Bad customer service: what are the consequences?

Everyone knows the importance of customer service, in general. If you are in business, you should not only know it but, you should put good customer service into practice. Do as expected at the minimum and exceed it if possible. Try the opposite and see what happens. Or else, read on for more information.

Diminishing business

An affected bottom-line The worst thing that can happen as a consequence to poor customer service is an affected bottom-line. This is best illustrated through a (real life) example. A real life example An up-scale restaurant has signed up with a (deep) discount provider (like Groupon) to be publicised in the (highly trafficked) website of the latter. It thus offers a set meal coupon for two at a discount of 50 per cent. Members either sign in to the site directly or through their Facebook accounts. Those who have gone and experienced the food and service then start to comment on Facebook. These comments are pulled into the provider's site just below the coupon and 'fine print'. Do you think this will affect the number of sign-ups if there are many unfavourable customer service stories? Play your role A business gets publicity and new customers by signing up and members of the public who buy, enjoy deep discounts they won't otherwise get. Both parties find each other through the provider and that is how the provider makes money. Basically, it is a win situation unless one of the parties defaults.

Poor reputation

The reputation of the business Does bad customer service affect the reputation of a business? Of course, it does. What is one of the best cost free ways of obtaining more customers?
It is certainly the word of mouth referrals. It almost feels like effortless publicity and the better it gets, the better it gets. Unfortunately, the same holds true for the contrary.

Increasing competition

Competition If you are in business, you are probably aware of competition. Who is your competitor and where? It is usually more productive to concentrate on your own business rather than beat down the competition, unless your competition is beating you down. This by itself is usually not much of an issue until you make a slip, such as providing a customer service experience that leaves your business at a risk.