How much does customer service matter?

I think there are a lot of reasons why customer service isn't always what you want it to be at larger companies. Some is certainly the costs involved that the companies don't want to pay. it ca cost a significant amount to staff a custmer service department and there's not much direct revenue coming in through customer service. Sadly companies don't see the indirect revenue it can bring or they simply can't record that number on a spreadsheet.

There are many companies thought that know you're not going anywhere even with the bad service so they provide the minimum they need to keep you. Then again there are companies like AOL who refused to terminante your service when you requested it. No matter what some people asked they refused to end your service. Hmm? I wonder why AOL has lost so many customers.

From the perspective of the customer service person there's not really much incentive for them to give good service. Most aren't paid well and probably not expecting a career answering the phones. When you don't expect to be working for the same company 6 months down the road you generally don't try quite as hard.

Another reason for the lack of incentive though is us, the people calling with the problem. Let's face it often when we call we're pretty much pissed off with the company and our only way to express our frustration is with a customer service person. That person did nothing to cause our frustration and probably can't do much to change corporate policy. Yet we sometimes take out our frustration on them. If you were that person what kind of service would you want to give to someone yelling at you for something that's out of your control.

With all this talk about horrible CS, I just needed to add this.

A few minutes ago, I just received an email from Tiger Direct. Yesterday, I received one that mentioned my recent purchase but listed an item I didn't buy. I never reported this error, just ignored it for the most part.

The email I got a few minutes ago apologized for the error, even though I did not bring it to their attention. They were not only sorry if this caused me any confusion, but included a private discount coupon for my next purchase just because they made the error. That's attention to detail for catching it on their own, and a good way to promote more sales.

I've always been satisfied with every purchase from them, but this was a proactive step of CS I thought would be a great addition to this thread, especially with the timing.

[deckeleven]

So much good stuff here.

Vangogh, I think you hit one of the problems with customer service right on the button. Most people who call are frustrated and angry and the poor person who answers the phone is the one who gets hit with all of that. On the other side of that coin, though, is the fact that the people who call have a legitimate reason to be mad, and many can be calmed down quite quickly if they are handled in the proper manner. That's why I'm thinking customer service training should also include some training in how to handle irate customers. Most people, if allowed to vent for a bit, will calm down. You will get some that just want to rant, but that's going to happen anywhere, and those people probably wouldn't be satisfied if you provided the best customer service in the world. That being said, I agree that being a CSR can be a taxing and frustrating job.

I also think one thing that a lot of companies fail at is giving their CSRs enough power to handle things. Nothing is more annoying than discussing a problem with a CSR who really has no power to help you. My thinking has always been hire smart people and then trust them to do the right thing and give them the power to make those decisions.

CBScreative also illustrated one of the biggest benefits of superior customer service. I bet that particular incident will get talked about a lot, and that you will go back there quite often when you need things in the future. I'd be interested to know, does Tiger Direct have a lot of commentary about customer service on their web site?

Originally Posted by Gunslingergirl

CBScreative also illustrated one of the biggest benefits of superior customer service. I bet that particular incident will get talked about a lot, and that you will go back there quite often when you need things in the future. I'd be interested to know, does Tiger Direct have a lot of commentary about customer service on their web site?

I've not really sought that out, but anyone can "claim" they have good CS. They do have a lot of helpful info like suggested add-ons (upselling yes, but helpful), related info to help make informed decisions (like how to decipher the specs and how to choose what best meets your needs), and reviews from other customers that can be useful.

Considering that companies like Dell, which used to be a good company, have flushed their reputation down the proverbial can, I like the fact that Tiger Direct builds their own systems in Ohio (they sell brand names too) and you can talk to a real person from the USA if you call.

OK, that's enough before you start thinking I have stock in the company or something. I've just always been happy in my dealings with them.

If you are not already familiar with them, their web address would be easy enough to guess, www.tigerdirect.com

I truly believe that it's a principle in life that we pay one way or the other for every decision we make. In this case, we can cut back on customer service and pay in terms of lost business, or we can pay to deliver good customer service and reap the rewards of more loyal customers.

[AffiliateHookup]

"We give the best customer service" or statements like that have become so cliche.

You see, marketing and slick campaigns are sexy. People like that. It pleases stockholders, or owners, because it makes people look like they are doing their jobs.

Customer service is not very sexy (unless you consider the customer service manager at another company I used to be affiliated with, but I digress). Chances are, the owners or stockholders never call them. They don't see the direct value, because it is not entered onto a spreadsheet.

Maybe, companies need to start considering customer service as part of marketing?

I recently began a policy that I don't think has hurt me any. We offer a one year warranty on air tools. This is normally a repair warranty, in other words, we send it out and have it fixed. I try to maintain loaner tools on some tools as a service. On others, I have taken to just replacing the tool with a new one. I then send out the inoperative tool, and when it returns fixed, I sell it as reconditioned. Generally, I recover my cost of the replaced tool. So, no money lost (usually), and a real commitment to service of my customers.

