Saturday 28 December 2013

Customer Service and Macroeconoics

After my last blog on customer service, I had a comment from a dear student of mine, he mentioned “if we're given an inch we will take a mile”. The observation is right to a large extent. There is a tendency to take undue advantage and that becomes a problem in offering reasonable customer service. Again not everyone is bad but if there is a sizeable number then all are treated alike. The question came to mind why are we like this? Why this mindset does exist in many? Is it because of socioeconomic conditions, or decline in morality? Does these two have any correlation? Do macroeconomic factors affect our morality? Macroeconomic factors such as economic output, unemployment, inflation, do affect a large population rather than a few select individuals. There is an impact on habits, social conditions, physiological conditions, spiritual and/or moral values. Vulnerability of an individual or a group increases due to macroeconomic changes. Indian movies where the hero steals bread to feed hungry younger brother or robs someone to buy medicines for dying mother highlighted deteriorated economic conditions and unemployment. Many of the movies also show the exploitation due to micro-financing by landlords or moneylenders and resultant revolt by the oppressed. There exists a strong relationship between economy and human behavior.

Over a period of time Indian Rupee has lost value, inflation has increased manifold, unemployment is a major problem, migration from rural areas and backward states has increased, politicians have played tricks, given wrong messages and have amassed wealth. Role models have changed in the Indian society and all these impacted adversely morality and the value system. It’s unfortunate. I still remember the days when one would not steal or cheat. Going down the memory lane, but not very long back, I still remember my experience. It was in 1982. I was in Goa at Miramar beach enjoying nice breeze in the evening. While walking on the beach I had to kneel down to tie my shoe lace.  My awkward bending resulted in my wallet dropping down and I saw the currency notes flying with strong breeze. Money had a value in those days. I was helplessly watching a mix of one, two, five and ten rupee notes flying. I ran after them on the sandy beach and managed to grab few. I stood there for a while and started counting what has been salvaged. In the meantime few persons came to me and returned the notes that they could catch. Frankly I did not believe that this could happen, but it did. All that I had lost was about six rupees and got back 162. Today with rupee value going down I may not get back anything and I may also not run to grab the flying notes and those who might get the notes might run away from me. It’s sad, but it’s a reality today. If there is such a change in mindset, then it’s real challenge for marketing professionals to design customer service.

We are not doing badly in India, but there is a need to design customer services keeping in mind the customer base and changing mindset. Customization is a major challenge. Websites and emails can help a long way. I did had a good experience with Britannia for the complaint that I had for one of their products. Onjus sent replacement to my residence in response to my complaint. HUL responded but more out the fear that I would complain to FDA, rather than customer care. I had no response from Reliance fresh to my complaint for overcharging. Finally I had to lodge complaint with regulatory authorities. And I have no idea if any action has been taken by investigating authority. There is again a major problem as the email IDs of many government and semi government officers are invalid. My emails for certain very important issues to Home Minister of Maharashtra, Commissioner of Police, Navi Mumbai, FDA commissioner, Maharashtra and Andhra Pradesh, Insurance Ombudsman, Mumbai and may other government authorities are not even acknowledged. So on one hand many from the private sector are striving to offer good service, while government is unmindfully ignoring. This impacts credibility of the service providers and the mindset of consumer. If one is not heard then it sends wrong signals and that is bad for the business and the society. If one is denied the legitimate dues then retaliation is a strong possibility, which can manifest in different forms. This can be another dimension that might affect behavior to counter the apathy of non-response.

There has been mix of experiences in USA. Remington replaced the electric shaver just by calling them. Hanes replaced defective vest but asked for some details. It was like probing, so different than Remington experience, but did respond. But not all are same. Bad experience has been with Sunkist, their roasted almonds. A jar purchased from Sam’s Club, was just bad. The almonds were rancid many months before the “best before date”. Complaint lodged on company website was never responded. This is another problematic area when a company wants the consumer post a complaint on their own website. There is no proof unless one keeps “Print Screen”. Not many consumers do this, thus there is no follow up. However it shows the mentality. As of now I don’t buy any stuff of Sunkist. They lost a customer and may lose many more.  Best aspect of customer care in USA is return policy of most of the retailers. I had no difficulty in exchanging a defective product or just returning the product for refund or for store credit.
Another good service available in USA is “gift receipt”. If one doesn’t like the gift, the same can be returned to the retailer, another one of choice can be exchanged or store credit can be taken. Macy’s return policy has been good and what I liked was the customer care. Once I had a bad experience with one sales executive, resulting in my wasting almost half an hour to get my stuff. I asked for the manager and explained the need to be more professional. The interaction with store’s manager ended in getting an apology with $25 store credit.

