MarketingBeyond

Letter to Dan Hesse at Sprint: Salesmanship and Customer Service

(A podcast version of this post is at MobileBeyond.)

November 22, 2008

Dear Dan:

Today, Dan, I walked into one of your stores--the one at Newpark Mall in Newark, CA, not far from my home. I'm a Sprint customer, qualify for a phone upgrade and thought I'd check out a few of your phones that caught my eye of late: The BlackBerry Curve, HTC Diamond Touch and even the Instinct--your "iPhone Killer"--although I'm not heavy into multi-media or touch-based keypad phones.

Dan, let me be candid. If you're wondering why you're losing millions of customers to AT&T, Verizon and T-Mobile, it's because you haven't trained your staff how to sell and offer superior customer service. You haven't even conveyed to your staff a sense of urgency in our economically troubled times.

When I walked in the door, four--that's FOUR--Sprint employees were cracking jokes and having a great time behind the counter. I yelled out "Hi" to everyone, got a slight acknowledgment I existed and started playing with the BlackBerry Curve. (The demo Curve's screen, by the way, was full of finger prints and looked like it hadn't been cleaned in a week.)

Not one of your employees approached me. I looked at several phones, thought about upgrading and signing another two year contract, then walked out the door.

Meanwhile, excited T-Mobile salespeople at the kiosk outside your Sprint store were actively soliciting business from people walking near the kiosk. I heard one say: "Hey, would you like a free phone?" Further down the mall thoroughfare were TWO AT&T kiosks. Positive, excited salespeople were showing off shiny new phones from your competitor. Down further was Verizon's kiosk with a giant BlackBerry Bold display and sharp-looking employees showing off Verizon's line-up.

You know, Dan, I was almost tempted to stop by each of those kiosks, if only to listen to how excited, positive people offer superior salesmanship and customer service. But time was passing and I had to leave the mall.

Dan, just so you know I'm not knocking Sprint alone, read by blog post on AT&T: "Training Retail People People to Become Marketers and Delight Customers." In the post, I relate a negative experience I had at an AT&T store. Or, if you're in the mood for some humor, take a look at my blast against Verizon: "News Release: Verizon Wireless Announces $99 'Talk All You Want' with Rollover Plan."

Sprint is running some VERY cool online flash videos of your phone line-up and expensive broadcast and print advertising portraying Sprint as the leader in wireless technology. So, I'm very sorry to see that, having spent millions of dollars on quality advertising, you would allow its impact destroyed by your retail employees. It doesn't make sense.

Here's what should have happened today at your Sprint store:

1. A pleasant, well-dressed trained Sprint sales rep meets me at the door
2. Through a series of questions and rapport building, the rep makes me feel comfortable and helps me find several phones that meet my needs
3. The rep answers all my questions and skillfully handles my objections by presenting features and benefits of the phone, the plan and Sprint as a quality company
4. The rep closes the deal with appropriate statements and quesitons ("this phone does meet your needs, yes?")
5. The trained sales rep upsells me at the counter with accessories, phone insurance, a better voice and data plan
6. After handling the transaction, the Sprint rep gives me a business card, asks me to call him/her at any time if I have questions, thanks me for buying from Sprint, walks me to the front of the store, thanks me again for my business and wishes me well

Dan, I know you have a training program in place for your sales reps. But you disappointed me today. You made me feel that, just maybe, I made the wrong decision going with Sprint. Your reps' lack of care, attention and professionalism didn't jive with your cool, high tech ads. I walked out the door feeling negative about Sprint.

I know you're working hard, Dan, to turn the company around. You're moving ahead with WIMAX and other new telecom technologies and services. But, today, Dan, you disappointed me.

I thought you would like to know.

Regards,

Brian

 

Fremont Bank: Local California Bank Stays the Course

When I switched all my accounts from Washington Mutual to Fremont Bank  in Fremont, California last year, I knew that responsible local banking was still possible and thriving. Since then...well, you know the story. Large commercial and investment banks succumbed to the temptations of maximizing their profits at any cost, driving the world's economy into chaos.

Fremont Bank, which serves a small segment of residents in the East Bay--not far from San Francisco, San Jose and other Bay Area communities--prides itself on secure, conservative banking. Its investment managers were not swayed by sub-prime mortgages, credit swaps and other financial instruments invented by financially greedy bankers elsewhere. Fremont Bank's mission, stated in its website, is clear:

"For 45 years Fremont Bank has been built on a very strong and sound foundation. That foundation is designed to adjust, protect, support, and provide confidence to our clientele. We have based our operations on partnering with our clients and the strength of the market we serve. We are not just a bank. We are your bank and you are our client. To operate a safe and well-managed financial institution has been and will continue to be our primary focus. We consider our senior management team and board of directors to be the finest in the industry who have worked together for over three decades.

"If you have any questions or concerns regarding your deposits, the financial stability of Fremont Bank, or your banking needs, please do not hesitate to contact your local branch manager.

With our deep-rooted values and commitment to you – rest easy knowing we are here today, we’ll be here tomorrow and we plan to be here in the future.

Thank you for your continued partnership and trust."

As I've written here on MB recently, trust is paramount to the success of any business--especially with financial institutions that hold our future in their coffers. Without them, buying a house or car would be impossible, and conducting our day-to-day financial affairs would become burdensome to say the least. We need banks. But more than that: we need banks that maintain trusting relationships with their customers.

Fremont Bank, as a responsible member of our community, has also addressed the financial struggles of its mortgage customers. You'll also read this on its website:

"Let us Help You Save Your Home. Our Loan Workout Team Can Help You Find a Solution."
 
