The 4-Hour Workweek, Expanded and Update - Timothy Ferriss [85]
Set up an account with the credit card processor first, for which you will need your own merchant account. This is critical, as the fulfillment house can only handle refunds and declined cards for transactions they process themselves through an outsourced credit card processor.
Optionally, set up an account with one of the call centers your new fulfillment center recommends. These will often have toll-free numbers you can use instead of purchasing your own. Look at the percentage split of online to phone orders during testing and consider carefully if the extra revenue from the latter is worth the hassle. It often isn’t. Those who call to order will generally order online if given no other option.
Before signing on with a call center, get several 800 numbers they answer for current clients and make test calls, asking difficult product-related questions and gauging sales abilities. Call each number at least three times (morning, afternoon, and evening) and note the make-or-break factor: wait time. The phone should be answered within three to four rings, and if you are put on hold, the shorter the wait the better. More than 15 seconds will result in too many abandoned calls and waste advertising dollars.
The Art of Undecision: Fewer Options = More Revenue
Companies go out of business when they make the wrong decisions or, just as important, make too many decisions. The latter creates complexity.
—MIKE MAPLES, cofounder of Motive Communications (IPO to $260 million market cap), founding executive of Tivoli (sold to IBM for $750 million), and investor in companies such as Digg.com
Joseph Sugarman is the marketing genius behind dozens of direct-response and retail successes, including the BluBlocker sunglasses phenomenon. Prior to his string of home runs on television (he sold 20,000 pairs of BluBlockers within 15 minutes of his first QVC appearance), his domain was print media, where he made millions and built an empire called JS&A Group. He was once recruited to design an advertisement for a manufacturer’s watch line. The manufacturer wanted to feature nine different watches in the ad, and Joe recommended featuring just one. The client insisted and Joe offered to do both and test them in the same issue of The Wall Street Journal. The result? The one-watch offer outsold the nine-watch offer 6-to-1.55
Henry Ford once said, referring to his Model-T, the bestselling car of all time,56 “The customer can have any color he wants, so long as it’s black.” He understood something that businesspeople seem to have forgotten: Serving the customer (“customer service”) is not becoming a personal concierge and catering to their every whim and want. Customer service is providing an excellent product at an acceptable price and solving legitimate problems (lost packages, replacements, refunds, etc.) in the fastest manner possible. That’s it.
The more options you offer the customer, the more indecision you create and the fewer orders you receive—it is a disservice all around. Furthermore, the more options you offer the customer, the more manufacturing and customer service burden you create for yourself.
The art of “undecision” refers to minimizing the number of decisions your customers can or need to make. Here are a few methods that I and other NR have used to reduce service overhead 20–80%:
Offer one or two purchase options (“basic” and “premium,” for example) and no more.
Do not offer multiple shipping options. Offer one fast method instead and charge a premium.
Do not offer overnight or expedited shipping (it is possible to refer them to a reseller who does, as is true with all of these points), as these shipping methods will produce hundreds of anxious phone calls.
Eliminate phone orders completely and direct all prospects to online ordering. This seems outrageous until you realize that success stories like Amazon.com have depended on it as a fundamental cost-saver to survive and thrive.
Do not offer international shipments. Spending 10 minutes per order filling