Customer Service in the New Economy

By: Joe Kiefer

Has the recession had the same effect on customer service levels as it has on home values and the stock market? Prior to the recession I had come to expect a certain degree of aggravation every time I had to call my phone company, cable provider and pretty much any financial institution. Purely based on casual conversations at the time, I would assume that my frustrations were shared by the majority of their customers. Outside of those specific companies, however, I came to believe that most companies were putting a good deal of effort into a good customer service experience.

The customer experience, after all, is a key to maximizing the lifetime value of a customer. There is no quicker way to lose customers for life than to provide them with an unsatisfactory experience. And let’s not forget about the lost dollars from all the potential customers they will tell about the poor experience you provided. On the other side, if you give them an exceptional experience you will be rewarded with higher repeat visits and the most priceless marketing method of them all, Word of Mouth.

All companies obviously had to cut back over the last 18 months, but I would argue that customer service should be decreased only out of necessity. Recession or not, customers lost will probably never come back and you will never get a second chance to make a first impression on a new customer. It could take decades to fix a couple of years worth of poor customer experiences.

I don’t want to point my finger at all companies, but I have personally witnessed a noticeable decline in customer service from companies I do business with. I could share stories about airlines, restaurants, hotels and even a golf course. I am not here to name names, although I am tempted in some of these cases.

I would like to point out, however, that the competitors to these companies have a chance to steal customers and market share. Now is the time to increase your customer service and gain customers that will stay with you for years to come. Don’t be short sighted and risk your future success for a small savings now.