2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution Online Dispute Resolution And Customer Support ODR2011 Jo DeMars President, DeMars & Associates, Ltd. NetNeutrals.com 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support DeMars & Associates, Ltd. Founded in 1988 Headquarters in Waukesha, WI Activities: Training, public policy forums, consulting, and dispute resolution program design and management We provide services to the following industries: Automotive Homebuilding e-Commerce Recreational Vehicles 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Current Dispute Resolution Programs Each program we design is custom tailored to meet the needs of the individual client B2B 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Online Dispute Resolution How NetNeutrals Emerged 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Client List eBay, Inc. Monaco Coach Corporation National RV Holdings, Inc. Winnebago Industries Thor Industries Coachmen Recreational Vehicle Company Freightliner Trucks Workhorse Custom Chassis Ford Motor Company PayPal Professional Warranty Corporation Residential Warranty Corporation 2-10 Home Buyers Warranty Big Dog Motorcycles Porsche Cars North America 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support ODR and Customer Support: Why? 1.Fast: Reduces Time / Number of Contacts to Get Resolution 2. Minimizes Negative Word of Mouth 3. Reduces Anger and Hostility 4. Provides Opportunity to Tailor Response to Individual Customer Increase Positive Word of Mouth Increase Intent to Repurchase/Return 5. Offers Opportunity for Independent, Third Party Mediation and Arbitration 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Who Is the Customer Care Alliance? Member Companies DeMars & Associates, Ltd. Innovative Dispute Resolution The Customer Care Alliance in Europe 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Who Is the Customer Care Alliance? Academic Partner 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Product excellence Product excellence Service supremacy Service supremacy Effective customer complaint management Effective customer complaint management Increased customer satisfaction Increased brand loyalty Increased positive/decreased negative word-of-mouth communications Decreased customer care costs Increased customer satisfaction Increased brand loyalty Increased positive/decreased negative word-of-mouth communications Decreased customer care costs ++= Improved product/ service quality Feedback on prevention Respond to individual customers Identify sources of dissatisfaction Conduct root cause analysis Customer Care Alliance Customer Satisfaction Brand Loyalty Formula 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Spring, 2003 First US National Customer Rage survey Fall, 2003 Channel Surfing survey (US) Winter, 2003 First UK Customer Rage survey Spring, 2004 Do Not Call survey (US) November, 2004 Second US National Customer Rage survey January, 2005 Second UK Customer Rage survey October, 2005 Second Do Not Call survey (US) November, 2005 Third US National Customer Rage survey December, 2005 The Art of an Apology survey (US) June, 2006 Conventional Wisdom of Customer Care survey (US) April, 2007 First US National Hispanic Customer Rage survey Summer, 2007 Fourth US National Customer Rage survey & Third UK Customer Rage survey In collaboration with Visit 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support WSJ Article, Sept. 17, = 32% (White House Study) 2003 = 45% (Customer Care Alliance Study) Percent of households who reported at least one serious problem in the past year with a product or service. 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Impact of Ping-Ponging on Satisfaction with Action Taken When complaining, how many contacts did you make in an attempt to resolve this problem? Which of the following statements best describes how satisfied you were with the action taken to resolve your problem? % satisfied with action taken (Very Satisfied, Satisfied) (19%)(22%)(59%) 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Impact of Response Time on Satisfaction with Action Taken Approximately how long did it take for your problem to be resolved? Which of the following statements best describes how satisfied you were with the action taken to resolve your problem? % satisfied with action taken (Satisfied, Very Satisfied) 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Automotive Customer Handling 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support ODR and Customer Support: Why? 1.Fast: Reduces Time / Number of Contacts to Get Resolution 2. Minimizes