Managing Customer Expectations Like a Pro with Mike Miller and Vikas Bhambri

Managing Customer Expectations Like a Pro with Mike Miller and Vikas Bhambri TW

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In this episode of the Customer Service Secrets Podcast, Gabe Larsen is joined by two CX leaders, Michael Miller and Vikas Bhambri, to discuss managing customer expectations during a global pandemic. Both Michael and Vikas have had to adapt their teams to the new CX issues spawning from the COVID-19 pandemic. Learn how these leaders have successfully managed customer delivery expectations during COVID-19 by listening to the podcast below.

Simple Tricks to Earn Customer Loyalty

It’s no secret that COVID-19 has greatly impacted businesses across the globe. As a result of these uncertain times, a new customer has risen, the highly anxious user. In response to this, companies have had to diversify their CX tactics to keep up in the new, highly anxious user arena. To help businesses keep up, Chief Product and Strategy Manager at Convey, Michael Miller dives into three simple ways to earn lasting customer loyalty that will continue after the pandemic. The first is setting expectations for product arrival. Second, frequently providing status updates to the customer so they have an up-to-date understanding of product handling and delivery time. Lastly, the typical customer wants flexible delivery options. Various businesses have opted for curbside pick up and home delivery instead of in-store shopping. Michael concludes, “So being early, setting expectations, communicating frequently, those are the things that we are seeing not only customers expect, but the companies that do well are going to earn loyalty that’s going to carry on well beyond this period.” Businesses would do well to implement these three simple tricks to retain customers long after the pandemic is over.

Proactive Communication

SVP of Sales and CX at Kustomer, Vikas Bhambri sets the standard high for other CX teams. Vikas understands that customers are happier when they feel their needs are being handled in an effective manner. He says this is accomplished through setting delivery expectations with honesty and by being available to solve customer’s issues promptly. He adds that the concept of too much communication between the agent and the user simply doesn’t exist in the realm of CX. Proactive communication happens when product and order updates are sent at each relevant step. If this is too much communication, Vikas explains, “Give them the option to opt out. But otherwise at every juncture that’s relevant, I would make sure that I was proactive with my communication.” By showing up and being openly available, agents are better able to get to the root of the customer’s issues in a timely fashion. The more openly a business communicates right now, the better.

The Role of AI in CX

Recently a controversial concept, AI, has come to the forefront of the CX discussion. While not completely replacing the importance of human-to-human interaction, AI has infiltrated the service industry through easing the roles of CX agents by better filtering user issues. With the new COVID-19 business-scape, highly anxious customers have been on the rise and the burden of customer care agents has been significantly increased to the point where they are overwhelmed. Companies are integrating AI into their CX to get a better handle on customer care. Michael has deployed an AI program at his company to help catch carrier delivery problems before they happen. This AI is helping meet the new customer expectations previously mentioned and helps their business have proactive communication. To further explain his AI integration, Michael emphasizes:

When you can reach out to the customer, you can reassure them, you can appease them, you can reset expectations, you can talk to the carrier about the issues. So it’s really for us all about identifying stuff that the carriers aren’t telling you and that you can’t otherwise as explicitly see in the network so that you can get out in front of these issues and create better customer experiences. That’s the biggest place where we’re deploying it.

Companies can reach out to their users with AI and filter their needs so their CX agents have a better handle on incoming customer situations, resulting in happier and more loyal customers.

To learn more about how to manage customer delivery expectations and how to create lasting customers, check out the Customer Service Secrets podcast episode below, and be sure to subscribe for new episodes each Thursday.

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Full Episode Transcript:

Managing Customer Expectations Like a Pro with Mike Miller and Vikas Bhambri

Intro Voice: (00:04)
You’re listening to the Customer Service Secrets podcast by Kustomer.

Gabe Larsen: (00:11)
Welcome everybody to today’s broadcast. Today we’re going to be talking about a couple interesting topics, but specifically, how to manage customer delivery expectations during all of these challenging times. And to do that, we brought on Michael Miller, who’s currently the Chief Product and Strategy Officer at Convey, and then Vikas Bhambri the SVP of Sales and CX at Kustomer. Guys, thanks for joining. How are you?

Vikas Bhambri: (00:37)
Thanks for having us.

Michael Miller: (00:39)
Doing well. Thank you.

Gabe Larsen: (00:39)
Yeah, why don’t we just take a minute and have you guys tell us a little bit about what you do and the companies that you work for. Mike, let’s start with you.

Michael Miller: (00:49)
Sure. Hi, I’m the Chief Product and Strategy Officer at Convey. We are a delivery experience management platform, and what that means is we help some of the largest retailers in the world with a set of tools all across the buyer’s journey, all geared towards creating a better customer experience and better delivery outcomes.

Gabe Larsen: (01:07)
Love it. Vikas, just take a second.

Vikas Bhambri: (01:10)
Sure. Vikas Bhambri, head of Sales and Customer Experience here at Kustomer and we are a customer service CRM platform that enables brands to engage their customers regardless of channel, with an optimal agent experience. So really excited to have this conversation today.

Gabe Larsen: (01:31)
Yeah guys, this is such a fitting conversation. Let’s start big picture, and then let’s dive into detail. Vikas maybe let’s start with you. As we see the current environment changing, what are some of the trends, challenges that customer service organizations are facing?

Vikas Bhambri: (01:47)
Well, look. We just went to something that’s never been seen before. In fact, Mike and I were talking earlier in the week and I think one thing that really resonated was Mike telling me that we are at e-commerce projections of 2022 level here in 2020 because of the accelerant called COVID-19. Right? Because all parts of the country and really across the globe, we have moved to a pure delivery model, right? If I just think about my own experience, I haven’t been to a grocery store now in five weeks here in New York, we are getting literally everything delivered. Flowers for my wife for our anniversary, cakes, grocery items, prescriptions. So we’ve fundamentally transformed the way we shop and interact with brands, in the last 30 to 45 days. What that does for the brand is it’s created an unprecedented opportunity and some simply can’t handle it, right? Because they were not built. I was talking to a CEO of a food delivery company the other day who said that his business has grown 10,000%. 10,000% through COVID-19, which if you told any CEO of a company, “Your business is going to grow 10,000%,” he would probably, he or she would probably jump for joy. Not if you’re not set up –

Gabe Larsen: (03:24)
Yeah, that’s right.

Vikas Bhambri: (03:27)
– overnight. So what’s happening for a lot of these people, if you go to their websites, they are taking, either some of them have gone to full transparency. “We can’t take any more orders.” Which I think is commendable, believe it or not. Right? Be honest with your customers. Some, unfortunately, are taking orders and then on the back end, they’re saying we can’t fulfill them after the fact, or after you submitted your order. Now you realize orders are out seven, ten days. And then the other thing that’s happening is, there’s a heightened level of tension in the consumer base. So when I order something, I used to order something from Amazon and just sit back. It was up the next day, two days later, whatever it is. Now I’m hitting refresh because I’m worried about feeding my family. Like, “Where’s my order, where’s my order?” and so that’s the new norm, right? Both on the brand side with their experience, as well as consumer expectations, is people have a heightened level of anxiety and are really expecting brands to live up to that brand promise, which it’s hard to do when your business can grow ten thousand percent.