If you cannot afford your monthly mortgage payments and wish to avoid foreclosure, you may be eligible for a loan “workout” or modification.  We determine eligibility for loan “workouts” on a case-by-case basis.  Among other things, we will consider the value of your property and your ability (based on your current income) to make monthly mortgage payments in accordance with the “workout.”  You may also qualify to refinance your current loan with us."

While we read horror stories of bureaucratic bankers who move quickly to foreclosure, Fremont Bank, as a solid member of the East Bay community, is willing to work with its customers to explore all options preventing foreclosure. This not only helps its customers from losing their homes, in many cases, it just makes good business sense. Companies--banks, in particular--that demonstrate community responsibility and maintain excellent customer relations will thrive over businesses that don't.

Kudos to Fremont Bank for acting responsibly in its investment policies and helping the local community in one of the worst economic downturns of the century.

Need Lambchops? Maybe Better Retail & Online Customer Service?

Viewed an interesting TV show today--on my PC, nonetheless. Two consumer journalists were discussing the pros and cons of buying online. They chose a number of well-known major chain stores that have an online presence to accommodate customers who prefer buying online and/or want to save on the high price of gas and hassle shopping in a retail store.

More on MobileBeyond, including a podcast that's easy on the ears...

Sorry, Tiffany, eBay Doesn't Care About Trademarks. Buyers, Beware...

The Wall Street Journal reported today that a Federal judge ruled that online e-commerce sites--in this case, eBay USA--are NOT responsible for trademark infringement by its sellers, as long as it removes listings brought to its attention. (eBay lost a similar lawsuit in Europe recently where the courts ruled that eBay IS responsible for fraudulent sellers listing counterfeits on its e-commerce sites.) The fine: $63.7M. payable to LVMH Moet Hennessy Louis Vuitton SA and other elite brand name manufacturers.

Although Tiffany is appealing the case, the courts have effectively ruled that eBay is similar to Internet Service Providers (ISP's) that allow customers to profit from selling fake items online. eBay is essentially an "Internet portal."

Unlike a newspaper or magazine that could be sued along with an advertiser selling products breaking trademark law, eBay and other Internet e-commerce sellers are different, according to the courts.

I think eBay is crazy thinking it won this case. Despite the listing fees retained by eBay from canceled listings, does eBay truly want buyers believing counterfeit brand goods are not monitored? For God sakes, eBay has the technology to flag suspect listings based on brand, keywords and other listing content. 

What if I decide to list a $1M fake De beer's diamond on eBay? Are eBay and the courts claiming that eBay shares no responsibility in a flagrant abuse of the trademark laws? I realize eBay can't review every listing it accepts, but to hide behind the mantle of innocence, when eBay can scan keywords for likely fraud, is a bad business practice and hurts everyone in eCommerce.

The Federal court judge ruled it's the responsibility of Tiffany and other trademark holders to identify online trademark infringement and report it to eBay--that the burden falls on the holder of the trademark. This is utter nonsense when a technology company, colllecting high listing and final value fees from sellers, claims otherwise.

Rob Chesnut, Senior VP and Legal Counsel at eBay said, per the Journal, " 'This ruling appropriately established that protecting trademarks is the primary burden of rights owners--not market places like eBay...' "

I think not, Mr. Chesnut. I think you and eBay are trying to hide the truth about the millions of eBay listings that are suspect. Everyone is aware of the exacting replicas of high-end merchandise  you're allowing for sale on eBay. And even your feeble attempts to control the onslaught is rewarded by retaining millions of dollars in listing fees when sellers are caught.

Here's my proposal, Mr. Chesnut. Whether it's Tiffany, Nike, Debeers or other well-known brands. Insert the following paragraph at the top of every brand listing:

"Buyers, you should be aware that some products listed on eBay are replicas of the originals. Therefore, we encourage you to review the seller's ratings and customer feedback before purchasing. While eBay attempts to remove fraudulent listings, it's impossible to identify all listings that may represent forgery or replicas. Thank you for your cooperation."

eBay should use its technology to slow the growth--not enhance it--of fake merchandise pawned off to unsuspecting buyers. If not, eBay and other eCommerce marketplaces will rightfully feel the wrath of the courts and, if not the courts, a massive change in the trademark law by Congress. Then, Mr. Chesnut, eBay and legtimate eCommerce sellers will really end up in quicksand, as all online sellers are forced to notify buyers of potential fraud.

Googling Advertisers' Minds: Customer Service Confusion

Attention, Google advertisers....Pick a domain name with no more than 32 characters or face Hell.

Recently, I wrote and placed a few text ads, using Google's Adwords program, for my company--Innovative Communication Solutions, the company behind my four blogs: MarketingBeyond, MarketingVisions, Mobile Telephone Marketing and Mobile Telephony Innovations.

Google has a rule that the display URL is the same as the forwarding URL. On the face of it, this seems reasonable, preventing deceptive advertisers from directing those who click on Google ads to undesired web pages. But what if your URL, like ICS', is 33 characters, one more than the maximum 32? I've tried dropping the "t" on my Google ads. In the past, Google accepted this change. Now customer service reps reject every new ad I place due to the URL problem.

What's most irritating is belated email responses from Google CS reps. Here's the standard auto response when submitting a question or concern to Google customer service:

Hello,

Thank you for your message. This auto-generated email is to confirm that we received your inquiry. We appreciate the urgent nature of your message and will respond as soon as possible. We strive to reply to your emails individually, within one business day. Meanwhile, you can also refer to our Help Center https://adwords.google.com/support to find the answers to commonly asked questions.

We look forward to providing you with the most effective advertising available.

Sincerely,

The Google AdWords Team

Two or three days later, having placed the ad, Google sent me an email indicating the URL problem prevented my ads from running.

I sent another email. Here's the response from one Google Rep, who not only is unfamiliar with the 32 URL display rule (he thinks it's 35), he even suggests a solution, which was rejected after I adjusted the ad.

