CustomerCare News The Promenade at Coconut Creek
by XXX xxxxx
Winter 2014
www.customercarenews.com
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Five Steps To Applying “Big Data� To Your Customer Communications and Marketing page 20
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Online Customer Experiences
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Callconsectetur Centers adipiscas Learning ipsum dolor sit amet, Centers: The Science of Training and Learning page 10
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The Fiesta Movement page 16
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CustomerCare News
Table of Contents 06 Delivering Exceptional Online
Customer Experiences in the Era of Google
Winter 2014
Google and other industry leaders set the
Publisher Dale Jaslove
bar for online experiences
djaslove@customercarenews.com
09 The Customer First Program of
Associate Publisher Keith Levick, Ph.D.
Excellence™
klevick@customercarenews.com
Helping you put your customers first, every time
10 Call Centers as Learning Centers:
16 The Fiesta Movement
Ford Motor Company engages audiences
The Science of Training and Learning
Creativity, flexibility and diversity are keys to successful training programs
12 Why Your Technology
on a new level, utilizing social media to reach consumers where they are
18 Maximizing Quality of Experience An open-door approach to managing the customer experience brings all
Implementation Needs a Peoplefocused Approach Keeping employees and their needs
in mind is essential to ensuring a new
technology implementation goes according
departments together with the customers’ best interests in mind
20 Five Steps To Applying “Big
Data” To Your Customer Communications and Marketing
to plan
Ensure your business is using data to help
14 Responsiveness: The Key To All
it reach its business goals, and ultimately
That Is Good In Business
Responding to clients at all times can set you apart from the competition
reach customers
22
Customer Care Glossary
Editor-in-Chief Jamie Rawcliffe
jrawcliffe@customercarenews.com
Production Manager Chris Schramm
cschramm@customercarenews.com
Editorial & Materials Coordinator Anne Seebaldt aseebaldt@customercarenews.com
Editors/Writers Amy Pagett
apagett@customercarenews.com
Operations Manager Jennifer Barth
jbarth@customercarenews.com
Website Design Melissa Sherwood Contributing Writers Vincenzo Basile, Klaus Enzenhofer, Wendy Ferber, Ann Hellow, Van Nguyen, Daniele Spera, Ross Ian Vance, Andy Wood Website Consultant www.sherwoodandblack.com Customer Care News 32000 Northwestern Hwy., Suite 128 Farmington Hills, MI 48334
www.customercarenews.com
Winter 2014
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. Entire contents copyright 2014 by Customer Care News. All rights reserved. Reproduction or use of editorial content in any manner without written permission is strictly prohibited.
www.customercarenews.com
3
Associate Publisher’s Letter
I
n the Fall 2012 edition of CCN I interviewed Dr. Daniel Goleman — an author, researcher and expert in the area of emotional intelligence (EI). When discussing the importance of EI and customer service he stated, “How customers feel when they
interact with an employee determines how they feel about the company itself. Loyalty is lost or strengthened in every interaction between a company and its customers.” This quote resonates strongly as I often think and talk about it in my speeches and training. The most effective employees, managers and leaders are those who possess both traditional intelligence (IQ) and “people skills” — the ability to truly connect with the customer. This ability to connect with customers and leverage the interaction requires a skill set far beyond simply knowing the product (or service) the company provides and other “technical” information. Do you know someone, for example, who has a high level of intelligence (the valedictorian in high school) but who has difficulty communicating and interacting with others? Sheldon Cooper from the television show The Big Bang Theory comes to mind. It is as if he is missing some sort of mental filter or lacks a “radar system” that others possess. EI certainly provides a good understanding of how emotions play an important role in providing exceptional service. Human beings, however, are more than emotional creatures. The logical and emotional parts of the brain working in tandem certainly enhances our ability to read and respond to people. But what about the social part of the equation? If social intelligence (SI) is defined as the ability to understand and manage people, clearly there is an overlap between EI and SI. With that said, the definition of Social-Emotional Intelligence (SEI) is the ability to build and maintain positive relationships via managing emotions, trusting “gut” feelings, being aware of and responding to non-verbal communication, and empathically connecting with people. How important is SEI in providing the ultimate customer experience? The research could not be any clearer: • A study looking at 3,000 U.S. banking customers found that, on average, 52 percent felt that their banks did a good job in providing numerous ways to bank, correcting errors and making good use of information. However, the average rating dropped to 26 percent when considering employees who displayed poor listening and responding skills. • In the same study, 24 percent were considered to be “advocates” for their banks, 39 percent “apathetic” and 37 percent “antagonistic.” • Another study reveals that a higher EI displayed by the service provider led to greater reported satisfaction with a service transaction. • Numerous studies have shown a strong correlation between employee satisfaction and customer satisfaction. It is incumbent upon CEOs, business owners and leaders to create an SEI culture in order to maximize their market shares. Bear in mind, the business around the corner has similar products and services as you. If you want to gain a competitive edge, consider what business authority Peter Drucker once said — the purpose of business is not to make a sale, but to make and keep a customer.
Dr. Keith Levick
Winter 2014
Associate Publisher
klevick@customercarenews.com
4
Customer Care News
Spring 2013
Delivering Exceptional Online Customer Experiences in the Era of Google Google and Other Industry Leaders Set the Bar for Online Experiences
A
nyone in customer service understands the importance of fast, reliable service to cus-
• A large site, featuring a highly prized celebrity acces-
the bottom line. In the online realm, customer demands for
“Sorry, we’re experiencing some technical difficulties
tomer satisfaction, corporate reputation and
exceptional experiences are even more stringent, and failure
to deliver can have a huge, lasting impact on customer loyalty, brand and revenues.
Online customers want to get in and out of virtual stores
with an unprecedented level of speed. This is known as the “Google Effect” and it means
right now.” The competitive brand, which sells a very similar item, enjoys significantly increased sales for several days — all from the initial company’s promotion!