Gabe Larsen: (04:37)
Yeah. I love that. I mean, the refresh on the Amazon order, I didn’t mean to laugh, but I know the feeling. Mike, what would you add to that?

Michael Miller: (04:49)
I think that’s all 100% accurate and we’re seeing it really all the way through the supply chain, which is under enormous strain. So with this spike and shift to e-com, just some data that we’ve seen across our network, on-time delivery percentage at an aggregate level has slipped from about 90% to 70% over the last two months. We’ve also seen a spike in exceptions, meaning delivery problems of almost 200% over the last month. So the issues that are happening all the way through the network that is under strain and how that manifests and sort of miss customer expectations, it’s pretty dramatic.

Gabe Larsen: (05:31)
Wow. Wow. So basically, from a data perspective, if you had to pin it, are companies actually meeting expectations when it comes to delivery during COVID? It sounds like there’s struggles; that the supply chain is having problems.

Michael Miller: (05:46)
Absolutely. Absolutely.

Vikas Bhambri: (05:50)
Mike, you’ve probably seen this because I noticed something I’d seen for the first time, the other day. As I was mentioning, I bought a cake online, first time ever, cakes being delivered. And when I went to see the tracking, basically it was a tracking link to UPS and they had said that due to things beyond their control, orders were being delayed and I actually got my cake a day later than what was intended. What are you seeing from that side? Because it’s interesting. I think the delivery functions are also having their own issues, which impacts the brand doesn’t necessarily control that.

Michael Miller: (06:32)
Yeah, absolutely. So the carriers in general, and we have relationships with pretty much every carrier in North America, and they are absolutely straining to keep up with the overall surge of demand. And you see that again and slippage and on-time delivery percentage. The bigger carriers like FedEx, UPS have actually started tracking COVID related exceptions specifically, and reporting on those and those are through the roof. Week over week as you might imagine. And all of that manifests in if a retailer made their delivery promise, that the carriers are having a hard time adhering to that, that is a missed expectation and that’s where it starts to hit your world with the, “Where is my order?” calls and those kinds of experiences.

Gabe Larsen: (07:20)
Wow. Do you feel like there are certain, as you’ve looked at the data and you see different companies, are there places or industries that are excelling at this? Actually doing it right? And if so, what are some of the things, do you feel like they’re doing well to combat this?

Michael Miller: (07:40)
Yeah. I’ll jump in. We actually do a lot of customer surveying and we’ve actually ratcheted it up during this period. And, we hear pretty consistently that customers at least, are looking for three things and the first is setting an expectation around when something is going to arrive. That is harder to do today than it has been historically, but that is absolutely expectation. They want frequent updates as early as possible as to when that’s going to change, if it is going to change. And then lastly, they’re looking for flexibility about delivery options. So, this surge in people who may not want to go into a retail environment grocery or otherwise, and so the rise in curbside delivery we actually saw early on during the quarantine periods a spike in return to senders because people were trying to deliver things to offices in locations that were no longer open. So being early, setting expectations, communicating frequently, those are the things that we are seeing not only customers expect, but the companies that do well are going to earn loyalty that’s going to carry on well beyond this period.

Gabe Larsen: (08:53)
I love it. So frequency, communication, flexibility is some of the key themes you’re finding different companies are doing in order to be successful.

Michael Miller: (09:00)
For sure.

Gabe Larsen: (09:00)
Vikas, on your side, and then I want to come back to Mike on something. But that’s on the delivery side, but if I’m a CX Lead, I’m a customer service leader. How do I keep up with these changing expectations, especially as it relates to delivery?

Vikas Bhambri: (09:17)
Sure. I can’t even imagine the stress they’re under. I think number one is the more information you can give to customers. It goes back to the transparency I said, right? Which is, ideally you’d like, your brand to kind of take the step, the extreme step of maybe saying, “Look, I can’t take on any more orders,” but I know that’s difficult, right? At the end of the day, this is also an opportunity for a lot of brands to acquire customers and acquire customers away from Amazon because people are looking for new options. So I can’t expect anybody to take the stance of, “I’m not going to take on any new customers,” but if you are going to do that, right, who am I to ask? Unless it’s me. But if you are going to take on those new customers, right, and then they are going to submit orders, then I think really kind of owning up to the transparency. So when they come to your website or they engage in your portal or whatever it is, being able to see real time status updates on where their order is in the process. Is it still being packed, right? If it’s out, is it out for delivery? And if it’s out for delivery, where is it? So I think that piece of it, then look, you’re still going to have this heightened level of tension in your consumer base. They are going to reach out to you. Be available across channel. Right? Don’t make it so like, “I gotta go email you,” because nobody really trusts that you’re going to get back to them in a timely fashion. Be available in real time channels, like chat, the voice channel. Right? And if they’re going to go to social media and rip on you because you’re not giving them information, be there to answer their call there. Now when your agents then are engaged with them, let’s make sure they have the data because that’s the worst thing that can happen for a poor agent is, “Now I’m dealing with this very frustrated customer who’s asking about the flowers, the food, the cake,” whatever it is that they’ve ordered from you, and you don’t have the answers. And so you’re sitting there going, “I wish I could help you, but I don’t know where your order is.” Right? But here’s where the brands that are going to separate themselves from the rest of the pack are the ones who are proactive. The ones that reach out to you to keep you abreast of where your order is. So you don’t have to come to me. I’m sending you text alerts, I’m sending you emails, right? I’m letting you know where your order is. And then if there is any change in that, I’m also letting you know, to let you know that you can make a change. Let me give you a really quick story. Went out and ordered a ton of groceries from a delivery provider and at noon that day, I got an alert that your shopping cart is being packed. I’m like, awesome. Right? Food’s coming. I’m super excited. Five hours later, still no delivery. I go into a panic. We were running pretty low on some supplies. I went to another provider and bought groceries. At 10 o’clock at night, that original grocer delivered. Now I’m sitting there with two X because the other person also fulfilled their order. So I went from being really worried about food supply to now I’m sitting on so much food that I’m kind of worried that I’m taking away from the overall supply chain and I’ve got stuff that’s going to spoil. And so if you had just kept me posted as to where my stuff was, day one with that original order, I never would have gone out and doubled my spend unnecessarily so –

Gabe Larsen: (13:09)
You went to a competitor, right? Or went to another person, right? When it comes to your experience and your value. Do you feel like, you guys, that there is best practice when it comes to communication? What is too little right now and what’s too much? I mean, it sounds like Vikas, you experienced too little. Is it more [inaudible] does it pick up during and then once it’s delivering? Any tactical recommendations there?

