MANAGEMENT

Service Delivery and Improvement

Service Delivery and Improvement

Impact of poor service on the Organisation

Customers are people. We have expectations, tastes, preferences, concerns, moods, particular reactions, and so on. Business is a market exchange mutual satisfaction of conditions. Businesses are NOT a transaction of things (money for goods / services). In other words, both parties must be satisfied in the process. This seems to be a matter of common sense, but every day we see companies immersed in a vision and unilateral action, focused primarily on how many customers and interactions performed and accrued revenues.

What, if any, blindness in this way to understand the business?

If we take the premise, then there is an unwritten golden rule in business: "Treat others as you would be treated" i.e., both must be satisfied. When this balance is disrupted and customers are not satisfied, it generates a "bad income" for the company. Anyone income earned at the expense of customer satisfaction is a "bad income." This bad credit is not identified as such in the traditional accounting practices and the company goes ahead. The dissatisfied customer can lead to an open opponent. A person who resent the company actively takes care of all your network comment directly, or anyone who will listen why they should not purchase products or services of this company and the damage it has received

Additionally, a dissatisfied customer immediately begins to generate additional cost of service, for calls to complain, send letters, try to return your product, you find that your money back, he spends his negative emotionality employees of the company that in turn spread, and so on. This is a "time bomb" and the length of it is only bounded by the existing competitive environment. That is, if there is no competition and monopoly conditions (Viva Mexico), customers will have to keep buying the same company until conditions change.

But as soon arises an alternative in the market, customers will be charged the invoice and migrate to the alternative. There are several landmark cases such as the birth and growth of Axtel as an alternative to fixed telephony monopoly, the emergence and success of Southwest Airlines as an alternative to U.S. Airways (which dominated the Philadelphia market and prices charged discretion).

In short, what is the impact of poor service for business?

Loss of customers (churn) customers who leave the service or consumption of products from a company in favor of another

Loss of Market Share (market share): negative growth for competition

Increased Cost of Sales (have to buy market making costly advertising campaigns to promote the company and its products, increasing sales commissions to encourage the sales force, acquiring companies and then contaminate it with the same style)

Increased Cost of Service: more resources are needed to deal with a growing number of dissatisfied customers and service issues (Executive Service, Service Centers, with more people and generally little capacity to address the dissatisfaction that depend on generate other areas)

A common element in all countries is poor Customer Service is provided ...