Showing posts with label Customer Service. Show all posts
Showing posts with label Customer Service. Show all posts

Sunday, May 8, 2022

Service Marketing Mix 7Ps

The Marketing Mix refers to several areas of focus to be managed in harmonious conjunction with each other in order to appropriately attract and keep a brand's target market. For instance, if you changed your brand from a budget to luxury offering, each of the areas of focus will need to be managed appropriately. Most people are aware of the 4Ps that include the product, price, place and promotion. However, these 4Ps are inadequate alone when dealing with services. For this reason, the marketing mix for services (and digital information products) is extended to also include 3 other Ps, process, people and physical evidence. This post will not focus on the 4Ps. Rather, it will discuss the additional 3 Ps. Furthermore, since the mix of Ps is very production-based, I will also discuss it from a customer-centric approach as Cs (versus only Ps) as follows.

1 - Product - Customer solution
2 - Price - Cost to customer
3 - Promotion - Communication with customer
4 - Place - Convenience for customer




What are services?
Services refer to intangible deliverables. In that case, they are inseparable from their production and then are entirely perishable in that they can not be extended after their delivery. Services also do not involve the transfer of ownership. They are also heterogenous, ie they can not be mass produced. Example(s):
  • Airline flights (core service) and extended services like in-flight movies, snacks and so on
  • Amusement park rides (core services) along with extended services like restaurants.
  • consulting services (core services) with extended services like free courier of original documents 
  • education services
  • health care services
  • banking services
  • Legal services
  • Logistics
BTW. Rest assured that it is normal for marketers to find some overlapping with the service Ps and product Ps. For instance, some of the service Ps include elements from the 4Ps.

Physical evidence (or confirmation of value) of the service is the collection of signals. Do you remember how the 4Ps can be configured to trigger target audiences? For instance, the price value can signal a level of quality or be presented to psychologically trigger target audiences. Physical evidence can do the same. 

Physical evidence is anything from which your client will gather an impression of your service. The most obvious forms of evidence of what the client can expect include content you provide about your service. However, remember that evidence is from the client's perspective and can be extrinsically related to your service. For instance, a lawyer's dirty parking lot may be perceived by leads as evidence that that lawyer is disorganized and likely incompetent. Needless to say, recognizing this, a marketer can configure all of the physical evidence to signal appropriately to the target. This P is a reminder that perceptions are very important in marketing. So, in the absence of a physical product, physical evidence signals your value proposition.

In short, physical evidence can be described as signals that help, on one hand; marketers to communicate and render the service and, on the other; customers to understand and access the service. These signals are described as existing in the 
1) 'servicescape' and 
2) 'tangibles'. 

Marketers can therefore use physical evidence in several ways that include new customer acquisitiontop of sales funnel marketing and evangelism. Marketers can also use physical evidence for analysis (of the customer perceived value and how the customer acts in response to the service).

A servicecape refers to the physical environment where services are delivered and or consumed. It includes functions, ambient conditions, symbols, signage and artefacts. Common tangibles include promotional elements like brochures; correspondence elements like the letterhead; equipment; staff uniforms; online presence like websites, apps and so on.

Example(s):

  • Hotel room with expensive fixtures signals very differently to another with cheap fixtures. Needless to say, either type of fixtures should be consistent with the value proposition and the other Ps (servicescape)
  • A restaurant with a clean bathroom encourages customers to assume that the food is prepared in a clean environment, even if that is not the case. (servicescape)
  • Layout of MacDonald's production line that revolutionized the way fast food was prepared and promised efficiency (servicecape)
  • amusement park facility (servicecape. See video analysis presentation of the Universal Orlando Resort servicecape) 
  • limousine pickup (servicescape)
  • check-in desk (servicescape)
  • brochures, signage and product packaging printed with a high end finish instils confidence in clients (servicecape)
  • Past customer reviews, especially as they relate to your unique value proposition (UVP)  and or brand positioning (tangibles)
  • Websites and any promotional branding elements like the logo, packaging or any other aspect of the brand personality. (tangibles)
  • When using the services of DHL or FedEx, you expect to have free access to tracking services. (tangibles)