Vikas Bhambri: (13:35)
Sure. I’ll start and I’ll let Mike chime in. But from my standpoint, especially in a situation like this, you can not take the position that you are over-communicating. In fact, let the consumer tell you, “You know, what, I’m going to unsubscribe or stop sending me alerts.” I’d be shocked in this event, during this event, if that would be the case, but give them the option to opt out. But otherwise at every juncture that’s relevant, I would make sure that I was proactive with my communication.

Gabe Larsen: (14:10)
I like that. Mike, anything you’d add?

Michael Miller: (14:12)
I mentioned our consumer surveys. We’ve got a data point that says 68% of consumers explicitly want more frequent updates than they did pre quarantine. So, I think absolutely the point is right. Early and often should be the bias and I think that’s what customers are looking for right now.

Gabe Larsen: (14:32)
Yeah. I’m just amazed at some of the changes companies have had to make in order to facilitate some of this. I’ve got a friend who, I think you highlighted it Mike, he closed down obviously his retail shop, and now they do tons of business curbside, but I love that flexibility. I like that frequent communication. Times have changed. We got to change it. One other thing I wanted to kind of dive into is obviously artificial intelligence is a topic of conversation and has been for a while, but boy does it feel like it kind of moved into fourth gear, fifth gear here as companies are looking for more ways to do things with less. As you think about the supply chain, as you think about the customer experience, how can AI start to infiltrate and make things better for us? Vikas, let’s start with you.

Vikas Bhambri: (15:20)
We just rolled out the biggest stress test to any customer service operation that I’ve witnessed in 20 plus years, right? Like I said, the level of anxiety, the level of expectation of volume of inquiries, right? So for every one order now people are seeing four to five inquiries coming in or tickets, or however you want to designate it. But basically customers reaching out, right? Four to five X, what is the traditional inquiry rate per order. So that’s significant and your customer’s care operation is not set up to handle that volume. And guess what? It’s really hard right now to go out and hire more agents because it’s hard to hire them. It’s hard to recruit them. It’s hard to train them. So you’re kind of making it, exacerbating the challenge. So this is where artificial intelligence can be a really powerful solution in this time. So what we’ve done at Kustomer, we kind of rolled out our Customer IQ Suite, and this allows a number of key things. One, that initial self service that I was talking about before for customers to be able to self serve and answer some of their own questions. For you to update them with your policies and procedures. And you need to be nimble. It’s not going to be static, right? So you can’t go to IT and ask them, you need a three day turnaround on updating something. You need to put it in the hands of the business users, right? Every time, if you’re, for example, an airline and you’re going to constantly be tweaking your refund policy, right? Put it in the hands of the business users to update those knowledge based items, which then get passed on. But then when the customer comes to you, how do we prioritize those requests? So using intelligence to then route those inquiries. If I’ve got an order that was delivered two days ago, and Mike’s got an order that is out for delivery right now, let’s make sure we prioritize Mike because Mike is probably really concerned about where his order is, right? Over Vikas, who got it two days ago and maybe was like, “Hey, you forgot to check.” Right? So being able to do some really cool things like that, using artificial intelligence, then when the agent gets engaged to help them suggest next best action. So yeah, if you didn’t have an AI strategy before, now’s the time because I know people are like, “No. It’s going to take me time. It’s going to take years. I don’t have the expertise.” There’s some really quick things that you can do to fundamentally change how you operate in this environment.

Gabe Larsen: (18:13)
I like that idea that [inaudible] AI basically from that customer journey [inaudible] makes it better. A little more easy. A little more [Inaudible] for the customer and for the brand. Mike, what would you add to that?

Michael Miller: (18:29)
For us, it’s all about what you guys mentioned earlier, which is getting more proactive. So we’ve got nearly four billion shipping events on our platform right now, and we’ve built machine learning models to crawl all over those specifically so that we can predict when an estimated delivery date or a promise date is going to be missed. So for example, just last week, we identified over 300,000 shipments that were going to miss their promise date and we did it up to 36 hours before the carrier even reported the problem. So you’re talking about up to a day and a half before you would otherwise know there’s a problem. When you can reach out to the customer, you can reassure them, you can appease them, you can reset expectations, you can talk to the carrier about the issues. So it’s really for us all about identifying stuff that the carriers aren’t telling you and that you can’t otherwise as explicitly see in the network so that you can get out in front of these issues and create better customer experiences. That’s the biggest place where we’re deploying it.

Gabe Larsen: (19:33)
Yeah, that’s incredible. The 36 hours. That’s a long time before obviously the carriers knew about it. Well, let’s wrap, guys, a lot of fun conversations, obviously challenging times need to figure out the best way to do that. Specifically, thinking about this idea of, “Where is my order.” Before we leave, advice for customer service leaders. Give me kind of your summary or your takeaway. Vikas, let’s start with you.

Vikas Bhambri: (19:58)
Yeah. I mean, my advice to customer service leaders is you have a once in a lifetime opportunity, right? For the last few years, every leader I speak to, not just in the customer service, but the C level in the boardroom has said, “My threat is Amazon and Walmart. When do they come into my market?” You have an opportunity here to take customers away from them because they’re having their challenges just like you are. So it’s a once in a lifetime opportunity because you have this opportunity to acquire customers. I mean, I’m seeing CACs have literally zero, right? Customer Acquisition Costs of zero. But if you drop the ball, and now the pressure’s on you Mr. or Mrs. Customer service leader, if you drop the ball, when this pandemic ends, those customers won’t be there. What do you do? Think about quick wins. What can you do? Whether it’s on the agent experience, the automation piece, the bringing in of this order data into your contact center environment, into your customer care world, to be proactive with, there are ways that you can fundamentally change your business, not just for the short term, but we’re all going to come out of this. How does this actually put you in a better stead for when we come out of this pandemic? So that would be my feedback to customer service and C level folks all across the globe.

Gabe Larsen: (21:26)
You’re right and when we come out of this, there’s going to be winners, right? And if you do it right now, you’re going to be standing on that pedestal. I can’t agree more. Mike, what would you add?

Michael Miller: (21:36)
Very similar. I think there’s a strategic lens and a more tactical lens. Strategically, it’s exactly right. I mean, evaluate your partner ecosystem and the extent to which you can identify tools that allow you to get proactive, that allow you to get more efficient, automate tasks, I think is an incredible opportunity. More tactically, if you’re in the care center, our advice is, we’re seeing specific spikes in things like general delays, address issues, COVID related delays. So if you can build targeted workflows around getting proactive and issuing customer communications and reassurances around those, that’s going to serve you really well these days.

Gabe Larsen: (22:23)
Yeah. This proactive nature, now more than ever, I think we’ve gotta be proactive. Guys really appreciate you taking the time today to talk about COVID and all the different challenging times we’re participating in. And for the audience, I hope you have a fantastic day.

Michael Miller: (22:37)
Thank you so much.