Not only do customers want their interactions to be faster,
but they also want their experiences to be richer, featuring
they interact with today to be
ratings and reviews. These features can make web pages
as fast and reliable as Google. For the average user, 0.1 seconds
functionality like online product tours, product catalogs and “heavier,” which is at odds with the goal of achieving speed.
is an instantaneous, acceptable
Increasing complexity in the application delivery chain
experience with a Google search.
difficult due to increasing complexity in the path between
interactions begin to slow and dissatisfaction rises. The impact
delivery chain. First, there’s the increasing complexity that
response, similar to what they Klaus Enzenhofer
As response times increase,
of a slowdown can be devastating: Amazon has calculated that a page load slowdown of just one second could cost it $1.6
billion in sales each year. In addition, Google itself found that slowing search response times by just four-tenths of a second would reduce the number of searches by eight million per day — a sizeable amount.
Consider what can happen when online retailers fail to
deliver high-quality online interactions:
Delivering fast, reliable experiences has been made more
the data center and the customer, known as the application
starts in the data center. The growing use of multi-tier archi-
tectures, virtualization and other new technologies in the data center makes it increasingly difficult for IT to ensure optimal
application reliability and speed. There are so many potential
points of failure that trying to identify the root cause of an application performance problem can be like trying to find a needle in a haystack.
Second, there’s the Internet, which is also making things
• Trying to purchase a new racing bike, an online cus-
much more complicated. Third-party components are assem-
slow performance at every turn, he leaves the site and
delivery networks (CDNs), ad networks, video, news feeds,
tomer struggles to research products. Frustrated by purchases the competition’s racing bike.
• Drawn by a manufacturer’s sale on electronics, an
online customer tries to buy a new device. The web-
Winter 2014
sory, crashes. The retailer’s website relays the message:
that customers expect all the websites and web applications
site is slow, performs inconsistently and then actually
locks. Not wanting to miss the price, the shopper calls
a call center for help — a higher cost channel — but even the call center is jammed. The customer, origi-
6
nally intrigued by the sale, abandons the idea to buy.
bled by the browser and can include functions such as content shopping carts and web analytics. A slowdown for any one
of these services can degrade performance for an entire web
page. Today, there is significant complexity at the edge of the
Internet that online retailers didn’t have to deal with back when applications ran solely in data centers that they fully controlled. Additionally, the mobile explosion forces retailers
to ensure strong performance across a variety of mobile car-
Customer Care News
riers and devices, including smartphones and tablets. Greater
ing the same resources. In addition, even if all your
Finally, it’s not just the data center and the web that are
be operating perfectly, there could be something else
desktop browser diversity only exacerbates this challenge.
more complex. Cloud computing infrastructures also affect application performance. Cloud providers rate themselves on availability, but availability does not necessarily translate to high-performance for your customers.
What does all of this teach us in the world of modern web applications?
With so many points that can result in a sluggish or
unreliable website or application, how can you ensure rapid application performance and reliability? The key is for organi-
zations to adopt a new generation of application performance
management (APM) centered on an understanding of the true end-user experience. Several important points underscore this message:
1. Traditional APM tools that provide siloed monitoring of various IT system and network elements are no
data center systems and network components seem to
going awry beyond your firewall — i.e. a slow CDN. Today, the “Internet is the data center” and if you focus solely on elements in your data center, you’re
leaving huge portions of the application delivery chain unchecked.
2. To a similar end, online retailers need united coverage across the complete application delivery chain. Online retailers can derive maximum benefit by monitor-
ing the data center and Internet components of the
application delivery chain in conjunction, in a “single
pane of glass” approach. This is key to understanding the full spectrum of performance-impacting variables and quickly identifying faulty elements when poor end-user performance is detected.
longer sufficient. These tools leave many blind spots
3. Online retailers must understand that the explosion
with one another and the performance of the overall
and applications all the time. Online retailers can’t
because they don’t show how the systems interact
system. For example, even if all your servers are up
and running, this is no guarantee your customers are true for servers in the cloud. Even if a cloud service
provider is exhibiting five- or six-nines availability, a sudden spike in a cloud customer’s application traffic
can result in application slowdowns for others shar-
www.customercarenews.com
just rely on sample data to test applications, since
cost-incurring issues can occur outside the testing interval. Compuware research from the 2012
Winter 2014
having a fast, reliable experience. This is especially
of mobile means customers are accessing websites
holiday season showed that Thanksgiving evening — as opposed to just Cyber Monday — is now
also a prime time for online holiday shopping, as
customers browse their tablets from the comfort of
7
their couches. This is a growing
trend known as “couch commerce,” which has grown more prominent just in recent years as
the lines between Thanksgiving evening, Black Friday and Cyber
Monday are becoming increasingly blurred. Mobile means that no time is okay for mediocre or poor online performance. Online retailers need to be measuring
and monitoring all applications 24 hours a day, seven days a week
and combining this with deepdive diagnostics that allow them to identify the source and cost
of problems and then prioritize resolutions accordingly.
There’s good news for online retailers
Fortunately, leading APM vendors are delivering cost-
effective, fast time-to-value solutions that are based in a true understanding of the customer experience. Armed with the
By now, we all know that fast, reliable interactions are
absolutely critical to an online retailer’s success. So why are
find and fix a wide variety of performance issues before cus-
The simple answer is that there are so many connection and
tomers even notice them.
Going a step further, Compuware is offering services
to its own customers called the Compuware Performance
Pit Stop Service. This service is specially designed for those “on the front lines” for delivering exceptional online
customer experiences. Modern applications are not just
so many e-commerce businesses vulnerable in this area? potential failure points standing between the back-end of the data center and customers’ browsers. Any one of these areas
along the application delivery chain can experience problems and take customers from a satisfactory experience to complete frustration.
Additionally, as modern applications execute more code
growing more complex, but business demands are driving
at the very edge of the Internet — i.e. at the level of brows-
than ever. Compuware’s Performance Pit Stop Service is
and CDNs — retailers must have a granular view of this
application change faster, and IT teams are running leaner targeted at solving this dilemma by providing experts on-
demand who can immediately help solve specific application
performance problems using Compuware’s industry leading technology.
