Tag Archives: exit interview

Aug 15 2012

Do Some Root Cause Analysis on Customer Retention Issues

Here are comments from a Reuters article on Leap Wireless’ earnings issues:

  • Churn — or customer defection rate — rose to 4.4 percent from 4.2 percent a year earlier
  • Customer retention programs did not work out as well as expected and came at a higher-than-anticipated cost
  • Customer retention in the quarter was also hurt by reduced promotional activity.

Now, let’s do a little root cause analysis. To analyze these points, think “cause and effect.”

The first bullet is an effect – customer churn is up. But what was the cause? The second bullet says that customer retention programs didn’t work. So that was the cause? No, that wasn’t the root cause because the 3rd bullet says that customer retention was hurt by reduced promotional activity.

So reduced promotional activity was the root cause, correct? No, because promotional activity is needed due to something else missing.

So what’s the real root cause? They obviously have more work to do to determine the root cause(s); it’s unclear if they’ve surveyed exited clients. I’m uncertain if they’ve researched demographics and other characteristics of the customers, their usage patterns, their plans to determine key drivers of churn. It’s not clear if they survey clients to identify retention drivers and act on that intelligence.

What is clear is that the company is losing money and losing customers. As with any company in this situation, they need to systematically identify the root cause instead of jumping from symptom (i.e., lower profitability or retention) to solutions (increased promotions).

Do some root cause analysis on customer retention issues.

Interested in improving your company’s customer service? See more at our new website!
http://www.cssamerica.com/

Mar 7 2012

Don’t Fight the Fan

Don’t pick a fight with a customer. Don’t throw a baseball at them. Don’t kick a football in their direction. Don’t smack a slapshot over their head.

In the article Flyers touching third rail of fan relations, Phil Sheridan gives multiple examples of players chastising fans for complaining (about the play on the ice or a sign outside a stadium or performance on the field). The crux of the article is that it’s a big risk for a player to attack (verbally or otherwise) fans just because the fans are complaining. Even though many athletes don’t think fans understand what’s it’s like to be in their shoes, many athletes don’t understand the fan’s perspective, but they should be willing to learn.

When fans are passionate, they can impact a game. When they care for a team or club, they’ll spend money on them. And when fans impact a game or they spend money, they impact the organization and its players.

It’s the same thing with any other business. Customers have opinions, and if they care enough to voice those opinions, they’re conveying their passion. But they’re also giving you advice (on what to do differently or how to interact and engage them differently). The customers are sharing their expectations. And if customers care enough to complain, we need to care enough to encourage that dialogue and listen.

Studies have shown that customers are far more likely to stick with you if they complain than if they have an issue and don’t complain. They are far more like to stick with you if you address their issue than if you don’t.

Let the fan talk, vent, complain. Listen and learn. Encourage dialogue. Because if there’s dialogue, that means they’re engaged. When the dialogue stops, that’s when you should start to worry because that might indicate apathy and a lost customer.

Don’t shut down customer complaints.

If you liked this, you might like our podcast episode of “Stepping Up Service” called “Take a Football Approach to Culture Change”

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?”
http://www.amigreatat.com/

Interested in improving your company’s customer service? See more at our new website!
http://www.cssamerica.com/

Mar 8 2011

Where are all the fans?

There’s a reason why fan retention is so low among many sports teams, and it’s not just bad play on the field or a bad economy.

It’s about a core lack of understanding about what drives fan satisfaction and loyalty. Too many individuals who are charged with keeping up revenues are purely marketing or sales-driven. The key word is “purely.” Executives in these roles don’t often enough have training in client retention, understand a strategic view of retention, or think “long-term” when they map out retention plans.

Maybe it’s because MBA schools rarely teach customer service and customer retention principles. Maybe it’s because serving someone isn’t as sexy as closing a new deal. Maybe it’s because they don’t understand the true financial impact of retention strategies, research, and structures. Maybe it’s all of the above.

But if organizations want to be successful long-term…consistently…they need to understand external retention strategies and the internal structures and culture to drive those strategies.

They need to have dedicated leadership in charge of retention, incented on retention, trained on retention, and motivated by relationship-building and retention.

Rethink retention.

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?”
http://www.amigreatat.com/

Interested in improving your company’s customer service? See more at our new website!
http://www.cssamerica.com/

Jan 14 2011

“I Don’t Have Customers”

The meeting was going well, with a great deal of interaction between the 150+ people in attendance. Everyone was engaged and interested in learning and improving. The focus of the presentation was the results of a recent Mystery Shopping project that assessed various aspects of the organization’s performance from the customer’s perspective. The evaluation provided insight into the company’s web design, its financial processes, its sales and service functions, and its telephone systems among many other aspects of performance.

When the floor was opened to questions, one of the attendees said the following: “Listen. I make products. Why are we talking about this? I don’t have any customers.”

A loud gasp rippled through the audience. An argument ensued over whether that attendee had customers, who paid for the products, and how important service really is to this company. That conversation was a wake-up call to the organization.

We shouldn’t take for granted that everyone understands customer service is important. Based on this story, are we really sure that everyone believes that they even have customers?! When we’re trying to promote customer service within our organization, or get additional funding to retain more customers, or request resources to be more responsive in our service delivery, we’re often met with the answer “No.” We make assumptions as to why we hear “No,” and our assumptions often suggest that “we’re not getting our respect” or others “are pets of the executives.”

But in reality, we need to take on the responsibility to truly find out WHY in order to figure out HOW to overcome these obstacles. Start with the basics – who do the executives consider to be their customers? Is it important to the decision-makers to keep customers? What do the decision-makers consider to be the reasons why customers leave? Do those executives feel that people stay with a business for the same reason they start with a business?

