How much does poor customer service cost your business?

Late last year, Thames Water faced a fine of £12.5 million for poor customer service and misleading the regulator Ofwat. This news item was reported in September (2007) last. An article in Times online revealed that the company was fined £11.1 million for “inadequate” reporting and customer service and £1.4 million for failing to pay compensation to customers. I was reminded of this incident recently on learning about yet another display of scant regard for customers by a business. I concluded that if fines are imposed for poor customer service, many businesses would soon be forced to file for bankruptcy.

Displays of poor communication in delivering customer service can be costly. Not only are reputations damaged and profits reduced, but shareholders receive lower or no income as dividends and employees see their salaries freeze or kept just in line with inflation.

Here are a few of suggestions for improving customer service:

· Identify customer needs and expectations -respond to them.

· Handle difficult situations swiftly, thoughtfully and firmly –avoid escalation.

· Be quick to admit when wrong –customers prefer honesty when mistakes are made.

· Be prepared for and respond to changing needs of customers.

· Demonstrate CARE (Courteous Action Required Everytime).


What are your top strategies for providing excellence to your customers?

Veronica