Returning to India, many of these practices are not feasible. I can’t think of replacement of a $100 worth electric shaver without returning the defective piece and supporting invoice by any Indian manufacturer. My experience with a Tata company to avail of extended warranty has been very painful. Dmart deducted 2.5% from the amount they refunded because I had made the payment by credit card. The dealership of Tata Motors in Nerul, Navi Mumbai, charges 2.5% extra if I pay by credit card, but the dealership in Pune does not charge anything extra. The company has to have clear policies in this regard.

Picsquare, the online photo print company, published certain rates on the website and charged 33% higher amount on checkout. I spent hours in selecting, editing, and uploading the photos after taking into consideration the published rates and while checkout I find I am being cheated by 33% overcharging. I had two options either to cancel the deal or pay more. If I cancel the deal then my time spent to load the photos and my ISP’s charges are wasted and If I checkout then I pay more. I chose the option to pay more and check later with the company. The customer service sent a mail that the charges have been revised and the one published on the official sites are not valid. They had no concern or any desire to refund the extra amount charged. They lost a good customer. As against this Amazon offered for a free unconditional return for an item that I was not 100% happy or 10% refund of purchase value, if I decide to keep the product. Can Picsquare learn something?

Indian companies have to graduate themselves and offer better service. At the same time the consumers have to be honest and try not to take undue advantage of service offered. Who should take the lead is like whether chicken first or egg first. The changing socioeconomic conditions and with technological advancement a win-win situation is certainly possible.

For Indo Italian Cuisine Fusion,


Wednesday 18 December 2013

Customer Satisfaction

Customer service is graduating in India. Things have changed in last couple of years in the service industry and levels for customer satisfaction are rising. Many of my friends have studied Management of Services and few hundreds of them will learn this subject in the next semester. Undoubtedly this is one of the wonderful subject to study. The kind of insight one can develop about customer satisfaction is phenomenal. What can offer a customer delight and what can put off the customer is very subjective yet can be generalized to some extent. One of the challenges that the service providers face is managing sudden spurt in demand, may be sporadic demand. In other words I will call it as keeping the waiting customer in good mood till the service is delivered. This can range from helping the customers track their consignment to managing queues in supermarkets. The usual approaches like advance booking, off peak hours, online ordering and store pick up, which are practiced, are valid but something more needs to be done. People and process both have a major role in future to accomplish this.

Many a times when I call the customer service over the telephone, very often I listen to most uninteresting messages while I am on hold. If these promotional messages are mundane or are not of any interest for me then the wait becomes irritating, more so when it’s my paid call. This irritation has impact on the final outcome. Similarly waiting at the checkout in a supermarket can also be extremely irritating. At times I may finish shopping in ten minutes but has to wait for twenty minutes for payment. While waiting in restaurants the ‘wait’ can kill my appetite. If I am with my four year old granddaughter she might lose her interest, and I might lose my temper. Many times I decide to grow my hairs to shoulder length while waiting in the salon and going through old magazines garnished with shredded hairs of multiple customers, that I confuse with commas or capital I at times. These waits are mostly boring and managing these well can help to retain the customers. One of the most irritating wait is in doctor’s clinic. I have yet to see a doctor who has kept his appointment. Sitting for your turn and watching anatomical charts, disease charts and gloomy faces of patients makes me more sick. This waiting is most painful, more painful than going through the old magazines that the doctor brought from his home or bought from Raddiwala. Even though there is a technological advancement, banks still have the rush, more so during the first few days of the month or after the weekends or bank holidays. Waiting to get your own money from the bank is not a pleasant experience.

There are many more painful waits and I can continue for couple pages more. The bottom line is how to make these waits pleasant. Music is one answer, but again what kind of music. This is again is subjective. TV monitors, may be a way out. One of the Honda service centers in New Jersey have multiple TV monitors mounted at some distance from each other in the waiting area. One can choose the channel one likes. The subjectivity is taken care off to some extent. The service center also offer free snacks, juices, soft drinks, tea and coffee. The wait becomes bearable. Tata Motors service center in Navi Mumbai offers tea in 50 ml thin plastic cups, in a gloomy environment, while the one on the bypass in Pune has better ambience and better quality of hot beverages. (Importance of physical environment!). It’s a good attempt but the imitating American design doesn’t help. The social stratification and other disparities annul this Tata attempt. Acceptability to sit next to a Sumo driver for an owner of Aria and have a cup of coffee in a 100 ml disposable paper cup is difficult in Indian society. There has to be separate area for elites to overcome this hindrance.

America has a solution for my wait in salons. There are many salons that offer me web check in. I log on to the website of the desired salon and check in on available time slot. Accordingly I leave my home and arrive at the salon to directly get in to the barber’s chair. There is a sadistic pleasure to see the waiting customers when I walk in.

