Archive for the ‘Customer Service’ Category
Treat your customers well, your repeat customers better
An example of really bad customer service…
I had to purchase some hard drives for a server few months ago. Due to the nature of the setup, I needed to get the exact same drive models that were currently being used in the server. I went to one of the companies that I routinely purchase products from and placed my order for 2 hard drives. The next day I received an email from the company stating that they could not ship my order because my Paypal address was unconfirmed. Having moved 1 suite down the hall (about 75 feet) in our office building I explained to them that we were in the next office down, and that I didn’t want the drives to get delivered to the previous suite…
Well, it didn’t matter that we have bought thousands of dollars in server and computer hardware in the past few years, or that the address was 1 suite number down the hall, or that I actually called them. They would only ship to a confirmed address which lost them my order and possibly my future business.
This cost them $10, and they probably lose 20 more orders from me over the next 5 years.
An example of really good customer service.
I own a number of fish tanks, and I purchased some supplies including a very low cost automatic timer from a well know online pet supply retailer around the same time as the hard drives. The timer didn’t work properly, and in the midst of a busy schedule, 9 birthdays, 2 business trips, and 2 vacations I forgot to contact them about getting it replaced. Finally getting around to it, I read their return policy and it understandably said I needed to return the dysfunctional equipment to them. Since the shipping would cost about the same as re-purchasing the item, I gave them a call and asked if I really needed to send it back… Ah, I found out that I was past the refund point by a month and a half…
Even so, they decided to replace it for free and they didn’t require me to send back the broken one. This is what I call above and beyond customer service, and it’s guaranteed that next time I need something for one of my aquariums, they’re the first place I’ll stop.
This cost them $10, and they probably get 20 more orders from me over the next 5 years.
These are polar examples of a very important concept… Your existing customers are not and should not be treated like a your new ones!
It’s a well accepted principal in marketing and business in general, that your existing customer is easier and cheaper to sell to than a new customer. Additionally for ecommerce, selling to your existing customer poses a significantly lesser security and fraud risk than any new customer, especially in a case like this where the customer has placed several orders over several years.
If you want to create a remarkable online business, create the best experience for new customers, and make it even better, easier, and more efficient, for repeat customers.
There’s no reason to assume all customers should be treated the same. The majority of shoppers only place one or two orders with a website (Unless we’re talking about someone like Amazon). For this reason, you should make it as easy as possible for repeat customers to order from you, and you should give first time shoppers reasons to come back. It’s significantly cheaper to entice an existing customer to make another purchase than to go out and find a new customer.
If you think you’re significant enough that most of you shoppers wont go somewhere else if the price or service is much better, think again.
The real reality check…
Sure my business is insignificant in the long run. Ewiz may have only made a few hundred dollars in profit from me over the past few years. However, assuming that this blog gains no popularity or traffic over the next year, somewhere around 150,000 people will have the opportunity to read this article on my insignificant little ecommerce blog. 150,000 people will know that Drsfostersmith has outstanding customer service and ewiz’s customer service absolutely sucks. That’s 150,000 people, possibly current customers that could decide to shop somewhere else, or in Drsfostersmith’s case, 150,000 people that could decide to make their first purchase…
5 Steps to a A Proper Contact Form!
I’m not sure if there is an authoritative guide on a website’s contact form, so here’s my take on the picture.
A contact form is a seemingly simple feature, that most websites mess up. While a broken or poorly designed contact form may not be the end-all problem with a website, there’s no reason that it shouldn’t work correctly.
What a contact for must contain:
- Name, email, (optional: phone), and message fields
- Shouldn’t Contain… A ridiculous captcha verification script
- Confirmation / feedback that the form was properly submitted
- An email response that the form was successfully received
- Finally… A response from someone that read the form (If necessary)
What not to do when times get tough
When you look at businesses that are struggling, you generally see two reaction in attempt to get out of the slump.
The first reaction which generally is seen when a company declares bankruptcy or just before, is the add more fees without adding any value solution. Airlines are currently guilty of this, as most are adding fees everywhere without adding any additional value to their customers. I recently took a trip and was charged for curbside check-in, for checking a single bag, and for a soda while on the flight. The flight attendants and check-in receptionists were rude, no doubt because they have to deal with a bunch of angry customers. Southwest Airlines’ marketing team was just handed the golden platter of advertising opportunity, because people are angry at airlines for all the fees, and Southwest doesn’t have all the extra fees.
