Economic Rebound = Customer Service Falloff

It’s funny how “things are better” amounts to things actually being worse when it comes to customer service.

It makes sense, though, and with a good, long look you can already see it happening in businesses of all sizes and industries.

There are some companies that are always just historically bad when it comes to customer service – AT&T, Excite, the electric company, (United Illuminating here in CT…awful), the cable company. Add in your own favorites (or un-favorites, if you will). Yet combine a rebounding economy with a make-my-losses-back mentality and a shortage of resources and people, and you have historically bad customer service across the board.

It starts at the local level, with service companies from landscapers to oil companies to snow removers. These were services that a lot of out-of-work and cost-conscious consumers eliminated or scaled back on during the tough times of the past few years. Now that things are doing better economically, some consumers are opening the wallets back up, and those companies are more than happy to take the work again. And on the surface, certainly taking on alot of customers helps these companies bounce back from revenue and sales declines of the past few years. Yet for many of them, going for quantity over quality means delivering subpar service to a wider group of customers — including those who may have stuck by them during the tough times. Ultimately that’s not good business.

These are also businesses who haven’t invested in technology or equipment or infrastructure during the down times, so now they’re taking on added customer volume without the resources in place to provide good service. The first symptom is long wait times on the phone and for service delivery. Online contact doesn’t make it easier either, as someone already stretched too thin manages the online channel. Then, when service is delivered it’s frequently subpar since stretched resources are trying to service more customers in the same amount of time. That extra care they gave you as a loyal customer during the hard times is gone. And new customers immediately have low expectations from less-than-optimal service delivery.

The same goes for big brands. Many of them outsourced customer service overseas, for example, and are now getting hammered by higher volume hitting under-trained staff. And many of them still use social media as a mouthpiece, rather than a means for engagement.

None of this leads to long-term success – customers are unhappy from Day One, so it makes your business a commodity. There’s no loyalty based on price, experience, brand…nothing.

My recommendation? As a business that depends on customers, you have to invest in things that make your business unique. And while tough economic times make it difficult to invest in capital costs – like technology – it shouldn’t prevent you from charging ahead with low-cost investments in training, creativity, and other things that make businesses succeed. And ultimately, it means delivering consistent, high-quality service and experience. If that means taking on less customers now so you can build stronger relationships in the long term, that’s a cost of doing business. You have to realize that if take on too much and deliver bad service, you’re going to spend more on sales and marketing costs in the long run trying to replace customers who leave.

Stay tuned for my next post, which outlines three things you can do to avoid these pitfalls.

I hope this post trickles down to the snow removal service that takes care of (or doesn’t) my building. If you do quick, hasty, low-quality work because you’re trying to make it to as many customers as you can, you’re only pulling a snow job on yourself.