The 123 of Great Customer Service

I've heard many theories of what makes great customer service.

In my mind though it's really simple.  Simple as 1, 2, 3.

If there's one golden rule in life it's this... to always do your best to treat people as you would like to be treated.  This is the foundation of a meaningful life and it's also what underpins great service.

To do that, practically, there are 3 things that matter;

   1. Solve the problem that the person has

   2. Be fast

   3. Do it with a smile

We can add on to the above a lot of detail, but let's not.  It really should be that simple. Great service is really those three things whichever way you look at it;

Be helpful, be fast, be friendly.

As a P.S. I'd add a fourth principle, to always do everything possible to prevent the issue from happening again.

Delivering that simplicity time and time again is a real challenge, as an individual, as a manager or as a company.  It's a challenge that is very rewarding to get right.

Is it really that simple?  What do you think?

Seven Steps To Heaven

Where online marketing fits in creating customer value, and what this means for return-on-investment calculations

Ecommerce is relatively young, but it’s maturing fast. Increasingly there are few businesses that don’t / can’t exploit the online channel as a route to market.

Many have used online marketing to great effect, and there are plenty with experience and success in areas such as email marketing, SEO, paid search and affiliate marketing.

Of course, the great thing about these methods is that they can be measured and spend can be justified with the success that it brings. However, all too often these channels are viewed in isolation and success is sometimes simply measured by the number of transactions that can be directly attributed to the relevant email, affiliate or search campaign.

It’s clear to me however that to measure success, online marketing investments must be viewed in their context of the overall marketing strategy.

Getting back to basics - what is marketing?

Marketing is concerned with creating value for customers and extracting value from customers.

Long term value creation is based on sustainable competitive advantage, which is derived from the ability to provide superior value for customers and provides the reason why customers consistently buy from one company rather than another.

In ecommerce the value we can provide for customers is based on a number of different factors, including, but not limited to...
- Price
- Choice
- Filter and choice selection tools
- Ease of purchase and payment
- Brand reassurance (if the site is well known)
- Personalisation
- Reviews / advice from other customers
- Delivery and shipping
- Customer service

When we spend money on marketing activity to communicate our proposition to our customers and our potential customers, we are doing three things...

1. Bring new customers (acquisition)
   
2. Generate repeat purchases from existing customers (retention)
   
3. Generate more revenue per customer (development)
   

Given the above I think it really helps to understand WHY you are investing in SEO / PPC / Affiliates / Email etc. A good starting point is to think about customer value and then think about how much a customer is worth to you over their lifetime.

I’ve been a customer at Amazon.co.uk for about 10 years now. I may well be a customer there for another 30 years if they don’t screw up. Clearly, whatever activity they did 10 years ago to get me on board worked, but importantly, it must be measured not against my initial purchase but on the total lifetime customer value.

Over 10 years, I have purchased 190 items. I just checked, on my account history, it’s all there! Plus I rented DVDs on a subscription for 3 years. I am probably worth to Amazon about £4,000 over the 10 year period. PLUS – being a fan I’ve recommended many people over the years.

My first order was Steve Redgrave’s book of rowing, £16. Great book. I don’t know how much Amazon had to spend to acquire me as a customer, but I know for sure that if they had measured their marketing investment on my first purchase only, they would have got it completely wrong.

How to calculate a lifetime customer ROI...

CUSTOMER VALUE
[Price] x [Annual Volume] x [Customer Years]
+ Referral Value
+ Promotional Value
= Total Customer Lifetime Value

VALUE CREATION COSTS
(Cost of Acquisition)
+ (Cost of Retention)
+ (Cost of Development)
+ (Special Requirements)
+ (Marketing Overhead)
= Total Value Creation Costs

TOTAL VALUE = (CUSTOMER VALUE - VALUE CREATION COSTS)

On a really simple level, to gain a sustainable competitive advantage any business needs to provide
- the best customer value (however the customer judges value)
- and the best return on marketing investment over the full customer lifecycle

To help put this into perspective, I find the following model useful.



It shows the key stages in “owning” a customer and for each stage; specific promotional goals are required to achieve the customer response. For a company to be truly successful they need to draw potential customers through all stages.

These stages are the steps by which customers receive and use information in reaching decisions about what actions they will take. From not knowing about your product/service to recommending it to others, there are 7 steps to heaven.

The highest marketing costs are usually for the first stages, on the left. The biggest returns come from the stages on the right.

Now to the crux of what this article addresses...

Where do all of the “online marketing” methods fit on the model above? By understanding this, you have a framework to better present your marketing spend in its proper context.

Awareness: Does the customer know that the product/service exists?

• Online PR, social media marketing
  
• Finding a link to the product when doing a Google search on a relevant keyword (PPC / SEO)
  
• Finding the site on a search from their mobile phone
  
• Clicking on a banner advertisement
  
• Seeing a reference from a known company (contra deals / competitions)
  

Interest: Does the customer think that product might meet their needs?

