Thursday, 11 September 2008

Customer Service - do the businesses really practice it?

"Your call is important to us but all our advisers are busy at the moment. Please call later on.."
How many times have you experienced this? Many times, I am sure. Does this mean that there should always be a person ready (24x7) waiting for your call?

No, what I mean is that the businesses do not take customer services seriously. There are businesses that are notorious for exceptionally long delays in answering your phones. There are businesses that are known for very poor customer services. We are not here to name and shame businesses and the people behind it. It is a fact, however, that many businesses don't like the very customers they are dependent on for their survival.


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Then why does every business you name it professes lofty mission statements about serving the customers? In my personal opinion, it is just to create an air about the whole thing. Just to make the poor customer feel good. It is just to attract more customers and also an effort to retain the existing customers.

Why is that if you want to open a new account or buy a new product or service, the lines are never busy and the company is happy to offer a toll free number (0800). Whereas if you are an existing customer, the lines are busy, your letter never reach them, your 'previous call' is not traceable in their records and so on. And by the way you have to dial through a chargeable line (0871).

Does this work? Well, it does - many a times. Otherwise, how on earth you see those business thriving and flourishing?

Why does this work, then? There is no simple answer. May be it works because of general ignorance, apathy and last but not the least - monopolistic situations. In many businesses, there is what is called an 'entry barrier'. It simply means it is not easy for any one just to start that business. It may be due to technology, huge setting up costs, requirement for big infrastructure etc. It is not a coincidence that the businesses in these areas have poor respect for customer service. This applies to small business as well. Look at trades people. I do not mean to suggest that all of them are dishonest or don't care for their customers. It's just a question of shortage of good trades people.

There is another side to this issue. Businesses are primarily to make profit and create wealth for their owners (shareholders) and managers (through performance linked pay). 'Satisfying the needs of the customers' is just an excuse for making more money.

The real problem is that some short sighted business managers do not understand that, in the long run, creating value for their customers (by exceeding the expectations) creates more value for the shareholders and other stakeholders.

Unfortunately, in the long run, we are all dead (with apologies to J M Keynes).

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