Can Google+ be Part of Your Company's CRM Strategy?

Yes!

I've been playing around on Google+ lately and can see many possibilities for organizations looking to use it to build customer relationships.

Here are some ideas based on Google+'s capabilities:

1. Circles: Google+ allows you to tag people into circles and then send out updates, photos, etc. based on which circles you select to be able to see the post. People can't see which circle you put them in. I could easily envision an organization setting up circles based on their customer needs groups, value tiers and/or other customer segmentation (since you can add one person to multiple circles) and then sending out relevant communications to each circle. What I haven't figured out is how to easily "tag" a customer into a circle...but I'm certain there are some smart programmers out there who could figure out how to either incorporate an online survey to place people automatically into the relevant circles(s) when they ask to connect or create a program that pulls consumer data together with people in your circles to "tag" to the relevant circle(s).
   
2. Hangouts: Hangouts are basically chat rooms, but, again, you can determine which circles can see or access a particular chat room. While currently limited to 10 participants, this could be a great way for an organization to engage with select customers, get feedback on new product ideas or service levels, or just make the organization seem more personable. United Airlines has been using Twitter recently to host chats with their customers - the other day they had two flight attendants hosting the chat and answering questions from their fliers. So, for example, an organization could have a hangout chat with their most valuable customers to get their feedback on what's most important to them when re-designing a product.
   
3. Worried about having to constantly come up with content for your Google+ site? Sparks may help solve that. Sparks is Google+'s capability of searching for web content that might be interesting to you, based on topics that you have noted as being interested in. So, for example, if part of your organization's mission is to help the environment, you could put "green activities" into your Sparks search, and Google+ will pull green activities into your Sparks environment tab. While this doesn't appear to be customizable based on circles, it might be a great way for an organization's Google+ page to serve as a resource for its customers. You'd just have to be careful to select Sparks terms that wouldn't promote your competition!
   
4. Huddle allows you to text to people in your circles and allows for a group chat. If you're looking for a way to reach a group of your customers through text without typing in all of their phone numbers, this is the way to go! From a CRM perspective, again, you can use this capability for select - or all - circles and target your messages.
   
5. Finally, Google+ also has the same "feed" that you are familiar with in Facebook (but again, posts can be tagged to certain circles to ensure that only those circles see the post), which gives an organization the opportunity to have an ongoing conversation with each customer group without seeming to be irrelevant.

While company pages are not available today, rumor has it that they will be soon. It will be interesting to see how companies embrace and use Google+!

Challenges of CRM in a Retail Environment

I do the bulk (~98%) of my grocery shopping at the Whole Foods near me. And, because I'm one of those people who shops for 1-2 days at a time, I'm in Whole Foods nearly every day. I'm on a first-name basis with the security guard, Dave, who works there. He even noticed and commented on my new haircut the other day.

You would think, with the frequency that I'm in Whole Foods (and, quite frankly, the amount of money that I spend there!), that somehow, Whole Foods would recognize me as a valuable customer and treat me as such. At the very least, the cashiers and floor workers would recognize me - if not by name, at least by face - and welcome me back. Dave does, but I'm sure part of that is because it's his job to look at customers and make sure that they're not stealing something. But none of the other Whole Foods employees do. And, surprisingly, Whole Foods does nothing with the reams of data they capture about my purchase preferences.

Implementing CRM in a retail environment can be difficult, if not downright impossible. Employees are typically more junior, and turnover may be high. Continuation of the "customer conversation" is difficult, since different employees may be servicing the same customer at different times. Many times, employees do not have the means to capture customer preferences and requirements. And, finally, until the customer checks out (and presents his or her credit card), employees typically won't even know the customer's name - let alone the value that customer may provide.

Some retailers do a great job at this. Mitchells of Westport (www.mitchellstores.com) is probably one of the top CRM retailers out there. The store uses their customer database to target communications and sales, record customers' sizes and preferences, and track each customer's personal details - going beyond just the customer name and address to also include the customer's spouse's and children's details, and even pet names. Every interaction is tracked in the database. Mitchells' sales people are trained to leverage data to build relationships with customers. They don't stop there, though: Mitchell's also works to make sure that the customer experience is beyond expectation. If it means that the sales person has to deliver a purchase to the customer's office in New York City or meet the customer at the airport so that the customer has a suit needed for a business meeting the next morning, they do it. Mitchells has made CRM and CEM an integral part of their culture and employees are expected to exceed customer expectations. They have, in fact, systematized it and ensure a consistent experience for their customers.

I had mentioned in another blog about White House/Black Market and the CRM/CEM activities they have done for me personally (http://one-to-onecustomerstrategy.blogspot.com/2010/06/building-trust-with-customers-even-when.html). They also have a customer database where they can track purchases and even promotions that I'm eligible for so that I don't have to remember. However, while my experience has been great at the San Francisco store, I have not had the best of experiences at other stores. I think that part of the reason why I have such a great experience locally is because of the one sales person who intuitively looks to build customer relationships.

