Customer Service Archives - Page 2 of 4

February 21, 2013

Social Interactions Affect Brand Perception

If brands want to improve their customer perception, having a well-rounded social communications practice that serves both as a marketing outlet and as a place for consumers to solve service issues will help.

In a new study, J.D. Power and Associates measured consumer experience working with companies through their social platform for both marketing (such as receiving a coupon or some other offer through a social channel) and service (such as answering questions about a product or service or solving specific problems) needs.

The study was based on the responses of more than 23,000 consumers and covered 100 brands in six industries: airlines, auto, banking, credit card, telecom and utility. The bottom line: very few companies doing both marketing and service particularly well.

“Hardly any companies are doing equally well on social marketing and social servicing,” Jacqueline Anderson, director of social media and text analytics at J.D. Power, tells Marketing Daily. The discrepancy, she says, has a negative impact on brand perception.

The study found a correlation between a company’s overall social communications and a consumer’s likelihood to purchase and overall perception of the company. Among highly satisfied consumers (those with satisfaction scores of 951 or higher on a 1,000-point scale), 87% said their online interaction with the company “positively impacted” their likelihood of purchase from that company. Meanwhile, 10% of consumers with low satisfaction scores (less than 500) said their experiences with a company’s social communications “negatively impacted” their likelihood of purchase.

According to the study, nearly a third of consumers ages 30-49 and 38% of those over 50 interact with companies via social marketing (compared with only 23% of consumers 18-29). However, 43% of the younger demographic use the channels for social media interactions, while only 18% of those over 50 do.

Understanding exactly which consumers are using social media channels to what end will go a long way in helping companies improve their overall communications, Anderson says. Companies will have to evaluate how consumers are using their social media channels and then develop a strategy to address those patterns. This may require some of them to reorganize.

“It’s kind of a failure to understand why consumers are reaching out,” Anderson says. “Many companies are still organized around servicing on one side and marketing on the other.”

Among the industries evaluated, the auto industry is the only one that performs particularly well when it comes to marketing and servicing via social media. The wireless industry scores well when it comes to social servicing interactions, while utilities perform well in social marketing.

January 24, 2013January 24, 2013

Across Channels, Retailers Push to Keep Customers Happy

The rise of the internet has meant big changes for customer service, according to a new eMarketer report, “Multichannel Customer Service: Best Practices for Building Retail Loyalty.” Consumers today have an array of digital customer service tools at their disposal, the newest of which include live chat, social networks and smartphones.

And the stakes are high for retailers trying to keep up. Consumers are quick to punish retailers that do not meet their customer expectations—and reward those that do.

Findings from a Q1 2012 study by the Temkin Group, a customer experience research and consulting firm, showed that customers are loyal to businesses that provide good customer service. Some 86% of survey respondents who reported being very satisfied with their most recent customer service interaction with a company were likely to repurchase, as opposed to only 9% who said they would likely purchase again after being very dissatisfied with their customer service experience.

et another benefit of good service is that satisfied customers become brand advocates who refer other people to the company. A 2012 American Express study found that 48% of internet users told other people “all the time” about a good customer service experience with a business. The survey also found that people were roughly as likely to share their poor customer service experiences.

But consumers have different expectations and preferences for customer service depending on where they are in the purchase journey and the types of questions they have. A 2012 global customer experience study sponsored by Capgemini found that social media was most important in the awareness stage (learning about products and promotions), while smartphones were most valuable in the delivery and after-sales care stages.

January 22, 2013

Responding to Negative Online Comments

12 basic principles for handling difficult questions, comments and statements on the social web. These apply to communications, marketing and customer service issues as much as they do HR and other activities.

Move fast. The longer you take to respond to comments, the more you risk appearing unresponsive, uncaring or, worse, secretive. According to NM Incite (pdf), users of Facebook pages expect to be responded to within 24 hours and Twitter users within 2 hours. In social media, it often pays more to be quick than 100% accurate.

Be accurate. Despite the pressure on speed, try to be as factual as possible – angry customers and bloggers love to highlight, question and poke holes in wooly or cagey responses. Make sure to double-check the facts with your sources and it you’re not confident about the answer, at the very least acknowledge the question, comment or statement, express concern and say you are looking into it. This can help buy you more time to find the appropriate solution.

