January 07, 2007

Q&A: How important is customer service?

QUESTION: As a new online bookseller, I wonder how important our relationships with customers are. Of course it's always important to deliver what you promise, do a good job, etc. in almost anything you undertake in business. But why does everybody preach so much about the importance of customer service? Isn't this one business where you are likely to sell to a customer only once, especially if you're not a megaseller? And even if you did sell to someone more than once, they probably wouldn't remember your bookstore name anyway?

Or does it really boil down to feedback, where having a 5-star rating results in many more sales than a 4.7 star rating, for example? I always ship within the deadlines, but other sellers spend up to $1.00 on elaborate packaging and 3 minutes of packaging time per book, in the name of customer satisfaction. While this may produce higher satisfaction, I would rather ship using an easier/cheaper method, that will deliver the book fully intact but may not evoke praise for "professionalism."

ANSWER: I think you're right, as booksellers participating on a network, we don't have the same necessity of acquiring and keeping customers that traditional businesses have had. Platforms like Amazon or eBay bring us our customers, and that's why we pay those commissions.

So it's true that for many buyers, we're anonymous, an unknown quantity. From some of the e-mails I get from customers, it's obvious they think they're dealing with Amazon, that I'm an Amazon employee.

Nevertheless, I do stress customer service for two main reasons:

1. To protect your business. If you're selling books to earn money, you'll be more competitive if you can display a good feedback record. Many of the customers buying cheap books don't look at feedback, but those who buy expensive books do.

2. Providing good service can make your business easier to manage. That's my philosophy, there's no way I can prove it works for everybody, but it works for me. It's just a general approach, like checking your e-mail every few hours and being pro-active about handling little problems that come up. I believe if you can nip little problems in the bud, you can prevent a lot of big problems from happening. If you can prevent the big problems, it eliminates the big headaches that can suck up so much of your time.

As far as packing materials go, when I started selling I used cardboard bookfolds on every book, even if it was a 25-cent sale. Over time, I've transitioned to vinyl bubble mailers for books worth less than $15 or $20. That makes the packing job go a lot faster, and I haven't had any more mishaps with books being damaged than when I was using bookfolds.

A lot of Amazon sellers believe that the company's trend toward hiding buyer and seller e-mail addresses is going to downgrade the customer experience, and I agree wholeheartedly. Getting in the way of our communication with buyers is going to hurt everyone in the long run, including Amazon.

But getting back to your question about repeat business: While you'd think the odds would be very high that a seller is going to have more than one book for a Marketplace customer, it happens. Every week or two as I scan through my feedback, I see a feedback comment from a customer indicating they were "pleased again from buying from this seller," or something to that effect. If a customer is happy with their purchase, they will often look through your other listings.

I am curious to know if other sellers have repeat business. What are the prospects for more repeat customers during the coming year, considering all the recent changes at Amazon, like the demise of zShops?

Labels: ,

8 Comments:

Anonymous Anonymous said...

I sell on Ebay and my main stay is books (paperback) but I do sell other items. And I do get repeat customers, and I have it figured down to #1 - product/products you are offering, if they were satisfied with their original dealings with you, most will remember your store name if it comes up under their product search for other things.
#2 - shipping, I try my best to price my shipping fair and still make a little, but also ship it the fastest way available. Under my shipping cost I have it listed as Media Mail, but price it to cover fist class, so when they get it in 3 days instead of 7 to 9 days they're please (most of my feedback is how fast shipping was), also this covers me in case I made a mistake on weight then I can always shipped it media mail and no harm done. #3 - emails, let them know that you shipped their stuff, I can't tell you how many times I have gotten emails from people thanking me for letting them know their book was shipped also how many times I have sat and wondered on things I have bought and never got any acknowledgement to when,where or how.....

1/07/2007  
Anonymous Anonymous said...

I sell on Amazon and I do have repeat business, even though I'm not a "megaseller". I also buy from Amazon Marketplace and have been a repeat buyer for several sellers. There are also a few sellers I would not buy from again because of poor packaging or other less than stellar qualities.
Customer service _is_ very important because the customer doesn't have the immediate gratification of having the book in hand directly after the purchase.

1/08/2007  
Anonymous Anonymous said...

Customer service is important because I want the customer to buy more books online. If buying books online is a positive experience, I will sell more books - maybe not to the same customer, though it does happen. Plus, I like the positive email I occasionally get from satisfied customers. On Christmas Eve, I got a long, effusive email about a book that made me very little money, but more than made up for it in the gratitude from the customer.

1/08/2007  
Blogger Grunchlk said...

Sorry, I have to say that the question: "How important is customer service?" is a rather silly one.
Ask yourself this, how do you like to be treated? Do you like to know that your order was received? Do you like to know when your order was shipped? Do you like to see that you order was packaged in protection with something besides a paper towel? Do you like to feel like your one-time business is just as important as someone who is a repeat buyer? If you sent your mother to that seller, how would you like her buying experience handled?
What a silly question. Common decency and courtesy which there is so little of these days can make a big difference in people's lives. Maybe your customer might not remember your seller name but maybe you will have done something nice for them that will make them do something nice for someone else.
Always remember the golden rule and karma and stop asking silly questions about why it's important to have integrity, honesty and care for your fellow human.

