Sam Walton believes that customers have the power to dismiss any employee, including the chairman, by deciding to spend their money elsewhere. When reducing expenses, it is crucial to take into account the effectiveness of service. The aspect most likely to be negatively affected in terms of quality due to cost cutting is customer service. Ironically, customer service should receive more focus as it plays a vital role in staying competitive with other companies that are also cutting costs.
Customer service encompasses various tasks to guarantee customer contentment, such as offering a helpline for software concerns, providing on-site equipment servicing, and training new users. The goal of businesses is to be user-friendly and establish a reputation for being easily accessible in their customer service endeavors. Both the quality of their own customer service and that of their competitors are frequently assessed by companies. Exceptional customer service holds immeasurable value, whereas subpar customer service can result in measurable expenses.
Having inadequate customer service can be expensive because it may cause a customer to switch to another company after having a negative encounter with one of your representatives. Even if you provide new or improved services or products, it won’t be sufficient to regain the trust and loyalty of an unsatisfied customer. An illustration of this is the hassle-free return policy at Kragen Auto Parts stores. It is this type of customer-focused approach that guarantees I will keep selecting Kragen for all my automotive supply requirements.
Despite experiencing a significant number of returns to Kragen due to faulty or incorrect part numbers, I intend to remain a loyal customer for many years. This is mainly because they are willing to assist me with issues that are not their responsibility. Their willingness to go beyond their obligations transforms my inconvenient shopping experiences into pleasant visits to their store. This level of customer-centered thinking, rather than being solely focused on personal gain, exceeds my expectations and is invaluable to me. The value derived from this approach cannot be quantified.
I had a similar experience with my long distance provider. Originally, I was using Sprint’s long distance services. However, AT&T contacted me and offered a better rate. AT&T made enticing promises and was willing to switch my service at no cost or interruption. The Customer Service Representative from AT&T was very helpful and polite. About a week later, Sprint reached out to ask why I switched providers. I explained that AT&T had offered me better rates. The Sprint representative and I decided to conference call AT&T to clarify everything. Unfortunately, it turned out that one of AT&T’s representatives had deceived me.
Despite the promised rates and plan by AT&T not aligning with my account, they were actually higher than Sprint’s rates, which was unbelievable. AT&T’s actions deeply upset me. However, I am grateful that Sprint reached out and compared rates during a call with the other company. As a result, I now strongly recommend Sprint to all my loved ones for Long Distance Services and advise them to never trust AT&T.
How can either company quantify the impact of their Customer Service representatives on their profits? Word of mouth is the most effective and genuine form of advertising a company can have. By delivering exceptional or terrible Customer Service, a company can establish its reputation. Determining the worth of a front desk person with a friendly smile and pleasant personality is challenging. Essentially, having poor Customer Service incurs financial losses for a company, while excellent Customer Service is invaluable and cannot be compensated enough.
