© 2008 Thomson, a part of the Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES CHAPTER 9 Customer Service and Support In Web Space

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 3 WHAT IS YOUR CUSTOMER SERVICE EXPERIENCE?

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 4 WHAT DO CUSTOMERS DO IN RESPONSE TO POOR SERVICE?

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 5 IMPACT OF POOR SERVICE

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 6 COMPLAINTS AND RESULTS Customers Complain—Or Not  If They Do Not Complain, They are Less Likely to Repurchase If Customers Complain  Their Problems are Resolved—Or Not If They Complain —Even If Their Problem is Not Resolved— THEY ARE MORE LIKELY TO REPURCHASE THAN IF THEY DO NOT COMPLAIN

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 7 FINANCIAL IMPACT OF GOOD SERVICE IMPORTANCE OF EMPLOYEE INCENTIVES

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 8 WHAT DO BUSINESS HAVE TO DO TO DELIVER EXCEPTIONAL SERVICE? B2B as well as B2C

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 9 Customers Want Timely Response Informative Content Real Person Product Information 24-Hour Availability One Study of Response 15% Acknowledged 39% Responded in 24 Hours 17% Were Complete and Accurace 6% Did Not Offer Service CUSTOMERS WANT/BUSINESSES DO

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 10 TWO PERSPECTIVES

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 11 RECENT STUDY

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 12 ACCEPT OTHER CHANNELS?

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 13 POWERED BY SERVICE

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 14 B2B IN CUSTOMER SERVICE ELITE?

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 15 FORCED TO CLOSE STORES ANYWAY

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 16 EVOLUTION OF CUSTOMER SERVICE STRATEGY

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 17 KEY CUSTOMER SERVICE CHANNELS Telephone Web-Based  Live Person - , Instant Messaging, Live Chat  Automated -FAQs, Knowledge Bases, Video

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 18 SAMPLE COSTS BY CHANNEL Telephone with Live Rep$9.50 by Live Rep$5.00 Live Chat$5.00 with Auto Support$2.50 IVR$1.10 Web Inquiry$.50 Automated $.25

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 19 SAMPLE CUSTOMER USE BY CHANNEL Telephone Call 77% IVR13% Web Self-Service 4% 4% Web Chat 2%

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 20 STRATEGIC IMPERATIVE To Migrate Customers To Lower-Cost Service Channels WITHOUT DECREASING SATISFACTION

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 21 STRATEGIC IMPERATIVE 2009 Deliver Outstanding CUSTOMER EXPERIENCE

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 22 SATISFACTION WITH SELF SERVICE Customers Prefer When Experience Sudden Need Self-Service Better Than Alternatives Fulfilled Their Needs Customers Dislike When Technology Fails Process Doesn’t Work Poor Service Design Cannot Understand Technology

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 23 SERVICE ON THE GO Figure 9-4

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 24 IS MOBILE NEXT?

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 25 CUSTOMER SERVICE > EXPERIENCE

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 26 SERVICE IN OTHER SPACES B2B Firms like Dow Chemical Make Good Use of Advanced Techniques To Serve Customers eGovernment is Serving Citizens

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 27 CUSTOMER SERVICE THEMES Customer Service Orientation Must Pervade All Departments Of An Enterprise Superior Customer Service Requires Long-Term Commitment (Management, Resources) Build Culture of Customer Service Using Quality Management Principles “What Gets Measured Gets Managed” Technology Can Help Improve Customer Service Customers Want Multiple Service Channels Customers Want The Option Of Human Contact Improve The Overall Customer Experience

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 28 IMPORTANT PRINCIPLE GIVE CUSTOMERS A CHOICE OF CUSTOMER SERVICE CHANNELS

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 29 STRATEGIC CUSTOMER CARE

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 30 CUSTOMER CARE TECHNOLOGIES Telephone Interactive Voice Response (IVR) Call Routing Call Recording Help Desk Tracking Internet Response Management (ERMS) Embedded Modules Wireless Push/Polite Push Streaming Media Agent Technology Voice Activitation

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 31 A VIRTUAL AGENT - ? Figure 9-6

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 32 EGOV IMPORTANT (SERVICES)

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 33 CUSTOMER SERVICE SOLUTIONS

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 34 DIY

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 35 What Is The Dark Side Of Differentiated Customer Service?

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 36 BUILDING ANTICIPATORY SERVICE Build Customer Scenarios Make Customer Service Pervasive  Fulfill Common Requests Before Asked  Make Service Available to Entire Value Chain Design Process for Seamless Escalation

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 37 SAMPLE ESCALATION PLAN Level 1 – FAQs Level 2 – Web-Based Self Help  , Diagnostic Routines, Knowledge Based Level 3 – Live Agent

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 38 BEYOND LOYALTY -- TOOLS Be Available 24/7 Variety of Channels/2-Way Dialog Tailor Method of Contact to Customer Listen and Learn Deliver Personalized Responses

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 39 ‘PEOPLE’ - ESSENTIAL SKILLS

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 40 TWO MORE IMPORTANT PRINCIPLES Different Levels of Customer Service (Cost Of Customer Contact) Based On Customer Lifetime Value Self-Service Has Great Appeal But It Must Work!

Internet Marketing: Integrating Online and Offline Strategies Copyright 2008 Atomic Dog/Thomson Publishing 41 SUMMARY Customer Care Is A Key Marketing Discipline  Customer Satisfaction/Loyalty, Enterprise Profit Need Business Processes, Customer Segments, Relevant Technology Customers Want Choice In How To Access Service Cost Per Customer Contact Varies By Channel Develop Service Strategies Based on CLV Be Sure Technologies Are Satisfiers, Not Dissatisfiers