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The True Price of Weak Customer Service

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“One of the biggest mistakes companies make is that they view the customer’s purchase as a transaction versus an interaction. There is more than a subtle difference here. A transaction has an ending.”

Shep Hyken, top social customer service pro

Customer service is the most neglected aspect of effective marketing. Wait, customer service is marketing?

Yes, in two ways: one, it’s marketing to customers you want to become repeat customers. Two, it’s marketing to leads who watch how you interact with your existing customers.

Any business that isn’t treating customer service as a vital part of its marketing activities is leaving money on the table.

Salesforce reported that bad customer service costs American businesses $84bn every year; worldwide, that figure was $338.5bn. Repeat customers are the lifeblood of any business, yet only 27% of initial-purchase customers become repeats. What if we could use better customer service to hang on to a few more repeat customers? Well, since 78% of customers have walked away from a business due to poor customer service (Source: American Express), there’s a good chance that we can.

Maybe these stats don’t apply to you, though. After all, you hardly ever get a complaint.

Neither does anyone else. Only 4% of dissatisfied customers complain… to you. They tell their friends, though – and they’re twice as likely to pass on a bad experience as a good one. 96% don’t complain; 91% will never come back. In fact, if a 2008 Accenture report can still be believed, the real cause of business churn is poor customer service.

Sounds like a problem that needs fixing, but we need to understand it first. Let’s start with the customer: what do customers want?

What do customers want?

Customers expect prompt customer service from knowledgeable, trained individuals. When they don’t get it, they leave. That’s the clear picture from years of customer research.

On the phone, 75% of customers think they’re using the best channel for them to communicate with a business – but if they don’t get to speak to a real person, right away, 53% get irritated. When they did get through to someone, the result was unsatisfactory: customers said service agents failed to answer their question 50% of the time (Source: Harris Interactive).

Off the phone, the key channel for customer interactions is social media. Here, the gulf between what customers say they expect and what they’re getting is most dramatic. Customers say they want to hear back from brands. On Twitter, 14% of customers expect a response immediately, and 65% expect one in less than 2 hours. And what do they actually get? About 71% of the time they get no response at all (Source: Maritz Research).

Say you were in an industry where you lost 2.27% of your revenue – average monthly customer churn for a US wireless carrier (Source: Statista) – out of holes in your employees’ pockets. I’m guessing you’d start looking into thread. Or say you were in a business where 5% to 7% of your money – average SaaS churn rate (Source: Bessemer Venture Partners) – just blew away because you left the door open. Or what if it was 20% to 25% a – the average rate for retail banks (Source: Pitney Bowes)? You’d shut the door, I guess.

But every business is in the customer business. And customers are walking away – 25% of them every year, in some industries – and it’s overwhelmingly because of service. Not product, not price, but service. So when they’re telling us what they want so clearly, isn’t it time customer service was as much of a priority to us as it is to our customers?

Here’s how to do that:

  1. Measure Your Service

Start by finding out where you are right now. It’s hard to know exactly what to do if you don’t have any idea what your customer service currently looks like. Use customer feedback questionnaires. Try getting ‘mystery shoppers’ to try out customer service. You can take this further and check your Net Promoter Score. (Another good indicator is your churn rate!)

If you want to get a deeper view, try ClientHeartbeat – you’ll get in-depth analytics on customer satisfaction details. Moreover, the creators claim a customer feedback response rate three to five times the average, so you’ll have a clearer idea of where you need to improve.

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  1. Train Your Staff

Once you’re clear on the strengths and weaknesses of your current customer service provision, it’s time to start training your staff. Way too many companies take on customer service staff and just throw them in at the deep end, with poor pay, minimal training, no support, no authority – and they don’t do a great job.

But in those circumstances, it’s not surprising. Staff need to know what to do, and they need to know why. Start by explaining to service staff what good customer service is. Talk to them about how to handle difficult customer situations in an appropriate way – and actually train them; don’t just give them a ten-minute talk about it. One service staff member who reacts badly on a chat or social channel could be the thing your company gets known for worldwide!

  1. Support Customer Service Like You Would Sales and Marketing – Because That’s What They Do

Customer service is sales and marketing to people who have already made a purchase. Treat it that way. High-level training that’s geared towards satisfied customers will produce greater customer satisfaction, lower churn and more repeat purchases.

But it takes more than training on the phone or instructions on how to handle a tricky chat. Staff need technical support too. Teach them how to use social media channels, especially Facebook and Twitter, in an appropriate manner. Teach them how to use a wider range of customer service tools. The phone isn’t enough anymore: specialist social media training is still necessary because although most of your employees know how to use social media, they don’t know how to use it for customer service. Get them the equipment they need to deliver customer service that wows – because for many customers, customer service is the most important thing you do.

