The New Rules of Customer Engagement

The rise of the culture of the Web has revolutionized the nature of how businesses and customers relate to each other. Whereas companies could once shape and direct the perception of their brand through carefully crafted ad campaigns, direct mail and press releases, today the flow of information runs fast and free, and customers now own the conversation. And because whoever owns the platform dictates the culture, the world is a more human, less institutional place to do business. Today’s customers want to feel good about the products they buy, where they came from and how they were made. Moreover, they want to like the company behind the product – that is, genuinely like it, not just press a Facebook button. We are entering an age of emotive economics. Corporations have been forced to adapt to this new, people-centric culture by connecting with customers on their own turf in more casual, conversational ways. There’s little room or respect for old-school corporatism’s pomp and protocol. And those businesses that cling to traditional behaviors in the online community will earn its scorn very quickly. Those companies that have embraced this new landscape and its risks have enjoyed great reward. For this reason, the human face, rather than steal and glass, has become the façade of big business. Yet with style must also come substance. It is no longer acceptable to be about profit alone. Companies are expected to contribute to the world in ways that make their customers’ lives better. Consumers are demanding that business be done on their terms. It should come as no surprise, then, that human values – transparency, respect, conscientiousness, kindness, trust, generosity and the like – are the keys to engaging with customers in this brave new world of business. So how can you use this new dynamic to your advantage to grow your business? You must embrace the new rules of engagement, understanding that when you put people first, profit will follow:

1. Don’t treat customers like they’re stupid.

When Netflix bungled its attempt to change its pricing structure last year, the backlash in the online community was severe, with many customers threatening to cancel their accounts immediately. It was clear that customers viewed Netflix as a value-priced alternative to more expensive traditional paid media channels, and therefore many felt betrayed by the company’s sudden doubling of their fees. While the price increase itself wasn’t really so unjustifiable, what made it unpalatable for customers was the company’s lack of transparency in explaining the business drivers behind the rate hike – the rising operational costs of maintaining a physical DVD business and the growing licensing fees for content streaming. Instead, Netflix spun the move as giving customers a “choice,” offering the option to subscribe to a DVD-only service at its lowest price ever. Here's an excerpt from their ill-advised news release: To his credit, CEO Reed Hastings acknowledged the poor handling and chalked up the misstep to “overconfidence,” which still sounds like PR spin, but hey, we’re making progress. The lesson? If a change in product or policy may have negative consequences for your customers – even if only in perception – acknowledge them, express empathy over the inconvenience or added cost, explain the reasons if possible and then point out the benefits or offer alternative options. People understand that businesses must evolve and that profit is still part of the equation. Don’t assume that your customers are beyond reason or treat them like they’re too stupid to detect what’s really going on.

2. Over-serve your customers.

It’s always good business to go the extra mile for customers, but never more so than when trying to recover from a mistake. How you handle disappointment is what determines whether your customers write you off and tell everyone about it or trust you more and spread the good word about you. When Google decided to phase out Wave due to poor user adoption rates, they didn’t just shutter the windows and bury the technology as if it never existed. Instead, they gave users months to move their data off the service, converted Wave into an open-source project and gave the Wave community the tools to get involved:

3. Be humble and listen to your customers.

Building on the success of its breakthrough app Wunderlist, Berlin-based software firm 6Wunderkinder recently launched Wunderkit, a project collaboration and management tool designed around the social connections of today’s work environment. Wunderkit was made available in a “freemium” model, offering standard features to all users for free with additional functionality available for a small fee to power users. As the company analyzed feedback from its beta release of Wunderkit, they realized the community’s dissatisfaction with project collaboration between users – one of the platform’s central features – only being available to premium users. What follows is a fantastic example of how to demonstrate that you’ve heard your customers loud and clear, understand their feelings and are acting to resolve the issue:

The customer is king, and the king is here to stay.

Never underestimate the commitment required to engage with customers effectively in today’s marketplace. Human relationships are not managed well with rigid rules and policies but instead must be governed by human values like compromise, sensitivity and transparency. It takes much more than a Twitter account and Facebook page to win the hearts of customers. You must develop a culture that is focused on and driven by the customer through and through. Be purposeful in growing such a culture. Establish your own rules of engagement. Make sure every employee is encouraged to embrace and exhibit those values. Empower them to do whatever it takes to take care of your customers. The journey may be a bit rocky at times, but if you walk the line faithfully, you’ll earn something from your customers that can never bought with advertising dollars – trust, respect and even passion for your brand and what it stands for.

