Get More Repeat Business With Better Customer Service. Duh.
Were you sleeping off a hangover during Intro To Fundamental Business Principles?
The Red Tape Chronicles says many companies see customer service as a cost center, but in fact...
The actual cost of providing good customer service -- having a human being answer the phone, for example -- only costs between $10 and $30 per customer...Read between the spreadsheets. Improving customer service is a cost-effective investment in repeat business. — BEN POPKENCompanies that improve their customer service experiences find consumers become immediately loyal -- they are 2.5 times more likely to buy again from the same company.
CEOS THINK CUSTOMER SERVICE IS GREAT [The Red Tape Chronicles]
RELATED: 4 Signs Your Customers Hate You
Post a comment
Comments:
and happy customers don't generally call customer service to complain over and over again. fewer calls from angry customers = decreased cost for customer service department
It costs 6x more to get a new customer than to keep a customer you already have.
Be careful what you post, Consumerist. If you give away this secret, and companies start providing good service, your website will be obsolete!
This is news? Since when? 1507?
makes you wonder what these idiots are being taught in mba school.
If you look in the comments on that article, you'll see one wise soul (perhaps a CEO?) saying that you can't have "good customer service and good prices, pick one" and that "most customers are too stupid to figure out products anyways".
Unfortunately I think this is the attitude of a lot of CEOs - that their customers are mindless morons, and customer service is just there to placate them, or give them something shiny to play with (press 1, press 2, please hold) until they go away.
A couple of years ago a resolved that bad service meant I'd immediately stop doing business with a company if at all possible. It's been quite cathartic and empowering.
I'll take duh for 100, Alex.
@tcp100 & @mac-phisto: I found it's entirely too unreasonable to cut all the poor customer service out of my life (I mean, I do need phone and electric service), but that whenever feasible I pledge my loyalty to companies that have served me well. I had a bad experience at Lowe's the first time I shopped with them, so I'm never going back. I had a great experience at Community Home Supply and I have their number and address on my cell phone. I had a wonderful sales associate at Neiman Marcus, I saved her business card so the next time I want to make a large purchase on a luxury item I will go to her first. It's sad that so few companies realize how much money consumers will throw at them if they're given good service. It's a two-way street. When did it become acceptable to force people to be your customers and then repeatedly punish them for it?
and still they never learn...
@catnapped: Even more interesting is that CEOs get paid to routinely make decisions which go against this.
Good customer that doesn't leave the customer disgruntled leads to repeat business - who woulda thunk it?