Hello Brian,

Thank you for writing in. I understand you would like to know if your had has been reviewed after you made the changes to the URLs. Upon reviewing your account I found that your ad is currently pending review. Please allow me to explain that as you are aware, display URL is limited to 35 characters, and we require that your ad's display URL match its destination URL (the URL of your landing page).

I notice that your display URL is incomplete (InnovativeCommunicationSolutions.Ne). However, as an exception to the rule, you may use only your domain name, that is, 'InnovativeCommunicationSolutions' as your display URL.

I hope this information is useful to you and satisfies your concern. Please feel free to write me if you have additional questions. I'd be happy to help you.

As I've written multiple times on MB and other blogs, companies that provide superior customer service by training their reps will survive. Those that don't are doomed to failure.

P.S. I received a "customer service survey" today from Google, asking how they're doing.

Call Us in the Morning - The Failure of Customer Service (Podcast)

Customer service has frequently been referred to as "the sale after the sale." Marketers spend billions of advertising dollars to convince us to buy their products and services.

Then, companies lose or dismay customers instead of delighting them.

Listen to an insightful podcast by Brian Prows on MarketingVisions, now syndicated on iTunes.

California Department of Motor Vehicles Gets It Right

Have you checked out your local California Department of Motor Vehicles office lately? The DMV has streamlined  the "people flow" problem they faced for years. Combining a clean-looking website, online appointment scheduling and automated light boards and voice direction systems, DMV visitors spend significantly less time conducting routine business--driver's and vehicle license renewals, in particular.

Government agencies need to market their services just like commercial businesses and non-profits these days. Hard hit by a huge California deficit, the DMV is stepping up to the plate to raise customer satisfaction. When you walk into an office, you first see a "Start Here" sign and, if you scheduled an appointment, you're quickly on your way to the right window at the right time. Visual light boards, supplemented with an automated voice announce system, tell you where to go to register your vehicle or renew your license.

But the biggest improvement I saw today when renewing my driver's license is the staff. Not quite Google but the employees I met actually SMILED and took extra time to answer questions and be helpful. Heck, I even got my picture taken twice; so I assume the staffer didn't like the first one.

Compared to the "old" days of long lines and grumpy staff, the DMV has been hard at work to improve its service levels and image.

Only one comment caused me concern today. I asked a staffer with all the new automation why each DMV office couldn't produce laminated drivers' licenses. She said, due to immigration issues and employee information theft "problems," they still have to route everything through Sacramento.

So next time you're in a DMV office and see a DMV employee leaving with a laptop, immediately wrestle them to the ground. We don't need any further identity theft flowing from our government agencies.

The $99 Estate Check & Bank of America: Fixing Customer Relations

 
Let me tell you a story about my Mom's $99 refund check from Kaiser Permanente, a major health care provider in the United States, and why I firmly believe poor customer service is killing off companies faster than sub-prime mortgages.

Mom, who died in April, 2007, was enrolled in Kaiser's Senior Advantage Medicare program. Her monthly premiums were automatically deducted from her Bank of America checking account each month. Mom was a Bank of America customer for over 40 years.

After Mom died, since I held Power of Attorney, Kaiser continued mailing me monthly statements showing a balance of -$99. (Yes, the computer was programmed to send out negative balance statements to dead members.) Finally, after three requests, Kaiser issued a check for $99 to my Mom's "estate." Well, her estate, just before she died, consisted of a Bank of America checking account, which was closed last October.

I gathered the paperwork--a copy of Mom's death certificate, durable power of attorney, her will and, yes, the $99 check.  Thinking that my bank would deposit the $99 check into my account, I first went there. Answer: No way. The check's made out to her estate and we can't deposit it into your account, despite the DPOA and other paperwork. Suggestion from my bank's employees: take it to Bank of America. (No suggestion, by the way, about contacting Kaiser first.)

 Today, paperwork in hand, I walked into Mom's Bank of America branch and explained the situation to a bank employee: No way. "The account has been closed for more than 90 days and it's made out to her estate." The bank employee suggested I get a judge to "reopen her estate" and assign ownership of the $99 check to me. Second suggestion: "Why don't you visit Citibank, since they issued the check?" Again, no mention about contacting Kaiser.

"Surely," I said, "I'm not going to take the time for $99 to get a court ruling on such a small amount and CitiBank is probably going to refuse the check as you did." Long pause...

Then the cosmic customer service "do not say" sentence flowed from the employee's mouth. "Well, if you had an open account with us..." I stopped her, paused briefly and said: "Don't even go there. Don't even suggest that if I were a Bank of America customer this would solve my problem, because you and I both know it won't." That's when I asked for a manager. Response by the bank employee: "Well, I can let you speak with the Assistant Manager but he's going to tell you the same thing."

I was stunned. After a quick mental "Brian, don't say what you really want to say," I looked the employee in the eye and said: "My Mom was a Bank of America customer for over 40 years. She was loyal to your bank. When she died, she was still your customer. I would like to speak to a manager, even if the answer is still 'no.'"

While the B of A employee went off to find the manager, I called Kaiser, explained and resolved the situation. Kaiser will mail me a form. I'll return the old check and they'll issue a new one in my name.

One might say I should have thought about calling Kaiser myself from the beginning. Probably true. But that isn't the point. The issue, as I walked out of Bank of America, boiled down to LACK OF EMPATHY AND CUSTOMER SERVICE SKILLS.

