Sunday, June 2, 2013

How to Piss off Your Customers – Ebay Edition



Let me state to begin with:  I don’t think Ebay is a trash-bin company.  It is fairly evident, however, that their senior management is significantly lacking in intelligence.  Or it may be that their intelligence is aimed in the wrong direction.

Most senior management, of virtually any company, seems to forget that if your customers are happy, you make money.  Conversely, if your customers are not happy with you, you won’t make much money.  Although it is right and true that companies are in business to make money, you have to question the prevailing attitude that management should scramble desperately after every rolling penny.  

‘Leaning’ a company (taking out the waste) is a praiseworthy endeavor, but focus should be correct.  Companies examine their processes, look to where they can cut workers.  At no point do they look at their management structure to see how efficient that is.  Management is expensive and it produces no product.  Senior management is even more expensive.

Before I get too far off point, the one area where massive mistakes have been made by virtually all companies is Customer Service.  

Despite the drooling lemming-like behavior exhibited by most people when confronted with marketing, Customer Service is the company’s actual face turned toward the customer.  This is what the customer remembers rather than the emails he keeps hitting delete about.  Let’s face it, after years of marketing, people pretty much have figured out that they are being lied to.  It doesn’t take too many shoddy products to make a customer depart.  Most companies seem to believe that while they will lose a few customers, there are many more out there to deceive and make money from.  Unfortunately for that type of mental deficiency, the pool of the unwary grows smaller every day, mostly due to the internet.  Eventually everyone on earth will know how to search for ‘Your company name+problems’.

Unfortunately Ebay has areas where it exhibits great idiocy.  Fortunately they’re not like AT&T and actually have instituted changes that help their customers, rather helping themselves to their customer’s wallets.  For example, making shipping easier by interfacing directly to UPS, USPS, etc and especially their global shipping program, actually helps sellers.  Their fee structure, however, which increases the cost of shipping and assures that small sellers subsidize the large sellers, unfairly burdens buyers and small sellers.

One area where Ebay has bought into idiocy is Customer Service.  Virtually all companies believe (at the present time) that Customer Service is a money-sink and must be reduced.  To have people on the phone helping customers without generating revenue, seems to be a losing proposition.  This relates to how managers think too short.  While customer service does not directly generate revenue, a good customer service ‘face’ will generate more customers and maintain repeat customers.  However, most management is not that diligent to dig into the numbers to find that out.  Management likes to look busy, but they abhor deep thought and hard work.

Ebay does its part to reduce customer service expenses by making it difficult to get answers.  While they do have an extensive online help, if you have a question about something more complicated than ‘How do I leave feedback?’ or ‘How do I end a listing?’, you won’t find it.  An expedient thing to do would be to update your online help every time a question gets answered by your customer service.  This would eventually build a pretty comprehensive database.  There is no evidence that Ebay has even thought of this.  

This was the situation I was in.  I sold an item and had listed it as being shipped by UPS.  The customer only had a P.O.Box address.  I know enough to realize that UPS can’t ship to P.O.Boxes, so I began to look for ways to change the shipping method.  If I ship by USPS, I remain on Ebay and get a small discount.  If I ship by UPS, I am sent to the Paypal site.  In my mind this has had to have happened before, so I searched Ebay help.  The search on Ebay help leaves a lot to be desired.  I was presented with a list of items that were not even close.  Now I have a dilemma.  To get a discount on final value fees and listing fees, I’m supposed to ship within one day of payment.  Ebay has forums, but forums are a hit-or-miss affair.  You wait to see if someone answers you and if you can trust their answer.  With only one day to deal with, I needed an answer now.  So I jumped through the hoops to contact Ebay Customer Support by phone.  Ebay has modified the phone contact so that you don’t have to search and find a subject before they allow you to get a customer support ticket number and  phone number.  I get my number and call and I get through quickly.  Having to punch in a 7 or 8 digit ticket number is a bit of a hassle, but at least the voice response system is only one layer deep.
I get to a Customer Support Representative quickly and state my case.  He’s eager to help me, listens to everything I say and tries.  The problem is a) He is either untrained on how to search his expert system or b) the expert system is not complete.  He has to run off to ask the question.  The problem is, and I found this out later, he gives me the wrong answer.  He tells me there is no way to change the shipping method and the only thing I can do is to go directly to the USPS site to ship.  This is what this solution does for me:  First I have to go to the USPS site and enter all the information.  Then I pay a higher price.  Then I have to go back to Ebay and enter the tracking information.  If I could stay on the Ebay site, all information would already be there, they would forward the tracking information and all I’d have to do is print the label.  

I tell him I realize it’s not his fault, but thanks for nothing.  I do tell him to inform someone that this type of situation can arise where shippers have to be changed.  I know why Ebay makes it impossible to change shippers.  They believe they are saving the buyer from being switched to a cheaper, longer time shipment by unscrupulous sellers.  The main problem here is the most unscrupulous sellers are the big guys that Ebay panders to.  If you don’t believe me, look for the sellers with the most ridiculously high shipping rates and you’ll find that they are big sellers.

Now, in case you did not know, Ebay and Paypal are the same company.  They are joined like Siamese twins.  And here is where I found the information I was given was wrong.  I went to ship the item to see if there was somewhere else I could change shippers.  I was transferred to the Paypal site and after logging in, I easily found a drop-down box where I could change from UPS to USPS.  While I was embarrassed at my own stupidity, I was more irritated that Ebay could not tell me that information.

Why couldn’t the Ebay customer service representative tell me this small piece of information?  It really comes down, again, to bad management.  If the customer service rep had not gone off to ask a question, I would have attributed it to just one rep who might have forgotten.  However, now having dealt with not just first line, but the second reference line, I can probably state that some senior manager somewhere decided to save money by making sure the customer service people only received minimal training.  

There will always be problem employees.  Too many of them.  However, management should be bright enough not to blame employees as a knee-jerk reaction.  Ninety percent of the problems I have seen in business have been the direct result of bad management decisions.  One of the best quotes I’ve ever heard, and this was from a minister, is that ‘Thinking should be the loudest sound in your business.’  

Now imagine what the boardroom of AT&T sounds like.  You can take it from there.