is not. Technology needs to be part of that strategy.
companies use it to differentiate themselves from competitors.
company again.
12
KL: Are humans going to be replaced by robots? Is this what
information readily available. Today, with all the interconnec-
to qualify information. Just because it’s on the Internet doesn’t
Customer Care News
make it true or even realistic. Companies designing technology
example, they expect the same service with other companies.
quality information that does what it says it does, I think they’ll
will be lost to a competitor. Gina says when a company sets
for people need to understand that if they can help people get
be further ahead. Using the three Ds to determine what the customer needs before they make huge investments in technol-
ogy will save companies money and grief. And never losing site of the importance of engaging people.
If they don’t receive it, there is a good chance the customer the standard in one area of customer service, it sets the bar for all industries. That’s why it’s important to benchmark out-
side your respective industry. That’s where people form their impressions.
KL: Once again, it’s relating to what the end user needs. In this
KL: That expectation of the customer is critically important.
to utilize.
was exceptional. Two days later, the service I experienced with
case, it’s compiling data and making it easy for the customer
SVT: I look at it as a business opportunity and a differentiator. What are the conditions that people are using your technology? If I really understand what information people need
I recently returned a pair of shoes at Zappos. The experience another company fell short in comparison to my experience with Zappos. I actually remember comparing the two experiences in my head.
because of what they want to do with that technology, I will
JB: You bring up a really good point, Keith. There are many
for an extra piece of information.
economy right now. Work is no longer about a service economy.
realize that a noisy airport may not be the best time to ask them
I will refer back to the conversation Jeof and I had with
Gina Pingitore, the chief research officer at JD Power and
companies that don’t realize that we are in the experience If your company isn’t thinking about the experience it is delivering, it will become irrelevant in the marketplace.
Associates. We were talking about where people get their ideas
JB: We don’t sort by industry, we sort by experience. Whether
to pay attention to where they get their experiences with tech-
ence with Zappos, you’re going to compare the combination,
of the kinds of experiences people should have. This is the time
nology outside their industry. People don’t sort the experience
by industry. If a person experiences great service at Amazon, for
it was interacting with a person over the phone or your experiwhich was technology and analog.
KL: It also involves the emotional experience the customer has with a product or service that is important. The research shows that people buy or don’t buy based on their emotions. When I
feel good with the experience, I want to feel good again; I don’t want to be frustrated. I think the emotional side of what the customer experiences is critically important. Your thoughts?
SVT: Jeof and I also agree. We have a chapter in our book
dedicated to the emotional connection, and we talk about the science behind it.
KL: At the end of the day technology has to create an overall positive experience for the customer.
JB: Yes. If not, a company will soon become irrelevant, which is a polite way to say they’ll go out of business. They get mar-
ginalized and then they try to adjust. At which point it is too late. We’re seeing that when someone gets the experience right
www.customercarenews.com
and others don’t get it, the irrelevancy can happen very quickly.
Spring 2013
Jeofrey Bean, co-author of the new business leadership book The Customer Experience Revolution - How Companies like Apple, Amazon, and Starbucks Have Changed Business Forever
When they get it right they will be in business for years to come. CCN
13
Never Underestimate the Power of Word of Mouth Creating the ultimate customer experience can provide some of your company’s best marketing opportunities
L
ike most start-up CEOs, I’m always concerned
easy? Not really. But there are some basic underlying principles
that finding new customers fuels a company’s
help grow your company through WOM.
about how to acquire new customers. We all know
growth — but it’s what you spend to find them that can ultimately define the suc-
1. Know Thy Customer: It all starts with actually knowing
certainly no lack of dials to turn or levers
receive information and how they like to interact. It’s not
cess or failure of a company. And there’s
to pull. Whether it’s investing in online marketing channels such as search engine
optimization (SEO), search engine mar-
keting (SEM) and social media; exploring new segments; or even looking offline with a billboard on highway 101, every business
owner is manically focused on how to grow his or her company.
As most of us know, there is no bet-
ter source of finding new customers than through word of mouth (WOM). The
enough to simply spit out the demographic and firmo-
graphic basics about your customers. You have to get to
know them, kind of like getting to know your best friend or spouse, and truly understand what motivates and inspires your customers. And to obtain this information, you’re
going to have to put in the effort to constantly speak to
and interact with customers. Interview customers, conduct
focus groups, distribute surveys, engage in sales calls — you and everyone at your company must focus on getting to know your customer as much as you possibly can.
2. Differentiate Your Touchpoints: Providing an exceptional
vice is can do wonders for a company. And,
the various touchpoints with each and every customer.
WOM doesn’t require a huge marketing
investment; it’s got potential to scale big time (think social media and house par-
ties), and ultimately can become your most
effective marketing channel (we all trust our friends, right?). The idea that existing
customers can serve as “free” mouthpieces
to market your company to the rest of the world is incredibly
enticing, but it also requires a committed investment in your customer experience.
experience requires delivering the unexpected across all Whether it’s the small details in the packaging, the heartwarming customer care, or even a personal call from the
CEO to ensure satisfaction with each customer — every
touchpoint is an opportunity for the company to deliver
that unexpected delight that will lead to WOM. Start by identifying every possible way an average customer might interact with your company and list all the different things you can do to “surprise and delight” customers at each of those interactions.
