Monday, January 17, 2011

What Defines “Bad Service”?

There is a lot of competition for my business on my drive in to the office. I pass by 6 different coffee shops/restaurants that offer a drive thru service to sell me my coffee. That’s not including the 9 different mini-marts, of which 7 are attached to gas stations, that also provide freshly brewed coffee. All in all, on my half hour drive in, there are 15 different places that can earn my business.

I’ve been to the majority of these places, and had decent coffee at all of them. Four out of five mornings, I stop at the same one. The one time I don’t, it is usually because I need gas, and I don’t want to stop twice. How did the one business win my business?

They offer better service than the others. It’s that simple. When I drive up to order, they do not interrupt, and say, “Anything else?” while I’m halfway through my order. They let me finish talking. When i have completed my order, they repeat back the entire order, tell me the price, and ask me to pull up, please. When I arrive at the service window, they acknowledge my existence, even if my order is not ready yet. More times than not, the order is completed quickly. When it is taking a little longer, they tell me it will be a minute. Then, I am on my way, with a “Have a nice day!”

Did any of this sound like phenomenal service? If you look at it on the whole, they did nothing that I would consider above and beyond. They let me order without interruption. They were courteous. That’s really it. Does that mean that the other places offer bad service? I believe it depends on your definition of “Bad”.

To me, “Bad” service is any that leaves a bad impression. If you do not let me finish my sentence when I’m talking, I feel like you're not listening to anything I'm saying. If I drive up to the service window, and you look like you are avoiding me until the order is complete, you make me feel as though I am a leper. If you hand me my coffee and my change, and say, “Thanks” as the window is closing, I feel like I’m the one that provided you a service, not the other way around. You don’t have to spit in my coffee for it to be bad service. You don’t even have to be overtly rude for it to be bad service.

This is good news for small start-up businesses. You don’t have to be a superhero. You don’t have to be the most innovative, and re-create the wheel. You simply have to make sure that your level of service is better than your competition’s service.

I’m waiting for the phone call from the coffee shop willing to advertise, “We’ll let you finish talking before we ask, ‘Anything Else?’”

Thursday, January 13, 2011

Twitter - Your Social Media Defense

Social Media can be scary. I know we have had conversations with clients that frown on this new communication idea. Of our clients and prospective clients that do not use social media, the number one fear is that use of Social Media will provide customers with a complaint platform to voice and discuss problems with potential customers, which could drive away business.

I’m sure you know that if a tree falls in the woods, and you aren’t around to hear it, it makes a sound, right?

Likewise, if customers complain, and you don’t hear it, they are still complaining.

So listen for the complaints. Set up a tool to watch for any possible customer issues, and be aware of what is being said about you. Your first step is to publicly address any complaint. Use the customer’s name, and tell him or her that you want to help. Offer an opportunity to speak directly to this person. Don’t simply give a phone number to call. The customer has chosen to talk about this in an alternative manner, otherwise the complaint wouldn’t be on Twitter in the first place! A good example of a possible initial response to a complaint would be:

@angrycustomer, We are sorry for your problem, and we want to fix it. Can you DM me your email, so we can make it right?

The response is to the point, states you are sorry for the mistake, and that you want to fix the problem. What else can you say? Customers cannot DM (Direct Message) you unless you follow them, and unless they are following you. You always want to follow someone who is complaining about you. You want an email address, and any other contact information that you can get, but you should attempt to open the channel in a non public forum.

Understand – You are planning on fixing the problem, and you want the world to know that you are trying to fix the problem. You do not need the world to see every step you take to fix the issue. Get out of the public eye while you are fixing the problem. After the matter is resolved, you can go back to the public domain, and ask the customer if he or she is happy with the resolution, but do not complete the entire repair out in public, for everyone to watch.

Once the customer has contacted you in a private manner, you need to fix this problem as quickly as possible. Once again, the best way to handle this is to imagine the customer is in your establishment, not on the internet. How would you address this if it was happening in person?