• If the customer does not know what they are looking for: inspiration is needed, ideas and suggestions
  
• Special offers can drive interest for price-sensitive customers
  
• SEO/PPC must match on specific keywords used and tailor the ad copy to that interest
  

Evaluation: Does the customer have enough information to make a decision?

• Build great content. Photos, maps, specifications, availability
  
• Peer reviews and expert reviews, the community can provide the content
  
• Provide booking services that allow customers to compare and contrast options. Search and filter tools are needed to narrow down choices
  
• Create a shortlist, share with friends (collaborative decision making)
  

Preference: Does the customer choose your product to purchase?

• If the customer already knows that they want a specific product and they search by product name, be sure your PPC / SEO / affiliates takes them directly to the product
  
• Have the product in stock
  
• Ease of purchase (payment methods)
  

1st purchase: Can the customer make a purchase easily?

• Always available, real time, 24/7
  
• On all places where the customer might be (as many websites as possible – affiliates, plus own website)
  
• SMS / email confirmations. Delivery and shipping instructions. 
  

Repeat purchase: Can you easily communicate with existing customers and maintain a relationship with them?

• Make it easy for your site/product to be found again through search 
  
• Maintain a customer database
  
• Email marketing
  
• Segmentation / personalisation of messages
  

Advocacy: Is the customer so impressed by the service that they tell others and generate even more business?

• Customer satisfaction emails
  
• Customer reviews
  
• Guest recognition and personalisation
  
• Case studies and customer-based PR stories, distribute online
  

I find that looking at online marketing as part of the overall marketing strategy helps to provide a better understanding of how to calculate a meaningful return-on-investment beyond the immediate gratification offered by same-session conversion metrics.

What’s obvious to me from the above is that not only is online marketing core to the success of an ecommerce business, but that website product management is also clearly a marketing activity. Often there’s confusion about who owns the website functionality. To me it’s clear; it’s part of the overall customer experience, and forms part of the marketing mix.

One important final note; as we are all different as individuals, so are companies and products. There are some products that do not lend themselves to a lifetime customer value view as much as others. Products or services that are bought infrequently need to mainly address customer acquisition, whereas products or services that are bought frequently or repeatedly required much more emphasis on retention and development.

I’d love to hear comments on how the above list could be expanded. If you have any thoughts about what should / shouldn’t sit on the 7 steps to heaven, let me know!

Raja-Fashions Tailor-Made Hong Kong Suits, Online Meets Offline

The joys and perils of buying a suit from the other side of the world.

Here's an example of where the internet and modern communications have transformed what's possible. Online meets offline, personalised service in a mass-market, off-shore manufacture, on-shore sales - it's a whole world of opposites.

If you know me, you'll know I'm tall and slim. The "slim patroller" they used to call me in the day. Getting clothes to fit me is very difficult, never mind a suit. I can get the fit on the shoulders only to find no length in the sleeves and a tent around my middle. Trousers that fit my waist don't reach my ankles.

Recently into a new job, I thought it was time to invest in a new suit. I managed to squeeze 10 years out of the last one, but the poor old thing had had it's day.

This time I thought I'd try a tailor made suit (for the reasons mentioned above), but I didn't want to spend a fortune on Saville Row.

I'd heard of Raja Fashions before having seen their adverts in the papers. You might have seen them too - they talk of a Hong Kong tailor, Mr Daswani, who travels the world (mainly the UK and the USA) to measure up clients for his team of tailors in Hong Kong. You're promised high street prices, but tailor made quality.

(Offline advertising for brand awareness)

I recalled the name so I went online and searched Google for "Raja" and "Hong Kong Tailors" and sure, soon enough I found their site. On the site, I found a list of dates when he would be in London, and I could make an online reservation from the site for the date and time that suited me. As it happened I had a 3 week wait before my Saturday appointment at a Kensington hotel suite.

(Online lead generation and appointment facility)

I was kind of expecting to see Mr Daswani, but no, the room had 4 younger guys from his team, with suitcases of fabric samples, tape measures and credit card swipe machines. Very quickly I was being seen to by "Dennis" (I'm sure that's not his real name) who very quickly started to take details about what I wanted. I said I wanted 2 suits, one simple black one and a slightly more fashionable brown pinstripe. He measured me up, and asked questions about various options I had such as type of vents, width of lapel, angle of pockets, number of pockets etc etc. To be honest I wasn't quite sure what I wanted, it felt uncomfortably fast and I was getting flustered. Maybe that was his technique. Moving so fast I was caught off guard on the negotiation front. I was expecting to pay £300 to £400 per suit. In the end, with upgraded fabric, nice lining etc, I was looking at £650 a suit. I also went for a white shirt (only £50), so the total bill was a whopping £1350. Ouch. Whilst I was being distracted by a guy taking my photo, my credit card was already being processed and only 25 minutes after walking in I was leaving wondering how on earth I managed to just drop that kind of money and would I get what I wanted?

(Old fashioned pen and carbon copied paper, and a "tiger" for a salesman)

I was told to expect my suits within 4-6 weeks. 3 weeks in and the shirt arrived. Great fit, just that it was a little tight around the collar. I don't usually wear a tie, so I let it go. It was great to have a shirt that didn't flap across my chest and was long enough on the sleeves and tails.Being cotton, it has shrunk a small amount too. I thinkif I were to order more of these I'd get and extra 1/2 inch on the collar.

