Saturday, April 24, 2010

The Customer Service Commitment

It's a strange thing: Businesses know for a fact that it's more expensive to get new customers than to keep existing ones, as I've mentioned elsewhere. Businesses also know that there are certain things they need to do to keep customers. Isn't it reasonable to think that most businesses would commit to making Customer Service paramount? As we know from our last shopping trip or purchase-related phone call, many businesses simply do not get service right.

Why is this the case? Why do companies—large and small alike—spend so much money on marketing to potential customers while they place so much less emphasis on getting the Customer Experience right? I suspect there is not one answer to that question, but that there are many. Here are a few:

There isn't time to do everything right.
How much time did you spend last year trying to win new customers and, more importantly, recover from Customer Service complaints or dissatisfaction? Get it right the first time, build a loyal customer base, and take the time to think about the way customers see your business.

We can't train people; it's too expensive.
"What if we train them and they leave?" is the wrong question. "What if we don't train them and they stay?" is the right question. You don't necessarily have to provide expensive training, either. Work with your new and existing employees to help them understand what you expect from them in the way of Customer Service, and explain how this contributes to their own success as well as yours.

It's hard to get good help.
This may be true, but it also might be worth it to your business to keep looking. There are people who are looking for entry level positions who do get it, and who will work with you if you show them the way.

Before any of this can happen, though, you need to commit to good Customer Service, like Leon L. Bean did, backing up his boots with a 100% guarantee and having to put his money up after the first batch failed.*

Your company, however small, might wind up being legendary for the service you provide to your customers.

Give it some thought.

*Of the 100 pairs of his Maine Hunting Shoes that were ordered and sent, 90 were returned because the tops had separated from the bottoms. Rather than give up his fledgling enterprise, though, Bean honored his guarantee and then borrowed $400 to redesign and perfect his boots (Bean also perfected his guarantee, making it unconditional and, in fact, the essence of Bean's customer service culture through the present day).
Source.

3 comments:

  1. Great post Roy,

    I'd add one though, "It's hard to measure and pay for good service".

    A company needs to pay for what they want; when you pay employees on commission for the sales they make, or give them bonuses for sales made but you don't have compensation based on the quality of service, then you're headed for failure.

    Cheers
    Eric

    ReplyDelete
  2. Eric Jacques has left a new comment

    Great post Roy,

    I'd add one though, "It's hard to measure and pay for good service".

    A company needs to pay for what they want; when you pay employees on commission for the sales they make, or give them bonuses for sales made but you don't have compensation based on the quality of service, then you're headed for failure.

    Cheers
    Eric

    ReplyDelete
  3. Absolutely the case, Eric. That's why there needs to be a Customer Service commitment. every level of the business.

    My apology for having to post your comment - some strange malfunction in the Blogspot world.

    ReplyDelete