Customer service sucks! How many times have you heard that recently? No business can survive without customers for its products (goods or services). However, many companies ignore or underestimate this simple fact.
The customer is always right
Well, maybe not, however, meeting customer needs should be your top priority. If you don’t satisfy your customers, someone else will. The competition!
neglect customer
Many companies are now neglecting their customers as a business strategy. The cost of providing quality, personalized customer service is high. It usually requires prompt human intervention, whether in person, by phone, or electronically (for example, instant messaging).
Part of the prevailing strategy is to use customer service as a marketing tool. The longer they can keep you on the phone, the more announcements for additional products and services you’ll hear. Similarly, your account statement will include more ad insertions.
We’ve all heard the “horror stories” of customers stuck with endless phone menus, endless delays, or talking to call center representatives in foreign countries with limited English proficiency and/or inadequate training. Others report that they can’t even locate a business phone number, or locate a salesperson at a department store. Almost everyone has experienced firsthand these problems and others. Sure, the company manages to avoid some costs by employing the various practices of customer negligence and delay, but at what cost?
The 80/20 rule
Most have heard of the 80/20 Rule. The premise is that most human interactions are subject to certain proportional propensities. In other words, the minority of events have a disproportionately greater impact than the majority of events, by far. The rule, called Pareto’s Law, is named after a 19th-century Italian economist. When applied to business, the theoretical result is, for example: 20% of your customers buy 80% of your products. However, 20% of your sales contribute 80% of your profits. However, 20% of your customers make 80% of the complaints, while the remaining 80% complain fairly infrequently (the “satisfied” [or indifferent] customers). You understand.
Mindful of this general theory, companies have decided that it is not in their best interest to provide excellent and expensive customer service to everyone. After all, 80% (or 75%, or 90%, or whatever the actual percentage is) of your profits comes from a relatively small percentage of customers, and chances are they’re not the ones getting the money. complain. However, what if you are one of those people who really wants or needs a service?
Impact
In general, the service is so bad everywhere that the customer has little choice. You can move from one product to another or from one service or company to another. But there likely won’t be a service improvement because quality, timely, and knowledgeable customer service is a rarity these days. The client may also try to get satisfaction by trying to speak to a higher authority, ie “let me speak to your supervisor.” Even legal recourse or reporting to regulatory agencies is an increasingly used route.
“The Hall of Shame”
MSN Money conducted a survey (published 04/26/07) that identified the US companies with the worst customer service. Their study reported that Sprint-Nextel had the worst reputation, with Bank of America coming in second, followed by Comcast, Time-Warner Cable, AT&T, Citibank, WalMart, Verizon, Wells Fargo, and Direct TV. Subsequent studies have reported similar results, although major offenders have, in many cases, made significant efforts to improve the situation.
It should be noted that these companies would be expected to have more complaints as they are larger and have more customers. What really matters is the percentage of complaints in the total customer population.
Whether measured by anecdotal reports or survey data, it is clear that, overall, the deterioration in customer service has been rapid and widespread.
what should be done
Note that the header doesn’t say what can be done. Obviously, a lot can be done to improve customer service. However, minor fixes will not resolve the underlying issue. There are some fundamental paradigms that require changes. Here are examples of what needs to be done, and it requires a change in mindset and business philosophy.
–First, an appreciation for the customer (and recognition that they are valuable).
–Second, realize that “Total Quality” means the entire process, including sales and service.
–Third, respect for customers’ time, opinions and needs.
–Fourth, understanding that the customer can exercise their right to choose between various providers.
–Fifth, the recognition that negative customer feedback and feedback can destroy a company’s reputation.
—Sixth, the willingness to invest time and money in improving customer service.
–Seventh, an understanding that failing customer service will ultimately result in reduced sales and lower profits.
–Eighth, designation of executive level management with the responsibility and authority to oversee the customer service function and initiate improvements.
Finally…
The same companies that provide such inadequate customer service ironically demand the best performance from their suppliers and partners. A paradigm shift is required, one that takes into account the proven and moral business practices of the past. Without these attitude changes, specific improvements will not be implemented or implemented.