That last question alone is a major red flag to any organization. It implies that advertising and marketing brought this customer in, so advertising and marketing are what will keep this customer as well.

Before you wonder why service isn’t “King” at your organization, start with the basics.

Ask those in-charge “Who’s Your Customer?”

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?”
http://www.amigreatat.com/

Interested in improving your company’s customer service? See more at our new website!
http://www.cssamerica.com/

Jan 25 2010

Knowledge-based Renewals

We are a data-driven society, aren’t we? Well, successful managers would like to lead us to believe that they operate based on data, but many managers operate based on gut feel and instincts.

Regardless of which way your management leans – decide by the data or decide by the gut – if you’re in a situation where you’re trying to renew an account or retain client business, and there are many clients to retain, then data has to come into play.

In professional sports, the issue of too many season ticket holders for the number of sales and service representatives is an ongoing concern. Here are some of the concepts that we suggest to pro sports teams but which could apply to virtually any business that has recurring customers. Consider these data-focused initiatives:

· Conduct Exit Interviews with former season-ticket holders to determine why they left so you can create profiles of those lost customers and apply those findings to your current season ticket holder (STH) base. This helps you to more clearly identify current season ticket holders who are at-risk of non-renewal. You may also be able to generate a good number of sales leads!

· Make In-Person Touches with 80%+ of First Year STHs. You use these conversations to not only develop rapport but also to gather intelligence on their expectations and satisfaction.

· Conduct an At-Risk Profiling Assessment of former season ticket holders to determine why they’ve left so that you can apply the criteria to your current season ticket holders.

· Conduct Season Ticket Holder Surveys asking about and gauging likelihood of renewals in the near future. This again helps you to target renewal efforts to those most likely to cancel.

These four important data gathering and analysis methods can help you get the renewal efforts to where they’re needed most because they allow you to target, target, target.

Learn from our approach to supporting our professional sports clients. Use data-driven concepts so your renewal and retention efforts won’t seem so daunting.

Interested in improving your company’s customer service? See more information at:
http://www.cssamerica.com/

Dec 8 2009

Retention – They’re Finally Getting It

If you would have spoken with 10 administrators 10 years ago in the world of higher education – from community colleges to universities – you could have easily spoken for 2 hours about their priorities without student retention ever being discussed.

My, how times have changed.

It seems that more and more often, retention is discussed whenever goal-setting for enrollment is the topic.  Retention rates are part of the performance dashboards.  Retention strategies are developed with some similar planning focus to marketing strategies.

And why is there all of this focus on retention?  Because these institutional leaders – just like smart businesspeople – understand that retention means dollars.  Retention means less effort in recruitment.  Retention means less hassle in dealing with student complaints and turnover.  Retention means less change to address.  Retention means a faster path to success.

Not all educational institutions get it, however, when it comes to retention.  An organization that truly gets it understands that successful retention strategies require a great deal of research with current students on retention drivers, likelihood to stay, preferences, and satisfaction levels.  Research is required on former students to determine the true loss reasons for controllable exits.  Strategies need to have a component to look at the relationship-building structures and processes which need to be put into place to develop relationships with students and to quickly identify students at-risk of leaving.

Strategies need to be created to address internal cultural issues and priorities that currently run counter to the goal of retention.  And measurement strategies need to be adopted to ensure that issues and solutions are identified early enough to be addressed.

An education-based retention strategy needs to have the concerted effort and focus that balances internal culture with external relationship building, where all the key impact drivers of retention are measured.

Do you have a truly comprehensive retention strategy?

Interested in improving your company’s customer service?  See more information at: 
http://www.cssamerica.com/

Aug 31 2009

What is Your Post-Exit Strategy?

Every era, professional sports teams lose season ticket holders.  These season ticket holders exit the organization because of a myriad of reasons.  With the economy like it has been over the last 18 months in particular, professional sports teams are losing season ticket holders at an alarming rate.  Many pro sports organizations deal with these issues by ramping up their advertising and marketing efforts.  Many others chalk up the losses to a bad economy, but few of these organizations really have a strategy targeted at these former season ticket holders.

These ticketholders have left; so what is your strategy post-exit?

Some of the best sales prospects your organization can have are former customers. You already have a great deal of intelligence on your former customers. You already know their likes and dislikes, their preferences, what’s most important to them, key demographic information, and their purchase history. Well, at least you should know all this information.

The two things you don’t know are two pieces of information that can make you a lot of money very quickly. The first piece of information is the specific reason or reasons why they left. This is where you avoid making broad assumptions about the season ticket holder base, and you look specifically at each one to determine why they left. You would probably be shocked to find out why the individual season ticket holders left even though you might be able to guess broadly about the major reasons why season ticket holders left. By knowing why they left, it helps in future conversations to help get them back.

The second piece of information that’s vital is their likelihood of future interest in your products and services, or as pro sports teams focus, on tickets. You have to know what level of interest they have and in what type of individual game ticket, a mini plan, or some form of full season plan. Without this information, you don’t know enough to have an efficient sales pitch with a former client.

So what is your post-exit strategy?

With our pro sports clients, it includes conducting Exit Interviews in a soft form with the season ticket holders to gather intelligence about these key pieces of information. And then to use the results of that research to both apply to current season ticket holders to best retain them but also — in the hopes of increasing revenue — to make targeted sales pitches at the former season ticket holders.

Your lost season ticket holder is one of your greatest sources of future revenue. Have a strategy for getting them back.

Interested in improving your company’s customer service?  See more information at: 
http://www.cssamerica.com/