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Business- Bad Customer Service

The Failure Of A Business- Bad Customer Service

Posted by on Aug 14, 2016 in Business- Bad Customer Service | 0 comments

Introduction-

Customer Service is defined as the advice and assistance provided by a company to its customers before, during and after the buying of products.  Customer service greatly affects the sales and thus the revenue and income of a company. Because of the above factors customer service plays a major role in the success of any business.

CustomerService

Types of Customer Service-

In modern times, Customer Service offered by companies are of two types-

  • Automated Customer Service– In this type of customer service, a person or an automated Tele caller provides assistance to the customer in need.
  • Instant Feedback– Some MNCs like Netgear invite the customer to undergo a survey to let them know if the service provided was satisfactory or not. These largely help in building up their business as customers feel that the company cares about them.

What Areas Does Customer Service Affect?

A bad Customer Service can badly affect the business as well as the reputation of any company. The areas where the company would be wounded the most because of a bad Customer Service are the following-

Customers

The root cause of the success of any company depends on upon its customer base. If the customers of the company are not happy or satisfied, the downfall of the company is inevitable. If the customer service of a company is not up to the mark, the customers will go for the exit doors even before thinking of taking out their purses. A bad customer service not only affects the existing customer base but also affects the future potential customers. The future potential customers will be not approaching a company with bad customer service since there is already a stain on their reputation. Most of the companies depend on word of mouth marketing, and so even a slight dissatisfaction among the customers spreads like a wildfire and in no time the company comes to its knees.

Reputation

The reputation of a company is mainly built upon the number of clients it handles on a yearly basis. Because of a bad customer service, the customer base of a company can become half within the blink of an eye. As the number of customers goes down, the reputation of a company goes down the drain. As a collective of all these reasons, the company loses both its present as well as future potential customers.

Revenue/Profit

The profit earned by a company is calculated on a yearly basis, and that directly depends on its customer base. As the customer base of a company keeps on going down, so is the revenue generated, and before the authorities take note of it, the company goes bankrupt.

Employees

Company with no clients to serve and no revenue being generated will almost certainly lose all its employees. Other than this factor, a lot of employees resign by themselves because they don’t want to be shouted upon by angry customers.

Tips On Providing Quality Customer Service-

The following are the things that should be looked upon while forming a company’s customer service team-

  • Hire people who are good with human interaction has good communication skills and can work under high work pressure with a smile on their face.
  • An adequate amount of time and money should be spent on training the employees so that the service provided by them is well up to the mark.
  • The employees should be kept happy at all times, because if they are only frustrated, then how will they deal with a frustrated customer!?

Conclusion-

Taking the above points into consideration, it can be easily concluded that if the customer service is not up to the mark, then in no time the company will be on its knees.

 

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