Wednesday, January 17, 2007

Project success story: USA TODAY

Client:
National Customer Service (NCS), USA TODAY

Internal Brand:
HEROES

Duration:
12 months

Challenge:
NCS is responsible for the success of two call centers which handle all inbound customer service and outbound retention calls for USA TODAY. The two call centers are located a continent apart with one center being operated by an outsourcer that handles calls for a disparate group of clients. The call centers were doing an adequate job of addressing subscriber concerns and inquiries, but lacked processes to ensure that high-quality conversations were taking place with each and every caller. Recognizing that each call is a valuable sales tool, NCS engaged Robert C. Davis and Associates (RCDA) to implement a sales model capable of increasing subscriber retention, increasing the number of subscriptions paid through EZ Pay, and boosting new subscription sales.

Approach: With the support of top leadership at USA TODAY, RCDA launched the HEROES (Helpfulness, Empathy, Respect, Ownership, Empowerment and Service) project. HEROES was a fully customized training, consulting, and coaching program aimed at changing the way in which NCS personnel view their respective job functions. By incorporating RCDA's robust sales models into the HEROES call flows, NCS reps were able to get to heart of subscriber concerns, needs, and desires. Once the effectiveness of the HEROES process was demonstrated, RCDA launched a full-scale certification program aimed at promoting project sustainability. Through its carefully designed assessment methods, the certification program allowed NCS and RCDA to recognize outstanding performers as well as uncover any lingering areas of weakness within the organization.

Results: The HEROES project revolutionized the way in which NCS handles subscriber touches. Prior to the project, NCS reps were making little or no attempt to "save" subscribers who wished to cancel their subscriptions. After implementing the HEROES process, reps are consistently retaining 40 percent of subscriptions associated with cancel calls. NCS reps also used the HEROES process to generate four times as many EZ Pay subscriptions. But the dramatic results do not end there. By training and coaching the outbound reps in the HEROES process, the average number of sales per hour jumped from 0.9 to 3.4 for an increase of more than 275 percent. The certification process proved to be the key ingredient to sustainability because it motivated NCS personnel to continually demonstrate mastery of the HEROES process. With a significant amount of advertising and subscription revenue tied to every retained and satisfied subscriber, USA TODAY has added millions of dollars to their bottom line as a result of this project.

Monday, January 15, 2007

Discovering higher profits

When you're on the phone with customers, it pays to ask questions

By Bob Davis

Newspaper customer care centers across the land today have an opportunity to mine real gold by asking subscribers the right kind of questions with every contact. In my work with major media companies in the U.S., I have proven time and again that asking these questions consistently-which means adding a discovery step early in the call flow-will lead to a dramatic boost in sales and customer retention.

The right message

For starters, when reps ask follow-up questions, customers get the message that they're on the phone with someone who is interested in them, wants to listen and cares enough to be truly helpful.

Let's say a customer calls in to report a problem and says, "I didn't get my paper today." With a discovery step in the call flow, the rep responds with enthusiasm, helpfulness, sympathy and interest in learning more:

"Oh, I'm so sorry to hear that. I'm glad I got your call because I can help you with that today. Tell me, is this the first time this has happened or have we disappointed you more than once?"

When customers call in with a complaint such as this, they are annoyed. The first benefit of this discovery question is that psychological studies have proven when people talk about something that upsets them, they become less emotional and more logical. Getting a customer into a logical frame of mind increases the likelihood that you'll be able to solve the problem. Then it's time for another discovery question:

"Again, I'm sorry to hear that. I know how important the paper is to you. By the way, what's your favorite section?"

Selling themselves

This is where the second benefit of discovery comes in. When customers talk about the value they receive, they sell themselves and become more receptive to the solution. If the customer answers, "You know, my coffee just doesn't taste the same if I'm not reading the Sports section," you're in a strong position to ask for a chance to fix the problem. The chances are much better that the customer will accept the solution and respond affirmatively to an offer. This comes in especially handy when customers call in to cancel. They sell themselves, and you get more saves!

The discovery step carries a third benefit when a customer calls to cancel. Studies have shown that as much as 50 percent of the time, customers don't give us the real reason for cancellation initially. Again, asking discovery questions get customers talking about their problems so they're less emotional, more logical and more likely to accept your solution and stay with you as a subscriber.

What's more, everybody reads a different version of the same paper. Some subscribers might jump right to the Arts and Entertainment section, world news or the community page. Others check the sports scores each morning as part of their daily routine. One reader may be searching for a new job and checks the classifieds before the headlines. Another zeroes in on business news. Another reads stories in the fitness and living sections first. The bottom line is, the paper is a valuable part of their lives. When customers start talking about the paper's value in response to discovery questions, they sell themselves.

Quarter-inch holes

It's all about relating features to benefits. Last year, there were probably a million quarter-inch drill bits sold in the U.S., but nobody really wanted the bit, just the quarter-inch hole!

One of the most common reasons for cancellation is when subscribers say, "Well, the papers just pile up. I'm too busy to read it." That's your cue to discover. If you understand what's keeping them so busy, you are better prepared to point things out about the paper that improve their lives. Does the customer work two jobs and can't find time to read the paper? Mention the employment classifieds as a good source for a higher-paying job so she wouldn't have to work two jobs. Is the subscriber too busy to read because he's searching for a house? Mention the Real Estate section. Are you talking to a working mom? Mention the Food section's quick-and-easy recipes. The reader says he can't afford the subscription? Talk about the value of Sunday's coupons. Chances are that the customer will respond, "You know, now that you mention it, that is worth it for me. Go ahead a renew my subscription." And you have the save.

Well worth checking

It pays to ask. In fact, I have seen discovery add millions of dollars to a company's bottom line. My advice is to take a half hour and visit your call center, listen in on a few calls and ask a few questions of your own. Are your reps reaping the benefits of discovery? If they are asking questions, are they the right kind? Could your call center be generating millions more in sales and saves by asking a few good discovery questions? Could be. At minimum it's worth a listen.