Once the situation is resolved, try and engage the customer one last time privately. Since you handled the problem, gauge the customer’s temperature in the resolution, before going back to the public forum. If the customer seems completely happy, ask something like, “Are you now 100% satisfied?” If the customer is still a little warm under the collar, maybe, “I’m glad we could come to an arrangement. Thank you for your business!” would work better.

Monday, January 10, 2011

Groupon Tool Explained


I have read a lot of articles about Groupon. This blog post looks at Groupon in a more analytical way, since it seems every other article either sings their praises, or wishes they would burn for eternity.

For those that don’t know, Groupon is a social media tool that allows businesses to market to customers in an alternative way. The gist of Groupon is that customers sign up and connect their email, Twitter, or Facebook account to Groupon. When the customer signs up, they have to list their approximate location, of which there are around 150 cities available. First thing in the morning, Groupon contacts the customers and informs them of the “Deal of the Day”.

Although Groupon does try to have time sensitive ads, they cannot guarantee it. Therefore, do not try and line up a Groupon ad with a particular saving time period, (ie. Automotive groups could not guarantee that the Groupon promotion lines up with President’s Day weekend.)

Groupon writes the copy for the ad, and creates the links to your company’s sites, social media, etc. The reason for this is that they want the ad written in their voice, not yours. Although the goal is to bring customers into your store, they are not your customers. This is completely reasonable. Once they enter your store, they are your customers, and you can talk to them. Your company has to be concerned with two factors: how long is the offer valid for, and how many people have to take advantage of the Groupon for the offer to be valid.

Let's use an imaginary customer named Joe, buying a t-shirt from Sam’s T’s, as an example. Joe gets an email at 8:00 in the morning, telling him that there is 50% off of a particular shirt at Sam’s T’s. The shirt is regularly $25.00. Joe can buy a voucher to get this shirt for $12.50. Joe decides it’s a good deal, and so he clicks, “Buy deal.” He gives his money to Groupon via a PayPal account. He does not give the money to Sam’s T’s. One of two things happens at this point.

Not enough people take advantage of Sam’s T’s deal, and Joe is sent an email from Groupon, stating that the sale did not happen, and Joe never pays a dime.

OR

Enough people do take advantage of the deal. Joe’s credit card (checking account, etc.) is digitally billed for $12.50. Joe is not charged until after "the deal is on", meaning that enough followers have decided to take advantage of it for the sale to occur. He receives a voucher electronically for the shirt. He goes into the store, hands over his voucher, and walks away with his nice new shirt. Sam’s T’s gets a check in the mail from Groupon. They do not give Sam's T's the $12.50 that Joe paid. They keep a portion of that amount. Groupon doesn’t tell you the exact amount until you are ready to do business with them, so it is not possible for me to disclose their commission rate. However, most sources on the internet put the commission rate at 50%...

Groupon calls this a “Win Win”, since your company put together the sale and never had to pay anything out of pocket for the advertising. There is no upfront cost, but you are certainly discounting your product by more than whatever the sale amount is, due to the commission rate. Everyone is in business to make money, and I am not saying anything derogatory about this process; I just want you to be aware of it. It is also important to note that since only one “deal of the day” occurs, chances are that Groupon is going to promote the deal that makes Groupon the most money. If your sale will have less penetration than a different sale, yours may sit on the back burner. If you are not extremely aggressive, your ad will never be shared to the Groupon followers.

Some real thought needs to go into the math before you create a Groupon ad. For example, if you need to sell 100 products at 50% off before you are able to turn a profit, you had better set your minimum requirements above the 100 member mark. Unless, of course, you are trying to simply blow out a particular product to reduce your inventory, and are hoping to sell additional point of sale items. I would strongly recommend working with your advertising people before setting up a Groupon deal, since you have the potential to hurt your business by not fully understanding the goals of the particular sale.

Another factor to consider when creating your Groupon deal is how are you going to market your Groupon deal? Are you going to simply allow for current Groupon members, or are you going to leverage your other social media channels to get the word out farther? Groupon states, quite clearly, that there should be additional social media used to promote the sale. If your company is not fully comfortable in the world of social media, then additional conversations should occur beforehand. Again, talk with your advertising firm beforehand, to make sure you have the reach to make this campaign reaches its full potential.
 

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