Questions:

• Was my problem a customer service or marketing issue? For that matter, was it only MY problem? Despite my mother's 40 years with Bank of America, would a reasonable person believe that B of A OWED my mother and me something, even if bank rules prohibited accepting the $99 check?
• Is there marketing value in EVERY employee "going the extra mile" to solve customer issues? What are the consequences of poor customer relations?
• Am I likely to do business with Bank of America in the future? We've all read the studies: "for every bad customer experience, a customer will tell 8 other people about that experience."
• How much revenue will Bank of America lose based on my experience today?
• Have we reached a point in business where improperly trained and screened employees are allowed to destroy--rather than enhance--the customer experience?
• Who's responsible for the employee's interaction with me today? Could it possibly be the supervisors and managers who monitor, train and coach their staff how to RESOLVE CUSTOMER PROBLEMS?

Oh, by the way, I forget to mention that when my Mom's account was closed in October, the balance was a negative $56.42. "No problem," said the employee, "we just wrote it off."

Customer Billing and Follow-Up: A Competitive Advantage

A frequently forgotten part of marketing is customer billing. Companies of all sizes spend millions in advertising and operations to acquire customers and then drop the ball on billing. Marketers are hard at work stuffing bill envelopes with cross-sell/up-sell promotions, but most customers view bills with dread.

Why not impress customers with positive information--preferably just below the amount owed? Why not thank customers for their business? Why not create a multi-channel campaign incorporating the billing process, the MOST important customer communication channel?

Regular readers of this blog may notice a category called "customer service marketing." I've posted numerous times to it, focusing on how customer service impacts marketing effectiveness. I've praised some companies for excellent customer service. I've criticized others. Alas, poor customer service experiences are more memorable than good experiences. Here's another sad one. Sorry, AT&T Mobility, but it's you again.

While an AT&T customer for a week or two to test the iPhone and AT&T's overall service levels, I decided to port two lines back to Sprint, a company that's struggling under newly appointed Tzar Dan Hesse. See my AT&T retail posts: "Training Retail Sales People to Become Marketers and Delight Customers" and "'Call Us in the Morning: Why Customer Service is Failing.'" Read all customer service marketing posts here. In your spare time, take a look at "'Keep the Customer Satisfied:' Spread the Word" on Mobile Telephone Marketing.

My first AT&T bill, still showing the activation fees, arrived in late January. I immediately called AT&T, the CS Rep made the adjustments, told me the final bill and that it would be charged to my credit card on February 14th. The CS Rep was friendly and appeared knowledgeable about AT&T's billing procedures. The call ended on a positive note.

Fast forward to yesterday--February 28th. A past-due notice arrived from AT&T indicating I hadn't paid the bill and my closed account was re-opened. The letter warned me how my credit rating would suffer if I didn't pay immediately.

Back to the phone, again talking to a pleasant, seemingly knowledgeable rep, who was just as baffled as I about the bill, since the account was closed by me within seven days of activation. Oh, another twist. Because the bill was not paid on February 14th, AT&T added the $175 per line early termination fee, raising the total to over $450. Long and short of it: The CS rep offered to "send a message" to AT&T billing requesting a complete credit on everything and "someone" would call me during the first week of March. In other words, the CS rep was powerless to resolve the billing error on the first call. But she gave me a case number and "notated" our conversation, just like the first CS rep.

I even have a case number: xxx-xx-xxxx-x-xxxx-xxxx. (This is AT&T's form of Morse Code, apparently an improvement over tin cans connected by wires; after all, AT&T is in the COMMUNICATIONS business.)

Enough about AT&T. They're too busy, like Verizon, counting how much money they'll lose on the new $99 unlimited minutes plan.

MarketingBeyond's Recommendations for Billing Statements and Pro-Active Follow-Up

• Throw away the four-color inserts. Include the most important messages on a bill's front page, preferably near the total and due date. As more customers view their bills online, they won't notice the inserts anyway.
• Include a "We appreciate your business" on ALL bills, including past-due accounts. Eliminate the negative word "delinquent."
  
  • Use American Express' "member since ___" technique.
• Insert the following line--especially on newly opened or past-due accounts: "We realize that sometimes billing errors occur. We're here to help and would love to resolve any situation quickly. Feel free to call us at xxx-xxx-xxxx or email us by clicking here. We'll get back to you within 24 hours. We promise." Then, keep your word.
• Empower your contact center reps to resolve billing issues in one call. Have supervisors monitor calls to assess rep resolution performance.
• Train and reward reps who SOLVE CUSTOMER PROBLEMS. That's their job. Let them do it and recognize superior performance.
• Eliminate the negative, stupid phrase: "If you've already paid, please ignore this bill." It does nothing but irritate customers who've paid, indicates your billing system is on autopilot and will not persuade non-payers to clear the bill anyway.
• Create an outbound unit in your contact center to pro-actively call new and past-due customers to assess customer satisfaction and help customers resolve problems. This shows you care and seek an equitable resolution to all issues.
• Throw away the "we've improved our bill" inserts. If customers can't easily understand their bills, you've done a lousy job. Make it understandable. Make it a marketing collateral.
• Reduce the number of "customer survey" calls and emails about "your recent experience." AT&T contacted me three times after opening an account. The first was an automated IVR system, the second an email, the third a rep call from a research firm. Consumers are inundated with survey company communications. Put your money into one-on-one, personalized communications.

If you want an example of a company that's doing it right, read my post on American Musical Supply.

"Call Us in the Morning": Why Customer Service is Failing

The global economy is in trouble. No, it's not the sub-prime mortgage crisis, Wall Street greed, Microsoft trying to take over Yahoo, the U.S. Presidential race, $100+ per barrel oil, the war in Iraq, the iPhone or how much money you lost betting on the Super Bowl. It's the failure of customer service or, if you prefer, "customer care."

From a marketing standpoint, companies in the U.S. and overseas are not satisfying the people who drive economic growth and prosperity....and it's costing us BILLIONS of dollars (U.S., Canada), Euros (Europe), Yen (Japan), Renminbi (China) and Rupees (India) . Sorry if I missed your currency.

