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Online Dispute Resolution And Customer Support

Online Dispute Resolution And Customer Support. ODR2011 Jo DeMars President, DeMars & Associates, Ltd. NetNeutrals.com www.netneutrals.com. DeMars & Associates, Ltd. Founded in 1988 Headquarters in Waukesha, WI Activities : Training, public policy forums,

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Online Dispute Resolution And Customer Support

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  1. Online Dispute Resolution And Customer Support ODR2011 Jo DeMars President, DeMars & Associates, Ltd. NetNeutrals.com www.netneutrals.com

  2. DeMars & Associates, Ltd. • Founded in 1988 • Headquarters in Waukesha, WI • Activities: Training, public policy forums, • consulting, and dispute resolution program • design and management • We provide services to the following • industries: •  Automotive  Homebuilding •  e-Commerce  Recreational Vehicles ODR and Customer Support

  3. Current Dispute Resolution Programs B2B Each program we design is custom tailored to meet the needs of the individual client ODR and Customer Support

  4. How NetNeutrals Emerged Online Dispute Resolution ODR and Customer Support

  5. Client List eBay, Inc. Monaco Coach Corporation National RV Holdings, Inc. Winnebago Industries Thor Industries Coachmen Recreational Vehicle Company Freightliner Trucks Workhorse Custom Chassis Ford Motor Company PayPal Professional Warranty Corporation Residential Warranty Corporation 2-10 Home Buyers Warranty Big Dog Motorcycles Porsche Cars North America ODR and Customer Support

  6. ODR and Customer Support:Why? • Fast: Reduces Time / Number of Contacts to Get Resolution • 2. Minimizes Negative Word of Mouth • 3. Reduces Anger and Hostility • 4. Provides Opportunity to Tailor Response to Individual Customer • Increase Positive Word of Mouth • Increase Intent to Repurchase/Return • 5. Offers Opportunity for Independent, Third Party • Mediation and Arbitration ODR and Customer Support

  7. Who Is the Customer Care Alliance?Member Companies DeMars & Associates, Ltd. Innovative Dispute Resolution The Customer Care Alliance in Europe ODR and Customer Support

  8. Who Is the Customer Care Alliance?Academic Partner ODR and Customer Support

  9. Increased customer satisfaction • Increased brand loyalty • Increased positive/decreased negative • word-of-mouth communications • Decreased customer care costs Service supremacy Product excellence Effective customer complaint management + + = Customer Care AllianceCustomer Satisfaction Brand Loyalty Formula Respond to individual customers Improved product/ service quality Identify sources of dissatisfaction Feedback on prevention Conduct root cause analysis ODR and Customer Support

  10. Spring, 2003 – First US National Customer Rage survey • Fall, 2003 – Channel Surfing survey (US) • Winter, 2003 – First UK Customer Rage survey • Spring, 2004 – Do Not Call survey (US) • November, 2004 – Second US National Customer Rage survey • January, 2005 – Second UK Customer Rage survey • October, 2005 – Second Do Not Call survey (US) • November, 2005 – Third US National Customer Rage survey • December, 2005 – The Art of an Apology survey (US) • June, 2006 – Conventional Wisdom of Customer Care survey (US) • April, 2007 – First US National Hispanic Customer Rage survey • Summer, 2007 – Fourth US National Customer Rage survey & Third UK Customer Rage survey In collaboration with Visit www.ccareall.org ODR and Customer Support

  11. 1976 = 32% (White House Study) 2003 = 45% (Customer Care Alliance Study) WSJ Article, Sept. 17, 2003 Percent of households who reported at least one “serious problem” in the past year with a product or service. ODR and Customer Support

  12. Impact of Ping-Ponging on Satisfaction with Action Taken When complaining, how many contacts did you make in an attempt to resolve this problem? Which of the following statements best describes how satisfied you were with the action taken to resolve your problem? % satisfied with action taken (Very Satisfied, Satisfied) (19%) (22%) (59%) ODR and Customer Support

  13. Impact of Response Time on Satisfaction with Action Taken Approximately how long did it take for your problem to be resolved? Which of the following statements best describes how satisfied you were with the action taken to resolve your problem? % satisfied with action taken (Satisfied, Very Satisfied) ODR and Customer Support

  14. Desired Customer Expectations Focus Group Perception 18 Customer 7 CAC 2 Customer CSR 2 CAC 1 4 3 6 1 8 9 Dlr. principal Dealership Dealership Service Service 5 Advisor Manager 18 SA/SM 10 14 12 11 11 16 13 Field CSM Fewer decision makers o 15 Clear accountability for 17 o resolving concerns Many decisions makers Expanded responsibilities o o Limited resolution accountability and capabilities o Insufficient capabilities/ support o Hand- offs : 1 Hand- offs : 5-7 Resolution Time: 1-2 Days Resolution Time: 3-4 Weeks Automotive Customer Handling ODR and Customer Support