Finally, Compuware also offers a variety of free tests,
which anyone can use to quickly learn how their website
performs across browsers, compared to their competition, and across mobile applications.
Winter 2014
years even as in-store sales growth has remained weak.
knowledge of performance degradation, organizations can then quickly canvas the entire application delivery chain to
End-user experience is the key to ensuring flawless customer interactions
With the holidays rapidly approaching, online retailers are
once again considering how they will maximize e-commerce
8
revenues, which have grown by leaps and bounds in recent
ers and devices accessing various service provider backbones experience. Only a new generation of APM can overcome
all the complexity of modern application delivery chains and
deliver this view. When combined with deep-dive diagnostics spanning the complete application delivery chain, organizations can proactively identify, pinpoint and fix the source of
application performance problems, preventing damage before it is done. CCN
Klaus Enzenhofer is a Technology Strategist for Compuware’s
Application Performance Management (APM) Business Unit
(www.compuware.com/en_us/application-per-
formance-management.html).
He
Klaus.enzenhofer@compuware.com.
can
be
reached
at
Customer Care News
The Customer First Program of Excellence
™
Helping you put your customers first, every time It 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.
“The rationale for developing the program derives from the philosophy that providing the finest care for customers is not a single event, but rather a never-ending process,” says Customer First Program Director, Keith Levick, Ph.D. “Customer service (or care or experience) is not a ‘buzz’ 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.”
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 let them know that. The 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.
The customer experience — defined as all the interactions that consumers have with or about a company’s messages, processes, people, products or services — has replaced the more traditional role of customer service. According to Levick, this requires companies to redefine how they conduct business. The research shows:
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 customers that they are committed to providing the best possible experience time and again. “As publisher of Customer Care News magazine, I am pleased to help underwrite this program that is designed to help small businesses establish the ultimate customer experience by getting their staff and managers on the same page,” says Customer Care News Publisher Dale Jaslove. “I believe the Customer First Program of Excellence does just that. We are pleased to be a part of this program.”
• 5% of companies really understand the value of customer experience and embrace it. In these companies it is woven into their culture and fabric. • 20% 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 committed to it. • 75% of companies do not believe that customer experience matters. They do not see it as a differentiator regardless of what the research shows. These tend to be commodity-driven businesses.
Among the materials available to participants in the program are custom-designed certificates, window decals, employee “lunchroom” posters and employee wristbands. In addition, an owner’s guide helps owners and managers implement the program, directing them as they establish this initiative designed to improve customer retention while also generating new and loyal customers.
“By participating in the Customer First Program, companies are taking the first step of many to become a 5 percenter,” according to Dr. Levick. “It does not happen with simple slogans or rah-rah speeches. It starts with an awareness that this will take a commitment — one that starts from the top and extends across the entire company.”
To find out more information about the Customer First Program of Excellence and how your business can get involved, call 888-438-9528 ext. 808 or go online to www.ccncustomerfirst.com. Winter 2014
TM
www.customercarenews.com
CUSTOMER FIRST PROGRAM OF EXCELLENCE™ WWW.CCNCUSTOMERFIRST.COM
9
Call Centers as Learning Centers: The Science of Training and Learning
P
eople learn together, but different people learn differ-
ently. The preceding phrase outlines two concepts in learning theory that are paramount to under-
standing how people learn.
The first concept, people learn together, implies that learning
is inherently a collaborative activity. This can occur organi-
cally throughout someone’s life, such as school, work, church, extracurricular clubs, or other social activities. Research suggests
that being social and learning are two aspects of a singular event. To put it another way, social environments are also learn-
ing environments
2000 found that learning is more enjoyable and effective when
trying various methodologies, or means, until the information is learned, regardless of the learner’s comfort level.
However, trainers tend to follow a preferred method of
teaching, regardless of how well it helps students learn, and they’re unlikely to change their means significantly.
One commonly cited reason is the need for the same train-
as the call center
disconnect as it assumes that the background, competency and
SupportSeven,
a 200-seat call cen-
ter in Chattanooga, Tenn., knows this all too well. Since
consistency across training delivery only furthers the learning
learning styles of the trainees themselves are also “consistent.” The need for organizations to be flexible, creative and diverse in their methods is not only something that can be witnessed by
having a conversation with a newly hired call center representative, it’s also rooted in hard science.
The process of thinking is essentially our ability to process
2007, SupportSeven
information. The process of storing and recalling data, however,
ing
sions of being “deep in thought” or having “shallow thinking,”
has
been
grow-
dramatically.
Each new year has brought additional
clients, more contact center agents, and a greater need for effective training and development — a task few people would
argue can be done without social learning. Even fewer people would argue that learning is not essential to being successful in
a call center. Some would even suggest that learning is simply a byproduct of individuals working together to accomplish a
singular goal. SupportSeven’s goal was to create a culture where agents were continuously developed through training.
is much more complex. Shown through the colloquial expres-
we can see that different types of information require different
levels of processing. For instance, when a call center agent sees the name “Albuquerque,” it takes a different level of processing to recognize the letter combinations for spelling it correctly on a customer’s account than it does to pronounce it verbally to the
customer, and even more so to recognize that it is the name of a city. One’s ability to process information on each level is directly
related to how well the information was learned, practiced and synthesized.
The need for call centers to understand their approach
This involves focusing on the needs of its members in a
to training is essential for improving their learning outcomes,
ratio in half, which allowed trainers to use more means to reach
dichotomy between the means of how students learn and how
social learning environment. First, it cut the agent-to-trainer the agents, including:
Winter 2014
lecture as they would a video or hands-on activity. A study in
ing to be consistent across multiple classes. Unfortunately,
environment.
• More time to develop formal learning workshops,
• More one-on-one attention for non-formal job coaching, and
• More expertise to develop informal eLearning modules.