Process (or coordination) refers to the procedures, mechanisms and flow of activities when the business and target market interact. To master this P, learn more about Business Process Management (BPM). These processes are usually outlined within a Standard Operating Procedures (SOP) guide. Sometimes, the analysis of processes are even done visually through 'service blueprinting'. Example(s):
  • your business' sales funnel accounts for the interaction from the time a lead makes the first call to book a flight until retrieving her baggage.
Edward Shehab's YouTube video: 'How to analyze business processes and flowcharts using the 3Rs process'

Robot Riedinger's YouTube video 'Introduction to creating flowcharts'

Computer Science Tutorials' YouTube video 'Introduction to flowcharts'

Computer Science Tutorials' YouTube video 'What makes a successful workflow algorithm'  (An algorithm is a list of steps in a process in their correct order).


People refer to the individuals, usually those who personally and directly deliver your brand's services to customers. Typically, this refers to employees, subcontractors and even evangelizing customers. Marketers often categorize people according to levels (high to low) of customer contact as it relates to the amount of time required for the interaction and communication, highly skilled people, non-professional people and support / no-contact personnel.

  • hotel staff (high-contact people)
  • customer service call center staff (low-contact people)
  • lawyer (professional people)
  • messenger (non-technical / professional people)
  • restaurant chef, laboratory technician (no-contact people)
  • Some key aspects of managing this aspect of the marketing mix include interviewingselecting and onboarding new staff.


CONTENT RELATED TO THE 7Ps OF MARKETING MIX FOR SERVICES

 

Case study: Servicecape MacDonald

Thursday, October 11, 2018

Resolve Customer Complaints to Extend CLV Customer Lifetime Value

In earlier discussions, we spoke of how well crafted customer experience design contributes considerably to business success. They are a proactive means of preventing problems. However, things can and may still go wrong. This  customer service post discusses elements to incorporate into your customer service response to remedy the situation and boost customer retention for extended customer lifetime value (CLV).

Consider customer complaints as valid concerns with potential opportunity

In order for this to work very well, it is imperative to create a work atmosphere where mistakes can be made and learnt from without undue employee blame and shame. Customer complaints can become opportunities to improve your operations. Swiftly request customer angry feedback. Consider even sharing some of these incidents for training employees (including new onboarding employees) when they train in the related task. In some cases, capitalizing on resolving angry feedback may provide a source of competitive advantage. 

See how Everest Ice & Water, an ice vending company responds so well to questions and distrust from misinformed viewers that they make their brand even more trustworthy. See an example of this in the comments section of one of their videos. This obviously requires someone who is very knowledgeable about the product and brand and is able to keep up with the demands of social media content management.

Viewer: 
I am very familiar with this business and all other machines on the market. Ask this guy why his great machine has had 4 different names on it in the last 7 years, hmmmm. Great very informative video, however any machine made from plastic will not last outside in all types of weather conditions. # Bag Of Ice!

Everest Ice & Water:
Let's talk about some misconceptions about Everest. First, our machine isn't made with plastic. It is made with powder-coated steel. It's designed to handle 6,000 hours of salt spray so these machines can last in almost any condition.
Secondly, Everest has been in business since 2016 so we haven't gone under 4 different names in the last 7 years as you say. However, the confusion can be from other customers white labeling their machines with their custom branding.


Empathize, validate and apologize

Emotionally engage customers. Specifically, empathy, a validating comment and apology can help to diffuse anger really engage customers, especially if you also succeed in the other tips. Regarding apologies, nothing seems to be likely insincere more than someone giving an apology that, in the same breath, subtly invalidates your pain like, 'I'm sorry IF I did X'. Even if the customer's 'concern' appears an unreasonable 'complaint', acknowledge their dissatisfaction, even if to say, 'I am sorry that you are not happy with our service.' Although not entirely an apology, it certainly diffuses the situation as it unconditionally acknowledges the customers discontentment.

To go further, (train employees to) recognize the underlying frustrations. Then confirm in words your understanding of the customer's emotions and sense of loss, not merely from the perspective of a failed product but more personally regarding the impact on the goals the product was supposed to meet. Here is an example.

