MLM Customer Service: 23 Tips for Cost Reduction

1. Packing slip.
   Include one in every shipment. On the reverse side, give the customer instructions on how to complain or return merchandise. If the customer decides to return the order, request that the packing slip be completed and returned with the merchandise. This alone will save many hours and will enable you to give faster service. Companies report that 85 percent of the original packing slips are included with returned merchandise.
   
   
2. Customer reliance.
   Take the customer's word regarding such problems as missing items, damage, or lost shipments. This will save the time and money involved in writing for cancelled checks, order acknowledgements, or other proof of purchase. It will also eliminate the cost of receiving and processing products that are no longer saleable. Most customers are honest! Publishers Clearing House, the magazine subscription marketers, has a very pertinent customer service slogan: "Customers are always right, even when they are wrong."
   
   
3. Telephone calls.
   Encourage customers to call the company when they seek information or have a problem. The customer service number should be listed frequently below the ordering number in smaller type in starter kits, product catalogs, and promotional materials. It is more economical for the company and satisfying to the customer to handle problems over the telephone.
   
   
4. Toll-free telephone.
   Do not offer an "800" number for service problems. Such a service will increase the total volume of contacts by 35 to 40 percent.
   
   
5. Telephone customer-service form.
   Use a form to record customer-service inquiries received on the telephone when the representative is unable to respond to the customer. This form is designed to guide clerks to ask pertinent questions so that subsequently the inquiry or complaint can be expeditiously and efficiently handled.
   
   
6. Decision tables.
   Develop and implement tables comprising sample problems, action to be taken, and response to be used. See the sample decision table in the Models and Forms section. This technique (a) speeds the decision and response processes; (b) assures conformance to established company policies; improves the level of consistency and uniformity with which issues are handled; and (d) simplifies the training process for new and temporary workers.
   
   
7. Research tools and material.
   Supply each mail or telephone customer service representative with reference tools required to answer questions or make decisions. The ideal primary reference source should be a computer terminal that is capable of accessing the customer's record. If this is not feasible, in spite of the extremely low cost of such terminals, computer output microfilm (COM) should be used to produce microfiche that would provide an index of essential order information. An enlarger projects the desired item in readable size on the screen. Each 4 ½ x 6-inch microfiche can hold up to 208 full size pages of computer printout. Other research tools should include the following: (a) copy of basic adjustment policies to be followed; (b) decision tables; (c) notebook with sample forms; (d) sources of prices of products; compensation plan description; operation, use and details of products; inventory status; repair service; and replacement parts; and (e) copies of latest promotional materials, newsletters, product catalogs, package inserts, etc.
   
   
8. Returns information.
   Give customer service personnel access to (a) file of customer letters pertaining to returned goods not yet received; (b) returned-goods tickets covering merchandise returned without instructions from customers; and (c) listing of undeliverable packages retained in returns function.
   
   
9. Form letters and Emails
   Employ forms wherever practical. Over three quarters of all customer inquiries can be answered using preprinted forms, adding only addresses and minor fill-ins. A form response can be prepared in less than ten percent of the time (and at less than ten percent of the cost) of a dictated and typed letter, or less than 25 percent of the time of a letter directly typed by the originator.
   
   
10. Service-action form.
    Use a service-action form where internal action, such as adjusting the customer's account, preparing a refund, or reshipping merchandise, is called for. In one writing, such a form will both inform the customer and direct other departments to take the required internal action.
    
    
11. Recycling customer letters.
    Attach a note apologizing for the informality, respond on the customers' letters, and return them to the customer.
    
    
12. Postcards.
    Substitute these whenever possible. There is a savings here in both postage and stationery costs.
    
    
13. Acknowledgment cards.
    Don't send postcards telling customers that their letters have been received. The average customer doesn't appreciate a card reporting that the problem is being worked on-unless, of course, your operation is temporarily swamped and won't be able to answer for over three weeks.
    
    
14. Window envelopes.
    Use these to eliminate the addressing of envelopes.
    
    
15. Return envelopes.
    Enclose envelope addressed to your customer service department in correspondence when requesting return of material.
    
    Handwriting.
    Use it to fill in and address form replies. Typing involves additional time and money and isn't appreciated by the customer. Customers don't mind handwriting, as long as the form is friendly and appropriate. It shows customers that they are dealing with a person, not a computer.
    
    
16. Direct handling.
    Fill in and address in handwriting the form postcard or letter at the same time that the decision is made. Answering the customer should be a one-step process. Do not forward correspondence to another clerk for typing and then return for proofreading and signature. In fact, the letter should be folded and inserted in the window envelope, so as not to require any further handling except metering and posting.
    
    
17. Outgoing telephone.
    Utilize the telephone to respond to irate customers or to resolve complex problems. In the long run, it is less expensive than preparing, typing, and mailing a long involved letter. Further, the good will generated is simply amazing.
    
    
18. Files.
    Retain only correspondence from lawyers, including MLM lawyers, consumer advocates and governmental agencies or those involving downline changes, disputes, and major adjustments. If the company doesn't file correspondence, who should? The answer is the customer. Except for VIP letters, return all but the routine correspondence to the customer with the answer and, in the case of routine letters, they should be thrown away. Unless the customer is writing from an office, he or she rarely has kept a copy of the letter and will appreciate the original letter to compare with the company response. In the rare instance that a dispute arises, ask the customer to forward copies of the relevant documents.
    
    
19. Production records.
    Set simple work standards, by complexity of correspondence, and maintain records of each employee's output. The resulting increase in production will surprise you. To get even greater production increases, install an incentive program. The axiom is true:
    • When performance is measured, performance improves.
    • When performance is measured and reported, the rate of improvement accelerates.
    • When performance is measured, reported, and rewarded, the rate of improvement is optimized.
    
    
20. Workstations.
    Provide desktop storage arrangements for response forms, work in process, and research tools. Neatness is an important key to efficiency.
    
    
21. Categories of complaints.
    Eliminate the burden of continually tally-stroking the various types of complaints to track and report the causes of complaints. Instead, employ these alternative techniques: (a) tally-stroke problems only on a different day each week, thus obtaining a reliable sample; and/or (b) have representatives prepare a listing of unusual problems that would provide current feedback on what is going wrong (for example, a Hot Sheet for the employee to write notes in all week, then gathered on Fridays).
    
    
22. Powerful words.
    Use these seven powerful words to calm an aggravated customer and transform a telephone dialogue from diatribe to decorum. The magic words are listed below:
    
    
    "What would you like us to do?"
    
    Once this question is posed, the customer's attitude should change from anger to reasonableness. The problem can then be quickly and effectively resolved.
    
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