Emotionally motivating existing customers to the point
3. Personalize the Experience: Everybody is talking about
chance. It requires a deep commitment to your customer and
few companies are truly making an attempt to personalize
where they serve as these “free” mouthpieces doesn’t happen by
an “all-in” investment in their experience with your company. In
order to deliver a phenomenal experience, companies must be
Spring 2013
who your customers are, what they like, how they like to
power of one customer telling other potential customers how great a product or ser-
laser focused on knowing their customers and must be convinced that the company exists in order to serve their customers. Sound
14
that you can focus on to deliver an exceptional experience and
personalization, especially in the e-commerce world, but the entire customer experience. By utilizing existing customer data, constantly researching how customers interact
with your company and by taking the time to actually listen
and engage with your customers (and yeah, this may mean
Customer Care News
actually taking time to get to know your customers), you’ll
7. Hire the Right People: This is a pretty obvious principle
experience. The key here is making sure that you maintain
answer. But when I’m interviewing candidates, I ask a ton
naturally start to identify how you can personalize the
flexibility and empower employees with the ability to make decisions.
4. Measure Effectiveness: It’s hard to make changes to the customer experience if you really have no idea what is or is
not working. Before you start beefing up your focus on the
customer experience, make sure that you’ve built in process-
es to effectively measure the impact of what you’re doing. Whether that’s conducting a Net Promoter Score (NPS)
survey every quarter (by the way, I highly recommend
that is part of every “what’s critical to your success” type of
of questions that measure their aptitude to serve others and to truly want to help not only other employees, but every
customer and potential customer as well. Employees who only look out for themselves or put themselves ahead of their team or customers, aren’t going to be a great fit. If you
are truly committed to delivering a phenomenal customer experience and driving WOM, you must hire the right people who can thrive in your customer-focused culture.
It’s absolutely mind boggling how many marketing chan-
measuring NPS), following up with customers individually
nels exist today. Seriously. And trying to prioritize every single
services such as Salesforce or Uservoice (a great tool for
for even the most well funded startups or profitable busi-
to garner insights, or conducting analysis of feedback using analyzing feedback gathered from your website), you must build in processes to measure your customer experience efforts. With this knowledge and a better understanding of
your customer experience, you’ll know what actions to take to improve and innovate moving forward.
5. Monitor your Competitors: I know we all monitor our
competitors; we’re always keeping tabs on what our biggest competitors and rivals are doing. But are you focusing on what they’re doing with their customers? Are you ordering
from your biggest competitors (when possible) and seeing how they’ve changed their experience? Are you submit-
ting Help requests, calling their customer service reps and sending emails to “help@” to get a sense of how your com-
marketing channel is next to impossible, and not recommended, nesses. If you’re going to focus on absolute-
ly crushing a single marketing tactic, I suggest focusing on delivering the best experience for your
customers. By focus-
ing on a phenomenal
customer experience,
you’ll not only get to know, and learn from, your customers, you’ll also stand proudly as your customers choose to voluntarily market, sell and promote your company to others.
Today’s customer acquisition practices, particularly for
petitors are responding to customers? If not, then you’re
e-commerce companies, have evolved — or devolved — back
sounds like a huge pain, but I can assure you that this effort
chat interface or extending an offer for free shipping. It’s “ser-
really not keeping good tabs on your competitors. I know it
alone will provide some amazing insights into what you can do better or differently.
6. Customer Service as a Strategic Asset: Every CEO I know emphasizes the importance of customer service on the
overall experience. But very few treat customer service as
a strategic asset to the company. In fact, most CEOs view
to the basics. It’s no longer just about providing a customer
vice with a smile” and a personal touch that customers want — but don’t always find when they’re staring at the computer
screen. Breaking through that barrier and reaching through the screen to personalize the experience is not easy or impossible —
but it is becoming more and more important for those companies looking to differentiate themselves from their competitors. CCN
customer service as a cost-center rather than a function
John Lusk is a serial entrepreneur; the author of the best-
customer service to truly add value and differentiate the
Life Adventures of Two First-Time Entrepreneurs; and a
that can drive new customers and revenue. In order for
entire experience, a company must adopt a “customer-first” customers, not simply transacting with them, has to be a priority and must be instilled in every employee.
www.customercarenews.com
graduate of The Wharton School. He is currently the Founder
and CEO of Rivet & Sway, an e-commerce company that
Spring 2013
philosophy as part of its core DNA. A passion for serving
selling book, The MouseDriver Chronicles: The True-
sells designer eyeglasses to women. Lusk can be reached at john@rivetandsway.com or 888-900-4522.
15
A Good Double-edged Sword Technology pushes companies to provide increasingly better customer service
C
onsumer
of calls on the first ring is a main function of IVR.
tions
rise
way. We’d rather just get our account balance (or whatever
easier, faster, immediately
our lives. It’s only the most complicated issues, like a billing
expecta-
every year — we want it if possible. That rise correlates to an increased use
of technology in customer service. Both in cause and effect.
In the customer service
Most of us are too busy to want to talk to an agent, any-
information or assistance we are seeking) and move on with
dispute, that gets us on with an agent — and the inevitable
polite chitchat and overview of new features or offerings, extending the call. We don’t have time for that. The mod-
ern world moves too fast. But the question is whether the chicken or the egg came first.
