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How Bad Customer Service Affects Your Business

April 26, 2017

bad customer serviceIf you think that not handling your customer complaints, suggestions, and questions the right way is not detrimental to your business, think again. Bad customer service actually has a very huge impact on your business, and this impact can mean the demise of your enterprise. In other words, poor customer service will result in the eventual downfall of a company.

Why does a bad experience with customer service equate to the possible collapse of your business if things are not changed? For starters, customers know their rights and they know that you are not the only one offering what you have to people. It does not matter that your product is superlative to others, as long as the customer does not feel that all their expectations and needs are not being met (and this includes how they expect to be treated), you will definitely find them going for what they need elsewhere.

Any which way you look at it, bad customer relations will always spell losses for your business, and these include the following:

Loss of Return Customers – why would you ever go back to a company that does not treat you right? Even if you love the product, when you are being treated abhorrently by the company that makes such a product, you find alternatives to what you love. There are other companies who will love to get you to patronize them and even if their product is not at par with the one you are used to, just because they treat you the way you deserve to be treated, you will choose them over the other.

Loss of Future Customers – sure, the high quality and reputation of your product will indeed be talked about and will precede you, but then again, so will your bad customer service. Always remember that no matter how good your product is, if people are not treated the right way, word will travel that you do not take good care of your customers and people will be out the door before they even try your samples.

Loss of Income – when people stop buying what you have or stop patronizing your business, you lose any income that should have come from those individuals. In order for a business to survive, money has to come in for the continued production of your product, the payment of workers’ wages, and the continued operation of your business. Not taking good care of customers will definitely mean the reduction of income generated.

Loss of Workers – people who work for you need to be compensated for their work, and when no income is generated, what will you use to pay them? You may have enough capital to continue employing people and paying them their wages, but how long will such a thing last if you are not earning anything? This will eventually mean downsizing, which means you will not only lose the people who work for you but also their expertise.

All of these losses will soon take its toll on your business, and closure is what will happen. So, if you think that bad customer service does not affect your bottom line, think again. Always keep in mind that customers are the lifeblood of any business and it does not take much for you to treat them the way that they are supposed to be treated – with respect, courtesy, and kindness – as they expect and is what good customer service is all about.

“Axiom does a phenomenal job making sure we are up to date with technology, keeping us secure, up to date, and my staff happy. We’re both on the same side of the table.”
– Ray Kubick, Northwestern Mutual

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