Harvard business schools | Customer Service Solutions, Inc.

A Story of Willie and Aubrey - 2/8/22


The gift shop was a great experience!  Aubrey had bought items online from the shop for years, but she had never stepped foot in the store itself.  However, when travel plans took her on a trip to new surroundings, she took time out of her day to go to Read more

It Matters Who You Know - 2/1/22


The season ticket account holder has an issue, but he’s not too concerned about it:  I’m going to call my guy, and he’ll take care of it. The patient is confused about their bill.  The family member says: I know someone who can help. The husband discovers a problem in the Read more

Put an End to 1-Star Ratings - 1/25/22


If you ever had service performed on your car, I would not doubt it if you received the immediate e-mail asking for that 5-star rating. They want the big ratings because that makes them look good, and to get the big average rating you have to avoid the 1-Star Read more

Signs of Service Recovery Situations - 1/18/22


As we continue the slow trend of more and more customer interactions becoming in-person again, we need to remember those signs that we’re about to enter one of THOSE conversations.  It can typically take only 5-10 seconds to realize this is going to be a high-risk situation with the Read more

In Survey Development, Think in Reverse - 1/11/22


We often meet with clients interested in conducting a survey, and when we discuss the project, many clients come with questions in-hand.  They are interested, curious, even excited sometimes about the possibility of tapping into the voice of the customer! And when we review their questions and start to see Read more

Foster Positive Feelings - 1/4/22


I bet a lot of you all are like me - when you’re asked to share your feelings, it’s not always something that feels comfortable.  It obviously depends on the situation and who’s asking you to share your feelings.  So, many of us might hesitate in sharing our feelings. However, Read more

How to Make the Situation Right - 12/28/21


The manager in the field office felt that - when problems arose with customers - the company didn’t do an especially good job of responding effectively.  He felt like this was hurting customer renewals of annual service agreements.  The company developed many customer service and retention initiatives with little Read more

2021 Holiday Poem - 12/21/21


Breathe and rest and relax and rejuvenate. Close the eyes, and fill the lungs. Take a break, and be with friends. This is a time to begin. Renaissance is called a rebirth. Birth can bring new life. Life gives opportunity for living. Living gives opportunity for joy. We have so many outside factors, So many things that tug Read more

“I’m Sorry” Doesn’t Mean “I’m Guilty” - 12/14/21


Individuals and organizations mess up; that’s part of life… They told me that they were going to be at my home at a certain time; they were REALLY late.  The customer service representative said they would get a message to a co-worker, and the co-worker would call me back; I Read more

Apply Selfless Service - 12/7/21


Andrea had worked in human resources for years, and the company decided that it wanted to hire employees who were more customer service-oriented, regardless of the position.  After making that decision, they added some creative questions to the interview process. One of the most interesting questions that Andrea had to Read more

From Harvard’s Calculator to Your Ears…and Eyes

Posted on in Business Advice Please leave a comment

The Harvard Business School promotes its version of the “Customer Lifetime Value Calculator.” This is a method of determining the true potential financial impact of your customer to your business.

There are 5 main pieces to the impact-calculating puzzle:

· Base profit – Transactional profit

· Profit from increased purchases – Profit from multiple transactions

· Profit from price premium – Profit from willingness to pay more per transaction

· Profit from reduced operating costs – Profit from less expenditures to retain than acquire the customer

· Profit from referrals – Profit from less expenditures to get customers via referrals than marketing/advertising to acquire them

So if this is the financial “Why” of customer retention, what is the “How?” The “How” comes from 3 things:

· First, you have to have what we call a Client Relationship Development (CRD) strategy to continually “touch” and develop relationships with customers over time – even when they’re not spending a dime with you.

· Second, you need to have a Client Experience Management (CEM) strategy – where you build a service and sales experience that hits all the key hot buttons.

· Third, you need a Service Culture that creates the people, processes, attitudes, structures, communications, and general alignment of everything the organization is about…toward the customer.

Calculate your customer’s potential lifetime value, and then create the “How” strategies to tap into those dollars.

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/