Tag Archives: Customer service

March 30, 2015 · 11:15 am

Loyalty Isn’t Stupidity

We’ve been customers of a particular heating oil company almost since we’ve moved into this house. That was in 1985. Sure, on occasion we’ve asked around to see if we’re getting hosed on heating oil prices (not usually) and we’ve found them to be pretty reliable when there is an issue. The service techs show up quickly and are generally pleasant. Given the cost of fuel and the amount we use along with the annual inspections and tune-ups, the last 30 years of our business has probably been worth at least $100,000 to them. We won’t be renewing our contract in a couple of months. Here is why and it’s instructive for any business.

A few weeks ago we noticed some water on the basement floor near the water heater.  Our water heater is just a tank – the furnace actually heats it – so we called the oil company to come take a look.  Admittedly we told them we suspected a leaky water tank which they replaced.  The next day, water on the floor.  Repair comes back – it was a faulty circulator which they replaced.  Of course, that inexpensive part might have been the problem all along but no one actually ever checked it before pulling the tank.  New tank, new circulator and a dry floor.

That stopped after another couple of days.  More water in the same area.  We had the annual boiler inspection scheduled for three days later so we waited to see what it might be – hopefully not a furnace issue.  The inspector came and found the leak – it was a relief pipe and the leak was probably caused by an old or faulty valve.  The water tank?  The circulator?  No, they were fine.  The furnace was fine too.  Phew!

When we woke up the next day the house reeked of oil.  I thought it was just the residual smell from the burner cleaning.  The Mrs. went to look and found oil all over the floor.  Our fourth visit in a week from the fuel company to fix the problem (the cleaner had forgotten to shut something) resulted in a floor now covered in oil-absorbing kitty liter which they just called to come clean up in a few days.

In a sentence – the customer reported a problem which you misdiagnosed twice, selling them thousands of dollars of stuff they might not have needed.  You also screwed up a routine cleaning and now the customer is once again inconvenienced (the smell, having to be home for more service calls, etc).  This customer’s patience and loyalty are at an end.

That’s the lesson for all of us.  No matter how loyal a long-time customer has been, every interaction is an opportunity to win their business again.  When we take that loyalty for granted and are sloppy (a nicer word than dishonest), we make withdrawals from our loyalty bank account.  This company overdrew – we’re closing the account.  Our intention is to explain exactly why to them as we don’t renew.  Who knows – maybe I’ll just send them this link.

Lesson learned?

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February 24, 2015 · 9:27 am

Self Delusion

An article caught my eye the other day. Big headline – Consumers Actually Like Airline Fees, Analyst Contends. You can imagine my skepticism but you also know I’m a staunch advocate for keeping an open mind until we learn all the facts.  Turns out my instincts were pretty good but let’s see what you think.

Stewardess, circa 1949-50, American Overseas, ...

(Photo credit: Wikipedia)

An analyst from Wolfe Research named Hunter Keay wrote a report called Every Time a New Fee is Announced, a Fairy is Born.  In it he states the following:

Inconvenient truth: customers like fees. Maybe that sentence would be better received if we had said “customers like paying only for what they use.” Well, guess what…that’s the same thing.

He goes on to chide the airlines for not being more like Spirit Air (on whose planes you couldn’t pay me to fly) which charges relatively low base fares and then proceeds to layer on fee after fee.  Mr. Keay believes it’s a huge missed opportunity for airlines to improve their bottom lines.  As one report about this notion said

There is certainly some logic to the idea of saving consumers money on base airfares by stripping away everything but the seat you are required to sit in (though some carriers have discussed making passengers stand), but the problem with this a la carte approach is that the fees rarely match the savings.

In other words, we have yet another example of someone advising businesses to focus solely on their bottom lines rather than on their customers.  I think we’re all aware that fuel prices have dropped.  Anyone heard about an airline revoking the “fuel surcharges” they put in place when prices were sky high?  That’s because they haven’t.  Imagine how you’ll feel when you’re charged a fee to offset the costs of the pilot and flight attendants, much as a restaurant might charge a fee to help cover the costs of service.  Of course in the latter case the need to tip usually goes away.  You won’t see lower fares.

I hope some airline follows this analyst’s advice so we can see how well it works (or doesn’t).  His shining star – Spirit – is consistently rated as the worst US airline and is one of only two airlines flying in the US – Cubana being the other – with a two-star rating.  Profits over people has turned this analyst self delusional.  Customers don’t like fees.  They like excellent service at a reasonable price.  Value, in other words.

That’s my take.  Yours?

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February 18, 2015 · 12:57 pm

CX

Maybe this customer-centric thing is starting to sink in.  I’m encouraged by the results of a study put out by the eConsultancy folks in conjunction with SDL which explores how retailers are addressing customer experience, or CX for short.  From the results it seems that many retailers have figured out that price is just one factor in the purchase decision and that it is outweighed these days by how customers interact with the brand.  In fact, the report states that providing an exceptional customer experience is the single most important strategic choice that retailers can make now and in the years ahead. 89% of the retailers surveyed for this report agreed or strongly agreed to the statement “Our customer experience is our brand.”  It’s a good point for any business, retail-based or not.

Think about it.  A quick visit to a search engine can usually produce pricing comparisons but that same search engine tells you little or nothing about how the customer is treated.  If you’re researching a product, how complete and truthful are the product listings?  If there is a problem with your order or you have a question as you purchase, how helpful and responsive is the customer service?

Every business (even mine!) has customers of some sort.  Their experience with you begins with their first encounter: maybe your website, maybe some content you’ve issued, maybe the response to a form they filled out or maybe someone answering a telephone enquiry.  There is one thing I found surprising in the study which is that only 12% said “company culture” is a barrier to successful customer experience management.  If that’s true it’s incredibly encouraging and represents a big shift.  I’m not sure I believe it however.  Many companies still put way too much emphasis on pushing merchandise that provides the highest margins or which is aging over the needs and wants of the customer.

If your product has been commoditized (read that as “if your primary selling point is price”) than you are going to have a hard time competing from my perspective.  A great customer experience differentiates your brand.  I’m glad to see that way more folks are agreeing with that and investing in that differentiation.  Is that something you’re doing?

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