I am sorry you were delayed like that. The delay must have been very stressful because it affects your ability to prepare adequately for the public presentation on Saturday.


Empower front line employees to resolve matters, promptly

Train your employees to respond. For instance, if a glitch in your operations delayed a client whose buying motivation is time-related, rather than delay the customer any further by needing to call on a manager, the employee may apologize (even if the issue was not his personal fault) before offering a small gift (as a 'thank you' for their patience) or discount on the next service to help the client to stay in line with his goals, in this example, to save time. Notice that this requires you to train employees on the earlier point regarding recognizing the customer's 'concerns' or goals.
Example.
'Given the documents that you already have, our x team can provide a free presentation plan within 2 hours. They could delivery the final product online.'  This example may lead to an opportunity to showcase other services the customer had never used and even open new otherwise untapped opportunities. It may present an add-on opportunity.

Outside of your market research that informed you that customers seek your product for reason x (like to cut costs, be more profitable, be more efficient, etc), learn as much as you can about the customer's predicament by allowing them to vent. Sometimes, the solution may be creative and not necessarily product-related. Here is an example.
'... I see what you mean about how this situations makes it unlikely for you to do everything you need and reach the airport on time by bus. Our messenger will soon make a routine nearby delivery. I will call now to see whether he can give you a ride to your departure gate.'

Remain professional

In their training, use the following to help your employees to present themselves and the brand with professionalism. 
  • Do not take the complaints personally. Remain calm. After all, shouting back to angry customers will only escalate their anger. Refer back to the tip above regarding considering complaints an opportunity to improve. However, telling employees this will have not effect if you fail to create a work environment that encourages disclosure without blame.
  • If a representative other than the one considered 'at fault' deals with the complaint, there is no use bad mouthing the individual. The current representative should apologize on behalf of the business and consider the matter a failing of the business. 
  • Demonstrate an action-oriented approach. For instance, say something like 'Let us see how we can make things right again.'
In conclusion, a well designed customer service response to angry customers has often turned around very bad situations. Take the good situation further. Nudge the customer into your retention and evangelism sales funnels.


CONTENT RELATED TO CUSTOMER SERVICE: HOW TO RESOLVE CUSTOMER COMPLAINTS TO EXTEND CUSTOMER LIFETIME VALUE (CLV)


Tuesday, April 11, 2017

Customer Experience vs Customer Service

'People will forget what you said, people will forget what you didbut people will never forget how you made them feel.Maya Angelou

Customer experience (CX) refers to the shopping experience solely from the customer's personal perspective. Planning for superior customer experience requires empathic imagination of everything Jane sees, hears, etc after each click and how it interacts with her most basic individual human needs, including those not directly related to your product.

Even if you are selling and discussing car tires, Jane's ostensibly unrelated personal needs persist. For instance, among other things, she has ongoing social needs to be validated. So while recalling her name and personal preferences do not appear related to tires, you are more likely to win her over by considering them every step of the way. All her needs must be addressed to view her holistically
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Customer experience is proactive. It involves meticulous planning that avoids customer discomfort. Conversely, customer service is overall more reactive because it is concerned with fixing problems related to poor customer experiences, after they happen. In fact, it is quite possible to have excellent customer service despite poor overall customer experience. For instance, if you fail to meet a customer's ongoing need for convenience by dragging out a process into something difficult, the customer may suffer lingering frustration associated with boring tedium and wasted time but satisfied by how your customer service rep resolved her specific problem. 

Achieving superior customer experience involves planning to make that process easier and to avoid the problem in the first place. For instance, after imagining Jane's experience, and even before she enters, you decide to use the right infrastructure like apps to eliminate otherwise tedious steps. Customer experience mapping can help you to identify where (potential) problems lie. It involves looking at all the stages of the buying cycle, ie from 'stimulus to ZMOT to first moment of truth to second moment of truth'.

