One of the greatest inhibitors to growth in Australia is the constantly changing policies at the influential levels of government.
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How consumers are feeling now
How consumers are feeling now – A national study of sentiment, emotions and advocacy
At this year’s SOCAP Australia Symposium in Sydney, Peter Gillson, director of SFI International, and David Higginbottom, of Competitive Edge Consulting, presented the results of a national study on ‘Consumer Sentiment, Emotions and Advocacy NOW’, commissioned by SFI International and conducted by Competitive Edge.
Click here to download the Key Findings of the Study
Handling
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SERVICES NEED DIFFERENT APPROACH
SERVICES NEED DIFFERENT APPROACH TO CUSTOMER RELATIONS
We all understand that services create intangible benefits that are often hard to convert to tangible offerings for clients.
This is difficult when we know that most of us prefer to see, touch, feel, own products and we often have difficulty parting with money when services are not immediate and consumable at the time of purchase.
Over the last 15 years, some of our major State economies have developed into service economies. NSW has the greatest service economy, with between 85% and 90% of businesses being service based. The service industry is growing, not going away.
How do we, therefore, handle customer complaints and customer relations when we know that the very nature of services creates communication problems because of the inherent tangible nature of the benefits.
Here is a list of things you should consider to avoid the “service trap” that can drive customers away, rather than drive them towards your bottom line.
1. Ensure that they can complain as soon as there is a problem. There is nothing worse than a customer trying to complain about such items as “service attitude, sloppy delivery of service” etc. With a leaky pipe, you can demonstrate it leaks. With service, it is difficult to explain how somebody served you badly or dealt with you by phone two or three days earlier.
The secret is a good customer complaint or customer response section in-store or online, so that the response time is immediate and customers do not “fester” with hate and discontent. A good online contact page with a phone number can assist here.
2. Do not make offers or engage in promotions that, themselves, are sources of complaint or service problems. Coles is currently looking at its loyalty cards, such as Flybys. These “motivators” have now become demotivators and a source of discontent as clients try to convert points, and other clients try to have convenient purchases while being grilled about Flybys.
It is well known that the greatest complaints happened during sales promotions, creating an opposite action to the desired bottom line result.
3. Train staff to expect objections and complaints. I love it when staff ask you if you enjoyed the meal, for example. If you answer that you did not because it was terrible, they are taken aback and are unable to respond because of their lack of training. Service 101 has only taught them to say, “Have a nice day”, and “did you enjoy the meal?” There has been no training for quality problems, requests for salad on the side, ability to handle customers who want to negotiate, etc. Handling service complaints requires training because it is about perceived value in the eyes of the client, and you cannot win by trying to discredit the client who has developed a firm belief about what they experienced.
4. Be careful of telephony. Telephone call centres, especially overseas ones, are usually time consuming, and the operators lack the same cultural understanding about issues such as quality, speed of response, perceived bureaucracy, value for money, etc. Their in-country experience is totally different to Australia.
Try to have a culturally attuned trained workforce to handle calls locally. By doing it efficiently, you actually reduce the steam that builds up, while you are delayed on lengthy overseas calls.
There is emerging in society “consumer rage”. This is similar to road rage, and major retailers and customer relations experts are now recognizing this new phenomena.
If you are service based, you must address what will be a new phase of complaint handling with modern management techniques and training. This requires an understanding that the sentiments and emotions underlying buyer behaviour are being shaped and moulded by a “fast food, convenience” and stress based society where faster response to complaints handled in a professional manner, is essential.