Man Overboard!

HOW DOES A TELECOM KNOW if a customer is about to leave for the competition? Measure-X, a Phoenix-based company that specializes in helping telephone companies improve their customer service and sales, has identified five early warning signs that indicate a customer is about to jump ship.

The most obvious sign of an unhappy customer is a customer complaint, says David Saxby, president of Measure-X. The initial problem is only the beginning, Saxby notes. If your customer is unhappy with the way the problem is resolved, then a whole new layer is added to the interaction.

All complaints, no matter how serious or seemingly insignificant, should be tracked from the first call to the resolution and the end result should be that the customer emerges from the process happier than when he or she entered it, Saxby says. Keeping a log of complaints allows you to watch for patterns or reoccurring problems, Saxby explains. A complaint log may unearth product defects, misinformation during the sales process, poor communication, etc. Most problems can be fixed quite easily to prevent customer dissatisfaction.

When a customer complains, returns a product or cancels service, at least theyre in touch with your telecom and you have the opportunity to correct the situation, Saxby says. No contact at all can be a warning sign. If a customer fails to respond to a customer survey or return your calls, your telecom has cause to worry about customer retention.

A lack of response can take many forms, Saxby notes. For instance, if a customer is taking longer to pay bills, you should treat the situation as more than a receivables issue. There may be problems with your products or services that caused a customer to put you at the bottom of their pay list.

A serious decline in sales can be an indication of one or more problems, Saxby says. These can range from trouble with the product itself, internal process issues, poor internal communication, untrained or poorly trained employees and lousy customer service.

Saxby suggests asking customers such openended questions as What can we do differently to make it easier to do business with us? and What would you like to see us do more often?

When a customer calls repeatedly, it may indicate there is weak follow-through on service requests, Saxby notes. But if a customer bothers to call back, thats an indication that the relationship can still be salvaged, he adds.

The more you stay in touch with your customers, the more you will be aware of their feelings about your telecoms products and services, Saxby says. Each time you speak with a customer, you have a chance to strengthen the relationship or win back their loyalty.