• Print Friendly and PDF
  • Print Friendly and PDF
Peter U. Leppik is president and CEO of Vocalabs. He founded Vocal Laboratories Inc. in 2001 to apply scientific principles of data collection and analysis to the problem of improving customer service. Leppik has led efforts to measure, compare and publish customer service quality through third party, independent research. At Vocalabs, Leppik has assembled a team of professionals with deep expertise in survey methodology, data communications and data visualization to provide clients with best-in-class tools for improving customer service through real-time customer feedback.
  • 0 comments 186 reads
    Posted on 2013-05-09

    The FCC has made some rule changes which go into effect October 2013 which add new restrictions on the use of outbound IVR (aka "robocalling"). Some of these changes will affect outbound IVR surveys, so if you use this technique you should be aware of what's going on.

    I'm not a lawyer, but I've been researching these changes. My summary of how this impacts outbound IVR surveys may be helpful to get the lay of the land, but if you think this may affect your business you should get legal advice from an actual lawyer.

    The background is simply that consumers hate robocalls, and they have been complaining to the FCC. A lot. And when you annoy enough voters, politicians and bureaucrats tend to notice.

    The old rules had some significant loopholes (aka "safe harbors") which made it fairly easy for companies to legally robocall consumers. The biggest loophole was the "established business relationship" exemption, which basically said that the rules didn't apply if there...

  • 0 comments 342 reads
    Posted on 2013-05-07

    According to the LA Times, Spirit Airlines, the aggressively customer-unfriendly purveyor of cheap airfare and expensive extras, has gotten rid of its toll-free customer service numbers. Customers will now have to pay long-distance rates to Salt Lake City.

    I'm not a fan of Spirit's pricing tactics. The company goes so far as to quote airfare and fuel separately, as though fuel was an optional extra and you could shop around for a better price. And according to Spirit's data, the company collects an average of $54 per flight in "optional" extras (like $35-$50 for a carry-on bag). Add $108 to a round-trip ticket, and Spirit doesn't seem like such a bargain anymore.

    That said, there is some real logic to this. We no longer live in an era of $0.25/minute long distance, and many consumers get unlimited long distance bundled with their mobile...

  • 0 comments 267 reads
    Posted on 2013-04-24

    Consumerist has the latest example in a long string of companies bribing customers for good survey scores. A Pizza Hut franchise taped a note to a pizza box offering customers a $1 discount if they bring in proof that they took the survey, and noting that "Only 5's count."

    [To be fair to the Pizza Hut--it's not clear that customers would only get the discount for giving the restaurant perfect scores. But the flier could certainly be interpreted that way, and I'm sure many customers did.]

    This kind of thing will continue to happen as long as companies keep setting up incentives to improve survey scores without also having strong controls on the survey process. There are a zillion ways to manipulate customer surveys, from blatant (telling customers that "only 5's count") to subtle (selectively reminding the happy customers...

  • 0 comments 149 reads
    Posted on 2013-04-15

    Assembling a new gas grill can be a pain, and for many customers, it's a definite plus when the store will assemble it for you. So many stores are now offering free assembly as a way to sell more gas grills and provide a better customer experience.

    But free assembly isn't what every customer wants. The problem with gas grills in particular is that once assembled, the grill is a lot bigger than it was in the box. So some customers quite reasonably prefer to take the grill home unassembled and put it together themselves, because they couldn't fit the assembled product in their car.

    Unfortunately, that's not how some stores view things. As several articles from the Consumerist from 20132012, and ...

  • 0 comments 242 reads
    Posted on 2013-04-10

    Vocalabs has several healthcare-related clients, so we are used to dealing with the privacy and security requirements of HIPAA. Some recent changes to the regulations will mean significant new requirements for what a company like us needs to do to remain HIPAA compliant after September 2013.

    Since Vocalabs itself is not a healthcare company, we are not what's called a "covered entity" under the regulations. Rather, we are a "business associate," which is basically any company which a covered entity hires to perform some work which may require sharing protected health information.

