How Mediocre Customer Service Is Driving Your Customers Away

Some companies drive away loads of customers with one big move. Like that department store chain that got rid of coupons and sales promotions. Its base of cost-sensitive mom shoppers quickly fled to other stores

For most companies, losing customers is a slow, inexorable process, that looks more like this:

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What’s the cause? In many cases, it’s weak customer service. Most companies over-spend on customer acquisition and under-invest on keeping existing customers happy. The result is statistics like this from Forrester Research:

There are many reasons why your customer service may be leaving customers less than thrilled. Customers are more diverse than before, for one:
Technology has also made customers more independent – and demanding. They want to be served right here, right now. 
Problem is that most companies, even if they talk the multi-channel talk, fail to walk the walk. Beyond voice, they may have deployed 1-2 additional ways for their agents to deal with customers. Turns out, there are a dozen channels besides voice that your customer may want – nay, demand – to be able to reach you on. Also, companies trying to deploy new contact center channels will, how can I be polite about this, often do it BADLY.
Do these problems sound familiar at all? Are they ones you want to solve? If so, you might consider attending the next Avaya Customer Experience webinar, ‘Where Did All of my Customers Go (and How Do I Win Them Back?)’
Broadcasting this Thursday Nov. 7 at 11 am PT (2 pm ET), it features a mix of experts in this area, including:
– Sheila McGee-Smith, independent customer experience analyst;
– Tony Bridgewater, Executive General Manager, Technology & Products, for Australian system integrator, Salmat;
– Mark Wilson, CMO for Avaya;
– Jeanne Bliss, our moderator, who writes and consults on customer experience and is a former Chief Customer Officer at multiple companies; 
Attendees to the webinar get a print copy of the book, Managing the Customer Experience, mailed to them.

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What Smart Analysts Think About Microsoft's Lync Telephony Claims

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The big brains at UCStrategies had a very relevant podcast last week. Ten of the Unified Communication industry’s leading independent analysts weighed in on Microsoft’s recent claim that its Lync unified communications suite was “leading” in shipments of enterprise voice/telephony software.

Microsoft appears to be basing its claim on shipments of Lync voice, but doesn’t say much more. As a result, “there’s a lot of debate and discussion” about what Lync voice shipments actually mean, says UCStrategies analyst and podcast moderator Blair Pleasant. “Are they paid licenses, free licenses that customers get from enterprise CALs (client access licenses), (voice) seats actually being used and deployed, or (numbers) just out there because companies have Lync [suite]?”

One thing’s for sure: when you go by the tried-and-tested methodology of tracking the number of phone lines actually being deployed to users today, Microsoft isn’t on top according to any of the analyst firms. Indeed, according to one of the most respected market watchers, analyst Alan Weckel of the Dell ‘Oro Group, Avaya is actually number one in enterprise voice. My colleague Enzo Signore pointed this out in a blog several weeks ago – before the UCStrategies podcast.

There were too many opinions in UCStrategies’ 38-minute podcast to neatly summarize. Not all of them agreed with each other, of course. But here are the quotes that particularly stood out for me:

Blair Pleasant: “I personally have some issues with these numbers and what they mean…I don’t think it’s fair to say that Microsoft is a leader in enterprise voice at this point. Again, they’re doing gangbusters, but they’re still a niche player. And the companies I speak with aren’t rushing out to deploy Lync voice.

Marty Parker: “I think [Blair] you’re exactly right, that any claim like this should be greeted initially with some serious skepticism…Microsoft, pretty uniquely among the leaders, sells licenses far ahead of deployments. The number of licenses can be 2x or more what is actually being deployed. The deployment reports we’ve seen from a number of sources put Microsoft in the 5% range in terms of actual deployments for FY12. If you extrapolate from that 6-7% for FY13, and then double that, you get 13%…That is a number that wouldn’t stand up when someone goes out to use a rigorous approach to market share data. Maybe for shipments, but it doesn’t reflect reality on the ground.

Dave Michels: “I see a lot of firms deploying Lync. I don’t see a lot of firms deploying Lync voice…I also know from other observations that Microsoft is pretty shady about their numbers. A lot of other firms are very open. Microsoft is very secretive about this stuff. They don’t put a lot of detail behind this…It’s a whole different level of open-ness you don’t see with Microsoft.