So, what's a retailer to do?

Well, here are a couple suggestions based on my experiences with Whole Foods:

1. Focus first on creating a great customer experience rather than a customer relationship.
2. Begin by training employees to truly look at customers and learn to recognize returning customers. If the retailer can think of a way to get returning customers to self-identify as they walk into the store, even better.
3. Set standard guidelines and "rules" for a baseline customer experience that every employee needs to deliver. Right now, my experiences at Whole Foods can be hit or miss. Some cashiers are very friendly, ask me if I found everything okay, and whether I want to donate my bag credit or get the refund. Other cashiers are too busy talking with other employees to even greet me. This problem isn't just at Whole Foods. Retailers should have clear guidelines on how to treat the customer and rules about what is and isn't appropriate when interacting with a customer. (My personal pet peeve is when an employee is on his/her cell phone talking with someone while checking me out.)
4. Figure out how to capture customer data and begin using it. Many retailers have loyalty cards which can be a starting point. Whole Foods does not, but they could still use all the sales transaction data they capture. Most consumers only use 1-2 credit cards or debit cards to pay for purchases; it would be fairly easy for Whole Foods to begin by aggregating data at the customer level and looking for trends in purchase behaviors at the customer level.
5. Empower employees to be able to resolve issues and make decisions without having to ask a manager all the time. Set guidelines for this, train the employees, and then let them take ownership of any problems.

Any other ideas?

The Importance of Building Trust in Relationships

Your customers want to trust you. They're giving you their hard-earned dollars, and this can be a very emotional thing for them. They have certain standards and expectations from you and your business. Destroy that trust, and you've destroyed the relationship.

But, guess what?

Your customers don't expect you to be perfect. They know that mistakes happen. Fix a mistake with a customer in a prompt, professional manner, and you've increased the trust and the relationship. In fact, research has shown that companies that fix a problem with a customer to the customer's satisfaction actually increase the customer's loyalty to the business.

Let's take a look at a couple personal examples to see how this can work.

Let me start by saying that I hate shopping. I never inherited the shopping gene and really have to work up the energy to go. So, when I shop I want to get it over as quickly as possible, without any hassles. I've discovered two stores that not only remove the hassle for me (very important!) but also exceed my expectations when something goes wrong:

1. White House/Black Market: this small boutique store earned my loyalty the first time I entered. I was greeted by a very nice saleswoman (who, incidentally, remembers my name and size every time I walk in the store, even if I haven't visited the store in 6 months) who asked me how she could help me. I like this - she started by asking me what I needed rather than just pushing any product on me. She then listened to me and helped me find a pair of jeans. It so happened that the jeans we found were on the sale rack (even better!). I loved them so much, I asked her if there was a second pair. She went to the sale rack and pulled off a second pair. I was so pleased at the ease of the process that when she suggested some accessories, I happily added them to my shopping bag. However, when I went to check out, the jeans did not ring up at the discounted price. She - and I - were confused. She called over the manager and explained the problem. The manager said that the jeans were not on sale; that someone must have put them on the wrong rack. Very disappointing! However, the saleswoman told the manager that since the jeans were on the sales rack, that the store had made a mistake, and there, the store would honor the 50% off sales price. How's that for fixing a problem? The store was willing to take a small financial hit to honor the expectation that had been set for me with the "50% Off Sale" sign. Has this paid off for the store? You bet. They are one of the first stores I go to when I need to buy clothes. And, when my nice salesperson offers additional suggestions, I happily consider them.
2. Nordstrom: okay, Nordstrom is on every one's list of stores that go the extra mile for their customers. They have continually surprised and delighted me since my first experience with them 10 years ago. This past weekend I needed to purchase a dress for a sudden family event. I admit, I was tired and very rushed when I got to the store, and was hoping to be in and out as quickly as possible. I explained my needs tot he saleswoman and she immediately pulled half a dozen garments off the racks that she thought would work. I ended up purchasing 3 of the items and went home. I was showing my husband the garments as I was packing to go to the airport and he noticed that ALL of the garments still had the plastic security tags on them. Ughh! I called the store and told them the situation. Not only did they apologize profusely, they also sent one of the customer service people to my house to remove the tags. They removed the tags and also removed the negatively of the situation.

Because of the way that both of these stores have handled problems and mistakes, they have earned by loyalty and repeat business. I also recommend them to others.