Take a typical customer call before IVR came along. In
world, interactive voice
many, many cases we could expect to wait on hold for a half
the staples. We’ve watched
still expect a long wait for an agent today, depending on
response (IVR) is one of it go from hard-to-use
newbie to awkward teen-
ager to competent veteran. Along the way, it’s changed customer expectations.
In the early years of
hour or more to get an agent on the line (actually, we can
how many agents there are and how busy they are). Then IVR came along and, even in the early days, reduced
the time we had to wait to talk to someone (be that a person or a robotic, awkward, disembodied voice). With the new technology, we came to expect a shorter wait.
Fast-forward to today, with high processing speed mak-
IVR — let’s be frank — the technology was a little rough.
ing IVRs nearly as capable as live agents and making most
live agent option unless we hacked the code right through
a balance, etc. So now we expect immediate pickup and a
It wouldn’t necessarily understand us and wouldn’t give us a the phone, Matrix-style (not possible).
While some IVR systems
today are deficient in the use category (i.e. the designer
calls much faster — as quick as a minute or two to check shorter overall time for calls.
The modern world moves too fast. But the question is whether the chicken or the egg came first.
gave it a bad call menu that
confuses and annoys callers),
most have up-to-date technology behind them, including VoiceXML programming. (VoiceXML is kind of the
HTML of voice applications.) And in the past decade,
tion
exceed
providing
customer
customer
expecta-
service. Add technology to tions: raise expectations. Add
customer
expectations:
raise
Either way, consumer expectations are going up. Which
is, again, a double-edged sword. It keeps organizations
technologies).
service. CCN
In the past, IVRs didn’t communicate with us all that
sweating but also pushes them to improve their customer
well because they didn’t have the processing speed for accu-
Charlie Smith has written about technology and life for almost
sounding speech of their own. Today, they do.
foists his ideas onto the world as the Marketing Communications
rate interpretation of our complicated speech or natural-
Faster, better IVRs have become the quick alternative to
Spring 2013
to
expectations again.
double-edged
sword for any organiza-
meet tech
a
computer-processing speed has gotten faster and faster, enabling huge advances in IVR (along with plenty of other
speaking with a live agent. We don’t even have to wait in a
call queue for an agent — answering an unlimited number
16
It ’s
20 years as a reporter, technical writer and blogger. He currently
Director for Plum Voice, an IVR-industry leader, through Plum’s
IVR Deconstructed blog. Smith has a B.A. from James Madison University, and can be reached at 303-433-3755.
Customer Care News
5 Ways Brands Can Take Social to the Next Level
T
he influence of social media needs no introduction.
2. Evaluate the discussion: Beyond focusing on brand
acknowledged and resolved quickly. In fact, most
that include complaints, compliments, sales inquiries and
Consumers now demand that their complaints be
consumers would rather solve an issue online than through tradi-
mentions, start pinpointing engagement opportunities questions.
tional methods. The shift to social media for these practices is the
3. Participate in the conversation: Don’t just watch the
Businesses are turning to social media as the go-to medium
with your customers and prospects. Let them know you’re
basis of social customer relationship management.
for building relationships with their customers. Despite the
conversation unfold from the sidelines. Start engaging listening to their feedback and are there to help.
acceptance of social media as a viable business channel, and the
4. Be proactive and time-
in the 2012 Customer Experience Benchmarking Study are
pens in a flurry. Feeds,
rising need for social customer care, the following statistics cited alarming:
• 70 percent of companies have an active social media program, but only half proactively listen and respond to brand conversations
• One in four companies is still determining its approach toward social media
• 53 percent of companies with social media teams have not developed social media training
• Only 37 percent of companies are using daily monitoring programs to see what their customers are saying
• 43 percent of executives feel as if they don’t have the proper resources to tackle social media
It’s clear that companies have a ways to go in developing
a social media presence that will support them in developing a customer-centric brand. Five ways that brands can start delivering a positive customer through social include:
1. Start monitoring the online conversation: By listening to
what your customers are saying online, you’ll be able to join ing social networking sites as well as blogs and forums. Find out where your customers are sounding off online.
www.customercarenews.com
status
updates
and
comments are con-
tinuous. Things move
fast on the Internet. Timeliness is essen-
tial in being proactive, helpful, effective and
relevant. Make sure to
Jason Wolcott
seize the moment as it comes.
5. Track your success: Keep a record of your engagements and how they were received. You’ll be able to optimize
your response methods and even create a case for why social media and social customer care bring value to your business. CCN
Jason Wolcott is the Founder and CEO of Digital Roots, a social CRM vendor. If you’re interested in learning more about social
media in the contact center, or how a social customer care program can positively impact your company’s bottom line and reputa-
Spring 2013
the conversation and help move it forward. Start monitor-
ly: Social media hap-
tion, contact Jason at jwolcott@digitalroots.com or follow him on Twitter @JayWolcott.
17
Best of Breed vs. All in One
F
or years call centers have been plagued by wellintentioned agents with marginal training who
spend their days in poor workspaces in front of
dated technology providing a mediocre or worse customer experience.
The latest marketing data indicates that a merely “satisfied”
customer is of little more value than an “unsatisfied” one. Yet, in
today’s multichannel contact center environment, providing a truly exceptional integrated customer experience moves a “satisfied” customer to a new level. There, they will be evangelists and
loyal supporters of your brand, representing significantly more lifetime value.
What’s driving the move to the “cloud?”
According to the American Marketing Association, the
average yearly cost of running a 200-agent call center approaches nearly $10 million.
