±±¾©Èü³µpk10

There are three main reasons consumers call a brand's careline: they are loyal customers who feel so strongly about an action the brand has taken that they want to air their views; they are confused about the product or service and need advice; or they've had bad experiences and want to vent their anger.

Regardless of which camp they fall into, all these consumers are already predisposed to buying the brand. So even if they fall into the third category, there is still a chance that the phone call can be turned to the brand's advantage by reverting the callers to the loyal customers they had been.

According to Tarp, which has been researching customer care for the past 30 years, acquiring new customers is between two and 40 times more expensive than keeping existing customers, depending on industry sector. Its research also shows that if a customer complaint is dealt with effectively, that customer will become more loyal than they were in the first place.

The problem is that brands have the opportunity to respond to and measure only a small fraction of unsatisfied customers - Tarp estimates this to be about 5%. The majority of complaints are lost because customers complain directly to the retail outlet where they bought the brand or do not bother to complain at all. In both cases, the most likely outcome is that they will decide not to purchase it in future.

'A lot of companies are flying blind. They don't know what problems customers are experiencing,' says Tom Worth, Tarp's head of business development.

'Customer carelines are a positive investment, both for complaints and for areas such as product testing. It's mad not to get feedback on launches from customers who are using your product in real-life situations.'

Despite this potential, carelines are an under-recognised tool in a marketer's armoury, as they are commonly viewed as cost centres rather than profit centres that can add value. Some carelines exist simply to match those of competitors, without enough investment to make an impact on the business.

'Carelines were very popular in the 90s when everybody was talking about brand enhancement, but now they're spoken about less,' says Anne Marie Forsyth, chief executive of the Call Centre Association. 'But you could argue that a careline is a way to instil loyalty and has to be part of the overall brand strategy.'

Some brands are aware of the benefits carelines can bring. Heinz runs a careline through Navigator Customer Management. It is aimed at mothers wanting information on its weaning products and ploughs the information gathered back into the brand's business. 'We have a record of everyone who has contacted us and we can use data to help with special promotions, mailings and product launches,' says Alison Davenge, head of projects at Navigator.

By talking to customers, Heinz can flag up its membership clubs and websites and identify problems early on. For example, many customers called to ask why Farley's Follow-On Milk had been delisted. 'The product packaging had been changed and given a new product code, so store staff thought it had been delisted when it hadn't,' explains Davenge. 'We could quickly relay this back to the marketing department.'

There are plenty of similar examples: Unilever reintroduced Pond's skincare cream in January after 5800 calls were made to its careline; SC Johnson is adjusting its on-pack information after callers said they found the wording difficult to read; and a personal grooming brand launched a product for women after careline feedback showed that adding the tag 'for women as well' to the existing range was not appreciated by loyal male users.

Kellogg, meanwhile, calculates that its careline delivers a 13:1 return on investment by analysing the link between good call handling and the increase in its customer base.

The challenge for carelines is not only to handle calls effectively, but handle them in such a way that it differentiates their brands from rivals. Mike Havard, managing director of telemarketing consultancy CM Insight, believes brands have made little headway in bringing their brands to life in telephone conversations. 'When it comes to branding, very little has changed,' he says. 'I remember having conversations about it 10 years ago and I don't think we've moved on.'

Nevertheless, there are signs that brands are trying to rise to the challenge.

Many realise call handlers need to know what the company values are, not just from a written sheet of paper given to them on a two-hour training course, but from personal experience. For this reason, many carelines are run in-house, with handlers at the heart of the business. Health drink Yakult, whose strategy is based around educating consumers, has handled calls internally since its 1996 UK launch.

L'Oreal's careline, staffed by former hairdressers and skincare consultants, is based in its headquarters. It receives about 7500 calls a month and has close links with the marketing and scientific teams. 'The relationship with marketing is two-way,' says a L'Oreal spokeswoman. 'Marketing teams brief the department on individual products and brands, while the careline team is able to give marketing direct feedback.'

Outsourced care

This is not to say carelines cannot be run effectively by external agencies. But there must be close, easy contact between brand and agency. SC Johnson outsources its careline, but staff often say they feel they work for SC Johnson, not the agency they are employed by, because they have such close contact with the company's marketing department.

