Take Your Customer Service Dept From 'Cost Saving & Cost Reduction' To High Profit & Business Growth

The more communication I have with people involved in telephone service and sales, such as Contact/Call Centers and Customer Service Departments, the more amazed I become at the reluctance to create more sales and profit opportunities through better interaction with current customers, reactivation of lost accounts and new business acquisition.

Companies are forever seeking ways to cut costs and reduce staff - particularly so in Call/Contact Centers (turning so many into 'Call 'n' Wait' disaster zones) - they often fail to see what rewards they can achieve by using the following formula:

1 humble telephone + 1 skilled operator + 1 established sales system = HUGE PROFITS!

Here are twelve ideas that can dramatically improve your bottom line RESULTS build greater customer RELATIONSHIPS and earn you (a company of any size and industry) more REVENUE.

1. Build the loyalty of your current customers

A 'no brainer' right? Why is that so many customers cannot get through to you, when it suits them?

Why are you constantly offering free incentives and reduced prices to gain new business?

CRM is meant to be the new service elixir. Well it is worth nothing if you don't listen to your customers.

Here's an example - in the last six months or so, a metropolitan daily newspaper has offered ten-week subscriptions for $39.90 (I pay more and have subscribed for 20 years), contests (win wine if you subscribe, see a rock group in concert!) and give-aways to induce new subscribers. Me, I get some sort of special club membership with the odd discount or special offer. But hey, so do the new subscribers! Who's ahead?

2. Gain referrals from current customers

The cost of losing customers is almost incalculable. Add to that the people they tell about their bad experiences and the people they never refer to you.

Instead, offer your current customers a total strategy of satisfaction and benefits. Then, encourage them to tell others.

Don't reward these referred customers (but do give them total satisfaction and benefits). Do reward your current customer for their referral. Develop a system that will encourage customers to tell friends, family, their customers and associates about you and then say 'thank you' or offer them something of value for their efforts.

3. Add VALUE to every sale

Here is a really simple equation: If you give value - you get more sales.

That's it. If your people are trained to offer advice and information, educate customers, offer them creativity and innovation then your customers will buy more products and services, more often.

Even if your prices are slightly higher. This was the IBM way, back in the 60's and 70's with some great lessons to be learned. IBM charged the steepest prices in the industry but their service and support was legendary. The phrase 'no one ever got fired for buying IBM' originated way back then.

4. Turn an enquiry into a prospect

Then, turn that prospect into a customer. Then turn that customer into an advocate, one of your company's 'raving fans'.

All you need are trained people, a system and a monitoring and measuring plan. Simple? Yes it is, and like all things mentioned in this article, I will bet that some of your people excel at this and a number of them perform basic courtesies with callers - and that's it.

5. Create an upsell program

One becomes two. Two becomes four. Four becomes ... greater than the GDP of Argentina.

It is so simple, easy and effective and so few organisations employ this strategy. Many of your people don't do this because they think the additional cost will put the customer off. It doesn't. Not if the customer actually sees the benefit of greater quantity or improved quality.

6. Cross-sell at every opportunity

What can your people add on the original purchase? Extended warranty, on-site service, insurance, a savings if they purchase an additional item(s), a special offer or other options?

If everyone in your organisation upsold and cross-sold at every given opportunity, your sales would soar. I have witnessed increases of between 15-45% in companies where a simple upsell/cross-sell strategy was installed.

7. Negotiate on price

Don't just offer a discount or 'best price to you'. Let me reiterate, if you give value - you get more sales. Negotiate price. Train your people that by dropping price, they are giving away margin. So, if you offer a discount negotiate an upsell and/or cross sell. Package or bundle your offer to make it attractive and a genuine customer benefit.

8. Follow up

Every time your people give a quote, send a proposal or brochure out via fax, mail or e.mail, they should record a follow up timeframe.

Between one hour and three days. Everyone who requests information should be followed up by telephone. This leads to a higher close or conversion rate (I have witnessed 20-50%) or, if they have purchased elsewhere - your follow up call may be the commencement of a relationship ... or not. But you won't know if you don't follow up.

This rule should also be applied to complaint management. Most companies have no follow through with people who have complained.

9. Adopt a 'keep in touch' program

What can you do for your customers that will allow you to contact them on a planned, regular basis?

Special offers, new product or service introductions or ...? The best forms of 'keep in touch' are e.mail combined with a regular phone call.

But be warned - you should have a purpose for every call you make or email you send. Don't just bombard your customers (and prospects) with garbage.

10. Develop a systematic approach to lost customer reactivation

The longer you fail to make or maintain contact, the likelier you are to lose customers forever.

If you check the most recent contact vs previous contact frequency, you can detect a lost or about to be lost customer. Do something to regain their business.

