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SERVICE IS IMPORTANT: Today’s organizations have a completely different challenge from those in the past because customer expectations have risen dramatically. Customers want a lot more than they used to, and they expect to get it.

That’s why many companies are incorporating exceptional customer service into their overall marketing plan. They know customers will spend their money on products and services that come with great customer service. In fact, these companies know that their customer service may be the only thing that sets them apart from the competition.

They know that great customer service ultimately leads to a greater job security. Great Customer Service means higher customer satisfaction which means higher customer loyalty which means higher company profits which means increased job security!

Cost of Poor Service

The reverse is also true. Organizations that don’t give good service pay for it in many ways. The insidious thing about the cost of poor service is the fact that that it’s hidden. No company ever has a line item in the budget for poor service, but it still costs them, nonetheless.

The cost is buried in a number of areas

1. It is buried in the number of times a customer calls to order something and gets a busy signal or hangs up before someone is free to answer the call.

2. It is buried in the number of times a customer has to call back to find out what happened to the request she made four weeks ago. It’s buried in the effort you made to find out exactly what happened.

3. It is buried in knowing the customer may have called for three needs and got so frustrated in getting the first one answered that she gave up on numbers two and three.

4. It is buried in the cost of doing things over that could have been done right the first time.

5. It is buried in return merchandise.

6. It is buried in the time you invest in responding to complaints.

7. It is buried in the bad mouthing a customer gives your business when he gets poor service.

8. It is buried in the loss that results from the absence of referrals.

When you consider the cost of poor customer service, you’d be foolish to offer anything less than great customer service. And yet some ignorant companies say they can’t afford to train their employees in customer service, and they can’t afford to offer great service. What they don't realize is the bad customer service is much more expensive than training and creating Customer Service Champions.

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