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Customer Advocacy - The Continuing Journey
by
Craig Bailey
Customer Advocacy is a journey, not a destination. So far in this
series, we have defined what Customer Advocacy is and isn't, and we
have discussed the required skills and abilities of the successful
Customer Advocate. In this article, we will begin discussing the process
framework to ensure a level of discipline, methodology, and most
importantly, continuous improvement in addressing critical customer
issues.
The Customer Advocate process framework involves the following:
- Customer segmentation
- Engagement process
- Escalation process
- Response planning, analysis and execution
- Managing the customer experience through resolution
- Internal management review
Customer Segmentation
The first step in determining how best to align Customer Advocate
resources to "respond" to customer situations is to define (or leverage)
your customer segmentation model (see
Issue #22 for a broader discussion of customer segmentation). The
reality is not all customers are created equal. If you haven't read
"Angel Customers and Demon Customers" by Larry Selden and Geoffrey
Colvin, get a copy.
Every customer deserves an "appropriate" level of support. However, not
every customer deserves the "same" level of support. A strategic account
(based upon name recognition, revenue and/or breadth of products
purchased) may warrant your most seasoned resource(s) being 100% dedicated
to addressing situations that impact the account. A client on the other
end of the spectrum (that provides minimal to no profit margin - yes, they
exist at your firm too!) may simply need to live with standard operating
procedures. Alternatively, you may wish to engage "less-seasoned"
resources on those accounts that are on this end of the profitability
spectrum.
How, then, do you make the customer advocate "offering" available to your
customer-base? We typically suggest one of two approaches, depending on
the need and resource availability.
-
Offer to the entire customer-base, or a specific
subset thereof - Make the customer aware that "If ever you feel we are
not meeting your expectations, or that an exception has occurred and our
standard operating procedures have failed you, feel free to engage a
customer advocate." Of course, you will want to couch this with a
statement about your commitment to quality and responsiveness. Remember,
we are covering this subject because the savvy customer already knows
there are challenges and exception situations that DEMAND a customer
advocate. So, put it out there along with your commitment to
continuously improve.
-
Only engage a customer advocate when specific account
situations warrant such a response.
Engagement Process
Now that you know which customers warrant the engagement of a customer
advocate, we will now discuss the process for doing so. Basic guidelines
that we recommend include the following:
-
Employee observes a troublesome account situation.
This may include the customer expressing comments such as:
-
"I've already
spoken to 3+ people at your firm. I'm sick of re-explaining myself."
-
"Who then, CAN I
talk to, to resolve this issue!?"
-
"I'm going to
cancel (sue, etc.) if this issue isn't resolved IMMEDIATELY!"
-
"We have been
unable to conduct business for several hours."
-
Customer expresses extreme dissatisfaction in the
context of a survey.
-
Customer specifically requests that a customer
advocate be engaged.
The next step is
determining when (time of day, or night) to engage a customer advocate.
For urgent matters (the customer is "presently impacted" / unable to
conduct business, etc.), it is appropriate to engage a customer advocate
on a 24x7 basis. For non-urgent matters (which may include responding to a
situation that has since "passed" for which the customer demands a get
well plan assuring it will not recur), engaging a customer advocate during
normal business hours may be fine.
The final concern with regards to the engagement process is determining
when it is appropriate to disengage. This agreement should be established
with the customer up-front. This is accomplished by first confirming with
the customer the true nature of the situation and what it will take to get
things back on track. Next, set the expectation with the customer that
once this issue is resolved AND irreversible corrective action has been
put in place, standard operating procedures should again suffice. At that
time, but not until then, the customer advocate will disengage. In
summary, you don't want the customer advocate to become the de facto
account manager; there needs to be a clear beginning and end of the
process.
While there are other considerations and nuances, the above framework will
get you started with your Customer Advocate engagement process.
In the next edition we will cover other aspects of the process framework.
And, in subsequent editions, we will share how to take Customer Advocacy
to the next level by getting into the hearts and minds of your customer to
build long-lasting, mutually profitable relationships.