1/08/2007  
Anonymous Anonymous said...

I try everything I possibly can to maintain my 5 star, 100% rating.

I just sold a $875 book, despite two competing offers at exactly the same price and mine being the furthest away from the buyers location.

Coincidence? I don't think so. Direct result of feedback? You bet!

The best thing about perfect feedback is that you can demand higher prices. I never match another seller's price for same condition. Why would I? Most people scroll down the list and rather pay a few extra bucks for the knowledge that they are dealing with a top seller. Whereas a buyer of a cheap book might not do so, you enter a certain category, and they all will, believe me!

To pay attention to my feedback was the best business decision I ever made.

And yes, I do get repeat business all the time. I even have people ask me for lists of my items for sale, since I sell a lot of foreign books.

1/08/2007  
Blogger Mike said...

YOU ARE MY COMPETITION. WHY WOULD I SHARE MY ADVICE? WHY DID STEVE GIVE AWAY ALL OF OUR SECRETS IN HIS GREAT BOOK? WHY DO I CARE IF YOU PROVIDE SERVICE WITH YOUR PRODUCTS?

Ok I’ll stop yelling. We share our experience because we are a community. Your satisfied customers are my new customers and mine are yours. Although I have had about 2% repeat customers that I know of, I believe that most of my customers are new to me but have purchased on Amazon B4. And, I hope most buy on Amazon again. It does not matter to me if they buy from me or another seller, just buy and buy a lot. They will tell their friends about their great experience and the friends will buy from me. My business plan is about making the Amazon experience so great that buyers would rather shop online than at the big-box stores. We are working together to grow the business!

Sellers that take shortcuts are hurting us all. They are driving customers away.

The original question was a good one. It was well thought out. Not asking how to take short cuts, but to ask how far to go to satisfy customers. They acknowledged the necessity to meet customer expectations. That is the minimum level of service required of a seller. The question seemed to be how far past necessities should a seller go?

When I buy on Amazon, I would like to have my packages gift wrapped, sent priority, NO EXPRESS. I would definitely leave such a seller a “5.” My margins and business plan do not permit that extra expense for my customers. However, communication and customer service does fit into my plan. I believe the single most helpful thing beyond meeting basic expectations it communication. I am sure it is possible to communicate too much. I have just never seen it happen. A form email and a packing slip are inexpensive and efficient.

CUSTOMER SERVICE IS IMPORTANT TO OUR BUSINESS.

If you would like I will send a copy of my response email and packing slip if you send a personal email.

Mike

1/08/2007  
Anonymous Anonymous said...

It always takes me a day or so to think about these posts, so this comment is on a day old post.

Customer service IS your business! I LIVE for people who don't give good customer service to their buyers because my buyers are so grateful that I go that extra mile for them. I don't have to do much to be better than maybe the MAJORITY of sellers out there. Maybe it's because I have worked retail (in management, too), and know HOW the big guys do it.

Original questioner said he spends less than 3 minutes in wrapping the package, and uses the least expensive materials he can get away with. After all, he won't see that buyer again, so why bother?

IF I ONLY spent three minutes, I would figure I had an simple (paperback?)transaction.

I spend around 10 minutes wrapping, before email alerting the buyer to when I shipped their order (and Amazon makes that easy to post, but I cut and paste buyer emails for customers on the other sites), and when necessary, even build a box to keep the item safe. I use extra bubble-wrap, extra cardboard backing (means I cut up a lot of boxes...takes some time). And when I get a positive feedback (btw: I am at 4.97 or something like that now), I thank them for that, too.

I have a few repeat customers, but mostly, I believe I MAY have word of mouth NEW customers from my many satisfied customers.

AND, I am not sure of this, but my sales have tripled the last two months, so I think even the services may send you more customers (aren't there rotations on sites like abe and amazon when there are a LOT of listings for the same title? Not all the 3,000 copies can be 'up' at the same time, and the service rotates them, so your books aren't always seen every time???).

Maybe it's because even IF I lose some money on sh/h, I will ship global priority if it is only a few cents more (today it was $3.00 more but the person would not have gotten an item I didn't pay very much for for almost four extra weeks at media rate because they were in Alaska). I still made $12.00 instead of 15 on it, and that's okay. BUT mostly, I may have a repeat over this. And I DO get some pennies on most of my other orders, so on average (which is what the services work on...although alibris at $2.30 is a little tight), so there is an average we work on.

In the end, I am not sorry to do this for my customers. The sun is shining today, and I wonder if it's because I see the world as a good place, not just somewhere where I can make $$money.$$

Debbie K.

1/10/2007  
Anonymous Anonymous said...

Customer service is VERY important, but it is fast becoming a dying art. I am proactive with my customer service -- the latest being giving refunds for any book complaints of non-delivery in the month of December. I know the book will get there eventually but with 4 weeks of snow storms in the Denver area, the mail service is terrible. Do I get repeat business on Amazon? You bet! Most are foreign customers (I ship Global Priority ALWAYS), dropshippers, and I have noticed, neighbors of past customers (same street, same town, number addresses real close together). And I do nothing special, like ask for feedback, just ship same day, identify any abnormalities in my descriptions, and be consistant.

1/12/2007  

Post a Comment

Links to this post:

Create a Link

<< Home


View My Stats