Search: warranty

How to Receive Great Customer Service

This article was written by Flexo in Consumer. 12 comments.

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.

Hint 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

{ 12 comments }

American Express Credit Card Reviews

This article was written by Flexo in Credit. 1 comment.

American Express is consistently one of the highest rated credit card issuers. This could be because the customers are demographically different than average Visa and MasterCard customers. American Express customers are generally individuals and businesses with higher credit ratings, and they are more likely to make better financial decisions. Additionally, many American Express cards are charge cards. Charge cards don’t have associated interest rates, so every bill is due in full. As a result, American Express customers generally don’t buy what they can’t afford to pay back within 30 days.

In the J.D. Power and Associates 2011 credit card satisfaction survey, American Express received five out of five in all ratings categories: overall satisfaction, credit card terms, rewards, and benefits. This is the fifth consecutive year that AmEx has taken the highest honors. American Express also won the highest accolades from personal finance bloggers, taking home the Best Credit Card in the First Annual Plutus Awards last year, with the Blue from American Express card.

Here’s an overview of the major credit and charge cars from American Express and reviews for each.

The Platinum Card® from American Express is the flagship charge card, offering the best benefits American Express can offer. With this card, AmEx will reimburse the cardholder up to $200 in airline fees each year, including any fee from any airline. Members will be able to enter private lounge areas at airports to pass the time in comfort. When cardholders use AmEx’s travel services, they will benefit from free companion tickets. AmEx has a concierge available to tend to all customers’ needs. Businesses can receive similar features with the The Business Platinum Card® from American Express OPEN.

These benefits come at a significant cost. With an annual fee of $450, the Platinum Card is not for the faint of heart. The potential benefits could outweigh this annual fee, but this is a personal decision. This card would simply not be the best match for many consumers due to that annual fee.

Sitting in between the Platinum Cards and the regular Gold Card is the Premier Rewards Gold Card from American Express. New cardholders will receive 15,000 Membership Rewards points after spending $1,000 in the first three months of card membership. On purchases, you cardholders earn points quickly, with three points per dollar on airfare, two points per dollar on gas and groceries, one one point per dollar on all other purchases. These points can be used to fly anytime, anywhere, on any airline. Members receive exclusive access to buy tickets for popular events.

This card carries a $175 annual fee, much less than the Platinum Card, but the benefits are not as extensive. The annual fee is waived for the first year.

The American Express® Gold Card offers some of the same features as the Platinum card, but at a lower level. Today, this card offers a 10,000 Membership Rewards bonus when you spend $1,000 in your first three months of card membership. Benefits include 24-hour roadside assistance, and exclusive, early access to purchase tickets for events. With the business version, The NEW Business Gold Rewards Card® from American Express OPEN, you can earn points faster, get rewarded for what your business already spends.

Both versions of the charge card waive the annual fee for the first year. Thereafter the American Express Gold Card comes with an annual fee of $125, while the business version comes with an annual fee of $175.

For travelers that fly on Delta Airlines frequently, the Gold Delta SkyMiles® Credit Card from American Express is one of the best ways to earn relevant and valuable rewards. The introductory offer is up to 30,000 miles, which converts to $300 in Delta airfare. You can continue to earn miles at the rate of two miles per dollar spent on Delta flights and one mile per dollar for all other expenses. The Gold Delta SkyMiles card offers free checked bags on Delta flights for up to nine people in your reservation.

While the annual fee for this credit card is $95, American Express waives the fee for the first year.

For consumers with excellent credit, the Blue Cash Preferred from American Express offers one of the best cash back programs the issuer has to offer. After a $150 sign-up bonus after spending $1,000 within the first three months of card membership, earn 6% on supermarket purchases, 3% on gasoline and department store purchases, and 1% on everything else. This is the best cash back offer American Express has, and it is better than offers from many other issuers, as well.

The Blue Cash Preferred from American Express comes with a $75 annual fee, but you can eliminate this fee or even make more money by referring qualified customers to the card.