Be flexible. Don’t assume that either the complaint is 100% genuine (consider carefully its motivation) or that you are 100% correct in your response. If you don’t have the full facts, say so publicly and communicate updates thereafter regularly. Appear anxious to help, as opposed to desperate to please. Backing yourself into a rhetorical corner can prove awkward when you have to extricate yourself publicly.

Be transparent. Admit if you have made a mistake. Denials, evasions insincere apologies as a means of quietening a community are often quickly spotted by the community and may simply inflame the issue. And while the tactic of trying to take a conversation offline can help diffuse difficult situations by buying you more time to assess the situation and/or find a solution, it can also be seen by the customer as a sign of weakness or withdrawal and lampooned as such.

Be sincere. If the complaint is genuine, apologize sincerely and with humility and in language appropriate to the audience. And yet an apology will mean nothing unless the problem is resolved in a reasonable manner. Sharing what you as an organization have learned through the experience is also a good way of demonstrating that your empathy is genuine.

Be human. As The Cluetrain Manifesto pointed out, ‘conversations among human beings sound human’, and are ‘conducted in a human voice’ that is ‘typically open, natural and uncontrived’. Look to use language that is accessible, engaging and empathetic while remaining at core professional and objective. Avoid jargon and respond direct to the individual or group using their actual names. ‘Dear valued customer’ doesn’t wash it with customers increasingly expecting personal attention.

Be focused. Not all customers are equal, and while social media is leveling the playing field, some – the 1% – are most active in the community. You need to identify your top influencers, make sure to understand their interests, requirements and behaviors, and make sure your PR, marketing and customer service teams understand when and how to interact with them. This is not to say you should ignore the rest of the community which, clearly, must not be allowed to feel unwanted or ignored, but be aware that complaints from highly socially engaged customers, bloggers and other influencers may impact not just the community itself but can also make waves beyond it.

Follow-up. Once you have acknowledged the issue and responded, find ways to engage direct with the customer in question on an ongoing basis. Encouraging deeper discussion on the topic will show you are willing to listen and learn, and help make them feel like you care. Equally, walking away once you have responded can make it appear as if the customer is no longer a priority.

Add value. Following up also provides you with additional opportunities to add value to conversations and hence deepen relationships and re-build trust. Look to be helpful by providing options rather than just a single solution, or be seen to go the extra mile by pointing people to useful or relevant information. People will notice – and may comment on the fact – that you are bending over backwards to help them.

Take control. Negative comments on your community should be actively managed – it is after all your channel. Proactively rebut statements that are demonstrably untrue or misleading and, above all, don’t run away from your page in challenging times as it will only make your detractors appear as victors. Ensure discussions remain within the parameters you have set in your Community Guidelines and enforce your terms regarding offensive posts, the sharing of confidential or personal information about company executives or other members of the community, third party advertising, repeat/verbatim comments etc. And remember that it is within your rights to ban members who consistently flout the rules, though you may want to explain why you are doing it both to the individual and to the community as a whole.

Avoid fights. Don’t antagonize your audience or get into online arguments: as Nestle discovered to its cost in the wake of Greenpeace’s palm oil campaign, David usually wins against Goliath in the court of online public opinion. If the situation is volatile, step back and wait for the right opportunity to engage with the customer in question, meantime work closely with the relevant internal stakeholders – often Sales, Public Relations and Legal – to develop a reasonable solution. Appearing thin-skinned will only make you appear weak and vulnerable.

Don’t censor. Nothing conveys a failure to listen and understand better than censoring or removing criticism from your official online communities or elsewhere. Realize that critical voices are a price of entry to the social web, and that deleting or demanding changes to negative posts can provide detractors with a powerful rhetorical weapon. Rather, always try to maintain the high ground, be seen to be responsive and listening and deploy a strong legal approach only as the final option: deleting content or threatening bloggers may simply result in the so-called ‘Streisand effect’ as complaints escalate and go viral.

It is essential that the teams managing official channels as well as interactions with third party online communities understand these principles and are properly trained in the art and science of handling negative opinion.

October 19, 2012October 19, 2012

Most top 50 Brands Not Social

Old habits die hard: most top 50 brands not social

The more things change, the more they stay the same, 15 years ago, brands had static websites and a unique way to interact with their followers through email or phone, what did they do? They remove phone numbers, addresses and email from their websites.