How can you build/rebuild trust with your customers when there is a problem? Is there a way that you can "surprise and delight" them or go the extra mile to demonstrate to them that you are genuinely sorry for the problem and value their business? Here are some ideas:

• Proactively communicate to the customer that there is a problem.
• Own the problem - even if it's not your fault! - and come with several solutions. The saleswoman at White House/Black Market didn't put the jeans on the wrong rack, but she took ownership of the problem.
• Put some skin in the game - even if it means reducing your revenue/profit a bit. This won't be lost on your customer.
• Be available after hours or before work for a customer.
• Rather than making them come to you, go to them.
• Send or offer them a thank you gift. The customer service manager at Nordstrom's that came to my house asked me to let him know when I'm in the store next so he could take me out to lunch. Will I ever take him up on it? Probably not, since I'm satisfied with the solution already, but it was a nice gesture.

Do you have other ideas? Feel free to share them here!

(Note: this blog is adapted from a blog I posted on wealthvest.com)

Are You Really Listening to Your Customers?

I once moderated sixty (yes, sixty!) focus groups for the United States Postal Service over a 5 week time period. And, with the exception of the one focus group where I had to eject one of the participants for unruly behavior, they were all pretty much the same. I heard the exact same needs, requirements and ideas over and over again. In fact, I probably could have stopped after the third focus group and correctly identified 98% of all the mailers' needs and suggestions for USPS.

I bet it's the same for you when you're talking with your customers. After the first few conversations with your clients, you probably have a good idea of what they need and have the perfect solution for them. But, are you really listening to them? One thing I realized while doing the focus groups for USPS was that, while I might have heard the "same story" before, for each of the participants, it was their story, and they needed to tell it. If I had jumped immediately to the solution for them, they would have felt that I wasn't listening to them, or worse, that I really didn't care what they were saying.

Keeping the conversation fresh and focusing on listening can be difficult. But it pays off: you form trusting relationships with your customers and they become more comfortable sharing more with you. Think about it: during the focus groups, I was meeting with small business owners who were sharing their shipping needs. While not exactly exciting stuff, it was important to the business owners, because shipping and mailing was important to their business. Your customers are talking about something personal to them: their hopes, their dreams, and even their fears. You want to have your customers walk away with the same feeling that my client at the USPS did when he said to me: "I know that you heard the same thing over and over again, but you made every one of our customers feel that his or her opinions and needs were important."

How are you showing your customers that their needs and opinions are important?

(Note: this blog was originally posted on wealthvest.com)

A Great Customer Experience from...Comcast?!?

I know, I know. Comcast??? We've all seen the youtube video of the Comcast service man sleeping on the customer's couch. But, it looks like Comcast has been working on their customer experience.

Six months ago I signed up for Internet access through Comcast. They had a promotion that gave me Internet access at a substantially reduced cost for 6 months, and then after that, the price would go up, unless I signed up for a different level of service prior to the end of the 6 months.

I know there are some people who would make a note in their calendars about this and proactively call before the promotion ended. I, unfortunately, am not one of those people. In fact, I completely forgot about the promotion, and probably wouldn't have remembered about it until I got a bill for month #7 with a higher rate.

However, I got a letter in the mail from Comcast about a week ago that reminded me that I was nearing the end of my promotional rate and suggesting that I call in to select my new plan. I called, and the service rep asked me a couple questions and we were able to quickly and easily sign me up for a new plan (that actually was about the same cost as the promotional rate!).

While there's still room for improvement (maybe a call or email rather than a letter, Comcast, and a proactive suggestion based on my usage?), the proactive approach of Comcast is a big step forward in terms of how they treat their customers and the experience their customers have.

CRM vs. CEM - What's the Difference?

Customer relationship management (CRM) and customer experience management (CEM): how, exactly, are they different, and can an organization use both in their business strategies to generate results?

CRM is the strategy of using customer data and insights to drive sales, marketing, customer service and communication tactics. It's all about the company being smarter with its resources by interacting with customers based on the customer's needs and value and using those insights to determine the best offers and interactions to maintain or increase customer profitability.

CEM focuses on understanding what it is like to be a customer of your organization - from the customer's perspective. So, for example, what is the experience a customer has when calling your service center? Visiting your website to learn more about your offerings or to purchase something? Being called on by one of your sales team members? CEM looks to understand the customer experiences and expectations across the customer lifecycle (awareness, consideration, purchase, existing customer, exiting customer, re-purchase) across all touch points (web, phone, mail, social media, in-person, etc.). Through this understanding, an organization can then identify 1) pain points where customers get lost, confused, frustrated or even defect; 2) opportunities to increase customer "stickiness" and loyalty during an interaction; and 3) points during the customer experience where the organization could be selling.

An organization can focus on CRM and not CEM, and vice versa. However, organizations that marry the two strategies receive the biggest bang for the buck - they're the ones that use customer insights to identify which customers are the most valuable and what their needs are, and they use all customer interactions to create a customer experience that meets those needs and maximizes customer value and profitability.