From the category archives:

Technology

Due to the nature of my job, I find that I am constantly thinking about how to improve customer satisfaction, but as a consumer, it’s also something that I am acutely aware of when it’s done incredibly well (see my post about J.Crew).

Add technology to the mix, and you can bring satisfaction levels to new heights with process innovation and customer facing technological improvements.

I also believe that an acute and strict focus on customer service is also increasingly important for all business transactions — even if your firm is not in the retail or hospitality industries. Why? Because there is always a competitor eager to snap up your customers if you don’t meet their expectations perfectly. This is where technology can greatly add value, and create competitive advantage. Just ask Apple and USAA.

Technology Drivers in Satisfaction

This year Apple has ranked third in Business Week’s customer service survey. Apple’s service technology including the genius bar, and “roving in-store checkout clerks” were primary reasons listed for their success.

The company’s sleek devices and user-friendly software aren’t its only innovations. Appointments at Apple’s (AAPL) “Genius Bars” and its roving in-store checkout clerks are just two ways the company has pioneered new approaches to customer service. The iPhone maker is likely got a bump this year as more companies created customer-friendly apps for their own services, helping to burnish Apple’s customer service brand. // via Customer Service Champs 2010: No. 3 Apple - BusinessWeek

The article continues that USAA (an online-based banking/insurance institution for the military) has taken the number two spot, mainly because of the use of technology within it’s “brick-and-mortar-less” operations and their iPhone app. Just think, when you are in Iraq, how are you going to get to your nearest branch? What about mailing in a check? That’s where technology comes into play.

When Staff Sergeant Corey Mason wants to deposit a check, he doesn’t use an ATM, a teller at a branch, or even a stamped envelope and deposit slip. Rather, the 37-year-old GPS systems specialist takes a picture of the check with his iPhone, uses an app to send it to his bank, and within minutes the money shows up in his account. // via USAA’s Battle Plan - BusinessWeek.

In reading the business week article about USAA, it’s remarkable how their revolutionary technology has increased customer satisfaction, and created life long relationships and brand loyalty.

It’s not just the people piece any more, it’s the technology behind their customer interactions. What I find even more surprising, is that they are able to quantify their return-on-investment in technology with top-notch customer service ratings and rankings in these types of surveys. So very difficult to make a business case for these technologies, but with the right filter, it can mean the difference between a world-class and mediocre firm.

Take Note

It is remarkable how technology has influenced customer service in today’s marketplace and world-class brands like Apple and USAA are at the forefront of this phenomenon. This is certainly not an easy feat these days, but is something that other service brands should take note of and strive for in order to survive the onslaught of Consumer 2.0.

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Full Disclosure: I am an employee of Apple. I am not commenting on the company other than to report a positive Business week article. Any opinion above is my own, and that not of my employer.


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This week, I was fortunate (and unfortunate) enough to have been by my 88 year old grandfather’s side as he passed away from what Hospice called “adult failure to thrive.”

In essence, he was ready to let go, and did so peacefully and at home with his remaining two children, and two of his grandchildren. He was a kind man, and a devoted United States Marine who was given an Honor Guard at his funeral for his service during World War II. Quite a fitting send off for Sgt. George J. Coppola, Sr. You will be missed.

The hours and days leading up to his peaceful departure were anything but that. I’ll spare the details, but with the blizzard and some emergency work situations that needed my attention, there was not much time left for me to think about packing to go home to see my grandfather.

When I realized that my grandfather was deteriorating at an alarming speed, and the end was near, I rushed home to be with him and my family. In the chaos that led up to my trip, I forgot most of the clothing I would need to wear to the services, viewing, funeral mass and repast that we would be having–the Italian heritage bleeding through.

(I know that in the grand scheme of things, this is quite trivial. And the customer service I received after trying to find something suitable to wear to the funeral to honor my grandfather, was anything but trivial.)

Around 11p two days before I would need my suit, I noticed it was not with me. How could I forget that I didn’t have a suit for the funeral? I was agitated at myself for such a simple mistake. As a Marine, he always made sure the grandkids were dressed, and his funeral would be no exception.

I had to make a quick decision, and I remembered reading an article in the New York Times about CEO Mickey Drexler and his retake on American suiting at J.Crew, and how well received it had been. I felt that my best bet, for a properly fitted, last minute suit, would be through their brand.

No Solution.

I called the 800 number, already agitated, and explained my situation to the call center agent. I thought that I was speaking with one of their “personal shoppers” which I receive weekly postal-mail about, and special “front-of-the-line” phone numbers to call. (Marketing!)

I said that I had an emergency and that I am without a suit but I need one by tomorrow afternoon. I explained I could not get it online, but that if the agent could let me know what stores carry men’s suiting, I would be able to see if they had my size, and problem solved.

