Wednesday, November 24, 2010

Business experts remind us how poor customer service impacts the bottomline




NATCHITOCHES, LA - Carol Forsloff -The Better Business Bureau tells us in this recession the worst thing a company can do for its business is not to concentrate on good customer service, because it is the most important thing that can impact the bottom line.

One of the issues customers complain about the most is the fact that machines answer telephones and customer service appears more and more distant.  The Better Business Bureau says people really want better service, and maybe that's what it means when customers turn away and turn to online services instead.  Or get angry and don't return.


Poor customer service is said to create poor business relationships, and so it is accented. But does it happen? The monolithic cell phone business is a sterling example of an industry reported to have problems with billing errors and customer service. According to the Better Business Bureau and AARP, that have reported on this matter, statistics revealed more than three years ago cell phone service and supplies is the most complained about business in the United States.

Complaints are numerous against cell phone companies, across the major carriers.  The turnover of service personnel is also great.  This can mean trouble for individuals who may not clearly know the rules and be able to explain them to customers. Details about special fees and charges may not be explained.  Setup of phone service and bills may present the first problems. With either problem, getting phone function or bill paying, there may be problems in many areas.

A research study found 80% of businesses deliver “accidental” over charges. But with poor customer service, folks complain they have no way to correct these charges without waiting in long wait times on the phone or at service offices.

These challenges are not just in the United States, but have been found to be in other countries like England, France, Canada, Australia and New Zealand. Correcting errors takes time from income-producing tasks. Add this time to the value of hourly rate of any given individual in business plus the actual errors on bills, and what happens to the customer? Poor customer service has been shown to affect the bottom line.

Financial stresses, however, aren’t the only negative customer impact. There are psychological stresses as well. When a customer has to wait and wait and then not have a problem resolved, this adds to psychological stress. Consequently poor customer service is costing us our health.

A professional survey found 87% of respondents maintained they often feel stress when faced with poor customer service, according to stress expert, Dr Roger Henderson, consultant adviser. He adviser goes on to say, “The result is potentially serious physical and psychological symptoms – such as high blood pressure, palpitations, headaches, nausea, mood swings and anxiety – with a consequent impact on our relationships with friends and family.”

Businesses believe they save money with automation and with distance from direct consumer contact. At the same time the stress and poor customer service can increase the negative image of a given business.

Many small towns have similar problems, but because there are apt to be three, not six, degrees of separation in these communities, it is more likely to be able to get service issues resolved.  In Natchitoches, Louisiana Veronica Conley of The Hall Tree, a women’s clothing shop, agrees customer service is an issue but goes on to remind us how the problems can come from the customer too. “A lot depends upon the attitude and how people make their complaints. It isn’t just the business that made a mistake involved in communication. How a person talks to a customer service representative may make a lot of difference in the outcome.”





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