Jane couldn't careless about her stage in your 'sales funnels'. Just like you, she is selfishly living in a bubble of her personal needs in which she does everything possible to meet them. You must step away from narrowly focusing on 'converting' her from visitor to lead at x% to prospect and then to customer at x% ... so she could buy, ... so you could meet your personal needs. To her, she's just Jane. Not only should you carefully examine your processes through which Jane goes but also those who serve her, ie your 'internal customers' aka employees whose processes should also be streamlined to avoid internal friction and confusion. See how McDonalds masters this on the backend.

No need pretending why you are in business with the usual disingenuous, creepy tactics though. However, if you can just treat her as Jane as a holistic individual while keeping all your market promotions stuff strategically woven to apparent invisibility, you may meet your needs marvelously. 

So before Jane comes in the next time, prepare. You do not just sell her tires. Letting her see your humanity, prepare to use her data (from data mining) to also sell her personal validation, convenience, understanding, expert knowledge, non-jarring interface, occasional surprise little bonuses (aka a 'plus one' product or service) and whatever you know she values. By using data of her shopping history and preferences, you can also make personalized
recommendations of new products and upsells.
Sephora is a cosmetics brand that offers preferences as personalized rewards recommendations for their tiered loyalty program.


Perfecting customer experience takes time and critical and intuitive observations of both explicit and implicit signals. For instance, abandoned shopping carts signal a bad customer experience. You must figure out the associated pain point and fix the problem at the operational design level to prevent recurrences, even when customers are reticent. Your work never ends, constantly use available tools for data analytics and predictive analytics. In other words, remain flexible and responsive to changing customer demands.

Here are examples of how you can apply the above.
  • Hire front line staff with the ability for empathy and emotional intelligence. Your HRM strategies should specifically target and hone those skills on every point of employee contact through job descriptions, job interviews, training and so on.
  • Train your sales team to deliver 'plus one' bonus products or services (that are relevant to your business). Among other things, this may involve empowering staff with certain decision-making authorities. For instance, sales staff may be allowed to offer gifts in the form of add-ons up to a value of $x to customers with characteristics regarding.
  • Train front line staff to meet customer needs. For instance, set up backend facilities that allow your sales team to collect and review notes related to conversations and other interactions with customers. These data may be later cited, perhaps as memorable handwritten notes at the point of delivery. Needless to say, this example highlights the need for company-wide integration of the customer experience unique value proposition. So everyone, from front end to delivery departments, working directly or indirectly with that customer is on the same page.
  • Be readily available when the customer needs you.
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CONTENT RELATED TO CUSTOMER EXPERIENCE (CX)

Wednesday, April 5, 2017

ECommerce Apps I Like or Use on Shopify

Plugins are small pieces of software that are compatible with the Shopify software to the extent that it can be plugged in or added on. Plugins introduce some specialized functionality. The following are some examples that add a lot more functionality to an ecommerce store.

