How exciting it is for direct marketers to consummate real business over the phone and the Internet! How sad it is that customer service and support, which the phone and the Internet supposedly enhance, too often go by the boards, leaving customers in a world of hype but precious little responsiveness.
In the consumer realm, for example, one shopper ordered tapes from a video catalog. The phone-based sales rep cheerfully accepted her order and promised delivery in 6 to 10 days. After 12 days, she called the same 800 number and was informed they had “no information” about her order. She was directed to a non-toll-free number which operated on West Coast time only and did not accept messages. When the consumer called the next day, the “alleged” service rep advised her that the sales people routinely understate the actual 10 to 18 day delivery time because “they have nothing to do with us.”
B-to-B customers tell similar stories, especially when describing interactions with technology and telecommunications companies. For example, AT&T’s business account statements include this printed line: “Thank you for using AT&T, where every customer is important.” Until you try to have a conversation with them. To get to a live person, you must endure a multi-level, ultra-annoying call distribution tree. Sometimes, that person can’t or won’t help you. When pressed to do so, they revert to the officiousness for which “the phone company” of Ernestine-the-operator (the Lily Tomlin character) was justifiably infamous.
But wait a minute! Aren’t seminar presenters trumpeting one-to-one marketing and caring about customers? Aren’t CEOs everywhere talking about “share-of-account” and increasing “lifetime value”? Aren’t marketers creating every manner of retention and loyalty program? What’s going on?
There are several reasons for the disparity between sales promises and service realities; some tactical and practical, a couple strategic, and regrettably, a “dark side” as well. Fortunately, we have remedies!
Tactical Reasons Despite all the “relationship” talk, lots of selling remains focused on transactions rather than on relationships. Service is supposed to fix specific problems, repair relationships and make us happy. But sales may be pre-damaging the relationship by emphasizing the transaction over the relationship in the first place.
Organizationally, sales reps work for sales. Sales is a profit center. Service reps work for operations, administration, or human resources (a.k.a. the Department of Business Prevention). Normally, service is a cost center. These groups, their managers and their budgets are often at odds-and customers suffer for it.
Operationally, sales is different from service. At inbound sales groups, “operators are standing by!” They’re ready for you because their typical inbound transaction lasts only a short time and is administrative in nature. In service, you usually don’t get a live person right away. You get an automatic call distributor routing the calls. Because the calls are longer, you must often wait. When an agent does answer, he or she is playing “defense,” possibly with emotional baggage from the last call.
In direct mail, on the phone and online, many marketers still focus on campaigns and promotions rather than on accounts. So when a customer has a service or support issue, sales people can’t help because they know about the specific campaign or promotion but not the account history. Hence the mismatch between the CEO’s long-term perspective and the “street-level” sales pitch, and between consumers’ sales and service experiences.
Strategic Reasons The biggest offense here by far is over-reliance on technology. Sales and service execs are succumbing to the siren song of customer-relationship-management vendors. These usually well-intentioned but hype-prone folk promise “account continuity” and “service enhancements” if we default our human interactions to their gizmos and software. But if we do so, two really bad things happen. First, we get arrogant about the technology. We start hearing reps say things like, “If they have a problem it must be their fault” or “If they order wrong, it’s because they don’t understand the technology.” Second, we start viewing the Internet and e-business as a panacea, a way to enhance revenues (sales) and cut costs (service). If we achieve those goals at the expense of customers and their satisfaction, the achievement is worse than moot. It’s business suicide!
It’s a matter of self-service vs. fulfilled service. Throughout the world, we have competing service ethics. Middle-aged and older citizens remember when service was provided along with the sale and continued long thereafter. Younger people have grown up with, and may prefer, short-term self-service, enabled by technology. Marketers concerned about their “ease of doing business” often have a tough, expensive time satisfying both segments.
The Dark Side Some companies don’t like their customers. The worst act with contempt during sales and repudiate service entirely. These include the “midnight advertising” crooks, the creators of nomadic boiler-rooms preying on the elderly, and the toner spammers and scammers prying for your copier serial number. These are the callous people and organizations who leverage customers’ happy expectations during sales and set up customers for the disappointing reality afterwards.
Remedies The good news is that it’s straightforward, if not entirely easy or cheap, to reconcile good service with profitable selling. We’ll consider it a “given” you’re not a “dark side” player. So I’ll offer these strategic recommendations:
* Make sure any technology you buy will facilitate what you want your sales and service to be, rather than define what it will be. Find automation providers whose business models match, or at least enable, your own.
* Whether consumer or B-to-B, consider the present and next-generation age of your marketplace. Provide for sales and service processes that enable your customers to do business with your company the way they like.
On the tactical side:
* Make service a part of sales. Assign all sales people a stint in service, and apprentice your service people in sales.
* Make your service enterprise a profit center by measuring and reporting the value per contact:
1. Cumulative earnings each account/longevity=Annual account value (AAV)
2. Midpoint of AAV=Median account value (MAV)
3. MAV/number of annual contacts per account=Value per contact
If the value per contact is more than the cost per contact, you’ve succeeded.
* Conduct marketing and sales campaigns within the context of account relationship management rather than separate from it. And in planning every marketing and sales campaign, provide for and fund the service component.
* Finally, recognize that both selling and servicing require a judicious blend of artistry and production. The profits are in the balance. May you prosper!
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