The Hindu Business Line : Customer response @ speed of light

Jet Airways has a good mechanism in place to respond to queries. Its Web site also is a good example of technology being used to reach out to customers.

Ramesh Venkateswaran

We live in a technology-driven nano world. The Internet, mobile communication andhigh-speed transportation have all made the world a very small place to live in. The world is also going nano in products – nanotechnology has changed the way things are done in almost all spheres from consumer electronics and durables to medicine. Another area where technology has made nano possible and, in fact, expected, is in the speed of service and response to customers.

Technology has done much to change the way we live and what we may expect from others. Apart from the various positive and negative effects technology has had on our lives, one significant impact is in the world of customer interaction and service quality. This in turn puts a great demand on service providers and also offers many opportunities for competitive and strategic advantage.

SPEED – THE COMPETITIVE WEAPON

Companies are constantly looking for ways to differentiate their products and services. One definite area of competitive advantage is speed. This cuts across all areas of operations and needs to be seriously looked at from a strategic perspective. Honda, Toyota and HP changed the benchmark for product development cycles by reducing time to develop by over 50 per cent. Dell reduced order execution times drastically while simultaneously allowing customers to configure their own computers. Fedex introduced speed into delivery through their “Absolutely, Positively overnight” guarantee. These are but a few examples of companies that changed the way business was done and also what customers could expect from sellers in terms of speed of response.

Speed is a competitive tool. While some companies have used it effectively and reached leadership positions, I am not sure most companies realise the power of speed as a differentiator. With increasing competition and use of technology, customer expectations are increasing and customers do not have the patience to wait. If you cannot respond, they just move on – to some other company.

Companies invest heavily in technology as part of their CRM strategy. When it comes to service and customer satisfaction it is the sensible use of technology that instills a sense of confidence in customers and builds loyalty. One aspect of operations that companies need to pay attention to – and often do not – is that of response to queries, failures and post-sales interactions. For example, I find that real estate companies and loan agencies are very good when it comes to making contact with you till you sign on the dotted line. God forbid you ever have a problem or query after that – try getting through to your sales agent. Impossible!

Let me share two examples of great and ugly experiences in the same industry – airlines.

THE GREAT

Like many people in today’s world, I am not a very brand-loyal customer because I believe most products and services are almost the same. Yet, when it comes to air travel I am a great fan of Jet Airways. (Disclaimer: I neither own any shares nor have any professional connection with Jet. I am just a satisfied customer). I got into the Jet web many years ago when they reached out to me in a fascinating manner – it was an excellent example of using technology to reach out to customers. But that is another story. The net result of an incident about ten years ago is that since then I have only travelled Jet Airways unless schedules are not convenient. I am a pretty demanding customer. Yet, I have never found them less than excellent in any part of their operations.

Over the years I have found that Jet has a good mechanism in place to respond to queries – generally within two hours if not earlier. Their responses are personalised and have always resolved the issues. They beat this record recently and this is something I have not seen anywhere else.

Some time ago my son Rahul complained to Jet Airways for a debit on a flight reschedule he had done. Jet replied that it was part of their cancellation/rescheduling policy. Rahul replied saying that he had rescheduled the flight within a few minutes of the original booking and that a customer service rep had agreed not to levy the rescheduling charge. Within minutes Jet replied that they had reversed the charge and that he would receive the credit for the amount. Rahul replied with a thanks for which he again got a response from Jet. The sequence of mails is as follows:

Response Time

Rahul mail complaining 17 April 11.57 a.m.

Jet response 17 April 2.32 p.m. 2 hrs 35 mts

Rahul response 17 April 4:23p.m.

Jet response - reversing action 17 April 4:31p.m. 8 mts

Rahul reply 17 April 4.44 p.m.

Jet response 17 April 4.46 p.m. 2 mts

Total response and resolution time could be seen as 8 minutes or 2 hours 45 minutes. The actual time is not really as important as the speed of response for each point of contact. This is truly incredible. I do not think any company in the world would have responded with this speed. I am sure there is no doubt as to what this incident would have done to the loyalty factor for Rahul.

THE UGLY

On the flip side, I was once downgraded by one class on a sector of an international flight by an airline of international standing and repute. I am not sure what would be a reasonable expectation of a full fare paying customer in such a situation.

What I did expect at a minimum was a refund of the fare difference due to the downgrade without my having to ask for it. What actually happened, to cut a long story short, was that it took me over three months of follow-up and a letter to the country head before I could get what was rightfully mine.

To make matters worse, the airline showed how disconnected they were from the technology they used by asking me for a copy of my ticket jacket and boarding card as proof that I had travelled. I told them that I had an electronic ticket and hence could not produce a ticket jacket. I also said that my loyalty programme account showed the ticket details and confirmed my travel through the credit to my account. I could not believe it when the airline responded that their audit requirements demanded that I produce the ticket jacket! Who cared about the customer? The country head had to intervene. This incident was as unbelievable as the earlier incident – though with very different results. I have not travelled by that airline again.

BE FAST – OR BE DEAD

Customer expectations are increasing by the day largely because of what companies are able to provide. Customers are looking for quick answers, solutions and remedies to their problems. The challenge for companies today is not just how they do things right but what they do when things go wrong. Doing it right is a minimum and this is what customers expect.

But things will go wrong and there are likely to be failures. Using technology without a human perspective is counterproductive. Intelligent and empathetic use of technology and processes must help companies respond to customers fast to ensure loyalty. The name of the game is speed. The choice for companies is simple – be fast or else be dead!

(The writer is Director, SDM Institute for Management Development, Mysore.)

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Customer response @ speed of light