Today’stopic centres around one of the biggest mistakes I see new business owners makewhen they start a business: Customer Service.
Let’skick this off with a question.
What doyou picture in your mind when you think of handling Customer Service in yourSubscription Box?
- Answering annoying emails
- Handling Order cancellations
- Solving shipping errors
- Refunding an order
Do youever think about how your customer service can be used as a marketing asset?
No? Well,it should.
In factyou can turn your customer service into an asset so powerful that it makes youmore money and there is nothing your competitors can do to stop it.
But only when you do it right.
I’m notgoing to try and tell you how to suck eggs when it comes to customer service.Because honestly, it’s simple:
- Treat others how you would like to be treated.
- Don’t be petty. Your customers pay you money, your pride doesn’t
- Long term beats short term.
I’ve seenway too many instances in Sub-Box groups of posts like this:
Seriously,it’s not a pissing contest – just send a new box and let go. In fact, make abig deal about it, make them feel amazing that they have even taken the time totest out the box.
At theend of the day – 100% of that circumstance (like the coupon etc) are the resultof YOU – the business owner not checking things before you sent the parcel outor making sure that you could afford to do such a promotion.
Thinkabout how you would feel if you bought something online, it didn’t getdelivered and the merchant just said “tough shit - you stuffed up theaddress its on you”.
I knowwhat I would do, immediately file a chargeback just to mess with them.
Situationslike that are a no-brainer. Just replace and move on.
My maths proves customer service saves you money
Still notconvinced? Well let’s do a little bit of maths and see if evidence compels youto my point of view.
- Box Cost of $15
- Shipping costs: $5
- Total Expenses: $20
- Cost of replacing the box: $20
Total out of pocket expense for replacing + initial send: $40
Now let'slook at if you didn't replace it and just said "tough shit" to thecustomer.
- Box Cost of $15
- Shipping costs: $5
- Total Expenses: $20
- Cost of Chargeback Fee from stripe: $30
Total costs of Box + Chargeback = $50
Youactually save money (in that example) by just replacing the damn box.
So putyou big boy/girl pants on and replace the box.
Thisdoesn’t even take into account the negative reviews and lack of goodwill thatyou avoid by performing a simple gesture to make someone’s experience better.
Now thatI have hopefully beaten the B.S out of you I’ll give you an example of howusing customer service, replacing stock and generally just enjoying the interactionswith your customers can make you more money.
The Amazon Example
JeffBezos, the founder of Amazon, recently said in an interview “Customer’s areloyal to us right up until the second somebody offers them a better service.And I love that”
Thisstatement speaks volumes about how Amazon has become the retail-crushing giantthat is taking over the world.
Amazonprioritises one this: It’s customer’s satisfaction. And as a direct result,it’s customers are loyal.
How you can use your customer service to make yoursubscription box business more money.
How to use Customer Service as a Defensive tactic:
Having astrong customer service strategy within your subscription box is one of thebest ways you can defend against competitors entering your market place.
Stayingwith the Amazon Example, if you are able to provide an amazing experience toyour customers in every facet of your business you will breed customer loyaltythat cannot be bought.
How canyou do this?
- Make it REALLY easy sign up.
- Document all your customer’s questions, comments and praises. Include these as benefits, features on your selling points.
- Make it easy to cancel if your customer wants (please NEVER make it “email email@example.com to cancel).
- Have pleasant and respectful communication at all times
- SOLVE your customer’s problems – don’t be the problem.
Thesesound like simple things, but I’m horrified by the number of small businesseswho get more caught up in their own struggles than fixing something that canmake them more money in the long term.
- The cost of replacing / refunding an incorrectly delivered box.
- Worrying those customers will tell everyone you provide refunds or share coupon codes.
- Trying to provide that YOU are right and THEY are wrong.
Just takea step back, a nice deep breath and chill.
You arein this for the long term, we want to win the war, not just the battle.
How to use Customer Service as an offensive tactic:
Nowthat you have sorted out your customer service defensive tactics. Let’s ramp itup and start using that as our FOB (Forward Operations Base) to go steal yourcompetitor’s subscribers.
I’m goingto get off my high horse on this section and just give you some clear tacticson using your Customer Service for a marketing tactic.
Attackyour enemy’s weak points
Find anddocument the negative reviews about your competitors. Look at their reviews,unboxing videos, social media comments etc.
Where arethey lacking and what are the customers saying, what language do they use todescribe the frustrations?
- Slow delivery time
- Packages looked like crap
- No value for money
- Doesn’t say where I can purchase items
Plan of attack:
Now,firstly make sure you don’t make the same mistakes. If you are, fix that stat.
Next,take all of those negative comments and make sure you cover off on them asbenefits to your Subscription Box
- We ship your first box within 24 hours!
- You get an amazing experience from the moment the parcel is in your hands
- Minimum of $50 value in every single box!
- Special member only discounts for every product in the box!
Now goand kick your competitor where it hurts
How to crush your enemies completely for BonusPoints and glory:
Start a comparison page on your website.
For example “MyBox VS Competitors Box” and focus on how you do everything they do and MORE but better, with greater value for money and more style.
You cando a straight like for like comparison chart for all of the points.
Add yourreviews to the page too for extra ammo.
Turn your reviews into weapons
One cool little trick I have found is using my reviews as a retargeting ad can work wonders.
If a customers has browsed your site in the last 7 days and not purchased you definitely want to be retargeting them with advertising.
I’vefound it really effective to help them make a decision by putting a littlebirdie in their ear – in the form of a testimonial or review.
There you have it!
Customerservice is easily you most cost effective marketing channel that you canimplement today.
How areYOU going to use this? Have some other ideas? Let me know in the comments