Edition 105, November 2019

Improving Consumer Experience and Maximizing Returns Profitability

By James Schellhorn & Jared Warren , ServiceCentral

Regardless of the size or scale of your organization, there is not a single product that can drive operational excellence without an effective connection to your customer base after-sales. Many organizations  across the globe have fully embraced customer-centrism through aggressively campaigned consumer loyalty programs, product and societal outreach projects (Toms, Warby Parker, and Tesla, for example), and intentionally designed experiences that empower their customers. While your organizational success doesn’t have to hinge upon you giving a free pair of shoes to someone in need  (or insert your own industry idiom here), there are lessons to be learned from these customer-focused companies; namely, that generating and prolonging customer satisfaction can be obtained  after-sales, sometimes more effectively than during presales, by providing consumer-centric services, creating best-in-class experiences for ongoing support, and adding just a smidge of “the human touch”.

One of the more effective approaches is enabling your customers through diversified after-sales support. With the vast proliferation of the internet, social media, and smart devices, organizations have quickly adapted to the social impact of fingertip technology. The core differentiator between what makes a product experience good and what makes it great has been the transformation of  after-sales service offerings, in some cases, promoting service ahead of the quality of the products themselves. Proactively responding to socio-technological changes, one of the best ways your organization can step up to the competition is by changing the way you think about your product support. Well-informed or DIY oriented customers may prefer reading through a knowledge base, or a series of FAQs rather than discussing an issue over the phone. Conversely, many consumers may prefer one-on-one interaction in order to have their questions answered. Combining these, and other, support methods together will provide your customers with a range of support options that provide consumer choice, ultimately engaging a larger customer-base driving higher satisfaction, product loyalty, and if enabled through process and technology, furthering your organizational success.

A more specific example of how after-sale service is winning the opinions of consumers is through highlighting more consumer-centric returns processes. Many industry-leading organizations have begun to utilize their returns process as booster for their customer experience. Take Amazon for example. With a simplified, online RMA process, customers of Amazon vendors can quickly and easily decide to return items back for broadening range of reasons. This level of customer empowerment has created a new expectation of returns convenience, has challenged conventional big-box retailers who’ve had to modify their return policies, and has quickly outdated legacy in-store returns experiences.

When’s the last time you’ve returned an item to a traditional big box store? The experience can be exhausting. From the moment you walk in with your return, to the moment you are finally blessed with the ability to leave the store with cash in hand, can be arduous compared to the pioneering alternatives of eCommerce giants. Requests for proof of purchase and the fear of partial credit versus same unit exchange or refund now drive consumers to reconsider their options. Product organizations that are embracing streamlined RMAs, including fully-automated online solutions, like Amazon, are sliding past those emotionally hurdles, thereby making their customers happier and driving higher rates of satisfaction and likelihood for repeat purchases.

Other examples of how convenience is playing its part in after-sales service transformation may seem subtle, but can be highly effective. Some organizations are now including return shipping labels in their packaging to reduce the overall stress and energy levels required by a consumer in the returns process, which may seem like a minor inconvenience, but in reality is a huge relief  for select product owners that are less tech-savvy than we perceive them to be. Regardless of the channels and techniques used, convenience is by far a major driver for consumer-centric movement. Shep Hyken, a writer for Forbes.com1 may have communicated it best “In the end, the customer doesn’t care about how many channels you make available to them. They just want to buy the way they want to buy, have their questions answered, their problems solved and their comments acknowledged. It doesn’t matter what channel. So, why do we keep talking about different channels? It’s really about connecting and responding to the customer”. The more opportunities you create for your customers to move smoothly through your channels, the more engaged and loyal they will become.

While simplifying the returns process and improving consumer convenience is an effective trend, consumers are also seeking empowerment through after-sale choice with diversified RMA options as well. Your organization may be beginning to embrace consumer choice through  omnichannel return options, like mail-in versus brick-and-mortar drop-off, but newer trending successes are including a combination of choice and convenience through entitlements like  instant credit processing at the time of carrier scan-in or product receipt. Bottom line, consumers are responding to organizations that are going above and beyond traditional conventions, and organizations that are embracing alternative options are diversifying themselves further every quarter. In an article addressing consumer choices and how to effectively diversify them, Bill Salokar, VP of Client Solutions for SKIM, states that, “Consumers say they want choices in a general sense, but digging deeper reveals that they actually only value opportunities to choose when they perceive meaningful differences between the options they are offered.”


