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| | The American Business Club Network is not currently active and cannot accept new posts | | Outstanding Customer Service | Views: 313 | | Apr 12, 2008 5:03 am | | Outstanding Customer Service | # | 
Eva Abreu | | What is an example of outstanding customer service that you have personally provided in the past?
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Describe an example of outstanding customer service that you have received from an individual or business.
Our focus will be on positive experiences in business and how we can strive to achieve the best in customer relations and service.
Looking forward to hearing your stories!
Eva Abreu, Professional Speaker & Organizing Coach
http://www.Sort-Things-Out.com
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Executive Producer, http://www.EvaAbreuProductions.comPrivate Reply to Eva Abreu | | Apr 12, 2008 8:01 am | | Outstanding Customer Service | # | 
Mike Fesler | | Great question !!
I have been very fortunate to be on the receiving end of exceptional customer service.
Which feels great and well remembered through loyalty!!
But for me,
I strive everyday to have the honor to give exceptional service, with every waking moment.
The ability to absolutely let that individual client know that they have received an unexpectedly high, true value for their money, is worth more than the money its self: in self-worth, and professional pride!!
But it does pay to give great customer service in real dollars and sense too.
It pays in many ways, the first of which is long-term customer retention. Many businesses understand the cost of acquiring a customer, but they don’t understand the cost of losing one. In fact, it costs five to six times more to acquire a customer then it does to business with a current or former customer.
Figure out how much it cost to lose a customer.
The formula is based on information from U.S. Office of Consumer Affairs.
You need to know three figures to complete the formula: your annual revenues, the number of customers you have and your cost of acquiring and keeping them, including marketing, sales, advertising, promotions, discounts, etc. You can use dollar amounts or the percentage of sales to help you determine the cost of poor service.
Lost Customer Revenue
A. Annual Revenue $500,000
B. Total number of customers 600
C. Percentage of dissatisfied customers X .25
D. Number of dissatisfied customers (CxD) = 150
E. Percentage of dissatisfied customers who are likely to
switch X .70
F. Number of dissatisfied customers who will switch = 105
G. Average revenue per customer (A/B) $833.33
H. Revenue lost through poor service (FxG) $(87,500)
Lost Opportunity Revenue
I. Number of other people dissatisfied customers tell (Fx10) 1,050
J. Number of potential customers who buy else where due
to negative word of mouth (assume one in 50 tell,
therefore 1 multiplied by .02 then multiplied by I) 21
K. Potential lost revenue (JxG) $(17,500)
Customer Replacement Costs
L. Customer acquisition costs (66%xA) $ 330,000
M. Average cost per customer (L/B) $550
N. Replacement cost for customers (Mx5) $(2,750)
Total Costs
O. Total annual cost (H+K+N) $(107,750)
P. Total cost over customer’s lifetime of doing business
For 10 years (Ox10) $(1,077,500)
As you can see from this frightening example, our hypothetical company will lose more than $107,750 a year due to poor service and customer retention. Now fill in the same chart for your company. Your results will probably motivate you to improve your customer service and retention efforts.
WHAT YOU WILL LOSE:
Fill this chart for your own company.
Lost Customer Revenue
A. Annual Revenue $
B. Total number of customers
C. Percentage of dissatisfied customers x .25
D. Number of dissatisfied customers (CxD) =
E. Percentage of dissatisfied customers who are likely to switch x .70
F. Number of dissatisfied customers who will switch =
G. Average revenue per customer (A/B) $
H. Revenue lost through poor service (FxG) $
Lost Opportunity Revenue
I. Number of other people dissatisfied customers tell (Fx10)
J. Number of potential customers who buy else where due
to negative word of mouth (assume one in 50 tell,
therefore 1x.02)
K. Potential lost revenue (JxG) $
Customer Replacement Costs
L. Customer acquisition costs (66%xA) $
M. Average cost per customer (L/B)
N. Replacement cost for customers (Mx5) $
Total Costs
O. Total annual cost (H+K+N) $
P. Total cost over customer’s lifetime of doing business
For 10 years (Ox10) $
Blessings,
MPrivate Reply to Mike Fesler | | Apr 17, 2008 3:53 pm | | re: Outstanding Customer Service | # | 
Steve Novak | | Eva,
Good customer service doesn't have to be onerous. It's often the little things that stand out.
I was in Chicago last weekend and took the train (Metra, L, or something) into downtown for a meeting. This was only my second time in Chicago, and my first time riding the train. I went to the station right by my hotel, and immediately realized that something just didn't seem right. There were a number of transit workers directing people, which were moving in a large group. I was standing there looking obviously confused when one of the transit workers asked me if he could help. I told him I was going downtown, and he explained that there was maintenance on the tracks and that buses would take everyone down to the next station where we would board, or re-board, the train. The train to bus to train setup was efficient and everyone was very helpful. My first experience with the Chicago Transit Authority left me with a good impression, and I would recommend riding them to anyone visiting Chicago. That's what customer service is all about.
Steve Novak
PPR Management Services
Improving Profits by Improving Performance
http://www.pprmanagementservices.com
Let's Talk Business!
http://letstalkbusinessblog.blogspot.com
Private Reply to Steve Novak |  | |
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