Jim Burton: “When I was in debate in school, my Bible was a book called ‘Lying with Facts and Figures.’ I don’t think he [Microsoft blogger] lied, but the way he presented it was a bit of a misrepresentation, if you understood all of the facts.”

Roberta Fox: “It really wasn’t til late 2012 where Microsoft was considered for telephony or even desktop video. They really were not seen as reliable or credible telecom solutions from enterprise clients as replacements for their PBXes, due to concerns about reliability, availability and the feature set. Another interesting thought: there was very little interest in Lync for desktop video applications.”

I encourage you all to take a listen to this podcast.

Who's the Real Number One in Business Telephony?

The telephone is far from dead. You know who still loves to call people? Family members, close friends and…the Pope. No joke: 76-year-old Pope Francis has startled a quite a few strangers with a call from a Vatican landline in which he simply announces, “It’s the Pope.” It’s happened to enough people that the Corriere della Sera, a leading newspaper in my native Italy, published a front-page article offering tips on how to make small talk if His Holiness calls (tip #1: talk about soccer).

You know who else loves the telephone? Businesspeople. Unified Communications may be a diverse, ever-growing set of tools and technologies, but the channel that started it all still plays a central role. It’s why there’s a never-ending stream of articles advising how to schmooze colleagues on the phone, how to run your phone meetings, how to close sales deals on the phone, how to ace telephone job interviews, etc. The stakes are high, which is why telephony remains such a hotly-contested market.

Last week, Microsoft put out a blog claiming it is “now shipping more enterprise telephone lines than any other technology company in the world.” It was a bold claim. So bold that longtime industry expert, Eric Krapf of No Jitter, felt compelled to investigate. One respected market watcher, Infonetics’ Diane Myers, told Krapf that her own research – which shows Cisco and Avaya neck-and-neck far above other rivals in telephony – made her “struggle” with Microsoft’s claims. When Krapf confronted Microsoft’s spokespeople, they admitted that Redmond’s claim to have shipped the most telephony lines was based on different data, revenue. As anyone familiar with software bundling knows, revenue alone can paint a deceptive picture.

However, revenue COMBINED with other data CAN be illuminating. While Microsoft and Cisco bicker, they are ignoring what’s really going on in the voice market. According to the well-known telecom market research firm, the Dell’Oro Group, Avaya passed Cisco in Q2 this year in telephony according to two key metrics. First, powered by growth in our small and midsized UC solution, IP Office, the number of telephone lines Avaya shipped grew 10% quarter/quarter to 1.8 million, while Cisco’s slipped for the 3rd-straight quarter, according to Dell’Oro:

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Source: Dell’Oro Group

As a result, Avaya had a commanding lead of the global enterprise telephony market by revenue, both for Q2 2013:

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Actually, Avaya led Cisco by the same margin for all of calendar year 2012, too:


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How come Microsoft’s nowhere to be found? We asked Alan Weckel, Vice President, Enterprise Telephony & Ethernet Switch Market Research at Dell’Oro and author of the report, who “confirmed that Dell’Oro Group does track Microsoft in the report. While Dell’Oro group does not break out Microsoft call control directly, based on the size of the remaining market, Microsoft would not be amongst the largest vendors on the charts.”

Why is Avaya gaining telephone users and increasing sales revenue? For a number of reasons:

1)The rock-solid quality of our flagship Avaya Aura platform (read how billion-dollar real estate firm Forest City Enterprises virtualized Avaya Aura software onto VMware and cut costs and increased reliability);

2)The cutting-edge advances in the Aura platform, including the new Collaboration Environment platform to enable developers to quickly build communications apps, and the Avaya Messaging Service that finally brings texting into the enterprise world (and supports any vendor’s system, even Cisco);

3)The quality and cost-competitiveness of Avaya IP Office;

4)The increasing attractiveness of IP Office 9.0 to the fast-growing mid-market segment;

Importantly, we see many customers that use the Microsoft Lync solution for IM and presence turning to Avaya for voice. Rather than deploying Lync software all the way or integrating with Cisco, hundreds of enterprises are trusting the Avaya Client Applications (ACA) plug-in, which offers scalability, ‘Five 9s’ of high-availability, technical features such as open call control, protection for your other communication investments, and tight integration with our contact center solution, which happens to be number one in the market according to Gartner.

