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Rather than blaming a representative or a corporate culture when discussions with a company don’t go the customer’s way, perhaps there are specific things the customer can do to encourage representatives to help. Money Magazine polled its readers and talked to experts to determine the best tactics for receiving the best customer service from companies. Many shared specific strategies they’ve employed that have led to success, whether the goal was to pay less for cable service, avoid fees or upgrade with an airline, or receive repair on a product out of its warranty period.

Be nice. Most of the stories I’ve read about receiving poor customer service could have been avoided if the customer wasn’t confrontational from the start. Direct confrontation rarely produces any result. I’ve been on the receiving end of confrontational attitudes. If someone threatens me or is verbally abusive, there is no possibility of me going out of my way to help that person. I can see why a customer service representative would not be motivated to help anyone who didn’t approach the situation calmly. Money Magazine suggests using flattery to encourage a representative to help. If you’re likable, it is more probable that someone would want to help you.

TelephoneHint you will leave. Not every company is interested in keeping every customer. Bank of America’s proposal to enact $5 monthly debit card fees made this clear: some customers are expendable. While the bank eventually reversed its position after public outrage, the damage to reputation was done. Most companies, however, do not want to lose customers.

If you hint that you have other options available, some companies will transfer you to a different representative whose only goal is to keep you, and these employees often have the authority to negotiate with you. This is how cable television companies and internet service providers seem to operate. If you can get to the retention department, and sometimes you can get there just by asking, you can cut your cable bill and perhaps receive some free extras.

Don’t give up. While some companies are flexible with their policies, they make you work for it. Low-level customer service representatives often can’t make decisions on their own, but they do serve to wear customers down so they give up before they get in touch with someone else at the company, a supervisor for example, who is more likely to be authorized to negotiate with you or provide the service you’re looking for. Even by increasing your hold time from one minute to two minutes before you reach the first level of customer service, companies count on callers to give up before they speak to one person.

If you’re patient and persistent, and you insist on talking to someone who has the authority to work with you, you will be in a better position to receive satisfaction.

Use social media. More companies have presences on Twitter and Facebook, and they’re looking to do good publicly. For example, every time I’ve mentioned Comcast on Twitter in any sort of negative manner, I immediately receive a response from a company representative who actively monitors discussions for opportunities to help. When you take your issue public, a company is motivated to address your issue in the hopes that you will retract your statement or rave about how the company went out of its way to rectify the situation.

Critical blog posts or videos, when they gain attention, can be public relations nightmares for companies. A few years ago, United mishandled and broke a passenger’s guitar. The passenger recorded a video and song titled United Breaks Guitars, and it went viral. He received an offer from United to pay for the guitars — as well as an offer from a guitar company for two new guitars for a new video.

Know what you’re entitled to. First-line customer service representatives may not know all the details of your agreement, but if you do, you can suggest solutions that fall within the terms. When you’re approaching a company looking for resolution to an issue, ask for something specific that the representative can do. Most customers, if they ask for something specific, are unaware of the options available, and a customer service representative might not be aware. If he or she is aware, the representative might not volunteer the information. By knowing what options are available according to the policy, you have an advantage.

Offer a “complaint sandwich.” This is a psychological manipulation tactic, and it works. If you start your discussion with a positive comment, move to a discussion of the issue you’d like to resolve, and end again with a positive comment, you’re more likely to receive the results you want. In my experience, this strategy is called praise-suggestion-praise. You could start a discussion by saying how much you love being a customer of the company. It’s important to be sincere and genuine, and to quickly get to the core of the matter so you don’t waste the representative’s time. After explaining your issue, offer praise again, thanking the representative and remaining positive that the two parties can agree about a resolution.

Contact the executives. One tactic that has shown to work is the “executive email carpet bomb.” Email addresses of the CEO and other important executives are often easy to find. If a general search of the internet offers no results, you might be able to use the SEC’s own tools or Google Finance’s corporate listings to find the right email addresses. Send an effective complaint letter to all the executives on your list to increase your probability of getting a quick resolution.

Have you ever received great customer service? What approaches were successful for you?

Photo: asgw
Money Magazine

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Earlier this year, AT&T announced its plans to acquire T-Mobile, a plan that would change the landscape of wireless service in the United States and pave the way for an industry dominated by two large players: the new AT&T and Verizon Wireless. Today, the U.S. Justice Department stepped in, issuing a complaint to block the acquisition.

T-Mobile is currently a lower-cost option for wireless service, and the acquisition would most likely result in less competition and higher prices. Earlier this year, the Department of Justice blocked a merger between H&R Block and TaxAct, and the move was questioned when deals like the one between AT&T and T-Mobile were allowed to continue. As we can see now, the government is attempting to take the anti-duopoly approach across industries.

The Comcast acquisition of NBC was a different type of acquisition, and the Department of Justice did not seek to block it. The unified company can now control media from their creation to delivery, and this type of vertical integration seems to not be seen as anti-competitive, even though it could result in increased cost for the consumer and content exclusivity where none existed before. Deals like the one between AT&T and T-Mobile or between H&R Block and TaxAct take a marketplace and offer the consumer fewer choices.

Cell PhoneSprint, the distant fourth player in wireless, lobbied the Department of Justice to block the merger. While the block may be in the best interest of consumers, it’s definitely in the best interest of Sprint, likely to be pushed out of the market after the proposed acquisition. If the shoe were on the other foot, and AT&T were to buy Sprint, T-Mobile would be the company seeking to block the deal on behalf of consumers.

