It's just BS

Two guys were behind me in the TSA checkpoint line at the airport. I couldn't help but overhear their conversation. One was telling the other about a recent trip to a local store. "You won't believe it; they actually had a real live human being who greeted me at the door and asked how she could help me. It was like, old school stuff!" Clearly, he was excited about human interaction at a store, which, sadly, indicates how low the bar has been set.

We've all had both good experiences and, dare I say, horrible experiences as customers. Sadly, the bad outweighs the good, not only numerically but also in our memory. You will likely remember and share a bad experience more frequently than a good one. The bottom line is Bad Service is running rampant, and it's costing companies trillions of dollars. Yes, with a "t". Qualtrics XM Institute recently shared the results of their 2024 survey.:

"As part of our latest global consumer study, Qualtrics XM Institute asked over 28,000 people across 26 countries how they responded to their recent bad experience(s). We then calculated how their changed spending behavior affects different industries. Our analysis reveals that $3.7 trillion of 2024 global sales are at risk due to bad customer experiences."

My guess is a bad customer service experience has changed where you buy on more than one occasion. I know it has for me. In the study, restaurants are the hardest hit, with 64% of people saying they would never return after a bad experience. 22% say they would never return to a car dealer after a bad experience.

As professional consultants charged with being a source of business intelligence and a resource to our clients, we could help them with things like secret shopping or customer surveys. Because we are in the customer service business, these lessons apply equally to our service levels. Reality check: You can buy advertising from anyone anywhere or even over the computer. What separates you from the other media companies in your market? You! And the level of customer service you provide.

One of my early mentors, Don Beveridge used to say: "You can never maintain a long-term competitive advantage based only on product or price. It's what you do beyond the product that truly matters." There is lots of research and writing on the topic of customer service, so to simplify the complexity, it boils down to four key ingredients:

Effective Communication: Clear, respectful and timely communication helps customers feel heard and valued. It's essential to listen actively to their needs and respond appropriately through phone calls, emails or in-person interactions.

Empathy and Understanding: Empathy involves understanding the customer's concerns and emotions. This builds trust and rapport, making customers feel cared for and respected. Tailoring your service to their unique situation can lead to more positive experiences.

Responsiveness and Timeliness: Customers appreciate quick and efficient service. Being responsive to inquiries and resolving issues promptly is crucial for customer satisfaction. Proactive follow-up also helps reinforce a positive experience.

Knowledge and Expertise: Providing knowledgeable and informed responses instills confidence in the customer. A deep understanding of your product or service enables you to offer accurate advice and solutions that help meet or exceed customer expectations.

Those, of course, are the "basics." We can and should be doing much more to provide superior service. We've created the "Superior Customer Service Checklist" at RAB to get you started. It gives you some great thought-starters and ideas on what you can do to make your customers feel special. It's also a great meeting topic to take our list and brainstorm additional and unique things you can do with your team.

Globally, $3.7 trillion in sales will be taken away from companies that provide bad service (BS). The real question is, will those dollars be directed at you?

If you'd like our tool, "The Superior Customer Service Checklist," just email me at Jeff.Schmidt@RAB.com, and I'll gladly share. Jeff Schmidt is the SVP of Professional Development. You can reach him at Jeff.Schmidt@rab.com. You can all so connect with him on X and LinkedIn.