miercuri, 25 martie 2015

Seth's Blog : What is customer service for?

What is customer service for?

Customer service is difficult, expensive and unpredictable. But it's a mistake to assume that any particular example is automatically either good or bad. A company might spend almost nothing on customer service but still succeed in reaching its goals.

Customer service succeeds when it accomplishes what the organization sets out to accomplish. Google doesn't have a phone number, doesn't want to engage with most users. McDonald's doesn't give you a linen napkin. Fedex used to answer the phone on one ring, now it takes 81 seconds for them to answer a call. None of these things are necessarily bad, they're merely examples of alignment (or non-alignment).

Organizations don't accidentally run ads, don't mistakenly double (or halve) the amount of cereal they put in the box. They shouldn't deliver customer service that doesn't match their goals either.

Here are some uses of customer service:

To create a significant competitive advantage by engaging with customers in a way that others can't or won't. This is what the over-the-top customer service approach of Zappos did. They went from being a commonplace (you can buy shoes from anyone, we're anyone) to a customer delight company that happens to sell shoes. Rackspace does the same thing with technical support. 

To streamline the delivery of inexpensive goods produced in an industrial way: This is the model of most fast food places. Deal with the exceptions quickly and well, and keep the line moving. Part of this mindset is to not make it easy for people to complain, and to treat every complaint in just about the same way. When you get a bag of rancid nuts from Planters, sure, you can visit the website, click a bunch of times, fill in a form and let them know, but they don't use it as an opportunity to earn your loyalty.  "Here, take four coupons, each good for a dollar off one purchase, thanks, we're done."

To lower expectations and satisfy customers by giving them exactly what you promised, which is not much: This is the model of automated customer service at most big web companies. They'll do just about anything to avoid an interaction with a human, and they're clear about this, meaning that they should only end up with customers who are okay with this.

To raise expectations and delight customers by giving them way more than they hoped for, which was a lot: This is a truly difficult promise to maintain (Apple did it with the Genius bar, but they rarely surprise there any more). The secret is to find a focus, a budget and a scale where you can actually deploy talented individuals to keep this promise.

To dance with customers in an act of co-creation: This is part of 37Signals' secret. From their book to their blog to their clearly stated point of view about platforms and the way they do business, they invite customers to debug with them in an ongoing dialogue about finding a platonic ideal of utility software. They don't promise perfect, they promise engagement. Over-inform. Speak with respect. Be clear about the invitation. This is a very special sort of customer service, and companies often think they're doing this but end up cutting corners and are merely plodding along, disappointing those that would have preferred to engage instead.

To diminish negative word of mouth: Many large organizations resort to this, the last step in a sad journey. As soon as a wheel gets squeaky, they grease it. But that's all they do unless pressed. The problem is that many of your unhappy customers are too busy to get squeaky, they merely go elsewhere, and the ones who you finally do try to help are so pissed off it's too late.

To build extraordinary trust: This is the initiative taken by an institution to do far more than is expected, at a human level, to earn the privilege of serving again. This is the banker who visits you in the hospital, merely because she heard from another customer that you were ill.

To treat different people differently: One way to reward your best customers is to treat the best of them substantially better than others--the word will spread, others will want to join this group, and those in it will be hesitant to switch to a competitor. But if you make that promise, you need to double down on it substantially, continually improving how you treat your favorites.

To race with competitors to lower customer service costs just a bit more than they will: This is the current progression we see among industrial titans who see customer service as a cost, not a profit center. When you measure this, you can't help to want to drive the cost down, and you will do it just a bit faster than your competitors, because to do it too fast is to risk condemnation. Alas, in just about every industry that the internet has sucked the profits out of, we see this cost-cutting race to the bottom. It's not going to end well.

Because you can: This is awfully rare among public companies, but there are many organizations that treat people as they'd like to be treated. Not to grow market share, but because it's the right thing to do.

So it's clear that good customers with urgent problems left on hold by Fedex is a mismatch between what they built customer service for and what they're doing with it. And that a busy startup that doesn't invest as much time as they could in co-creation communication is not serving the goals of the beta fully. On the other hand, the novelist who doesn't invest time in answering reader mail is probably doing good customer service, since reserving her best efforts to write another great novel is precisely the promise she has made.

Every single person who makes budget decisions, staffing decisions and customer service decisions must to be clear about which strategy you picked, needs to be able to state, "we're doing this because it's congruent with what we say customer service is for."

Obviously, you can mix and match among these options, and find new ones. What we must not do, though, is plan to do one thing but then try to save time or money and do something else, hoping for the results that come from the original plan without actually doing it.

Customer service, like everything an effective organization does, changes people. Announce the change you seek, then invest appropriately, in a system that is likely to actually produce the outcomes you just said you wanted.

Make promises and keep them.

       

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marți, 24 martie 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Screws Tighten: ECB Forbids Greek Banks From Buying More Debt; ECB Exposure to Greece Tops €100 Billion; Greece Out of Cash by April 20

Posted: 24 Mar 2015 12:27 PM PDT

ECB Denies it is Blackmailing Greece

Yesterday, Mario Draghi Hit Back at QE Hawks and denied the ECB was blackmailing Greece.
Critics of QE, such as Bundesbank president Jens Weidmann and the head of the Dutch central bank, Klaas Knot, argue the policy, which helps lower the cost of borrowing for member states, will allow countries such as France and Italy to shirk unpopular reforms.

