Why is it that many lament the demise of customer service in America when many companies are dedicating substantial resources to their customer service efforts? NewEdge has found that customers are very forgiving of certain inconveniences while completely intolerant of others. Customers understand some types of technological efforts to improve efficiencies, while they are frustrated with others. So what makes great customer service? The answer is not in large scale customer service solutions, but in understanding your customer, the goals, expectations, and hopes they bring to their encounter with you, and the act of making the encounter memorable – in a positive way!

Cost – Benefit relationship
Customer service is often a value of companies but the competitive pressures and the pressure from Wall Street make it difficult to allocate resources necessary to maintain high levels of customer service when companies grow and mature. Yet the financial and service goals of companies are actually directly linked.  The cost of retaining a current customer is negligible compared to the cost of acquiring a new customer. In addition, the financial benefits of reducing complaining behavior are significant. Research shows that complaints are very costly in terms of managerial and staff time as well as communication efforts to dispel negative opinions. Past studies indicate that addressing complaints can cost hundreds to thousands of dollars to handle. These costs are typically reduced through aggressive satisfaction and communication programs.

Custom, Cost effective solutions
Customer service efforts are less costly when they are approached from a segmentation standpoint. For example, customers vary in the reasons they seek your products and services. Understanding the core set of purposes a customer brings to the interaction allows sales and customer relations staff to provide efficient service that contains the right elements to make the interaction successful. This includes determining which issues can be addressed through automated systems versus through personal interaction.