Today I Googled the following key words and listed the hits below:

"Customer Service" = 559,000,000 (that's nearly SIX HUNDRED MILLION hits)

Technical support" = 159,000,000

"Customer Care" = 74,000,000

"Online customer Service" =-25,900,000

"Customer Satisfaction" = 33,700,000

"Retail Customer Service" = 7,740,000

Let's compare the hits to the other things I mentioned:

"Subprime Mortgage Crisis" = 2,090,000

"Wall Street Greed: = 416,000

"Microsoft Yahoo Takeover" = 197,000

"U.S. Presidential Race" = 14,100,000

"Oil Barrel Increase" = 175,000

"War in Iraq" = 19,000,000

"iPhone" = 19,900,000

"Super Bowl Betting Loss" = 96,500

The totals:

Customer Service = 859,340,000 Hits

The Rest = 55,974,500 Hits

While this exercise may appear un-scientific, I think it shows what most concerns the public in the U.S. and abroad about customer service--or lack thereof. It's also astounding that interest in Apple's iPhone beat our the war in Iraq by 900,000 hits.

Customer service has frequently been referred to as "the sale after the sale." Marketers spend billions of advertising dollars to convince us to buy their products and services. Then, as I've previously written, companies lose or dismay customers instead of delighting them. Using my blogbar in MarketingBeyond, I found all my posts with the words "customer service." Read the posts at your leisure. They cover multiple industries and large and small companies.

Companies, clearly, are interested in improving customer service, satisfaction and loyalty. In fact, articles, blog posts and surveys probably represent a lot of the 859 million customer service Google hits. Smart companies want to deliver quality customer service. In many cases, they simply don't know how, or they become distracted by immediate profits demanded by stockholders, or fast growth overwhelms  them. The question is HOW DO WE DO IT? How can we grow our businesses by retaining customers? How can we delight them?

In addition to conducting customer surveys which, by the way, has reached epidemic levels (AT&T contacted me twice in the last few days alone), let me suggest that marketers EMULATE companies that are doing it right. Observe companies with high customer satisfaction levels and steady growth. Then INTEGRATE customer service practices into your business that you think will work. You may not bat 500 every time, but you'll be amazed at how small changes in your call centers, web interactions and email programs produce incredible results.

So...my nominations for companies with the best customer service and why:

1. Speakeasy, a Seattle ISP catering to SMB's. Speakeasy, a telecommunications company providing DSL broadband services, is growing fast. Why? They track every customer interaction from initial purchase to installation to post-installation. A trouble ticket is created online for EVERY issue and customers can login at any time to add comments. Turnaround time for fixing things is 24 hours or less.The ticket isn't closed until the customer is 100% satisfied. Speakeasy also emails a short survey to customers after each interaction with company staff. While I'm sure customers don't always fill them out, enough do to make it worthwhile. I'm a loyal customer and love their service.

2. Charles Schwab. I've been a Schwab customer since 1993. Wouldn't think of leaving them. They went through some troubled times, as all financial brokerage firms have, but Chuck Schwab returned to the helm in the past few years to straighten things out. Unlike other brokerage firms, they hire non-commissioned customer care representatives. Calls are answered promptly and the goal is a one call solution.  Schwab responds to customer emails within 24 hours or less. The company sends me daily emails on my accounts, offers me free online research information I'd have to pay a lot for, keeps me updated on the mutual funds I own and calls me periodically to see how things are going. Great company.

3. American Musical Supply, a provider of musical instruments, sheet music, software and everything musical. When I bought my Yamaha keyboard six months ago, they treated me like the most important customer they ever helped. After placing the order online,  I immediately received a confirmation email, then another email with a UPS tracking number, then a phone call to touch base and encourage me to call them when the keyboard arrived to help me set it up, followed by another email to see how I liked my purchase. They have since sent me their catalogs with discount coupons. I wrote a blog post here on AMS. Click on their name above to read it. Here's a company that is 120% customer-driven. Follow their model in your business and you're guaranteed not to fail.

4.T-Mobile. Considering how often the cell phone companies receive poor survey results on customer satisfaction, T-Mobile is at the top of my list. They hire people with superb communication skills and they train them that the customer is God. In particular, their technical support team is incredible. If a cellular problem can't be fixed on the first call,  the tech or customer service rep working with you CALLS you back. Unlike other carriers, T-Mobile has a non-supported phone department for customers who want to buy their own unlocked GSM phones for use on T-Mobile's network. They also offer a configuration tool online that automatically sends programming code to your handset so you can access the Internet, set up your email accounts and MMS messaging. Their retail store reps are the most knowledgeable about service plans and handsets I've ever experienced--and I've dealt with all of them.

5. Directv. Unlike Comcast, Directv's communications with customers is superb--via telephone or email. They were naturally busy during the Christmas season, but in my two years with them, they have answered my questions and dealt with issues quickly and professionally. Their email communications are especially good. If I had to knock Directv, it would only be their installers,  whose professionalism varies from o.k. to terrible. Otherwise, their CS reps express sincere concern about customer satisfaction. They don't try to sell you satellite packages that don't meet your needs. Wonderful company in a very competitive business.

Those are my nominations for best customer service for now.

Companies whom I believe have terrible customer service are:

1. Sprint (although they respond quickly to emails).
2. PayPal, whose reps keep apologizing in their emails for taking so long to reply.
3. Hewlett-Packard (their technical chat team is horrible. Read my post).
4. Target (read my post).
5. Microsoft (At least 20% per day of all MarketingBeyond blog hits is my Vista parody). Since Microsoft announced its desire to acquire Yahoo, a superb company, I no longer even want to talk about Microsoft's greed and poor customer service.

I encourage all marketers to delight their customers through superb customer service. Large or small, how you treat your customers before, during and after the sale will make you or break you.

