Perfect customer service used to be the norm for American companies. Many can remember a time when full-service gas stations had a crew checking the oil, washing the windows and filling the tank – all without extra fees, excuses and pushback.
Or, companies recognized more for improving customer loyalty in hopes of receiving additional business in the future. You rarely hear stories about cultivating relationships with customers, and more tales about one-dimensional transaction-based interactions.
It's discouraging, and many companies are overlooking the one true asset they can offer that costs virtually nothing: Excellent customer service.
During these tough times, consumers are more likely to remember how they are treated now and will reward those businesses when the economy fully improves. But it goes even further than this.
Have you noticed the companies with a reputation for great customer service are also the companies that have seen better performance out of their stocks during these difficult fiscal times? Think of Southwest Airlines (LUV:NYSE) and Apple (AAPL:NASDAQ) – companies known for going above and beyond for their customers all the while their stocks have appreciated 65% and 86%, respectively, over the past year.
Then, you look at hard-nosed companies like Comcast Cable (CMCSA:NASDAQ), Home Depot (HD:NYSE) and Bank of America (BAC:NYSE), companies that have barely beaten or lag the S&P 500 over the past year. Consumers have choices and are not stupid, yet these companies continue to disrespect the one group that helps keep the lights on in the building.
I'm sure there are countless examples of what you have personally experienced over the past two years that will probably have you returning – or ignoring – those places of business. It's about how the company treats its customers that will set the tone for future revenues and higher equity valuations.
If you have a company you have had the pleasure, or displeasure, of dealing with, feel free to post a comment and let us know. We appreciate your thoughts.
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written by Bill, July 07, 2010
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The conundrum for large businesses is that many customers want the absolute lowest prices and the absolute highest levels of customer service. I get excellent customer service at Whole Foods, for example. And I am fully aware that I am paying a premium in food costs for it. But it's worth it to me.
Customer service is costly, and good service even more costly and excellent service more so. Or, at least, that is the common wisdom. Southwest belies that dictum. Low prices and great customer service, what a concept! It can be done and it is a real challenge to implement. I hope that more and more managers will make the observation you have made and put plans into action to effect changes in customer service. We all need this.
Thanks, Bob
P.S. Don't know if you allow this--I would like to reblog this post on my blog at www.marketresearchoptimized.com. Would that be possible?