Category Archives: Why Bother with Customer Service

Things You Should NEVER Tell Your Customers

Managing customers is tough because they typically expect the world and they expect it for bargain basement prices.  If you interact with customers you will inevitably come across a time when the relationship becomes difficult.  In order to ensure your company doesn’t go bankrupt serving customers, avoid making these common mistakes.

NEVER Admit Regret or Fault

  • We Were Wrong – Admitting fault is a cardinal sin in customer service.  Customers call for the primary reason of getting something for nothing.  Many companies try to create cultures where the “customer is always right.”  Don’t make this mistake.  If your customer service reps make the mistake of admitting they were wrong, you can be sure that your company’s profitability will suffer.
  • I’m Sorry – Admitting regret (even a little) puts your company at a disadvantage when dealing with the customer and limits your ability to extract yourself from the confrontation.  And while it sounds innocuous enough, when a customer senses weakness you can expect them to ask for product rebates, service term extensions, discounts… the list never ends.

AVOID Guarantees of Any Kind

  • We Guarantee Your SatisfactionImpossible, so why bother saying it?  Customers who want to fleece your company for all they can will use this statement as a never-ending series of excuses to keep changing what they want.  You delivered the pink iPod?  They want the blue one.  If your company is so poorly run to make a guarantee like this it deserves to pay the shipping… twice!
  • Money-Back Guarantee – We live in a free-market economy with more information than ever available to consumers.  Before they make a choice they can read reviews, shop for prices, compare competitive products, etc.  So once the transaction is complete, you’ve more than earned every cent you receive.  Plain and simple, it is a rookie error to offer money back to unsatisfied customers.

The pivot point when serving customers is to ensure your company does NOT give ground to consumers who will otherwise destroy your bottom line.  Create the appearance of a loophole in your customer service policies ONLY at your own risk.  

Happy April Fool’s Day! Did I trick you?

American Airlines’ Poor Policy Costs $75,000

A recent experience trying to get a standby seat on an American Airlines flight left me baffled.  What does it say about a company if they could treat you well, but don’t?  Does such a company value your business or take it for granted?


  • The plane had available seats.
  • I had a ticket on a later flight.
  • The gate agent said that American Airlines’ policy was that I couldn’t get a free standby seat.  (Not a friendly policy, but I can understand that they might want to charge a “change fee” to take a different flight.)
  • BUT adding insult to injury, the policy also prohibited the option of paying a change fee to take the earlier flight.  Huh?  Are they afraid they’ll run out of peanuts?

It used to be that customers could take an earlier flight, if space were available.  Now, even when space is available you can’t buy a seat?

From a customer experience perspective this policy is, well… stupid.  The policy is just as detrimental from a business perspective because customers have choices.  In this case, I walked further down the terminal to a rival airline (Southwest) and paid $250 for a ticket.  What did/will the policy cost American Airlines?

  • An unsatisfied customer who will relate the poor experience via word of mouth
  • A nominal change fee
  • Approximately $75,000 (future value of my air travel)

The pivot point is that companies should seek ways to serve customers and earn their loyalty instead of implementing policies that alienate customers.  Last I checked the airlines weren’t so healthy that they could look down their noses at customers.  But if American Airlines chooses to implement such a policy, then consumers can certainly choose to take their business elsewhere – I did and I will.

What companies have earned your scorn and lost your business?

3 Ways to Quantify Customer Service Success

One of the reasons customer service is often relegated to the sidelines is that companies struggle to understand the value of delivering the service itself.  How much better could a company perform if service improved from good to great?

A recent HBR post by Whitney Johnson made me think about how customer service professionals can measure the value they provide.  We aren’t sales people, though we impact revenue.  We aren’t marketers, yet our frequent customer interaction shapes the brand (for better or worse).  Here are 3 ways to define the impact of customer service on company success.

  1. Renewal Rates – When customers continue to purchase a subscription (in the case of SaaS) or maintenance (in more conventional software license models) they are literally voting with their wallets.  An improvement in renewal rates increases the customer lifetime value and translates directly to profitability.
  2. Satisfaction or Loyalty Scores – All companies should measure customer perception of their organization, its products, and services.  Whether the measure is a customer satisfaction (CSAT) or loyalty through a measure like NetPromoter Scores, it is imperative to track changes in customer feedback.  Even the rate of response is something to measure since a decrease in response rate could signify a weakening loyalty to your company and its products.
  3. Referral Rates – When customers stake their reputation on your products/services you have achieved a level of loyalty that helps your sales team in future prospecting.  This premise is so important that companies will go to great lengths to ensure their first customers are true fanatics.

A word of cautionthese measures cannot be used in isolation and must be used together.

  • High renewal rates with low satisfaction measures indicate that you have customers firmly in your grasp, but that customers want to escape as soon as possible.
  • High satisfaction rates coupled with low renewal rates may signify that your products/services are becoming less relevant in the marketplace.

The pivot point is that when customers tell us and others about their satisfaction and follow-up by renewing services/products, then we can be confident we are adding value.  Measuring the attributes above is a good start to gaining insight into the size and scope of the value.

What measures have you found useful to use when trying to quantify value?