Creating Customer Touchpoints

Kids playing Red Rover

When was the last time you played Red Rover? The game is quite simple. You create a chain of people who hold hands (roughly at arm’s length from each other) and the other team tries to break the chain of people. Breaking through the chain is usually quite easy. The connections just aren’t that strong. They could be stronger if you were able to lock forearms with the people on either side of you. That would make breaking the chain harder. Now imagine for a moment that each person in the chain has four arms so they can make two connections on either side. Suddenly, the chain gets much stronger. The chain would be almost impossible to break if everyone simply hugged. It’s quite the challenge to run through two people and split them up when they’re hugging, let alone an entire chain of people. Go ahead, try it. I’ll wait…

Everyone OK? Great!

Companies need to create more touchpoints and connections with customers, then work on strengthening those connections on a regular basis. It’s not about providing customer support in disparate environments with no proper communication channels in place; that could very easily get out of hand. But it is about making sure that you’re accessible and available through different mediums – focusing on those mediums that your customers use. And not just for customer service. Being present and visible is important. Customers like to see that the founders and employees of companies they work with are out there, interacting and participating. It adds confidence and builds brand. Think about touchpoints when you work on developing customer service initiatives and policies around employee use of social networking-type tools. The more touchpoints, the better.

And just like the game of Red Rover, it’s not just about how strong a connection you have with the person on either side of you, but how strong the other connections in the chain are as well. If there are weak connections in that chain, your team loses. Companies need to create more touchpoints and connections between customers. That will strengthen the entire ecosystem that exists around the company, helping customers, and benefiting the company significantly.

image courtesy of shutterstock.


Great Customer Service Drives Revenue and Profitability

Too many people look at customer service as a cost center, when it really should be a profit center.

I recently read B-A-M!: Delivering Customer Service in a Self-Service World and it’s an important refresher and reminder of the importance of great customer service. Customer support is something I’ve obsessed over for many years.

The authors say it very clearly, and I’ve said it in the past as well, “Customer service is generally so bad that even a slight improvement can be a huge competitive advantage.” Customer service is critical for client retention as well.

Here are 9 important reminders + revelations from B-A-M!:

  1. Tie customer service to revenue & profits. Barry Moltz and Mary Jane Grinstead (authors of the book) make it very clear that the nice, fluffy, altruistic reasons for providing great customer service aren’t enough. You have to tie the support you offer to revenue and profits. That starts by understanding the economic value of each customer, and then understanding how customer service is implicated in generating that revenue (and future revenue). This is all about cold hard cash.
  2. Proactive support is key. In many cases, responding after a problem has emerged is too late. In that circumstance you tend to be dealing with angry people. But proactive support is all about reaching customers before the shit hits the fan, alerting them to problems, or reacting to what you see in terms of product usage. So look at what metrics you track on usage, and use those metrics to trigger proactive interactions with customers. For example, you might find a customer isn’t using your product a lot. Having that as a metric versus baseline usage (or expected usage) is a great way for customer support to reach out and ask, “Why? And, how can we help?
  3. Think of customer service as a feature. The more you think of customer service as an intrinsic feature of your product and not some ancillary thing you “have to do”, the better you’ll be.
  4. Think of customer service as part of your brand. You don’t get to define and control your brand like you used to. Your customers, prospects and users have taken it over. And that means how you service people has become a huge part of your brand awareness and value.
  5. Tie customer service to surprise. I’m still obsessing over Surprise and its uses and implications for Web businesses. Surprise should be incorporated into your customer service initiatives. This shouldn’t be done by “under promising and over delivering” (I agree with the authors of the book – this is bogus). But it can be done in a much more subtle (and proactive) way. Matt Brezina, founder at Xobni, calls at least one customer per week to stay close to his customers and make sure things are going well. That’s smart for customer service, word-of-mouth marketing, brand building and PR.
  6. Consistency is key. You want every interaction a customer has with your company to be very similar. You don’t want customers having a great experience one day only to be hugely disappointed the next. That inconsistency will make any great customer service you provide a moot point. This means investing significantly in training your staff and having well thought out policies in place.
  7. Empower your people. Customer service people are treated like shit. The jobs are often low paying and the work isn’t easy. You need to empower these people to make decisions on-the-fly and respond effectively to customers. If every “tough situation” results in escalation to managers, you’re going to eat into profits and have more frustrated customers.
  8. Loyalty programs work. The book has a section on using loyalty programs. They do work. But just to remind us that Barry and Mary Jane aren’t hippie socialists trying to kill companies by forcing them to spend all their money on customer service, I had to include this quote:

