2. Product knowledge is crucial
to successful relationship
building. Your CSRs must know your business’s products, programs and
service offerings inside and out. That’s not to say they must be technical
experts regarding the intricate workings of the product, service or
high-tech equipment, although this helps, but they must be familiar with
what everyone in the business does, how everything in the business works
and how a customer is supposed to use it.
The CSRs must be products of the product. They must use the product on a
regular basis themselves. They must communicate with the entire staff so
they are constantly informed about improvements in the product. They must
also learn how the staff uses and feels about the product. Then, they can
combine this knowledge with their own plus what they gather from customers
and improve the way they work with customers. This is the only way that
they can truly understand the emotional makeup of the customer who calls
or comes in.
A customer does not want to hear that they have to be transferred to
someone else because the CSR answering the call doesn’t know what the
customer is talking about. It only takes one or two of these instances and
the customer is likely to go elsewhere. So, while you train your CSRs on
how to use the phone system, the computer system, the software and how to
speak to customers, make certain you train them on what you sold to your
customers.
3. Invest time to learn about customers.
Get to know what they
need, the purpose of the call, and the hidden agendas or purposes within
the call. The same holds true for each customer visit, whether it’s for a
new purchase, to return a previous purchase or to discuss a situation with
the owner or manager. In many call center settings, CSRs are on a
production model related to their performance. They must handle all the
incoming calls within a certain amount of time.
They must answer
customers’ questions and then make specific dispositions of these calls.
Their effectiveness is often evaluated on how many of these activities
they complete instead of how well they are serving the customer (quantity vs quality). In lieu of this, I recommend that you first consider the
quality of the customer contact. Let the CSRs stay on the phone as long as
is necessary to help the customer become satisfied.
When the completed
call has a satisfied customer on the other end of it, the CSRs performance
should be rewarded in a similar manner as if they were meeting a
production or sales goal. The same holds true when the CSR does a great
job in a face-to-face encounter. Remember that behaviors that get rewarded
get repeated. So, reward CSR behaviors that serve the customer well, that
satisfy the customer, and that help to build those long-term customer
relationships.
4. Provide value to customers on every contact.
Whenever a customer
calls, whether it is to complain, get information from your CSR, or make
another purchase, give them something of value. This does not have to be a
monetary reward for doing business with you. It’s even better if the value
is more perceptual or psychological. This will have more meaning to them.
And, always remember to have CSRs say thank you.
5. Establish a win-win partnership for service.
Train your CSRs to
work with the customers so that the success of the call or visit is
dependent upon a collaborative effort. When the CSR resolves the problem
for the customer, and there is no involvement on the customer’s part, you
only get half the result you should have gotten.
Train your CSRs to work
through the problem or situation with the customer and, together, they
should come up with the answer. Customers who perceive that their CSR (and
the entire business) wants to work with them and cooperate to give him or
her what they want, will spend more time and money with that business.
That means more renewals and lower attrition rates.
6. Reward customer loyalty.
How you do this is up to you. Whatever
you do, make sure the reward is perceived to be of high value by the
customer. Again, it does not have to be financial to be valuable. My book,
Beyond Customer Service: Keeping Customers for Life, has descriptions of
various loyalty reward programs you can implement in your business.
One
customer reward program we developed for a client involved assigning
specific CSRs to certain customers so that when the customers called or
came in, needed help or had a problem that needed to be resolved, they
asked for that person. Even though anyone could have helped them,
customers felt they now had their own personal CSR.
This made the
customer feel very important and kept them involved with the business for
an extended period of time. (This was a fairly small business so
assignments could be made. This concept may not be feasible in larger
companies.)
7. Communicate regularly with customers.
CSRs should be very
proactive in their customer service. While most CICs and businesses are
reactive with regards to customer service, and they wait for customers to
call or come in, you can make your business more proactive and have the
CSRs call customers just to see how they are doing. Customers will
perceive this as a very caring act on your business’s part and this will
strengthen the psychological relationship they have with your business.
Some other benefits
The most important thing in business right now is to attract and retain
the most profitable customers for your business. Your CSRs are the
customer’s first contact with your business each time they call or come
in.
By training your CSRs to be more than greeters, order takers or
information gatherers, you can achieve higher retention rates, increased
referrals because customers like your business’s friendly and helpful
atmosphere, and higher customer satisfaction ratings. All this then
translates into greater customer loyalty and retention.
Using CRM to increase retention
There are two primary co-issues in business today. They are how to attract
and retain your most profitable customers, and how to recruit and retain
your most productive employees. While customer retention pays the bills,
employee retention is as important as customer retention when it comes to
making a business successful.
With turnover rates increasing in both
arenas, and the cost of replacing an employee now equalling or exceeding
the cost of acquiring a new customer, businesses must use their CRM
processes in a dual retention effort.
Here are some suggestions on how to use CRM, and what I call ERM (Employee
Relationship Management) to attract and retain the best customers and the
best employees. Please notice that nothing is said here about using the
latest technology, although computerization may help the process. What we
are talking about with this concept is the softer side of C/ERM.
