Kamin on benefits to business

Notes from Customer Service Training
Maxine Kamin

• As John Naisbitt predicted in Megatrends, the more high-tech we get, the more high touch we'll need. People need the personal, human touch in business dealings. They need human contact that is compassionate and kind, helpful and genuine. There is no substitute for caring.
• In customer service, that means caring about the whole customer experience. It includes ensuring that deliveries are on time, providing relevant information, solving problems that arise, and following up as needed.
• Service is important to customers, and it is equally important for business growth. It is an essential — not a luxury to be practiced when there is time.

Consider the following research findings compiled on the basis of responses from more than 5,700 customers, employees, and managers:

• Customers are five times more likely to switch vendors because of perceived service problems than for price concerns or product quality issues.
• The highest employee turnover rates are associated with those companies possessing the lowest service quality.
• The bottom line in customer service is that customers want to feel cared about and respected, and that they are more likely to return if these conditions are met.
• If customers' problems are resolved in a satisfactory manner, they are more likely to return to a business or organization, and to be more loyal.
• If satisfied with service, an average customer's lifetime with an organization lasts approximately 10 years.
• Businesses that provide superior customer service can charge more, realize greater profits, and increase their market share by an average of 6 percent per year.
• Some customers are dissatisfied with their purchases or services and never complain, but they never return to that business.
• Those who do complain and don't get results are not likely to return either, although the organization may never know about it.
• Those who are treated with concern and respect become even more loyal, and inevitably recommend that business to others.
• It costs up to five or six times more to attract new customers than to keep loyal ones. This ratio can range from 2:1 to 20:1, depending on industry.
• A dissatisfied customer will tell approximately 10 people about his or her experience. Approximately 13 percent of those individuals will tell up to 20 more people.
• Satisfied customers will tell between three and five people about a positive experience.
• 70% of dissatisfied customers who do not get their complaint resolved to their satisfaction will not continue doing business with that organization.