Admin

Customer Service and Customer Loyalty - Why is it dying?

By
Services for Real Estate Pros with Austin Texas Homes, LLC 605157

As much as I don't want this posting to turn into a rant, I might not be able to help it.  I have had a really rough and interesting week in the customer service world - shocking, appalling and extremely eye-opening!  I want to share a couple of things that I experienced this week.  I also want to pose the question, "Customer Service and Customer Loyalty - Why is it dying?"

It seems that the lifetime value of a customer is perceived to be zero.  Why do companies spend millions of dollars attracting new customers when it is easier and much more cost-effective to retain the ones they have?  I am not saying that a company shouldn't grow their business, but why do companies offer little-to-no incentive to continue to do business with them?  Has the continuing evolution of technology completely replaced almost ANY kind of face-to-face or voice-to-voice communication?  These are just some general questions I have which will probably prompt a little interaction on this post.  In the following lines of text, I will NOT be protecting the identity of the guilty parties.  *Sigh*

United Heritage Credit Union (formerly Bergstrom Federal Credit Union)
Member since: 1981
Issue: There was an unauthorized transaction on my account which resulted in a negative balance.  Consequently, I also had some transactions that upon posting, generated quite a few NSF fees.  In addition to their don't-care attitude, no one has made an apology or the slightest effort to investigate the issue.  I have been a customer for quite some time.  Apparently, 3 decades of customer loyalty means absolutely nothing. I have since changed financial institutions and never intend to go back.

State Farm Insurance (I'll exclude the specific agent)
Customer since: 1996 (my parents have been customers since 1981).
Insurance Policies: Home, multiple autos, multiple boats, personal articles
Issue: Of course, after having to abruptly change banks, I cancelled my auto-draft payment.  I was told by their representative the best thing to do is let my policy expire and then reinstate it.  I was told I owed no balance and could reinstate my auto policy for roughly $50-$60.  Today, I receive a phone call stating I owe 3 months worth of premiums (it was autodrafted monthly the entire time)?  What the heck?  Again, I was encountered by a don't-care, apathetic attitude.  My other browser window is currently obtaining insurance quotes.

Sprint PCS
Customer since: 1999
Issue: Out of the 3 lines on this plan, I wanted to make an adjustment to 1 phone number.  I called customer service and was told I needed to take the issue to the Sprint store.  The Sprint store tells me I need to call customer service.  I really don't have time for this...

Time to switch from multiple companies after several years of business...  After more than a decade in retail and now in real-estate, it seems I was definitely taught a different philosophy in the realm of customer service.  It does make me think, though.  Do I appreciate my clients?  What lengths am I willing to go to keep their business?  I thank these three companies for giving me some insight as to what NOT to do!


Photo Credit: Condiment note - http://www.tuvox.com/blog/conserve-those-customers/

Show All Comments Sort:
Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

If you have customer support, or even better, some supervisory VP level email addresses, I'd be happy to let these business know that I will not be referring any business over to them unless you are treated fairly.

Aug 25, 2010 11:13 AM
Donald Tepper
Long and Foster - Fairfax, VA
DC area investor helping heirs of inherited homes

Customer service is dying because there's generally no incentive for the front line folks to provide it.

I've got two examples of dealing with a local Verizon Wireless store--one good, one bad--that shows just how variable customer service can be.

Both issues involved a new phone (a Droid Incredible) I'd bought. It syncs up to your Google account, and can do all sorts of interesting/useful things. But I was having trouble getting mine to sync.

  • Example one: I walked into the Verizon store, entered my name on the computer, and got in the queue. I had my new phone, my old phone, and tons of other stuff. My name finally gets called. The guy appears knowledgeable and (superficially) helpful. But he tells me that the problem appears to be with my Google account, not the Incredible. OK. So I ask: "Where's a computer I can log into my Google account and make the fix?" Sad face on the sales rep. Regretfully, he informs me, there's no connection from the Verizon wireless store (which sells all manner of Internet-enabled phones, as well as Netbooks and small Notebooks) to the Internet. None. Very unfortunate, but that's just the way it is. So, I ask, I have to drive all the way home, get on my computer, make an adjustment, then come all the way back? Yes, he sighs. That's the only alternative. So I do that--20 minutes home, 5 minutes on the computer, 20 minutes back, then in the queue for another 15 minutes.
  • Example two: I end up with a different person to help me. She doesn't really know what the problem with the syncing is, but pulls out a Netbook, instantly logs onto Google, and hands the Netbook to me. First guy was just lying to me about no connection. She tries to help me, but we can't figure it out. So she gets on the phone and calls Google--which really discourages phone support. But she's trying. Another sales person there overhears what's going on, and he's a real techie. He figures out what's wrong (saved data was saved to the SD card, not the phone), and straightens it out. (And, Verizon: The two good folks were Any and Natalie at the Kamp Washington, Virginia, store.)

