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Customer Service & The Internet

Customer Service & The Internet. Gary W. Koutnik, MAI March 15, 2003. Discussion Points. Why Customer Service is so Important What Constitutes Good CS? A good definition How do you achieve good CS? The internet, how does it come into play? Implementation What is CRM? Expectations

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Customer Service & The Internet

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  1. Customer Service & The Internet Gary W. Koutnik, MAI March 15, 2003

  2. Discussion Points • Why Customer Service is so Important • What Constitutes Good CS? • A good definition • How do you achieve good CS? • The internet, how does it come into play? • Implementation • What is CRM? • Expectations • The cost of keeping a customer • Summary • End notes

  3. Why Customer Service is so Important • Price is cut to the bone • Your competition is tight • The supply chain is managed • Your customers know what your competition is up to • If you don’t take care of them-your competition will

  4. What Constitutes Good Customer Service? • This will vary by industry but there is a common thread • Give the Customer What They Want • Give the Customer What They Need • Exceed Customers Expectations • Do it Better Than Any Other Firm • It is more of a customer perception Source: the aca group web site

  5. So, how is customer service defined? “You can be doing the best job in the world for your customer, but if there’s something missing, if the customer is unhappy, then all your opinions about your performance are worthless. Great service is a matter of perception. Great service is what the customer thinks it is.” Mark H. McCormack “On Selling” – Dove Books, 1996

  6. How do you achieve good CS? “ 1. Target the right Customer. 2. Own the customer’s total experience. 3. Streamline business processes that impact the customer. 4. Provide a 360º view of the customer relationship. 5. Let the customers help themselves. 6. Help customers do their jobs. 7. Deliver personalize service. 8. Foster community.” Patricia Seybold “Customers.com” – Time Books, 1998

  7. The internet, how does it come into play? • The customer can access you 24/7 • Software can tailor customer experiences individually and collectively • Software can build a tremendous data base • Your competition is using it-you’d better get on board • If you provide bad service, a customer can set up an Ihateyourcompany.com web page

  8. Implementation • CRM • Customer Relationship Management Software Applications • What is CRM? • “Simply stated, Customer Relationship Management (CRM) is about finding, getting, and retaining customers.” Source: Real Market Website

  9. Other Explanations of CRM? • Consolidate Customer info from multiple channels. • It allows a firm to interact more directly with customers • It is a tool to get feedback from customer • It’s a sales and marketing tool

  10. What is the function of CRM? • It allows the customer to handle problems • Gives all dept. a composite of purchasing/service history • Coordinates interactions with all customers touch points • It analyzes data to find your most valuable customer & target services to them

  11. The big dilemma • Off the Shelf? • Custom Designed? • There are pros and cons to both approaches • Hybrids

  12. So you’ve decided on software-Now what? • Customer-centric planning is the leading success predictors. • The real CRM project failure rate is 35%. • About 50% of projects are getting a payback within 18 months. Source: CRM Guru Website

  13. What can I expect? • Happier customers • Fewer tech support calls • Usable metrics from data mining • Increased sales • Higher profits

  14. Best Implementation • The Goal of CRM Is Sales • Keep It Simple • Keep An Eye On the Whole, But Develop In Pieces • Seed The Database Before Rolling Out To Sales • Source: internet week

  15. The cost of keeping a customer Question: Do you know the difference in the cost of keeping a customer as opposed to acquiring new ones? Answer: Acquiring a new customer cost from eight to ten times as much as keeping an existing customer.

  16. The Real World • Are there success stories in the real world? • Yes • The Aberdeen Group is an IT research and consulting company & they track them • Mammoth Golf'sSuccess

  17. More Real World • Lands End • Wells Fargo Bank

  18. Summary • Customer service is probably the single biggest interaction between a firm and a customer • It can “make or break” a company • Software and the internet can create a win-win scenario • It may be time to redefine what customer service really is

  19. Summary Continued • The company needs to be behind customer service 100% • The personnel in the company need to be properly trained • Keeping happy customers is better (and cheaper) than just acquiring new ones

  20. Some Providers of the Software There are many more. Point your browser to Google and search for CRM software

  21. Recommended Reading Customer Service on the Internet Jim Stern (John Wiley & Sons, Inc. 2000) Customers.com Patricia Seybold (Times Books, 1998) E-Service: 24 Ways to Keep Your Customers-When the Competition Is Just a Click Away Ron Zemke, Thomas K. Connellan, Tom Connellan (AMACOM, 2000)

  22. Bibliography Jim Stern, Customer Service on the Internet John Wiley & Sons: 2000 Patricia Seybold, Customers.com Time Books: 1998 Mark H. McCormack, On Selling Dove Books: 1996 Doug Howardell, How To Improve Customer Service March 27, 2003 <http://www.theacagroup.com/customerservice.htm>

  23. Bibliography Continued Realmarket, What is CRM? March 23, 2003 < http://www.realmarket.com/crmdefine.html> Sweeeny Group, Inc. CRM DEFINITION March 25, 2003 <http://www.sweeneygroup.com/crm.htm> Software Magazine, September 1999 Section: IT FRONTLINES

  24. Bibliography Continued CRMguru.com The Blueprint for CRM Success: Outcomes of a comprehensive study identifying best practices leading to ROI and factors contributing to failure March 27, 2003 < http://www.crmguru.com/blueprint/index.html> Joanna L. Krotz , Who's your best customer?Microsoft's Bcentral web site, March 15, 2003 <http://www.bcentral.com/articles/krotz/106.asp

  25. Bibliography Continued Aberdeen Group, What Works: Ten Significant Implementations in Services Management, March 1, 2003 < http://www.aberdeen.com/ab_company/hottopics/top10fsm/default.htm> Network Computing; May 31, 1999 Section: Business to Business: SEARCHING FOR ONLINE CUSTOMER SERVICE

  26. Bibliography Continued Richard Karpinski, “Inside IBM’s CRM Play,“Internet Week 4 0ctober. 2001. Dr. S. Thomas Foster, Jr., “freequality archived thoughts," Date unknown 10 April 2003 <http://www.freequality.org/beta%20freequal/fq%20web%20site/archive.htm>

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