Training Retail Sales People to Become Marketers and Delight Customers

I returned two mobile phones to AT&T today. (I'd ported over a couple of lines from Sprint to AT&T, after doing the iPhone review, but the Samsung BlackJack II that replaced the iPhone failed to meet my standards and another Samsung clamshell handset had echo problems.)

What continues to amaze me is the lack of proactive marketing by retail sales people to "save the account." True, I had already ported the numbers back to Sprint effectively canceling my AT&T account. But why didn't the retail person ask me penetrating questions about my decision. Here's how the conversation went between me (BP) and the retail rep (RR).

BP: "I've ported back two AT&T lines to Sprint and want to return the phones."
RR: (Silence, as I gave him the receipts and phones.)
RR (Silence, as he checked the SIM's against the phones, took out the batteries and brought up my account on his computer.)
RR: (Continued silence as he started initiating the refund to my AMEX card.)
RR: (Ah, he speaks..."May I ask why you're canceling?"
BP: "Yes, the iPhone didn't meet my requirements. With Wi-Fi, the browsing was great, but using your EDGE network, it was slower than molasses. I had hoped the BlackJack II would meet my PDA needs, but navigating the phone was difficult and your 3G network is slower than Sprint's EVDO network. Oh, the other Samsung flip phone had echo problems."
RR: (Silence, no questions....pause.....)
BP:  (BP pulls out his HTC Touch and shows the RR the display.) "Have you ever seen the Touch?"
RR: "No."
RR: "O.K., you can insert your AMEX card now for the refund."
BP: (Brian swipes AMEX card.)
RR: "Here's your receipt."
BP: "Thanks, bye."

If AT&T had trained this poor fellow, the conversation might have gone like this:

BP: "I've ported back two AT&T lines to Sprint and want to return the phones."
RR: "I'm very sorry to hear that. While it's probably too late to make a change, may I ask why you canceled? How did AT&T not meet your expectations?"
BP: "Yes, the iPhone didn't meet my requirements. With Wi-Fi, the browsing was great, but using your EDGE network, Web surfing was slower than molasses. I had hoped the BlackJack II would meet my PDA needs, but navigating the phone was difficult and your 3G network is slower than Sprint's EVDO network. Oh, the other Samsung flip phone had echo problems."
RR: "I see. We're aware many iPhone users want faster data speeds. Did you realize that our network people are working right now increasing the EDGE data download speeds? We're installing fast T1 lines at dozens of our towers in the Bay Area."
BP: "No, I wasn't aware of that." (Actually, I was, but you know...)
RR: "You mentioned using the BlackJack II was difficult to use and 3G was slow. What applications on the PDA were difficult to access?"
BP: "Well, Windows Mobile 6 works o.k., but the screen is too small to view my calendar, tasks and emails. So I kept having to scroll down. The keys on the BlackJack II are also too stiff."
RR: "I see. You know, the BlackBerry Curve has a larger screen and the keys are easier to push."
BP: "Yes, I agree. In fact, when I returned the iPhone, it was a toss-up between the BlackJack and the Curve."
RR: "You also mentioned our 3G was slow? What happened?"
BP: "I viewed a few videos that stopped several times until the buffer filled."
RR: "I see. Sometimes that can happen as you download. But otherwise, you find the 3G downloading Web pages and emails adequate?"
BP: "Yes."
RR: "I understand your needs a lot better now. As I mentioned, you've probably already made your decision to return to Sprint. But I can talk with my manager about letting you try out the BlackBerry Curve and a higher-end flip phone for a few days at no charge. We'd give you two new phone numbers so if you decide to stay with Sprint, that's o.k. Would that work for you?"
BP: "Well, I don't know. After the porting back to Sprint and all. It could be a hassle."
RR: "We could do it without a contract and at no charge..."
BP: "I see...well, I guess it's worth trying."

Wow! If AT&T had empowered and trained its RR's to "delight the customer" by making that offer, I might have done it. But, clearly, AT&T's training program and marketing philosophy is not adequate to the task. And in highly competitive businesses like cellular, marketers and sales reps need a re-alignment.

Speaking of re-alignments, the major reason I stick with Toyota is how well they treat me. Everyone at the dealership here in town is trained, measured and managed to "delight the customer." When I took my Prius in the other day, due to a battery problem, they didn't let me leave until the battery was fully-charged and they had thoroughly checked out the car's systems. Toyota goes the extra mile for me--all the time--and that's why I'm a long-term customer.

If you're in retail management, ponder my AT&T story. Train your reps. Delight your customers. And watch your business flourish.

P.S. Just as I wrote the last paragraph above, I received an email from AT&T: "Your Wireless Bill is Ready Online."

Postscript: How timely...15 minutes after posting this article, I received an automated "customer survey" call from AT&T, asking questions about my experience yesterday at the AT&T store. Perhaps there's hope.

Traffic Court: The Marketing of Justice in California

Today I went to traffic court in Alameda County, California, to clear up an unpaid $29 "administrative fee" California charges for traffic school. In July of last year, I got my first moving violation since high school for not yielding right-of-way. I had paid the fine and took the prescribed traffic school course--both online--but didn't see the $29 "administrative fee" shown on Alameda County's website. To remove the infraction from my DMV record, I had to appear in front of a judge and explain.

Around 9 a.m. this morning, about 75 traffic violators were herded into the courtroom as we waited for the temporary judge. Having never been in a traffic courtroom, I was expecting something like "Judge Judy" without the humor, until I started listening to the traffic violators' reasons for not paying their fines, DUI infractions, community service and, the strangest of all, the guy who claimed he couldn't make his previous court appearance because he was in the hospital with kidney failure. (That one was strange. I kept wondering if he would suddenly collapse and die in the front of the judge.)