    “Let’s be clear. We appreciate loyalty. Companies that treat customers with dignity and respect want to reward that loyalty–but the primary purpose of loyalty programs is to create velvet handcuffs to lock our customers in and have them come back even when they have a choice.”

    Velvet handcuffs. Gotta love it.

  9. You should sweat the small stuff. The authors point out that even “…tiny slivers of a customer’s total experience has the potential to affect the big feeling the customer has for the company.” This speaks to the issue of consistency, and the importance of each and every customer interaction for the overall success of your customer service initiatives, and ultimately your business.

B-A-M!: Delivering Customer Service in a Self-Service World is a fairly quick read with some very good reference material / checklists at the back. In my mind we still have a lot of work to do in terms of elevating the importance of customer service inside the hierarchy of organizations. Too often, customer service is an afterthought, something scrambled together piecemeal to deal with customer complaints. That’s simply not good enough.


Where’s the WOW! in Retail Stores?

Closing Store

Most retail experiences suck. They just do. It’s rare that I go into a store and leave feeling amazed. I might be happy with what I bought, but beyond that, the experience is usually “Meh.” And some retail experiences are so bad that you leave the store angry, even if you did buy something that you went in wanting.

Chris Brogan recently complained about a particular retail experience and the discussion is heated to say the least. For that reason alone I think it’s worthwhile; it’s good for these sorts of things to get aired publicly on a popular site like Chris’ blog.

I haven’t had any atrocious retail experiences recently, but it’s bound to happen with the Holiday Season upon us. But while on a recent shopping excursion with my wife, I couldn’t help but think that retail stores could do so much more to attract, engage and excite people. Like in the world of startups, there are too many “me too” retail stores, and they do nothing to really stand out, be memorable and generate critical buzz for themselves.

So here are some thoughts / ideas / ramblings on the retail experience:

It Starts with the Brand:

The brand in retail is so insanely important. This just can’t be overstated. Retail stores & companies have to stand for something more than their product. In fact, they’re not really selling their product at all — they’re selling something else. An experience. A belief. A higher purpose. S-O-M-E-T-H-I-N-G.

My wife recently received a gift card from lululemon. It came in a small bag. On the bag it says:

“lululemon athletica creates components for people to live longer, healthier and more fun lives. If we can produce products to keep people active and stress-free, we believe the world will become a much better place.”

And here I thought they sold overpriced pink sweatpants. Clearly they don’t. The bag has a bunch of sayings on it, things like “Do one thing a day that scares you.” And, “Life is full of setbacks. Success is determined by how you handle setbacks.” And, “Creativity is maximized when you’re living in the moment.” Damn! Now I want a pair of pink sweatpants!!

That’s a brand.

Brands don’t live forever, they need to evolve and fight to stay relevant, but they sure do have a huge impact.

You Can’t Compete on Price:

Retail Sales

One of the stores we were in was having a 70% off sale. The place was packed. But that’s at 70% off. I wonder what it looked like at 25% or 50% off? Most retailers are already offering that level of sale a few days into a new season. And what happens when 70% off isn’t enough? Now I want 80% or 90% off. Price isn’t a competitive advantage anymore. And it’s certainly not an advantage that smaller retailers can leverage. Walmart = Low Prices. You can’t win that game. So what else can you offer?

The Element of Surprise!

