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Good Customer Service
The High Cost of Losing a Customer
by John Tschohl on November 14, 2013
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Would you save $20 today to lose $10,000 over the next 10 years?? No small business owner in their right mind would go for this. No small business owner in their right mind would empower their employees to make a decision like this. It doesn’t make sense but small business owners do it every single day!
For the last 5 years I have been averaging about $1000 a year for ink cartridge refills for my office and home from Cartridge World in Bloomington, Mn. I frequent small businesses in my area as, like most of you, I want to do business locally and help small business to grow and be profitable. The problem with some, is they tend to be the biggest offenders of customer service.
I was recently getting ink cartridges that were not working. The owner told me that if over 90 days old they would not replace or refund. They have evidently not heard of Service Recovery. Their bad customer service (driven by the owner) has resulted in a lack of cash and is resulting in a desperate attempt to survive. I told the owner this week she will never see me again.
All of us have problems. What this owner should have done is use the 4 skills we teach in my book and training program called, Loyal for Life
Take Responsibility. She should have said: “Mr. Tschohl you are correct. For some reason the cartridges ink did not work”.
Act Quickly. She should have said: “Mr. Tschohl let me handle this problem now”.
Be Empowered. She should have said: “Mr. Tschohl I will handle this problem to your satisfaction”.
Compensate. She should have said: “Mr. Tschohl we will replace at no charge the defective cartridges and in addition let me give you an additional complimentary cartridge for each one you brought in”.
This is simply ink. More than likely a total out of pocket cost of $20. Kelly the owner made a bad decision. She said goodbye to $10,000 over the next 10 years to save $20. Do not make the same mistake. $1000 a year for a small firm is a lot. To just kiss off the business does not make good business sense. NEVER GIVE MONEY TO FIRMS THAT HATE CUSTOMERS. Bad customer service is the downfall of most small businesses.
Use Service Recovery and differentiate your company
Every employee needs to master Service Recovery. Outback Steak and Amazon are the best. In the US and across the world less than 2% of companies have the faintest grasp of how and why to use Service Recovery. Dell, HP, Federal Express are extremely weak on Service Recovery. Don't make the same mistake.
Share news on LinkedIn | LinkedIn
by John Tschohl on November 14, 2013
Email a FriendFacebook8Google+8LinkedIn8Twitter10
Would you save $20 today to lose $10,000 over the next 10 years?? No small business owner in their right mind would go for this. No small business owner in their right mind would empower their employees to make a decision like this. It doesn’t make sense but small business owners do it every single day!
For the last 5 years I have been averaging about $1000 a year for ink cartridge refills for my office and home from Cartridge World in Bloomington, Mn. I frequent small businesses in my area as, like most of you, I want to do business locally and help small business to grow and be profitable. The problem with some, is they tend to be the biggest offenders of customer service.
I was recently getting ink cartridges that were not working. The owner told me that if over 90 days old they would not replace or refund. They have evidently not heard of Service Recovery. Their bad customer service (driven by the owner) has resulted in a lack of cash and is resulting in a desperate attempt to survive. I told the owner this week she will never see me again.
All of us have problems. What this owner should have done is use the 4 skills we teach in my book and training program called, Loyal for Life
Take Responsibility. She should have said: “Mr. Tschohl you are correct. For some reason the cartridges ink did not work”.
Act Quickly. She should have said: “Mr. Tschohl let me handle this problem now”.
Be Empowered. She should have said: “Mr. Tschohl I will handle this problem to your satisfaction”.
Compensate. She should have said: “Mr. Tschohl we will replace at no charge the defective cartridges and in addition let me give you an additional complimentary cartridge for each one you brought in”.
This is simply ink. More than likely a total out of pocket cost of $20. Kelly the owner made a bad decision. She said goodbye to $10,000 over the next 10 years to save $20. Do not make the same mistake. $1000 a year for a small firm is a lot. To just kiss off the business does not make good business sense. NEVER GIVE MONEY TO FIRMS THAT HATE CUSTOMERS. Bad customer service is the downfall of most small businesses.
Use Service Recovery and differentiate your company
Every employee needs to master Service Recovery. Outback Steak and Amazon are the best. In the US and across the world less than 2% of companies have the faintest grasp of how and why to use Service Recovery. Dell, HP, Federal Express are extremely weak on Service Recovery. Don't make the same mistake.
Share news on LinkedIn | LinkedIn
Sunday, November 10, 2013
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