Just recently a survey showed that computer suppliers had cut customer service. Waiting times on the telephone had gone up as had the number of un-solved customer problems while service personnel's knowledgeability and customer satisfaction had gone down. And this for a product which, unlike, say, margarine or even cars, suffers from serious useability issues. Even Dell, which made customer service its key competitive advantage, was now back with the pack.
But it is not just computer companies. Recently an acquaintance found a feather in a packet of spinach and, sure enough, the supplier had a customer service number. They were very friendly and said to take the opened package back to the supermarket for a replacement. Really an inadequate response. A manager for a high end line of products told me the other day that they make customers with problems pay for the freight back to the plant. She wondered why she got complaints!
These companies don't realize that a customer service call is an opportunity to show a customer how much he means to the company. Customers want their problems addressed quickly and efficiently and, if they receive an acknowledgement for the trouble they've gone to, they will be very pleased and buy from that company repeatedly. If they do not receive this service, they will never buy from the company again. In this case, the company will have to get a new customer to replace the one it has lost. If it keeps losing them through bad customer service, it will have to get several customers to replace the repeat business from one satisfied customer. It is generally much more expensive to obtain a new customer than it is to service an existing customer well. In the long run, poor customer service is costing these companies a lot of money.
Most large companies have to answer to their shareholders every quarter. They can cut customer service costs this quarter and worry about missing new orders next quarter or in a year when the lost customers don't buy. Small businesses can take a more long term view. Great customer service will keep their customers satisfied, the owner happy and save money in the long term.
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