The young lady told me that the online store doesn’t have that type information, and I would have to call each individual store to see if they carry men’s suiting, or I would need a particular part number and she could find out if it was a retail part.

What?

I was thoroughly confused. J.Crew has been over advertising their “white glove” personal shopping service, and for me to get the response I did, I was dumbfounded.

Conveniently, J.Crew lists a 24-7 email address that I sent a brief but specific query to. I needed my suit for an emergency situation, and I needed it the next day. I just wanted help in finding a store that would meet my needs.

J.Crew Customer Care

Within 10 minutes, at 11:40 that evening, a representative from J.Crew called my cell. I realized that I didn’t provide my cell in my email, which I’ll speak to later. The agent offered her apologies for the mix up, explained the process, asked for my sizes, and said she would be back to me within 30 minutes or so. Either by email or cell.

At 12:15a, I received another phone call, and they had located a grey suit for me, and they were placing it on hold. They also had just sent me pictures and the details to my email address with this information. The following morning, just after 9a, another agent called and said he had already talked to the personal shopper at the store, and everything will be ready for me to pick up when I get there.

My WOW Moment

I was blown away by a few things about this experience. First their customer service was exceptional. I wasn’t expecting a return phone call, and yet, had one within minutes. I didn’t even give them my phone number, so they used their relationship manager to uncover my past “contacts” and called me at the most likely number I would be reachable at.

I then wasn’t expecting to have them find a suit for me, and yet, they did, but what was most impressive, was that the technical ability for them to do such a thing would not have been possible without a proper CRM system in place, and the training of their more veteran staffers to take care of unique and unfamiliar situations.

For them to take my size from me at midnight, find a store nearby that they were certain would have it in stock, and then place it on hold without anyone in the store was remarkable.

This is why I love working in technology. Take a situation like the one I was in, and from a systems stand point, J.Crew did an amazing job at repairing a relationship that would have caused me to bring my business elsewhere. It worked out so well for me, that I’m spending time writing about this, and sharing my fondness for the relationship management systems they have in place and training they provide for their people.

Job well done J.Crew

Glad systems integration is truly having an impact on your customer’s lives.

Update (03/04/10 9p)

I’ve had some comments from friends relating to the fact that what transpired was “people” related, as opposed to technologically related, but I will gladly elaborate on why I feel this is a win for technology, without downplaying the people piece.

Yes, it was a phone call that initiated this exchange, and a return phone call that made me think twice about the customer service that I received from J.Crew. But, it was a CRM package that allowed the rep to contact me in a matter of minutes when my email came through the generic “24-7@jcrew.com.” It was a CRM package that gave the rep my cell phone number when my email failed to list one. It was an ERP package that allowed the rep to track down inventories at closed locations, and place them on hold for me, and it was a CRM system that triggered a follow-up phone call the next morning.

The processes that are in place and the technologies that are integrated into said processes, are what enabled the “people piece” to work flawlessly. The training systems, the exceptional customer service levels, and the quest for client satisfaction are all filters that firms use to transform mediocre experiences into those of the exceptional variety. But, to have these experiences on a global level with the sheer volume of transactions that take place, it absolutely requires incredibly integrated systems just to handle the simple workload, let alone, keep track of the progress of each customer “touch.”

So, yes, it was ultimately a personal experience between myself and many service reps at J.Crew throughout their store and their personal shopping center, but it was the technology working behind the scenes and systems integration of those technologies that made it all possible. At least, in my biased opinion.

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I’m a bit surprised that this is just beginning to be a trend… but nevertheless…

A recent survey of business leaders, conducted by the Economist Intelligence Unit and commissioned by Accenture, revealed what those IT and business leaders are discussing in their closed-door budget meetings. The results hint at one thing when it comes to IT: strategy.

via BlueLock - IT to go “strategic” in 2010.

In fact, when discussing technology and the role of IT in an organization, strategic partnerships with the other functional areas should be a primary goal, as technology can directly influence behavior in the organization and more importantly revenue streams.

For example, technical oversight via systems processes can ensure proper and legal behaviors of the staff, integration between business models can influence collaboration and timeliness, and an IS&T strategy can ensure that the functional roles and tactical behaviors of employees are focused on clear value added jobs and responsibilities.

IS&T can also affect customer behavior and employee attitudes towards customers when they have a clear view into each interaction between the firm and those respective customers through proper CRM implementation and how the customer has responded through business intelligence and analytics.

Proper implementation and strategy of information technology and systems is one of the primary strategic goals that any global Fortune 100/500  firm can implement in order to ensure sustained competitive advantage, even if they are focused in other areas for profit.

One reason why this may not have been a trend until recently, is I that it can be incredibly difficult to identify the causal relationship of IT to behavior in an organization and most if not all will be anecdotal. That can cause problems for many ‘quants’ out there.

