Jacada Blog

Conference Report: Public Utilities and Customer Experience

I just attended the Marcus Evans "Utility Customer Experience Management" conference. Very insightful. Many of the nation's top gas, electric and water utilities companies were there, as were a large number of customer service vendors. I thought it interesting that the focus of the conference was "moving toward a more self-sufficient customer experience."

There was a lot of discussion around the role of technology in improving customer service. American Water discussed the ongoing changes in the infrastructure of the utility's two large call centers, which were consolidated a few years ago, and their recent implementation of a continuing customer survey system. I was surprised to hear that AW has yet to make any significant investments to the technologies that run their service operations. Other companies talked about their CRM systems, but expressed marginal satisfaction, which wasn't surprising. The keynote address from the VP of customer service at NICOR talked at length about employee engagement and an application of theirs that "builds morale and teamwork in their call center," but I didn't get the impression that the app was integrated into their business systems. I heard a good bit of chatter about training and "customer service skills," although I was left wondering if some of these utilities are just barely missing the mark when it comes to customer experience. Yeah, strengthen your people and your service deliverables, but how about also simplifying the process and providing a better data interface?

Mike Drexler - Utilities Practice Leader, Jacada Inc.

I'm Glad I Don't Work at Toyota's Call Center

We all know that Toyota will suffer major financial repercussions because of the massive safety recall issued this week – potentially more than $1 billion according to Forbes (http://www.forbes.com/2010/02/02/toyota-recall-fix-markets-equities-brand.html).   But the damage to the company's brand could be even more detrimental.  People purchase Toyotas because they are reliable, safe family cars.  Nothing is less safe or reliable than an accelerator pedal that sticks.  As a new mom myself, I get a shiver down my spine, imagining my baby in a car that I can't stop. 

And THAT is exactly why this issue will be so devastating to Toyota.  It's an auto company's nightmare: it's not just a parts issue, but a very emotional issue.  Other moms and dads will imagine their children in a car that they can't stop and think twice before purchasing another Toyota.  Auto companies rely very heavily on solid brand awareness and consumer loyalty, as they sell large ticket items and strive for lifetime repeat buyers.   I have family members who have literally bought only one auto brand over and over throughout their entire lives because they are so loyal.  Toyota spent years and years building this brand presence and it could come crashing down very quickly and painfully.

The customer experience side of this story will be interesting to watch.  I'm sure the call volume at Toyota's call centers is through the roof – but how those customers feel when they hang up the phone, or walk away from the dealership or close the web browser, will have a huge  effect on how Toyota comes through this mess. 

Cindy Knezevich - Director, Global Product Marketing & Communications, Jacada

Google vs. Apple: Customer Experience Matters

Last week, Google made a splash with their new Google Nexus One phone. Features are said to be out of this world. Google's latest creation boasts great open technology, both in terms of applications and also with the phone network, which is great for us all.

But when are technology companies going to learn that the magic of Apple (Google's primary competitor thanks to the iPhone) is not that they have the best product ideas around or that their CEO is some incredible genius in a black turtleneck?

The magic of Apple since Steve Jobs has been around is that they understand the customer experience. They understand that if they make products easy to use and they make products enjoyable to use, they will have customers for life.

Google is going to learn a hard lesson with this release of the Nexus One, because email - and community-based customer service will suffice for only a small few. If Google plans on the Nexus One being something that can appeal to the masses, they will need a real plan for customer service. And a real plan is not found in email inquiries that take three days for a response or forums where people suggest the best answer to you. It also is not calling one number for a hardware problem that goes to HTC (the manufacturer), another number for a network problem that goes to T- Mobile, and emails to Google for a software problem.

People want simplicity in their lives, not more complexity.

Rob Sader - Communications Practice Leader, Jacada Inc.

Jacada hosts networking event for the American Israeli Chamber of Commerce

Jacada hosted a terrific networking event for the American Israeli Chamber of Commerce. We had a fantastic turnout with just over 100 members and employees attending. It was really amazing to see the Israeli-American business community coming out in full force to support Jacada. Pictured here is Tom Clear with AICC chairman, Tom Glaser.

Is customer service one of your core competencies?

"Core competency" was all the buzz for many years and one of the main reasons for the rapid growth of the outsourcing industry over the last 10 years.  Outsourcers pitched sales messages and value propositions like: "Manufacturing is not your core competency -- we can do it cheaper;" or "cut your costs by letting us manage your supply chain for you;" or "the IT help desk business is our bread and butter and not yours, so let us take that over for you."

But here is my question: Is customer service your company's core competency?

And if it isn't, shouldn't it be?

Late last year, Amazon paid $900 million for Zappos, a website and brand that sells things over the internet that you can get for the same price at your local Target or Walmart. Why? What was the payoff?

The simple reason is core competency – knowing what you know, and demonstrating it through customer service.

With the dynamics between companies and customers changing every day, and with more power and influence being put squarely in the hands of the customers, every company must make customer service their core competency. No one knows or understands your products and services better than you. Why would you want to outsource one of your most critical points of influence and learning to someone else?

The leadership at Zappos understood this and are $900 million more secure because of it.

Rob Sader - Communications Practice Leader, Jacada Inc.

Resolution for 2010: Pay Attention to Your Customer!

We are finally beginning to see glimmers of hope in the dim economic outlook. The recession of 2009 put a significant strain on everyone, forcing many companies to refocus their efforts on providing excellent customer service as a way to stay afloat. Customers haven't changed all that much, however, and still seek out companies willing to pay attention to their individual needs.
 
