©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 13 CUSTOMER SERVICE AND SUPPORT IN WEB SPACE

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 If Asked: Could You Easily Recount an Incidence of Poor Customer Service Excellent Customer Service Which Was Easier? Why?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. NOT GETTING BETTER-GETTING WORSE! 2011 Consumer Reports 64% Left Store Because of Poor Service; 67% Concluded CS Call Without Resolution 2011 ASU and CCM&C “Fewer Customers Satisfied” 2004 – 73% Experienced “Rage” 11% Higher Than 1 st Study l976 3

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CUSTOMER SERVICE > BUSINESS IMPACT 4

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. BIG NUMBERS 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GOOD SERVICE PAYS AT HARRAH’S NOW CAESAR’S ENTERTAINMENT Arm’s Length Relationships Required Management Bonuses for Improved CS If Profit Targets Met, All Employees Get Bonus Customer Satisfaction Surveys Track Behavior, Knowing Satisfaction Level Satisfaction Affects Level of Play at Harrah’s Program Continued After Rebranding 6

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GOOD SERVICE PAYS, ESPECIALLY IN DESIRABLE SEGMENTS 7

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GOOD SERVICE PAYS IN B2B MARKETS 8 Marketing FunctionProfit Impact, $1b Sales Customer Service$42 m Sales & Account Management$35 m Marketing$34 m

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. WHO ARE CS WINNERS? NOTE: ALL ARE B2C 9

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. WHO ARE B2B WINNERS? NOTE: VARIOUS ELEMENTS OF CRM MEASURED 10

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. “MODULAR BUILDINGS ON TIME & ON BUDGET” Customer Service Promises Include: “Quality Service – For Your Peace of Mind: “ A Proven Track Record of Delivering 99% of Out Modular Buildings on Time and on Budget” If We Fail to Meet Your Contract Start Date, 1 Week Free Rental for Every Late Day 11 Promises Show Belief in Ability to Deliver

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CONSUMERS DON’T GET WHAT THEY WANT NOTE: MANY OF TOP REMEDIES DON’T COST A CENT! 12 Gap is Huge!

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. STILL PREFER TRADITIONAL, HIGHER-COST CHANNELS 13

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Would Good Internet Customer Service Shift Preferences to Lower Cost Internet Channels?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CS STRATEGIES ARE EVOLVING 15

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. COST OF SELECTED CHANNELS 16 Service ChannelCost Per Interaction Call Center, Live Agent$9.00 Click-to-Call$7.75 Click –to-Chat$5.00 $2.50 Virtual Agent$1.00 Self-Service$ 0.10 Have You Used These, Other Channels? How Satisfied Were You?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SELF SERVICE HAS GREAT POTENTIAL ALTHOUGH SOME DEMOGRAPHICS MAY RESIST Self Service Preferred: Sudden Need Worked Better than Live Alternatives Did the Job Expected Not Happy with Self Service Technology Failure When Business Process Failed When Self-Service Poorly Designed When Customer Is/Feels Responsible 17

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXCELLENT CS PART OF CORPORATE DNA 18

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. BRITISH AIRWAYS PROCESS 1.Apologize and Take Ownership 2.Respond Quickly 3.Assure Customer Problem Being Resolved 4.Do It By Customer’s Preferred Channel Today, When Many Channels Available BA : for every £1 Invested, £2 Returned 19

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. E-GOV BENEFITS FROM GOOD CS New York State DMV 97% of Users Find Needed Info on Site Volume of Down 80% Fewer Phone Calls, Office Visits Repetitive Issues Handled Online Service Reps Deal With Difficult Problems 20

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. STRATEGIES FOR SERVICE EXCELLENCE CS Mentality Must Permeate Organization Providing Superior Service > Long Term Effort Business Processes Must Work for CS to Work “What Gets Measured Gets Managed” Technology Offers Channels, Ways to Improve Want Access to a Person if Necessary Improve Entire Customer Experience 21

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. STEPS FOR STRATEGIC CUSTOMER CARE 22 Invest In Technology Only After Understand Customers/Segments Their Needs

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23 Can Customer Service Be Delivered In Social Media?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 Differentiated CS Can Be Profitable.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CUSTOMER EXPERIENCE A BROADER ISSUE 25 The Perception Customers Have OF ALL THEIR INTERACTIONS With an Organization

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SIX LAWS OF CUSTOMER EXPERIENCE 1.Every Interaction Creates a Customer Reaction 2.People Instinctively Centered on Own Needs 3.Align Corporate Policies, Employee Actions 4.Unengaged Employees ≠ Engaged Customers 5.Employee Actions > Measure, Incent, Celebrate 6.“You Cannot Fake It.” 26

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 Why Does Exceptional Customer Service Create Sustainable Competitive Advantage?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARY Exceptional CS Has Positive Impact on Profits, Competitive Position B2B, B2C and eGov; Among Desirable Segments Customers Tend Not To Get Service Wanted Takes Time, Effort, Upfront Investment, Management Support Tend to Prefer Higher Cost Channels; Young Happier with Impersonal Anticipatory Service Desirable Self-Service Can Be Satisfactory Service an Organizational Issue; Technology Facilitates Superior Customer Experience = Ultimate Goal