Author: Bill Wilson

In this six-part series, we're going to explore how technology can and should be used to enhance your ability to provide high levels of quality customer service. We'll look at two areas: traditional technologies such as the telephone, voice mail and fax, then emerging technologies such as email and internet web sites. This article examines the telephone.

A 1992 IBM study asked 215 insurance company executives what were the most significant business challenges they faced. Ranked by frequency of response were: (1) customer service, (2) productivity (responsiveness), (3) use of technology, and (4) cost containment.

The telephone has been around for almost 125 years, but it seems that it is often used in a less "customer friendly" way today than it was at the turn of the century. Recently, I called an agency in Tennessee and asked for, let's say, "Bob." The immediate response I got from the person who answered the call was a terse, "Who is this?" She asked it as if someone had just called and hung up…I wonder why?

Think, if used properly, how much more cost-effective the telephone is than the face-to-face delivery of customer service that was required in the last century. A face-to-face sales call typically costs $400 or more. A telephone call costs no more than $5 to $10. Here are some caveats about the telephone…you may have heard some of them before, but they bear repeating....

General telephone caveats

• Always try to answer the phone within 3 rings. If that's not possible, at least be sure to say something like, "Acme Insurance Agency. I'm so sorry to keep you waiting. This is Rita speaking, how may I direct your call?"

• The next caveat is extremely important…ALWAYS return calls promptly! According to a consumer survey conducted by the California Department of Insurance, the #1 complaint about insurance agents was not returning phone calls or not returning them promptly. Failure to promptly return, or at least acknowledge, customer inquiries goes far beyond indifference…it will lead to lost accounts and that customer telling 10-20 others about the poor service they received. It's hard to complain about insureds and underwriters that don't return calls when we're guilty of the same crime.

• Here's another tip that really works…smile…literally. The customer creates a mental image of your attitude and competency by your demeanor over the phone. A smile really does affect your voice inflection and your attitude, which can be picked up by the caller. Likewise, if you're not a happy camper, the customer will pick up on that as well. Remember the adage: "Smile and the world smiles with you, frown and you frown alone."

• Next, keep the right frame of mind when answering the phone. A customer's call, even one voicing a complaint, is not an annoyance, but a plea for help. Look at the phone call as an opportunity to solve a problem and solidify a relationship, not as a nuisance. The typical customer service representative spends about 40% of his or her time on the phone…think of all of those opportunities to provide great customer service, elicit customer loyalty, round accounts, and generate referrals! Not only that, but think of all the customers who never call…those who never give you the opportunity to "show your stuff." Making an unhappy customer happy will do much more for your retention ratio than keeping a complacent customer complacent. Complacent customers often don't stick around, but studies show that customers who have had a problem resolved to their satisfaction are much more forgiving and loyal...and they tend to tell others about how you helped them.

• Another customer service caveat is to never say, "I don't know." Think about it…even if you don't know, your response is of no help to the customer and it doesn't solve their problem. Chances are, there probably is a solution to their problem but, even if there's not, let them know that you will make an effort to help them or find an alternative solution to the problem.

• Likewise, never say, "We can't do that." Always try to find and suggest an alternative solution. Most customers are not completely unreasonable and most appreciate your honest and sincere efforts to help them or to at least try to "make it right." If you really can't do something, explain in an empathetic way exactly why and what's the next best thing you can do.

• Take advantage of on-hold messages. Promote customer service by providing practical tips whenever it is absolutely necessary to place someone on hold. One runs seasonal on-hold messages about tornadoes and floods and what to do when a loss occurs…and they also take the opportunity to mention things like flood insurance, proper insurance to value, and personal umbrella policies. Take the opportunity for an informative "soft sell" when it is necessary to place a customer on hold. Speaking of placing calls on hold, here are some "on-hold" caveats….

