Customer Directly Proportional to Complains.

Some times customer is directly proportional to complains. Where there are customers, there are complaints. As much as you'd like to hope that no one will ever be unhappy with your product or service, you're almost guaranteed to encounter at least a few customers who are less than fully satisfied.

As consumers increasingly air their grievances about brands on social media, the focus has turned to the way those brands respond to customer complaints, especially in a public forum. Knowing what to do in this situation makes all the difference when it comes to re-earning a customer's business — and what he or she tells others about your company.

"Great service is about getting your customers to trust you and count on a consistent experience, but that doesn't mean you're always going to be perfect," said Eric Schiffer, CEO of Digitalmarketing.com. "In a crisis, you can elevate your stature how well you handle the situation. A negative experience can be the best time to show your value."

If you're faced with a negative customer experience, these four steps are advised to resolve the issue and regain the customer's trust.

1.        Acknowledge the problem. The classic customer service  says that the customer is always right. While it may, in fact, turn out to be a misunderstanding, the worst thing you can do is dismiss a customer who tells you he or she had a problem with your business.
 

2.       Apologize for it. Once you've acknowledged the customer's issue, apologize for it and ask what you can do to help. Gather the facts about the situation, and determine a course of action from there.
 

3.       Take action. Saying you're going to fix a problem is one thing; actually doing it is another. Make sure you honor your commitment to take care of the customer's complaint. If you can't correct the problem, offer a coupon or voucher as a way to ask the customer for another chance.
 

4.       Follow up. When you've done what you promised to do, follow up with the customer to make sure that your solution was satisfactory.

No matter which person on your team is responsible for handling customer relations, it's imperative that you embody excellent service as the head of the company as well.

"Great service has to come from the top. "Lower level employees aren't going to be inspired and motivated unless they see their leader providing exceptional service."  

                                   

3 Secrets to Building Brand Loyalty

If you want to build brand loyalty in an age when 80 percent of consumers look online to see what other people think instead of just sticking with a brand they know, you have to be smart about both the quality of your product and the experience of buying it.

Customers have moved beyond unquestioning Brand Loyalty and toward quality, and they will go where they find it, primarily because information is easily accessible by way of the Internet.

This is a major evolutionary change in the world of brands. In the old days, consumers looked to advertising or their past experiences with a company, which served as a proxy to figure out a new product’s reliability and worth. Brand loyalty was a way of reducing risk.

Today, with easy access to expert reviews, user reviews, detailed report data in an array of categories, and transparency in every good and bad company behavior, the power of brands is truly weakened. A brand’s value may easily plummet, especially when the next competitor offers something similar that's judged to be just as good.

But there are still ways to make your brand more sticky and your customers more loyal.

1. Deliver on the product’s promise every time.

The benefits of your product have to be apparent and consistent. If you sell yoga pants and you say they fit great, keep you demure during a public practice session, and will look like new wash after wash--make sure they do.

Lululemon’s founder Chip Wilson learned that lesson the hard way when a social-media maelstrom ensued after some customers started complaining that the brand’s garments became see-through during their yoga workouts. Instead of simply agreeing to look into the complaints, Wilson responded that not everyone is fit or thin enough to pull off his company’s pull-on pants.

The major mistake Wilson made was believing that his preferred customers were so brand loyal that they wouldn’t care that he insulted an entire demographic of women. Women quickly ditched the chauvinist brand and found substitute products.

So disastrous was the double whammy of failing quality and a condescending founder that as of January 2014, Lulelemon’s stock price was still in the tank while rivals benefited from customers switching brands.

2. Over-deliver on fixing mistakes.

If you screw up on a product promise, fix it--and consider telling a story about the fix. Put your CEO in an ad or post a video on social media showing him or her tossing defective products in the trash, with the promise that better products will appear on store shelves ASAP. Showing your authenticity in this way makes the brand believable, so customers are more likely to give you another chance.

3. Be inclusive, not exclusive. 

When singer Kelly Clarkson wanted to buy a large number of iPods for orphans from Best Buy, the store refused to sell the goods. Sounds ridiculous doesn’t it? The store decided to adhere to the company policy of putting iPods aside for specific customers. Though the company changed its mind after Clarkson talked about the incident on social media, it was too little, too late and a potentially great PR moment was destroyed.