Before going into some of the strange stories I heard, I must say the judge was cordial. After reviewing each file, especially if he couldn't figure out why the person was in court, he looked straight into the transgressor's eyes and, with a smile, asked "so, what can I do for you today?"--similar to a retail sales person asking a shopper "may I help you?"

While the experience differed a lot from buying a pair of shoes at Macy's, the judge's questions and demeanor made me think: "Isn't this marketing? Perhaps, forced marketing, but the experience had all the elements: A need or pain (in this case, protecting drivers and the public from dangerous people on the road); an offer (forced) to resolve the need (fines, community service, driving courses, jail), product & pricing strategies (running red lights was hot--and most expensive) and in our Internet age, the most sophisticated metrics and measurement systems on the Web. Government, indeed, is big business, requiring big marketing budgets.

In my usual style, here is a dialogue between defendent and judge I heard (true, not made up):

• Judge: "I see you ran a red light. Under section xxxxx, that's an automatic $350 fine. How do you plead?"
• Defendent: "Well, I guess not guilty."
• Judge: "Do you have pictures? (California takes a lot of automatic pictures with strategically located cameras.)
• Defendent: "Yes, but they're at home."
• Judge: "I should mention to everyone in the courtroom I'm willing to consider your case, but you must bring pictures."
• Defendent: "Can I go home and get them?"
• Judge: "I'll give you two weeks. Clerk, schedule the defendent for 2/15 at 9 a.m."
• Defendent: "Thank you, your honor."

During the break, while we listened to an audio recording about our rights and such, it became clear that the judge was taking the most serious cases first and seemed quite lenient about some extreme cases--failure to show up at previous court sessions, using pot while driving, expired or suspended drivers' licenses and young drivers with multiple offenses. The judge smiled a lot too (He definitely worked in retail--well, not Target).

Here's the good one (I added a little drama):

• Judge: "You're charged under section xxxxx for two moving violations, failure to appear and driving with a suspended license. How do you plead?"
• Defendent: "Well, I think guilty, but you must understand I was in the hospital for four weeks after I suffered kidney failure."
• Me: ["My God, man, are you breathing?"]
• Judge: "Well, when did this happen?"
• Defendent: "Just before my court appearance."
• Judge: "Why were you driving with a suspended license?"
• Defendent: "I had to drive to the hospital."
• Judge: "But you failed to appear in court on the first charge before you went to the hospital."
• Defendent: "Yes, you're right about that one."
• Judge: "So?"
• Defendent: "So, what?"
• Judge: "Why didn't you appear on the first charge?"
• Defendent: "Well, you see, Judge, it's like this. My Mom isn't too well, and I had to drive to take care of her."
• Judge: "So, you drove to see your Mom with a suspended license?"
• Defendent: "Sort of...yeah."
• Judge: "Was that on the same day you received your second violation?"
• Defendent: "Yes, I was in such a hurry to get to my Mom's, I must have driven too fast."
• Judge: "Says here, you were driving 50mph in a 25mph zone near a school."
• Defendent: "Really?"
• Judge: "Yes."
• Defendent: "So..."
• Judge: "So, why?"
• Defendent: "Well, you know..."
• Judge: "Know what?"
• Defendent: "Why I did it."
• Judge: "Did what?"
• Defendent: "Drove too fast."
• Judge: "To get to your Mom's."
• Defendent: "Right."
• Judge: "So what happened?"
• Defendent: "She wasn't home."
• Judge: "Where was she?"
• Defendent: "At the hospital."
• Judge: "So you drove then to the hospital?"
• Defendent: "Right."
• Judge: "That's when you got the second ticket?"
• Defendent: "Yeah."
• Judge: "...Driving 60mph with a 40mph limit."
• Defendent: "Close...I think it was 58mph."
• Judge: "Do you realize how dangerous it is to drive so fast?"
• Defendent: "Absolutely."
• Judge: "So why?"
• Defendent: Why What?"
• Judge: "Your speed..."
• Defendent: "Oh, I wasn't taking drugs."
• Judge: "No, your driving speed."
• Defendent: "Oh, right."
• Judge: "Right, what?"
• Defendent: "I was driving fast."
• Judge: "So, why?"
• Defendent: "To get to the hospital."
• Judge: "...due to your Mom."
• Defendent: "Correct."
• Judge: "So, what happened?"
• Defendent: "Oh, my Mom was o.k. That's when I had kidney failure."
• Judge: "Dismissed."

At least half of the driving violators today were re-scheduled for a follow-up court appearance.

Paying Off California's Deficit With Unused Gift Cards

Mike Antonucci's "The Gift-Card Giveaway" in the San Jose Mercury News indicates there's nearly an $8 BILLION cash float of unredeemed gift cards in wallets and purses in this country.

According to research, 56% of gift cards are redeemed within the first month of purchase...85% within three month [and]..."49 percent of the people...recently surveyed had at least one gift card that remained partially or completely unused." 

In the Bay Area, 56 percent of people had partially or completely unused cards...and 12 percent had more than five unused cards. And guess who's holding on to the cash "in escrow" until the cards are redeemed? The issuers: retail stores and Visa, Mastercard and American Express.

Since California--our largest state--faces a $14B deficit for the coming year and Arnold
Schwarzenegger, our governor, is proposing massive state cutbacks in education, state prisons, parks and other necessary state services, I have an idea. Clearly, gift card holders, many keeping the cards for a year or more, are not dying of starvation--and businesses that issue them are earning interest.