We all know the advantage of taking your contact center to
the cloud: no cap ex, most current hardware and software, ability
to rapidly deploy new apps, and the ability to respond to change. But too often the cloud means settling for one vendor’s bundled
offering. No single vendor offers a complete quality solution, regardless of its claims. Using one “jack of all trades” vendor for
all your software locks you in to one technology system, which may be good in some areas, yet poor in others. Many arguments
have been made regarding the decision to purchase software
from best-of-breed versus end-to-end vendors. Many times the drawbacks of the end-to-end solution may be invisible until after the installation is complete.
The average yearly cost of running a 200-agent call center approaches nearly $10 million.
Contact centers with 200 to 2,000 seats are starting to
adopt and/or consider cloud-based contact center infrastructure
ning a vacation. Should you go
complex environments, vendors are forced to support integra-
structure vendor is a bit like plan-
for the “packaged tour” with an integrated system from one ven-
— the so-called “best-of-breed” approach?
If you’re looking for the optimal solution in each area, the
solutions. As these solutions are installed in larger and more
tion with back-office and third-party applications, i.e. thirdparty customer relationship management (CRM), workforce management (WFM), recording, QA, knowledge management (KM), etc.
The vendors are responding to the increasing demands of
best-of-breed option provides richer functionality. But conve-
their clients. Many times these are requirements and advanced
appealing. Until you discover the compromises.
Vendors make compelling claims about return on investment,
nience and cost can make the all-in-one packaged approach very
All-in-one systems provide multiple applications with a
common look and feel. The downside is that some applications may have anemic functionality that frustrates users and may
Spring 2013
interfaces with other systems.
Selecting a call center infra-
dor or plan your own itinerary
functionality that only a best-of-breed system can provide. but the best place to judge the ROI of any system is in your environment. CCN
cause missed market opportunities.
Chris Attebery is the Director of Relationship Marketing
excel in just one or a few applications, and can also pose chal-
cattebery@nexxphase.com.
Typical best-of-breed systems are designed specifically to
18
lenges such as increased training and support and complex
for
NexxLinx/NexxPhase. Chris
can
be
reached
at
Customer Care News
Customer Care Glossary
Blog: A blog is an online journal that’s updated on a regular basis with entries that appear in reverse chronological order. Blogs can be about any subject. They typically contain comments by other readers, links to other sites and permalinks. See SOCAP’s blog at http://www.socap.org/networking/blogs.aspx BOS: Business Operating System — An environment that represents the vast warehouses of knowledge of an organization-the way a business is run, the way
A
API: An API (a technical term for application pro-
people and information come together to add value to
Abandoned Call: The caller hangs up before reaching
gramming interface) allows users to get a data feed
a business process. A BOS is a repository composed of
an agent. (Also called a lost call.)
directly into their own sites, providing continually
a common operating environment, a business process
Access Provider: An organization that provides
updated, streaming data — text, images, video — for
library and enterprise workflow.
access to the Internet. (Also called an Internet Service
display. For example, Flickr’s API might allow you to
Brand Equity: The level of awareness and consumer
Provider [ISP].)
display photos from the site on your blog. When sites
goodwill generated by a company’s brands and/or
ACD: Automatic Call Distributor automatically
like Twitter and Facebook “open up” their APIs, it
products.
answers calls, queues calls, distributes calls to agents,
means that developers can build applications that build
Business Process Improvement (BPI): Betterment of
plays delay announcements and provides real-time and
new functionality on top of the underlying service.
an organization’s business practices through the analysis
historical reports on these activities.
Application Based Routing and Reporting: The ACD
of activities to reduce or eliminate non-value-added
ACS: Automatic Call Sequencer automatically answers
capability to route and track transactions by type of
activities or costs, while maintaining or improving qual-
and sequences calls on a first-in/first-out basis.
call.
ity, productivity, timeliness or other strategic or business
ACTUAL VALUE: The net present value of future
ARU: Audio Response Unit; automated attendants that
objectives as evidenced by performance measures.
financial contributions from the designated customer,
route calls based on digits callers enter on touch-tone
Business Process Re-engineering: A structured
behaving in the way he is expected to behave, knowing
phones. It responds to caller-entered digits or speech
approach by all or part of an enterprise to improve
what we know now, with no significant unanticipated
recognition in much the same way that a conventional
the value of its products and services while reducing
change in the customer’s needs, in the competitive
computer responds to keystrokes or clicks of a mouse.
resource requirements.
landscape, or in the company’s planned strategy. Same
(Also called IVR, VRU)
as lifetime value (LTV).
ASA: Average Speed of Answer
ACW: After-Call Work. Work that is necessitated by
Average Time to Abandonment: The average time that
and immediately follows an inbound transaction (Also
callers wait in queue before abandoning.
called Wrap-up and Post Call Processing.) Aggregation: Combining data in a way that creates new information. For example, adding the dollar values
B
C
Call Blending: Combining traditionally separate inbound and outbound agent groups into one group of agents responsible for handling both inbound and outbound contacts.
Baseline Market Segmentation Study: The first mar-
Call by Call Routing: The process of routing each call
of all of a customer’s transactions together to create a
ket segmentation study conducted by an organization.
to the optimum destination according to real-time
new field that reflects total purchases.
BELOW ZEROs (BZs): The customers who cost more
conditions.