Since content forms the core of new age digital marketing, integrate your content marketing with customer service. And there’s no better form of content than video to do it most effectively. Anything that requires significant instruction or is visual can be dealt with by creating a video. Evan Hamilton wrote a great post on the UserVoice blog advocating the use of video in customer service.

You’d do well to invest in a tool like ClickMeeting to run webinars for explaining features of your product, one-on-one private chats for customer service, as well as moderated videoconferences with focus groups or brand advocates.

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  1. Make Customer Service the Center of Your Company Culture

Sales is at the heart of many company’s cultures. But sales is customer service, to customers who haven’t made a purchase yet. Customer service is sales. Put it right in the center of your company culture. Talk about it. Post big signs in the lobby congratulating the most effective customer service team. Consider incentivizing customer satisfaction the way you incentivize sales.

This unity of purpose between marketing, sales and customer services is increasingly recognized in CRM software like the modular Zoho, which offers a Service package, or Sage. Even the mighty, sales-focused Salesforce comes with dedicated service functionality.

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  1. Let Your Team Work

Your staff know what to do. They have the tools. Let them do it. Give them the authority to control how they operate.

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Image (Modified under CC license)

Wrapping Up

Learning to see every part of your business as part of an ongoing interaction with customers is difficult. But the rewards are clear. Happy, satisfied clients will recommend you to their friends, advocate for you on social media (and hopefully in their lives), and leave you positive reviews. They’ll also be back to make more purchases. And customers themselves are saying the way to do it is great customer service.

 


The Need For Speed – Optimize Your Mobile Experience

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Group of friends of different ethnics sitting on the street and looking at mobile phone - Young modern hipster people having fun with new technologies - Multiracial group representing the addiction to technology

“Mobile really is where everything is going and where everything is spent today,” Gary Burnett, former Facebook Advertising Exec and now COO at Flurry, a leading app measurement and ad firm.

In a recent article Top 10 Digital Marketing Trends for 2016, mobile optimization came in amongst the top ten.

Let’s quickly review our mobile discussion from that article. At this point, mobile and responsive websites should be a no brainer. For the past few years, we’ve been sprinting towards mobile dominating desktop, and we’ve passed it. Mobile has officially passed desktop browsing. What does that mean in the broader context for your 2016 marketing strategy? In 2016, a mobile-optimized website should be a default, but not a placeholder for an app. An app can (read: should) do everything your website can do. Not to mention an app is both touch screen (read: less barriers to clicks) and is an advertisement/reminder of your product that goes with your user everywhere they go.

Mobile usage in the purchasing process, from research to checkout, is on an upward trend that is not slowing down anytime soon. A few stats to back that up?

  • 90% of smartphone shoppers use their phone for pre-purchasing activities
  • 86% of time is spent on apps vs. 14% on the mobile web
  • 25% of search queries are now on mobile

Whether you’re working on your app, planning a re-vamp, or already have a fantastic one in place, there’s one thing we recommend testing and optimizing above all else - and that’s speed. Load speed, checkout speed, and how quickly your users can find relevant info. Recent research has found that a staggering 29% of mobile users will immediately switch to another app or website if they are experiencing slowness, or can’t find what they need - quickly.

We’ve all been there. Looking up that great new restaurant but finding the mobile website too slow? Jump to Yelp. Want to make a res. at said restaurant but reservation information isn’t easily accessible, jump to opentable. Opentable isn’t showing available reservation for the time you want - back to Yelp for the phone number to give them a call.

So, how can we optimize our websites or applications to keep as many users inside your brands as possible? Here are a few tips:

  1. Be there in micro moments - especially when it comes to mobile. Below is a great infographic from Forrester to give you a quick snapshot of how to design micro moments. We’ll cover this more in depth in next week’s article.

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  1. Make sure your mobile website is super simple, responsive, with an easy and streamlined checkout process.
  2. Your load time needs to be 3 seconds - or less.
  3. Know what your customers are searching for and optimize your app and website to display calls to action for those specific needs first.
  4. Less is more. Less clicks, less steps. Eliminate any unnecessary actions, assets, or distractions that get in the way of people performing the action you need them to take.

If you’re a small business looking to do some quick catch up in the mobile space, check out this article, How to Optimize Your Small Business for a Mobile World.

We'd love to hear your top tip for optimizing your companies mobile experiences. Just leave a comment below!

 


YouTube – the New BoobTube? Why Youtube is Dominating and How To Use it to Increase Your Content Viewing by 500%

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Varna Bulgaria - February 02 2015: YouTube multi devices set comprising Apple iPhone app logo iPad Air2 application and desktop version of YouTube on Macbook Pro screen. Isolated on white background.

