Wednesday, November 17, 2010
Opportunity Cost - How much does bad service cost?
Every decision you make has a cost associated with it.
When you choose to do one thing, you can't do something else in its place. Otherwise you would have chosen the other thing.
The same can be said for good customer service. If you choose to only offer excellent service, you can't do bad service in its place.
Most businesses don't realize they have a choice. But they constantly make the wrong choice by putting the wrong person in place to represent their company.
You want an example? A customer came in yesterday talking about her bank. She had faxed them some documentation and didn't hear a response. When she called them, they told her we didn't receive your information. She told them she had the fax confirmation showing when it was received. The person she spoke with changed her story and said they get so many faxes they don't know if they are legit so most of them get shredded. WHAT? This bank is actually paying someone to say something so ridiculous to their customer.
Today this customer came by just to tell me she closed her account with that bank.
I have no affiliation with that bank. But this customer felt compelled to tell me the story of her bad experience. Think she'll tell more people?
I wonder how much this will cost them? I wonder how they will justify their decision?