Hi Scott,
A lot of books tell me to invest more on customer service by offering returns and unconditional refunds, etc. and give a memorable shopping experience to my customers. But how should I cope with serial returners, or customers who abuse the service?
Do we always assume people are good and there are always more genuine shoppers out there?
- Barbara
SCOTT FOX'S ANSWER
Hi Barbara,
"The customer is always right" is a common maxim in business. This applies even more strongly on the web because of what I call the "Internet Invisibility Principle." Here it is:
Your online store is effectively invisible to the customer once they leave your web site or mailing list. This is a key difference in online business from traditional bricks & mortar retailing. Unlike in the "real" world, former customers will not drive past your shop each day or naturally return to your neighborhood to buy groceries.
This means that your customer relationships ARE your business in the online world. The permission you have from your opted-in subscribers and purchasers, their trust in you to deliver the products you promise, and their attention to your marketing messages are 100% of both your present and future revenues.
This is why, despite the pain and possible expense, most customer service experts recommend accomodating customers as much as you can afford to, and even more so online. The alternative is that you become INVISIBLE to possibly your best customers when they stop visiting your site, leave your mailing list, or otherwise forget about your products/services because they feel poorly treated (rightly or wrongly).
After all, the person most likely to purchase from you is someone who has purchased from you before. Keeping all of your customers as happy as you can afford to do is therefore the best way to grow your revenues online.
In more practical terms, I try to presume the best but be prepared for the worst. For my e-businesses and clients, this has meant implementing customer service policies that empower customer service reps to quickly and forthrightly respond to customer concerns. Often an honest explanation of whatever the problem is can work wonders. I've found that sharing the simple truth is surprisingly rare and customers appreciate it.
It's also quite common that the most annoying customers are simply venting their frustrations on you due to difficulties in other parts of their lives. Polite followup can often elicit surprisingly accomodating responses once they have cooled off.
I recognize that on the web, however, the ease with which people can contact you can also easily lead to mismatches in communication or expectations. So, if people abuse your trust, products, or policies, you need to cut them off. A polite but firm explanation of the situation and the remedy you propose is about the best you can do. Delivering this with a personal touch and apologies for any misunderstandings can help.
Where to draw the lines on these issues will be different for every entrepreneur who reads this. But the factors in your calculation should include the potential lifetime value of a customer versus the annoyance and/or expense of servicing them to meet and exceed their expectations.
One of the most expensive parts of business is acquiring new customers. If going the extra mile (and expense) will keep a paying customer from becoming "invisible" to you, that's very often less expensive than trying to replace them with a new one.
Best regards,
Scott Fox
How about you? What have your customer service experiences been like online?
Does your advice to Barbara differ from mine? Please COMMENT below.
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