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Customer Service & The Internet Gary W. Koutnik, MAI March 15, 2003.

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Presentation on theme: "Customer Service & The Internet Gary W. Koutnik, MAI March 15, 2003."— Presentation transcript:

1 Customer Service & The Internet Gary W. Koutnik, MAI March 15, 2003

2 Discussion Points Why Customer Service is so ImportantWhy Customer Service is so Important What Constitutes Good CS?What Constitutes Good CS? A good definitionA good definition How do you achieve good CS?How do you achieve good CS? The internet, how does it come into play?The internet, how does it come into play? ImplementationImplementation What is CRM?What is CRM? ExpectationsExpectations The cost of keeping a customerThe cost of keeping a customer SummarySummary End notesEnd notes

3 Why Customer Service is so Important Price is cut to the bonePrice is cut to the bone Your competition is tightYour competition is tight The supply chain is managedThe supply chain is managed Your customers know what your competition is up toYour customers know what your competition is up to If you dont take care of them- your competition willIf you dont take care of them- your competition will

4 What Constitutes Good Customer Service? This will vary by industry but there is a common threadThis will vary by industry but there is a common thread –Give the Customer What They Want –Give the Customer What They Need –Exceed Customers Expectations –Do it Better Than Any Other Firm –It is more of a customer perception Source: the aca group web site

5 So, how is customer service defined? You can be doing the best job in the world for your customer, but if theres something missing, if the customer is unhappy, then all your opinions about your performance are worthless. Great service is a matter of perception. Great service is what the customer thinks it is. Mark H. McCormack On Selling – Dove Books, 1996

6 How do you achieve good CS? 1.Target the right Customer. 1.Target the right Customer. 2.Own the customers total experience. 3.Streamline business processes that impact the customer. 4.Provide a 360º view of the customer relationship. 5.Let the customers help themselves. 6.Help customers do their jobs. 7.Deliver personalize service. 8.Foster community. Patricia Seybold Customers.com – Time Books, 1998

7 The internet, how does it come into play? The customer can access you 24/7The customer can access you 24/7 Software can tailor customer experiences individually and collectivelySoftware can tailor customer experiences individually and collectively Software can build a tremendous data baseSoftware can build a tremendous data base Your competition is using it-youd better get on boardYour competition is using it-youd better get on board If you provide bad service, a customer can set up an Ihateyourcompany.com web pageIf you provide bad service, a customer can set up an Ihateyourcompany.com web page

8 Implementation CRMCRM –Customer Relationship Management Software Applications What is CRM?What is CRM? –Simply stated, Customer Relationship Management (CRM) is about finding, getting, and retaining customers. Source: Real Market Website

9 Other Explanations of CRM? Consolidate Customer info from multiple channels.Consolidate Customer info from multiple channels. It allows a firm to interact more directly with customersIt allows a firm to interact more directly with customers It is a tool to get feedback from customerIt is a tool to get feedback from customer Its a sales and marketing toolIts a sales and marketing tool

10 What is the function of CRM? It allows the customer to handle problemsIt allows the customer to handle problems Gives all dept. a composite of purchasing/service historyGives all dept. a composite of purchasing/service history Coordinates interactions with all customers touch pointsCoordinates interactions with all customers touch points It analyzes data to find your most valuable customer & target services to themIt analyzes data to find your most valuable customer & target services to them

11 The big dilemma Off the Shelf?Off the Shelf? Custom Designed?Custom Designed? There are pros and cons to both approachesThere are pros and cons to both approaches HybridsHybrids

12 So youve decided on software- Now what? Customer-centric planning is the leading success predictors.Customer-centric planning is the leading success predictors. The real CRM project failure rate is 35%.The real CRM project failure rate is 35%. About 50% of projects are getting a payback within 18 months.About 50% of projects are getting a payback within 18 months. Source: CRM Guru Website

13 What can I expect? Happier customersHappier customers Fewer tech support callsFewer tech support calls Usable metrics from data miningUsable metrics from data mining Increased salesIncreased sales Higher profitsHigher profits

14 Best Implementation The Goal of CRM Is SalesThe Goal of CRM Is Sales Keep It SimpleKeep It Simple Keep An Eye On the Whole, But Develop In PiecesKeep An Eye On the Whole, But Develop In Pieces Seed The Database Before Rolling Out To SalesSeed The Database Before Rolling Out To Sales Source: internet weekSource: internet week

15 The cost of keeping a customer Question: Do you know the difference in the cost of keeping a customer as opposed to acquiring new ones? Answer: Acquiring a new customer cost from eight to ten times as much as keeping an existing customer.