    Many non-healthcare companies hired by a covered entity would also be considered business associates--for example: accountants, IT services, lawyers, business process consultants, etc.

    Under the old rules, a business associate had to sign a contract with the covered entity that basically promised to keep protected health information private and secure. Business associates had to...

  • 0 comments 204 reads
    Posted on 2013-04-05

    Airlines have inflicted so many annoyances on their customers--intentionally or through incompetence--that it's almost refreshing to read about a situation which wasn't actually caused by the airline.

    The story is that a passenger flying business-class internationally with his wife on United Airlines did everything right to make sure he got the seats he wanted: he booked well in advance, got seats together, checked in early, and had super-elite status on United.

    As they were boarding, though, the wife was pulled aside and given a new seat assignment so the couple would no longer be seated together. Naturally annoyed, the customer asked for an explanation and was only told that "there are some passengers we can't move."

    The flight attendants also seemed confused by the situation, but wouldn't provide any explanation other than "Some passengers we just can'...

  • 0 comments 162 reads
    Posted on 2013-04-03

    Via Techdirt today, a mildly amusing recording of a customer taunting a Time Warner Cable CSR by saying he's recording the call.

    In the recording the customer begins by telling the CSR that he's recording. The CSR, no doubt following TWC's written policies, says he doesn't consent to the recording. The customer asks how that can be given that TWC is itself recording the call.

    Unfortunately the CSR is caught in the middle--as everyone (except maybe TWC's lawyers) understands, the policy is absurd. But the CSR isn't allowed to deviate, and can't think of a rational reason why the customer shouldn't record the call, and there you go.

    What this really points out, though, is the sheer nuttiness of these "We will record you, but not give permission for you to record us" policies. Anecdotally, I know...

  • 0 comments 305 reads
    Posted on 2013-03-25

    There's a simple but powerful technique I think should be part of every customer survey to make it much more valuable for business decisions: every customer survey should be linked to a record of the customer's buying behavior.

    Most companies already have this data available, and some companies are making a significant effort on "big data" analysis projects to try to tease out what it all means.

    Taking the small extra step of including this data in the customer survey report makes use of the fact that, if you have a customer survey, your customers are already telling you how they feel about you. In many ways that's a lot easier than hunting for subtle statistical clues in a tsunami of behavior.

    For example, one of our clients found that, compared to "Very Satisfied" customers, customers who were "Somewhat Satisfied" or worse with a customer service call were about 4x more likely to take their business elsewhere within the next six months.

    That's not a...

  • 0 comments 555 reads
    Posted on 2013-03-21

    Closed Loop is a popular buzzword for customer feedback programs today. It means implementing a formal process whereby customer feedback is used to drive change in the company in order to improve customer feedback.

    This kind of cycle is a powerful tool--in fact, I would argue that it's pretty much the only way to build an effective and useful customer feedback process. After all, if the customer feedback isn't being used to drive change in the company, then what's it good for?

    But most advocates of a closed loop process aren't really closing the loop. That's because most supposedly closed loop customer feedback processes don't formally consider the customer survey as part of the "loop" to be "closed." In other words, the company never reconsiders whether the survey is asking the right questions of the right people. It is just assumed that the survey should keep doing the same thing no matter what.

    In fact, some of the proponents of closed loop...

  • 2 comments 324 reads
    Posted on 2013-03-14

    I see a lot of people spend a lot of time and effort making sure they focus on the "right" metric in their customer feedback program. Net promoter? Customer Satisfaction? Customer Effort? Something else? All of the above?

    There's often a lot less thought going into what to do with the survey data: who should get it, how often, how will it be used, how will people be coached and compensated, how will you follow up with customers, and so forth.

    This is a big mistake, since most of the value of a successful customer feedback program comes from all the things that happen after the data is collected. In my not-very-scientific estimation, I would say that 75% of the value is in the process, with only 25% from the metrics.

    I could be wrong, though: I would believe that as much as 90% of the value is in the process.

    Even a mediocre metric is going to allow a lot of improvement in a well-designed closed-loop feedback process. But no metric, no matter how good, is...