Tag Archives: retention

Apr 17 2013

I’d like a burger, fries, and some customer service, please…

fast foodIs it too much to ask to get some consistently good customer service from a fast food restaurant?

Well, according to the article McDonald’s customer service push irritates some franchisees, yes, it is too much to ask. Apparently McDonald’s corporate has acknowledged a need to improve its customer service, but some franchisees aren’t too happy. It’s not that the franchisees don’t care about customer service (I’m making a BIG assumption here with some franchisees), but they are first and foremost concerned with profits. And profits are driven by product margins, volumes, and efficiencies, right?

Apparently, McDonald’s corporate is also pushing the Dollar Menu (lower margins) and promoting offerings (such as wraps) that are less efficient to produce at the franchise level.

This issue is actually a microcosm of what a high percentage of businesses have experienced in the last 20+ years with the advent of rapid technological advances. The improvements in technology and ease of market entry for competitors have driven down prices in many industries, negatively impacting gross margins. Also, as customer service have expanded from primarily phone and face-to-face to include social media, smart phones, and other communication vehicles, the process of delivering customer service has become more complex.

So I feel the pain of the McDonald’s franchisee…really…I do. But at some point they need to look at customer service more strategically as a source of retention, additional revenues, upsells, cross-sells, profitability, and long-term viability and growth. If they did, they wouldn’t be focused as much on gross margin concerns. Instead they’d be focused on those things which they control which truly drive long-term client retention and growth. They’d make their own decision to focus more on customer service.

What do you think about the franchisees’ concerns and the state of customer service in fast food restaurants?

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

Apr 11 2013

What’s the Score?

scoreboardWhen you’re competing with others, it’s easier to know if you’re winning if you’re keeping score. Seem obvious? When you’re playing an individual sport (like golf), it’s easier to know if you’re doing well if you have a goal. Also obvious?

Well here’s something that might not be as obvious. What is your key measure of success in customer service? How do you know (in measureable terms) if you’re winning, if you’re doing well?

In the article California community college students losing ground, the author notes “Statewide, 49.2 percent of the students who enrolled in 2006 to earn a certificate or transfer to a 4-year college did so within six years, compared with 52.3 percent of those who started college in 2002. Completion rates for black and Latino students were below 40 percent.

Bay Area schools reflected the statewide trends, with completion rates sliding at about two-thirds of the colleges.”

Essentially, the State of California has defined “winning” for community colleges as the percentage of “students who enroll and earn a certificate or transfer to a 4-year college within years.” They monitor performance via trends and stratify it by district, ethnicity, etc.

To improve performance, you need a goal. You need a target. You need something measureable, but then you need to understand the true drivers of that measure – the causes to the effect. Remember that metrics like these do not point out what problems exist; they point out the symptoms of problems, but then the community colleges must take the next step to identify root causes.

Customer Service is not a soft science, and Student Success is not an altruistic goal. Student Success has financial impact, economic development impact, documented business and social impact. Make it more tangible by creating the scorecards that measure success as real-time as possible at both the organizational and individual student level.

Define “winning.”

Mar 6 2013

Don’t Wait Until Losses Mount to Tell Fans You Care

emptyseatsIt’s even happening to the Boston Red Sox, and the fallout isn’t good.

Season ticket renewals are dropping fast this season (about 10% below last year), and the Red Sox are reacting with a massive amount of phone calls and offers to try to retain or resell lost season ticket holders (STHs). Leadership and a player are joining staff and interns to call STHs to try to get them to renew. In the article Many Red Sox season-ticket holders fleeing now, the writer interviews STHs and notes how the team didn’t contact several of them either prior to cancellation or afterward.

This rings of a situation where the organization wasn’t proactive in developing relationships, anticipating issues, and launching plans to address the expected concerns. With the team not being “likeable” according to some STHs, losses on the field mounting, and the secondary ticket market drying up, there are few things left which a professional sports team can control that impact renewals. But one of those controllable attributes is relationships with the fan base, and it appears the organization was too reactive, too incomplete, and too misguided to be effective.