Vikas Bhambri: (22:37)
Thanks Gabe.

Exit Voice: (22:38)
Thank you for listening. Make sure you subscribe to hear more customer service secrets.

Employees: Your Most Loyal Customers With Vipula Gandhi

Employees: Your Most Loyal Customers With Vipula Gandhi TW

Listen and subscribe to our podcast:

In this episode of Customer Service Secrets, Gabe Larsen is joined by Vipula Gandhi, the current Managing Director at Gallup, to discuss customer service data and the connection between customers and employees. Vipula has a wealth of experience, working in several industries from banking, to hospitality, to consulting. She has also worked all over the world in India and Singapore; and cities such as Dubai, London and now Washington D.C. As a true expert in the field, her insights on customer and employee engagement are sure to help businesses improve their customer service experience. Listen to the full podcast below.

Customers Feelings Are Facts

Vipula discusses with Gabe that companies need to understand their customers to succeed. She notes that while most CX tactics and strategies are focused on rationale, logic, and the process that the customer goes through, the most important and effective strategies involve the emotions of the customer. Data, effective strategies, and measurable company growth can come from a study of the effects of emotion. Vipula wisely states, “…to customers, the feelings are facts. So what our research and science has shown is that customers make their decisions largely based on emotional factors.” This science of the impacts of emotion is relatively new, but dramatically improves the customer experience. Gabe responds and summarizes this point by stating, “…it’s about trying to tap into some of those maybe emotional aspects of the customer experience, but then bring that back to actionable or rational drivers that you can do to drive that emotional experience.”

How Complaints Can Actually Increase Brand Loyalty

Another interesting discussion point between Gabe and Vipula is the idea that if complaints and problems are handled correctly, it increases the emotional connection customers have with the brand. It ultimately leads to organic growth as they share their experience with friends or post about it on the company page. Vipula describes this with the following example: “You use the product or service, you had a problem, you call a customer service agent, or you did that over email, and you explained your problems and the way they recovered that problem for you made that emotional connection stronger. So data tells us that within complaints are your opportunities.” Seeing complaints and problems as opportunities to not only improve your customer experience process, but to show the customer that you are there for them and are capable of helping them is the necessary mindset that all businesses need to have.

The Importance of Treating Your Employees With Care

Lastly, Vipula highlights the importance of treating employees with as much care and respect as the customers. She states, “Employees are consumers of the workplace and just like we treat customers, if you want to keep them, if you want to build an enduring talent brand that transcends time, employees have to be taken care of.” Employees that are taken care of and know they are valued and appreciated will work harder and build relationships with customers. This will increase productivity and profitability. Vipula notes that people cannot share what they do not possess and so employees that feel valued will be able to share that and help customers feel valued. In turn, that will increase brand loyalty. To continue to highlight the power of the relationship between employees and customers, Vipula ends by sharing this point of data from their research. “When companies harness the power of these two insights … they had about a 240% boost to their key metrics like sales, referrals, retention, growth.” This strategy works and businesses are already seeing the benefits of it.

To learn more about customers, employees and how to drive customer engagement, check out the Customer Service Secrets podcast episode below, and be sure to subscribe for new episodes each Thursday.

 

Listen Now:

Listen to “Vipula Gandhi | Employee and Customer Engagement” on Spreaker.

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Full Episode Transcript:

Employees: Your Most Loyal Customers With Vipula Gandhi

Intro Voice : (00:04)
You’re listening to the Customer Service Secrets podcast by Kustomer.

Gabe Larsen: (00:11)
Hi welcome everybody. I’m excited to get going. Today we’re going to be talking about employee and customer engagement, the power of managing both of them to drive customer loyalty. To do that, we brought on Vipula Gandhi. She’s currently a Managing Director at Gallup and Vipula and I actually go pretty far back now that we’re getting older. We were chatting the other day and it’s been multiple years, five plus years since we’ve spoken, but Vipula has an international array of experience. Originally started in India, London, Dubai, Singapore. She’s currently residing in Washington, D.C. and has worked in hospitality and consulting and banking. And so when it comes to the customer experience and the employee experience, not only is she kind of eat, drink and sleep some of that in practitioner land, but also from a consultant, and now obviously at Gallup helping companies figure out this interesting dynamic between the employee and the customer engagement. So Vipula, thanks for joining. How are you?

Vipula Gandhi: (01:13)
There you go. Thank you Gabe, I’m excited to be here.

Gabe Larsen: (01:16)
Yeah, I think this is going to be a fun talk track. Again, we have some fun history together as we both worked for Gallup in Dubai, five, six years ago, but I gave a brief overview of Vipula, but can you tell us just a little bit more about yourself and then specifically kind of what you guys do over at Gallup?

Vipula Gandhi: (01:31)
Absolutely. So Gabe, as you’re very, very aware, I’m passionate about leveraging human potential. Whether they are employees, they are leaders or they are customers, I guess just directing all the potential towards organic growth with health societies and countries. So that’s why I am really excited to turn up to work every day, whether or not in quarantine times, just to my office here in the house. At Gallup today, I am the managing partner and I look after the business strategy, the business performance and talent for the consulting side of Gallup, and really excited to be here today.

Gabe Larsen: (02:10)
Yeah, no, I appreciate it. Gallup’s been legendary, not only in its research, but I think in the private domain, in the business domain, but obviously in the public domain. Do you do much with any kind of polling or the stuff around that stuff? No, right? You focus more on the business…

Vipula Gandhi: (02:29)
I focus on the consulting side, where I help organizations drive organic growth through employee and customer work. Although a lot of our polling work is also of interest to our corporate clients, so when those two merge, I work on that. For example, we have a corporate client whose vision and mission is to focus on women’s health globally. Now, we can dip into a lot of our expertise and polling across the world to figure out the current state, the challenges and the opportunities, and track measurement of future progress made. So sometimes the worlds collide.

Gabe Larsen: (03:05)
I just love that side of it, right? I mean, the thing that I’ve always valued about Gallup is just the research based approach, right? Sometimes when you get into this employee and customer world, it can get a little more touchy feely, but some of the research and the data that you guys have brought to it, I think is interesting, and hopefully we’ll get into a little bit of that there. So with that in mind, let’s just set up the big picture. We think about employee experience, we think about customer experience, what is wrong with the way we are currently thinking about customer experience today?

Vipula Gandhi: (03:37)
Thank you so much, Gabe. And I think that’s an awesome question. And as I think about how do we really compete in the market? In any organization that you work for, we compete on either price or we compete on the product and service features, or we compete on something called this customer experience, that’s a bit more gray and hazy and an area that allows you to innovate and do new things. So customer experience is what helps us differentiate in what we are trying to do. Now, even before the COVID-19 hit us five weeks ago, at least here in Washington, D.C., what we were seeing was two big challenges organizations were facing with customer experience. The first was really, we are information rich today, but insights poor. Now, we all know that we need insights that we can impact, or immediately action, as well as think about how we can strategically focus our work in the future. So once you have the right data, you need those insights that you can action on and then you have people who are enabled and empowered to deliver on those experiences. So the first question is, do you have the right data? A lot of organizations focus a lot on rational aspects of relationships and Gallup talks a lot about our research and experience on the emotional aspects of customer relationships. So, do you have the data and is it at the right level at which you can create action? And what we have seen when we work with organizations Gabe, is that the focus really gets on administering a client experience platform or a program and managing data rather than focusing on actually implementing the changes that we need to do from the insights we gathered from the data.