Therefore, I propose the following:

1. Gift card holders who don't redeem their cards within six months give them to the state treasury effectively reducing the state deficit. (This includes everyone in the U.S., of course, since all citizens benefit from California whenever you see a movie, login in to your favorite social networking site, visit Disneyland, buy a computer, etc; plus we Californian's pay more in Federal taxes than what we get back.) You should be gleeful to give us your unused gift cards.
2. Businesses that issue the cards and earn interest from the cash float contribute 10% per year of un-redeemed card value to California.
3. Arnold, who is worth millions and probably carries a few cards himself, contributes ten times the value of his un-redeemed cards quarterly. (We need the money fast.)
4. Lobbyists, who got California into this yearly deficit mess, pay three times the value of their unused cards to Arnold, et al in Sacramento.
5. Our state legislators, who clearly can't balance a budget, contribute five times the value of their unused cards. They must also take Econ 101 at one of the state's colleges or universities.

How, you ask, will we track the cash float? Well, it's actually quite simple. American Express, other credit card companies and businesses who love tracking people have proposed RFID--radio frequency identification tags with embedded transponders in credit cards, products and, for that matter, in people. So, all gift card  issuers use RFID technology.

Since we need enforcers (California always needs enforcers), I propose the creation of the Gift Card Consolidated Tracking Agency (the GFCTA), a new department that will set up shop across the street from the California state capitol.  That way, Arnold and the legislators are reminded how much money they'll lose by overspending. Visa, American Express and any other credit card company issuing gift cards with an added "service charge" fund the new agency.

The GFCTA will track all RFID gift cards with the help of Google's latest  Gift Card Tracking Super Server (GCTSS) located, guess where, at the GFCTA offices in Sacramento.

A twenty-foot wide electronic display panel, affixed to the front of the GFCTA's bulding, will act as a constant reminder to legislators, lobbyists, school children visiting the Capitol and others about the total cash floating in people's pockets in the form of gift cards.

At the six month mark, GFCTA, working with the state treasurer,  will notify gift card holders they have one week to use their gift cards or mail them to the GFCTA who, in turn, will transfer the funds to the state treasury. Uncooperative gift card holders who refuse to mail their unused gift cards will be billed on their next Federal tax return and must complete an online civics course.

There you have it, folks. It's time to get serious about the gift card float, and I can't think of a better state to control the float than California, the land of milk and honey...and deficits.

Need Prescription Drugs? Health Plan Marketing Mania

Reading my new Blue Shield of California HMO drug plan is like watching Robin Williams do a stage solo.

"Drugs?....yes, we have them. The copay? Well, let's see. Generics are $XX, formulary brand names $XXX, non-formulary brand names $XXX. Of course, that's after paying your yearly deductible of $XXX. Oh, and don't forget that before we'll cover brand names x, y and z, you must try generics a, b and c.

"If there isn't a generic equivalent for name brands, that's too bad. Just pay the brand copay. Remember, Green Cross of Idaho is always happy to answer your questions. Have you tried our website at www.GreenCrossIdaho.com? You'll find all your answers there. But if you must call us, remember we only answer the phone from 8A-5P, except on the second Friday of each month when we throw a lunch party for the call center reps. Leave a message and we'll call you back."

According to the U.S. Labor Department, prescription drug price increases are slowing as more consumers choose generics. But group and personal health plan premiums, copays and deductibles continue to rise as health care consumes an increasing part of the U.S. GDP. Health Care GDP is now 15% and is expected to rise to 19.6% by 2016.

As the population ages and pharmaceutical manufacturers release new medicines, drug costs will continue growing. While simplifying pricing strategies may not reduce higher member  contributions, consumers would at least better understand what they're paying for and why.

Shipping-Based Pricing Strategies, Cuisinarts and Amazon.Com

We continually read about Ecommerce's growth while brick and mortar's lose business. But what if you need a product NOW? What if you can't wait for 3-5 days? And how do etailers maintain customer retention when brick and mortar stores can supply a product you need today? Bottom line: Should etailers adopt shipping strategies for critically-needed products? Is there room for customer based marketing on the Web?

I thought about this dilemma today after I broke my Cuisinart carafe. After uttering "Oh, s.....", reality set in. "No Starbucks tomorrow morning, Brian." Unless I could find a replacement carafe quickly--like NOW--it's green tea for breakfast. Off to the Internet for some Googling.

After checking out carafe availability and pricing on the Web, I found my replacement carafe for $25 at Amazon.com, an etailer that takes a lot of my cash each year. "But, wait," I told myself, "I need the carafe el pronto--not days from now. My blood caffeine levels would plunge leading to blocked neurons."

Amazon.com wanted $19.97 for one-day shipping--almost as much as the cost of the carafe. Amazon also tried its usual cross-sell (coffee filters, grinders, etc.). They even wanted access to my checking account for a $500 Amazon gift card contest. Then Amazon hit me up again for their "prime" program where you pay $79 a year for two-day "free" shipping on most items.

Don't the marketers at Amazon realize that customers need a carafe replacement immediately, while they can wait a week for an electric toothbrush, book or CD? And shouldn't Amazon and other etailers offer lower overnight or second day shipping to loyal customers who consistently buy from them? Amazon would have delighted me, as soon as I selected a coffee carafe, if I had read the following:

"Brian, we realize you probably need a replacement for your carafe immediately. Because of your loyalty and Amazon purchases, we'd like to offer you lower overnight shipping of your carafe for only X$. If that's acceptable to you, please click here. We appreciate your business."

The end of my story? I found a carafe replacement at Bed, Bath and Beyond three miles from my home. When I called, a nice gentlemen told me my carafe was available and the store was open until 9 p.m. As soon as  I walked into the store, two smiling employees welcomed me and, even though I didn't have a 20% off card, a courteous clerk told me I could get the discount on my purchase the next time a coupon arrived in the mail. I walked out of BBB a happy camper, eagerly awaiting my morning coffee, and wondering why Amazon.com didn't make me feel so appreciated.

E-tailers, think about shipping-based pricing strategies and continually improve the customer's experience on your websites. Embrace customer service marketing principles and reap the benefits of delighted customers who can't wait to buy from you.