In a comment posted on the article, one STH noted that he didn’t get a communication after canceling his tickets ($5,000 for 2 season tickets). However, he did get an e-mail sales offer to buy an upgrade to a suite at $28,000 per seat. So – in effect – the team didn’t care enough about the STH to try to retain, but they thought they could upsell the STH anyway? In a word…crazy. But it’s also all-to-typical in professional sports.

Season ticket retention involves relationship-building, and it requires a long-term mindset. You have to be able to gauge renewal likelihood long before the notices go out. And you have to have a plan to ensure you are contacting those most at-risk of non-renewal. In addition, upsells are easier if you have a strong relationship, if you know your STHs better.

So don’t just wait until the losses mount to tell fans you care. Make it a part of every season, every encounter, every survey, and every business-building strategy.

Interested in improving your STH retention and Fan Relations? See more at http://cssamerica.com/csssport.htm

Jan 9 2013

Beat the Worst at Customer Service

badCSThe American Consumer Satisfaction Index was released with its latest findings on customer satisfaction across multiple industries, but if we look at the 15 worst companies in America for customer service, we’re not looking at as many industries as you might think – largely social media, telecommunications, utilities, and the airlines came up short.

In fact, the article The 15 Worst Companies For Customer Service notes that the worst 14 are all from these four industries. Does this mean that customer service is just about the industry, not the company? No, it just suggests that companies in certain industries don’t prioritize customer service.

The Twitter, Facebook, LinkedIns of the world don’t see (or value) how customer service impacts their bottom line. Airlines care about retention, but they haven’t universally seen the financial link between customer service and retention/revenues. Utilities and Telecoms have a legacy of lack of competition, so why provide great customer service if the customer has nowhere to go?

So what’s the common thread? These individual companies don’t see, quantify, value (however you want to describe) the link between customer service and financial success. Either they don’t realize the financial impact of the business they’re losing, or they don’t understand the cost of poor service. Either way, they’re not seeing the link.

So if you care about customer service and you care about your organization, here’s the key point. Before you sing the praises of investing in, focusing on, and striving for great customer service, take the time to identify the true revenue being lost, costs being added, profitability being harmed by poor customer service.

To beat the worst at customer service, start by putting a dollar figure on the benefit of being great at customer service.

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

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

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

Dec 19 2012

What You Must Know to Keep Your Customers

Bad economies make companies truly focus on good customer service and the importance of customer retention. And when businesses try to retain more customers, they often fall prey to the desire to create a new benefit, institute a new loyalty program, or launch a new customer retention effort which is – in reality – just marketing gone bad.

So instead of suggesting you create some costly initiative, let’s start with creating a common understanding of the knowledge you need to have to best keep your customers:

  • Know why they would leave, and address it. This means, what do they expect from the experience? From the quality of the product or service? From your level of customer service?
  • Know who you want to keep most – and why (typically because of profitability or longer-term impact) – and target more of your efforts on these customers. No company has infinite resources with which to use the most personalized and labor/cost-intensive methods of keeping customers. So you have to know with whom you make the personal visit (high cost touch), and with whom you send the personalized e-mail (low cost touch).
  • Know who’s most at-risk of leaving, and create strategies to keep them. Target, target, target. Don’t spend the same time and energy and money keeping everyone, if you know a certain percentage of customers are almost certainly going to stay with you. And how will you know? Simply ask them, and also look at historical data to identify common characteristics of former customers.
  • Know how to become vital to their day-to-day lives or success. If they can’t efficiently get their job done without your software or research, if they can’t get their need met well without your product, if you are the supplier of something that’s imperative to their daily personal or professional lives, you have significant leverage in retention.
  • Know how to make it easy to become your customer…and more difficult to leave. Is the customer’s signup with your organization a piece of cake? Can a first time customer navigate your organization and your processes/policies as easy as a long-term customer? If so, you’re golden. On the back end of the relationship, you don’t want to make it impossible to leave (then you’re dealing with ethical concerns), but if the customer needs to replace what you provide, and that effort or time (in addition to the effort and time and cost of going to your competitor) are high, they may not make the move.

Know what you need to know to keep your customers.

