Online & interpersonal customer service
The McKinsey article shows the importance of using digital tools for marketing in today's world. It says that 93% of respondents reported frequent use of digital tools in service management, and 76% reported frequent use of sales management. As I went on thinking about examples in real life, I find that although it seems that everything can be achieved online, there is still a tricky part in it.
For example, when my roommate and I moved into our apartment a year ago, we installed time warner basic cable and Internet services under my name. About six months later, I received a phone call from their customer service saying that there was a promotion of getting a primary channel free of charge for six months, and I accepted it. The channel was installed on the TV in the living room, where neither of us really spend anytime watching. So after six months, we decided to cancel the channel and save the additional cost. I assumed that I could just do this online, but when I went to their customer service website, I found that there was only an "add a service" option there. So the only way I could cancel the service was to make a call and talk to a sales representative, who didn't sound so happy after getting my request. I did cancel the channel successfully, but when I talked to a friend about it, she told me that when she called a few days ago to cancel everything, the sales representative spent an hour trying to talk her out of it. At last, the sales representative agreed to give her another six months of promotional price, and she apparently gave up her original request.
I don't know if any of you had the same experience, but I think time warner is the only one that I encountered as not having a "cancel your order" beside the "make an order" function on their website. This experience leads me to think about the customer loyalty discussion a few weeks ago. In this case, is customer loyalty created by our true preference of time warner or because customers are simply tired of bargaining in phone calls? From the business's standpoint, this strategy may be described as successful in keeping customers, but as a customer, I can only say it's pretty tricky. Is this going to be beneficial to the company in the long run?
For example, when my roommate and I moved into our apartment a year ago, we installed time warner basic cable and Internet services under my name. About six months later, I received a phone call from their customer service saying that there was a promotion of getting a primary channel free of charge for six months, and I accepted it. The channel was installed on the TV in the living room, where neither of us really spend anytime watching. So after six months, we decided to cancel the channel and save the additional cost. I assumed that I could just do this online, but when I went to their customer service website, I found that there was only an "add a service" option there. So the only way I could cancel the service was to make a call and talk to a sales representative, who didn't sound so happy after getting my request. I did cancel the channel successfully, but when I talked to a friend about it, she told me that when she called a few days ago to cancel everything, the sales representative spent an hour trying to talk her out of it. At last, the sales representative agreed to give her another six months of promotional price, and she apparently gave up her original request.
I don't know if any of you had the same experience, but I think time warner is the only one that I encountered as not having a "cancel your order" beside the "make an order" function on their website. This experience leads me to think about the customer loyalty discussion a few weeks ago. In this case, is customer loyalty created by our true preference of time warner or because customers are simply tired of bargaining in phone calls? From the business's standpoint, this strategy may be described as successful in keeping customers, but as a customer, I can only say it's pretty tricky. Is this going to be beneficial to the company in the long run?
posted by Lei @ 8:04 PM
2 Comments:
At 9:01 PM, February 18, 2008,
Anonymous said…
I wonder how nonprofits can use this to their advantage. I am thinking a more heavily defined electronic/technological world could actually be much more cost effective. Streamlining to online for donating, volunteering, joining, scheduling payments or volunteer shifts, sending email or requests for information, etc. could cut down on the amount of human work needed, therefore reducing expenses.
The more technology and electronic communication used, the faster and easier it is to get the message to the masses.
Time Warner is a huge corporate entity and they have figured it out... maybe smaller non profits can use the same rational. Make it easy to sign up and then difficult to opt out. Talking to someone about an emotional issue is easier to get them to spend money on your organization.
At 9:53 PM, February 18, 2008,
Jon Pharr said…
The Nonprofit I am working with: Meals on Wheels in Wake County has a great website and is utilizing it effectively. They are not trying to inform or make contact with the people who use their service each day but rather friends and family members as well as anyone else interested in the organization. After adding a way for companies and individuals to donate online, MOW have received an increase in donations. It is easier for people to give money and without having to spend time talking to anyone on the phone or mailing anything, more people are willing to give.
The director talked about understanding their target audience and this is something they are doing well. MOW in Wake County has a user-friendly website with organization facts and contact numbers located with easy access for any internet user.
As for Time Warner, I know plenty of people switching to Satellite services in order to avoid anymore contact with there customer service. Cable has dominated for years as they have been around for decades, but as satellite companies become more respected, more people will make the switch. Time Warner’s horrendous customer service only adds fuel to the fire. My roommate and I are switching for this very reason and also because satellite is surprisingly cheaper. I don’t think Time Warner has figured anything out and are going to loose a lot of money in the future.
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