AHT: Average Handling Time; the sum of average talk
to serve than they will ever return in value. Examples: A
Call Center: Term used to include reservation cen-
time and average after-call work for a specified time
Below Zero might be somebody who takes a lot of free
ters, help desks, information lines or customer service
period. OR Average Hold Time.
services, but doesn’t return much revenue. It could be
centers. The term contact center is being used more
AI: Artificial Intelligence is computers that act in a way
a complainer whose complaint was never resolved and
frequently, as calls are just one type of transaction tak-
analogous to intelligent human behavior.
therefore no longer does business with you. Not only
ing place. It is the part of an organization that handles
AMIS: Audio Messaging Interchange Specification; a
is that person worth zero on that account, but actually
inbound/outbound communications with customers.
standard that permits networking of voice mail systems
has below-zero value because he or she will tarnish your
Calls in Queue: The number of calls received that the
from different manufacturers.
reputation in speaking to other customers.
ACD system has received but that haven’t connected to an agent. services are rendered to end-use customers. Car dealers, retailers, computer resellers, grocery wholesalers are all examples of channel members.
www.customercarenews.com
19
Spring 2013
Channel: An avenue through which products and
Spring 2013
D
Churn: A term that describes customer attrition or
Customer Capital: It refers to the value, usually not
customer defection. A high churn rate implies high
reflected in accounting systems other than as goodwill,
customer disloyalty.
which results from the relationships an organization has
demands of marketers and service providers for cus-
Cloud Computing: Cloud computing (also called “the
built with its customers.
tomer information begin to clash with privacy concerns,
cloud”) refers to the growing phenomenon of users who
Customer Differentiation: The second step in the one-
new entities called Data Aggregation Agents (DAAs)
can access their data from anywhere rather than being
to-one strategy labeled “IDIC” is to differentiate cus-
emerge. By consolidating and controlling outside access
tied to a particular machine.
tomers. Customers are different in two ways: they have
to a customer’s personal data, DAAs will help business-
Conditional Routing: The capability of the ACD to
different value to the enterprise, and they need different
es provide the customer with relevant and timely offers
route calls based on current conditions. It is based on
things from the enterprise. Customer differentiation is
while protecting individual privacy. The basic function
“if-then” programming statements.
vital to pursuing Learning Relationships.
of a DAA would be to act as a central, online storehouse
Consumer Direct: Also known as Direct-to-Consumer,
Customer Experience Development: The process of
for a consumer’s personal information. In a wide-open,
it’s the channel that includes all products and services
overseeing and influencing the totality of a customer’s
wireless world, customers will require their DAAs to
delivered directly to the home through catalogs, tele-
experiences with a brand, product or service, spanning
shield them from mobile “spam,” while sending through
marketing, TV shopping, kiosks, web sites, and the
all interactions and transactions.
messages that truly respond to their needs.
newly emerging automatic grocery-replenishment ser-
Customer Loyalty: The degree to which customers
Data Mart: A special-purpose, usually smaller, data
vices. Consumer Direct describes the process involved
are predisposed to stay with your company and resist
warehouse created and managed for specific business
when a manufacturer sends goods directly to a con-
competitive offers.
units. Almost always, marketing or finance are the first
sumer via the Internet (such as providing music or
Customer Portfolio Management: An organization-
data mart users in the enterprise. It’s much easier and
video) with no intermediaries, but the term also refers
al structure placing line responsibility for improv-
faster to deploy than a data warehouse.
to direct-mail and catalog channels.
ing Return on Customer in the hands of portfolio
Data Mining: Originally a term used to describe the
Consumer Unit: All related members of a particular
managers.
recognition of previously undiscovered patterns in a
household.
Customer Relationship Management (CRM): CRM
database. Now it’s used to add sales value to almost
Contextual Commerce: When the advertisement on
is the same as one-to-one marketing. This customer-
any kind of data analysis tool. It’s one of the top 10
the web site directly pertains to the kind of information
focused business model also goes by the names relation-
buzzwords in present language. Data mining is crucial
a person is viewing, and changes with each visitor, and
ship marketing, real-time marketing, customer intimacy,
in CRM strategies, particularly in e-commerce.
with each drill down
and a variety of other terms. But the idea is the same:
Data Warehouse: A data repository created by extract-
Continuous Process Improvement: A policy that
establish relationships with customers on an individual
ing data elements from operational and OLTP systems.
encourages, mandates, and/or empowers employees to
basis and then use the information you gather to treat
Its main purpose is to provide a dataset that users can
find ways to improve process and product performance
different customers differently. The exchange between a
access without affecting the performance of the online
measures on an ongoing basis.
customer and a company becomes mutually beneficial,
systems.
Co-opetition: Partnering with your competition.
as customers give information in return for personal-
Database Management Software: Computer pro-
Cost of Poor Quality: The costs associated with pro-
ized service that meets their individual needs.
grams in which data are captured on the computer,
viding poor-quality products or services.
Customer Satisfaction Research: Research conducted
updated, maintained and organized for effective use and
Cross Functional Process Improvement: Business
to measure overall satisfaction with a product or service
manipulation of data.
process re-engineering with the goal of eliminating
and satisfaction with specific elements of the product
Database: Any collection of information — from a
stove pipe operations.
or service.
simple shopping list to a complex collection of custom-
Cross-Selling: Selling related goods and services to a
Customer Valuation: The value of a customer to an
er information — is technically a customer database.
consumer. This process is only one way to increase your
enterprise, composed of two elements. Actual valuation
However, the term is usually applied to computerized
Share of Customer.
is the customer’s current Lifetime Value, and strategic
records of information.
