customer service teams are only talking with a handful of customers, and doing so because of root problems that have been ignored too long, such as confusing statements and below average online tools. The great news is that it is not that difficult or expensive to fix. It simply requires leadership, an openness to change and bringing the right people together to collaborate and deliver an experience that is simple and considerate of the customers we’re serving. Opportunity #2: Brand Brand is about making the right impression that lasts. Documents and online payment solutions are the places to repeatedly showcase your company’s differentiating value. Think about how your customer reacts when they access your website, receive a statement or receive a budget letter: • Is it understandable and professional? • Can they easily take action to pay their bill or order service? • Does it reflect how you care about your customers? Or does it miss important details or expectations? Documents and your online experience are a crucial extension of your brand. Consumers will judge harshly and go elsewhere if what they receive falls short. Opportunity #3: Cost It may seem cheaper to have someone in your office print documents and stuff envelopes, but it really is not. The cost of producing and mailing documents in-house is almost always higher than letting a well-run document company manage it for you. For those who have already outsourced, it is prudent to explore alternatives at contract renewal. Per piece rates and postage are lower for document companies, and your team can spend time on far more important things to grow your business. Additionally, there is the real cost of poorly designed bills that contribute to bloated DSO (days sales outstanding/number of days to collect money). Most dealers have 30 day terms, but a DSO closer to 45-50 days—that creates an added interest expense to your already tight bottom line. Confusing statements also cause phone traffic, often at the worst possible time. Task switching for CSRs reduces productivity by at least 25%. Finally, dissatisfied customers will leave without hesitation. Losing them is bad enough, but it then costs an average of $600 in sales cost to replace them. Opportunity #4: Revenue Earning more business from existing customers is a fundamental objective. Maximizing customer value long term is essential to profits. Sales representatives cannot be everywhere at all times. You must find ways to sell, and to do so when you have a customer’s attention. Document messages and online payment portals provide the perfect opportunity to market new products and services. Since it is piggybacking an essential function, there is minimal cost. Price protection programs and budget letters are notoriously difficult for customers to understand. However, these valuable benefits create immense loyalty. Creating and delivering more effective communications for these offerings will increase enrollments and cash flow. On-document messages can and should be appropriately targeted and personalized, based on the services each customer currently has with your company and what is most likely to be compelling to them. Opportunity #5: Business Value Fuel dealers live and die by the value of their business, driving everything from credit lines to asset financing or a sale of the company. There are three main pillars to valuation: 1. Retained gallons/customer counts 2. Cash flow 3. Hard assets A well executed document and payment strategy improve the first two pillars. Great documents and comprehensive online payment solutions make it easy to do business with you during both on and off hours, increasing retention. Updated documents integrated with marketing of enhanced fuel and service programs will improve cash flow. This is especially true during the spring and summer when cash flow is historically tight. Where Should You Start? The first step is to elevate customers’ experience to the highest priority. With documents and your online customer portal being so important to retaining an everincreasingly demanding consumer, put it on your next manager’s meeting agenda. Challenge yourself and your team to ask the hard questions about what you are sending to your customers. Most dealers intuitively know that their documents and online portal are sub-par. Ask yourself, “What would I expect and like to receive if the shoe were on the other foot?” Acknowledging that something needs attention is only the beginning. To make a difference, take action: • Identify common customer document complaints and create an enhancement list • Evaluate opportunities for appropriately targeted on-bill marketing • Get the appropriate people involved • Assess the cost of collecting money • Contact your vendor about document redesign • If you mail in-house, perform due diligence on an outsource document partner • Assess your online portal solution: o Is it user-friendly and modern? o Does it provide the customer with enough information to truly be self-service? o Is it properly branded? o Can your CSRs view the exact same documents your customers receive? o Can fuel deliveries and service calls be easily scheduled? ICM ICM March/April 2017 21
ICM March-Apri 2017
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