The Cost of Customer Service
"A Customer can fire everyone from the chairman on down simply by spending his money somewhere else.", Sam Walton. Service effectiveness should always be considered when cutting cost. The one area that often suffers the most when the cost cutting axe falls is customer service. The irony is that customer service is the one place where more resources should be devoted. If for nothing else, to compete with other companies in the process of cost-cutting. Customer service involves an array of activities to keep existing customers satisfied. An example is computer software manufacturers who allow consumers to telephone them to discuss problems they are encountering with the software. Servicing equipment in the field and training new users are other examples of customer service. The term user-friendly is sometimes applied; the firm wants to develop a reputation as being easy to do business with. Firms continually monitor the levels of customer service they--and their competitors--offer. No-one can put a pri
How can either company put a price tag on what their Customer Service representatives did to their profits. ce on good Customer Service, but they can put a price on bad Customer Service. How can one calculate the value to a company when the front desk person has a nice smile and pleasant personality. Word of mouth is the most efficient and truthful form of an advertisement that a company has. The Sprint representative and I discussed the plan that AT&T had offered me and decided to call them on a three party line to find out the whole scoop. The Customer Service Representative was so helpful and courteous. Approximately one week later, Sprint called me to find out why I had switched long distance carriers. For instance, the hassle free return policy at Kragen Auto Parts stores. AT&T offered me the world and they were willing to change my service over with absolutely no charge or disruption to my service. I have had my share of returns to Kragen because of faulty or incorrect part numbers, but because they are willing to work with me when I need help on something that they are not responsible for, I will be a loyal customer for years to come. Needless to say, I was scammed by one of AT&T's representatives. A customer that has been doing business with your company can start working with another company because of one bad experience with a representative of your company.
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