While convenience and choice have now been defined as essential for a successful product experience; retaining the ‘human touch’ is still a critical part of the mix. According to Forbes Magazine2, during a recent survey on artificial intelligence and its impact on initial customer engagement, only 20% of consumers prefer chatbot-based customer service, and 80% still want a live human typing on the other end. Neil Patel, founder of kissmetrics, a company built on customer engagement automation, puts it bluntly, “If we do not engage with our clients in a real, personal way, then we are just another vendor - and vendors are easily replaceable with better, cheaper options. However, clients are much less likely to consider replacing people with whom they have real relationships.” And according to a recent survey of over 300 marketing professionals from various large companies, nearly 40% of respondents stated that they were significantly more resistant to competitive brands that they have no relationship with or loyalty to. So not only are you creating experiential continuity for your customer, but you are also protecting and sustaining your relationship because that customer is much less likely to look at one of your competitors as a viable alternative to your products.

It’s clear that consumer experience after-sales is becoming almost as relevant as the products themselves and that convenience, choice, and the human-touch are all successful ingredients to repeat customer sales. So how do we effectively steer consumers through a service path that is both consumer-centric and operationally efficient? Effectively steering towards operational excellence and enhancing your customers’ experience go hand in hand. Earlier, we stated that your customers are beginning to care equally about your service provided, as they are about the quality of your product. While that is true, your after-sales process, customer experience, and supporting after-sales IT solutions that support your product are just as important as your products themselves and the customer support/services that you offer. As you embrace this reality, your after-sales systems for engaging, systematically authorizing, and delivering an ideal process are becoming more imperative. Bottomline, your offerings, aligned with your consumers needs, must be paired with technology to help ensure that consumers clearly understand your process, are efficiently directed to an ideal resolution, and are handled in a way that can be sustainable, scalable, and efficient for your organization. As the axle that supports your consumer experience and services, effective IT solutions provide two major benefits: further engaging your customers through efficient processes that are aligned with their needs and simplifying logistical processes for your organization to quickly receive, triage, and remarket returns. Examples of this include either utilizing tools like RMA portals, mobile apps, returns automated authorization, and quicker processing through programmatic workflows. Many organizations may be falling behind consumer expectations and as an organization built around creating and refining RMA functionality, ServiceCentral’s products rely heavily on engaging consumer experiences and efficient workflows.

Seemingly, there’s a dichotomy between consumer behavior, expectation, and ideal service delivery begging the question, “How does my organization stay competitive?” Look to align your products and services with your customers’ needs. The simplest and quickest way of achieving this is through customer research. There is an inordinate amount of customer profile building and research tools that are available, but embracing your existing customer-base through survey maybe a revealing start. Secondly, look to create intentionally cultivated experiences that cater to your customers senses, like efficient and eye-catching product service portals. Humanize your customer engagement by providing clear communication, personalized options, and service fulfillment that meets their expectations. Recognize that emerging generations of buyers are influenced by technology-driven convenience but remember that they yearn to retain a humanized aspect to their experiences and use service options to help drive personalization. Utilize technology to help deliver service programs that can provide engaging experiences, personalized communication, consumer choice, and process efficiency so that the perceived promises made through product marketing, can be efficiently and effectively delivered, evaluated, and improved as your organization continues to embrace an ever evolving consumer-centric market.


REFERENCES

 

1,2 https://i.forbesimg.com/forbesinsights/pega/new_rules_of_customer_engagement.pdf

3 http://www.customerforlife.com/blog/wp-content/uploads/2013/03/ft-existing-customers-10-16.png

4 https://www.insightsassociation.org/article/consumers-want-choices-just-not-too-many 


James Schellhorn & Jared Warren
James Schellhorn - James is the Chief Business Development Officer for ServiceCentral Technologies, a software company focused on returns, repair and reuse of electronics. James leads product and company strategy, ensuring SCT continues to deliver exceptional value to customers, partners, and the industry. Previously, James was CEO and Co-Founder of RepairQ, a retail repair point-of-sale that he merged with SCT in 2017. James’s prior experience includes 10+ years of creative direction, consulting, and strategic development as the Founder and CEO of a digital products agency, Prolific Agency. James has a B.A. in Advertising from Oklahoma State University. Jared Warren - Jared Warren is the Digital Marketing Manager for ServiceCentral Technologies. For the past three years, he has led production for digital media related to both ServiceManager and RepairQ, and enjoys spending his time outside the office dedicated to his passions of competitive gaming, reading, and indoor soccer. Jared has a B.S. in Corporate Communications from Rogers State University.