Gabe Larsen: (05:32)
That’s so true, right? It’s like —

Vipula Gandhi: (05:33)
Yeah. Absolutely. You just, all the focus goes there, Gabe.

Gabe Larsen: (05:36)
Yeah. We love the net promoter score, right? We love to administer that survey to our customers and then we don’t do anything with it. It’s like, “Okay, our MPS is blank. Alright, moving on,” and then we kind of go somewhere else.

Vipula Gandhi: (05:52)
I would just talk a little bit more about that Gabe, really, because it is easy to say it’s actually hard work. You and I have done that, changing stuff. But the other challenge I’ve seen organizations facing, Gabe, is around difficulty in managing the cumulative experiences across multiple touch points and multiple channels over time. Now, we all know that our research has very clearly demonstrated that customers do not identify their relationship with an organization to one channel or — but a sum of every touch point. So, it is not easy in the world of omnichannel when people are looking you up on the internet and actually doing the transaction somewhere else, and the connectedness between the two is something that organizations face challenges with. And then COVID-19 struck. We haven’t even spoken about COVID-19. I mean, managing change and managing change and managing customers was difficult to say in stable times and over the last five weeks, if you’re not a healthcare and not a grocery organization, you’re actually risking irrelevance in the market. And all your customer satisfaction matrix and customer journeys have been thrown out of the window in the times of crisis, and all they’re talking about is addressing our customers; what they need today, here and now. How do we, Gabe, provide our services to them to empower teams and foster decision making in a safe way today? But right now, even government organizations and our clients are realizing that we have now come into a phase of next and beyond COVID-19. So, we know that a lot has been written about how customer preferences and business models will outlast the crisis. So how are you going to endure in this new normal, in and out on blackout periods, in a more digitized world, with lower cost structures and new value propositions? So I guess all of us have a challenge in front of us.

Gabe Larsen: (07:52)
Yeah. It really is. And I want to hone in on one thing you said just a minute ago, because I think it is really pertinent to the conversation; but it’s this idea of rational versus emotional, in the way in which we kind of think about and measure that. Can you just double click on that for a second? Because I think it’s again very important to the world we’re now in, because we certainly — and I don’t know the, I’m not the expert on — but there’s certainly a rational element to it like, “I want my stuff, like I need fast recovery or fast stuff.” But also, there is an emotional element like, “My life is — I’m feeling things I haven’t felt” and to be able to tap into that. Can you talk about how you guys think through that a little more?

Vipula Gandhi: (08:37)
Absolutely. So, Gallup’s customer experience science is truly built on the foundation that to customers, the feelings are facts. So what our research and science has shown is that customers make their decisions largely based on emotional factors. I want you to think about the time you got married or you bought your new house, were you rational, or were you emotional? So if you design your customer experiences on rationality alone you will lose out. Now, rationality is important. Think about transactions, scheduling, inventory, communication models, these are very important. They build foundations, but the emotional aspects, that are trust, hope, friendship, pride, that’s what makes our decision. I’ll give you an example. Think about wait times. Right? A lot of times organizations are chasing wait times, reducing wait times for customers. And wait time is a rational phenomenon.

Gabe Larsen: (09:43)
Absolutely.

Vipula Gandhi: (09:43)
But, [inaudible] what we have found is that it’s not even the wait time that matters, it’s the perceived wait time that is more important. So, not exactly how many minutes I waited, but how many minutes I felt that I waited standing in a queue to get to a person at the branch trying to serve you. And the more that they put a television there, they give you a form to fill, they come and talk to you. They have ensured that no table looks empty because then you will feel that wait time is longer because the number of agents are less than they should be. So how do you manage the perceived wait time is actually solving the emotional need. But I’d also ask, think about the best of the brands that you use and how you feel about them. And everybody knows what a great job Apple has done with it. It’s about how you feel having bought an Apple product, that sense of pride, that sense of having higher — trusting that you have the best screen size, the best processing power and things like that. But it’s really about how it makes you feel to be a customer of that brand that matters.

Gabe Larsen: (10:58)
Yeah. Yeah. That’s so interesting because it does feel like we’re not doing that. What I mean by that is if it’s not the instrument, right, the surveys that we often do, it is we’re often focusing on the rational side of it, right? The wait time thing, so interesting, right? Because we — Oh, that’s such a powerful example. It’s not about the wait time, it’s about the satisfaction with the wait time or the perceived wait time as you kind of phrased it. You may not have an opinion on this, but why do we not go into that emotional element? Is it because of the survey instruments that we’ve often created that just focus on the rationale and therefore we manage and kind of action around those? Is it, we just haven’t understood that when it comes to human decision making, the emotional side is more valuable than just the rational side? What’s the, I feel like when I’m talking to you, like, it’s so true, but I don’t think most companies get that. Am I wrong?

Vipula Gandhi: (11:59)
You’re absolutely right. And if you just think about, the rational is easy to put your arms around it, right? Emotions are tougher. I can give you the fact that when you say emotionality, what you’re measuring in your surveys are things like, how long did you wait? Did we meet your needs of what you’ve called us for? But rather thinking, how this individual felt that entire exchange went? Does he feel that the promises that were made to him were kept? Does he feel that they are proud to be a partner to you? Do you feel that the promise is kept, and this is a [inaudible] company that solves my needs. Now this is a, you know, a little bit of an ambiguous concept. And the other fact is that neuroscience and behavioral economics that have brought this emotionality aspect of economic decision making of humans being emotional is just, maybe 50, 70 years old; not like other sciences, which are, economics, which is based on rationality, which has been there for hundreds of years. A little bit of a new field of science, relatively difficult to put arms around it. However, now Gallup has written a lot about it. We have figured out how you drive these emotional outcomes to some rational drivers and behaviors and obviously values [inaudible]. A little bit tougher, but can be done.

Gabe Larsen: (13:30)
That makes more sense because I’m thinking, some of the questions you asked and I’m thinking of instruments, just because of the world of customer service, customer experience, we all love our net promoter scores and our C-SAT and things like that. But the questions you were kind of phrasing and you’ve said them, but I’m forgetting them, but they weren’t the typical, “Do you recommend” question? How satisfied were you? They seem to go a little above and beyond, but I love the tie in that you mentioned, it’s about trying to tap into some of those maybe emotional aspects of the customer experience, but then bring that back to actionable or rational drivers that you can do to drive that emotional experience. That’s a cool, tie-in, that’s fun.

