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Tag Archives: Dialog Direct

The Customer Rage Study: What It Means To You and Your Bottom Line

The following is a guest blog written by Mary Murcott, President of the Customer Experience Institute at Dialog Direct. Learn more about Dialog Direct by visiting their website.

There are only two ways to build a business: retain existing customers and acquire new ones. Great customer service and satisfaction are the key to both because most customers are acquired through positive word of mouth. So you would expect most companies to be fully focused on providing exceptional customer service and experiences, but that doesn’t seem to be the case.

Every two years, Dialog Direct partners with CCMC (customer care measurement & consulting), the W.P Carey School of Business at Arizona State University and the Center for Services Leadership to conduct the Customer Rage Study to gauge how customers view companies and how retailers and etailers can address areas of weakness that cause them to lose customers. The study identifies customer problems and addresses the nagging question:

Why are customer service and satisfaction still declining, despite their paramount importance and bottom line impact?

The study revealed that, in 2015, $202 billion were at risk due to customer problems with products/services. Key takeaways:

66% of customers with problems experienced rage

60% identified wasted time as the biggest damage

Only 35% were satisfied with their first contact

Only 14% got problem resolved upon first contact

It takes an average of 4.2 contacts to satisfy the complainant

Nearly one in four wants revenge

Fortunately…

If they become satisfied, 48% of customers would still recommend the brand

When providing both monetary and non-monetary remedies, satisfaction almost doubled from 37% to 73%

What are the implications? Continue reading

Uber-Channel Shifts: Lessons Learned From the 2015 Holiday Season – Part 2

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The following is a guest blog written by Sara Wright, Marketing Director, at Dialog Direct.

Last week we shared the first post in this two part series “Uber-Channel Shifts: Lessons Learned From the 2015 Holiday Season.” Get all caught up on the first two “lessons learned” by reading the first post in the series!

At Customer Response Summit Phoenix a one-of-a-kind panel involving customer experience executives from three of retail’s biggest competitors came together on the stage.  The panelists shared their firsthand experience in retail’s hottest trends, innovations, wins and lessons learned.

Here is what we learned:

3. Social Media Brings Delight and In-Store Insight

The speed of growth and change in social media, and the way that it is transforming the expectations of the customer, will continue to revolutionize the way retailers market, sell and communicate with their customers.

The most common way that retailers are engaging with their customers on social media is through two-way social media communication. The debate, however, is about who to prioritize the communication strategy around – influencers, detractors, or do you proactively reach out to all to delight? It depends on who you talk to, but the majority seem to prioritize reactive communication to the detractors or those that have an issue to resolve. One large online retailer, however, spoke up at the Customer Response Summit and stated that they believe in using social media to surprise and delight, not just react. Use vines, photos and video, not just text, to engage with a customer to create an over-the-top experience. Many retailers rely on an outsourced customer engagement partner to help monitor, engage and delight customers, especially during peak times or after hours. It has also been found that social media predictive technology can increase operational efficiencies by nearly 41% by prioritizing the most impactful conversations. Continue reading

Uber-Channel Shifts: Lessons Learned from the 2015 Holiday Season – Part 1

 

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The following is a guest blog written by Sara Wright, Marketing Director, at Dialog Direct.

The winter Customer Response Summit may have concluded, but the excitement generated by the event still lives on. Of course, when Execs In The Know is involved, we can all expect great connections, thought-provoking panels and lots of laughs, but it’s what we didn’t expect in Phoenix that is generating the most chatter – the convergence of three of retail’s biggest competitors together on one stage. This one-of-a-kind panel involving customer experience executives was full of energy, content and friendly, competitive jabs, as the panelists shared their firsthand experience in retail’s hottest trends, innovations, wins and lessons learned.

Here is what we learned:

1. “Click-and-Collect” Shopping Has Many Challenges and Opportunities

Appealing to the omnichannel shopper who bounces back and forth between online and in-store shopping, “click-and-collect” orders are enjoyed by 42% of online shoppers, according to Forrester Research. While the concept of buying online and picking up in-store seems easy, both retailers and consumers are experiencing both the joys and the pains that go along with this new initiative – especially during the 2015 holiday season.