Even with online options, the call center remains the primary customer contact point. It is especially true than customers who call into a contact center be given "personal treatment." A fast and efficient response to a customer inquiry, delivered by a knowledgeable, thoughtful service representative, goes far in differentiating a company from the competition in the eyes of the customer.

Customer service organizations are learning the value of analytics and customer metrics to drive more value through each customer interaction, regardless of the communication channel. But even the most forward-thinking company out there can still be brought up short by disconnected data systems and redundant processes.

What good does it do to know the customer's account and history from A to Z, only to not be able to apply that knowledge? Except in the instance of a call-based sales center, customers are contacting you almost exclusively because they have a problem with some facet of their existing product or account. Perhaps it all depends on whether you see problems as problems, or problems as opportunities.

Here's one thing about 2010 that is going to be the same as 2009: When a customer interacts with your organization, they expect to be satisfied. By leveraging the right data and by giving your reps a simplified point of access to that data, you can not only satisfy your customers, but actually delight them. That's what customer experience is truly all about.

Richard Stern - Senior Vice President, Global Marketing

Decade of the Customer: CRM is Dead, Long Live CEM

The seller/consumer relationship has reached a new level, and the timing is right for a revolution in customer service. Data and networking technologies now allow us to gather and transfer more information from more sources, in almost literally the blink of an eye. Product quality and differentiation is at a near static level. And economic conditions, while seemingly on the upswing, have created a new client - call him Customer 2.0 - who wants the most for his money and wants it now.

So the revolution is on. CRM was hot just a few years ago, and it was just what companies needed to deal with their customers. However, in this new revolution, companies need more. Customers tell them that managing their account is important, but it's essential to improve the level of service. Instead of managing the relationship, customers demand that their experience with the company be respected. The revolution of CEM - Customer Experience Management - is on.

Companies have quickly seen that it is imperative to treat every customer interaction as if it were the only contact that matters. These same innovative, breakthrough companies know that each of these interactions is golden, spinning them into customer-centric knowledge that drive new and peripheral revenue streams through satisfied, loyal customers.

Look for advanced customer analytics to be in the first wave of this revolution. It's already started, with marketing-focused business intelligence capabilities that now enable a more knowledgeable sales approach. But what will follow is the melding of customer metrics at the point of interaction, driving customer service organizations to fully relate to each and every customer at the precise point of greatest impact. Customer service tools such as the unified service desktop will be leading this revolution.

In this new revolution, in the Decade of CEM, customer satisfaction will come from creating compelling, consistent and efficient customer experiences that drive customer growth and profitability. Customers need never again be thought of as just a number - unless you consider Customer 2.0 a bad thing.

Tom Clear - CEO, Jacada Inc.

How Do You Balance Cost Cuts with Customer Service?

I recently had the pleasure of hosting a webcast with Penny Reynolds, founding partner of The Call Center School. In her presentation, Penny noted that companies are finding it difficult to balance cost-cutting measures with maintaining superior levels of customer satisfaction.

This brought to mind the age-old dilemma of cutting staff levels to reduce expenses while trying to maintain productivity and service goals. Penny had a terrific example of how a reduction in customer service staff can actually lead to increased operational costs and less efficient call practices. Less staff means longer calls which means more time on the phone – and a significantly higher phone bill. The offset could be enough to fund the additional staffing to bring the productivity numbers back up to par and actually reduce expenses.

Companies want more productivity from their agents, so they believe their agent occupancy rate should be higher (up to 95 percent or more). But agent occupancy is influenced by call types, call volumes, and call times. A higher occupancy rate might look good but actually points to longer calls that cut into the value of the customer interaction. A balanced call center promotes a moderately high occupancy rate along with efficient and effective customer interactions.

So, the dilemma: reduce headcount and cut costs now, or bolster customer service and save (or even increase) profits in the near future? From Penny's point of view, the answer is clear: invest in people who can directly impact profitability at the customer level. Penny and I agree that reps need the best systems and tools available to them so that they can provide the best service possible. And we each believe that service objectives should be tied to profitability.

In Penny's words, this means approaching the call center as a profit center, not a cost center. The trick comes in understanding the interaction between the customer, the agent, and the company (aka, profitability).
Click here to view a replay of this webcast.

Ann Conrad - Manager, Corporate Marketing, Jacada Inc.

360-Degree Thinking is So Last Century

Why isn’t a 360-degree view the solution that the CRM companies have been promising for the last decade?

Because it isn’t really a 360-degree view of the customer that’s needed by your customer service agents.

Ever since their first appearance in the 1990s, CRM systems have promised much and delivered less.  Even for those organizations that beat the odds and had a successful implementation, the call center’s perspective was that CRM just created another application that the agents had to navigate around and enter data into.

Information overload can cause as many problems as having too little!  Even though all the information about the customer may be contained within one application, the way agents must navigate around the various screens is misaligned with the way a customer call naturally flows.

And the more information that's held, the more screens the agent is likely to need to look at per call.  This can disrupt the call flow and slow the whole process down.

360-degree thinking is so last century... it's all about intelligent, intuitive views these days.

Give agents the necessary intelligent, context-sensitive view of the customer as opposed to a 360-degree view.

Guy Tweedale - Senior Vice President, European Operations

Warm Wishes From the Jacada Team

Tis’ the season... to spread a little holiday cheer! This year, Jacada employees teamed up with the Salvation Army's Angel Tree Program and donated children's clothing and toys to be distributed to families in need in the Atlanta area.

From all of us at Jacada,
Happy Holidays and a Joyous New Year!!

 

Jacada Angel Tree Committee pictured here.