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This presentation provides detailed examples of typical problem areas that result in customer dissatisfaction and attrition in both for profit and not-for-profit organizations. This presentation focuses on the Fulfillment and Customer Service organizations.
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Copyright @ 2014, Ron Ryan & Associates, LLC
FIXINGCUSTOMER SERVICE
(And Fulfillment)
A Presentation From Ron Ryan & Associates
Copyright @ 2014, Ron Ryan & Associates, LLC
Our FocusThis presentation targets rapidly growing organizations, both for-profit and not-for-profit, which are in the process of developing or improving their customer service function.
Copyright @ 2014, Ron Ryan & Associates, LLC
Fulfillment Process
Online Sales
Process
Sales Center
or Retail Store
Fulfillment
Repeat Purchas
e
Copyright @ 2014, Ron Ryan & Associates, LLC
Fulfillment Process
Online Sales
Process
Sales Center or
Retail StoreFulfillment Repeat
Purchase
Copyright @ 2014, Ron Ryan & Associates, LLC
Fulfillment Process
Online Sales
Process
Sales Center
or Retail Store
Fulfillment
Repeat Purchas
eCommonProblemAreas:
Copyright @ 2014, Ron Ryan & Associates, LLC
Fulfillment Process
Online Sales
Process
Sales Center or
Retail StoreFulfillment Repeat
Purchase
• Misleading or Inadequate Sales Descriptions• Confusing Delivery Process• Confusing Packaging, Paperwork, and Business Reply Envelopes• Unresponsive Customer Service or Support• Difficult or Complicated Returns Process• Inadequate Satisfaction Monitoring
CommonProblemAreas:
Copyright @ 2014, Ron Ryan & Associates, LLC
Misleading or Inadequate Sales Descriptions How customers
interpret product descriptions depends on their:AgeSexRegion of OrigenReligionIncome
Copyright @ 2014, Ron Ryan & Associates, LLC
Misleading or Inadequate Sales Descriptions
Make sure product descriptions match the both demographic and the product.
Copyright @ 2014, Ron Ryan & Associates, LLC
Misleading or Inadequate Sales Descriptions
If online, find ways of replicating in-store experience.
Copyright @ 2014, Ron Ryan & Associates, LLC
Misleading or Inadequate Sales Descriptions – Best Practice
Best practice example - Lands End – Product Detail
Copyright @ 2014, Ron Ryan & Associates, LLC
More Best Practices – Product Video Can Reduce Returns• One study found online
video instruction guides reduced: • Returns (Up to 30%),
and;• Customer support calls
(As much as 50%).
• Customers preferred videos to:• Calling 1-800 numbers
(84%); and • Using printed user guides
(95%).
See: http://www.invodo.com/wp-content/uploads/2014/04/Invodo_The_Video_Marketers_Guide_Engage_Convert_With_Video.pdf and http://www.internetretailer.com/2011/03/07/product-videos-raise-purchase-likelihood-stacks-and-stacks
Video viewers are 1.81x more likely to make a purchase than consumers who do not view video.
Copyright @ 2014, Ron Ryan & Associates, LLC
Misleading or Inadequate Sales Descriptions
Systematically review purchase, and payment terms, delivery methods and timing – no matter which channel you use.
Copyright @ 2014, Ron Ryan & Associates, LLC
Confusing Delivery Process
Manage delivery expectations at Point of Sale.
Copyright @ 2014, Ron Ryan & Associates, LLC
More On Delivery Process
Collaborate and integrate with shipping partners.
Copyright @ 2014, Ron Ryan & Associates, LLC
More On The Delivery Process
Delivery and installation experience can be a differentiator.
Copyright @ 2014, Ron Ryan & Associates, LLC
More On The Delivery Process
Develop a feedback loop to measure installation performance.
Copyright @ 2014, Ron Ryan & Associates, LLC
Confusing Packaging, Paperwork, and Business Reply Envelopes
Make Sure Paperwork And Signature Requirements are explained at Point of Sale
Copyright @ 2014, Ron Ryan & Associates, LLC
Best Practice – Getting Paperwork Back
Consider moving signature requirements online with e-signature process.
Copyright @ 2014, Ron Ryan & Associates, LLC
Unresponsive Customer Service or Support
Copyright @ 2014, Ron Ryan & Associates, LLC
Manage Post-sale Experience
• Provide 800 numbers in delivery materials
• Neutralize customer dissatisfaction with generous service and returns.
• But track returns carefully to make sure you are building loyalty, not being taken advantage of.
Copyright @ 2014, Ron Ryan & Associates, LLC
Typical Retail Return Rates By Merchandise CategoryCategory Low Return Rate (%) High Return Rate (%)
Business Products
1 5
Hard-Good Gifts 5 9
Home Decor 5 10
High-tech products 5 20
Casual Apparel 10 20
Shoes 10 30
Fitted Apparel 20 30
High Fashion Apparel
25 40
Source: F. Curtis Barry & Company in Using Logistics to Win in a Multi-Channel Retail World, White Paper, Federal Express, 2006.
Copyright @ 2014, Ron Ryan & Associates, LLC
Difficult or Complicated Returns Process
Online And Telesales Require Excellence In Managing Returns
http://insight.kellogg.northwestern.edu/article/why_you_should_accept_returns
Copyright @ 2014, Ron Ryan & Associates, LLC
Difficult or Complicated Returns Process
Process Needs to be Hassle Free
http://insight.kellogg.northwestern.edu/article/why_you_should_accept_returns
Copyright @ 2014, Ron Ryan & Associates, LLC
Difficult or Complicated Returns Process
Restocking Fees?
Test tradeoffs between near-term restocking cost,
retention, and
conversion impacts.
http://insight.kellogg.northwestern.edu/article/why_you_should_accept_returns
Copyright @ 2014, Ron Ryan & Associates, LLC
Inadequate Satisfaction Monitoring
A Complaint is a statement of dissatisfaction about any aspect of customer experience to anyone in your organization.
Copyright @ 2014, Ron Ryan & Associates, LLC
Summary Fixing fulfillment is about:
Listening to your customers.Measuring and testing to validate their
concerns.Taking action to address the issue.And tracking results.
Quite often it is easiest to work backwards from a complaint. Developing a robust complaint tracking
process is critical.
Copyright @ 2014, Ron Ryan & Associates, LLC
Other Deep Dive Presentations
Online Sales
Process
Call Center
Fulfillment
Repeat Purcha
se