The introduction of buying online and picking up in-store is very complex operationally, with one major retailer expressing challenges specifically around accuracy of available stock, customers buying the reserved item in-store before it is picked, and order queuing. While challenges are observed and expected, this new fulfillment model brings many exciting revenue growth opportunities. For one, this model brings online shoppers into the stores which, according to a survey by Deloitte, omnichannel shoppers were poised to spend about 75 percent more than store-only shoppers this season on gifts, entertaining and other purchases. Continue reading

10 Stats You Need to Know About Customer Rage!

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This is a guest blog written by Mary Murcott, President, Customer Experience Institute at Dialog Direct. Learn more about Dialog Direct on their website

Customers aren’t just frustrated, they are ENRAGED! In fact, 66% of people with a brand problem have experienced rage. How does Rage affect your business? What do customers expect to benefit from complaining, versus what they believe companies actually provide?  The 10 Customer Rage Study* stats below may surprise you.
Continue reading

#CRSummit 2015: 6 Things We Learned

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The following is a guest blog written by Sara Wright, Marketing Director at Dialog Direct. 

Seattle. The Emerald City – best known for its coffee, rain, grunge and … customer experiences? From September 28th through the 30th, the Hyatt Olive 8 in Seattle became the hub for connecting customer service professionals with their peers, creating engaging discussions around the trends, challenges and best practices related to the customer service industry. There was much to be gained at the Customer Response Summit, from conversations in the hallways to soaking in expertise at the panels and presentations. We combed through our notes to share our most valuable bits of information gained.

#1: Digital and Traditional Channels Need to Integrate Seamlessly

A strong and reoccurring theme throughout the Customer Response Summit was the consensus that a robust customer service strategy must assume a holistic online-offline perspective. With the proliferation of communication channels and devices, customers expect to be able to start an interaction in one channel and complete it in another.

In 2015, the customer service industry continues to think about ways to create customer-centric, omni-channel experiences. The end goal is to focus on the user experience and create one-to-one relationships with customers integrated across all their favorite channels – email, SMS, video, chat, social media, and phone, in-store and on desktops, mobiles, and tablets. For example, if a customer has been browsing your how-to videos on your FAQ page on topic A, and then turns to Facebook and asks a different question on topic B, the company should be able to bring together all that data and respond promptly with a concise and useful answer.

The customer expects you to know who they are, what they want, and how they last interacted with your brand. To help seamlessly integrate the multi-channel experience, allowing your brand to truly understand the customer, the use of a CRM was discussed. A CRM that captures data of all interactions will allow your phone agents to see social and online data and your social customer service agents to see phone dispositions, giving all of your team members access to the most up-to-date customer data. Continue reading

Addressing Customer Rage: Are You Doing The Right Things The Wrong Way?

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The following post is a guest blog written by Sara Wright, Marketing Director at Dialog Direct. For more information about Dialog Direct visit their website

As customer service professionals, we experience it every day: the dreaded customer complaint. There is no way around it and no channel that is off limits. If someone is unhappy, you are going to hear about it – or are you? Statistics show that for every customer who complains directly to you, there are 26 more unhappy customers that are remaining silent (1). Silent to you, that is. You can be sure they are telling their friends, family, and social media networks at an alarming rate. And, with social media, there is no stopping the wildfire.

With all of our knowledge about the effects of online reviews and social media, and the damage they can do to a brand, it should be assumed that corporations are stepping up their efforts to improve customer service. Is it working? According to Mary Jo Bitney, Executive Director of the Center for Services Leadership at Arizona State University, it doesn’t appear to be.

She and a team of researchers have completed a study showing 56 million American households experienced at least one problem as customers during the past 12 months. What’s more, the rate of “customer rage” appears to be growing rapidly. In the same study, conducted from 2004-2007, 52% of those with customer rage felt unsatisfied with how their complaint was handled. Customer rage dropped by 5% in 2011, showing that companies were getting better at seeking out and understanding complaints. But, two short years later, the percentage of customers unsatisfied with how their complaints were handled skyrocketed to 56%. Bitney says many companies are throwing money at the problem without fixing it (2). So, the questions stands: do we truly understand how to solve our customer problems? Continue reading