Young customer in waiting
Many of the American restaurants offer drawing book and set of crayons to children accompanying the parents, to keep them busy till food is served. Indian restaurants (in USA) are busy in making money and ignore these young customers. McD offers a toy on some kid’s menu, in most of the countries where they serve. Offering free refills to customers buying a soft drink is very common in American fast food joints. To manage waiting, PF Chang’s Chinese Bistro gives a hand held gadget when the customers arrive at the counter and if they have to wait for the table.
I was waiting....

With the gadget in hand the customer is free to move around or have drink in the bar or even go back to their parked car. The gadget will flash light and buzz when the table is ready. In few places in Navi Mumbai the restaurants have kept few rides, like rocking horse or Mary go round or toy car for children and that also keeps their parents busy too. A restaurant is Navi Mumbai that is closed now was having paper table-mats with puzzles, riddles and anecdotes. Customers would keep themselves busy solving the puzzles or riddles till food was served.

Technology has helped Domino’s. The online order placed with Domino’s can be tracked till the delivery. This Domino’s tracker keeps me updated right from the moment I place the order till the pizza is delivered. I can open multiple windows on my laptop or tablet, work or listen to music or watch youtube and also check the status of my order. Waiting for the pizza becomes comfortable.

My order on Domino's Tracker
Most of the banks in USA offer free tea or coffee. Customers can pick up K-cup (premix in a sealed disposable cup) of their choice pour hot water and enjoy the beverage. Keeping chocolates or candies in a jar is again common. Some more enterprising entities keep a box of cookies also. Thus one can munch a cookie, sip a hot beverage while waiting to transact the business and walk out with candies when they are through.   

Self-checkout at supermarkets is another option that is available in the USA. But if there is a queue for this then again we are back to square one. Such checkouts however are supervised by an employee who can offer help in case of any difficulty. The human involvement is welcome and at times necessary to for assistance or malpractices by unscrupulous customers.

Fortunately the problem of waiting and the boredom associated with it has been reduced to a large extent by the current technology. The smartphones have come to the rescue. FB, WhatsApp, loaded games or online games offer some respite to the waiting customers. The least use of a cell phone in USA is for talking. The cell phone is used for almost everything except talking (incoming is not free in USA). A step to please customers that has been adapted by service providers is to offer free WiFi. Supermarkets, malls, restaurants, airports, train stations, you name it, all these provide free internet access. The customers are taking care of themselves so the service providers have some respite. However in this fast changing world, this is not the end, but just a beginning for offering newer avenues for customer satisfaction. Customers are going to be more demanding.

In the service industry a pleasant experience is must before and after the customer transacts the business. The pre and post production experience has a lasting impact to retain and attract customers. This is possible with involvement of “people” in pre-production and delivery of the service. Automation, IVR can never offer that human touch which can create a magic in customer satisfaction. The greatest requirement of one of the Ps of services mix, “People”, is at these two stages. Manage these well and you are on the right track. Technology has its limitations.

Wednesday 11 December 2013

Tea around the world

While enjoying my masala chai (मसाला चाय) during breakfast, I glanced through the flier of Trader Joe’s that was delivered in the mail earlier afternoon. While many of the products failed to catch my attention, one product in particular, I couldn't ignore. It was Salted Caramel Chai, Tea Latte Mix. Being a management student and also an experimental cook, I read with interest what the product is. It’s a blend of black tea (must be from Assam) and Darjeeling Tea along with cinnamon, cloves, anise and ginger. In short it was a masala chai (मसाला चाय) with little difference as it was with caramel and few crystals of common salt. For me it was an interesting mix of typical Gujarati masala chai (मसाला चाय) with a dash of salted tea that I had on the streets of Kolkata tuned to the American taste with addition of caramel. From marketing point of view it was an adaptation of Indian tea for select American consumers at an attractive price of about USD 0.60 per serving. I will certainly not miss an opportunity to have sample of this blend when I visit Trader Joe’s next, which is almost at a walking distance from my residence close to US 1, in Princeton.
Indian Masala Chai
Tea is an English legacy. We cannot prove (not surprising) that we had tea in India much before British learnt how to spell tea. East India Company got firmly rooted in India; they encouraged the tea plantation in Assam in nineteenth century. India has been the largest producer of tea. Today India is pushed from top position to second largest tea producer’s position by China. Tea has been a native plant in Assam and some antique recipes of tea leaves and garlic are also documented. Contrary to this many researchers claim that tea travelled from China to India. Hope China doesn't claim that Assam is a part of their territory on this pretext. In one of the four ancient Chinese novels, “The Dream of the Red Chamber”, the author Cao Xueqin has mentioned that the tea was imported and consumed by rich people in China. Some researchers believe that tea is native of India and has been mentioned even in Ramayan. Some believe that the Somras (सोमरस), is tea. Black tea is a fermented product and so is, as claimed, Somras (सोमरस). The base for any alcoholic beverage is of vegetable origin and so is for most of the intoxicants (afim अफीम, charas चरस, ganja गांजा, tobacco etc), except two legged human beings (your sweetheart) and chemicals (LSD, amphetamine and alike). Ayurveda has been advocating various infusions, commonly called as Kadha (काढा ), may be kind of herbal tea, so tea is certainly not alien to us.