The second reaction which is actually consumer focused, is to change your business so it is more appealing adding value, in an effort to drive more business. Quiznos is a perfect example of this with their new pricing. I’m not sure if the end-user gets anything more from Quiznos, but the price / value point is far easier to understand which makes their restaurant more appealing.
Times are tough for a lot of retail businesses, and I can guarantee that simply raising prices will not create a more profitable or stable business unless you know for certain that your customers will happily pay the extra price.
Do not simply do these when times get tough:
- Add fees without adding some value with those fees (The airline raise).
- Grossly increase prices to accommodate for lost revenue.
- Unilaterally change contract terms (Think AT&T and Verizon).
Be careful doing these:
- Placing customers in opt-out programs.
- Cutting the variety of the products you offer.
- Dramatically changes or adding confusing policies and / or pricing structures.
Unfortunately there’s no magic recipe to making it through tough financial times, but these are some good ideas to help keep customers coming back to your business.
Here’s my recommendations to do before you ever get into real trouble:
- Make your price / value point more appealing (like Quiznos above). Be extremely cautious with this one because it can easily backfire if your customers think your smoke and mirrors are just an effort to pad your revenue.
- Offer rewards or incentives for frequent customers.
- Retail & Restaurants. Offer incentives to customer who bring their own cups or shopping bags. Ideas like this can help reduce overhead costs, and produce less waste. It’s win-win for everyone.
- Offer incentives to customers that refer their associates and friends to your business. If you’re not doing this already you’re doing something wrong.
- Diversify your marketing efforts. Don’t just use the Yellow Pages or radio ads. Puts your eggs in more baskets as long as they all provide business. You can try local PPC marketing, sponsoring events, newspaper ads, and more.
- Optimize your business. This is a great time to see if you can save money on the services that your business already uses. Internet, phone services, your merchant account, shipping costs and methods, are all great places to start. Find services that you don’t really need and cut those first.
- If you need to purchase new IT equipment look into low power consuming equipment. Low power servers, computers, and network hardware can save thousands per year in energy costs.
- Reduce staff. This is truly one of the hardest and most unpleasant aspects of owning a business, but realistically, if it’s going to potentially save your company then you should consider it. My personal opinion is that this is an absolute last resort, unless you have employees that you were planning on releasing anyway, but it is sometimes necessary.
Every dollar you can save will really help later when you’re completely cash strapped. Start doing these before you are looking an an insurmountable situation that will ultimately end with the end of your business.
Let me know if you have suggestions or experiences of your own.
Customer Service and Response Time for Websites
How many times have you emailed a website that you were planning on making a purchase from but didn’t receive a timely response?
Occasionally, about half, most of the time, every time…
The record that I have seen in a poor response time, is 92 days, set by an industrial printer company when I was inquiring about selling a large Xerox printer. I had completely forgot about and gave up on the whole situation two months before they contacted me. This is the absolute worst I have ever seen, but it doesn’t take 90 days to be a poor response time.
How fast should a customer receive a reply?
A business should respond to a customer as fast as humanly possible. I personally am online about 12 hours per day, and my own rule is no more than 5 minutes from when I receive the message. My Microsoft outlook receives new messages at least every 5 minutes, so it should take me no more than 10 minutes to send a response from when it is sent to me. The people that work in the sales and support for my company have a 1 hour limit, during business hours, but the 5 minute rule is always stressed.
Even 30 minutes would be a great improvement over the 24 hour standard that many businesses carry.
To be perfectly honest, my company would have been out of business years ago if we waited 24 hours to respond to an inquiry.
There are situation where you don’t have the answer to a question immediately and need to correspond with someone else to get the information you need. In cases like this, you can follow up on someone’s email, and let them know you are going to get back to them shortly. The point is that you contact your customer immediately with or without the information that they are looking for.
If your current response time is more than a few hours, you can be pretty sure that you are loosing business because of it. Your visitors can find whatever you sell, most likely at the same or better price somewhere else, in just a few minutes.
Don’t loose customers because you don’t respond soon enough. The only thing worse than a bad response is no reponse at all.