So sometimes it's not the company's policy to offer good or bad service, but the luck of the draw.

There are also a couple of commercials on TV that really capitalize on this. Can't remember the advertisers, unfortunately. But in one case, some guy is calling his bank about an erroneous charge. A husky male with an Eastern European accent identifies himself as "Peggy" and proceeds to provide no customer service at all. In another series of commercials, a guy with a "traditional" bank mistreats customers--little kids who find, for instance, that they can ride a new bike, but only in a very constricted area.

So companies that see a value to customer service--or who have it ingrained in their corporate culture--are likely to promote it. But it seems a growing number of companies don't understand that value.

Aug 25, 2010 11:29 AM
Rodney Mason, VP of Mtg Lending
Rate, Inc NMLS# 2611 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

I encounter the "do not care" attitude way too often.  Some stores use secret shoppers, others don't.  That is the only way that many of them can actually see how the customers are treated. 

Aug 25, 2010 11:33 AM
Garth Jones
Prudential Tropical - Valrico, FL

I attended Raincamp Orlando yesterday, and was impressed by the response a good Twitter tweet can get, of course you may need over 5000 followers for it to have any impact.

The reality is there are so many companies that talk the talk of customer service, but let it die when it really matters, which is when a customer needs help.  The only real message you can deliver is to take your business elsewhere.  If we all excersize that right, then maybe they will get the idea before they die.

 

Aug 25, 2010 12:28 PM
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

James, it's been a while since I've visited your blog, and I've noticed a lot of issues with customer service myself lately. On the other hand, try my Saturday morning post for a good chuckle...it's not ALWAYS the fault of the company... sometimes it's their customers:  Saturday morning in the Drive Thru

Another thought, since you seem to be being deluged with customer service issues:  there must be a TEST in this for you somewhere. One thing I've always found is if I don't "pass the test"  I get another chance to get it right (another "situation" will be my teacher). Praying for wisdom for you in this situation. No one likes to have to take a re-test!

Aug 25, 2010 12:40 PM
James Johnson
Austin Texas Homes, LLC - Austin, TX

Ralph,

Unfortunately, I do not have any VP level connections with these companies.  I am a pretty patient and understanding person, but when I've had enough it's pretty much impossible to recover my business.

Aug 26, 2010 07:20 AM
James Johnson
Austin Texas Homes, LLC - Austin, TX

Donald,

I understand that customer service varies DRASTICALLY between employees.  However, I was always "brought up" in companies where the value and importance of customer service was simply instilled within its employees.  If you chose not to uphold those values, you didn't work there anymore...

Thanks for the read and sharing your experience!

Aug 26, 2010 07:23 AM
James Johnson
Austin Texas Homes, LLC - Austin, TX

Garth,

I agree.  And I believe that we will start to see companies "die" as they continue to promote the wrong attitudes.

Aug 26, 2010 07:24 AM
James Johnson
Austin Texas Homes, LLC - Austin, TX

Lisa,

Enjoyed reading about your DT experience!  Yes, having worked on the "other" side of things a great deal, I understand customers can often be the issue...

Although I do not agree with the statement, "The customer is ALWAYS right," I do feel that they are always important.  The issues I had aside, I just feel as if nobody was the least bit concerned about the experience I had with their "service."

Aug 26, 2010 07:30 AM
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

James:  Trust me, this is just a test....

Aug 26, 2010 11:42 AM
James Johnson
Austin Texas Homes, LLC - Austin, TX

Lisa,

I believe you're right!  Let's just hope I pass it!  Maybe God is just trying to move / change some things in my life that I would ordinarily leave alone...

Aug 26, 2010 11:48 AM
Michael J. Perry
Fathom Realty - Lancaster, PA
Lancaster, PA Relo Specialist

I have found myself making changes where we do business for the same reasons !!!

Aug 29, 2010 01:18 AM