Vipula Gandhi: (14:15)
Maybe also give you another example Gabe, now that we’re talking about that subject, right? We all want to ensure that no customers are dissatisfied with us or not complaining to us. What we have found through science and through our experience and working with clients in this area is that we don’t want people to complain, obviously, but when people complain, there’s an opportunity for you to actually increase the emotional engagement with the brand after the complaint, more than what it was possible before the complaint. Let me explain that to you. You use the product or service, you had a problem, you call a customer service agent, or you did that over email, and you explained your problems and the way they recovered that problem for you made that emotional connection stronger. So data tells us that within complaints are your opportunities. And I just want to mention this thing about this company called Chewy. Now, because you have pets Gabe and we love our pets–

Gabe Larsen: (15:17)
I just got done walking my dog. I just got done walking my dogs. Yeah.

Vipula Gandhi: (15:20)
So I love the example of chewy.com on customer experience because a lot has been written about Apple so we don’t want to go there. But, Chewy is the online provider of pet foods and supplies and tries to provide differentiated customer experience, and it competes with Amazon. They have raised, doubled down on the customer centric culture and basically it’s very refreshing when you hear chewy.com say how they trust agents to treat their customers right. And they provide empowerment to the agent level. So there’s a couple of stories going on on Facebook. I don’t know whether it came to your wall or not. It’s about a lady who basically wrote to chewy.com that she has these bags of pet food; a dog, and a cat pet food, and she lost the dog 15 days ago and then lost the cat two days ago. It was really bad timing for her. So she said, “Can you take my two pet food bags back?” Chewy.com actually responded to her. They basically told her that they refunded her money, they asked her to donate those bags of food to the local shelter. A week later they sent her a set of flowers and it was a non-scripted e-mail, non-scripted handwritten letter saying, “We really think,” they named the pets by name, and they said, “Losing two, this is so sad,” a beautiful message with big flowers. And this lady actually went up online and organically gave feedback about her customer experience. And that’s not the only one online on Chewy’s customer service and lots of people have been about pet portraits and how they get mail saying that it’s getting hot right now, “How to prevent your dog,” and they always name the dog by name, and how — in this weather. So you see how they go above and beyond. And that’s the connection you mentioned about employees, right? You can deliver this kind of service that our employees and the customers of chewy.com are really their brand ambassador. I don’t know how many of my friends are actually coming to me about using them, keep in mind that they don’t have a reference program for customers. Customers are doing this because they are just so happy with what they have, whether it’s their videos on YouTube, whether it is 24 seven phone service, it’s just amazing how they are dealing with it. And it’s out there for everyone to see on wall street.

Gabe Larsen: (17:54)
No, I love it. I’d love it because that’s a great example of just doing it differently. And again, I think tapping into some of both the rational and the emotional side of the equation. As a followup to that, one of the unique things about Gallup is this employee side and how you guys try to kind of bring both the employee and customer experience together. Can you touch a little bit on the employee side and how you guys kind of see that fitting in?

Vipula Gandhi: (18:22)
Absolutely. So, employees are consumers of the workplace and just like we treat customers, if you want to keep them, if you want to build an enduring talent brand that transcends time, employees have to be taken care of. And talent is always important and I know we went from historically lowest unemployment rates a couple of months ago to 26 million unfortunate job losses in the last few months, but talent will always be important and treating customer right starts with treating employees right. Gabe, you can’t give away what we don’t have. You can’t bring happiness if you don’t have it yourself and you feel unfairly treated. And a lot of founders, whether it’s the founder of Virgin or Southwest, they all have spoken largely about the importance of treating employees right, and especially in the service industry Gabe, it is extremely important that we understand the role employees play to deliver that experience. At Chewy.com, ensuring that they feel they can bring their talent to the role, and then they have the empowerment to do that. And everybody knows Ritz-Carlton’s empowering their people to deliver great service. Some of the iconic brands have always, always trusted their frontlines, ensuring they hired the right people with the right talent and give them the empowerment they need to bring delight to the customers. So, it’s a crucially important role in any customer experience that you will design.

Gabe Larsen: (19:55)
Yeah. I love that because I do feel like it’s, oftentimes we manage them separately. We think about them separately. We’ll get an NPS score and then we’ll get maybe an employee engagement score or some sort of employee satisfaction score. One is run by product or by customer experience or by marketing, and the other is run by HR and they don’t make a correlation. They don’t see that, “Hey, maybe our customer service reps are the most dissatisfied and they’re the ones who engage with our customers the most.” Should we talk about that because they’re always so separate? But that philosophy of kind of bringing that together makes, I think, a lot of sense and I’m surprised that more organizations don’t do that. Why do you think a lot of organizations don’t do that? Is it just because the one’s kind of typically been run over here and one’s been run over there?

Vipula Gandhi: (20:48)
So it’s really the organizational structures. You and me are very aware Gabe that activating great customer experience takes commitment from leadership. It does take measurement. That’s important. It takes advanced analytics, and more importantly, it actually takes accountability and follow through in the front lines to actually deliver it. Now, we know that when employees create an emotional connection with the customer, it does have a profound implication for productivity and profitability. When was the last time you went to a store and you entered the store in a retail environment and the person was there not even helping you choose dresses? And sometimes they really help you and you really kind of end up buying four things when you went up to buy one. It does matter. And when employees know how to make most of those moments that engage customers, we know that customers will spend more, they visit you more often, they will resist competitive overtures and they promote the company brand to others, and also forgive the occasional service blunder that we all commit. So it’s important to build that connection. In the organization, generally, these two things are looked at in different places. However, by serendipity, one of our clients, sometime like 15 years ago, we actually discovered that we were working with them on both employee side and customer side, driving those experiences, and we looked at the stores, the top 10 stores on employee experience driving, and we looked at the list of top 10 stores that customer experience was being done well. And we hypothesized that there’d be a lot of commonality between the two. Low and behold, we found that those two lists only had one store in common. That was something that surprised us in the data. And then as we started looking and doing some business analysis on the impact on business value, they looked at the fact that if companies just focused on driving employee experience, they got a 70% boost. If you look at companies that only focus on customer experiences, they also realize about that much. However, when companies harness the power of these two insights and parallels and they were doing both well, they had about a 240% boost to their key metrics like sales, referrals, retention, growth. If you found the data, it came as a surprise to us as well, and we then repeated this hypothesis with multiple other clients, and we found that data tells you, it is just better to look at both these matrix together. So we can have employees who are engaged, who are talented, who want great experiences and who are empowered to then deliver on those engaging customer experiences, which will be great for organic growth.

Gabe Larsen: (23:47)
Oh, wow. Interesting. And that was, what kind of industry was that?

Vipula Gandhi: (23:51)
That was the retail industry because they had hundreds of stores across the U.S. and you need good data to at least do the first few experiments. So that really worked well. And it was so serendipitous that we came to this finding.