10
an individual has the capacity to retain just as much from a
and there are few contexts as social
Ross Ian Vance
The second concept, different people learn differently, explains
that individuals learn in a variety of different ways. For example,
however, this is only one factor that drives call center success. A
educators teach can create a need for learners to supplement
their training by relying on modeling the performance of others. In short, the less effective a training program is, the greater the
need for agents to be highly motivated and self-aware in order
to be successful, which carries the added effects of shrinking the
Customer Care News
pool of possible candidates, raising wage expectations, increasing
differently. Organizations must first begin to recognize the social
This is the greatest detriment to training in a call center
exist, one can begin to incorporate aspects of other contexts with
demands on human resources, as well as others.
environment because most organizational development programs do not see this happening in real time. Instead, organizations that do not successfully achieve learning outcomes assume
that they were unable to gather the right candidates for the job, thinking that motivation and self-awareness should already be
qualifications required for call center employment. In actuality, a training program focused on creating a diversity of learning
contexts and methodologies may have provided the tools for those candidates to be productive and prosperous employees for
contexts they create in their training. By realizing these contexts the goal of making learning more collaborative. Second, organizations need to clearly define their learning outcomes and aim to accomplish those outcomes by constantly switching up training
methods. Creating a flexible, creative and diverse training curricula
will help learners retain and synthesize more fully, and therefore process information more effectively. Focusing on these improve-
ments is the evolution of turning the call center into a learning center. CCN
the company.
Ross Ian Vance has been working as an educator and corporate
diversity and flexibility in its training, it was possible to develop
and current doctoral candidate at the University of Tennessee,
SupportSeven found that by focusing more on creativity,
each agent to be an excellent person rather than just an excellent
employee. Not only does this build value for each employee in
the workplace that endeavors to develop them personally, but and self-awareness are fostered as a result.
The good news is that improving training and devel-
opment upstream is not difficult. In fact, it is as easy as remembering that people learn together, but different people learn
www.customercarenews.com
his research has led him to publish and speak both nationally and
abroad. His expertise ranges from dynamic classroom teaching
to designing and developing eLearning platforms. Vance is the Client Engagement Specialist at SupportSeven a full-service call
Winter 2014
also the aforementioned intrinsic characteristics of motivation
instructional designer for 12 years. A graduate of Lee University
center in Chattanooga, Tenn. SupportSeven provides scalable
services using the latest in communications technology and is one of only 19 call centers with ATA-SRO accreditation. Vance can be reached at ross.vance@supportseven.com.
11
Why Your Technology Implementation Needs a People-focused Approach
I
mplementing a new technology solution is never easy,
that their needs are considered and represented throughout the
large, distributed and diverse teams. Identifying and
The rolling out of a new technology in a worldwide organi-
and those hurdles are often greater for employers with
implementing a software solution to address an organization’s
zation requires even greater scrutiny, addressing both local and
is rarely the main concern. For the greatest chance of success, in
cultural considerations. The company must present information
business needs is a multifaceted proposition, yet the tool itself
terms of utilizing the solution to achieve stated business goals, an organization should consider the impacts on its employees at every step.
When technology implementations do fail, often it is not due
to the limits of the solution, but rather how it is implemented. Consider the transition to a new workforce management solution. As such technology automates employee scheduling, time-off
requests, time tracking and how employees are paid — all areas that are deeply personal to employees — any change to these processes can prompt emotional responses. Changes to workforce
processes are felt by virtually everyone in the organization, which is
regarding the implementation in a way that best resonates with
all employees, such as graphical representation or mobile-enabled
content. In addition, understanding the existing familiarity with
technology of each audience and adapting the communications style appropriately will be helpful. For instance, with differing levels of workforce management automation across the globe, some
locations may be more advanced from a process and technology
perspective than others. Employees who are accustomed to entering time online may find it simpler to adopt a new solution than those for whom time entry has always been a manual process. Reinforcing the Reasons for Change
Common Change Management Challenges
the problem to each audience in the organization and show how
ing from multiple perspectives, including technical, process and
by helping executives, managers and end users alike acknowledge
user role changes. The challenge is to ensure all parties understand why the organization is making the change and how they will
ultimately benefit from it. Yet, organizations face a number of difficulties in achieving that goal.
Moving Beyond the Headquarter-centric Approach
One of the biggest issues in change management occurs
when a headquarter-centric approach is taken. In the majority of
Winter 2014
global requirements. It is also essential to account for regional and
exactly why managing that change is critical to success.
The organization must be prepared to address what is chang-
company-wide implementations, the new technology will affect everyone across the enterprise. Yet, as organizations become increasingly distributed, they need to take a broader view of each employee community so that all workers across all locations feel
12
implementation process.
Any successful transition process requires the ability to sell
the solution can address their specific problems. This can be done
the current problems and appreciate the substantial costs of not addressing them. Presenting a business case that highlights the cost of staying with the existing processes can help build consensus
for the new solution. It is also essential to address how the switch will affect each segment of the workforce:
•E mployees: Employees may be intimidated by the learning
curve a new solution presents or fear that their concerns will
not be heard or addressed when processes are re-examined. They may also be nervous about how the new processes will affect their jobs. Employee concerns about workforce management technology can be addressed by illustrating how the
new solution delivers better control of their time and can help
Customer Care News
them enhance their role in the organization’s success.
Best Practices for Success
aren’t usually the people making the decision to implement
smooth transition to their new workforce management solution.
menting the change. The organization can get them on board
management:
• Managers: The challenge for managers is that, although they a new technology, they are often tasked with actually imple-
by helping them understand the reduction of manual reviews, simplification of approvals and greater visibility into the team’s schedule that come from the new solution.
There are several strategies organizations can use to ensure a
Consider the following proven best practices for successful change
• Engage stakeholders to help communicate the program and
explain why change is needed by delivering timely, focused messages to specific audiences.
• Executives: Company leaders are typically focused on achiev-
• Recognize the feeling of uncertainty
examples of how the new workforce management solution
how redesigned processes will improve the
ing cost reduction and greater budgetary control. Providing will improve productivity and lead to more effective workforce planning will help to get them on board.