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

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

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

Oct 24 2012

What’s Truly Unique for Fans in the Seats

I’ve been fortunate to have been a season ticket holder for a professional football team for 15+ years, so when my company consults with pro sports teams on season ticket holder (STH) retention and fan relations, I can talk as a strategist and researcher or…as a fan.

And I love talking as a fan. One key point that those in the sports industry need to remember is that the game day experience is – to many fans – far beyond what the smart phone experience or television experience could ever become.

As a fan, when I go to the game, there are certain aspects of the experience that I could never get on TV. I feel and am a part of the emotion of 70,000+ people (FYI – I’m a Carolina Panther STH). And even when that emotion is negative, it’s raw emotion, at times it’s yelling, at times it’s tense silence – but it’s almost always a roller coaster of emotion for 3+ hours.

And unlike the fan at home, if I want to watch a defensive end for a couple plays, I can focus just on him. If I see a wide receiver wide open 20 yards downfield, I can yell “He’s open! He’s open!” at the same time that a TV watcher is being shown the quarterback standing in the backfield. I can think to myself – “that pass is going to be intercepted” before the TV cameraman even focuses on the receiver and cornerback.

You see, I can see what I want to see. It’s in my hands (and my eyes) to focus on anything going on, whether in the field of play, on the sidelines, or in the stands. The customer has the power – a power that cannot be duplicated by television.

Television is a wonderful thing and is constantly expanding its capabilities, but these expansions of capabilities erode the gap between the game day experience and the home experience.

So to maintain gate receipts, STH retention, and enthusiasm for attending the games, game day professionals and pro sports teams need to address this key point – we need to leverage, improve, and market the two greatest aspects of being at the games: (1) Being a part of the experience with tens of thousands of other fans, and (2) Controlling one’s own perspective on the event.

To keep fans coming to the games, enhance the “group experience,” and find new ways to help fans gain more from their unique view of the event.

Interested in improving your team or club’s fan relations? See more at our new website! http://cssamerica.com/csssport.htm

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Oct 17 2012

Cloud and Customer Retention

Customer retention becomes a hotter topic every time the economy tanks. Most recently we noted in the early 2000s and starting in early 2009 that businesses were talking more about customer service, loyalty, and retention. That focus increased because the backlog of customers and the levels of disposable income greatly decrease in recessions, so the demand for products/services generally decreases.

As demand decreases, so does either volume or pricing, and thus begins the pinch on profitability. So organizations begin to realize something they forgot – that customer retention initiatives generally provide ROI multiple times that of acquisition initiatives, and to maximize profit, they have to redirect marketing dollars to retention.

With the advent of cloud computing, a new twist on customer retention can be taken. The cloud enables businesses to house the client’s data – using the cloud to hold and backup information so the client doesn’t have that responsibility. But to truly understand how the cloud really enables customer retention to grow, refer back to the 1990s book “The Discipline of Market Leaders.” In that book, the authors note that industry-leading companies typically master one of three key disciplines, Product Leadership, Operational Excellence, or Customer Intimacy.

Customer Intimacy focuses on generating loyalty by knowing your customers so well, having relationships so strong that your customers will stick with you. But don’t view “customer relationships” as some “soft” relationship, and this is where the cloud comes in. Build loyalty by having your products and services become vital to the day-to-day operations of your clients. Build loyalty by becoming integrated with your customers. Build loyalty by using the cloud, cloud computing in particular, or access to (or storage/backup of) client data to fill a need for your client.

To create more loyal clients and build your customer retention, find ways to use the cloud to get your clients housing their data on your systems. Use the Cloud for Customer Retention.

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

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

Oct 10 2012

Be Less Sexy to Build More Customer Loyalty

Loyalty – you get it from a dog by loving it, rescuing it from a shelter, or giving it a treat. Loyalty – you get it from employees by valuing them, being loyal to them, and building trust by doing what you said you’d do. Loyalty – you get it from a consumer by…what?

In the article Retail analysts: Do the math on loyalty cash, the discussion is about loyalty cards, or discounts on store credit cards, or credits that can be applied to the store. According to a Charlotte-based analyst, the reason to offer these types of rewards is evident – “The obvious benefit here for the retailer is the additional trip.”