Fast forward 15 years, in the social media era, most brands have not changed. reminiscent of their old ways, they block followers from initiating conversations and/or only allow them to respond to posts.

In short, brands are still afraid or at best awkward when it comes to one on one communication. They are still stuck in their old broadcasting ways, using social media as a one way communication tool.

According to an A T Kearney study, out of Interbrand’s Top 50 Global Brands on Facebook,

27 of them won’t even reply directly to their customers
20 of the 50 companies have a 4:1 company to customer ratio of posts on their Facebook pages.
71% of the company posts were promotional
Only 5% of all posts actually sought to create real conversation with their customers
Companies as consumer-facing as Disney, McDonald’s, and Sony only allow posts that were created by the companies themselves
Only one of the Interbrand Top 50 routed fans to an unfiltered Facebook wall, while the other 44 initially choose to show consumers and fans a filtered selection of company posts only.
Of the more socially engaged companies, 25 companies in our study had consumer-to-company post ratios in the 3:1 range—three consumer posts for every one company post. These companies include Coca-Cola, BMW, eBay, H&M, Kellogg’s, Pepsi, Heinz, ZARA, NESCAFÉ, Nintendo, Amazon.com, Nokia, Honda, Gillette, Philips, HP, Samsung and L’Oréal Paris. The remaining 20, however, demonstrated nearly a 1:4 ratio between consumer and company commentary.
Only 5 percent of company-to-consumer posts engaged consumers in discussions, while 71 percent of posts were promotional

Most traditional marketers are still not comfortable engaging consumers one on one and default to their traditional ways. they are afraid to lose control of their message and brand and do not understand the dynamics of social media and as a result, budgets may not be available to hire dedicated social media staff or dedicate employees to interact with consumers.

Most brands consider social media to be exclusively a marketing tool and lose sight of the value social media conversations bring to other departments like customer service, R&D, quality, HR to mention only a few. As such, social media can considerably cut customer service costs, development time, correct product or service defects faster, attract valuable talent in a more cost effective way and fail to include these savings and/or revenue generation in the overall ROI

Can you teach an old dog new tricks, sometimes, but past behaviors and trends are not exactly encouraging most top 50 brands succeed at generating “likes” and followers but fail at social engagement and miss out on the real value of social media.

September 12, 2012September 12, 2012

Social Media Customer Service is a Failure- Frank Eliason

My view is that social media customer service is a complete failure due to a number of factors. For example you have companies out there that are focusing on people with the high Klout score. I don’t think that works so well. Look at that concept through the lens of some of the famous instances over the years. I worked for a cable company and at one point there was a video of a technician sleeping. The person who put that video up had posted two videos, ever. Let’s face it, it was just good content. It was just something we enjoyed watching — so we watched it over and over again. I am not a fan of influencer-based marketing, or providing priority service based on someone’s Klout score.

I hear this all the time: “we want to be where our customers are and our customers want social service.” I say consumers don’t want social service, they just want it right the first time, and if it’s not right they’re looking form someone to fix the experience. What’s going on is these companies are doing social servicing because they think their customers want to be serviced that way but, they’re not taking this customer feedback and fixing what is wrong; they’re not using this feedback to bring about true change!

Think about this: everything we do sends a message to people. We need to remember that.

We focus on call centers and we look at things like “call handle time.” That sends a great message to your employees: “get the customer off the phone as fast as possible”; they’re measuring the speed at which the call center rep can end a call, not solve a problem. This sends a message to the customer because, guess what? – they can tell when they’re being rushed off the phone. And on the PR side, for example, what are they listening for? They’re listening for that next PR crisis. But listening is much broader than one little silo. It is taking this information and putting it in the hands of the product people, the sales people, the C-suite, etc. All people should have access to and understand this information because it can drive product and support changes, not just PR wins.

September 10, 2012September 10, 2012

Small and Medium Size Businesses Struggle to Adopt, Integrate Social Media

Small and medium-sized businesses still lag behind when it comes to using social media and integrating it throughout the business.