Negative Word of Mouth 3. Reduces Anger and Hostility 4. Provides Opportunity to Tailor Response to Individual Customer Increase Positive Word of Mouth Increase Intent to Repurchase/Return 5. Offers Opportunity for Independent, Third Party Mediation and Arbitration 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Satisfaction with action taken = = Very Satisfied/ Satisfied Mollified Dissatisfied Very Dissatisfied = Nothing 2% 18% 79% What customer got/ % satisfaction with action taken Level of Satisfaction: No Action is Taken Source: 2007 National Customer Rage survey 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Satisfaction with action taken = = Very Satisfied/ Satisfied Mollified Dissatisfied Very Dissatisfied = Nothing 2% 18% 33% 58% Apology 31% 53% 79%10%17% What customer got/ % satisfaction with action taken 28% Explanation 53% 20% Chance to vent Assurance 33% 61% 6% Thanks for business 38% 52% 10% Level of Satisfaction: No Action But Non-Monetary Action is Included Source: 2007 National Customer Rage survey 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Satisfaction with action taken (% complainants) = = Very Satisfied Satisfied (18%) Mollified (36%) 60% 16% % Recommend company (top 2 boxes) * Average number told about problem Dissatisfied Very Dissatisfied (47%) = 4% 18.5 Based on definitely and probably would recommend offending company to a friend or colleague Source: Aggregated results of National Customer Rage surveys Complainant Management In The New Millennium: Necessary Evil or Marketing Asset? 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support ODR and Customer Support: Why? 1.Fast: Reduces Time / Number of Contacts to Get Resolution 2. Minimizes Negative Word of Mouth 3. Reduces Anger and Hostility 4. Provides Opportunity to Tailor Response to Individual Customer Increase Positive Word of Mouth Increase Intent to Repurchase/Return 5. Offers Opportunity for Independent, Third Party Mediation and Arbitration 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Customer Rage: How Upset Were You? Customer Rage % problem respondents upset about their most serious problem 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support * Based on problem respondents who complained about their most serious problem Complainants: Remedy They Wanted, What They Got 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support 60% of ALL complainants felt that they got NOTHING Source: 2007 National Customer Rage survey 69% of automotive complainants got nothing Complainant Satisfaction: Its Not a Typical Experience 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Source: 2007 National Customer Rage survey Customer Rage: How Did You Express Your Rage? 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support You Cant Always Get What You Want Source: 2007 National Customer Rage survey Psychological Currency XXXXXXXXXX 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support The Customer Care Alliance Research Key Findings 5 Things Customers Want: 1. Tell their story 2. Explanation 3. Reassurance 4. Apology 5. Thanks for business. 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support ODR and Customer Support: Why? 1.Fast: Reduces Time / Number of Contacts to Get Resolution 2. Minimizes Negative Word of Mouth 3. Reduces Anger and Hostility 4. Provides Opportunity to Tailor Response to Individual Customer Increase Positive Word of Mouth Increase Intent to Repurchase/Return 5. Offers Opportunity for Independent, Third Party Mediation and Arbitration 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support % complainants 43% 22% 1% 13% 21% White House Study * Response category not included in White House Study Complainant Satisfaction, Spanish-speaker Source: First US National Hispanic Customer Rage survey & 2007 National Customer Rage survey 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Satisfaction With Action Taken (% complainants) = = Very Satisfied Satisfied (19%) Mollified (26%) 43% 20% Shared VERY POSITIVE Information Dissatisfied Very Dissatisfied (55%) = 18% Shared VERY NEGATIVE Information 0% 20% Shared BALANCED Information 18% 21% 20% 41% 14% 30% Shared SOMEWHAT POSITIVE Information 7% Shared SOMEWHAT NEGATIVE Information 21% 10% 16% + - Source: First US National Hispanic Customer Rage survey, 2006 Word of Mouth: Is it Really Created Equal Spanish-speakers 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Satisfaction With Action Taken (% complainants) = = (TOP 2 BOXES) Satisfied (12%) (SECOND 2 BOXES) Mollified (33%) 21% 1% Shared VERY POSITIVE Information (BOTTOM 2 BOXES) Dissatisfied (55%) = 