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Customer service in today's economy

by Kelbra Fleiss

Created on: December 19, 2009

Companies are likely to win in good and bad times when they come up with simple low-cost ways to trim costs while improving life for customers. That is the philosophy of BMW executive Alan Harris whose company is number twenty-two on the list of the best customer service companies of 2009. Numerous companies have been downsizing in the current economy, and to be on this elite list is an accomplishment. 

Industries have managed in the downsized economy by cutting costs, consolidating facilities, using backup employees in staff shortages, cross training, implementing a better training procedure, placing emphasis on regular customers, and preventing cuts in customer service. The customer service employee is on the front line and can often make or break a company. If that person is overworked with poor morale, the company will suffer. In today's economy with the intense competition and the rise of Internet spending, a company must be on the cutting edge of cost containment and customer service excellence. Many companies have failed at these tasks.

Corporations such as Dell have outsourced many of their services including customer service, causing sales to suffer. A business arm of the company is in the United States, but the residential customer must talk to an employee in a foreign call center. Often communication problems arise, resulting in a poor customer service rating. Because of this issue and others, Hewlett Packard has now surpassed Dell in sales and service, and is on the list of the top twenty-five companies in customer service. The stock brokerage industry has also had its share of problems 

A large stock brokerage firm has downsized in the past year as part of the stock market collapse. The company took pride in its customer service and reputation as a full service brokerage and, at one time, was on the list of the best companies. Many customer associates were able to work with clients and take orders. However, a partial hiring freeze caused customer service to take a hit in these poor economic times. Retail stores have taken a hit as shown by the following story about a customer's experience. 

Many retail stores have felt the economic slowdown and are closing their doors or eliminating stores. They hire teen and other help without much training, causing problems with their image. A customer purchased a gift-wrapped present for a relative, but when the recipient opened the box, it was empty. When the customer returned the non-gift to the upscale young adult retailer, the clerks laughed, instead of apologizing to the customer. This large retail company has lost a large part of its customer base in the past year. 

The firms on the elite list have managed to excel in customer service, and other companies should take notice. Management strategies, such as taking care of employees and customers and implementing innovative techniques are the keys to success. When customer service representatives feel good about themselves and their companies, they will extend their hands to consumers who will, in return, show loyalty to these top-notch companies, by doing business with them. 






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