Customer Service has been forgotten?

I agree. It's not about responding immediately. It's about setting reasonable expectations.

During my early launches (well the ones that were more successful anyway) I absolutely burnt myself out trying to reply to every single support query as fast as possible.

Now my help desk has fantastic ladies working in it and everyone who emails in gets an autoresponse to let them know that we deal with all queries within 1 working day but that we're not open on weekends.

At first I thought customers would go nuts, since I'm so used to the instant web experience.

But it turned out no one minded at all. What annoys people is not knowing what's going on.

Very true. I do this myself. Whenever someone orders banners from me and I just can't get to them that day, I always send them an email acknowledgment confirming that I got their payment and their specs and then I tell them when I will start working on them.

Just leaving them in the dark is unacceptable to me!

I was just discussing this with someone the other day, who had the reasonably common complaint about how companies treat new companies better than existing ones.

In my opinion, it is the overwhelming quantity of consumer choice.

Let's say you leave your car insurance company for another one. There are hundreds of them. You could spend a week evaluating insurance companies, and not get anywhere of note. You might never find a company that has a better rate. If you do find such a company, you've no guarantee they won't crank your rate up just as high in a year.

And this uncertainty, coupled with the days of work it takes to find the new company, combines to make it far more rational if you just stay where you are.

Switching from company A to company B is not free. It takes time, energy, effort, and persistence. And in modern society, most of us don't have much of those. So you don't have to work very hard to get your existing customers to stay. All you have to do is not be too bad.

Meanwhile, switching companies is such a headache, new customers take more and more effort to acquire. And that effort has to come from somewhere... so they take it away from customer service and support.

This is a valid strategy. There is nothing really wrong with this strategy. But it depends on two things.

1. How fast you recoup the cost of customer acquisition.

It is complete lunacy to drop a customer before you have recouped that customer's acquisition costs. If it costs you $150 in work and advertising to get a customer, you had damn well better keep that customer until you've made at least $150. And if you expect to be profitable without retention, you'd better make a damn sight more than that.

2. How likely you are to reacquire a lost customer.

This is mostly an issue for smaller companies. If you're not one of the top three or five companies in your industry, your chance of getting the customer you just lost back is next to nothing... because there are so many companies just like you from which to choose.

But at the top, things are different. In the U.S. car insurance game, Geico, Allstate, State Farm, and Travelers are pretty much top of the list for everyone. Chances are good that if you leave one of them, you're going to one of the others - and once you've cycled through all of them, you'll probably go back to one of them.

But let's look at the opposite situation. Vern Fonk is an insurance company in Western Washington state, which holds itself out as the place to get car insurance no matter what your record. They are currently the only insurance company which does not burst into uncontrolled laughter when I inquire about car insurance. ("Hey, everybody! This guy just asked for a quote... and look at his driving record!")

Nobody ever really says "screw Geico, I'm going to Vern Fonk." If you are insured at Vern Fonk, it's not because you chose them. It's because you have no choice.

But Vern Fonk also understands that your desperation only keeps you there for seven years. So their customer service and support is amazing, because they know you have a world of alternatives just around the corner.

Every year, some of your record drops off, and you open up a few more doors. Seven years down the road, you can go to the big four and get a reasonable quote. So each year, Vern Fonk is aggressive and proactive about re-evaluating your record and lowering your premiums.

Vern Fonk's main marketing campaign is digital video of insurance adjustor Rob Thielke's improv comedy troupe during rehearsal. They're hysterical, but Rob has a day job and mostly does the campaigns for fun. Translation: Vern Fonk spends next to nothing acquiring customers. So their customer service budget is almost completely allocated to retention.

Both strategies have their place. So it's worth asking which strategy best fits your business.

I think I have to disagree with you here; from a customer's point of view, I make a point of repeatedly giving my business to the people that earn it.

For example, I stumbled across an Internet Marketer's ebook, and appreciated it and the customer service that came with it so much that I've since then bought almost everything she's written, plus signed up for several of her lists, and follow her blog daily. She she provides value and customer service like no other, and that makes me a happy camper and keeps me coming back for more.

There are other products or services I've come across that were good, but their customer service or follow-up was mediocre at best. I believe that part of what makes a product great is how the person behind it treats their customers. If you build a good reputation for treating your customers like gold, then they will come back, or recommend you to someone else.

But people can't do that if they don't remember who you are, and they won't do it at all if they don't think you're worth the effort.

Of course, I definitely have to agree that respect should always go both ways, that sometimes you have to fire a client who crosses the line, and that it's impossible to hold everyone's hand through every itty bitty detail when you have a lot of clients (unless it's part of some paid service you're offering them, in which case you have to live up to your promises).

But I truly think that it is worth the time and effort to do at least the basics of treating your customers with the utmost respect and kindness, and providing the speediest, highest-quality service that you can, whatever that means in your current situation.