Consolidations and acquisitions can be good for the economy when there are major inefficiencies. Capitalists, for the most part, don’t want the government stepping in to block he progress of business and the growth of corporate empires. In theory, if one company gets so large that the consumer is left with poor choices, the market will eventually correct itself with new players willing to meet the neglected needs of the consumer. But when the cost of becoming a large enough presence in a market dominated by one or two companies is prohibitive, as it most likely is for offering cellular service due to the necessary infrastructure, blocking an acquisition might be a better solution than waiting a decade, a generation, or more for new competitors to re-shape the consumer landscape.

In its own words, the Department of Justice explains the decision:

The Department filed its lawsuit because we believe the combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services.

Consumers across the country, including those in rural areas and those with lower incomes, have benefitted from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to reap the benefits of that competition.

This isn’t the only acquisition of concern recently; Capital One was the winning bidder for ING Direct. Although the deal would make Capital One “only” the sixth largest bank in the United States when measured by deposits, the government and regulators are not taking this deal lightly, seeking more comments from the public.

Do you think the Department of Justice should block the AT&T acquisition of T-Mobile?

Photo: whiteafrican
Department of Justice

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Set-top boxes continuously run in homes who have them. Cable boxes, satellite boxes, and digital video recorders (DVRs) are designed to constantly remain on, even while no one in the household is home. According to the National Resources Defense Council, these devices cost $3 billion to run every year, and $2 billion of that cost is incurred while the boxes are not being used.

Part of the problem is the design of the boxes. Television providers want the ability to communicate with the boxes at any time, for example, to send software upgrades late at night when fewer people are watching television, and so they don’t encourage consumers to turn the boxes off. The boxes are also designed to take a long time to reboot and download programming guides, so powering down the boxes frequently could be a nuisance for customers who don’t want to wait before being able to tune into their favorite shows. Furthermore, for those with DVRs, shutting off the boxes might result in a missed recording.

Turning off the cable boxes — many households have more than one — is an easy way to reduce the power bill. The issue isn’t just affording to pay the bills, however.

In 2010, set-top boxes in the United States consumed approximately 27 billion kilowatt-hours of electricity, which is equivalent to the annual output of nine average (500 MW) coal-fired power plants. The electricity required to operate all U.S. boxes is equal to the annual household electricity consumption of the entire state of Maryland, results in 16 million metric tons of carbon dioxide emissions…

The average new cable high-definition digital video recorder (HD-DVR) consumes more than half the energy of an average new refrigerator and more than an average new flat-panel television. Even more troubling, when not displaying or recording video content, U.S. boxes draw nearly as much power as they do when in use.

The NRDC offers suggestions for manufacturers and television providers to improve energy consumption, but it could be worthwhile for consumers to get in the habit of removing the cable box from the power source on a regular basis. Turning the power off often just results in turning the clock display off with the device remaining on to communicate with the cable or satellite company and for programming to be available immediately when the box is turned on. Unplugging or shutting off power (via a wall switch) is the best way to ensure the box is not consuming any power.

For those who use the DVR to record programs while they are away — and DVRs consumer 40% more energy than boxes without recording technology — there are more ways to view programs you missed. Many content providers offer a wider selection of shows to be viewed at a later time (like Comcast’s “On Demand”), and networks offer full episodes to be streamed from network websites.

Photo: meddygarnet
National Resources Defense Council [pdf]

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The Department of Justice filed an anti-trust lawsuit against H&R Block. This second-largest income tax preparation service intended to acquire the company that owns third-largest income tax preparation service, TaxACT. Based on the number of customers who used these companies’ services to self-file 2010 tax returns, the combined company would still be a distant second to Intuit’s TurboTax. The new combined tax-filing service would be run by TaxACT’s management team, which is surprising considering H&R Block’s At Home product has more customers and is a more recognized brand.

According to the government agency, the proposed merger would result in too much consolidation in the marketplace, decreasing choices for consumers and increasing prices. Consumers’ interests are better served in a competitive marketplace, and the Department of Justice has the job of stepping in when a merger or acquisition would result in unfair competition. For a while, the DOJ has been quiet, allowing companies to consolidate, deferring to market forces. The DOJ didn’t act when AT&T planned to acquire T-Mobile, a deal that would create a duopoly among mobile phone service providers. The government also didn’t have a problem with Comcast’s purchase of NBC Universal, which put the full stream of television, from production to broadcast to delivery, in the hands of one company.

H&R Block responded to the government’s suit with claims that the merger would increase options for tax-filing customers.

CNN, H&R Block

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Live Sports: One More Reason to Get Rid of Cable

by Smithee

Among the more popular reasons for not ditching cable is the desire to watch live sports. ESPN is coming to the rescue of many future cable-less households by introducing live, streaming sports in HD through the Xbox. In order to benefit, you’ll need to be an Xbox Live Gold member, which is about $50 a ... Continue reading this article…

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Discounts Via Social Media: A Surprising Way to Save

by Kelly Whalen

This article is presented by Kelly Whalen, Consumerism Commentary staff writer. Kelly is celebrating her one-year blog anniversary this week. Everyone loves a good deal, but finding time to comparison shop at various stores can be time consuming. As a parent of four kids I’m not keen on taking the kids to multiple stores just ... Continue reading this article…

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Persistence Pays Off

by Kelly Whalen

This article is presented by Kelly Whalen, Consumerism Commentary staff writer. As consumers we often face situations that are both expensive and frustrating. These can be problems of our own doing, such as overdraft fees or closing of an inactive credit card, or problems that are caused by the company’s we are paying, like a ... Continue reading this article…

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How I Could Find $10,000 Per Year if Necessary

by Flexo

Recently, JLP discovered that if he needed to, he could “find” an extra $13,000 per year by cutting back some of his discretionary expenses. By eliminating beer, soda, and a number of other unnecessary but nice expenditures, the savings can add up quickly. (I’m a bit surprised that JLP spends $50 per month on beer. ... Continue reading this article…

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