Poor Customer Service Essay

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The main factor influencing the clients’ loyalty is the service – the best proof here are the results of classic research concerning the reasons why the clients join rival companies: in 69% cases it is because of unsatisfactory customer service.

It is worth mentioning here that the low quality of the company’s products or services discourages only 13% of customers. It is easy to imagine how much a company loses when a client is serviced in a way that does not meet his/her expectations and (s)he decides to refuse for service: In this situation the company suffers significant losses, financial and non-financial.

It would be worth learning how many such cases take place in a company every day, week, month or year.

Does the management of the company know about these cases and can it assess how much money is lost? The research results or situations described above show how much one can lose because of poor customer service.

One of the proofs of this cycle could be the example of Sears and its US mail order business.

Research has shown that “5% gain in employee satisfaction drives a 1% gain in customer satisfaction which, in turn, leads to an additional 0.5% increase in profit”.For every example of great customer service, you’ll easily find a bad example too.You’ve probably already dealt with your fair share of customer service fails - I know I have.The research of customer satisfaction carried out by EFQM shows explicitly that customers’ loyalty has a direct influence on the company’s financial results – it increases profits generated by the company.It has been proved that most profits are brought by loyal clients who are lenient, forgive the company their mistakes and do not join the competitors when the circumstances become unfavourable.It helps business to win clients in an extremely competitive environment nowadays and it facilitates cost–saving.Large amount of research executed around the world demonstrates that investments into customer service and people yield enhanced organizational results, so there is a high correlation between the customer service quality and profitability.We often hear companies saying that good customer service is very important for them, but in real, actions do not seem to support that statement.Instead of that many organizations today tend to focus only on choosing faster and easier ways to get fast recognition and easy money. have written in their book Service operations management book that Service Excellence means that it is not about exceeding the expectations of customers, but primarily about “delivering what is promised and dealing well with any problems and queries that arise”. has said in other words that it is all about the organizations being “easy to do business with”.Although, it may take extra resources, time and money, good customer service often leads to greater customer satisfaction.This in turn generates positive word-of-mouth for your business, keeps your customers happy, and encourages them to purchase from your business again.

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