I would guess — while I believe these systems can and do impact tangible returns like an increase in revenue and a decrease in expenses — there is really no way that you can eliminate (at least in a real business climate) the variables that affect behavior.  But with enough anecdotal evidence, you can piece together a proper idea of the effects of information technology on said business climate.

If we look at a case in which an industry that is primarily driven by other means, such as the Banking sector, one can’t imagine an environment where technology wasn’t a strategic asset. Banks certainly can’t focus on their trading and asset management without a proper IT strategy, and it needs to go to the heart of the organization so that it influences individual behaviors and roles. Otherwise, focusing on any other opportunity or strength is in vain, and the firm is destined to fail regardless. This can be related to any number of industries including the energy sector.

And when they fail at IS&T it can be disastrous for the firm, and should be noted when determining any future strategy.

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Job Drought in U.S. May Be Near End as Temporary Help, Working Hours Surge  — The worst U.S. employment slump in the post-World War II era may be about to end as companies hasten to hire temporary workers and boost hours, according to economists such as John Ryding and Zach Pandl. [Bloomberg]

G.E. Makes It Official: NBC Will Go to Comcast — After nearly nine months of negotiations, Comcast, the nation’s largest cable operator, announced an agreement on Thursday to acquire NBC Universal from the General Electric Company. [NY Times]

Geithner Sees `Progress’ in Job Market, Unemployment Below 10% in a Year  — Treasury Secretary Timothy Geithner predicted the U.S. unemployment rate probably will be lower than 10 percent in a year and said the economic recovery is moving closer to a period of job creation instead of losses. [Bloomberg]

World’s tallest building, Burj Dubai Tower, opens as a golden era closes — Dubai Tower opens next month. But will this crowning jewel also be the city’s high watermark? [CS Monitor]

Dubai Loses `Sovereign Halo’ as $3.5 Billion Nakheel Debt Deadline Looms  — Sheikh Mohammed bin Rashid Al Maktoum wanted to turn Dubai into a global hub for finance and tourism, the next London or Hong Kong. To help execute his vision, the ruler relied heavily on Dubai World, the web of state-owned companies that includes everything from DP World, which operates 49 ports across the globe, to property developer Nakheel to investment arm Istithmar World. [Bloomberg]

Celgene Cancer Pill to Triple Sales on Threat to J&J — Celgene Corp. can more than triple sales for its best-selling cancer pill Revlimid on new data that may convince doctors to choose the drug as a first option over Johnson & Johnson’s intravenous medicine, Velcade. [Bloomberg]

Sony Chief Pushes Online Plan for Recovery — Sony’s chief executive, Howard Stringer, has a grand idea: an all-in-one online network that pipes Sony’s films, music, games and other content to its TVs, Walkmans and PlayStation game machines. [NY Times]

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Technology, Society, and a Smarter Planet

12 October 2009 Education

Over the past weekend, I was having lunch with a dear friend at a cafe in Hollywood, and we were joined by her non-profit business partner and another member of their US based team trying to accomplish a very awesome and noble feat, opening a school for an under served and poor town in rural Mexico.
Technology: […]

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News Roundup

5 October 2009 Advertising

I.B.M. Joins Pursuit of $1,000 Personal Genome: One of the oldest names in computing is joining the race to sequence the genome for $1,000. On Tuesday, I.B.M. plans to give technical details of its effort to reach and surpass that goal, ultimately bringing the cost to as low as $100, making a personal genome cheaper […]

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Green Business is Growing

28 July 2009 Alternative Energy

GREEN BUSINESS – It’s no secret that America is going green. Green jobs are popping up everywhere, whether it’s the technician installing solar panels on a home, the scientist researching ways to build better batteries for electric cars, or the executive looking for ways to reduce waste, eliminate unnecessary packaging, and cut costs. Job growth […]

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Google Chrome OS: Be A Part of the Cloud

11 July 2009 Cloud Computing

Cloud computing could become mainstream with Google’s annoucement this week to release the Chrome operating system for NetBook PCs.
I believe the cloud is the platform of the future, and Google is uniquely poised with their already popular office suite, Google Docs, and their other Google Apps which do just about everything owners of netbooks would be […]

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Clean Energy and the Future

6 July 2009 Alternative Energy

photo credit: Ennor (computer problems)
Thomas Friedman is an interesting man. For one, his book on globalization: The World Is Flat was mandatory reading at Lehigh in an intro course to Information Systems, and caused a great deal of debate on the topic during many a class session. But, his current op-ed in the New […]

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Weekly Round Up

3 July 2009 Alternative Energy

For Modest Earners, Relief Repaying Student Loans – Repaying a student loan could soon be a little less painful. Starting this week, anyone with a federal student loan can apply for a program, run by the Department of Education, that caps monthly payments based on income, and forgives remaining balances after 25 years. Those choosing […]

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