4% Shared VERY NEGATIVE Information 50% 34% Shared BALANCED Information 16% 0% 25% 56% 25% 10% Shared SOMEWHAT POSITIVE Information 2% Shared SOMEWHAT NEGATIVE Information 4% 29% 22% + - Source: 2007 National Customer Rage survey Word of Mouth: Is It Really Created Equal? English-speakers 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Sales Benefits Of Making It Easy For Spanish-Speakers To Communicate In Spanish % respondents Source: First US National Hispanic Customer Rage survey, 2006 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Money: $1 coupon toward next purchase Number of non-monetary remedies (explanation, vent, reassurance, apology, thanks) % satisfied with action taken Impact Of Monetary + Non-monetary Remedies On Contactor Satisfaction Can Money Buy You Love? Source: CCMC Industry-specific Data 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Source: 2003 Channel Surfing Survey The Multi-channel Imperative Channel Use = Channel Preference 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Source:2003 Channel Surfing survey &Automated Telephone System 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Source: 2005 Conventional Wisdom Survey & CCMC Industry-specific data 1.Resolution of all issues 2.Explanations 3.Referral assistancePersonalization 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Source: 2005 Conventional Wisdom survey 1.Have clarity of purpose 2.Maintain customer focus 3.Actively promote 4.Prevent/manage failures 5.Offer choices 6.Continuous improvement Automated Telephone System 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support ODR and Customer Support: Why? 1.Fast: Reduces Time / Number of Contacts to Get Resolution 2. Minimizes Negative Word of Mouth 3. Reduces Anger and Hostility 4. Provides Opportunity to Tailor Response to Individual Customer Increase Positive Word of Mouth Increase Intent to Repurchase/Return 5. Offers Opportunity for Independent, Third Party Mediation and Arbitration 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Dealership Contact Service Follow up Contact with Manufacturer Dispute Resolution Litigation Prevention Litigation CO$T WORKLOAD DISSATISFACTION What Happens When Disputes Escalate 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support % complainants Result: More likely to file 3 rd party complaints and take legal action Top two reasons for difficulties complaining in Spanish? 1.The option to communicate in Spanish was not provided 2.The person I spoke to did not demonstrate cultural sensitivity Ease Of Complaining In Language of Choice (Spanish) Source: First US National Hispanic Customer Rage survey, 2006 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Managing Communication with the Parties Altering Your Approach Authenticating Users Security & Confidentiality Some ODR Design Factors 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Researching & Talking with eBay eBay explained communitys concerns (extortion) eBay provided examples of negative feedback NN researched eBay, eBay Motors, Community, etc. Development 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Things to Consider How much can parties submit? Should we allow attachments? Will a party be able to log in later to see the status of the claim? Should each party get the opportunity to rebut? How do we handle payment? What is a reasonable number of attempts to contact the respondent? How do we transfer the outcome to eBay? 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Based on our understanding of the needs and our expertise in dispute resolution program design, we designed the process flow below. Designing the Process Flow 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Authenticating Users Handling Payment Gathering Data Communicating with the Parties Writing the Text Making the Site: User Friendly (pop ups) Visually Appealing Clear Designing the Appearance & Functionality of the Site 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support ODR and Customer Support: Why? 1.Fast: Reduces Time / Number of Contacts to Get Resolution 2. Minimizes Negative Word of Mouth 3. Reduces Anger and Hostility 4. Provides Opportunity to Tailor Response to Individual Customer Increase Positive Word of Mouth Increase Intent to Repurchase/Return 5. Offers Opportunity for Independent, Third Party Mediation and Arbitration 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support Wrapping Up and Q & A 2011 DeMars & Associates, Ltd. DeMars & Associates, Ltd. Innovative Dispute Resolution ODR and Customer Support For more information Jo DeMars NetNeutrals.com/DeMars & Associates, Ltd.