From time to time, I like to comment on the current state of customer service, because this is still one of the key areas where companies can differentiate themselves. So, based on recent experiences with a bank, an insurer, a telco and an e-commerce site, I’m sharing my thoughts on the Last Mile – where even great products and great companies can fall down due to their inability to truly understand the customer experience they create.
1. The Bank
After waiting over 30 minutes in a call-centre queue, I eventually spoke to someone who said she could help me with a query regarding the disparity in the amount and rate of interest earned on one of my savings accounts. But first, I was given a choice: either accept an instant $50 “goodwill” payment now, or wait for the outcome of her investigation. Because the amount I was querying was several times that offer, I requested she look into the matter further.
Leaving aside the fact that she failed to get back to me within her stated timeframe (I only managed to re-engage the bank when I queried the lack of response via their social media account…), it transpires that she gave me incorrect product information. This underscores one of my main complaints about customer service – inadequate product and process training. Her supervisor who picked up the query then offered me a $10 “goodwill” payment for my trouble (overlooking I had already been offered $50!).
It was only when I insisted that the amount I was potentially out-of-pocket was closer to $300, and following a protracted and somewhat terse negotiation did the supervisor choose to exercise her (undefined) discretion and settle for an amount in between $50 and $300. While the outcome was closer to what I had expected, the customer service process and experience were far from satisfactory.
2. The Insurer
My home and contents policy recently came up for renewal. I noticed that, even with a customer loyalty discount, the premium increase was far higher than current CPI. It seemed to me that a previous “special discount” I had been offered when I last updated my policy at a bricks and mortar branch, rather than by phone or online, was now being clawed back (and then some) with the latest premium increase.
So, I shopped around online and found a better deal. When I rang the original insurer to advise them I was cancelling and taking my business elsewhere, they said: “Is there anything we can do to keep your business?”. My response was, “Too late.”
I accept that premiums may have to increase. But rather than simply sending out a renewal notice asking for more money, I think the better strategy would be to provide an explanation for the increase, and demonstrate the additional value I would be getting for renewing my policy. I resent being taken for granted, because the insurer clearly assumed I would simply pay the increase on demand, and only attempted to offer a better deal when I rang up to cancel.
3. The Telco
Late last year, I switched telcos, because the service was increasingly reliable, and I had experienced poor customer service from the start of my contract. In the process of transferring my mobile, fixed line and internet accounts, I notified the telco that I was dissatisfied with their service, and was taking my business elsewhere. I also initiated the return of my telco-supplied modem, to avoid incurring any additional fees or expenses.
However, the telco continued charging me for certain services, long after I had discontinued using them, and 2-3 months after they had been ported over to my new service provider.* I requested the refund of the overpayments. The telco refused, because they claimed they had not actually been formally notified that I wished to cancel the services. So I lodged a complaint via the TIO, but the telco still denied any liability, and refused to refund my money.
Eventually, a TIO Investigation Officer was assigned to my case, and he agreed that on any reasonable reading of my complaint, the telco should have concluded that I was cancelling the service. The telco continued to resist my request for a refund:
E-mail received May 31: “[We have] reviewed the complaint and have decided that we will not be changing our position on the matter.”
I believe that the Case Officer then suggested that the telco listen again to the calls I had made, and place them in the context of the other contemporaneous events and the full history of my contract. He also advised the telco that he was prepared to initiate a full and formal investigation of the complaint.
Only then (and in a remarkably speedy U-turn, worthy of a politician) did the telco respond:
E-mail received June 7: “Thank you for your time and patience throughout this case, it is really appreciated (sic). We apologise for the poor level of service you’ve received that led you to escalate to this point. This is not the kind of service we want our customers to experience and it’s very unfortunate that you have to go through this, especially after you cancelled as a result of the poor service.
We will be crediting the account with $XX for the period from the XXth December 2015 to the XXth February 2016 when the service was active after it should have been terminated.”
I’m clearly grateful to the TIO for their assistance, but frankly, it shouldn’t have to get to that point. For an organisation that prides itself on superior customer service, the telco in question clearly does not understand customer experience.
There are several reasons why I prefer to order online, rather than buy from local shops: convenience, choice, availability, service and often price as well. Speed of delivery is usually not a factor, especially when ordering from overseas (although in many cases, ordering from overseas can be quicker than buying from a local online store).
However, I’ve recently experienced some delays in overseas deliveries, and upon investigating the matter, discovered that, quite apart from a lack of knowledge on the part of some customer service reps (that old chestnut), the multiple links in the supply chain can result in mis-communication and mis-alignment of their respective operating systems.
For example, if the online retailer does not actually fulfill the order, or if they or their nominated carrier outsources customs clearance and/or the final delivery, there may be as many as 6 or 7 hand-off stages in the process. Unless all the back-end platforms talk to each other (and in the same language), the risk of stuff falling between the cracks is very high. (The notion of same-day delivery by drone is probably some way off…)
What is particularly frustrating is when one part of the vendor’s website has the (overdue) ETA as one date, but another part of the same website shows a much later ETA – even within a single platform! Perhaps if retailers got their upstream systems in order, the Last Mile would be more likely to take care of itself?
*Footnote: My original provider is merely a re-seller, and therefore is subject to wholesale access provisions. According to some information I received from my new provider, it is illegal for a telco to charge for services over which they no longer have any control or access.
Next week: Field report from Melbourne #Startup Week