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CRM Bookshelf

The Customer Differential

Nykamp Consulting founder and DIRECT contributor Melinda Nykamp has written a new book on implementing customer relationship management.

“The Customer Differential” (Anacom Books, New York) offers what Nykamp calls a “step-by-step” game plan for planting CRM at the core of a company’s operations. Chapter topics include how to change to a CRM business focus; how to develop metrics to support CRM; systems and technology; and how to measure the success of CRM initiatives.

In-depth case histories of how companies in different sectors — such as Clothes Unlimited, First Century Financial and Bluewater Technology Group — implemented CRM in their businesses round out the book.

Delivering Legendary Customer Service

“Delivering Legendary Customer Service” (The Oasis Press, Central Point, OR) looks at the factors that drive excellent customer service.

Author Richard Gallagher, a corporate trainer and former customer service manager, examines how to develop customer, team and personal skills to communicate with customers, offer quality service and handle difficult situations, as well as manage a service-driven team.

Of special interest to readers who deal directly with customers might be the section on the 10 worst things someone can say to a customer, including: “That isn’t my job,” “You’ll have to call us back,” “I have no idea” and — a favorite of anyone who has ever called an IT support line — “Did you read the manual?”

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Virtual Service in Bloom

A good customer service rep is an invaluable resource — even if she isn’t human. That’s what San Diego-based Proflowers.com learned when it introduced Emily, a virtual assistant created using Kana’s Advisor tool.

Emily went live on the flower and plant e-tailer’s Web site last May, and is used by about 10%-15% of all purchasers, according to Kin Lo, Proflowers’ senior manager of customer service. The virtual assistant allows targeting by walking customers through their floral purchase. Users fill in basic information — who the flowers are for, the occasion, the sentiment they want to express and the price point. Then Emily offers the chance to either see recommendations right away or give additional information (style of arrangement, colors to use, whether allergens or fragrance are of importance) for more customized suggestions.

According to Lo, it’s difficult for Proflowers to track the return on investment of specific customer service initiatives like Emily. “Her” work is judged on how many people use the virtual assistant, favorable feedback from customers and the overall success of the site.

When Proflowers first started taking orders in August 1998, Lo says Microsoft Outlook was used to manage incoming e-mail. But once the business started to take off and volume increased, this became admittedly inefficient. The site now uses Kana’s Response tool to manage, track and route e-mails to different categories, allowing Proflowers to analyze customer interactions and track performance of promotions. For example, the site may alter a promotion if it sees a lot of customers are having trouble understanding the wording. Likewise, it helps see quickly if a promotion is getting a great response.

During an average week, the number of customer service inquiries averages between 5,000 and 6,000 (75% by phone, 25% by e-mail). During the site’s busiest seasons — Thanksgiving to Christmas, Valentine’s Day and Mother’s Day — that can increase up to twentyfold. All e-mail inquiries are handled by live agents; the targeted turnaround time is to answer 80% of e-mails within eight hours. The site has a core customer service staff of about 20 to 25 people, and adds supplemental staff during busy periods.

Lo attributes the high volume of incoming customer service calls (compared to e-mail) to people wanting information about the service, or customers tracking orders. Recipients who see the 1-888-Freshest toll-free number on their packages are also more likely to pick up the phone and call if they have questions rather than go to the Web site. Proflowers has approximately 500,000 customers, and the average order is in the $40 to $50 range; 90% of orders are received online, 10% by phone.

For just under a year, Proflowers offered customers help via live text chat. While customers liked the service, the company found it took reps way too long to answer questions — sometimes up to 15 minutes.

“It wasn’t the most effective way to communicate,” says Lo, noting that customers who used the chat option often ended up following up by e-mail or phone with additional queries.

Proflowers plans to introduce a new version of live text messaging targeted to specific areas of the site, like check-out, where people frequently have questions.

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A Good Caffeine Buzz

A look at a recent PepsiCo Inc. promotion, recorded on Yahoo! Inc.’s “Buzz Index,” showed just what “buzz” can do for building brand and generating sales, according to Murray Gaylord, vice president of marketing for Yahoo!

In 1996, Pepsi launched Pepsi Stuff, a promotion where drinkers used codes in bottle caps to earn points to buy merchandise. The program was squashed in 1997 because of its high costs and lack of return on investment. (Pepsi was sending out 16 million, four-color, 12-page catalogs featuring the “stuff” participants could buy with their points.)

But realizing the program had merit, Pepsi engaged Yahoo! last year to transform the offline loyalty program online. A Web site was built (www.pepsistuff.com) where users could register, give their permission to receive correspondence and use their points to shop, Gaylord said.

The promotion, which ended in December, was layered with a multi-channel advertising campaign that included banner ads on Yahoo!, point-of-sale materials and television commercials.

The results? One million unique visitors in the first 30 days. More than 3 million users during the 120 days the promotion ran, with 68% of the respondents meeting Pepsi’s core target audience: people age 13 to 34. A 5% lift in volume vs. the previous year was also recorded as was an upturn in branding, Gaylord said.

Because of the buzz around the promotion, Yahoo!’s Buzz Index showed a large sustained lift in interest in Pepsi that lasted for months. The index tracks product interest by measuring 40 categories in user engagement with brands, products, people, technologies and broad concepts.

While the Internet has been overhyped as a marketing vehicle that can do anything, Gaylord said, it is the medium’s ability to track behavior that makes it the “magic bullet.”

Gaylord talked about the promotion at the Direct Marketing Association’s net.marketing Conference & Exhibition in Seattle last month.

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