When customers jump ship, companies often are left to wonder why.
Maybe they were lured by a
better product, or a better price, or better marketing. But better service is a big
motivator, and industry experts agree that companies that seek to retain customers in a
tight economy would do well to pay attention to
customer satisfaction.
Here are some of
the most common reasons customers defect, along with suggestions for ways companies can
stem the tide.
Please Call Back
The first thing a customer must be able to do is to reach the company --
conveniently and easily. Nothing infuriates customers more than
encountering a taped message that instructs them to call back another
time. Despite the availability of effective alternatives,
this problem is still widespread.
Nidal Haddad, partner with
Deloitte Consulting,
told CRMDaily.com that
one of the basics of effective customer service is to provide
extended hours of operation.
Even if a company's contact center
closes during nonbusiness hours,
he noted, providing access to an effective interactive voice response (IVR) system
is a must.
Into the Black Hole
Customers quickly lose interest in a company that fails to keep track of them.
Take the case of a shopper who sent a rebate form to her contact lens manufacturer.
Around six weeks later, she got a check back -- with little or no explanatory
information. By that point, she had almost forgotten about the rebate, and the
marketing payoff was lost.
According to ClientLogic executive Amit Shankardass,
that customer fell into
the "black hole" of customer communications .
When there is a long lag in the processing of rebates and other loyalty incentives,
their relevancy is lost, Shankardass said. He told CRMDaily that
his company, which provides outsourced customer contact services, has developed a
process for communicating several
times with customers during rebate processing -- once to acknowledge
receipt of the form and another time to notify them that the check has
been sent. Shankardass said that this helps to connect the good will
generated by loyalty offers back to the frequent customer.
The Unknown Customer
According to Shankardass, a good way to make frequent customers irate is
to not know them when they call.
"Customers are absolutely peeved off when reps cannot see previous
transactions and identify high-value purchasers when they call," he said.
Mike Trotter of the Purdue Center for Customer-Driven Quality told
CRMDaily that his group's data shows that this happens around 60 percent
of the time.
He described the scenario this way: "I'm sitting in the
call center, [and]
your call comes in with no identifying number, no home phone number,
no account number, and I don't know who you are." Even a dedicated
customer service rep is helpless in that situation. (continued...)
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