Procter & Gamble hires Broadsystem to handle its carelines for Ariel, Lenor, Bold, Bounty, Fairy, Head & Shoulders and Daz. Phil Coley, head of P&G's contact centre at the agency, believes client input is essential if agents are to give the impression the customer is calling the brand direct. 'We have products in the centres and lots of branding,' he says. 'We also work closely with clients in training agents about the brand.'

Putting brand values into telephone practice can be tricky. Felix as a brand is cheeky and mischievous, for example, but this doesn't mean that Nestle Purina wants the brand's call handlers to exhibit the same characteristics (see case study). Rather than crudely adopt brand values from advertising, carelines should aim to strike up an emotional connection with callers that will leave a lasting impression. Nestle Purina's call handlers may not be chattering mischievously, but their passion for pets should be evident.

According to Navigator's Davenge, 'emotional connectivity' and 'emotional congruence' are the latest buzzwords in carelines, imported from the US. 'It's about ensuring the staff understand that if they really want to portray a value, they have to believe in it themselves,' she says. 'If you can connect with the caller, you can provide better customer experience.'

Unilever's margarine brand Flora is a good example. 'You get a sense that you're talking to your mum,' says CM's Havard. 'You speak to someone who really wants to help you cook well, even if you're the most inept cook in the world.'

Not surprisingly, getting the right person for the job is expensive, and careline staff are typically paid much more than regular call agents in contact centres - another factor that has worked against the channel in the past. But many brands, especially those in the FMCG sector, are beginning to realise the extra cost is worthwhile. Consumers are asking more questions about what they're consuming, and, in the future, those brands that can give useful, truthful and sympathetic feedback will be the ones that thrive.

FLORA - The margarine brand's call handlers give even the most inept cooks tips on how to find their way around the kitchen.

BOLD - The detergent is one of several Procter & Gamble brands whose carelines have been outsourced to agency Broadsystem.

L'OREAL - Call handlers include ex-hairdressers and skincare consultants. They take 7500 calls a month and liaise with marketing and scientific teams.

Yakult - Has handled calls internally since the drink launched in the UK in 1996. Educating consumers is at the heart of its communication strategy.

KELLOGG - By comparing its customer base with its call handling, Kellogg estimates that its careline generates £13 for every £1 invested.

POND'S - The cosmetics brand's skincare cream was reintroduced by parent Unilever after 5800 people phoned its customer careline.

GLADE - SC Johnson is altering on-pack information after careline callers complained the information was difficult to read.

FARLEY'S - Responded quickly to consumers who called its careline thinking its Follow-On Milk had been delisted after a packaging revamp.

CARELINE - FACTS

According to customer-service research company Tarp, 50% of consumers will complain about a problem to a front-line representative.

- If the customer is out of pocket, complaint rates can be as high as 75%.

- Mistreatment, quality and incompetence problems have 5%-30% contact rates.

- For packaged goods or other small-ticket items, 96% of consumers either do not complain or complain to the retailer.

- Customers who complain and are then satisfied are up to 8% more loyal than if they had had no complaint.

- Customers whose problems are solved on first contact are up to 10% more loyal.

- Causes of dissatisfaction are: 20% employee actions, 40% corporate products and processes, 40% customer mistakes and incorrect assumptions.

CASE STUDY - NESTLE PURINA

Nestle Purina, whose brands include Felix and Winalot pet foods, has the corporate strapline 'Your pet, our passion'. The company's careline is handled in-house. A team of nine call handlers receives about 150,000 calls, emails or written queries a year.

Call handlers are located next to the brand marketers. 'We encourage the marketing team, the commercial team and the board directors to spend time at the careline and listen to calls,' says head of communications Mary Sharrock. 'How else are they going to know our consumer?'

The careline is seen as a valuable opportunity to gauge feedback on ad campaigns or product launches. 'We don't look at it as a cost centre,' Sharrock adds. 'We look at it as a relationship centre.' The careline welcomes all types of queries - even if not directly related to the products. Staff are even trained in bereavement counselling, as they sometimes deal with callers who have recently lost their pets.

'Hopefully pet owners will remember their conversation and hopefully we were able to help,' Sharrock says. 'Will that sell more products? Who's to say? It's not about that.'