Bad Customer Situation

Introduction

A customer is a person or entity that buys the products (goods or services) that a company puts on the market. Therefore, we can say that the customer is the most important agent for a company. Since, a company can only survive if their products are claimed. The customer is the star of the commercial (Frain, 7). In this paper, we are going to discuss bad customer situation by identifying external type of customers. Further we shall be discussing cost of losing a customer and at the end strategies will be provided to overcome a bad customer situation.

Bad Customer Situation

A Bad customer situation to a company is when a customer does not effective customer service from the company. For example, Customers who send an email and do not receive a response within 24 hours often follow up with a phone call because they assume the company is ignoring them. As the staff that responds to emails does not have visibility into what happens in phone calls, they are likely to send a delayed response that differs from the information provided during the call (Cappel, 117). If the responses were consistent, the only unnecessary cost would be the expense of handling the same inquiry twice - in a phone call and an email. Inconsistent answers, however, mean that the company now has a bad customer situation on their hands that may very well escalate all because the email service level was worse than expected. To avoid bad customer situation at present there is a lot of emphasizes on customer support.

External Customer

An external customer is one who is not a part of an organization, rather is one who receives service or product from the organization. They are the ones who pay for a service or product and can make or break an organization. They have a choice. If, a particular product or service does not please them, they can easily find another company that offers a better product or services. External customers are people who walk in off the street or ring in, just consumers with no connection to the organization directly that wants to purchase a product/service (Papasolomou, 85). For example I am buying a product of P & G, and I do not have any direct impact on the company than ill be called as external customer of P & G.

Cost of Losing Customer

Before calculating the cost of ...