Each group will be affected in distinct ways, and you will need
employees may be having and explain organization as a whole.
• Pay attention to how the plan is working and be ready and willing to make adjustments along the way.
to find a method for soliciting feedback from each group as a
• Take the time to ensure all new practices
that they are a part of the process — another key component of a
• Provide strong and consistent leadership;
result. Soliciting their feedback will also help all stakeholders feel smoothly managed change.
are grounded in the organization’s culture. without it, change will stall.
Ann Hellow
Addressing Shifts in Responsibilities
Putting People First
process change, which can create real anxieties regarding individu-
workforce management software implementation must account
solution. It is critical to communicate why the change is happening
ments. Carefully identifying how the transition will affect each
A new technology implementation is often a catalyst for
als’ responsibilities and how their jobs will be affected by the new
and illustrate the linkages between the personal benefits that will
result from the change and the organization’s measures of success. By providing ongoing support, in the form of training, job aids and tutorials, the company can help all users gain confidence with the new processes.
Conquering Privacy Concerns
Another challenge is that employees may be concerned that
the addition of more sophisticated enterprise software, such as a comprehensive workforce management solution, will spur more
To ensure lasting, positive changes for the organization, any
for the impact on the individual, not just technological requireemployee population and providing a tailored communications
plan will help to garner buy-in and reduce resistance. By keeping all stakeholders well informed and responding to their concerns
and feedback, the organization can ensure the implementation is aligned with both operational goals and company culture. What
results is a people-focused strategy that ensures the individuals
responsible for managing the new solution — and those affected by it — understand why the solution was selected and feel motivated and empowered to ensure its success. CCN
micromanagement, result in less autonomy and create other “big
Ann Hellow, Change Management Consultant for WorkForce
types of solutions can actually deliver greater personal control.
egy, designing custom workforce transformation solutions, and
brother” consequences. The truth is that, in many cases, these For instance, the solution can help them be stewards of their time
within corporate guidelines, rather than having to seek out HR or managers for each time-off request or shift change.
Automated workforce management solutions also provide
more transparency into highly sensitive transactions for employees, how their pay was calculated and whether a leave request has been granted. This transparency can instill more confidence for employ-
ees that the organization is making the investments to ensure they
are treated consistently, fairly and in accordance with expectations.
www.customercarenews.com
aligning global programs and teams. As Change Management Consultant for WorkForce Software (www.workforcesoftware.
com), Ann assists clients in facilitating the people and process aspects of an enterprise implementation. In addition to performing challenge diagnosis and project scoping, process redesign and alignment, and employee communication and engagement
Winter 2014
such as what shifts they’re working, how their time was recorded,
Software, has extensive experience in developing enterprise strat-
initiatives, she also oversees other programs led by the company’s Change Management practice, including learning and development, gap analysis, and strategic planning. Ann can be reached at ahellow@workforcesoftware.com.
13
Responsiveness: The Key To All That Is Good In Business
I
n an industry with more than 21,000 competitors,
time to free up. When our clients call or email with a ques-
growing after 16 years? It is hard to reduce all the
call or email right away. It seems so obvious and simple but
how are we still ticking — and not just ticking, but
moving parts to only one reason, but on the whole it all boils down to customer service.
What does customer service
mean to us? Responsiveness. In an industry where the same prod-
ucts are pretty much available to
everyone, where do we get the
tion, product inquiry or issue, we always acknowledge their
obviously it is not as we constantly call vendors that don’t get
Responsiveness is something we live by. We are always there for our clients. Things won’t always go right, but we will always make them right.
momentum to grow and prosper?
back to us right away. Sometimes by the time they get back to
us we have already placed our
order with another vendor. As the old adage goes, “You snooze you lose.” Responsiveness is some-
thing we live by. We are always
It’s like the Cowardly Lion’s speech in the Wizard of Oz
there for our clients.
refrain is “responsiveness.”
most dire circumstances was during Hurricane Sandy, a super
playbook, it means getting back to our clients right away even
at least a week, and longer in many places. Without any power
where the answer to all questions is “courage.” Well for us the You may ask what do we mean by responsiveness. In our
if we don’t have the answer immediately. Does that make all the difference? You bet it does. When I call a contractor to
come fix my leaky shower, the one who calls me back right away scores in my book. Even if he/she cannot come right
away, just the fact that he/she acknowledged my call goes a long way, and I feel much more willing to wait for his/her
An example of being there for our clients even under the
storm that incapacitated the Northeast in November 2012 for in our office for a full week, our team members worked on
their cell phones from home and even public places, searching for phone numbers online and contacting vendors, UPS
and clients to make sure orders were not going to be delayed,
and that if they were our clients would know the whole story. We did not drop the ball on any clients. We even fielded a rush inquiry and made it happen the old-fashioned way — no
signed/approved paperwork, just word of mouth via cell phone. We have two simple rules to be responsive: respond to
emails and phone calls within 30 minutes and get our clients a first round of ideas within 4 hours. Of course we are flexible
and often get back to our clients right away and get them ideas
much sooner than 4 hours. Under any circumstance, however, we always acknowledge that they have contacted us so that
they know we are working for them and will get back to them with answers soon.
This had always been our way of doing business, but a few
years ago we put our core values down on paper, and now we
Winter 2014
train everyone at our company to meet these core values. We
also focus on instilling the following traits: a positive attitude, good communication, responsiveness, accuracy, flexibility, hard Wendy Ferber
14
working, customer focused and having initiative. We use our core values as a guide when we hire team members and when
Customer Care News
we evaluate them. Everything we do is geared toward meeting
by refrigerated truck to Florida on a very specific day to
the result is responsiveness.
location a day early. That location could not accept the
these values. At the end of the day, when these values are met, Each morning our entire company “huddles” in our confer-
ence room. It is an amazing way to connect with one another, help one another with issues and concerns, share information, learn from one another, and work on improving our respon-
siveness. It is a daily training session that feels more like a pep session to provide the best customer service possible. In these
huddles we work out how to be responsive even when our clients don’t know it. Consider the below examples of what
goes on behind the scenes to provide our clients what they want on time:
Marketing Technology Company
Order: Candy jars for holiday gifts
Situation: Vendor called two weeks before the candy jars
were supposed to ship and said they didn’t have the candy jars and they were not going to be able to do anything to fix the situation.