  • Address Validator by RoboTurk. This checks for mis-spelling and other errors in customer entries of their addresses. This works for only US and Canada addresses (with hopes of including international locations over time). This app can reduce late deliveries (and from the makers' estimation, product returns). The pricing is also good. There is a free 14-day trial and the 1st 100 orders free. When billing begins, each order will cost $0.03. Value added: customer service
  • Arka: custom packaging and fulfilment for your own branded packaging. 
  • Automatic supplier inventory management: Some of your suppliers may have an app established with Shopify that automatically updates inventory levels. Once you establish whether you suppliers have this agreement with Shopify, it may be possible to automatically track inventory levels on your website. Value added: customer service (convenience)
  • EVM Lookbook: This is a free app that puts clickable text tags for each of multiple products that appear in a single image. This is ideal for product reviews from customers who include single photos that include multiple products. Value added: customer service (product sales)
  • Fraudlabs: has a free version up to 500 monthly transactions with several price packages. Value added: customer service (security)
  • Fraud Filter by Shopify: This is a free app that allows you create filters that can flag, cancel and immediately refund fraudulent transactions. There appears to be some bugs however. For instance, since this app does not prevent the sale upfront, it is unsuitable for digital products that a sale confirmation delivers immediately. Additionally, customer reviews suggest that it still allows identified fraudsters already entered into its filters to complete subsequent transactions. Value added: customer service (security)
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  • Gift Reggie: This is a paid app that allows customers or even sales people to create gift registries for a customer. The registry is shared with a public URL. Unlike other registries, visitors to the registry will not be shown the same or similar products from competing stores. The packages start with as few as 5 active public registries for USD 5. You may change your package according to he number of active registries you wish to maintain within a month. Other features like telephone support and functionality are the same for all packages. Value added: Promoting brand awareness
  • Has it shipped yet (closed July 2017): This app integrates well with Shopify. It provides you, the store owner, with convenience because it frees up your customer service resources in dealing with one of the single most frequently asked questions, 'has my order been shipped yet?' It creates a webpage on your website where customers can get their order's status with their order number (and, if you prefer more security, their order email address). I particularly like the easy setup. A video is available for each of the 3 steps. Coding is not required for set up either. Value added: customer service (convenience)
  • Order Lookup (a replacement for the 'Has it shipped yet' app): Unfortunately, although this app was recommended by the makers of 'Has it shipped yet', it does not offer the service free, even for an initial number of orders. It costs USD 10 monthly regardless of the number of orders placed at your store. However, past 100 sales, each subsequent order has a cost of USD 0.05. Overall however, the price should be manageable for anyone who is running a profitable store.
  • Help Center: This allows you to have a phenomenal FAQs page. It allows you to arrange topics into collapsible categories and subcategories. If your store visitors do not want to scroll through the topics, they have only to start typing their question for this app to use search through all of the words within the page to suggest questions with matching word(s). An alternative is FAQ by POWr. Value added: customer service (information)
  • McAfee Secure: This gives your customers the confidence that they will be able to use their credit card securely on your website. Value added: customer service (security)
  • MailChimp: This is quite a favorite for newsletters. Value added: promotion of (new) products and for tentpoling
  • Mega Menu: Many of Shopify's free themes do not allow for navigation bars beyond the basic one-level drop down menues. However, Mega Menu allows you to create any time of drop down menu for each section. Value added: customer service (convenient store navigation)
  • Order Logic. This app allows you to establish minimum purchase volumes. It is a paid plugin with monthly charges. Value added: profitability as it relates to raising  the average order value (AOV)
  • Parcelify: Shopify's system currently allows you to plan several shipping plans but almost only based on weight. This app allows you to create multiple types of shipping (or freighting) options. Value added: customer service (convenience)
  • Privvy. Great app for popups, flyouts, landing pages on just the free version alone. The paid version includes email sequences and other functions. Overall however, the functionality is great, even for the free version. Furthermore, it has a very clean look and feel - much like how Apple was to Windows when Apple was head and shoulders over Windows. Value added: lead value optimization
  • Product Reviews: This is self explanatory. Value added: product promotion using social proof
  • PushCrew. This app sends automatic push announcement advertisements on the desktop of a subscriber. For instance, it announces the commencement of live webinars. Value added: customer communications / promotion
  • Signifyd is a fraud and chargeback prevention app. It appears to differentiate itself by offering a guarantee to cover chargebacks fully, including processing fees if they had previously approved an order with a green ticket and score. The app completely automates the processes of checking the legitimacy of transactions (mentioned here). Note however that Signifyd may not cover incidents of friendly fraud. See list of conditions covered for chargeback reimbursements, reimbursement claim manual and other reimbursement manualsValue added: customer service (security)

