Fixing Customer Service

Copyright @ 2014, Ron Ryan & Associates, LLC

FIXINGCUSTOMER SERVICE

(And Fulfillment)

A Presentation From Ron Ryan & Associates


Our FocusThis presentation targets rapidly growing organizations, both for-profit and not-for-profit, which are in the process of developing or improving their customer service function.


Fulfillment Process

Online Sales

Process

Sales Center

or Retail Store

Fulfillment

Repeat Purchas

e


Fulfillment Process

Online Sales

Process

Sales Center or

Retail StoreFulfillment Repeat

Purchase


Fulfillment Process

Online Sales

Process

Sales Center

or Retail Store

Fulfillment

Repeat Purchas

eCommonProblemAreas:


Fulfillment Process

Online Sales

Process

Sales Center or

Retail StoreFulfillment Repeat

Purchase

• Misleading or Inadequate Sales Descriptions• Confusing Delivery Process• Confusing Packaging, Paperwork, and Business Reply Envelopes• Unresponsive Customer Service or Support• Difficult or Complicated Returns Process• Inadequate Satisfaction Monitoring

CommonProblemAreas:


Misleading or Inadequate Sales Descriptions How customers

interpret product descriptions depends on their:AgeSexRegion of OrigenReligionIncome


Misleading or Inadequate Sales Descriptions

Make sure product descriptions match the both demographic and the product.



If online, find ways of replicating in-store experience.


Misleading or Inadequate Sales Descriptions – Best Practice

Best practice example - Lands End – Product Detail


More Best Practices – Product Video Can Reduce Returns• One study found online

video instruction guides reduced: • Returns (Up to 30%),

and;• Customer support calls

(As much as 50%).

• Customers preferred videos to:• Calling 1-800 numbers

(84%); and • Using printed user guides

(95%).

See: http://www.invodo.com/wp-content/uploads/2014/04/Invodo_The_Video_Marketers_Guide_Engage_Convert_With_Video.pdf and http://www.internetretailer.com/2011/03/07/product-videos-raise-purchase-likelihood-stacks-and-stacks

Video viewers are 1.81x more likely to make a purchase than consumers who do not view video.

http://www.invodo.com/wp-content/uploads/2014/04/Invodo_The_Video_Marketers_Guide_Engage_Convert_With_Video.pdf





http://www.internetretailer.com/2011/03/07/product-videos-raise-purchase-likelihood-stacks-and-stacks





Systematically review purchase, and payment terms, delivery methods and timing – no matter which channel you use.


Confusing Delivery Process

Manage delivery expectations at Point of Sale.


More On Delivery Process

Collaborate and integrate with shipping partners.


More On The Delivery Process

Delivery and installation experience can be a differentiator.


More On The Delivery Process

Develop a feedback loop to measure installation performance.


Confusing Packaging, Paperwork, and Business Reply Envelopes

Make Sure Paperwork And Signature Requirements are explained at Point of Sale


Best Practice – Getting Paperwork Back

Consider moving signature requirements online with e-signature process.


Unresponsive Customer Service or Support


Manage Post-sale Experience

• Provide 800 numbers in delivery materials

• Neutralize customer dissatisfaction with generous service and returns.

• But track returns carefully to make sure you are building loyalty, not being taken advantage of.


Typical Retail Return Rates By Merchandise CategoryCategory Low Return Rate (%) High Return Rate (%)

Business Products

1 5

Hard-Good Gifts 5 9

Home Decor 5 10

High-tech products 5 20

Casual Apparel 10 20

Shoes 10 30

Fitted Apparel 20 30

High Fashion Apparel

25 40

Source: F. Curtis Barry & Company in Using Logistics to Win in a Multi-Channel Retail World, White Paper, Federal Express, 2006.


Difficult or Complicated Returns Process

Online And Telesales Require Excellence In Managing Returns

http://insight.kellogg.northwestern.edu/article/why_you_should_accept_returns






Process Needs to be Hassle Free







Restocking Fees?

Test tradeoffs between near-term restocking cost,

retention, and

conversion impacts.






Inadequate Satisfaction Monitoring

A Complaint is a statement of dissatisfaction about any aspect of customer experience to anyone in your organization.


Summary Fixing fulfillment is about:

Listening to your customers.Measuring and testing to validate their

concerns.Taking action to address the issue.And tracking results.

Quite often it is easiest to work backwards from a complaint. Developing a robust complaint tracking

process is critical.


Other Deep Dive Presentations

Online Sales

Process

Call Center

Fulfillment

Repeat Purcha

se