Placing calls on hold and/or transferring calls…

• Before you place someone on hold, be sure to ask their permission and to explain why it's necessary to put them on hold. Don't say, "Just a minute" or "Hang on"…tell them how long they can expect to wait (which should be no more than 1 minute). When you return (right on time), thank them for waiting. If the wait will be longer than 2-3 minutes, explain and ask if you can call them back or fax the information they need. As we'll see later, having an informative web site can save you a lot of time in responding to frequently asked questions when customers just want information and not chit chat.

• If you cannot help the caller, but someone else can, ask for their permission to transfer them to someone who can help and explain why. Tell them the person's name and extension number in case they're disconnected. Be sure that they understand that the reason you are transferring them is because the other person is better able to help them, not that you are trying to get rid of them.

• Be sure to transfer a caller only if you are certain you can't help the person and the other party can and will. In the Ritz-Carlton Hotel's "Basics" of customer service, Basic Rule #8 is "Any employee who receives a customer complaint, 'owns' the complaint." Never transfer a call that you can answer, or for which you can find an answer and respond directly to the customer.

• Similarly, the Ritz-Carlton Basic Rule #16 says, "Use proper telephone etiquette. Answer within three rings and with a 'smile.' When necessary, ask the caller, 'May I place you on hold.' Do not screen calls. Eliminate all transfers when possible."

• Also, if you transfer a call, get the caller's name and any other pertinent information by saying something like, "May I tell them who's calling," then be sure to advise the person to whom the call is being transferred so that they can refer to the customer by name. Remember, a customer-everybody-loves to hear their name, so use it often. Be sure to stay on the line and make sure the call goes through.

• A final note on placing customers on hold…if you are piping in music, remember two things:
  
  1.  One, make sure the music is appropriate…Harry Connick Jr's fine, but not all of your callers will share your interest in Metallica, Slayer or Pantera.
  
  2.  Two, obey the copyright laws. If you're piping in an FM radio station and not paying royalties to ASCAP and BMI, you're probably providing background music illegally.

Some tips on answering the phone for others…

• If you answer the phone for someone else, give your name and explain why you're answering for them. If appropriate, tell the caller where the other person is…saying they're "away from their desk" or "on the phone with another customer" are appropriate responses…telling the caller that "Bob's in the can and God only knows if and when he'll make it back" is generally considered not to be good business etiquette.

• Don't promise callbacks unless you have the authority to commit someone else to the task, and you know for a fact that they can and will call back. Usually it's better to advise the caller that you will deliver the message promptly and leave it at that.

• Whenever possible, always offer to help if the person they called is away, or suggest another alternative if you can't help and time is of the essence.

• Finally, be sure to take a complete message and follow up to make sure it was received and acted upon…spell names, confirm numbers, and record the date and time, specific message, action required, importance, and your name.

A quick note on cellular phones…

Studies have consistently shown that cellular phones more than pay for themselves when used properly by outside sales personnel, but be wary of the E&O exposure they create when producers fail to adequately document telephone conversations with clients or fail to follow up on customer requests.

New Technology

I read an article recently where Chuck Killian, president of Kettner & Killian Insurance Agency in Elgin, Illinois indicated that he plans to purchase a phone system based on the Windows NT standard. The system would integrate caller ID with a call management system so that, when a call is routed, the customer screen will be automatically pulled up by the phone number and displayed before the CSR.

That reminds me of one of the first examples I ever saw of the effective use of technology to provide customer service. About 15 years ago, my wife and I were in an attorney's office to close on our first house. He had told us that he was expecting a phone call from someone he'd been trying to reach for days and apologized if he had to take the call while we were there. Halfway through our meeting, his secretary paged him that Mr. SoAndSo was on the line. Rather than immediately pick up the phone, he turned around to the PC on his credenza and brought up his client's record in an early version of contact software. His customer's file included various tidbits of personal information…wife, kids, birthdays, etc. During the course of his conversation with the client, he would casually interject things like, "Well, I don't guess we could get together on the 15th since that's Little Billy's birthday isn't it?" Do you think his customer was impressed? Absolutely! Do you keep similar personalized information about customers in your agency management system?