Multichannel Magic » Operations

Why Marketers Shouldn’t be in Charge of Doing

Debra Ellis — Thu, 20 May 2010 13:14:50 +0000

This morning Seth Godin posted “Good at talking vs. good at doing” with the implication that the marketing department needs to be in charge of the “product, the service, the interaction.” His premise is accurate. The best marketing is rendered impotent by poor customer experiences. And, with a social media megaphone available at the touch of a keyboard, individual missteps become brand nightmares.

His solution is faulty. Marketing is strategic; delivering quality service is tactical. Placing the marketing department in charge of the “doing” is a recipe for disaster. Marketing people make great marketers. They transform the mundane into interesting and exciting. The operations side of the business performs best with routine. Standardized processes and procedures provide efficient quality service. When interest and exciting are interjected, chaos takes over.

The call-to-action that generates the best results is integration and teamwork. Marketers who want to excel reach across departmental lines to form a partnership focused on delivering the ultimate customer experience. When they do, the customer wins. And, when the customer wins, the company wins.

Just 1 Thing: The Backorder Effect on Marketing

Debra Ellis — Fri, 05 Mar 2010 18:42:52 +0000

Inventory management is a risky business. Too much product on hand increases carrying costs. Too little reduces customer satisfaction. Finding the perfect balance between the two is near impossible.

The best managers know that they are in the risk management business and use every available tool to minimize their exposure. One key component is the cost of backorders. Knowing how much being out of stock costs your company helps refine the order decision.

There are both short-term and long-term costs associated with backorders. The short-term are the processing costs for multiple shipments to customers and receipts from vendors.

The long-term costs should keep you awake at night.

Being out of stock costs you customers. If you handle a backorder situation well with good communication, the first one or two times won’t have a negative effect. But, let it become a regular experience and you destroy loyalty.

Your marketing is less effective because people have become disillusioned with your company. Every promise is judged by your failure to deliver. If you don’t have a relationship with the inventory management team, you won’t have a clue that there is a service issue.

To measure the effect of backorders on your marketing, compare the order history of customers who have never had a backorder with those who had multiple out of stock experiences. Then, work with your inventory management team to minimize the problem.

Add notices to your website to let people know when items are getting low on inventory or out of stock. If the ability to reorder is questionable, remove the item from the website when inventory is depleted. You can always add it back, but you don’t want to go through the notification process and disappoint your customer.

Review the transactional emails to insure that they are communicating the right message to your customers. If an item is backordered, offer a substitute when available. If there is an extended delay, offer a gift or discount on the current order. Offering it on a future order adds insult to injury. And, always give your customer the option of canceling. Lost orders are disappointing. Lost customers are debilitating.

For more information on calculating the costs of backorders read: Are Backorders Sabotaging Your Bottom Line?

How to Make Your Holiday Dreams Come True

Debra Ellis — Wed, 23 Sep 2009 19:28:44 +0000

Summer is officially over. Holiday is just around the corner. Are you ready to make your dreams come true? Or, are you hunkering down, waiting to see what happens?

A great holiday season (translation: profitable) is yours if you take the following steps:

Energize your marketing. People are tired. They are tired of the recession, health care debates, wacky weather, and the same ol’ stuff. They want to have some fun. Money may still be tight, but they’ll send some your way if you give them a lift or a promise of a better tomorrow. Scrap the plan that put lipstick on last year’s pig and come up with a new strategy to engage your customers. Use every tool in your marketing shed to make your products and services the sunshine in someone’s day.

Get your customer service house in order. Nothing drives costs up and sales down faster than poor service. Great service starts with happy employees. Seriously. If work is a miserable place to be for your team, the sales floor is worse for your customers. Make your business the happy place. It’s contagious. Your customers will love it and reward you with more purchases.

Dot your i’s and cross your t’s. The devil’s in the details. Improve communication between departments so there are no last minute surprises. Have contingency plans for inventory shortfalls, marketing issues, and service snafus. They’re going to happen, so be ready before they do. The more you prepare, the easier the response.

Be optimistic. Success is often a state of mind. Negative forces invade and destroy companies. Use your positive attitude to lift your business to the next level.

That’s all, folks. Now go get ready for a great holiday season…

Why Buying Lunch for Your Marketing, Operations, & IT Team Leaders is the Best Money You’ll Ever Spend

Debra Ellis — Thu, 09 Jul 2009 18:23:21 +0000

Does information and ideas flow freely through your organization? Or, do your departments keep to themselves? If your marketing, operations, and IT departments aren’t working well together, it’s because your corporate culture places a higher value on departmental performance than teamwork.

Everyone knows that teams playing well together win more often. It is little surprise when a team comprised of superstars loses to a less talented squad. The stars tend to put their personal objectives ahead of everything else. Your departmental teams work the same way. Their focus is to keep their group on top. They don’t notice that some of the things they do have a negative effect in other areas.