Consumers with good credit can consider the Blue Cash Everyday(SM) from American Express, offering consumers one of the best cash back programs the issuer has available. Earn 3% on supermarket purchases, 2% on gasoline and department store purchases, and 1% cash back on everything else as well as $100 cash back bonus after spending $1,000 in eligible purchases in the first three months. There are no spending thresholds to overcome before earning this cash back. Unlike the Gold and Platinum cards, Blue Cash Everyday is a credit card, so purchases are subject to interest fees if the bills are not paid in full.

There is no annual fee for being a member of Blue Cash Everyday.

The Blue Sky from American Express and the Blue Sky Preferred from American Express are credit cards, not charge cards, focused on travel rewards. With the Blue Sky card, spenders earn one point for every dollar spent on the card, but those points are about 33% more valuable than typical rewards programs. You need only 7,500 points to qualify for a $100 statement credit. The Blue Sky Preferred card has the additional feature of earning two points for ever dollar spent on hotels, dining and car rental purchases, as well as an annual $100 airline allowance to cover airline fees, like checked baggage.

The Blue Sky has no annual fee, and The Blue Sky Preferred Card comes with a $75 annual fee.

Without fail, the Starwood Preferred Guest® Credit Card from American Express is the readers’ favorite at Consumerism Commentary. This credit card currently features an introductory bonus of 25,000 Starpoints, receive 10,000 Starpoints after your first purchase and an additional 15,000 Starpoints when you spend $5,000 in six months. Starpoints can be used for free nights and hotels and free flights with many airlines (over 350). The business version of this card, the Starwood Preferred Guest Business Credit Card from American Express OPEN, offers the same features for small businesses and their owners.

The Starwood cards comes with a $65 annual fee, waived for the first year.

The TrueEarnings® Card from Costco and American Express is another favorite among Consumerism Commentary readers. There is no bonus offer with this credit card, but the cash back arrangement is solid. Approved applicants can immediately begin receiving cash back at the rates of 3% on gasoline purchases up to $3,000 (1% thereafter), 2% on restaurants and travel, and 1% on all other purchases, including purchases at Costco.

For Costco members in good standing, this credit card has no annual fee.

All the above American Express cards, both credit cards and charge cards, have the same security features, extended warranty benefits, and purchase protection.

This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

{ 1 comment }

Best Buy’s Buy Back Program

This article was written by Flexo in Consumer, Featured. 19 comments.

The consumer retailer Best Buy has found a way to lock customers into tighter relationships. The company’s rewards program may no longer the attraction it once was, so the company is introducing a benefit that will encourage shoppers to come back to the store. It also encourages the product upgrade philosophy, something that cell phone service providers have taken advantage for years. Consumers increasingly want the latest versions of everything. It may have slowed during the recession, but in general, Americans are willing to spend their disposable income on things, particularly technology, that becomes outdated very quickly.

Like Verizon’s “New Every Two” discount, Best Buy wants customers to upgrade their equipment frequently. The 42-inch LCD 60Hz HTDV was state-of-the-art and perfectly reasonable when I purchased it, but technology improves are increasing speed and frequency. Leaving the size of the television out of the picture, 120Hz gained popularity soon after I purchased the set. Technology shifted from cold cathode fluorescent lamps to LED for the screen’s backlight, saving more energy and providing a slightly better picture. Now the new televisions have incorporated 3D technology and offer 240Hz for non-3D content. Televisions also now come with apps and connect to the internet to stream movies from Netflix without a separate device. (Yet no television seems to come with a decent pair of speakers.)

I don’t know anyone who upgrades major electronic equipment as often as they upgrade cellphones, but Best Buy’s new Buy Back Program created an incentive for their customers to “trade up” at least every four years for televisions and at least two years for other electronic equipment covered by the program: mobile phones, laptops, netbooks, and tablets. The program works by trading in the equipment you purchased for a credit valued at a certain percentage of your purchase price, and that percentage is based on a time window.

From one month to six months after your purchase, you can return the product for a 50% credit of the purchase price.
Up to twelve months, the credit is 40%.
Up to eighteen months, the credit is 30%.
Up to twenty-four months, the credit is 20%.
For televisions only, up to forty-eight months, the credit is 10%.

Furthermore, when you return the equipment and trade it in for the credit, Best Buy will judge its condition. It must be rated “good” or “fair” to receive the full credit; if the product is in “poor” condition, the credit will be reduced by 50%.