What We Did: We called vendors all across the country
until we found one in California that had the exact same jars and had them hold them for us. We then called our original
vendor to have them shipped overnight so they could finish the job on time.
Result: The client received the candy jars on time and had no idea that there had ever been a problem.
Major Law Firm
a specific location, but the vendor delivered to the wrong
delivery and the popcorn had to remain refrigerated. There
was a very large additional expense to store the popcorn in the delivery truck overnight and re-deliver it the next day.
What We Did: We spent an entire day on the telephone
with the delivery site, convention center and vendor trying to get the popcorn to the refrigerated facility on the right day.
Result: The popcorn made it to the right place on
the right day so that the client never knew what had happened.
We have additional guiding principles that also help us
respond to and meet clients’ needs:
• We put the customers first even when something happens that is not our fault.
• We follow up on everything from sample orders to purchase orders to order deliveries — we never assume that something has delivered.
• We always try to accommodate changes to orders.
• We always offer clients all the samples and proofs they need.
• We are always professional.
• Things won’t always go right, but we will always make them right.
Our clients thank us over and over again for being so
Order: Tote bags
responsive. In a world where there is so much going on at all
available domestically so we had to do an overseas order.
them and respond to their needs right away. CCN
Situation: The size of tote our customer wanted was not The time frame for overseas orders is approximately three
times, clients appreciate that we are able to stay focused on
months. That requires a lot of follow-up considering a
Wendy Ferber is the CEO of Pride Products Distributors LLC,
days.
corporate gifts. She can be reached at 973-788-6985 or at
normal order is delivered within approximately 15 working What We Did: We followed up with the factory for three
months straight to ensure the order would be delivered on
time. (We make the same profit on an order that takes a few
a company that provides innovative promotional products and
wferber@pride-products.com. For more information about Pride Products, visit www.pride-products.com.
check-ins during two weeks as an order that takes at least 12 check-ins during the course of three months.)
Result: The client was very pleased with their custom tote bags.
Winter 2014
Major Financial Institution
Order: Chocolate-covered popcorn for a tradeshow
Situation: The vendor was supposed to deliver the popcorn
www.customercarenews.com
15
The Fiesta Movement Ford Motor Company engages audiences on a new level, utilizing social media to reach consumers where they are
F
ord Motor Company’s savvy, consumer-friend-
ly marketing techniques, such as the “Fiesta
Movement,” are proof points of the importance of
engaging audiences in experiences rather than simply telling them
to go out and buy something. Consumers want to interact and enjoy their products through rich narratives and experiences that complement and make their lives better.
John Lusk’s compelling story, “Never Underestimate the
Power of Word of Mouth” (WOM), as seen in the spring 2013
issue of CCN, showcases how several industries are using WOM to market their products to consumers. The story highlights the
several platforms including:
• More than 50,000 pieces of original content • Nearly 6.5 million YouTube views of films
• More than 750,000 views of Flickr photos
• More than 40 million impressions on Twitter • More than 300 million media impressions
Ford plans to exceed its previous Fiesta campaign next year
with the Fiesta Movement: A Social Remix. This will be the first
The socially savvy 2009 Fiesta Movement campaign is a great
ed. Everything people see, hear and read about the new 2014 Ford
example of what Lusk wrote about in his article. Social Media Week* in 2009 kicked off the Fiesta Movement campaign, which
was designed to help launch the 2011 Ford Fiesta in the United
Winter 2014
States in less than one year. This included successful outreach on
importance of growing and adapting to extend a company’s reach to new and potential audiences in a non-traditional way.
States. This campaign created interaction between the vehicle and its target customer. It allowed them to use their intelligence
and creativity through social engagement to change the way they saw the car.
16
Without spending money on incremental media, the Fiesta
Movement successfully established the nameplate in the United
time Ford has ever used a campaign that is entirely user-generat-
Fiesta will come straight from the people who are using the new car. They will be recording, posting and sharing their Fiesta sto-
ries from beginning to end — their experiences are the campaign. There will be no official corporate launch of the vehicle.
The recorded experiences from the Agents could be used for
a print ad in a popular magazine. They could also be used for a 30-second spot during a popular TV show. They might even be
Customer Care News
used as a video introduction as people walk into a music festival. It
especially for purchases that are likely to carry a large price tag.
Platforms like American Idol, the Bonnaroo Music and Arts
mendations or testimonials, or they will turn to social media to
will span paid, owned, earned and experimental media.
Festival, and all the summer X Games will be used in Mission
videos for the Fiesta Movement program. Their stars will act as
The average consumer will turn to family and friends for recomview the opinions of a larger mass of people.
The choices a consumer has to sift through are enormous.
advocates for the Ford Fiesta, helping to extend the reach and
WOM is very effective in helping a consumer make a purchase.
reach people — especially millennials, who are more connected
ask yourself: was it due to a personal testimony or brand messag-
build a holistic story for consumers. It’s a completely new way to and interested in sharing their stories than any previous genera-
tion. And the Ford Fiesta attracts more millennials than any other
So the next time you’re contemplating a new purchase, stop and ing? CCN
Ford vehicle, demonstrating the importance of telling its story in
* Social Media Week is a leading media platform and worldwide
The Fiesta Movement: A Social Remix incorporates the
including Europe, North America, South America, Africa and
a completely new way.
