The Cost of Poor Service

Don’t Waste My Time

My last post about customer service got me thinking about other experiences I’ve had as a consumer recently. A few months ago I was having some issues with the company that hosts my website (IPowerWeb.com). I called them and spent an hour on hold before finally reaching someone. He assured me that the problem would be taken care of within 24 hours and I would be informed as things progressed. A week later I called again, waited an hour again, and got the same explanation. He said they’d give it “top priority.” Several weeks later the problem still wasn’t resolved. I spoke with someone via their online chat support, and they finally pushed me over the edge:

Clem: Hi Kyle. I apologize for the wait time. My name is Clement, how are you today?
Kyle: i’m doing fine thanks, how are you?
Clem: I am great.
Clem: We apologize for any inconvenience this may have caused you. Currently, our internal tools are not functioning. Hence, I am unable to check your account. Could you please contact us after few minutes, so that we can assist you in a better way? Our internal tools will work fine after few hours.
Kyle: I just spent 45 minutes on hold on both the phone and this chat. And this was after receiving no response to emails I have been sending for two weeks. Am I going to have to wait on hold again in a few hours?
Clem: We apologize for any inconvenience this may have caused you. Currently, our internal tools are not functioning. Hence, I am unable to check your account. Could you please contact us after few minutes, so that we can assist you in a better way? Our internal tools will work fine after few hours.
Kyle: I’m really not impressed with the service I’ve received in the last few weeks. I just waited in line 45 minutes to be told to call back later so I can wait in line again?
Clem: Did you receive my last message?
Kyle: I did, did you receive mine?
Clem: I apologize for any inconvenience this has caused you.
Clem: We apologize for any inconvenience this may have caused you. Currently, our internal tools are not functioning. Hence, I am unable to check your account. Could you please contact us after few minutes, so that we can assist you in a better way? Our internal tools will work fine after few hours.
Kyle: Can someone from support get in contact with me when the tools are functioning again? I’ve had very little luck contacting you, and I can guarantee I won’t put you on hold
Clem: Unfortunately, we will not contact you. Please make sure to contact after 15 minutes.
Clem: I apologize for any inconvenience this has caused you.
Kyle: Can you at least tell me why my last three emails to tech support have gone completely unanswered?
Clem: I apologize for any inconvenience this has caused you.
Clem: We apologize for any inconvenience this may have caused you. Currently, our internal tools are not functioning. Hence, I am unable to check your account. Could you please contact us after few minutes, so that we can assist you in a better way? Our internal tools will work fine after few hours.
Kyle: I understood the message the first 3 times
Chat session has been terminated by the site operator.

Needless to say, I terminated our contract with them, and took all of my clients’ accounts with me. I was livid after this conversation, which was just the cherry on top of several weeks of abysmal service. Not only did I take my business elsewhere, but I’ve instructed everyone I know to steer clear of IPowerWeb.

Lessons to be Learned

I mentioned in my last post that if you can make a customer say “Wow! What great service!” they’ll be Customers For Life. On the other hand, if you treat customers poorly it could come back to haunt you. You will almost certainly lose their business, but the cost could be even higher…

Take this blogger, for instance, who had horrible experiences with Sprint/Nextel.

Or this one, which talks about Dell’s plummeting customer service ratings.

Which reminds me… I’ve had my own run-ins with Dell. A few months back I plugged in my nearly-brand-new laptop and got an unbelievable electrical shock from it that left my arm numb the rest of the day. It fried the computer too, which I was actually far more concerned about. I called Dell, unhappy but civil, and explained what happened. His response? “We apologize that our product caused you this pain, and suggest that you put some ointment on the shocked area, then carefully unplug the computer.” Ointment? Really? Thanks Dell.

Avoiding Customer Service Disasters

A recent study by the University of Colorado indicates that Customer Service scores in service businesses are dependent upon five main factors:

1. Timeliness of initial response to the customer’s request/problem.
2. Clarity of the employee’s initial understanding of the customer’s request/problem.
3. Completeness of the resolution provided by the company.
4. Timeliness of the resolution provided by the company.
5. Courtesy of all employees involved in providing the resolution.

It’s not brain surgery. Respond to customer needs quickly, completely, and courteously and they’ll be happy! If I spend an hour on hold, it won’t matter if the service I receive is stellar. I wasted an hour listening to your crappy elevator music on hold.

7 Keys to Happy Customers

1. Respond to customers quickly. We live in an impatient world. We’ve all gotten irritated by having to wait three minutes at a drive through window. Same idea here - your customers will appreciate that you’re not wasting their time.
2. Make customers feel important. Let them know you appreciate their business, and want to make sure they’re happy.
3. If you screwed up, admit it. Then make things right. Offer them a free month of service, a free upgrade, or a small gift. Studies have shown that even the most inconsequential gift improves a person’s perceptions of the gift giver.
4. Keep your customer informed. If something is going to take longer than expected, call them and let them know. Give them periodic updates so they know what’s going on. Wagonwork Collision Center, a collision repair shop in Alexandria, VA, calls their customers twice a week with updates on the repair process.
5. Ask yourself: “What would a remarkable leader do?” Kevin Eikenberry says “Remarkable leaders set the pace in creating a mindset that is focused on customers and meeting/exceeding their needs.” Don’t just meet your customers’ needs. Predict them. Exceed their expectations so that they can’t wait to come back.
6. Hire and train the right people. Some people just aren’t cut out to be working with customers. Guy Kawasaki says it has to start from the top. As the owner or manager, you’re setting an example to be followed. Treat customers right and then make sure your employees are too. You’d be surprised how much impact your actions have on your company’s culture.
7. Measure your results. Every company, large or small, needs to follow up with customers. Ask them if they’re satisfied with the relationship, if there’s anything you could do to make it better,  etc.. My company conducts phone surveys semi-annually, tracks all the responses in a database, and looks for improvements and shortcomings over time. We do this for some of our clients as well. Without the stats to prove it, how can you be sure you’re satisfying your customer?

Your customers are too important to your business to leave these things to chance. Document your standard operating procedures (the “How-To” guide to running your business) and make sure they’re followed. Make sure everyone in your organization is focused on delivering the best possible experience to your customers. Maybe one day the rest of the world will catch on and I won’t have any customer service horror stories to tell. We can dream, right?

One Response to “The Cost of Poor Service”

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