This program is not automatic. You pay a fee to take advantage of this offer, and it’s not clear what the fee is from the materials I’ve reviewed so far. Like an extended warranty plan, Best Buy is counting on a certain percentage of customers paying the fee to join the Buy Back Program for their purchase and never trading in the product.

This could be a good way for people who are already addicted to technology and know they are going to upgrade their equipment within a few years, but that addiction never pays off in the end. If you have enough disposable income, all you really need to know is the cost of the program and whether you can get more for your money by selling your old equipment yourself. The fee is an important missing piece of information. Don’t forget that Best Buy’s prices are often, but not always, higher than other prices for the same product from retailers like Amazon.com and other online electronics dealers.

Personally, I won’t be joining this program. While I have upgraded my phone every two to three years recently, I don’t see the need to do the same for other technology that’s covered under Best Buy’s Buy Back Program. I don’t think it’s a good idea for someone who is not in the habit of replacing their equipment to buy the newest technology to start down that path.

Photo: gothopotam

{ 19 comments }

Do I Need Long-Term Care Insurance?

This article was written by Flexo in Insurance. 15 comments.

As I mentioned a few days ago, Consumerism Commentary is matching your charitable contributions. Please take this opportunity to give to your favorite charity. Here’s how to make your charity count twice.

I work for a financial services company (a situation soon to be rephrased in the past tense), and every once in a while, our businesses go on “road shows” selling their products to the employees, supposedly at reduced rates. This month’s product is long-term care insurance. This type of insurance pays for nursing homes and at-home care for people who are unable to care for themselves. I’m 34 years old, so I don’t foresee needing this type of care for a long time, if at all.

The Long Term Care Insurance National Advisory Center — an organization with an official sounding name, though I don’t trust their website without any official information about who they are — says, “By 2030 those needing LTC will skyrocket to 23+ million Americans, with projected, individual long term care costs reaching $300,000 annually per individual!” Even if there is some hyperbole here, inflation is always scarier when it’s applied to expenses.

That’s the risk with insurance: you spend your money now and over time, and you never need the service you purchased. This is why I don’t buy added warranty insurance when I buy electronic items — I rarely need to take advantage, but if I were to need, I’ll have self-insured well enough to handle the expense myself.

The best unbiased information I could find on long-term care insurance comes from a series of articles on CBS Moneywatch. I call this unbiased, but in a broader view, you can bet that any information coming from a financial publication is going to have advice falling in the direction of taking advantage of products offered by the financial industry. The analysis of pros and cons of a variety of methods of planning for long-term care seems fair.

From what I have seen, the cost of caring for an elderly individual with a condition such as Parkinson’s disease can deplete all of that individual’s wealth accumulated after a lifetime of working. The peace of mind gained from long-term care insurance — as long as the insurance does provide the benefits when needed — is worth the expense.

CBS Moneywatch

{ 15 comments }

Blue Cash from American Express Review

by Flexo

You may have noticed the high ranking for the Blue Cash® from American Express on our best cash back credit cards page. I own the business version of this credit card and use it for all of my business purchases and some bills. In terms of rewards, this card is one of the best around ... Continue reading this article…

3 comments Read the full article →

Make Sure You Really Want to Jailbreak Your iPhone

by Smithee

If you heard about it at all, you heard right: it’s no longer illegal to jailbreak your iPhone. That means you can install any app you want on it, regardless of whether it exists in the official App Store. But according to Apple, this will void your warranty, so proceed with caution. I’d recommend looking ... Continue reading this article…

6 comments Read the full article →

Save Money By Driving With Your Toe

by Smithee

“Hypermiling” is a word we use for doing everything you can to squeeze the best mileage possible from your car, including hardware modifications which may or may not void your warranty and certain driving techniques which may be both dangerous and illegal. You may have seen some of these tested on Mythbusters, such as driving ... Continue reading this article…

10 comments Read the full article →

How to Intelligently and Responsibly Buy a Car

by Flexo

Car companies want you to buy their products on impulse. They would, generally, prefer that the step of thinking is removed from the consumer’s process. This is evident in the commercials you see around the holidays in which a spouse is surprised when he or she notices a gift wrapped in a large red bow ... Continue reading this article…

4 comments Read the full article →