Archive for the ‘5465801’ Category

Why do bloggers moan about poor customer service?

February 9, 2010 1 comment

A while back I set up some Google alerts around the customer experience and customer service area.  Broadly speaking it’s been very helpful in introducing me to a range of people and opinions.  The downside has been I have ended up seeing hordes of blogs relaying the authors’ bad service experiences. 

These blogs would be extremely detailed including the “I said/he said” dialogue with the call centre and recording the exact time that elapses between various events, criticism of agents for being less intelligent than them, and they would generally be punctuated with ironic or sarcastic attempts at humour. Perhaps worse of all they were dull and I find it hard to believe they were of interest to anyone but their author.   

Then I noticed that most seem to be written by either journalists or consultants* (which probably explains their previously described nature).  So what is their purpose?  I know we could ask this question of so much of the content on the web but these people have gone to some trouble to write these – why?

Is it to warn other people of the problems and steer them away from this disaster of a company?  In a way it is but I don’t believe there’s anything altruistic about it.  I suspect that impotent rage and the need for revenge are the main drivers.  “This is my way of getting back at them, hopefully creating bad publicity and hitting them where it hurts – right in the revenues”.  

On top of having a marvellously over-inflated opinion of their own importance and influence (more evidence they are mainly journalists and consultants),  these bloggers are taking an extraordinarily negative approach.    These moans can’t be about getting recompense or an apology or surely that rant would be aimed at the CEO.  No, this is usually a nasty, petty vindictive “I’m going to tell teacher on you and then you’ll be in trouble” .

We, as customers, have a responsibility to our service providers to tell them what they are doing wrong.  How else can they hope to put it right.  I am also all in favour of forums that discuss experiences good and bad such as TripAdvisor which I have used to good effect and which is quite different, more balanced, fairer use of social media.  Squealing in an open blog with a one sided, prejudiced invective is negative and self serving.   

And they are bloody boring to read so I’ve given up on them.

* Having been both a journalist and consultant in my time I feel qualified to comment here


How do we calculate the result of poor customer service?

January 19, 2010 1 comment

Poor customer service is costing businesses £3.4bn each year concluded a recent study by Merlin Stone  for Oxford Brookes University. My first reaction was this is just stating the ‘bleedin’ obvious’ and why was money spent on it.

Of course, all I was seeing was the press release and so there is probably a lot more weight to this – especially if Merlin Stone is behind it. I have followed his thinking on service for over a decade and it could never be described as lightweight. And I am sure the sponsor wanted some facts particularly around the amount of money involved/lost to poor service to help them shift product. Interestingly there was another report at the back end of last that put the cost of poor service at £15bn to UK businesses  – anyway the fact remains that we all know instinctively that poor service costs businesses and the numbers are little more than guess work.

My more considered second thought was that the process of trying to simplify the ‘poor service equals lost business’ equation down to that single number means much of the detail is lost as to how one gets to that point.  Understanding that calculation is important in running a service business (is there any other kind?).  The difficult bit is knowing what aspects of poor service affect the customer’s buying habits and how big their direct and indirect effects are. There are plenty of supposedly “poor” service companies doing well (sorry to mention Ryanair again) and “good” service companies struggling eg British Airways.

As an aside here do we mean customer experience rather than customer service

There is a slight problem with supposedly instinctive understanding. How do we know God exists? Because the evidence is all around us. Faith works for believers but not for bean counters so the effect of good service needs to be calculated. Otherwise we could be spending millions on services the customer doesn’t care about or is going to leave us anyway or nothing at all because the manager can not justify it to the CFO.

Someone, somewhere, will have done a formula for the effects of service on sales and profit (what about share value or market share?). It will have a number of variables in it – the customer demographic, their spend, the market, your strategy/goals, the competitive landscape, the regulatory landscape, your brand and so on. Sadly it means the calculation is always going to be a very individual one for each business.

These sorts of research surveys are really only there to get people thinking about the impact of poor service and to get publicity for the participants, so don’t place too much faith in them.