I always tell them that I want them to always be satisfied with everything they purchase from me, and if they are not, they need to talk to me so that we can fix the issue.

This is very good discussion!

[deckeleven]

In the companies I work for customer service is part of marketing. It wasn't really planned that way, it has just sort of evolved into that.

I have to agree that customer service isn't all that sexy (and darn it I don't have any digression to put here, now if we were talking about IT, but sadly we're not ) and you really can't put a slick brochure out about it, although some companies try.

I also definitely second the idea that "we have the best customer service" statements have become very cliche. I've actually considered banning that phrase and any associated phrases from our marketing pieces all together. In the end it doesn't matter what we say, it matters what we do. I write a blog for one of our companies and I've said that a million times. The only way you know if a company is a good company is by seeing what they do when you do business with them.

Anyone (o.k. not anyone, I like to think it takes talent ) can write a slick marketing piece saying how customer service really matters and customers are our first priority and all the blah blah that's been written a zillion times. What really matters is what the company does in their day to day interactions.

I'm really liking this discussion too.

Has anyone else read "Hug Your Customers" by Jack Mitchell? His entire business model is based on customer service. He's turned customer service into an art form.

[tyzai]

Originally Posted by Toolman

They don't see the direct value [of customer service], because it is not entered onto a spreadsheet.

Awesome summery. So many people think excel can run their business. Especially large companies it seems.

If Microsoft ever created a "good customer experience" equation, they would change the world over night.

[ntajou]

I seriously question that "wisdom" and the mentality that goes with it. If they would turn CS into a "real job" it would be better for everyone...Too many companies are relying on the numbers they can manipulate in a program, while they fail to understand and value their people and their customers.

Outsourcing CS to India because it looks good in the spreadsheet could be considered an epitome of corporate stupidity. It never ceases to amaze me how greed causes people to cast aside their common sense. Large companies run by smart people are doing very stupid things. I'm guessing it's because the people making these decisions are out of touch with the people they are supposed to be serving.

I work in customer service. As an internet support technician for a major cable company. I have worked in this area 10 years and I have seen great customer service and horrible. Follow me for a minute if you will:

Our internet division was a startup within the company. Our director decided that we would support what we could, however we could, however long it took, and if crediting someone's account a month or calling dispatch to expedite an appointment was required, we were authorized to do it. Act in the customer's interest first and if the customer was happy, or at least satisfied, by the end of the call, then it was a success. We were entrusted and empowered to do the job we were hired for.

Four years, the highest customer satisfaction rating of any division in the company, and one JD Power award for customer service later, our division was merged with another, larger division. Our director was fired. In came managers who didn't want to know our name, couldn't even bother to introduce themselves. We were given scripts, time limits, escalation parameters, monitoring, and told that management (including floor supervisors) would not take calls. We were to tell the customer we will have a supervisor call the customer back at a later unspecified time. If a customer wants a refund they are to be transfered to a different department. We are alotted 8 minutes per call. Doesn't matter if it's for a simple 10 second question or a little old person who has never used a computer before and barely speaks English. Eight minutes, no excuses, ever.

Guess where are customer service ratings are now?

Under our new managers we are treated like dispensible drones. Their job is to contain costs and process as many calls as possible in the least amount of time as possible because this is what management believes customer service is all about. The horrendous irony is that we are surrounded by motivation posters and given birthday cakes and all kinds of stuff but because it's not backed by action, all of it is taken for what it is: window dressing. At the end of the day you'll get a nice note because a customer wrote-in and said how helpful a representative was by taking time and making sure the customer was happy, but the end of the month you'll get a written warning because your call times were too high. Guess which of these two things the employee pays more attention to? The metrics are so illogical that while your time is considered as part of your performance, so is your courtesy to the customer and taking time to answer questions and be friendly. You'll get points off your call scores for rushing someone along too quickly. Damned if you do and damned if you don't, either way it's an excuse to keep your performance scores in the middle of the range and, therefore, make sure nobody exceeds the 3% median annual performance review raise.

Training? What training? Our trainers go over a few things (trainers who have never even done the job) and our techs are out on the floor in less than two days. The turnover in this business is astronomical. I'm amazed I've lasted this long though now I'm on anti-depressants, have gained 40 pounds, and keep a bottle of Xanax with me for my sudden panic attacks. I keep a go-box under my desk in anticipation of the day I finally just get up and leave or am fired. It's THAT stressful. Under the previous management all of this was managable because we were supported, our input was valued, and we were given freedom to execute our job because we were trusted to know how to do our job. None of us was entirely new. We had all come from similar positions. We didn't even have a supervisor until we asked for someone to take supervisor calls so we could focus on our job (in retrospect, a big mistake ). Now we have to ask permission to leave our desks to pee.

Part of the reason I'm starting my own business is because I am completely mystified that a Fortune 30 company can be where it is and be so entirely oblivious to how to actually manage customers. You'll ask why did we dump the manager who did so well? We were taken over by another division and they wanted their people in place. Once again, politics over performance, appearance over substance, and an MBA over experience.

Welcome to American customer service management as practiced by most of the country.