I recently started to feel that the fact that I feel compelled to be fair, considerate, etc. to people is the reason I have not found a great deal of success in IM.

To me, the way many people (businesses) are succeeding in business today feels contrary to my ethical / moral belief system.

I've lived by "The customer is always right" almost all of my time in business, only to be badly taken advantage of the vast majority of the time.

Your post was dead on...

Jamie

Hi CD,

I'm not looking to disagree, but you made a big point about how much time and hassle it takes to change car insurer.

I don't know if it's the same over there as here (UK) but we have a handful of comparison sites that seem to cover the board in terms of insurance companies. You simply fill in your details (about 10 minutes max) press go, and they give you about 300 quotes all ordered in terms of price.

With the options they offer, coupled with the uncomplicated third-party type of cover I require (I only buy it because I have to, to be legal) it just takes a quick scan to check for hidden details, a few quick one-click requotes with adjusted options to check for missed bargains and then pay for the most economical quote and the job is done.

What struck me the most was how the company I was with last year (who got a good deal - I didn't claim) couldn't care less to retain me and held out for a ridiculous amount this year - and how this recurs each year.

I think that maybe there's so much skullduggery going on in the financial industry that what appears on paper to be a proven good customer, might not be so good depending on what their hidden aims are. Maybe they don't like me because I actually paid them and they would prefer someone who takes credit, defaults etc..I dunno!

Well there definitely should be. How do you want to keep subscribers to a list or keep repeating customers if you have a business like mine. It shouldn't be any different than offline.

I surely hope you are wrong! I know there are some good people in the IM world, you just have to find them! Sometimes, it is not so easy to see. It just simply sucks when the customer service is lacking! I think people put too much on their plates! Either way, it is frustrating!

Well there is a thing called ROI. Return on Investment. Your time is money and sometimes it is more profitable to ignore a customer and invest that time in picking up new customers.

Also, 80/20 rule here - 80% of your income will come from 20% of your customers. And most likely, that 20% is probably the most hassle free.

I can see plenty of reasons to not return a phone call or customer query or complaint.


Sure, you could say "well they may buy more from you!"

Ok, lets say that they could spend another 1000 bucks with me. But by ignoring them, I end up landing 10 more customers, who 2 of them go on to spend 1000 bucks more.

So lets say that those 10 + 2 lifetime customers makes me 3000 bucks.

I believe I'm 2000 bucks ahead.

See my point?


There are too many variables and too many situations for this to be a black and white issue.

Rob

You're right about this. I actually had a banner customer who was cursing at me because I didn't understand his exact instructions that were muddy at best. I ended up calling him and chewing him out for treating me so poorly.

However in the end I still made his banners for him, albeit it wasn't my best work.

Ryan Deiss talked about this not long ago, "firing customers" and I would agree, some customers you will never make happy or ever please, so just get rid of them. As for the OP, I always give specific times of when I do and do not answer emails, a thorough FAQ is good as well (plus gives some filler content to google) and versus giving a 24 response I opt for 48 due to time zones etc.

Not really. I'd much rather deal with AT&T customer service over Vonage. Or Clickbank over some random IMer.

That is true about Jim in my dealings with him. Way back, not knowing who he is I saw his website and offered a few suggestions as well as to redo it for him at zero cost. In return he gave me some killer tips about my copy and WOW did it make a difference. Later, when I discovered who he is I felt a little embarrassed.

Jim is a Great person. And I have heard the same about you.

Jeffery 100% :-)

You ought to check out those from the travel industry. Airlines, hotels, etc.

I wish I could kick google to the curb.

It seems we are talking about two forms of customer service. If your business is a providing a service as AFI does - keeping in touch with the customer is right up there in importance with delivering the work on time. It's not negotiable for good service providers.

Rob, I see that advice posted here frequently and I agree there are times when the only thing to do is to cut a customer loose. However, I think some here (if they do as they advise others to) dump any customer that is the least bit skeptical or demanding.

Two of my three best writing clients were really difficult at first. They weren't sure what they wanted but wanted me to know "they" were the boss. I didn't lose my temper - I just stood my ground. I knew more than they did about what they needed - and when I told them so and told them I had no problem answering questions and wasn't going to disappear on them....they backed off. Once we established a good working relationship - they were great and exceedingly loyal...and still are.

Customer service requirements differ depending on what you do online. You need to be responsive but professional. You can be too helpful and find yourself with a new pet that won't go away...I've had that happen, too.

The worst thing you can do in customer service is to become defensive or angry - it doesn't work as it creates a toxic atmosphere. Customer service is not the area to display ego or be a rightfighter but I've run into a few marketers who haven't read that chapter yet.

When a client insisted I write a report with (bad) changes he had made - I told him I would do it reluctantly as it would not be as good as it could be. "You are paying me a lot to do this for you - and I want you to have the best results possible...but I'll follow your instructions". About an hour later I got another email saying "sorry, do it your way".