Related article: Avaya’s New Wireless LAN 9100 Mutes the Sucking Sound of Network Downtime

ACA is not a tactical solution, either. Providing a comprehensive, open alternative for customers who wish to avoid vendor lock-in is part of the Avaya long-term strategy. Simply put, we want to be the best Lync integrator in the industry.

Lync software undoubtedly excels at IM and presence. But as Cisco Collaboration chief Rowan Trollope pointed out last week, IM and presence are last decade’s news. The future is things like enterprise-friendly text messaging (like Avaya Messaging Service) and open collaboration platforms that let businesses pick the best technologies for their needs.

So when you’re thinking about your UC solution, don’t think it’s only about Lync software vs. Cisco vs. Avaya. The telephone isn’t going away anytime soon. And if telephony is important to your business, the right solution might very well be a combination of a Lync client and Avaya.

How to Give Your Business Apps Better People Skills

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Silos. Every businessperson claims to hate them, yet most businesses continue to operate in them, even in this communications-rich age.

One of the biggest reasons? The applications that we use for work haven’t caught up to the collaboration technology available all around us.

“You can’t have an agile business without agile IT, and you can’t have agile IT until your communications infrastructure is agile,” said Zeus Kerravala, the well-known ex-Yankee Group analyst during an webinar last week.

The experts on the Avaya-sponsored panel, who besides Kerravala included TMCnet publisher and editor-in-chief Rich Tehrani, Singapore business software developer Eutech’s CEO Dr. Hari Gunasingham and Avaya senior vice-president for collaboration, Gary E. Barnett, agreed that most businesspeople understand how non-communication-enabled legacy apps create and exacerbate silos. 

(Listen to a replay of the webinar or download the entire slide deck below.)

Indeed, better collaboration capabilities is their second highest priority, behind analytics, and ahead of crowd-pleasers such as mobile and cloud, according to Ventana Research:

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Indeed, they’re already dreaming about the collaboration capabilities they’d embed in their next-generation of apps:

Slide7.JPGThe struggle is that for most developers, communications remains a complex specialty field that they don’t know very well. To bring these features into their apps would require a huge investment in time and/or money.

“You can’t expect most developers to understand all of the nuances around telephony and communications,” said Kerravala.

Barnett compares the situation to the late 1990s, when Web developers used to building lightweight sites using HTML initially struggled to build rich retail and B2B sites that tapped databases and other back-end data sources. The arrival of Web application middleware such as Weblogic and Websphere greatly simplified things for Web developers.

Similarly, what’s needed today is a comprehensive middleware platform – not a set of individual APIs – that makes it easy for non-communications experts to embed communications features into their apps.

Avaya Aura Collaboration Environment, which was launched officially last week, is our attempt to fill this gap during a time of great demand. (Read InformationWeek’s take here).

Avaya already has a bunch of leading ISVs, including Esna Technologies, UserEvents Inc. and now Eutech using Collaboration Environment to accelerate their dev time.

Eutech recently built a mobile app for Middle East luxury retailer, Paris Galleries, embedded with voice and video conferencing features. Eutech’s team was able to do this despite, according to Gunasingham, “having zero knowledge of collaboration from a Unified Communications (UC) point of view.”

Eutech was able to build the app in slightly more than a week, compared to the months Gunasingham figures his team would have needed without Collaboration Environment.

That benefits the final end user, Paris Galleries, and its salespeople. Armed with mobile devices, they can now quickly call upon remote cosmetics and other experts when customers ask for them.

“Customers want to be pampered,” said Gunasingham. “If you want your customers to spend a few thousand dollars on impulse, it’s very important that their experience be excellent.”

Collaboration Environment is compatible with the Eclipse programming environment. “We very purposely chose Eclipse because we knew every app developer knows it,” said Barnett. 


CE also comes with a Collaboratory – a cloud-based area where they can quickly build and test apps. “Developers don’t need to build their on-site lab; with Collaboratory, they can be up and running within a day,” Barnett said.

Collaboratory “de-risks things for developers,” agrees Kerravala, who says some Avaya developer partners he has interviewed credit CE with cutting their development time from half a year to a few days.

Eutech’s Gunasingham concurs. CE “had a real benefit for us,” he said. “Without CE, we couldn’t have gotten into this field at all.”