So to answer the question above, loyalty – you get it from a consumer by…giving them a discount? Hmmm.

Not real creative stuff here; but the analysis that companies have to make before they embark on these “cash for the consumer” loyalty programs must be done by looking incrementally. What is the net increase in profitability through these programs? To calculate, you have to look at the revenue from the sale less the item’s cost (standard profit stuff) less the cost of the program. Then compare that to what the company would have generated in profit if it had done…I don’t know…nothing! Or maybe if it had improved between-sale communications with the client, or if it had improved customer service, or if it had improved service recovery processes, or if it had been more particular about what customer service-oriented characteristics it looks for in employees, or if it were better at motivating employees.

In other words, these types of loyalty programs should be a last resort. It’s like a price drop for a salesman to get a sale; it’s weak; it’s like having a sale but not wanting to call it a sale.

It might be harder and less sexy to improve performance, hiring practices, client relationship development, and customer service than to have a new cash-based loyalty program, but in the end customers evaluate businesses based on the Employee Attitudes, Service Processes, and Products/Services, and these loyalty programs often put too much focus on a small piece of the loyalty puzzle.

Sometimes it’s good to be less sexy to be more successful in building customer loyalty.

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

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

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

Sep 27 2012

ESPN Study – Rankings for Fan Relations – What it gets wrong

ESPN’s annual Ultimate Team Rankings study includes a Fan Relations component. ESPN has fans rate their team’s Fan Relations based on this definition: Openness and consideration toward fans by players, coaches and management. While ESPN is right in that some of general Fan Relations is impacted by the player/coaches/management (and – these days – the replacement referees), there’s so much more than these groups and their “openness and consideration” that truly impacts relationships with fans.

We’ve worked with clients in the NFL, NBA, NHL, and MLS among other leagues, and typically the work is focused on Fan Relations. But the people driving much of Fan Relations are on the business operations side. They’re the ones who sell, service season ticket holder (STH) accounts. They’re the ones who field issues from those generating the majority of the ticket revenue annually. They’re the ones whose impact is significant on the STHs, in particular. They are the ones who study the concerns, get down to the root causes, and identify solutions in tickets, benefits, game day operations, game entertainment, STH events, and more operational services. In other words, these staff drive much of the true relationships with the teams.

When you study Fan Relations, you have to study what truly drives retention and renewals, what truly builds relationships, what truly resolves issues. So you have to have fans evaluate these services and staff.

ESPN provides a lot of great research, but when it comes to gauging Fan Relations, they have to do a better job of targeting STHs and ensure they study what drives revenue and renewals.

Interested in improving your sport’s team Fan Relations? See more at our new website! http://cssamerica.com/csssport.htm

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

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Sep 26 2012

Student Retention Solution – The Four Cornerstones of Retention-based Research

Western Illinois University wants to retain more of its students. Particularly for first year students, a WGEM.com article notes that “More than a third of Western Illinois University’s freshman last year didn’t come back for their sophomore year.” So their answer is that they implemented a new mentoring program – Building Connections. This program taps into faculty and staff to volunteer to mentor incoming Freshmen.

Now whether the program is highly successful or not depends on many things; consider these questions. What’s in it long-term for the “volunteer” staff to fully participate? How well-trained are the staff? Do the students even want a faculty/staff mentor? About what will they be mentored?

But the most important question is “What’s the root cause of the problem?” The article notes that “over half of last year’s Freshman were first generation college students,” but that’s a fact, not necessarily a root cause. I hope that WIU is really digging into research to identify what are the core characteristics of those who do not return v. those who do. The research needs to be based on their historical data, the perceptions of their incoming Freshmen, their current students, and those that left. These are the Four Cornerstones of Retention-based Research.

In other words, I hope they use data to point them toward the right solutions.

When you’re dealing with retention issues, you most likely have a myriad of data on customers who were retained and those who weren’t. Use that as the starting to point to get at the true root cause.

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/

Interested in our Education Industry services? See more at http://cssamerica.com/cssed.htm