Here are some interesting statistics on TV watching over the last few years:

  • Adults watched an average of four hours and 51 minutes of live TV per day in Q4 2014, down 13 minutes from Q3 2013. The same downward trend presented itself from 2012-2013,
  • 40% of U.S. homes currently have some streaming service, including Netflix, Amazon Instant Video, or Hulu
  • The same statistic (US comes that currently have streaming service) was up in 2014, from 35% in 2013
  • 18-49 year olds’ time spent watching TV fell by almost 10 percent between December 2013 and December 2014 - according to Nielsen’s Google-comissioned analysis

So streaming services are on the rise, live TV viewing is on the decline.

Compare that to these stats of YouTube viewing over a similar time period:

  • In 2014, YouTube reached more 18-34, and 18-49 year olds than any cable network
  • Time they spent on YouTube shot up 44% percent, with mobile viewing making up the largest source of growth
  • YouTube accounted for 51 percent of time spent watching premium digital video* in December 2014 across desktop streaming, smartphones, and tablets among key adult demographics, specifically adults 18-34 and 18-49.

Where does this leave us?

Live TV viewing in on a downward trend, streaming services are on an upward trend, and YouTube is the clear leader in digital video platforms. Researchers across the industry  believe these trends will continue year over year in the near and distant future.

Time spent watching TV content is down overall. It is important to note however, that the popularity of this content is not in question, but where the eyeballs go, that’s what is changing. Moreover, viewing TV content on YouTube is increasing year over year, along with using YouTube to consume new content.

So, how can you capitalize on the YouTube train? Here are a few ideas.

  1. Replace some TV ad spend with YouTube ad spend. This doesn’t mean spend more, just allocate differently. According to a study done by Google of 3,000 U.S. companies, they found that had companies taken this approach dual ad approach, they would have reached 42% more millennials alone.
  2. Invest in YouTube ads. A recent Google study found that people were 23x more likely to visit or subscribe to a brand channel if they watched a YouTube ad. So, invest in a YouTube Ad, and create a valuable platform to increase brand awareness and potentially dedicated audience to market to.
  3. A similar study showed that YouTube Ads increased the value of past content. When brands ran YouTube Ads, they saw views of their previous content increase up to 500%!

Do you Youtube? We’d love to know. Let us know how YouTube fits into your digital marketing strategy in the comments section below.

 

 


The One Thing Marketers Must Do Before Diving Into Email Marketing

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Want to know what the Obama pic is all about? You'll have to read to the bottom to find out...

Contrary to what some say, the data over the past few years has continued to demonstrate that email marketing still holds water to many other marketing tactics. Earlier this year I discussed why email marketing is still a front runner for marketers. Below is a quick recap.

According to the most recent Oracle Marketing Cloud Study, email continues to remain in the top three initiatives (2nd) for marketers  - namely because of the huge ROI it continues to offer.

  • Email marketing ROI is about $44 for every $1 spent

Need some more email stats to back up that claim, here you go:

  • 91% of consumers check their email daily
  • On a daily basis consumers interact with 11 brands on email (compared to 9 on Facebook and 8 on Twitter)
  • 48% of consumers say they prefer to communicate with brands via email
  • 44% of consumers made at least one purchase based on a promotional email they received
  • 66% of consumers have made a purchase online as a result of an email marketing message

So let’s get to the point of this post. The above stats help us understand why we need to continue to pay attention to our email marketing. Before you recommit to revamping or revisiting your email marketing do this one thing - check your senders score.

Why it’s important:

Your sender score is an indicator of the trustworthiness of your IP address. So - why is that important? Your IP address is used by email providers to determine how to filter your message (read: whether or not YOU go to spam).

How do you check it? Do the following:

  1. Find an email, newsletter, announcement etc., sent from the email address your want to check
  2. View the full header of that email by
  • In Gmail - click the down arrow on the top right hand corner of the email and scroll down to ‘show original,’ then find the IP address. Go to https://senderscore.org/ , create and account, and plug it in

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How to read the score:

Anything over 95 is good, anything less than 95, and you need to take a deeper look into your deliverability. After all, why spend hours on emails campaigns and strategies if no one is getting them in the first place?

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This is an image of the top preforming subject lines as researched by Barack Obama’s re-election campaign team. They did a ton of email marketing research and testing. Tailor them to your message and presto! Even better, do an A/B test with these vs. your old subject lines.

 

 

 


Someone please tell me the difference between retargeting and remarketing already!?

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Do you know? If you’re reading this, chances are you’re not sure. While the jury seems to still be out, here is the latest consensus.

Retargeting and remarketing focus on totally different prospects.

