What’s the true cost of poor customer service? If you’re looking for some equation to help determine how much you’re losing by poor customer service – good luck. In fact – if anyone spouts out a magic equation that gives you the answer to how much you’re losing via negative impacts of poor customer – I call BS. Businesses (and customers) are like snowflakes – everyone is different.
This isn’t 1985 anymore, folks. The sharing of information (and complaints) occurs at a much faster pace than it was 30-years ago – or even 3 years ago. People flock to Twitter, Facebook and other social media – to share poor customer experiences sometimes more often than great customer experiences. Great customer service matters. It matters to your repeat business, it matters to your brand loyalty, and it matters to your bottom line!
Now, though no two customers or organizations are the same, the negative impacts of poor customer service can be similar. For every customer you lose due to poor customer service, you also lose new customers they could have referred to you, damage to your reputation and brand loyalty. This will further negatively impact your performance and profits. Do the math based on your business model. What are some ways to prevent poor customer service?
Poor customer service leads to loss of new customers, damage to reputation, increased employee turnover, and reduction in revenues. Customer acquisition isn’t cheap – customer retention is a better way to go. So though businesses (and customers) are like snowflakes – everyone is different – asking yourself these difficult questions and taking actions on the answers is a helpful common starting point for improvement.
About Scott Span, MSOD: is CEO & Lead Consultant of Tolero Solutions – an Organizational Improvement & Strategy firm. He helps clients in facilitating sustainable growth by connecting and maximizing people –> performance –> profit™, creating organizations that are more responsive, productive and profitable.
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