  15. ODR and Customer Support:Why? • Fast: Reduces Time / Number of Contacts to Get Resolution • 2. Minimizes Negative Word of Mouth • 3. Reduces Anger and Hostility • 4. Provides Opportunity to Tailor Response to Individual Customer • Increase Positive Word of Mouth • Increase Intent to Repurchase/Return • 5. Offers Opportunity for Independent, Third Party • Mediation and Arbitration ODR and Customer Support

  16. Level of Satisfaction:No Action is Taken What customer got/ % satisfaction with action taken Satisfaction with action taken Nothing Very Satisfied/Satisfied 2% = Mollified = 18% Dissatisfied Very Dissatisfied = 79% Source: 2007 National Customer Rage survey ODR and Customer Support

  17. Level of Satisfaction: No ActionBut Non-Monetary Action is Included What customer got/ % satisfaction with action taken Thanks for business Apology Assurance Satisfaction with action taken Chance to vent Nothing Explanation Very Satisfied/Satisfied 38% 33% 33% 28% 2% 31% = Mollified = 53% 18% 58% 53% 52% 61% Dissatisfied Very Dissatisfied = 10% 79% 10% 20% 17% 6% Source: 2007 National Customer Rage survey ODR and Customer Support

  18. Complainant Management In The New Millennium: Necessary Evil or Marketing Asset? Based on “definitely” and “probably would recommend” offending company to a friend or colleague Satisfaction with action taken (% complainants) % Recommend company (top 2 boxes)* Average number told about problem Very SatisfiedSatisfied (18%) 60% 8.0 = Mollified (36%) 16% 12.0 = Dissatisfied Very Dissatisfied (47%) 18.5 4% = Source: Aggregated results of 2003-2007 National Customer Rage surveys ODR and Customer Support

  19. ODR and Customer Support:Why? • Fast: Reduces Time / Number of Contacts to Get Resolution • 2. Minimizes Negative Word of Mouth • 3. Reduces Anger and Hostility • 4. Provides Opportunity to Tailor Response to Individual Customer • Increase Positive Word of Mouth • Increase Intent to Repurchase/Return • 5. Offers Opportunity for Independent, Third Party • Mediation and Arbitration ODR and Customer Support

  20. % problem respondents “upset” about their most serious problem Customer Rage: How Upset Were You? Customer Rage ODR and Customer Support

  21. Complainants: Remedy They Wanted, What They Got * Based on problem respondents who complained about their most serious problem ODR and Customer Support

  22. Complainant Satisfaction:It’s Not a Typical Experience 60% of ALL complainants felt that they got “NOTHING” 69% of automotive complainants got “nothing” Source: 2007 National Customer Rage survey ODR and Customer Support

  23. Customer Rage: How Did You Express Your Rage? Source: 2007 National Customer Rage survey ODR and Customer Support

  24. You Can’t Always Get What You Want Psychological Currency X X X X X Source: 2007 National Customer Rage survey ODR and Customer Support

  25. The Customer Care Alliance ResearchKey Findings 5 Things Customers Want: 1. Tell their story 2. Explanation 3. Reassurance 4. Apology 5. Thanks for business. ODR and Customer Support

  26. ODR and Customer Support:Why? • Fast: Reduces Time / Number of Contacts to Get Resolution • 2. Minimizes Negative Word of Mouth • 3. Reduces Anger and Hostility • 4. Provides Opportunity to Tailor Response to Individual Customer • Increase Positive Word of Mouth • Increase Intent to Repurchase/Return • 5. Offers Opportunity for Independent, Third Party • Mediation and Arbitration ODR and Customer Support

  27. Complainant Satisfaction, Spanish-speaker % complainants 21% 1% 22% 13% 43% White House Study Source: First US National Hispanic Customer Rage survey & 2007 National Customer Rage survey * Response category not included in White House Study ODR and Customer Support

  28. Word of Mouth: Is it Really Created EqualSpanish-speakers + - Shared SOMEWHAT NEGATIVE Information Shared SOMEWHAT POSITIVE Information Satisfaction With Action Taken (% complainants) Shared VERY POSITIVEInformation Shared BALANCED Information Shared VERY NEGATIVE Information Very Satisfied Satisfied (19%) 43% 14% 0% 21% 21% = Mollified (26%) 20% 30% 20% 20% 10% = Dissatisfied Very Dissatisfied (55%) 18% 7% 18% 41% 16% = Source: First US National Hispanic Customer Rage survey, 2006 ODR and Customer Support