Crowdsourcing: Crowdsourcing refers to harnessing
valuation is the customer’s potential value, if the cus-
Design for Manufacturability: Designing or redesign-
the skills and enthusiasm of those outside an organiza-
tomer could be grown to his or her maximum potential.
ing the production process of a product so that it can
tion who are prepared to volunteer their time contribut-
(See also Share of Customer).
be manufactured with the least amount of parts in the
ing content or skills and solving problems.
Customer-Centric: Putting the customer at the center
shortest amount of time, using standard as opposed to
CSR: Customer Service Representative. ALSO
of the marketing effort. For example, measuring cus-
custom parts. (The concept originated in Japan in the
Corporate Social Responsibility, a concept whereby
tomer value, not product sales.
early 80s.)
Data Aggregation Agent (DAA): As the increasing
businesses and organizations perform a social good or
Design Interface: The mechanism by which a customer
take responsibility for the impact of their activities.
specifies exactly what he or she needs. An important aspect of mass customization.
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Customer Care News
Customer Care Glossary
Lifetime Value: Also known as LTV, Lifetime Value is the “run rate” of a customer’s actual value. LTV: see Lifetime Value.
DNIS: Dialed Number Information Service; a string of
Hashtag: A hashtag (or hash tag) is a community-
digits that the telephone network passes to the ACD,
driven convention for adding additional context and
VRU or other device to indicate which number the
metadata to your tweets. Similar to tags on Flickr, you
caller dialed.
add them in-line to your Twitter posts by prefixing a
sales that a company holds.
Drip Irrigation: Gathering customer information
word with a hash symbol (or number sign). Twitter
Marketing Mix: The unique blend of product pricing,
slowly over time, rather than overwhelming customers,
users often use a hashtag like #followfriday to aggre-
promotion, offerings and distribution designed to meet
prospects and visitors with long surveys they might be
gate, organize and discover relevant posts.
the needs of a specific group of customers.
inclined not to fill out, and using each piece to build on every interaction.
I
M
Market Share: The percentage of an industry’s total
Marketing Research: The planning, collection and analysis of data relevant to marketing decision making,
IDIC: The four-step methodology for implementing
and the communication of the results of this analysis
one-to-one relations with customers. IDIC stands for
to management.
Enterprise Application Integration: A generic term
identify customers, differentiate them, interact with
Marketing Strategy: Guiding the long-term use of
for software that integrates legacy and disparate
them and customize.
the firm’s resources based on its existing and projected
systems.
Insourcing: The opposite of outsourcing. A service
capabilities and on projected changes in the external
Enterprise Resource Planning: Back-end processes
performed in-house.
environment.
and systems; i.e., inventory management and billing.
ISDN: Integrated Services Digital Network; a set of
Mass Customization: Shorthand for high variability
Tying your back-end systems with your front-end or
international standards for telephone transmission.
in marketing. It uses the power of the database to vary
customer facing systems is what allows customers to be
ISO 9000: A series of quality assurance standards com-
the marketing message — or the actual product — to
able to check the status of their order, and check stock
piled by the Geneva, Switzerland-based International
fit the characteristics of an individual customer or pros-
availability on an item. Without front/back integration,
Standardization Organization. In the United States,
pect. It is the cost-efficient mass production of goods
customers couldn’t do this.
ISO is represented by the American National Standards
and services in lot sizes of one or just a few at a time.
Error Rate: Either the number of defective transactions
Institute, based in Washington.
Mass customization is not the same as customization.
or the number of defective steps in a transaction.
IVR: Interactive Voice Response; automated atten-
Customization involves the production of a product
Explicit Bargain: The “deal” that an enterprise makes
dants that route calls based on digits callers enter on
from scratch to a customized specification, whereas
with an individual in order to secure the individual’s
touch-tone phones. It responds to caller-entered digits
mass customization is really the assembly of a product
time, attention or feedback. See also implicit bargain.
or speech recognition in much the same way that a
or the rendering of a service from pre-configured mod-
conventional computer responds to keystrokes or clicks
ules or components.
of a mouse. (Also called ARU, VRU)
Metadata: Data about data. For example, a table
E
F
Fulfillment: The physical handling of an order, information request, premium or refund.
K
that tells the system how to translate database codes into words that make a data field easier for users to
Knowledge Management: The leveraging of collective
understand.
wisdom to increase responsiveness and innovation.
Microblogging: Microblogging is the act of broadcast-
Geotagging: Geotagging is the process of adding
Knowledge Mapping: A process that provides an
ing short messages to other subscribers of a web ser-
location-based metadata to media such as photos, video
organization with a picture of the specific knowledge it
vice. On Twitter, entries are limited to 140 characters,
or online maps. Geotagging can help users find a wide
requires to support its business processes.
and applications like Plurk and Jaiku take a similar
G
variety of businesses and services based on location. Globalization: The trend in which businesses cross
L
approach with sharing bite-size media. Probably a more apt term for this activity is “microsharing.” Microsite: A mini-site within a site, usually for a
tem or application program that continues to be used
partner brand.
because of the exorbitant cost of replacing or reengi-
Middleware: Software that mediates between different
Handling Time: The time an agent spends in talk time
neering it. Often such systems offer little competitive-
types of hardware and software on a network so they
and after-call work, handling a transaction.
ness and compatibility with modern equivalents. Legacy
can function together.