(International parcel delivery)

I waited for the suits, but they didn't arrive. 7 weeks in I emailed Raja Fashions in Hong Kong and was told by reply that they had despatched about 3 weeks previously. I was given a Parcelforce tracking number which I looked up online. It's at this point that I started a period of 4 weeks of stress trying to get my suits. I don't think I'll go into the full details here (it warrants it's own blog post) except to say that the parcel had the wrong house number on it, it was apparently signed for and delivered at an address 4 doors down, by a name not heard of by the owners of the house, with the suit no-where to be seen.

Given that this happened at Christmas time and I was having to deal with Parcelforce's customer service centre (think: impossible call routing systems that have none of the options that relate to your situation).... well, you can imagine.

(Automated UK customer "care" - nothing of the sort!)

Three weeks later I had manage to confirm that the suits were not where Parcelforce said they were and was just about to call Mastercard to re-claim my outlay, when Raja Fashions confirmed that they would re-do the order and send the suits over within 2 weeks. I had almost given up.

(Email Hong Kong customer care, this time with results)

Sure enough to the day, my suits arrived and I was this time given an SMS to alert me of the delivery with a choice to choose a different day if the proposed day didn't work for me. Nice touch. Shame they didn't do this first time around and I might have managed to get the suits.

(SMS customer alerting)

My suits arrived in a cardboard box, slightly crupmled after their journey. I tried them on straight away with some nervousness. It was 3 months of effort, a signficant amount of stress and a fair chunk of change to get this far.

The result? Spot on. Absolutely fantastic fit. I sighed a big sigh of relief and looked forward to wearing my new threads.

I had to take the jacket of one suit to the local dry cleaner to get the crumples steamed out of the arms, but that was no big deal.

I've since enjoyed wearing my new suits and I must say, the feeling of tailor-made has me converted. It's lovely good quality wool fabric, feels very sharp. There's no going back to M+S again now.

Would I use Raja-Fashions again?

Yes - I think I would. I am very very happy with the end result. The process to get there was very stressful, but I think to be honest I was just unluckywith the delivery. Raja-Fashions redeemed themselves by re-doing the order once they were sure that it had gone missing.

I've got my next appointment in 6 weeks time. A supply of shirts is in order I feel!

Apart from my personal story, the story here is of a very successful business that is a real mix of all possible ways of doing business: offline advertising, online lead generation and appointments service, face to face sales, old-fashioned payment systems, off-shore manufacturing, personalised goods, international delivery, email customer service, SMS delivery alerting. By locating in Hong Kong but by travelling to their customers around the world, Mr Daswani has created a compelling business model that is going from strength to strength. Good for him I say. Good for me too, the lanky odd-ball that I am.

Experience Is All That Matters

It's a great saying: "Be Your Own Customer".

It's only when you actually experience being a customer that you really know what it is that you are selling. OK - you might be able to hold the product you are selling. You might be able to go into the shop and see the shop. It's not until you actually try and find the shop for the first time, find what you are looking for, buy it and take it home to use it that you truly experience what you are offering your customer.

The key point is this: you never sell a product - you always sell an experience.

Let's take an example. The iPod. The iPod has been phenomenally successful. You hear people extolling the virtues of the "user interface", the "design", the "packaging", the "marketing".

Really though, it's the sum of all of these parts (and more) that is the iPod experience. The marketing campaigns convey a simplicity and "cool factor". If you go to buy one from an apple store (online or in the high street), you are wowed by state of the art presentation. You may get good service in the shop, or - if online - you get site that is well designed and easy to buy from. The packaging is so slick, neat, clean. You unwrap your iPod and just "feels" great. You just plug it into your computer, it charges fast. You download iTunes - nice and easy. In fact, iTunes is just as much a part of the iPod experience as the player itself. It's all so easy. Then of course, there's the user interface - the simple controls. On top of that it just "looks" cool.

You see - the iPod is not successful for any one of these individual factors. The total "experience" is what counts. I'm not saying that everyone has a great experience every single time - I know of people who have a had batteries that fail after just a year. Some of these are genuinely annoyed and will never use Apple again (Apple, take note - "must improve here"). Equally though, there are fans that will just dump the old player whose batteries failed and just buy a new one. Their experience to date was SO good, that the simple fact that the product was substandard did not put them off buying another one. Kudos to Apple.

For any business therefore, every point of detail matters. The message, the communication, the product features, the sales process, the purchase experience, the convenience, delivery / pick up experience, customer service, product reliability. None of these details ever stand alone.

Unless you are a company of just one person, you always have different staff members dealing with different parts of the experience. As a result, none of them get to see the overall picture from a customer's perspective.

The only way to see what you are really delivering, is to be your own customer.

Go buy your own product. See what it feels like. Is it good enough? Is it better than your competitors? Go test their products too. Now you're getting somewhere.