16 The Real World Are there success stories in the real world?Are there success stories in the real world? YesYes The Aberdeen Group is an IT research and consulting company & they track themThe Aberdeen Group is an IT research and consulting company & they track them Mammoth Golf's SuccessMammoth Golf's Success

17 More Real World Lands EndLands End Wells Fargo BankWells Fargo Bank

18 Summary Customer service is probably the single biggest interaction between a firm and a customerCustomer service is probably the single biggest interaction between a firm and a customer It can make or break a companyIt can make or break a company Software and the internet can create a win-win scenarioSoftware and the internet can create a win-win scenario It may be time to redefine what customer service really isIt may be time to redefine what customer service really is

19 Summary Continued The company needs to be behind customer service 100%The company needs to be behind customer service 100% The personnel in the company need to be properly trainedThe personnel in the company need to be properly trained Keeping happy customers is better (and cheaper) than just acquiring new onesKeeping happy customers is better (and cheaper) than just acquiring new ones

20 Some Providers of the Software There are many more. Point your browser to Google and search for CRM software

21 Recommended Reading Customer Service on the Internet Jim Stern (John Wiley & Sons, Inc. 2000) Customers.com Patricia Seybold (Times Books, 1998) E-Service: 24 Ways to Keep Your Customers-When the Competition Is Just a Click Away Ron Zemke, Thomas K. Connellan, Tom Connellan Ron Zemke, Thomas K. Connellan, Tom Connellan (AMACOM, 2000)

22 Bibliography Jim Stern, Customer Service on the Internet John Wiley & Sons: 2000 Patricia Seybold, Customers.com Time Books: 1998 Mark H. McCormack, On Selling Dove Books: 1996 Doug Howardell, How To Improve Customer Service March 27, 2003 Doug Howardell, How To Improve Customer Service March 27, 2003

23 Bibliography Continued Realmarket, What is CRM? March 23, 2003 Realmarket, What is CRM? March 23, e.html e.html Sweeeny Group, Inc. CRM DEFINITION March 25, 2003 Sweeeny Group, Inc. CRM DEFINITION March 25, htmhttp://www.sweeneygroup.com/crm. htm Software Magazine, September 1999 Section: IT FRONTLINES

24 Bibliography Continued CRMguru.com The Blueprint for CRM Success: Outcomes of a comprehensive study identifying best practices leading to ROI and factors contributing to failure March 27, 2003 CRMguru.com The Blueprint for CRM Success: Outcomes of a comprehensive study identifying best practices leading to ROI and factors contributing to failure March 27, x.html x.html Joanna L. Krotz, Who's your best customer?Microsoft's Bcentral web site, March 15, 2003

25 Bibliography Continued Aberdeen Group, What Works: Ten Significant Implementations in Services Management, March 1, 2003 Aberdeen Group, What Works: Ten Significant Implementations in Services Management, March 1, hottopics/top10fsm/default.htm hottopics/top10fsm/default.htm Network Computing; May 31, 1999 Section: Business to Business: SEARCHING FOR ONLINE CUSTOMER SERVICE Network Computing; May 31, 1999 Section: Business to Business: SEARCHING FOR ONLINE CUSTOMER SERVICE

26 Bibliography Continued Richard Karpinski, Inside IBM s CRM Play, Internet Week 4 0ctober Dr. S. Thomas Foster, Jr., freequality archived thoughts," Date unknown 10 April 2003 Dr. S. Thomas Foster, Jr., freequality archived thoughts," Date unknown 10 April 2003


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