THE COST OF POOR CUSTOMER SERVICE

By Elaine Smith, Upper Cumberland Area Branch Manager
Better Business Bureau of Middle Tennessee
February 19, 2004

Listen up Middle Tennessee business. The 2003 customer service report is in and you got a failing grade!

25,000 customer complaints to BBB last year
and here's the top 5 reasons customers complained and why they took their
money elsewhere.

1. Uncaring, negative attitude of employees and management.
2. Upset with the treatment they received.
3. Failure to return customer calls.
4. Employees not empowered to make decisions.
5. Poor handling and resolution of complaints.

In today's volatile economy, providing excellent customer service can be the
critical difference in your company's success. Customers today are better
educated than ever before.
They are more careful about their purchases and the dollars they spend.
They want value for their money.

If you look at the 5 cited reasons for customer dissatisfaction, business
has control over 100 percent of the reasons why their customers stop doing
business with them. Customers are loyal to a business because they feel they
are treated well, they are made to feel important, and they are
psychologically attached to the business because they like the people.

Customer service pays, it does not cost. It pays in many ways, the first of
which is longterm customer retention. Many businesses understand the cost
of acquiring a customer, but they don't understand the cost of losing one.
The harsh reality, it costs five to six times more to acquire a customer
than it does to do business with a current or former customer.

Remember the real reason you are in business is to serve a customer. When
you serve your customer better than anyone else you make a profit. Commit
your business to these 5 Customer Commandments and your business will have
customers for life.

1. The customer is the most important person in the company.
2. The customer is not dependent on you; you are dependent on the customer.
YOU work for the customer.
3. The customer is not an interruption of your work. The customer is the
purpose of your work.
4. It is your job to satisfy the needs, wants and expectations of your
customers, and whenever possible, resolve their fears and complaints.
5. The customer is the lifeblood of your business and deserves the most
attentive, courteous and professional treatment you can provide.

As always, when in doubt, check it out with your Better Business Bureau.

Elaine Smith, Upper Cumberland Area Branch Manager
Better Business Bureau of Middle Tennessee
931-520-0008 18 N Jefferson, Cookeville, TN.