In the huge universe of wireless communications comes a world of confusion. It’s common knowledge that customers have issues with their phones, service, new programs and devices, you name it. However, the bleak quality of customer service also irritates wireless subscribers. A recent J.D. Powers and Associates wireless customer-care performance study showed that of the 47% of customers who contact customer service, 73% call in and are usually stuck listening to music for an average of 4 minutes; 23% huff it to the store, waiting even longer; and a tiny 4% of problem-driven customers turn to the Web. And numerous reports, studies and surveys find when it comes to great customer service; the wireless industry usually sits at the bottom of that list.
K.I.S.S.
Carriers, however, are aware of their worsening customer service reputation and realize something needs to be done. Charlie Falco, VP of Customer Service Operations at Verizon Wireless, thinks the main challenge is making things simple.
“We’ve got to become easier to do business with,” Falco said.
One hot solution is pushing the customer to the Web and encouraging self-service to handle problems. Online chat is becoming more popular throughout the larger carriers. Verizon Wireless and Sprint Nextel Corp. have both adopted this tool, finding it beneficial.
Sprint Nextel spokeswoman Ronie Singleton said the carrier has become much more involved and enthused online. A few months ago, Sprint Nextel launched an online blog where customers can voice their problems and get real-time answers.
“It’s a really, really popular request.” Singleton said.
Online options
Sprint Nextel and Verizon Wireless are trying to make billing and account information easier to access online; no more digging through the monthly statements. Sprint Nextel has thrown out its “Plan Advisor” feature and is developing an online tool to give customers the ability to quickly log on to the Web site, look at minutes used, frequent data service and get a historical perspective to better manage accounts. Likewise, Verizon Wireless is honing in on its Web site, and recently updated the site’s “My Account” tab to “My Verizon”, unifying billing, policies, and practices in hopes of creating a standard, easy way to access information.
“We’ve implemented the site with an easier look and feel.” Falco said. “Online is a big push for us.”
Carriers implementing the do-it-yourself approach are on the right track. Ryan Burke, director of telecom and media for Compete Inc., an online usage and traffic monitor, said an average of 11% of wireless subscribers access self-care each month at the major wireless carriers.
“Eleven percent is a lower number compared to historical levels,” Burke said, “since people now pay through their bank or have overage protection, they have less incentive to manage online.”
By comparison Bank of America is seen as a best-in-class experience, Burke said, and about 30% of its customers manage their accounts online.
Sprint Nextel used to be in the 20% range back in the days of “Claire”, its automated voice care system so unpopular and unfriendly that many people chose to use the Web site.
Alternative methods
Another option for carriers in the galaxy of self service is enlisting the help of outside sources. Snapin Software Inc. is a third-party application provider offering carriers solutions to try to keep customers out of retail stores and even off the computer. Hope Schoenbacher, Snapin’s VP of customer delivery, said the company’s embedded software allows carriers to provide in-depth solutions to problems as they arrive in real time through the phone.
“That kind of emotional reaction doesn’t happen when you’re talking about online solutions,” Schoenbacher said.
Customers can go to the help option on the phone or if something fishy is happening; the Snapin software alerts the customer, Schoenbacher said.
“For example,” Schoenbacher said, “if you’re taking a photo and when trying to send that photo, it doesn’t work; we’ll see that, come to life and troubleshoot until we fix the problem.”
Schoenbacher also said Snapin software can take care of 75% of problems that occur. She said when using the software, 50% of people who ran into issues solved the problem without having to make a phone call. And as phones become more complex, Snapin’s software updates remain invisible to the customer. Snapin is working with T-Mobile USA Inc. and in talks with others.
Segmenting the base
At the end of the day, customer service is expensive, especially over the phone. Lior Arussy, president of CRM-consultant firm Strativity Inc., said the best option for carriers could be to simply clean house.
“We are big fans of firing customers that are not profitable. We see it as a win-win: The carrier wins by getting rid of an unprofitable customer, and that customer eventually goes to a competitor and drags on their profitability.”
Arussy also spoke of the integral importance of segmenting customers.
“Today, carriers try to do a standard model for customers instead of a customizable approach. It’s important for carriers to not do a one-size-fits-all approach to customer care. Certain customers are more valuable and deserve to be treated that way.”
Carriers agree segmentation is vital for customer service, though they aren’t quite jumping to dumping customers just yet though. Falco said Verizon Wireless’ segmentation goal is to make sure employees can match appropriate services to the appropriate customer, based on history.
“We want to be locked in to their lifestyle,” Falco said.
Wireless companies will continue to face this customer service meteor for the remainder of their existence. Online, self-service, it’s all great, but there will always be phone calls and people will continue to seek that voice for reassurance and guidance. So, the carriers try to make sure to be prepared for anything. All Sprint Nextel, customer- care reps are fully trained and have any information they’ll need right in front of them, Stingleton said. Verizon Wireless makes sure new employees are extensively trained with an eight-week immersion upon hire and undergo at least eight hours of new training each month.
