I know that all of you at some time have experienced poor customer service. Remember how frustrating that can be? Some of you might remember receiving outstanding customer service that is gracious and fulfilling.
Think about the cost of customer acquisition (CAC) and customer retention costs (CRC). However unfathomable it may seem, one poor customer service issue may lose a customer forever. There are a number of vendors that I will never use and there are vendors that keep my business despite having ordinary or even redundant products or services.
I am interested in hearing stories from those creative souls that either saved a lost customer or discovered an outstanding way to recapture a seemingly lost client. I am not asking about ways to throw money at a customer. I will admit that money and refunds can be excellent incentives for customers. Instead, I am looking for interesting stories in the art of the creative save.
One of my stories occurred at a high-end chain restaurant at a hotel in San Diego overlooking a harbor. It was near the fourth of July, and the restaurant was particularly busy. Our children were with us and, and we were looking for a pleasant family dinner. Suddenly, an unexpected firework show began over the harbor. We ordered, our drinks came, we were all laughing and talking, and clearly enjoying the evening. We were having such a pleasant time that we were completely unaware of how much time had passed since we ordered.
Soon the maître d’ came to us and apologized for our meals being so late. It had been an hour since we had placed our order, and we didn’t even know it. They offered us more drinks, and immediately served our meals and desserts, all on the house. Now I know some readers will see this as a monetary incentive. However, we had not realized how long we were waiting and did not complain – but the wait staff knew as well as the manager that this was not the good service they were trained to give. This was a case of the restaurant unilaterally deciding to take action, and doing what they perceived was the right thing before the customer could register any complaint. As a result, we have since favored that particular chain, when given a choice of other similar restaurants.
Poor service is only one way to lose a customer. Other common failures in the cost of customer retention (CRC) results from failing to maintain a relationship with your customer, failure to understand their evolving needs and requirements, or finding yourself edged out by another vendor who worked harder than you for their business. A heavy focus on product or service price may contribute to losing a customer. You work hard to bring in customers, why lose them?
Do the math. What is your cost of customer acquisition (CAC), cost of retention and cost of recapture? My guess is that employee training and empowerment can easily solve customer service issues, and come at a lower cost than losing good clients.
Consider this: How good are all your employees at managing customer interactions?