Gabe Larsen: (24:04)
Wow. So like a 2X, 2.4, 2.5X, when you were able to kind of start looking at those together. Interesting Vipula. Well, I love the talk track. We might have to do this again. You seem to be just full of interesting facts and tidbits. Obviously you’ve been doing it a long time, so I’m not surprised. We’ve hit a lot of different items, the rationale, emotional, the customer, the employee, and kind of managing them together. As you think about customer experience leaders out there, customer service leaders, is there a word kind of advice you’d give them as we leave today about how they can do their job better, especially in the current environment?

Vipula Gandhi: (24:44)
Absolutely. And I would start by saying, you have to, in this next and beyond phase of COVID-19, you have to restart with customers. What you have done so far to engage your customers, don’t take that for granted. I was a big loyal person of Marriott, and I loved their CEO’s talk about, very emotional talk about LinkedIn, actually about how he had to let go of people and how they’re hoping for things to start again. But in spite of all that, I love them. I love their leaders. I was concerned that they lost so many people, they lost money, is this still a safe place? Would they really, clean displays [inaudible] that’s important. And then I’m reading about how they are getting the hospital grade disinfectants in hospitality now. So all I’m saying is you need to regain engagement of customers in a limited budget and time. So we have to restart with customers and you have to redesign your customer experience because how to target new channels, how to target different customer segments, and how to cater to post COVID safety and quality and other concerns that your customers will have. New channels, if your expertise was meant to say branch experience, things that moved on to digital more, now how we want to deliver a human experience through technology? How to cut off new channels that you didn’t use before, like WhatsApp. How are these channels going to be safe? How are they going to be error free? How are they going to be — what would the new channel experience look like? So we have to restart with the customer. We have to redesign our customer experiences and we have to keep close to our customers, listen to our customers and listen to our front lines because that’s where we get fast ideas in a limited budget to think about what the future holds for us. So, you know, I’m deep into — I love thinking through this, this is a new challenge, and I truly believe in the era of the great human spirit. We will come over this challenge and forge ahead.

Gabe Larsen: (26:57)
I love it. Those are inspiring words. We need to overcome it because it certainly, for many people has been a very, very challenging time. Well Vipula, I really appreciate you joining. If someone wants to get in touch with you or learn a little bit more about Gallup and some of the things you guys do over there, what’s the best way to do that?

Vipula Gandhi: (27:18)
Digital, LinkedIn. My name is Vipula Gandhi. Do connect with me on LinkedIn and I would love to continue the conversations. This is a subject close to my heart so –.

Gabe Larsen: (27:24)
We can tell, we can tell. Again, thank you so much for taking the time and for the audience, have a fantastic day.

Vipula Gandhi: (27:30)
Thank you so much.

Exit Voice: (27:37)
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This Direct-to-Consumer Brand is Disrupting Feminine Care With Experience

Watch the webinar recording here.

It’s not easy being a new brand in an industry with a lot of established players. However, if you can use your incumbent status to take a fresh look at the marketplace, you can end up turning the entire category on its head.

LOLA has done just that. The forward-thinking feminine care brand has overturned the status quo with their totally new approach. By highlighting what actually goes into their products, providing a convenient subscription experience, and openly talking about women’s health issues that were previously taboo, they’ve created the first lifelong brand for a woman’s body.

While they started with tampons, the brand has quickly expanded their range, now offering pads, wipes, condoms, and other reproductive wellness products. Despite their rapid growth, they’ve kept their focus firmly on delivering great, personal experiences to every customer.

On our latest webinar (hosted by Glossy), LOLA’s Senior Manager of Customer Strategy and Operations Caroline Dell spoke with Kustomer’s Senior Manager of Marketing Programs Stacey Dolchin about their strategy and approach to delivering a highly personal DTC experience. For more information on delivering a great DTC experience, check out our whitepaper.

Webinar: How LOLA disrupts personal care with personalized, direct-to-consumer experiences

Pursuing Purpose

Jordana Kier and Alex Friedman founded LOLA in 2015 with a simple idea—women shouldn’t have to compromise when it comes to their reproductive health. It all started when the two women realized that the tampon brands they had been loyal to for over a decade weren’t don’t disclose what they’re made out of. What was actually in those tampons? This desire for straightforward transparency and frank discussion about a topic that we’ve traditionally shied away from has animated the brand ever since.

This unique perspective, coupled with high-quality products and a smart business model, has helped them shaped the broader conversation around women’s health since launch. By empowering women with information, they’re helping their customers have more control over what they put in their bodies. By focusing on questions asked by real women, they’re dismantling the stigma that surrounds female reproductive wellness by creating a two-way dialogue with an engaged community. Every communication channels is an opportunity for a conversation—-website, social media, email newsletters, and their blog, The Broadcast.

By answering questions that their competitors aren’t with a relatable and no-nonsense brand voice, LOLA has both become a resource for their customers and started a national conversation about reproductive health.

Rewarding Relationships

LOLA’s goal is to create relationships that last a lifetime. They receive 1000+ emails per week from customers about personal topics, often asking questions to LOLA’s agents before consulting with a doctor. To return the trust their customers have in them, LOLA’s team goes above and beyond to make sure their products are rushed to women wherever they need them. From sending tampons to a customer’s hotel via Uber, to overnighting condoms so that they arrive in time for a honeymoon, LOLA works overtime to create a memorable experience.

For many younger customers and their parents, their ongoing relationship with the brand starts with LOLA’s First Period Kit. After posting a video where LOLA founders told their first period stories, they were inundated with moms reaching out to ask if they offered products for teen—a great example of their ongoing dialogue with customers driving product development.

For their most recent launch of Sex by LOLA, they sent 100 loyal customers mailers of their new products. It was an easy way to get feedback while rewarding loyalty, and one customer even emailed to say that she loved the products and, as a single mom, they inspired her to start dating again.

A Single View in a Single Platform

All of this wouldn’t be possible without a platform to manage their relationships and provide incredible experiences. Their previous platform wasn’t linked to their back-end system, so they had little context on the customer’s order history or subscription details. The same was true for incoming messages on social. With Kustomer, it’s now easy for their agents to switch between social and support channels, helping their customers on their preferred channel at a moment’s notice.

Context Cards with buttons enable the team to take direct action such as modifying, cancelling, or scheduling a subscription, and checking on shipping status for an order. Clicking on the “Modify” button, for example, takes them directly to the customer’s subscription, where they can edit the frequency, products, etc. This makes it easier for the team to spot orders that have been placed but may need modifications. LOLA has a search for customers who have emailed AND placed an order in the past day, so that agents can make modifications to the order before it actually ships.

Features like Workflows and Bulk Messaging have helped LOLA handle larger issues proactively. When their subscription management page experienced a brief outage, LOLA created a workflow based on keywords that automatically identified and then proactively bulk messaged thousands of impacted customers to notify them of the issue. As a result, LOLA was able to handle over 5x their normal volume at a highly-sensitive time.