From marketing viewpoint tea has been regionalized. In China it’s the green tea that’s very common. There are also flavoured teas like the most popular, Jasmine tea. I have seen many Chinese dropping a tea bag in the kettle of hot water and pouring a small portion in porcelain cup and repeatedly sipping throughout the day. Every meal must end with tea. This is a "tea drinking" for its refreshing and tonic effect. Another aspect in China is "tea tasting" and that has
Chinese Black Tea

cultural significance. So tea in China is unique to its culture and traditions yet as per changing taste flavoured tea has its own niche.

From China tea travelled to Japan in the eighth century where the monks of Zen Buddhism had tea to keep them awake for meditation. Tea contains nearly 40 mg of caffeine per cup to keep one awake. Being expensive tea was consumed by priest and noble persons. Now tea is a part of Japanese food culture. Tea is widely available even in PET bottle from the vending machines. Here again when tea is served it is usually green tea; however black tea and Chinese jasmine tea are also popular.

British were instrumental for large scale farming of tea in India. They set up large tea gardens and went in for commercial production. British also had tea gardens in other colonies namely Ceylon (Sri Lanka) and Kenya. The typical English breakfast tea is a blend of tea from India, Sri Lanka and Kenya. The blend has created a niche for itself. Another niche is for Earl Grey Tea, which is a black tea with addition of oil from fragrant citrus fruits that offers a distinctive taste and aroma. These two blends are popular in the UK and many brands are available in the market. These are strong blends, and therefore milk is added to the brew unlike China. UK Tea Council reports average consumption of 165 million cups of tea every day in UK.

It was the British who exported Tea to America from India. Americans have been ungrateful to tea. In fact they owe their independence to tea. It was the Boston Tea Party, a protest against tea duties in 1773 that sparked off the American War of Independence. Had tea not been there, America would have been yet another British colony.
American Ice Tea
But Americans forgot tea and chose coffee. Times changed and the migrant population from Indian subcontinent could not be ignored. Chai has attracted Starbucks, Dunkin Donuts and many other American fast-food and beverage joints, where it finds a prominent mention on displays and menus cards. Snapple’s gave a “cold shoulder” to tea and offers ice cold fruit flavoured tea in American market. In grocery stores and supermarkets a wide range of tea from India is available. Flavoured ice tea is adaptation for American market.

Coming to India, undoubtedly it’s national drink. The southern states like Kerala and Tamil Nadu also have tea plantations apart from traditional tea producing areas like Assam and West Bengal. India has 30% consumption of world tea production and 70% of India’s produce is consumed locally. Tea was again a rich man’s drink in this country till 1950. Government of India set up Tea Board in 1950 and then after there is no looking back. The consumption is on increase year after year though coffee is trying hard to get a firmer foothold. Tea is a welcome drink in most part of the country and like British tea is taken with milk. Indians need strong brew, fragrance is manageable as chai masala (चाय मसाला), ginger, cardamom mask the original flavor. There no better drink than Adrakwali Chai (अद्रकवाली चाय) with Pakodas (पकोडा) or Batata Vada (बटाटा वडा) anytime on a rainy day or a hot cup of tea when one is out of the bed, particularly in morning in the winter season. Tea however is always welcome drink. It’s a drink in any season for any reason. The Mumbai culture is of “cutting”, about 50 ml of hot tea supplied by and at roadside Tapari (टपरी), a tea stall. At places Kori Chai (कोरी चाय), strong black tea without milk, is also popular. Each state has its own speciality as far as tea is concerned. Before advent of disposable plastic and paper cups, the indigenous disposable cups for serving tea were kulhad (कुल्हड)small cup shaped earthenware.
Indian 'Use n Throw' 
Before pouring tea, these would be dipped in water to mask the murky smell. A ting would still remain and that was adding a distinctive flavor to the tea. The kulhad (कुल्हड) are part of history with changing times. And these changing times have also brought in flavoured teas, green tea, chamomile tea and hoards of “healthy teas” to the Indian market. Different brands of Chai Masala (चाय मसालाto add further zing to tea are also available in the Indian market. However the simple tea with ginger or cardamom still rules the ready to serve tea Indian tea market and is going places around the world.  

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