Tuesday, May 15, 2007

Listening before you leap

A problem truly understood is already half-solved

When subscribers call in with a cancellation request, the most common reason they give is that they don’t have time to read. In many newspaper call centers, reps hear subscribers give this reason and then immediately jump right on the fix—usually a downgrade in the frequency of delivery or a drop in the price. But they’re jumping far too soon.

The real reason
We have found in our extensive work with newspaper call centers that it is critical to begin a robust discovery phase on the call as soon as a subscriber tells us why he or she wants to quit. Why? Because very often, the first reason a subscriber gives isn’t the real one.

In a robust call flow, our first response to the subscriber not having time to read should be a restatement:

“So if I understand you correctly the reason you want to leave us today is that you don’t have time to read. Aside from that, are there any other problems with you newspaper or its delivery that would cause you to want to cancel today?”

More than 40 percent of the time, subscribers give a second reason that turns out to be the true problem that led to the cancellation call. So on almost half the calls we handle, jumping on the fix doesn’t address the true cancellation reason.

Lower cost, higher profit
It follows that if we find out the true cancellation reason and address it instead of papering over a problem with a quick-fix or a discount, we will have higher customer satisfaction, better retention, and a more profitable organization. After all, it costs much less to keep an existing customer than to go out and win a new one.

We have found that many subscribers don’t call in with a service and billing issue until it has happened numerous times, or they’ve called in previously but the problem hasn’t been corrected. In either type of case, many subscribers don’t reveal the real issue until we complete discovery by restating and assuring help, asking about additional concerns, and then isolating the true reason for calling.

Selling value
Finally, another common reason for canceling is the end of promotional discounts. This occurs when a subscriber gets a high bill for renewal and calls to quit but doesn’t reveal the real concern until we follow the robust discovery process. If we know that price is the issue, we can begin a value discussion with the subscriber that focuses on features and benefits. When we get the subscribers talking about features they enjoy, suddenly price becomes less of a concern because they recognize the value of the newspaper!

The bottom line is that we can’t solve a problem unless we know what it is. We don’t always know the problem unless we ask for more information. There’s an old adage that says a problem well-stated is half-solved. By engaging in robust discovery, we’re helping the subscriber state—and ultimately solve—the problem. We’re helping the subscriber see value. We’re winning loyalty and retaining our most profitable customers—the ones we already have.

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