If you try to resolve the issue with a decree, the knee-jerk reaction is resistance and fear. It increases any animosity in your organization. Since lack of information is the reason that there are challenges, try a different approach. Invite your marketing, operations, and IT team leaders to lunch.

This is a special lunch, so you have to plan it carefully.

Don’t skimp on the price. This is an investment in your company’s future.
Ordering in is better than going out if you can guarantee an uninterrupted time. If not, choose a restaurant conducive to conversation so you can chat freely.
Establish ground rules in advance. Each participant should bring two items to discuss: 1) The one thing that the other departments could do to make things easier for his/her team; 2) One thing that the other team leaders should know about his/her department.
Communicate your objectives to each participant. They are: Improved teamwork; Reduced problems; Better customer service.
Keep everything as simple and friendly as possible.

It often helps to provide an example of your expectations prior to the lunch. For example, the marketing manager’s two items might be: 1) If customer service would notify marketing when customers complain about campaigns, it would help them create better promotions. 2) Marketing campaigns are planned months in advance. Last minute changes, even good ones, are expensive and hard to implement.

Don’t expect a lot during your first lunch. Depending on your office politics (and don’t tell me that your office doesn’t have politics. If you have two people together, there is some form of politics involved.), there may be a lot of animosity and trepidation involved. Your goal is to open the dialogue so that your team leaders start interacting. Given time and the right guidance, they will start working together. (They may even learn to like each other.)

Taking your leadership team to lunch has a great side effect – they start to think differently. When the lunch is a regular part of their routine, they know that anything they do may be discussed. It changes “What’s in it for me?” to “How does this affect others?” or “Does this move us closer to our goals?”

The investment of time and money in a regular lunch date creates a paradigm shift from “me” to “team” thinking. It’s a small price to pay for a huge return.

Walking the Talk: When Delivering on the Promise Fails

Debra Ellis — Mon, 18 May 2009 18:48:44 +0000

How well does all of the talk about delivering on the promise convert into real customer experiences? It sounds wonderful in corporate meetings and contributes to great PR, but what happens when customers walk through the door?

Customer relationships are built one experience at a time. It takes many deposits in the trust fund before loyalty appears. One withdrawal due to poor service can remove years of good will. When this happens, it opens the door of opportunity to your competition.

Even raving fans can be alienated.

I used to be a raving fan of a big box electronics company. Visiting it was a hobby that often separated me from my money. And, everyone who mentioned being in the market for anything the company sold received a referral. Not any more.

The slide down the slippery slope of customer betrayal started when they lost a computer they were supposed to be repairing. They found it after two weeks, but not once was an apology offered. I know that things happen and have no interest in compensation, but a simple and sincere “we’re sorry” goes a long way towards repairing lost trust.

The relationship’s downhill slide continued when I needed a cable and visited the new store in Asheville. I asked the sales associate to direct me to the cables. He asked what I needed. I told him. He replied, “There is no such cable” and walked away without providing directions.

The first choice can become the last.

When I realized that my laptop needed additional memory, I hesitated about visiting the store that I once loved. When my online research indicated that I needed a proprietary memory chip, I decided to try their specialized support department.

It took 12 minutes to receive assistance even though I was the only customer in the store. Five associates passed me to chat with other associates. When someone finally arrived, he checked my computer and said that I needed a standard chip but they were out of stock. My “are you sure it isn’t proprietary?” question received an “I know what I’m doing” look and curt “yes.” I requested that he check inventory at the other store. They had it in stock so I asked for the SKU number and trekked across town.

When I arrived at the other store, it took me 22 minutes to receive assistance. By this time, I had resolved myself to finishing the experience as an experiment in good service gone bad. After talking with a sales associate and being referred back to their support team, it turned out that I was right. The memory was proprietary. Furthermore, the company doesn’t sell it.

I suggested to the team member that she might mention my experience in the next “how can we improve our service” meeting. She asked if I would speak with a supervisor. After saying that I would, I waited 10 minutes for him to appear. By this time, I had two hours invested without a solution and no more patience.

Service done right.

My next stop was a locally owned, three store computer sales and service center. My computer was checked, the memory ordered, and I was on my way in less than 10 minutes. The difference was amazing. During my short wait, I received three updates and an explanation for the delay. (They had to make sure that they could find the right chip.)

I have a new favorite electronics place. It doesn’t have the selection of my former one, but it has the service I need. Hopefully, my experience will inspire you to ask two questions about your company:

Are we doing anything to drive our customers away?
What can we do to attract customers leaving our competition?

The answers may be more than enlightening. They may be the start of a new business model.

Are Your Customers Unreasonable? Or, Do You Create Unreasonable Expectations?