Since combining all their order, subscription, and customer data into the Kustomer platform, LOLA’s reply time has decreased by 15%, while their agent efficiency has increased by 15%. Watch the webinar recording.

A Brand for Life

LOLA’s mission is one-of-a-kind, and with Kustomer, they’re able to scale while living up to the values that inspired them in the first place. For a brand that empowers and informs women, LOLA’s team needs to be just as empowered and informed to deliver great service. Building meaningful, ongoing relationships is a major part of what LOLA stands for. With Kustomer, their agents are able to get a holistic view of every subscriber and see their entire history with the brand. With more streamlined support, they can focus on what matters—a groundbreaking, personal experience. Delivering service with a purpose requires a robust and flexible platform, and with Kustomer, LOLA is building relationships that will last a lifetime.

For more information about building a great DTC experience, check out our whitepaper.

Webinar: How LOLA disrupts personal care with personalized, direct-to-consumer experiences

How Subscription Companies Can Deliver a Better Customer Experience

Subscription’s rising popularity isn’t a fluke. There are a lot of real benefits for customers and businesses alike that you don’t get from traditional retail. Customers receive just what they want delivered to their door—even things they didn’t know they wanted—with no extra effort required.

However, their biggest benefit is also a huge drawback. Because customers don’t need to think about their subscriptions all the time, it’s easy for them to cut them loose once they stop adding value to their lives. This is why brands with subscription models are plagued by churn. Customers might jump on with ease, but if they don’t find lasting value, the novelty wears off.

Subscription-based companies must reward loyalty. They should be incentivizing customers to stay with them for the long haul, delighting them with new surprises and offers based on the length of time they’ve been subscribed. Every delivery must be used as an occasion to build a deeper connection. Agents need to be well-trained to deliver a complimentary experience, consulting with customers on their options and learning more about them to better target offerings.

There are more than 2,000 subscription box services on the market right now, but only a small percentage will still be doing business this time next year. To succeed, subscription businesses need to deliver a valuable customer experience. What does this level of customer experience look like on a practical level?

Rewarding loyalty

Bespoke Post and Boxycharm reward the customers that have been subscribed the longest with more hand-picked, high-value options in their boxes. The upfront cost pays for itself, as customers keep subscribing in anticipation of future surprises.

Asking questions

Every change in behavior is a chance to build a deeper connection. For a brand like Material World that delivers personalized outfits, if a customer puts their delivery on hold, it’s only in their interest to find out why. If the customer is going to be traveling somewhere warm, they could even send their box to where they’re going to be staying—with some tropical inspired options inside.

Exceeding expectations

Don’t hesitate—if a customer is asking about upgrading their subscription tier for a brand like SprezzaBox, reach out and follow up with a personalized offer. After trying out a free trial of a premium box for three months, they’re more likely to be convinced to bump up their subscription permanently!

Digging for more data

For classic subscription brands like Birchbox, agents should take every opportunity to learn more about their customers. They should be reaching out to customers to fill out their profiles, sending surveys to get a better understanding—and their organization should be empowering their agents with the data they already have.

Being proactive

If bad weather is about to roll in to a particular region, rather than being reactive and waiting for customers to respond with questions about a shipment, a brand like LOLA with a time-dependent delivery can reach out to them as early as possible and present them with new shipping options to avoid a delay.

As both brand new and legacy brands catch on to the benefits of subscription model, the delivery box options will only grow. However, the subscription companies that understand their customers and use great service and customer experience to ensure their loyalty are the ones that will last.

Want to see how Kustomer can help your company? Find out how we enable ecommerce business here.

How to Turn One-Time Shoppers Into Repeat Customers

What we learned from our webinar with DSTLD and Optimove

How do you keep customers coming back? Our latest webinar answers just that question, and features DSTLD Customer Experience Manager Laura Gramlich (read our guest post from Laura here) and Optimove Solutions Engineer Leigh Noy, hosted by our own Senior Manager of Marketing Programs Stacey Dolchin. We discussed how to build loyalty with the rush of customers that companies acquire during a busy period. Whether that’s holidays, product launches, or special events, you need to prioritize loyalty and retention to be successful.

Our conversation with DSTLD and Optimove brought up an array of useful insights for dealing with these issues, perfect for any brands looking to build a stronger relationship with first-time buyers.

DSTLD is a brand that prioritizes their end-to-end experience to turn their customers into diehard fans. By selling high-quality denim and basics directly to consumers at a fraction of the price of bigger brands, they’ve struck a chord with fashion-enthusiasts. Their unique offering drives interest, but it’s important to keep these shoppers coming back for more. DSTLD has a few strategies for this:

Individualized and Personal Customer Service: By integrating their existing shopping platforms with Kustomer, they can view orders and customer conversations together. By having this information in one timeline, it’s easy to deliver fast, intuitive assistance.

Real-time Chat: One of the highest rates of drop-off for an ecommerce site occurs when a customer has issues prior to and at checkout. After launching chat on their site, DSTLD was able to respond immediately to their customers and answer their questions, resulting in a higher conversion rate at checkout.

Post-Purchase Automation: If deliveries are delayed due to a weather event, DSTLD’s goal is to identify customers who may be affected by using Kustomer, and then reach out to those who have been affected with an automated message that allows them to easily pick the next course of action.

Improved Returns Experience: DSTLD has made their returns experience a priority, constantly innovating and scaling up in the offseason to deliver the best possible experience when demand is high. Their new process for exchanges makes completing them even easier, meaning customers receive their item even faster than before.

Optimove picked up where DSTLD left off, sharing how to retain customers and build engagement after a high-demand period. They suggest following 3 key steps to make a difference in your experience to build a bond for life with customers.

1. Detect and Reward Your VIPs: VIP’s (the top 5% of customers) are responsible for 60% of your revenue according to Optimove, so it’s crucial to find them and treat them right. Look at the journey of your current VIPs to identify future candidates, then give them early access and special offers — but don’t take your current VIPs for granted, either.

2. Create a Plan for Post-Holiday Retention: The average transaction amount during the holiday season is 30% higher for repeat customers than new customers, but newly acquired customers during the holiday are 90% less likely to return for repeat business — making it all the more crucial to have a retention plan ready.

3. Strategize for The Long Game: The chances of making another transaction increases as the number of initial transactions increase — that means there’s a real incentive and knock-on effect to converting first-time shoppers. Analyze them, and apply what you’ve learned from your multi-time shoppers to convert more first-timers into repeat customers.

Clearly there’s real value in focusing on a long-term strategy for getting customers to buy from you again and again, beyond simply making more sales. Repeat customers are more loyal and enthusiastic for your brand, and buy far more than the shoppers who just stop in when demand is high. A solid strategy, top-notch experience, and a commitment to finding and encouraging the customers who are most likely to keep coming back is what will make the difference for your business — and knowing everything about your customers makes it that much easier.

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