Recruit with Integrity: Deliver what you promise
Whether you are dealing with customers or employees, the retention process
begins with the recruitment process. What you say and do while you are
trying to attract customers and employees will have a definite effect on
how loyal they become and how long they stay with you. It is imperative
that the promises you make are the ones you deliver on.
Years ago, businesses were taught to underpromise and overdeliver as a way
to manage expectations and provide great customer service. That behavior
may still work today, but it is more important to deliver exactly what you
promise.
Too much fluctuation between promises and deliveries will be
perceived by customers and employees as attempts at manipulation. Overcome
this with integrity. Be honest in all your dealings with customers and
employees and they will reward you with loyalty.
Create a customer-based culture
Let your customers and employees know that the company is behind
them 1000%. Focus on doing what is best for them and they will, in turn,
reward your business with their loyalty. Customers will purchase more from
you more often.
You will achieve a greater share of their wallets.
Employees will reward you with greater productivity and longer-term
employment.
This will reduce
your recruitment, training and ramping-up costs for new employees. And,
your customers will be more appreciative because they will be dealing with
the same employees over time. With both customers and employees, the
bottom line is to show them you care.
Individualize reward and recognition programs
Although one size doesn’t fit all, too many businesses are mired in the
muck of a standardized loyalty rewards program. This program was designed
by someone, somewhere, and it is supposed to motivate and incentives
employees to perform well and customers to make additional purchases.
Unfortunately,
cookie-cutter reward and recognition programs only work for a few people
some of the time, and the only reason they work is because they are
exactly what those people want.
The reasons
these programs don’t work for others are because the rewards and
recognitions are so far removed from what they truly want, and they quite
often see through the programs as simple manipulations to influence
behavior. The lesson here is to ask customers and employees what they want
in the way of rewards and recognition.
You may be
surprised to receive answers other than money. However they respond,
make sure you input the data into your CRM system so you can implement the
appropriate programs for the respective employees and customers.
Professional development and ‘pathing’
Most companies agree that it is important to provide professional
development programs for their employees, as well as visible career paths.
They even track these programs in training management or HR software.
However, companies that provide professional development opportunities for
their customers go a long way to cementing those relationships and
creating customer loyalty. Hold seminars and educational programs for your
customers. Teach them how to perform better in their business. The pathing
concept can also take it a step further by creating service paths for
customers.
Those customers
who spend the most money with you and who have been with you the longest
should receive a different level or path of service. This tiered approach
makes customers feel special and it also motivates other customers to
achieve these higher levels of service.
Longevity and loyalty
Here’s a radical suggestion that will work with both employees and
customers. Instead of trying to constantly recruit new employees and
develop new business relationships, why not find out what makes your loyal
and long-term people stay with you. Then, give them more of what they want
so they will stay loyal longer.
Recognize and
reward longevity and loyalty for employees the same way you would for
customers. In fact, treat all employees as the primary customers they
truly are. Your appreciation of them will be returned by increases in
retention. We already know that it takes up to five times more money to
acquire a new customer than to get a current customer to make another
purchase, and we can extend this statistic to employees.
This should
motivate everyone to work to keep their employees and customers.
Similarly, if you’re going to develop special offers or loyalty programs
to attract new customers, think about giving those special offers to your
long-term customers instead of the new ones you are trying to attract.
Reward the
loyalty of the few who have stayed with you and they will bring you
more business than you can imagine. In both cases, track their loyalty in
the forms of referrals and repurchases.
One lasting thought
When you have long-term customers and employees, you should also ask them
to recruit others like them to your business. This has a multiple benefit
for everyone involved. First, recruiting costs for employees and
acquisition costs for customers go way down because referrals are always
the least expensive approach to new business.
Second, employees and
customers who refer tend to refer other people or businesses who are like
them (possessing the same values, work ethic, goals, etc.) so you will be
getting a new employee or customer who has the potential for longevity.
Third, your new customer or employee brings a feeling of trust into the
new relationship with you. This makes all your C/ERM efforts easier
because of the positive first experiences, which leads them to tend to
stay with you longer.
<><><><><><><><>
Richard F. Gerson, Ph.D
Richard Gerson is president of Gerson Goodson, Inc., a consulting firm
that specializes in helping companies increase their profitability by
developing and managing long-term customer relationships. The company also
works with clients to measurably improve the performance of their
employees by maximizing productivity through psychobehavioral techniques.
The results of his training and consulting programs turn individual and
organizational ordinary performers into extraordinary performers. GGI has
worked with clients ranging from individual entrepreneurs to Fortune 500
and Inc. 500 companies. Gerson has also coached executives, sales
professionals, athletes and teams to achieve performance improvement and
peak performance.
Gerson is an internationally renowned, and much sought-after, speaker and
trainer. He combines humor, education and entertainment to get his message
across to audiences. He has authored 16 books and published over 350
articles in journals, magazines, newspapers and newsletters. He has a
Ph.D. in Sports Psychology from Florida State University, along with six
professional consulting certifications.
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