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Spring 2013
Legacy System: An older or outdated computer sys-
international boundaries.
systems are frequently large, monolithic and difficult to modify, and scrapping a legacy system often requires reengineering a firm’s business processes as well.
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21
MIS: Marketing Information Systems create rather
One-to-One Marketing: Treating each customer in
Permission Marketing: Obtaining customers’ permis-
than simplify manipulated data, presenting data in
the way he or she wants to be treated. Focused on the
sion to market products or services to them. It is a mar-
a form useful to a variety of people within the
individual customer, one-to-one marketing is based on
keting method whereby companies get their customers’
organization.
the idea of an enterprise knowing its customer. Through
permission to market products or services to them.
Mobility: The subject of mobile/wireless.
interactions with that customer the enterprise can learn
By talking only to volunteers, permission marketing
Monitoring: Listening to agents’ phone calls for quality
how he or she wants to be treated. The enterprise is
guarantees that consumers pay more attention to the
control purposes.
then able to treat this customer differently than other
marketing message. The term was coined by author
Most Growable Customers (MGC): Those customers
customers. However, one-to-one marketing does not
Seth Godin in his book, Permission Marketing. See
for whom the Strategic Value, that is the potential value
mean that every single customer needs to be treated
also Explicit Bargain.
of the customer, most exceeds the customer’s current
uniquely; rather, it means that each customer has a
Podcast: A podcast is a digital file (usually audio but
Actual Value. These are the customers who have the
direct input into the way the enterprise behaves with
sometimes video) made available for download to a
most growth potential — growth that can be realized
respect to him or her.
portable device or personal computer for later playback.
through cross selling; through keeping the customer for
OpenID: OpenID is a single sign-on system that
A podcast also refers to the show that comprises several
a longer period; or perhaps by changing a customer’s
allows Internet users to log on to many different sites
episodes. A podcast uses a feed that lets you subscribe
behavior and getting them to operate in a way that costs
using a single digital identity, eliminating the need for a
to it so that when a new audio clip is published online,
the enterprise less money. Most Growable Customers
different user name and password for each site.
it arrives on your digital doorstep right away.
are also known as second-tier customers (STCs).
Operational Entanglement: Enmeshing the opera-
Portal: A gateway to the Internet that provides not only
Most Valuable Customers (MVC): Those customers
tions of the enterprise with those of the customer.
email, calendars, bulletin boards and chatrooms to visi-
with the highest actual value to the enterprise — the
Providing tools so the customer can perform some of
tors or customers, but also customer-oriented service. A
ones who do the most business, yield the highest
the functions that otherwise would have been per-
good portal solves problems for its visitors or customers.
margins, are most willing to collaborate, and tend to
formed by the enterprise, usually so the customer can
Companies should use them as access points to improve
be the most loyal. MVCs are those with whom the
assume more control over the service being rendered.
customer service.
company probably has the greatest Share of Customer.
Outsourcing: Contracting some or all of a depart-
Potential Value: The net present value of the maximum
The objective of an enterprise with respect to its MVCs
ment’s services to an outside company.
reasonable future financial contributions from the des-
is retention. See also Below Zeros, Most Growable Customers.
ignated customer, if the company were to succeed in applying an optimum proactive strategy for changing
Pareto Principle: Named after Vilfredo Pareto, the
that customer’s otherwise expected behavior.
19th-century economist and sociologist, the Pareto
Predictive Model Markup Language (PMML): A
Natural Language Processing: Allows the computer
Principle is also known as “the 80:20 rule.” It says that 80
new industry standard created by IBM and Oracle that
to understand phrases that are only meaningful in the
percent of an enterprise’s revenue comes from 20 percent
allows models to move from system to system.
context of an ongoing conversation.
of its customers. In practical terms, though, it might be
Product Service Bundle: The services and features that
Needs-based Differentiation: How customers are dif-
90 percent of the revenue coming from 5 percent of
surround the core product, such as invoicing, delivery,
ferent, based on what they need from the enterprise.
the customers, or 60 percent coming from 30 percent
financing, packaging and palletization, promotion, and
Two customers may buy the same product or service for
of customers, depending on the firm’s Valuation Skew
so forth.
two dramatically different reasons. The customer’s needs
of its customer base.
Profiling: Using a series of distributions to describe
refer to why the customer buys, not what he buys.
Penetration Analysis: Measuring how well a com-
customers or prospects in a variety of ways, such as
Niche Marketing: A marketing segmentation strategy
pany has penetrated its potential market by finding
demographically or behaviorally.
in which the firm focuses on serving one segment of the
and reporting on the number of people who look like
market. Niche marketing is very much like segmented
customers, but have not yet bought. (Also called market
marketing, only the segments are smaller — a niche is
share analysis.)
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Spring 2013
P
R
Real Time Marketing: Regis McKenna’s term for rela-
a small, distinguishable segment that can be uniquely
tionship marketing or CRM. Refers to the utmost level
served.
of timeliness regarding the transmission, processing,
O
and/or use of information. A firm that collects and uses customer data in real time can manage relationships
Occupancy: The amount of time agents handle calls
with individual customers much more effectively. See
as opposed to waiting for calls. (Also called agent
also Zero Latency. The term referred to in his book,
utilization.)