The ECB president told lawmakers it was "very dubious" that a fall in the cost of borrowing for member states automatically weakened the appetite for structural reforms. He said: "Do you really think a high level of interest rates would form an incentive for a government to improve its education system, or judiciary, or electoral system?"

Mr Draghi denied accusations that the ECB was blackmailing Greece. "The ECB has €104bn of exposure to Greece. This is equal to 65 per cent of Greek GDP, which is the highest exposure in the eurozone," he said. "So what sort of blackmail is this?"

The denial follows the leaking of a letter from Greek prime minister Alexis Tsipras to German chancellor Angela Merkel. In the letter, Mr Tsipras called for the ECB to reintroduce a waiver that would allow Greek banks to use their sovereign's debt as collateral to secure cheap loans from the central bank's regular auctions.
Screws Tighten

Today, the Wall Street Journal reports ECB Tells Greek Banks Not to Boost Exposure to Athens Government's Debt.
The European Central Bank has instructed Greece's biggest banks to refrain from increasing their exposure to Greek government debt, according to people familiar with the matter.

The move raises pressure on the cash-strapped government in Athens to find an agreement with its international creditors to unlock billions of euros in bailout funds.

The new restriction from the ECB's bank supervisors, which was approved by the central bank's governing council, was conveyed to the Greek banks in a letter on Tuesday.

It is in line with recent policies undertaken by the ECB to restrict the amount of funding the Greek government can obtain by selling Treasury bills.

Last month, the ECB suspended an exemption that had allowed Greek banks to post junk-rated government bonds as collateral for cheap ECB loans through its regular lending operations. That forced Greek banks to rely on an emergency lending program through the Greek central bank that carries a higher interest rate.
Greece Out of Cash by April 20

Reuters reports Greece Out of Cash by April 20.
Greece will run out of money by April 20 unless it receives fresh aid from creditors, a source familiar with the familiar with the matter told Reuters on Tuesday.

Athens is scrambling to send a list of planned reforms to its European lenders in the coming days in the hope of unlocking fresh aid and averting bankruptcy.

It has lately relied on repo transactions - where it borrows money from state entities - to cover its cash crunch, but can continue to rely on that only for a few more weeks, the source said.

"Although it will be hard, the country can make it without help until about April 20, using the short-term borrowing from public entities," the source said.
Greece Still Needs Third Bailout, Another €54 Billion

Bear in mind that Greece still needs to negotiate a third bailout. See Third Greek Bailout? Another €53.8 Billion Needed? Primary Account Surplus Revisited.

Thus, even if Greece gets over this hump, negotiations start all over again in June because Greece will be unable to pay back ECB bonds that mature this summer.

How much more can Greece take?

Whom is To Blame?

In case you missed it, please read my March 10 article From ZIRP to NIRP: Virtues of Germany vs. the Vices of Greece; What About "Speece" and Gold?

The article contains a discussion of whom is to blame, a rebuttal of the widely held belief that the euro acts like a gold standard, and the role of attitudes in this mess.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

CPI Ticks Up, Led by Rise in Energy; CPI Still Negative Year-Over-Year

Posted: 24 Mar 2015 11:10 AM PDT

Following three months of declines (primarily due to falling energy prices), today the BLS Consumer Price Index for February shows that month-over-month, the CPI is back in positive territory.

CPI and Weightings



click on any chart for sharper image

From October to November the CPI declined -.3 percent, so this rise follows three straight month-over-month declines.

Year-Over-Year Seasonally Adjusted Percent Change



Year-Over-Year the CPI is negative for the second month. From December to January the year-over-year CPI was -0.45%. Today, it's a barely negative 0.17%.

Year-Over-Year Components



Of course, your prices will vary greatly. Take for example medical care. Did your costs only go up by 1.8%? Your food basket by 3%?

The above tables are partial. The BLS has many more categories in the link at the top.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Damn Cool Pics

Damn Cool Pics


Parents Climb Up A Wall To Help Their Kids Cheat At School In India

Posted: 24 Mar 2015 12:09 PM PDT

In the eastern state of Bihar relatives of 10th-grade students recently climbed the wall of a school building in order to help their kids cheat. Police officers just stood by helplessly with no idea how to handle the situation.












35 Selfies Taken In Extreme Environments

Posted: 24 Mar 2015 11:36 AM PDT

If you thought your selfie was cool you better think again. These people know how to take selfies to the extreme.






















A Cool Collection Of Street Art Masterpieces

Posted: 24 Mar 2015 11:24 AM PDT

They may not be conventional, but street artists can create a masterpiece with the right environment. This is some of the most impressive street art from all over the world and it rivals anything you would see in a museum.






















Unforgettable 90s Movie Quotes

Posted: 24 Mar 2015 11:08 AM PDT

We still remember these 90s movie quotes.