The Cost of Customer Service

A detailed Summary of The Cost of Customer Service


"A Customer can fire everyone from the chairman on down simply by spending his money somewhere else.", Sam Walton. Service effectiveness should always be considered when cutting cost. The one area that often suffers the most when the cost cutting axe falls is customer service. The irony is that customer service is the one place where more resources should be devoted. If for nothing else, to compete with other companies in the process of cost-cutting.

Customer service involves an array of activities to keep existing customers satisfied. An example is computer software manufacturers who allow consumers to telephone them to discuss problems they are encountering with the software. Servicing equipment in the field and training new users are other examples of customer service. The term user-friendly is sometimes applied; the firm wants to develop a reputation as being easy to do business with. Firms continually monitor the levels of customer service they--and their competitors--offer. No-one can put a pri


Word of mouth is the most efficient and truthful form of an advertisement that a company has. They can build a reputation for their company simply by providing excellent Customer Service or by providing horrific Customer Service. How can one calculate the value to a company when the front desk person has a nice smile and pleasant personality. I guess what I am trying to say is, that it cost a company money to have poor customer service but you can't pay enough for good customer service.

ce on good Customer Service, but they can put a price on bad Customer Service.

I have also had an experience with my long distance carrier. I was using Sprint long distance services when, AT&T called to offer me a better rate. AT&T offered me the world and they were willing to change my service over with absolutely no charge or disruption to my service. The Customer Service Representative was so helpful and courteous. Approximately one week later, Sprint called me to find out why I had switched long distance carriers. I explained to them that AT&

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Approximate Word count = 706
Approximate Pages = 3 (250 words per page double spaced)

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