Wednesday, April 19, 2006

Why we provide "Customer Service" even for the Bad ones

Have you ever wondered why we go out of our way to make even mean customers happy? Or why we bend over backwards to create return policies, build customer experience policies and facilitate refunds. There are so many nightmares stories out there about customers who have created unbearable or unfair situations and unfortunately there will be others. The real issue here is in understanding why we respond the way we do to make them happy now and later.

For the moment I’m going to concentrate on online businesses while what I share applies to all businesses including the traditional. In most online businesses the focus is on the product and the sales cycle. Why is that bad? Well first it concentrates only on first time sales never on loyalty, customers needs and return business. Customer satisfaction levels were at an all time low this Christmas for online companies and the previous is the reason why. If a business is to survive on line then the focus has to change to being customer centered. Why well the above story can be used as an example.

The web is growing fast, but only a small percentage of that growth has sustainable resources to buy on line. In other words to succeed we need repeat customers. This is especially true in niche markets. If you are rude and insistent on poor customer handling policies you will loose the repeat business.

Studies show that you really don't make money on the client until the 2nd or 3rd sale. The 1st one is just a process of cost recovery. By allowing the package to be returned and facilitating it gracefully the customer was left with a mental tag inviting him back to do business again. He knows that the company can be trusted and I guarantee you he will share that with others.

Then he will also share the bad experience as well and he will tell far more people. And online the word of a bad experience will spread faster and farther than it will in person.

Please feel free to comment. We value your thoughts, ideas, and wisdom.

If you would like more infomation on the custome experience please visit
"The Customer Development Cente"

1 comment:

Frank Ross said...

Hey Tim, first thanks for you thoughtful commments on my blog. Also, I thought someone (like me) should let you know that the link from your sales page to this blog has a typo on the URL.