MAKE THE CUSTOMER FEEL SPECIAL–BECAUSE HE IS SPECIAL!


Customer Service stinks! How often have you heard that recently?
No business can survive without customers for its products (goods or services).
Yet many businesses ignore or shortchange this simple fact.

The Customer is Always Right

Well, maybe not, however, satisfying the customer needs to be your top priority.
If you don't satisfy your customers, someone else will. The competition!

Neglecting the Customer

Many businesses are now neglecting their customers as a business strategy. The cost of
providing quality, personalized customer service is high. It generally requires prompt
human intervention whether in-person, by telephone, or electronically (e.g., instant
messaging)..

Part of the prevailing strategy involves using customer service as a marketing tool. The
longer they can keep you on the phone the more advertisements for additional products
and services you will hear. Likewise, your billing statement will include more ad inserts.

We've all heard the "horror stories" of customers caught up in endless telephone menus,
interminable delays, or speaking with call-center representatives in foreign lands with
limited English proficiency and/or inadequate training. Others report an inability to even
locate a phone number for the company, or to locate a salesclerk in a department store.
Almost everyone has experienced first-hand these problems and others. Sure, the
company achieves some cost-avoidance by employing the various customer neglect and
delay practices, 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 has
disproportionately greater impact than the majority of events–by a longshot. The rule
was named after an eighteenth century Italian economist. And, when applied to business,
the theoretical outcome is, for example: 20% of your customers buy 80% of your goods.
Or, 20% of your sales contribute 80% of your profits. Or, 20% of your customers make
80% of the complaints, whereas the remaining 80% complain quite infrequently (the
"satisfied" [or indifferent] customers). You get the point.

Aware of this general theory, business have decided that it is not in the best interest of
their bottom-line to provide excellent and costly customer service to everyone. After all
80% (or 75%, or 90%, or whatever the real percentage is) of their profit comes from arelatively small percentage of customers, and chances are they are not the complainers.
However, what if you are one of those individuals who really wants, or needs, service?


Consequences

In general, service is so bad everywhere that the customer has few options. He can move
from one product to another or one service or company to another. But chances are there
will be no service improvement because quality, timely, knowledgeable customer service
is such a rarity these days. The customer can also try to gain satisfaction by trying to
speak with a higher authority i.e., "let me speak to your supervisor." Even legal recourse
or reports to regulatory agencies is an increasingly used avenue.

"The Hall of Shame"

MSN Money conducted a poll, (reported 4/26/07), that identified American 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 the top offenders have, in some cases,
made significant efforts to improve the situation.

It should be noted that these firms 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 population of customers.

Whether measured by anecdotal reports, or survey data, it is clear that, overall, the
deterioration in customer service has been rapid and pervasive.

What Should be Done

Notice that the heading doesn't say what can be done. Obviously much can be done to
improve customer service. However, minor fixes will not resolve the underlying
problem. There are some fundamental paradigms that require changing. Here are
examples of what should 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, realization that "Total Quality" means the entire process including sales and
service
--Third, respect for customers' time, opinions and needs
--Fourth, realization that the customer can exercise their right to choose between various
suppliers
--Fifth, acknowledgement that negative customer reactions and opinions can destroy a
firm's reputation
--Sixth, a willingness to invest time and money in improving customer service.--Seventh, an understanding that shortchanging 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 are providing such inadequate customer service, ironically,
demand top performance from their suppliers and partners. A paradigm shift is required,
one that harkens to the moral, time-tested business practices of yesterday. Without these
attitude changes specific improvements will not, and cannot be implemented.