In a March 2012 study from SMB Group, only 24% of US small businesses, those with between 20 and 99 employees, said they used social media to engage with customers and prospects in a strategic and structured way. An additional 20% said they used social media, but in an ad hoc, informal way. US medium-sized businesses, with 100 to 999 employees, were slightly more active, as 33% said they used social media in a strategic way and 19% in an ad hoc way.

When it comes to the specific social channels SMBs are using, Facebook, not surprisingly, tops the list, with 26% of small businesses and 38% of medium-sized businesses saying they used a company Facebook page. Additionally, 20% of small businesses and 32% of medium-sized ones said they also engaged and posted content on relevant Facebook groups. Small businesses were least likely to use geolocation services, with only 3% saying they used them. But for medium-sized businesses, only 6% said they used social bookmarking sites like Digg.

Integration of social media within company processes is one of the latest trends, as larger companies work to incorporate social beyond marketing and into customer service, sales, and research and development. SMBs are also working to do so, but still have a ways to go. Of those respondents that used or planned to use social media, 37.7% already integrated social media into the company website and 22.2% did so within marketing processes. However, more than half (55.1%) of respondents had no plans to integrate social media into the product development process, and 43.9% said they had no plans to do so within a company mobile-friendly website.

A separate May 2012 study from Constant Contact found the majority of US SMBs (60%) were holding their marketing budgets steady in 2012, and that social media marketing was considered effective by only 49% of US small businesses. These smaller companies are holding out, on budgets as well as social media integration, but they would be well-served to follow in the footsteps of larger companies and get involved.

August 13, 2012August 13, 2012

Traditional Marketing Is Dead

Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Many people in traditional marketing roles and organizations may not realize they’re operating within a dead paradigm. But they are. The evidence is clear.

First, buyers are no longer paying much attention. Several studies have confirmed that in the “buyer’s decision journey,” traditional marketing communications just aren’t relevant. Buyers are checking out product and service information in their own way, often through the Internet, and often from sources outside the firm such as word-of-mouth or customer reviews.

Second, CEOs have lost all patience. In a devastating 2011 studyof 600 CEOs and decision makers by the London-based Fournaise Marketing Group, 73% of them said that CMOs lack business credibility and the ability to generate sufficient business growth, 72% are tired of being asked for money without explaining how it will generate increased business, and 77% have had it with all the talk about brand equity that can’t be linked to actual firm equity or any other recognized financial metric.

Third, in today’s increasingly social media-infused environment, traditional marketing and sales not only doesn’t work so well, it doesn’t make sense. Think about it: an organization hires people — employees, agencies, consultants, partners — who don’t come from the buyer’s world and whose interests aren’t necessarily aligned with his, and expects them to persuade the buyer to spend his hard-earned money on something. Huh? When you try to extend traditional marketing logic into the world of social media, it simply doesn’t work. Just ask Facebook, which finds itself mired in an ongoing debateabout whether marketing on Facebook is effective.

In fact, this last is a bit of a red herring, because traditional marketing isn’t really working anywhere.

There’s a lot of speculation about what will replace this broken model — a sense that we’re only getting a few glimpses of the future of marketing on the margins. Actually, we already know in great detail what the new model of marketing will look like. It’s already in place in a number of organizations. Here are its critical pieces:

July 31, 2012July 31, 2012

Reviews Are Key To Build Consumer Trust

Gaining consumer trust is an important issue for marketers seeking to ensure that they’re not scaring prospective customers away. In fact, a March to June survey of US adults conducted by About.com found that 84% of respondents felt that brands needed to prove themselves trustworthy before they would interact with them or other information sources. Moreover, the study found that there were 10 primary trust “elements,” or cues, that brands must establish in order to engender trust, including accuracy, expertise and transparency.

In a social media context, customers wanted to see that brands had a significant number of positive reviews, and that they didn’t go out of their way to hide the negative ones. The survey found that 41% of respondents said the ability to see reviews on social networks added to their feeling of trust in a brand. Reviews played a bigger role in cultivating trust than seeing that friends had “liked” or recommended a brand, or that the brand had accumulated a large tally of “likes.”

Video was found to improve trust the most when it served as a complement to other types of content. This ties back in to consumers’ hunger for useful information. Brands can build trust with potential customers by demonstrating expertise through quality owned content that is also devoid of a hard sales message.