This is the most costly part of your operation - the lost customer, the lost referral.

Do you have a lost customer reactivation plan?

11. Gain new customers

Why are there so few high quality telemarketing divisions in companies? Certainly, the 'T' word is considered dirty and grubby in some quarters and indeed it can be. However, where you have trained professionals, comprehensively developed objectives and strategies why wouldn't a well run telemarketing campaigns gain new business and new relationships for your organisation?

Quality telemarketing will generate leads, open up new business channels/market segments, build business with small, marginal and distance customers, give you real value (as a follow up) from exhibitions and seminars.

This is one of the most under utilised resources for business acquisition (and reactivation).

12. Develop and work your system

Success will come in all of the previously mentioned guidelines, tips and hints if you adopt a systematic approach. That is:

a) A sales and service oriented contact management system, based on a quality CRM package.

b) Well trained people who consistently add value to and gain value from every call they take or make.

c) Monitoring, Measuring and Reviewing each of the above and seeking continuous improvement both in contact management and people skills.

It is simple and what's more, it works. Use the power of the humble telephone (and quality people) wisely, and you will gain great RESULTS: Relationships and Revenue.

Kevin Cahalane, Sales & Service Momentum, is an international speaker, sales/customer service training professional and business strategy specialist. He is the publisher of popular e.zine ?S@SeMo? ? read by thousands of sales, service, marketing and training managers around the world.

Visit Kevin?s website today http://www.sasemo.com, subscribe to his free e.zine and receive the complimentary report: How to Continue Building Your Business ? Even When Times Get Tough.

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Telephone Customer Service - 10 Tips To Make It Great

How many times have you called a telephone customer service line and been told to wait several minutes. When you do manage to get through, you felt like your complaint wasn't taken seriously? Disappointing customer service is not new. Now apply the same thing to the business you own or are running. Are your customers and clients getting quality telephone service from you and your staff? Do you put your customers on hold for a long time? Are your phone customer service representatives able to answer customer questions and respond to complaints or issues in an appropriate and timely manner? Even if you are primarily conducting your transactions and communications with customers and clients online, it is still important to have a quality phone customer service in place for most businesses. There are times when issues are much easier and more quickly resolved on the phone rather than online using e-mail, instant messaging or live chat programs.

Providing quality telephone customer service is essential to the success of any business. A lot of companies boast of having great customer service, but few actually do. Below are some ways you can improve and provide quality phone service to your customers. The overall principles of these points apply whether you manage an offline business or an eBiz.

1. Be friendly on the phone. Don't be rude with your customers and make them feel like they're wasting your time.

2. Don't put a customer on hold without asking them if doing so is all right. No customer wants to hear, "Please hold" as soon as their call gets through, even before they can say hello. It gives the impression that their call is less important than another call you are taking.

3. Even though customers can't see you, pay attention to how you conduct yourself over the phone. Be professional. The customer on the other end of the line can hear you if you're chewing, smoking, or drinking while on call.

4. Listen attentively to the customer. Don't make them repeat themselves. Let the customer finish what they have to say instead of interrupting him. Don't give your customers the impression that you are incompetent. It's not good if a customer has to repeat his problem three times to three different customer service representative before it can get resolved.

5. Again, customers can't see you or your telephone customer service staff on the phone, but they can detect if you are happy to hear from them. Thus, try to present a positive attitude when answering every call. It pays to smile too when answering a call because the customer can "hear" your smile over the phone.

6. If a customer is angry or upset, make them know that you understand their situation. Listen to them first before making any comments. When they're done, begin with something like, "I'm sorry to hear that..." or "I apologize if..." and then come up with ways to resolve the issue.

7. When you are talking to a customer about your policies and guidelines, do so in a clear and precise manner. Never assume they know what you mean at any time. It would help to stop every few minutes and ask the customer if everything is clear to him so far.

8. Always follow through with what you tell the customer you're going to do. For instance, if you say to a complaining customer that you'll call them back after two hours after consulting with your manager, call the customer back within two hours. The customer may have been angry about a prior service he received, but he will also remember that you did do what you promised to him over the phone.

9. If you are unable to resolve an issue with a customer, inform the customer that you are going to transfer him to another person who will be able to help him better. If a customer thinks that you are what's causing the problem or if he requests to talk to someone else, don't take this personally. Tell the customer that you can either transfer his call to another person or that someone will call him in an hour or so.

10. Have a telephone customer service plan that is easy to follow. You won't see good results when members of your staff have a hard time following a complicated phone customer service plan.

Successful businesses are those with an effective telephone customer service in place. These businesses are able to better manage customer expectations, deal with emotional customers and anticipate problems and issues from customers. Train your staff to anticipate the needs of your customers and resolve issues as quickly as possible. This is important whether you provide face-to-face, online or telephone customer service.

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