Customer service can impact your bottom line

Phones that don’t get picked up, clerks ignoring customers and complaints that go unanswered or unresolved are among the many ways businesses big and small lose customers every day.

Does your business provide good customer service? Or have employees become lax in regard to how they are perceived on the phone or in person?

According to Lee Resources, for every customer complaint, there are 26 other customers who remain silent. And the ripple effect of an unhappy customer is tremendous.

“Satisfied customers tell three friends; angry customers tell 3,000,” writes Pete Blackshaw, former chairman of the Council of Better Business Bureaus, in his book of the same name.

Consumers want good customer service and 60 percent are willing to pay more for it, according to a Harris Interactive Customer Experience Impact Report.

And good customer service, it turns out, is good for business. Eighty-one percent of companies with strong capabilities and competencies for delivering customer experience excellence are outperforming their competition, according to a 2009 survey by Peppers & Rogers Group.

In fact, good customer service can help businesses survive rocky patches. Karen Smith, co-owner of Colorado Boat Center in Loveland, a 2011 BBB Torch Award finalist, said business ethics – of which customer service is a key ingredient – is instrumental “if you want to stay in business.” She added that it’s also important if you want to enjoy the work that you do, if you want to keep both staff and customers long term, and if you want repeat business and referrals. “It all depends on your ethics, your integrity, how you do business – it is the foundation,” she said.

Make customer service priority

If your bottom line is slipping, take a hard look at your company’s customer service efforts and, if needed, take immediate steps to make customer service a priority. It can be as simple as training employees to treat others as they would want to be treated.

Regardless of the size of your company, consider developing a training program that allows employees to become knowledgeable on all aspects of your services and products – if you don’t already have such a program.

Why is this important? A big part of selling is education. Employees need to know what they are selling, whether it’s a product on the shelf or a service that only your business can provide. Teach your employees how to read a customer’s personality and treat him or her accordingly. For instance, some people don’t want to have a relationship with a salesperson, they just want to know where to locate something or ask a question. Others may want some attention or extra pampering.

When a customer is dissatisfied with a purchase or service, make certain you and your employee know how to handle the issue. Start by putting yourself in his or her shoes and try to see the problem as though it were your own.

Acknowledge your customer’s distress and, most importantly, apologize and respond quickly. Keep in mind that a customer with a complaint can be turned into a public relations agent for your company. As Blackshaw points out, an unsatisfied customer is likely to spread his or her experience by word of mouth or the Internet; however, a customer whose problem has been satisfactorily resolved may remain a loyal customer. You should attempt to resolve the problem promptly and fairly.

Many people ask: Is the customer always right? No. At the BBB, we’ve dealt with many consumer complaints where businesses go above and beyond to make the situation right only to have the customer state it’s not enough.

This doesn’t mean you stop trying. Statements on your website or in your establishment that assure customers they are important and that the company will listen when they complain are important. Something as simple as “We appreciate your business and we want you to be satisfied” when used truthfully can make a big impression on your customer’s perception of your business.

Pam King is president and chief executive officer of the Better Business Bureau serving Northern Colorado and Wyoming.

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