A blog posting in MSNBC's Red Tape Chronicles notes the same issue I mentioned in an earlier post regarding a company's own judgement of their customer service:
http://redtape.msnbc.com/2007/05/ever_wonder_why.html
Back on January 24th, I posted thoughts on how companies misguide themselves into thinking their customer satisfaction rates are high by measuring the wrong things:
http://strategy180.blogspot.com/2007/01/of-metrics-and-meaning.html
In Bob Sullivan's blog, he notes that "nearly 6 in 10 respondents told researchers they were somewhat upset or extremely upset with the way their most recent customer service experience was handled, according to consulting firm Accenture." Yet, he goes on, the same survey shows that 75 percent of high-tech CEOs say their companies provide 'above average' customer care.
The reason for poor service is often cost, yet in the bottomline-oriented boardroom, what is lost on this reasoning is the real cost. We've all heard the adage that an unhappy customer tells nine friends, a happy one, two. Well, the figures are even more compelling. As Sullivan's blog points out, the consequences of poor service can be severe. Consumers who feel they've been badly treated are incredibly disloyal, as 81 percent said they'd purchase from a competitor next time... and even 'average' treatment isn't good enough -- only 27 percent of those consumers say they'll buy again from the same company. 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. Acquiring new customers is much more expensive. For example, direct broadcast satellite system firms like DirecTV spend on average about $600 to acquire customers, according to an Accenture spokesperson.