  29. Word of Mouth: Is It Really Created Equal?English-speakers - + Shared SOMEWHAT NEGATIVE Information Shared SOMEWHAT POSITIVE Information Satisfaction With Action Taken (% complainants) Shared VERY POSITIVEInformation Shared BALANCED Information Shared VERY NEGATIVE Information (TOP 2 BOXES)Satisfied (12%) 21% 25% 50% 0% 4% = (SECOND 2 BOXES) Mollified (33%) 1% 10% 34% 25% 29% = (BOTTOM 2 BOXES) Dissatisfied (55%) 4% 2% 16% 56% 22% = Source: 2007 National Customer Rage survey ODR and Customer Support

  30. Sales Benefits Of Making It Easy For Spanish-Speakers To Communicate In Spanish % respondents Source: First US National Hispanic Customer Rage survey, 2006 ODR and Customer Support

  31. % satisfied with action taken Can Money Buy You Love? Impact Of Monetary + Non-monetary Remedies On Contactor Satisfaction Money: $1 coupon toward next purchase Number of non-monetary remedies (explanation, vent, reassurance, apology, thanks) Source: CCMC Industry-specific Data ODR and Customer Support

  32. The Multi-channel Imperative Channel Use = Channel Preference Source: 2003 Channel Surfing Survey ODR and Customer Support

  33. Automated Telephone System Source:2003 Channel Surfing survey & http://www.gethuman.com/ ODR and Customer Support

  34. Email Personalization Helpfulness as a key driver • Resolution of all issues • Explanations • Referral assistance Source: 2005 Conventional Wisdom Survey & CCMC Industry-specific data ODR and Customer Support

  35. Automated Telephone System Critical success factors customer as co-producer • Have clarity of purpose • Maintain customer focus • Actively promote • Prevent/manage failures • Offer choices • Continuous improvement Source: 2005 Conventional Wisdom survey ODR and Customer Support

  36. ODR and Customer Support:Why? • Fast: Reduces Time / Number of Contacts to Get Resolution • 2. Minimizes Negative Word of Mouth • 3. Reduces Anger and Hostility • 4. Provides Opportunity to Tailor Response to Individual Customer • Increase Positive Word of Mouth • Increase Intent to Repurchase/Return • 5. Offers Opportunity for Independent, Third Party • Mediation and Arbitration ODR and Customer Support

  37. What Happens When Disputes Escalate Litigation Litigation Prevention Dispute Resolution CO$T WORKLOAD DISSATISFACTION Contact with Manufacturer Service Follow up Dealership Contact ODR and Customer Support

  38. Ease Of Complaining In Language of Choice (Spanish) % complainants • Top two reasons for difficulties • complaining in Spanish? • The option to communicate in Spanish was not provided • The person I spoke to did not demonstrate cultural sensitivity Result: More likely to file 3rd party complaints and take legal action Source: First US National Hispanic Customer Rage survey, 2006 ODR and Customer Support

  39. Some ODR Design Factors Managing Communication with the Parties Altering Your Approach Authenticating Users Security & Confidentiality ODR and Customer Support

  40. Development Researching & Talking with eBay eBay explained community’s concerns (extortion) eBay provided examples of negative feedback NN researched eBay, eBay Motors, Community, etc. ODR and Customer Support

  41. Things to Consider How much can parties submit? Should we allow attachments? Will a party be able to log in later to see the status of the claim? Should each party get the opportunity to rebut? How do we handle payment? What is a reasonable number of attempts to contact the respondent? How do we transfer the outcome to eBay? ODR and Customer Support

  42. Designing the Process Flow Based on our understanding of the needs and our expertise in dispute resolution program design, we designed the process flow below. ODR and Customer Support

  43. Designing the Appearance & Functionality of the Site Authenticating Users Handling Payment Gathering Data Communicating with the Parties Writing the Text Making the Site: User Friendly (pop ups) Visually Appealing Clear ODR and Customer Support

  44. ODR and Customer Support:Why? • Fast: Reduces Time / Number of Contacts to Get Resolution • 2. Minimizes Negative Word of Mouth • 3. Reduces Anger and Hostility • 4. Provides Opportunity to Tailor Response to Individual Customer • Increase Positive Word of Mouth • Increase Intent to Repurchase/Return • 5. Offers Opportunity for Independent, Third Party • Mediation and Arbitration ODR and Customer Support

  45. Wrapping Up and Q & A ODR and Customer Support

  46. For more information Jo DeMars NetNeutrals.com/DeMars & Associates, Ltd. jdemars@demarsassociates.com www.netneutral.com www.demarsassociates.com ODR and Customer Support

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