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Five Often-Overlooked Opportunities to Build Trust with Online Shoppers

Just because the online shopping experience precludes you from cultivating personal, face-to-face relationships with your customers, it doesn’t mean that trust is absent from the equation. In fact, just the opposite is true. Because you don’t have the advantage of engaging with your customers in person, it’s critical that you examine each aspect of your e-commerce process to ensure that you are building and reinforcing trust at every step of the way. Here are five commonly overlooked opportunities to earn the trust of online shoppers:

Transparency

From the time a customer lands on your site until the time their order reaches their doorstep, transparency is key. It’s important to ensure that you address and eliminate all potential concerns upfront. Before your customers even reach checkout, they should know how quickly their order will be processed as well as the range of available shipping options and costs. Give your customers added assurance by providing delivery timetables that are as specific as possible without compromising accuracy. For example, you might guarantee that all orders placed Monday through Friday before noon eastern time will be shipped the next business day, as long as you know that you can live up to this promise without fail. This type of information is mission-critical to shoppers who are making a time-sensitive purchase such as a birthday gift or an outfit for a special occasion. If possible, after an order has been placed, send a follow-up e-mail confirming that the shipment is on its way, and include a tracking number, too. The fewer question marks that arise between the time your customer completes their purchase and the time it arrives in their hands, the more trust you’ll build.

Packaging

When your package lands in your customers’ hands, does it give the impression that someone has taken care to make them feel they are receiving something special that has been handled and shipped with care? Or does it create the feeling that someone in a warehouse grabbed a few things off the shelf, stuck them in a plastic bag and sent them on their way, with no thought about or regard for the recipient on the other end? The quality of packaging can have a great impact on the perception of the quality not only of the product inside but of the overall buying experience. As a result, you shouldn’t think of the cost of packaging as an expense; you should approach it as an investment in earning the trust of your customers. It’s important to go the extra mile to make sure you present your products in a way that protects and enhances the value of your brand. Grove is a great example of a company that has perfected the art and science of packaging. Each handmade bamboo iPhone 4 case, which can be custom-engraved with the customer’s design of choice, arrives encased in a bamboo frame, which is actually created as a byproduct of the production process. This ingenious idea embodies everything the brand stands for – sustainability, quality, craftsmanship and authenticity – while presenting the case itself as a unique work of art.

Follow-up

The process of building trust with online shoppers doesn’t have to end when your package arrives at their doorstep. A follow-up e-mail asking them to rate your products or provide feedback on their buying experience is a simple act of consideration that conveys your genuine concern for their happiness. Netflix frequently sends subscribers e-mails asking them to rate the audio and picture quality of a movie they recently watched or to evaluate their satisfaction with the service they received when they contacted Netflix phone support.

While Netflix undoubtedly cares about measuring the quality of their services, they are also seeking to build and maintain the trust of their customers by demonstrating their commitment to delivering a great experience every time.

Returns

A generous return policy is priceless when it comes to winning the trust of online shoppers. As commonplace as the act of buying products on the Web has become, there is always still a lingering hint of uncertainty that resides with customers because they cannot see, hold and judge an item for themselves before committing to the purchase and paying the associated shipping costs. However, reassuring them that if their item arrives and is not what they expected, they can return it without question and – even better – with free shipping, shows that you are fully dedicated to ensuring their satisfaction. Not only will you build trust but you’ll also give them an added boost of buying confidence that will keep them coming back again and again. Additionally, make sure that your return policies take into consideration what happens when things don’t go exactly according to plan. If you miss your promised delivery date, don’t add insult to injury by creating headaches for a disappointed customer. Instead, win back their trust by expressing your sincere apologies and graciously offering to credit back the original shipping fees and cover the cost of return shipping.

The human touch

Sure, it's okay to automate your e-commerce processes – charging a credit card, sending order confirmation e-mails, scheduling shipments and generating tracking numbers. But throughout every step of the transaction, you must also offer your customers the safety net of being able to talk to a real person. Not only should your customer service number be available, but it should be obvious and omnipresent so that shoppers don’t have to hunt it down. While it’s tempting to bury those digits because the cost of maintaining customer service staff can cut into your profit margins, you must remember that even in today’s Digital Age, nothing builds trust quite like genuine human contact. If you’re not readily accessible to your customers, you’re running the risk of losing their business to someone who is. E-mail and online contact forms are fine options, but they shouldn’t be the only options. Keep building trust and head off the temptation to give up and go elsewhere by making sure your customers can easily make the leap from virtual interaction to personal interaction. In an age when consumers have the luxury of almost unlimited options, you can’t afford to roll the dice with your customers’ trust. Establishing clear, straightforward expectations, demonstrating care and concern for your customers’ satisfaction, following through on your promises and being readily accessible and responsive goes a long way in transforming a casual online shopper into a repeat buyer and a loyal evangelist for your brand.

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