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Original post : Oct 21, 2010

Loyal customers - the lifeblood of your business

cracked iphoneIt's a cliche - so it must be true.  A loyal customer is worth more to you than several new ones.  Get it right and they cost less to service so are more profitable, and through referrals and testimonials they can even contribute to you finding and winning new business.  So it stands to reason that all businesses would prioritise customer service, right?  Wrong! Businesses that mess up on customer service don't just lose one customer, they lose numerous customers.  You know how we all like a good moan - unfortunately in marketing this aspect of human nature can seriously count against you.

I can share a personal experience with you to illustrate this.  I dropped my iphone and cracked the screen.  It still worked but had to be fixed so, like so many others, I searched on the internet.  I compared the companies that came up top in the search and, based on the service promise and the price, selected the company I was going to use (www.i-phone-repairs.co.uk ).  I bought and paid for the repair and received excellent instructions on how to send the phone to them, and a fast and efficient acknowledgement of receipt, clearly setting out what would happen next.

Of course my first mistake was not reading the independent review sites - but when I look at those now it seems that I came off lightly!

In the email it stated that the target to repair and return the phone was 24 hours - but this could occasionally take longer. Fair enough.  However this was Wednesday.  By Friday I was getting twitchy but decided to leave it the weekend and so I rang, using the thoughtfully provided 0800 number on Monday.  Tom from customer service told me there was 'obviously' a backlog but he would look into it.  And he did return my call as promised to inform me they had new screens arriving the next day so it could be repaired on Wednesday.  A whole week later than the 24 hours quoted.  On Thursday I had to chase again and, after making a bit of a fuss, received a guarantee from Tom that I would have my phone back by the weekend.

By this time I was feeling pretty let down by this service so decided to take up the option offered in the email to leave feedback on their FaceBook page.  I was polite but expressed my dissatisfaction - along with hopes for the safe return of my phone by Saturday as promised.  Interestly the next time I looked at the Facebook page my comment was deleted.

The phone did arrive on Saturday and the repair seemed perfect.  But I would not use them again and I would not recommend them to anyone else.  Having done so many things right (promotion, positioning, website, etc.), why did this company end up in this situation?  Yes they are busy right now and may not have an eye on the long term future of their company, but it is a competitive field and customers will soon find other suppliers who can meet their needs.  Even if they are victims of their own success there are things they could have done to manage the situation and keep me on their side:

  • The minute they knew they were not going to meet the 24 repair time they should have given me an update with a sensible forecast of when I could expect my phone returned.  Managing expections is the number one rule - and I should think would have saved them lots of time dealing with phone calls.
  • Their price and service promise was way ahead of the competition and was, perhaps, never sustainable.  If they were in touch with the market they would know this and could introduce alternative service and price packages.  I would have paid extra for a GUARANTEED 24 hours repair.
  • The Facebook page was promoted in all their emails but poorly used.  People posting questions and comments rarely got a response.  Even when someone complains, as I did, the better way of dealing with this is to apologise and explain.  Social Networking is about engaging with customers not ignoring or filtering comments.  Incidentally even my, slightly backhanded, comment about the final repair being good has now been removed!

The website now has a single line on the home page stating that Due to an influx of repairs we are currently working outside of our 24 hour schedule - better but not enough!

As mentioned, if I had read the review sites it would have been obvious to me that this company has problems.  I don't think it is a scam as some claim (I received a good repair) but it surely is not a good way of building business for the long term. When you're thinking about your products, your portfolio and your marketing do not neglect to pay full attention to the customer experience you are delivering. Otherwise all your best efforts as promotion and selling can go to waste!

 

Comments

Dear Sharon,
On reading the short version of this on the email I was confused so opened and read the full article.
My confusion was in the comment "So it stands to reason that all businesses would prioritise customer service, right? Wrong! Businesses that mess up on customer service don't just lose one customer, they lose numerous customers."
On reading the full article I understood where you came from on this one but have to say this is not applicable to all businesses ( and maybe should have stated that ). Your experience was with a company in a packed highly competitive market place that clearly could not fulfil there advertised service level.

My company on the other hand does not raise expectations above what we can achieve, and relys very heavily on providing professional and exemplorary service to our customers. To this end we are going to use customer comments in our marketing to promote our products and services as referrals play a big part in us gaining new business.

Thankfully our business is different to the iPhone fixer. We produce software for Local Authority Passenger Transport & Meals on Wheels departments. It is written by us, delivered by us and supported by us. So you could say we have a much greater control on the level of customer service that we can provide as we are not reliant on parts and we have a limited number of customers.

I do however totally agree with your advice points at the end. There is nothing worse for a customer to be waiting and wondering what is going on. Keeping them informed is paramount and I have to say part of focusing on customer service.

On another note to this, independant review sites can be a double edged sword and at times misleading. I recently booked a hotel then read the reviews and promptly cancelled it. I rebooked having trolled through numerous reviews on Tripadvisor and had a wonderful stay in my final choice.

However, some of the reviews for the hotel I cancelled were wonderful but very old. the more recent were the damming ones. The hotel ( B&B ) we stayed in had moved so a number of the reviews were of the old property and location so irrelevant. Thankfully the recent ones were absolutely on the money.

You also get people sounding off for no good reason which if the reviews are scored and go towards an overall score squews the picture. Classic one yesterday, someone had marked a USB Storeage device down on the look of it !

There's just no pleasing everyone is there !

Really enjoy your articles, very thought provoking and informative

Keep up teh good work

yours sincerely

Richard Clark MBCS CITP
Managing Director
KL2
Comment by Richard Clark - Oct 22, 2010 09:39
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