Retail stores should be leveraging surprise. I don’t even think it would be that hard. Surprise drives word-of-mouth — and that’s what stores need. They need lots and lots of people talking about them. I had a couple simple ideas while I was shopping:

  • Hourly giveaways. Get a megaphone, a stool and some tickets. Hand out tickets to people in the store. Every hour, stand on the stool and call out ticket numbers. The winners get $50 off their purchases right then and there. That’s not a sale, or competing on price. It’s just fun and a surprise. You can make it even more fun by doing it at random times. And don’t just use boring tickets, print nice tickets with something meaningful on them (tied to your brand.) It becomes something that everyone in the store collectively experiences and enjoys.
  • Cross-store promotions. Instead of offering people a coupon or discount on their next in-store purchase, why not offer them a deal at another store? And have that other store do the same thing for you? Two non-competing but related stores could increase the foot traffic between them and build some nice loyalty.
  • Play 20 Questions. Guys always dread the questions they get from their significant others: “Does this make me look fat?” “How is this color on me?” “Do you think this is too long? Too short? Too tight? Too baggy?” A smart clothing store would print out cards with answers to these commonly asked, often feared questions with great answers such as, “You look gorgeous.” “That color doesn’t do your beauty justice.” “I don’t know, but I love you.” “Just buy a shorter skirt to go with the longer one, so you have plenty of variety.” I’m being a bit ridiculous here, but in no way trying to be condescending to anyone. Everyone would know it’s a joke, but they’d get a laugh out of it, and I guarantee you it would get people talking.

Honesty is the Best Policy:

I actually saw this in action — A woman walks up to a salesperson and asks, “Does this look good on me?” Since she’s already asking we can assume she’s uncertain. Most of the time I’ve seen salespeople say, “Of course! It looks fabulous.” (Translated: Buy! Buy! Buy! And buy some more. And get out of my face. Unless you’re buying right now!) But the salesperson in this case replied, “Actually, I don’t think that suits you…” And then she followed up with a very reasonable, seemingly honest explanation. The woman kept nodding in agreement; she just needed support in her non-buying decision.

You can bet the woman was happy that she was “talked out of the purchase” (instead of going home, doubting herself and being frustrated by a pushy salesperson). You can also bet that the woman spent more time in that store, bought more stuff and told her friends about the great, honest service. For the scorekeepers among you, that equals: Engagement + Money + Word-of-Mouth. That’s like a Holy Trio..

Motivate Employees:

The employees in a retail store are so important. You can have the best brand, marketing, word-of-mouth in the world, but if you get one lousy, unresponsive or grumpy employee you – as the consumer – walk out pissed. And when you’re pissed you complain a lot. We tend to complain more publicly than praise.

In two stores I was in over the weekend I was being “processed” by employees who were asking other employees about taking breaks. One employee was ringing up my stuff and asked the girl next to her, “If you work 10 hours how many breaks do you get?” And I care, because?

Motivating low-paid employees in retail stores has to be tough. But we’ve all experienced great service in shops and restaurants where the employees make all the difference in the world. So figure this out. And fast.

Retail Experiences Don’t Have to Suck:

It’s really as simple as that. Some of the retail experience is challenging. I think motivating employees might be one of the hardest things to do on a consistent basis. Brand building is too. But there’s no excuse for not building a brand, finding strong (and real!) differentiators, integrating in exciting marketing with surprise, and pushing your staff to perform on a consistent basis. (Incidentally, there are critical lessons here for all businesses and startups.)

I know there are great retail stores. And I’d love to hear your positive experiences (as well as your negative ones.) I’d love to hear your ideas on how retail stores can put the WOW! back into their existence.

images courtesy of shutterstock


About Ben Yoskovitz
I recently joined GoInstant as VP Product. GoInstant changes how we use the web, making it shareable like never before.

I'm also a Founding Partner at Year One Labs, an early stage accelerator in Montreal. Previously I founded Standout Jobs (and sold it). I'm a hands-on startup guy, helping companies grow successfully from the idea forward. You can reach me at byosko at gmail dot com.

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The opinions and commentary on this site are mine and mine alone. They do not necessarily reflect the opinions or positions of my employer, GoInstant.