Customer service

[Makeitstop]

So, I think we've clearly established the importance of customer service. Which leads me to wonder, why are there so many businesses that don't get it?

Well, I can think of two types of businesses that can treat customers like chumps and get away with it. The first type is the kind with little competition. For example, if you want a video game console,you have a grand total of three choices, and odds are you won't even like one of them. And with exclusive content on each, the choice comes down to price and personal preference. So with all those factors, it takes something pretty drastic for these companies to start caring about their customers (such as the million or so defective xbox 360's that forced microsoft to extend their warranty and repair or replace all the broken systems) but other than that, they can get away with just about anything.

The other kind is the kind of business that relies on newcomers and the uninformed. If they only get the job done right 80% of the time, they'll get bad press among those in the know, but people who aren't doing detailed research can be easily suckered, and since they don't screw up all the time, they probably do have some repeat customers. Earlier this year I was talking with a woman who wanted to buy a kilt for her boyfriend, and so I gave her some advice about what vendors I recommend, and where to get more info, and I made sure to mention that she think twice before ordering from a site which has a very bad reputation. Her response was that she had been considering ordering from them.

Hell, I fell into that same trap when I ordered a gizmo from a site which didn't ship and doesn't have any real customer service at all.

Whether these businesses can last in the long run is questionable, but it does seem that there are plenty of them out there.

[brendillon]

You missed one. A big one.

Cost.

People will drive an extra 5 miles to save $0.50. look at a company like Wal-Mart. Customer service? Half the staff isn't old enough to vote at a typical Wal-Mart, you don't get quality customer service from a place like that.
What you get is a great price (or the perception of a great price, wal-mart is frequently not the best price around and their products are often poor quality which means you'll have to come back again sooner for a replacement).
Considering that they are likely the single largest corporation on the planet, it's no surprise that cheap products with low customer service is a common, and highly profitable, business model.

[Dukeof Kircaldy]

The problem is that people want things at a low cost with service. Service and good product costs, unless one is using "economies of scale" (i.e., Walmart buying in vast quantities). Even then, Wal-Mart will scratch service in favour of scale.

[Donnie]

The problem is that people want things at a low cost with service. Service and good product costs, unless one is using "economies of scale" (i.e., Walmart buying in vast quantities). Even then, Wal-Mart will scratch service in favour of scale.

How very true!

[jordanjm]

My feeling about life is that relationships are what are important. When I go to purchase an item I am looking to build a relationship. When I am selling an item I am looking to build a relationship. For me the actual sale is secondary to the relationship, because I may never have an opportunity to build that particular one again.

[Finn]

Okay, this story goes back to 2000. I was in Orlando for a corporate training class. The instructor was a HUGE fan of Disney as a business model and he incorporated that into the class. He asked us if we know who Disney considered to be their primary competitor. We were shocked to learn that it was FedEx. Disney considered their business to be service.
Move forward to '06... Another company at our Product Show in Nashville... Our final "class" was presented by a Disney employee and focused entirely on customer service.
I'm no fan of Walt's money-hungry beast, but they do have service down to a science.
I'm forgetting my last thought... DANG IT!
Oh yeah!
I live by the bit from "Miracle on 34th Street" where Kris Kringle tells the customer to go to Gimball's (sp?) with the subsequent answer. It stuck with me since childhood.

[Arlen]

I'm willing to make exceptions because I have had bad customer service experiences from shops who later completely turned it around and sorted themselves out.
I think that if they make the effort and do what they can to correct their mistakes then they have the right idea.