Customer Service Effects Revenues

Customer service, or the lack of it, will have direct and immediate effect on your revenues.  It seems that there are a lot of companies protecting their bottom line at the risk of customer satisfaction.  In today’s economic environment, people are very careful how they spend their money.  When they do, they want to enjoy the experience.   When the experience stinks, they will not be back.

Customer service has always been one of the most essential business issues.  In tough economic times it is even more important.  Business Week featured an article “When Service Means Survival” that discusses how “keeping customers happy is more critical than ever.”  Customers have choices and your business had better deliver what they are expecting when they come to your business.  BW also features a list of their Top 25 customer service champs– a great place to benchmark your business against.

Yesterday I experienced the two ends of the spectrum in customer service in less than two hours.  I had dinner in Scottsdale, AZ at Macayo’s Mexican Restaurant.  I generally eat here regularly; but, like everyone else I have cut back.  I really enjoy the outdoor patio and the food.  Last night the service was terrible.  My order was delivered wrong, I had to help myself to a second serving of chips, and when I needed the attention of my server, I had to actually go into the restaurant and track her down just to get her attention.  Not a very good experience at all.  Will I be back?  Maybe.  I can assure you I will think about it twice.  And, if I find a Mexican restaurant that features some of the things I liked about this one, I will not be back.  Take note that I am at least looking for alternatives–not a good sign if you are trying to build consumer loyalty.

I went to FedEx Kinko’s, excuse me FedEx Office (a huge branding error and a different discussion) in Scottsdale.  It was a little later in the night and not very busy.  I walked in expecting to have to drop off my order for my Social Media Workbooks.  Instead, the clerk started working on copying and binding them right away.  In fact, he got busy on it so quickly that I realized that with a 15 minute wait I was going to walk out of there with my order.  Great.  I will not have to come back to pick it up.  My experience was one of pleasant surprise and tremendous satisfaction.  I will be back.  (Note, this is not the first time I have had a great experience at this Scottsdale  location.)

Lessons learned.  It takes only one bad experience to lose a customer.  When you lose them, they are gone!  Can your business risk lost revenues?  If the answer is “no”, you had better start paying very close attention to your service–it is the key to sustaining revenues.

2 Comments

  1. Sonia Graham says:

    Great article. My only objection is that you might go back to Macayo’s – I recommend you don’t go back. There are too many other options. We have to vote with our feet and our pocketbooks.

    I always say that customer satisfaction is not enough – that’s the minimum required to play the game of business. A satisfied customer is one small step away from being a former customer (see “Macayo’s” above).

  2. I completely agree with you Dave. I have had several bad experiences at restaurants and/or service based places. I have to comment on Home Depot. Lately, their attentiveness to customers has been excellent. They greet in the aisles and they make a concerted effort to take you to the products you require. I think it’s the direction given by management that will determine the importance of customer service. If management are able to watch and correct their employees on an as needed basis, I’m sure there will be less customer dissatisfaction. Of course, on the other hand, as service based employee, it’s important to put your best face forward. You never know when you’ll serve the next opportunity.