  • They have a fixed 1% charge per transaction on all transactions OR a fixed 4% through the 'On demand plan' for only some of all your store's transactions. The latter is usually used for higher ticket items. 
Large
  • Tabify. Is a product page tab generator. It allows product-specific customization because the tabs are generated by including header tags within the description. However, if you like, you can create a tab that recurs on all product pages. At USD 3.95 monthly, it is a cheaper but apparently comparable alternative to Easy Tab (at USD 5 monthly). Value added: customer service (product information)
  • Tawk.to: Great free app for live chat. It is absolutely top notch. This app provides a lot of customization without charge. In fact, its features are all available free of cost. Such free features include multiple agents, multiple websites (aka 'properties'), shortcut phrases and much more. Get a basic intro (with instructional links). Value added: customer service as it relates to one-on-one customer communication
  • UniteXpress: is ideal for dropshippers from AliExpress. This allows you to automatically import products from the AliExpress website directly into your Shopify store ... and ship directly to your customers. This app is free up to the 499th monthly order, after which the monthly cost is USD 24.99. Value added: customer service (convenience) and operational efficiency
  • Welcome Screen (by Hero). This app allows you to create full-screen push advertising pop-ups. There is even a free version. (Overall, I find Privvy as an attractive alternative because Privvy does not have the bug issues that does Welcome Screen. Additionally Privvy has considerably more functionality, even on the free version.) Value added: lead value optimization
  • WishTack: This is not the best app for gift registries. However, it may work for a less professional presentation and shopping experience. It allows your customers to create a any type of registry (bridal registry, baby shower registry or any generic wishlist). Customers will announce this wishlist on Facebook to friends who could buy items and collaborate to buy single items ... all without notifying your customer. Customers can send a link to friends named anything they wish like 'My bridal registry', etc. They may even include an image of themselves. The key downside is that, after spending money of paid traffic, this app actually recommends the same or similar products from competing stores that include ecommerce giants like Amazon. This is the major deal breaker for me for key projects. See Gift Reggie as a better paid alternative that starts with USD 5 monthly for 5 registries. Value added: customer value regarding financial cost; brand awareness promotion.
  • Zopim Live Chat: Great app, even the free version. It essentially replicates the ever near brick-and-mortar shop assistant. It is ideal as a free chat app if you will have only 1 agents. However, I prefer Tawk.to if you want more functionality (like multiple agents, websites aka 'properties' and so on) and a free account for all the features for which Zopim charges when you want more upgrades. Value added: customer service regarding one-one virtual and direct customer communication
  • Referral Affiliate Programs: These apps allow you to maintain your site's own referral affiliate program with social media customers, influencers, bloggers, employees and so on. Value added: lead value optimization, evangelism and brand awareness promotions.
    • Refersion Affiliate Tracking:
      • You can track: sales and royalties using data like SKUs (a retailer's stock keeping unit number), email addresses and so on.
      • Affiliate experience: Each affiliate will have their own dashboard that also allows them to track their activity real time.
      • Automation: Auto-emails for specific events like their account approval, completed sales and impending payments.
      • Payments: Affiliates can use Paypal and custom gift cards.
      • Cost: Different plans like 2.2% on affiliate sales or USD 79 monthly minimum (whichever is greater), with a 14-day trial, conversion triggers (like coupons, automatic emails and SKUs) with chat and email support. They are open to discussing custom plans for monthly charges.
    • LeadDyno:
      • You can track: Unlimited number of affiliates. Up to 10 levels of lead commissions. (A 'level' refers to any unique commission rate with a corresponding affiliate type). 
      • Automation: Automatic email for different events like inviting customers to be affiliates when they buy, etc 
      • Affiliate experience: their own dashboard to track their earnings. 'Conversion triggers' include coupon codes.
      • Payments: Paypal 
      • Cost: USD 49 (or USD 29 with Shopify) + 0% on sales monthly to 3k unique visitors with email, phone and chat support 7 days. 14-day free trial.
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  • International Shipping:
    • Yakit: This is a free app for international (not domestic) shipping. The company is based in California, US and India. The service is drop shipper friendly.
      • Instant shipping and duties rates: Yes. They are guaranteed by Yakit.
      • Tracking: yes
      • Shipping time & cost: delivery within 7 to 9 days worldwide at USD 10 / lb or more for faster shipment.
      • Weight Minimums: There are no minimum shipment weights or volumes. However, smaller weights and volumes may be costlier.
      • Origin country: US, China, HK, Singapore, UK, Germany, Italy, France and Spain. They may be able to work from other countries if you ask them via chat.
      • Insurance: Yes, up to USD 2,000 without cost
      • Customer stays on your website: yes


To find plugins / 'apps'
  1. Log in to the backend of Shopify
  2. In the left column menu, select the 'Apps' icon (shaped like puzzle piece).
  3. In the top right corner of the screen, click 'Visit Shopify App Store'
  4. Define search criteria like category, price and so on using the dropdown menu on the top of page

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