If you have a difficult customer it doesn't have be a push/pull fight for control. Sometimes a few gentle nudges will work and the first step is to acknowledge their problem by replying to them.

kay

Hi Roger,

Funnily enough I also was having this conversation with someone the other day.

My insurance has increased, though not doubled, despite no accidents and my apparent maturing of age. I got a similar "couldn't care less response" when I called up.

I then rang back 5 minutes later and got a quote for a new insurance policy with the same car, same age, but this time I was "Alan Bignall". Yes, not doubt you've guessed the result - cheaper car insurance, not only better than my new bumped up rate but better than what I'd paid for the last year.

I then informed them I wasn't actually Mr Bignall but myself. I had a rather embarassed employee on the phone who had to get her manager. He explained to me, in no uncertain terms, that they're doing a "drive" (no irony intended) to get new customers. I explained as a loyal customer I found that rather offensive and wrong. He explained to me I shouldn't have been trying to trick his employees. I consequently told him to stick his insurance where the sun doesn't venture. He seemed happy to cancel it.

Either way, from where I'm standing and the mainstream businesses I deal with, customer service is appalling in a lot of cases. Many seem to think we owe them.

I actually really stand up and take note nowadays when I do get good customer service. The last time I believe was yesterday, when I went into a McDonalds. The lady that served me was polite, friendly and extremely decent and all I wanted was a cheeseburger!

I think providing excellent customer service is highly important, I think a lot of people will actually be rather surprised as well.

Who knows, they may even tell their friends.

Hi,

This is an interesting subject.

One thing that I think is worth taking from this discussion, that a few people have touched upon (like profitsforall above in point #1) is that in this business we have some very powerful automation in our hands, which, if used wisely can do a great job for us.

For example - autoresponders.

The beauty of them is that you can create the most awesome customer service email ONCE and send it to millions of new customers as they encounter your business. If you want to go further, you can develop a series which uses a kind of 'shock and awe' process of 'overwhelming delightfulness' that makes you stand out.

I received one of these once and still remember the company name. I just googled them to find the example and no surprise - other people were so delighted too that it's easy to locate the text in glowing, viral recommendations across the net.

The company was cd baby and here is something similar to what they sent to me after my purchase as a confirmation of order email -

In the big scheme of things, it didn't cost a lot for them to create this. They don't have to train a team of salespeople to talk like this and greet their customers face to face. They don't have to deal with their salespeople having a bad day and appearing insincere when they say it.

They write it once and it works forever.

I'm pretty sure mine was slightly different, so they're either testing, improving or rotating the email text.

We all like ethical shortcuts - they pay. Compare this email to the ones you receive from others in IM.

I think the lesson here is that you MAY have a private attitude towards your customers that isn't the most warm or forgiving. You may prefer to sell hard to them at certain times. You may have to be a little brutal in terms of not holding their hands and being a walkover and giving them way too much *time* for the money.

But with automation, and a little creativity and thought, you can keep these aspects completely hidden, create viral referrals and win raving fans with a tiny little bit of effort spent on the automated customer-facing part of your business.

Once you've seen how to do this - why would anyone not use their creativity to come up with their own, original ways of achieving the same?

Laziness, forgetfulness or not caring to be nice can be the only logical reasons.

Many marketers suggest that you should utilise every available piece of virtual real estate to sell - to the slightly ridiculous extreme of creating systems that automate the promotion of third-party products on thankyou pages or 404 error pages. If this isn't done thoughtfully, it screams of desperation and brands your business negatively.

It's one thing to be a hard-nosed, results driven, Gekko-clone marketer, but a really smart one keeps this hidden from their customers, grows their hair and stocks the garage up with surfboards.

If you are so inclined, you could use the same concept of utilising virtual real estate for 'selling' to be downright pleasant and grateful for your customers' choice and thus actually turn this pleasantry into a selling/branding opportunity that makes you stand out as the opposite of desperate - with the key being that unlike offline business that requires repetitive actions by real humans, you can do it once, automate it and get it right every time.

Another thing that can make a different in customer's impression of your customer service is simple and yet I see it ignored so often.

The approach to customer service by some sellers is "if you have a problem, email me and I will....".

Doesn't that assume there might be a problem? Could that lead the buyer to keep an eye out for a problem or to find a problem to ask about?

Much better to have autoresponders with upbeat and positive message. "I'm really excited about this {product} and I know you will be, too. Should you have any questions, send them to me at xxxx".

The two most common complaints I've noticed are "it's been days and no answer" and "they sent a canned response that didn't answer my question". There's no excuse for either of those complaints except lack of organization/management or laziness of a seller.

How you ask for customer service is also a factor. If you are aggressive or accusing, you hurt yourself as a seller may be defensive. If you ask questions unrelated to the product or don't explain the problem clearly, you can't expect a good answer.


kay