2014 Ford Fiesta’s best features from miles per gallon to personality to performance and connectivity. The vehicle’s qualities are
brought to life through influencers, their friends and their followers. In addition, the engagement piece from Ford offers potential
consumers and enthusiasts alike the opportunity to engage in
event with local presence and global reach across five continents, Asia. The mission is to capture, curate and share the most meaningful ideas, trends and best practices with regard to technology and social media’s impact on business, society and culture. For more information, visit www.socialmediaweek.org.
human conversations with the brand. This allows them to build
Van Nguyen is a socially engaged explorer who has a passion
for the nameplate.
service and engagement and has consulted Fortune 100 com-
rapport with the Agents who are serving as brand ambassadors
As with many marketing campaigns, return on investment
(ROI) is used to sell products. Calculating ROI becomes difficult concrete results.
Where do consumers seeking products or services normally
go first? Do they turn to a television or radio ad? Do they visit each brand’s website? The answer is most likely none of those —
www.customercarenews.com
panies on their customer service programs. She is currently the account director at Ogilvy & Mather Public Relations
and can be reached at 313-615-2856 or @SocialMeSavvy.
Winter 2014
as factors such as WOM and social marketing media do not give
for social networks and strategy. She specializes in customer
To learn more about the participants in the Fiesta Movement, and the adventures they have embarked on, please visit www. FiestaMovement.com.
17
Maximizing Quality of Experience
M
obile Network Operators (MNOs) are
based on a set of underlying systems and network elements
efforts into building their image as Customer
New processes have to monitor QoE, either based on individual
increasingly focusing their investments and
Experience-oriented companies. In this context, Arthur D. Little recommends taking a more integrated approach to Customer Experience Management (CEM). By involving the entire organization in the CEM strategy and processes, it is
possible to better manage all interactions along the customer journey.
From performance measurement to Customer Experience Management
The CEM approach requires shifting the focus of service
working correctly, but also based on customers’ perceptions. customers or broader customer segments, addressing invest-
ments accordingly and more effectively with final impacts on churn reduction.
To provide superior CEM, mobile operators need to con-
trol all interaction channels along the customer journey. In our CEM-oriented model, we focus on two key moments: service delivery (managed by ICT, Network and Technical Handsets Departments) and post-selling and claim management (managed by the Customer Care Department).
performance measurements from traditional network operations
Improving the flow of internal communication
The priority is to measure and control the entire end-to-end
companies will need to move from a classical “stand-alone”
means that the performance of a service is not only measured
customer according to their own needs in an independent man-
to customer service perception or Quality of Experience (QoE). experience that a customer has when using a service. That
When integrating CEM throughout their organization,
approach, in which the various departments interact with the
Figure 1. An ‘open door’ approach is essential to maximize QoE “Stand alone” approach “Are we sure that our Technical Investments are really addressing the customers’ expectations?”
“Technical information is not easy to use as agents have no skills to manage it correctly.”
“Call availability is the ‘king’ indicator to run the Network.”
“Open Doors” approach How good is the service? How easy can I get it?
TOUCH POINTS
Marketing Marketing
Sales
Customer Care
Winter 2014
Service Customer Delivery Care
TOUCH POINTS
Am I correctly charged?
Sales
Customer Care
CTO
CTO
Operations Customer Activitation
How well do they help me?
Service Delivery Billing
Customer Activation
Business Operations
Customer Support
Billing
Align Operations Service Delivery with Customers’ Service Expectations
Source: Arthur D. Little 18
Information flows Customer Care News
ner, to an “open-door” approach in which all the company’s units operate as a single entity in terms of the client’s perception.
Improved two-way communication flows among each
department and the others ensure both consistent QoE throughout all customer touch points and direct feedback to the technical department about customers’ perceptions of service performance in order to prioritize technical initiatives.
Technical Operations and Customer Experience Management
There are two main CEM levers that chief technology
officers (CTOs) and chief information officers (CIOs) should utilize:
Lever 1: Shift the focus to E2E Service Performance and Customer Experience
Technical Departments should introduce new processes
and tools to monitor an additional set of values that are known as Key Quality Indicators (KQIs). In this way, the technical
processes for network, IT and handsets are matched against the end-to-end customer
service experience in
order to measure their
specific impact on customer satisfaction.
Lever 2: Put effort into
predicting
Customer Experience
The second CEM
lever requires the com-
Customer Care and Customer Experience Management
tive model, in which
that MNOs should employ to improve their customer care
only track custom-
customers:
traditional
reac-
Technical Operations ers’ complaints and
the company’s subse-
Arthur D. Little has identified a specific set of drivers
and enhance the Customer Experience offered to their • Accessibility and ease of use — this must be true throughout all customer touchpoints
quent response, to a
• Response effectiveness — it requires enhanced quality of
the predictive model,
• Operations efficiency — providing prompt responses to a
predictive
one.
In
Technical Operations merge
business,
data
from
technical
the information and multi-channel consistency
client’s issue and/or request is proving to be a differential for client retention. CCN
Vincenzo Basile is a Principal and Daniele Spera is a Manager
predict
of the TIME (Telecommunications, Information Technology,
order
to
customer
expectations and habits
www.customercarenews.com
and
effectively
Winter 2014
and even social media in
Daniele Spera
satisfaction.
pany to move from a Vincenzo Basile
address investments to improve Customer Experience and
in the Rome office of Arthur D. Little. They are both members
Media and Electronics) practice. For further information about this topic, please visit www.adl.com/improving_cex.
19
Five Steps to Applying “Big Data” To Your Customer Communications and Marketing
“
Big Data” has evolved from being an exciting new concept to an essential tool when it comes to reaching
consumers and delivering a good customer experi-
so does the data. So where should marketing and CRM teams begin?
ence. For companies that are serious about their customer
1) Determine your objectives
evolution of Internet analytics, the proliferation of mobile
manager should start is to ask themselves what it is the company
unprecedented availability of data that can be put to good use —
in revenue, and for many it will be a good customer experience.
communications and marketing, Big Data is no fad. The devices and developments in data capture have led to an meaning there is an information trail on everything from your current location to your daily shopping habits to the efficiency of your car engine.
Across all sectors — and departments within individual
businesses — Big Data is helping to enhance capabilities as well
as increase profits, and dealings with customers are no exception.