Remarketing focuses on people who are incredibly motivated. These people have either added something to their cart, or done something else to express clearly they are interested in buying your product. They’ve made it way down a buying funnel, and fell off somewhere near the end of the buying process. Remarketing efforts take the form of e-mails, and focus on finding out why the person fell off, what else the provider can do or what other information they can offer, to help nudge the individual in the direction of completing their purchase.

According to a survey done by AgilOne on, dedicated to finding out which kinds of marketing initiatives people appreciated most, e-mail came out on top. And, of the e-mail messages, the most well received were 1) an alert to when a product was on sale 2) VIP customer appreciation emails and 3) cart abandonment email reminders. So, if you are considering adding, or testing, to your email strategy, consider framing some new messages to align with one of the above three categories.

Retargeting (read: ad stalking) on the other hand focuses on people who are slightly or moderately interested. We call them slightly or moderately interested because they’ve visited your site, but have not taken any other actions to express their interest in actually purchasing anything. Retargeting efforts focus on keeping your brand top of mind, to help remind people that they visited your site, and that you’re still there. This happens, mainly, in the form of ads served to the visitor. The hope is that, once they’re ready to buy, you’ll be top of mind.

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So  - pro’s of retargeting? Since this is done via a third party like AdBrite, AdRoll and Google google display network, you can set it and forget it. You can reach people anywhere they happen to go on the world wide web. According to an InkSkin Media recent survey of 1600 adults, 53% find online ads useful. That number goes up to 60% when you look at a slightly younger population (ages 20-29) .

Cons? Data shows that consumers will get annoyed by you, especially if the ads are on a site completely unrelated to their search. Rule of thumb, after about the 3rd or 4th, you’ll have more people feeling annoyed, than helped, by your ad.

 

 


5 Digital Trends That Will Define 2016

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1) High Customer Expectations Will Just Keep Getting Higher

Personalization, targeting, retargeting and seamless e-commerce experiences will be exponentially more important in 2016. An average customer experience will no longer fly. The ‘new normal’ in customer experience will trend towards tailoring the experience to each person’s behaviors, interest,  and on, and even off-line, activities. Companies must think about specific customer journeys, personalities and interests of their varied customers. They must seek out the appropriate tools to execute on those initiatives, and empower their employees to work together to bring the experience to life.

 

2) Powerful Tools (Read Data) For All:

Integrative software that felt out of reach for many small businesses will become more affordable. The market has become more saturated with copy cat, yet powerful, tools across numerous parts of any business making them more accessible.

Close-up of a modern business team using tablet computer to work with financial data

3) Data, Data, and More Data

With powerful, data driven software accessible to more companies, marketers will begin to focus on the data. You'll see marketers leaning heavily on metrics to help inform strategies and priorities.

 

4) Be Prepared to Spend More

While online ads are still relatively cheap, the increase in competition in the digital world should increase the cost of advertising quite a bit. Small companies with already limited budgets may find themselves struggling to make any sum of money go the distance when it comes to paid advertising.

 

5) Work With Siri, Not Against Her

Search Engine Optimization is going to change dramatically. This is in part due to social media beginning to be indexed by Google (aka your social presence will affect search results). This is also in part thanks to our favorite mobile friend Siri and her counterparts. Siri, the google app, etc., are now woven into our technology of choice - our phone. Now that mobile browsing has surpassed desktop, and these technologies have become less clunky, people will begin trending their way to find what they need. To ensure you don’t get left out of the mix, make sure you’re serving these bots with the information to find you.

 

Meet the real woman behind the voice of Siri 

 

 


Digital Marketing Weekly Roundup: 5 Stories You Don’t Want to Miss (9/16/15)

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Every week we will scour the Internet for the most useful and interesting articles on digital marketing  - so you don't have to. Here are our top picks for for the week, enjoy!

  1. Does Your Company Need a Digital Makeover?

The importance of keeping up with the latest marketing trends is crucial to your company's success. If you haven't updated your practices recently, have a look at these four mainstays.

  1. 10 Keynote Speakers Who Will Keep You Ahead of Digital Marketing Trends

Forbes provides a great list of influential speakers to follow. Number 2 on the list is one of our very own instructors, Rohit Bhargava. You can watch Rohit's content in our class library!

  1. Why It Takes So Long to Achieve Social Media Success

This article highlights the importance of building relationships over time. While awareness can be pumped up quickly through social media, impact on actual sales may take years.

  1. 7 Interesting and Fun Digital Marketing Stats From the Past Week

Here are 7 statistics that you don't want to miss. It will stir your imagination.

  1. How Should Digital Marketing Agencies Prioritize Their Services?

We've found some helpful tips for agencies. These are some services you should prioritize to ensure you're profiting the most.