As always, if your firm has a need (acute or otherwise) that warrants a
Customer Advocate capability, feel free to give us a call. We would be
happy to brainstorm with you and share practical approaches to consider
and pitfalls to avoid in implementing Customer Advocacy at your firm.
Admission of a problem is the first step to recovery!
View previous articles in this series.
Southwest Airlines:
Helps MY Bottom Line
by
Craig Bailey
This article
continues our series highlighting Southwest Airlines, a firm that
demonstrates the characteristics of being customer centric and reaps the
benefits of doing so. To review prior articles on this topic,
click here.
After considering the many positive aspects of doing business with such a
customer centric firm, it is now time to share how SWA helps MY
bottom-line. I cover this topic last, as SWA is often viewed as ONLY a
"low-cost" airline, when they are so much more.
Being a business owner and head of a larger than average household, I am
especially sensitive to expenses and select the most cost effective
options to meet my travel needs. SWA comes through again.
Great pricing - always
SWA offers great pricing at all times, including same day travel. With
that said, they continuously offer promotions to get butts in seats. And,
obtaining a last minute ticket does assume that seats are available.
Consistently great pricing enables me to maintain flexibility in my travel
schedule without the anxiety of paying exorbitant prices if I need to book
my trip inside of 10 to 14 days of the desired travel date.
No penalties - ever
When the inevitable occurs, and my travel plans change, there is no
penalty to change with SWA. I can simply apply the funds to future travel
plans.
A final perk
Throughout this series, I have covered many of the perks of traveling with
SWA. The final one to share is the little perk that accompanies each free
ticket earned: drink coupons. At your option, you are entitled to 3-4
drinks (beer, wine or mixed drink) of your choice - for free! Just don't
burn through all your coupons at once, as SWA is not responsible for your
post-flight activities :-)
In summary, we have covered a number of ways that Southwest Airlines has
tailored its business model to meet the needs of its customers, resulting
in their achievement of consistently high levels of profitability in a
battered industry, while creating loyal, and in my case delighted,
customers. Consider this, in contrast to the approach of other firms
(maybe even yours?) where all decisions are focused purely on the
bottom-line or made from the inside looking out.
SWA's simple, no hassle model not only pleases customers, but it is much
easier and cheaper to maintain. Instead of focusing on corporate
efficiency, SWA focused on the customer, which RESULTED in corporate
efficiency and profitability.
The final article in this series will share concrete evidence as to why
other well-known airlines are in the toilet, learned first hand while
traveling recently to a city that SWA doesn't (presently) serve. Names
will be changed to protect the guilty...
If you are interested in learning pragmatic approaches to achieving the
benefits resulting from being a customer centric firm, feel free to give
us a call (barring airline employees).
View previous articles in this series.
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Contents
+ Customer Advocacy - The Continuing Journey
+ Southwest Airlines: Helps MY Bottom Line
+ Recommended Reading
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Presentation
Available
Visit
CCI's website to download Positive Power Influence, presented
by Craig Bailey at the Project Management Institute's (PMI) Mass Bay
Chapter Career Development Day on May 14, 2005.
Recommended Reading
This issue we
recommend the book
"Angel Customers and Demon Customers" by Larry Selden and Geoffrey
Colvin.
Every organization has them, including yours. We may know this
intellectually, if not based upon the day-to-day interactions that we have
with our customers. However, if you'd like to understand more concretely
those customers who are creating shareholder value vs. those who are
destroying (yes destroying) shareholder value, this book tells you how.
You will learn how to:
-
Rigorously track your profitable and unprofitable
customers
-
Manage your entire portfolio of customers to maximize
shareowner value
-
Place customers and customer segments at the center of
everything you do
-
Assign bottom-line responsibility for the
profitability of each customer to a single individual
Get smarter about
mergers and acquisitions
Reader-Input Incentive Program
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About Customer Centricity, Inc.
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key operations functions.
In short, we align the resources of your organization to exceed your
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