Bultema: "the repersonalization of service." (cutting back on customer service) (Industry Trend or Event)

Will customer loyalty suffer if software companies begin to cut back on "personal" service and support? Not necessarily, argues Patrick Bultema, a leading customer service expert. "There's a fear that technology-based solutions will depersonalize our relationship with customers. And that's a legitimate concern. But the truth is, customer support has already been depersonalized. The current model has pretty much hit bottom."

In fact, says Bultema, he's convinced that the migration to electronic support can have the opposite effect--a "repersonalization" of service. "In the end, what the customer wants is to be known," he says. "I grew up in a small town with one little store. When I walked into the store they knew my name, they could talk with me about the last time I was in the store and what kind of soda I ordered. It's really this kind of knowledge and this communication with the customer that is the foundation of personalization."

Electronic systems are often better than human beings at knowing customers, Bultema adds. "But one of the things that really concerns me is that we can't just apply new technology to old ways of doing business. The problem isn't how to make the Internet replace the telephone. The real challenge is to discover new approaches, new visions, new models." Bultema recently shared a few observations on "what personalization is really about":

* On the economics of large call centers: "Customers aren't stupid: They've caught on to the fact that there may be thousands of people answering the phones, and they're going to have to start all over again if they call back. We'd all like to capture more information to further personalize our interactions with customers. But the truth is, we can't afford to do it. And there's no going back to a time when we knew every customer."

* On customer loyalty to a computer-based system: "I find so much religion and passion about being a customer at amazon.com [a well-known Web-based bookstore]. It's the same way people talk euphorically about their corner store. There's this sense that it's my bookstore and they know exactly what I want. The irony is, very few people have ever talked with anyone at amazon.com. One of my friends had a problem with an order and called them on the phone. It was a disaster--the computer systems were completely disconnected from their human-based systems."

* On Broderbund's approach to online tech support: "Instead of trying to get rid of live customer calls with electronic support, Broderbund actually created a Web interface that is focused on their customers. If you have a problem with Carmen Sandiego, the online knowledgebase system looks like you're playing the game, hunting for clues. There's way more entertainment value for Broderbund's home entertainment customers than getting on the phone with someone."

* On disseminating customer information: "Most of us have a customer management system, which stores information we should know to be customer-focused. Yet so many people never use the customer management system. So we need to create subscribe-and-publish models around this information. If a high-value customer calls for support, wouldn't it be good to identify who ought to get information on this event? We should be driving information into every part of the organization that needs to know about the experiences of our customers."

* On convincing customers to try automated systems: Customers need options, and they need to be drawn to the electronic options because these provide more value and personalization than the more expensive live options. A couple of years ago I did some research on the adoption of automated teller machines in banks. I asked what was the most important thing that banks did to encourage the diffusion of this technology. The answer? The amount of money spent on customer education."

Patrick Bultema, president, The Bultema Company, 17960 New London Rd., Monument, Col. 80132; 719/488-3983. E-mail: [e-mail]