In terms of front-line, customer-facing parts of most businesses, marketing and customer relationship management (CRM) are
The first place any marketing or customer relationship
wishes to really achieve. For most, the answer will be an increase By linking a company’s database to the overall marketing and
CRM strategy both of these jobs are made a lot easier. There
are three key areas that need to be looked at in order to do this: • Increasing customer spending
• Increasing the frequency of customer visits • Reducing the number of lost customers
These are the three key ways to ensure a business increases
among the first to have originally embraced data — before it
profitability, stripped back to the bare essential. Keeping these in
is a danger of losing sight of what is important and drowning in
is not forgotten and the path to achieving it is not strayed from.
was “Big” — and are already reaping the rewards. However, there all the information available.
With the surge of newer streams of web, mobile and social
data, one of the areas of concern with Big Data is simply the vast amount of information it offers on customers. The huge growth
in digital during the past few years has also meant that the lines between marketing, CRM and service all seem to blur in a way
It allows companies to employ the information they need to
drive their business goals rather than letting their organization’s
strategy grow out of whatever data is available. Employing Big Data effectively requires a clear and agreed data management
policy and having the infrastructure and service providers in
place to make sure that your organization has information that can be analyzed effectively.
Winter 2014
that can be overwhelming. The possibilities seem limitless, but
mind throughout the marketing process means that the end goal
20
Customer Care News
2) Consider what data is essential
permission — and using it judiciously for appropriate and useful
in particular. Of course all information on customers can seem
heart of the successful database marketing relationship.
This can prove tricky to a lot of departments, marketing
valuable, especially if it has proven tricky to capture. However,
offers and rewards. There is always an exchange of value at the
one of the biggest issues with Big Data is there is often too
5) Put an SCV database at the heart of your activity
tent, accurate and up to date. It is safe to say that any data that
capture, can keep accurate and updated, and can link to a cus-
a hindrance than a help. What’s more, it has to ultimately help
capabilities of a single customer
much useless information. Data needs to be complete, consis-
does not fall into these categories may turn out to be more of you meet your objectives. When deciding whether data is essential or not, ask these questions:
• Is it in a functional condition?
• Does it further your relationship with the customer? • Can you link to a known customer?
• Will employing this data boost profits? If the answer is no for even one of these questions, you
need to decide whether it is really needed. Useless, inaccurate or outdated information can make tapping into Big Data a waste
of time. This is particularly important where marketing com-
Once you have identified the Big Data you need, can
tomer, you need to ensure you are able to do this within the view (SCV), which brings all
the data held by various parts of the business together in one
place. The information from the
SCV can be analyzed to provide insight that enables you to reward and influence customer
buying habits that encourage increased spending, increased
frequency and reduced attrition. The SCV is the core of Big
munications and other elements of CRM are concerned.
Data for marketing and CRM.
3) Find the best way of capturing the essential data
fuel for insight-based actions if
A properly planned and resourced CRM or loyalty program
can be an invaluable tool when it comes to capturing consumer
data and employing it to communicate effectively with customers. Not only do these types of programs enable companies to
track customer behavior — what, when and where customers are
buying — but they also act as great incentives for customers to keep their personal details up to date (in order to make sure they are receiving their rewards and special offers). 4) Secure data permissions and trust
Even companies with established CRM and loyalty pro-
grams need to bear in mind that the Data Protection Act allows
Big Data will only work as the
the data is not held in silos such as mail, store, web, mobile and email, but joined up in a con-
sumer-centric database. And it is
Andy Wood
critical to remember that Big Data needs to not just be about digital data. That’s the point of an SCV — it pulls through store transactions, mail responses, logged calls, application forms and
other organizable customer interactions to create an actionable set of information on the customer. Never lose sight of your objectives
In order for strategies and processes built around Big Data
companies to hold opt-in data for customer communication
to run smoothly, effective data management needs to be in place.
option to opt out. When seeking new information, companies
objectives. It is all too easy to get lost in the vast amount of
purposes but also requires them to offer these consumers the must also make sure all of this is done within the rules of per-
mission. Customers will usually agree to allow their data to be
used when they will receive targeted offers and rewards, but in asking for any additional details, it is worth considering whether
you really do need the data and are going to use it — and if so, Ultimately, any and all customer data has to be used respon-
information, but as long as marketers focus on what really matters — profitability and the customer experience — a CRM or
loyalty program will allow you to gain trust from your customers
by rewarding their purchasing behavior with offers and promotions relevant to them. This in turn will deliver incremental revenues for your business. CCN
sibly and effectively, or your business will lose customer trust.
Andy Wood is the Managing Director for GI Insight. For a more
of their data — keeping it secure and not sharing it without
www.gi-solutionsgroup.com/gi-insight-knowledge-centre/guides.
Customers must have confidence that a company is taking care
www.customercarenews.com
Winter 2014
how.
When keeping track, it is also critical to keep sight of overall
detailed marketers’ guide to Big Data, contact GI Insight at
21
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
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
new information. For example, adding the dollar values
Winter 2014
to an agent. Channel: An avenue through which products and services are rendered to end-use customers. Car dealers, retailers, computer resellers, grocery wholesalers are all examples of channel members.
22
Customer Care News
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
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.
www.customercarenews.com
23
Winter 2014
businesses and organizations perform a social good or
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.
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.
G
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
variety of businesses and services based on location. Globalization: The trend in which businesses cross international boundaries.
H Winter 2014
I
M
L
approach with sharing bite-size media. Probably a more apt term for this activity is “microsharing.”
Legacy System: An older or outdated computer sys-
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.
systems are frequently large, monolithic and difficult to modify, and scrapping a legacy system often requires reengineering a firm’s business processes as well.
24
Customer Care News
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.
N
P
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.)
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, 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.
www.customercarenews.com
25
Winter 2014
O
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
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
improving the visibility of a website or a web page in a
Winter 2014
Media
Z
Zero Latency: A computer term describing an infor-
don’t coincide. Only in Collaborative relationships do the true interests of the customer and enterprise match.
26
Glossary of terms provided by SOCAP International.
Customer Care News
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