Do you really want to be known as a brand that doesn't want to serve a certain group of people? Ask yourself some serious questions about whether avoiding certain paying customers can really help your brand. A gaffe that comes out online can ruin your best laid plans.

In an era when a tweet or a bad Yelp review can tarnish your brand--and sales--you have to focus more on the customer experience. Wowing the customer will bring you brand loyalty.

Reforms are back: Govt allows FDI in multi-brand retail, aviation The govt also approved FDI in aviation and power sectors, and announced divestment in OIL and Nalco.

NEW DELHI: In a historic decision, the Union Cabinet on Friday cleared major economic reforms allowing 51% FDI in multi-brand retail, 49% FDI in aviation, power and broadcasting sectors and also announcing the disinvestment in four major PSUs -- Oil India, Hindustan Copper, Nalco and MMTC.

Foreign airlines can now buy up to 49% stake in Indian carriers. The government approved FDI on various streams of broadcast services by up to 74 per cent. It also allowed FDI in power sector.

The Cabinet Committee on Economic Affairs also approved disinvestment in public sector units - Oil India (10%), NALCO (12.5%), Hindustan Copper (9.59%), Neyveli Lignite Corporation (5%). This move is likely to fetch Rs 15,000 crore for the government.

Foreign carriers were not allowed so far to directly invest in Indian carriers for security reasons, although 49 percent FDI by non-airline players was allowed.

According to civil aviation ministry sources, the directives for the implementation of the policy will be issued within a month.

However, any global carrier eyeing a stake in an Indian carrier must weigh up the benefits of a market with high long-term growth potential but one that has been squeezed by high costs and fierce price competition.

The move allows global firms such as Wal-Mart Stores to set up shop with a local partner and sell directly to consumers for the first time, which supporters say could transform India's $450 billion retail market and tame inflation.

The Manmohan Singh government ignored calls from political parties for a U-turn on a hike to heavily subsidized fuel prices announced on Thursday, and also approved a policy to allow more foreign investment in airlines as well as selling off stakes in major state-run industries.

India's inability in the past months to push through major reforms and ease its subsidy burden as growth slowed sharply has put it in danger of becoming the first of the big "BRICS" emerging economies to see its credit rating downgraded to junk.

In November last year, the same government had cleared this proposal but had to roll back the reform push following strong opposition to it from Mamata Banerjee, chief of Trinamool Congress which is a major constituent of the ruling UPA.

The government said that individual states will decide on the implementation of the move.

Earlier, when the government had okayed FDI in retail trade, it had done so with several preconditions attached to the liberalisation of the foreign investment policy regime.

The Manmohan Singh-led UPA government plans to gradually expose trade and industry to foreign investment so that the Indian industry can face this new challenge over time.

Proposals to permit FDI in multi-brand retail trading in all products, in a calibrated manner, are likely to be subject to the following conditions:

1. FDI in multi-brand retail may be permitted to the extent of 51 per cent with government approval.

2. Minimum amount to be brought in as FDI by a foreign investor would be around $100 million.

3. At least 30 per cent of the procurement of manufactured processed products shall be sourced from small industries, in the country, that have total investment in plant and machinery not exceeding $100 million.

4. The government will have the first right to procurement of agriculture products.

5. Fresh agricultural products, including fruits, vegetables, flowers, grains, pulses, fresh poultry, fishery and meal products may be unbranded.

6. At least 50 per cent of the total FDI brought in shall be invested in back-end infrastructure. Back-end infrastructure will entail capital expenditure on all activities, excluding that on front-end units.

For instance, back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, warehouse, agriculture market produce, infrastructure, etc.

7. This valuation refers to the value at the time of installation without providing for depreciation.

8. Further, if at any point in time, this valuation is exceeded the industry shall not qualify as a small industry for this purpose.

9. Expenditure on land cost and rental, if any, will not be counted for purposes of back-end infrastructure.

10. Self-certification will be done by the company to ensure compliance of all the conditions.

11. Retail sales locations may be set up only in cities with a population of more than 10 lakh (1 million) as per 2011 Census and may also cover an area of 10 km around municipal urban agglomeration limits of such cities.

12. Retail locations will be restricted to areas as per the master zonal plans of the cities concerned and provisions will be made for requisite facilities such as transport connectivity and parking.