Real Time: Preparing for the Age of the Never Satisfied Customer.
22
Customer Care News
Customer Care Glossary
U
UCD: Uniform Call Distributor; a simple system that distributes calls to a group of agents and provides some Relationship Marketing: see Customer Relationship
Skill-Based Routing: An ACD capability that matches
reports. It is not as sophisticated as an ACD.
Management.
a caller’s specific needs with an agent who has the skills
Unified Queuing: Combines all incoming traffic
Response Rate: The percentage of responses received
to handle that call.
(e-mails, text chat, co-browsing, etc.) into a single
from a given promotional effort.
Social
ROI: Return on Investment; a term describing the cal-
Optimization (SMO) is a set of practices for generat-
Unrealized Potential Value: The difference between
culation of the financial return on a business policy or
ing publicity through social media, online communities
Potential Value and Actual Value.
initiative that incurs some cost. ROI may be measured
and social networks. The focus is on driving traffic from
Up-Selling: Selling upgrades, add-ons or enhance-
in terms of a payback period for the investment, or as a
sources other than search engines, though improved
ments to a particular product or service.
percentage return on a cash outlay, or as the discounted
search ranking is also a benefit of successful SMO.
net present value of free cash flows of an investment;
Speech Recognition: The capability of a voice process-
there are many different ways to calculate it.
ing system to decipher spoken words and phrases.
RSS: RSS (Really Simple Syndication) — sometimes
STC (Second-Tier Customer): See Most Growable
customer base is concentrated in a small percentage
called web feeds — is a web standard for the delivery of
Customer.
of customers. A steep valuation skew would be one in
content — blog entries, news stories, headlines, images,
Sticky Application: A portion of a web site designed to
which a tiny percentage of customers account for the
video — enabling readers to stay current with favorite
interact with customers, requiring customers to provide
majority of the value of the customer base. A shallow
publications or producers without having to browse
input and grow “smarter” over time about how to meet
valuation skew would be one where the valuation of
from site to site. All blogs, podcasts and videoblogs
individual customer needs. The “application” becomes
customers is more evenly distributed across the whole
contain an RSS feed, which lets users subscribe to
“sticky” as customers gain a stake in the service and
customer base.
content automatically and read or listen to the material
grow reluctant to take their business elsewhere. See also
Valuation: What a customer is worth to an enterprise;
on a computer or a portable device. Most people use
Learning Relationships.
see Customer Valuation.
an RSS reader, or news aggregator, to monitor updates.
Stove Pipe: Term commonly used to reflect that a
Value of Future Customer: The net present value of a
Socialbrite founder JD Lasica coined the term “news
business function operates in a vertically integrated
future customer’s lifetime value (LTV).
that comes to you” to refer to RSS.
manner, but does not interact efficiently or effectively
VoIP: Voice over IP; combines voice and data on a
with related functions.
single network.
S
Search Engine Optimization (SEO): The process of improving the visibility of a website or a web page in a
Media
Optimization:
Social
Media
T
queue.
V
Valuation Skew: The degree to which the value of a
Vortal: These are targeted vertical portals, sometimes called “vortals,” “vertiports,” or “affinity portals.” They
Touch Points: The priority areas for the application of
are aimed at specific interest groups and focus on pro-
search engine’s “natural” or unpaid (“organic” or “algo-
Knowledge Management, typically: interactions with
viding consumers with a gateway to unbiased informa-
rithmic”) search results.
customers, interactions with suppliers and interactions
tion from other sources. A good vortal solves problems
Segment: A group of customers related either by simi-
with employees. Each touch point represents an area of
for its visitors or customers.
lar needs and/or values, or by outward characteristics
potential process or quality improvement and competi-
VRU: Voice Response Unit; automated attendants that
(demographics, postal code, etc). Different from a
tive advantage.
route calls based on digits callers enter on touch-tone
portfolio in that customers in a segment are usually not
Triple Bottom Line: The triple bottom line (sometimes
phones. It responds to caller-entered digits or speech
individually identified, and customers can be members
abbreviated as “TBL” or “3BL”) is rapidly gaining
recognition in much the same way that a conventional
of more than one segment.
recognition as a framework for measuring business
computer responds to keystrokes or clicks of a mouse.
Segmentation: Grouping the individuals in a database
performance. It captures the values that some organiza-
(Also called IVR, ARU)
into segments based on combinations of demographics,
tions embrace: people, planet, profit — that is, social,
response, purchase behavior or other criteria.
environmental and economic factors.
Share of Customer: In contrast to Market Share, share
Trusted Agent: An enterprise that treats customers’
of customer refers to the percentage of a particular
interests as paramount and speaks on the customer’s
mation system in which there is no or little time passing
customer’s business a firm gets over that customer’s
behalf in all its dealings. With most organizations this
between the updating of an information record and its
lifetime of patronage. The ratio of a customer’s Actual
is a very difficult philosophy to implement, because in
availability elsewhere in the system.
Valuation to Strategic Valuation.
many cases the interests of the customer and enterprise
Z
Zero Latency: A computer term describing an infor-
Spring 2013
don’t coincide. Only in Collaborative relationships do the true interests of the customer and enterprise match.
www.customercarenews.com
Glossary of terms provided by SOCAP International.
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CustomerCare News www.customercarenews.com