Your Call Is Important to Us -- Not!
Why some companies do a poor job at customer service while others excel.
July 10, 2007 — -- What's the difference between Fed Ex and Bank of America?
One knows customer service and the other doesn't, according to consumer surveys.
So, who does the job well and why do so many companies still put their customers through hell by putting them in an automated phone merry-go-round or flaunting a rude and indifferent attitude?
According to the sources we consulted, these companies are consistently cited for the quality of their service:
Starbucks
Nordstrom
Four Seasons Hotels
Lexus
LL Bean
Chick-fil-A
Ritz Carlton
FedEx
UPS
Cadillac
Companies that score high believe in a culture of service. "These firms know that there are so many choices out there for consumers, if they don't please them, they'll go on to the competitor," says Horrell.
He cites Starbucks as an example. "They make that experience enjoyable, and I'm willing to pay for it," says Ed Horrell, the host of a radio program, "Talk About Service," and the author of "The Kindness Revolution."
"I can get a cup of coffee at Burger King or McDonald's for a third of the price, but you don't get the same experience."
Those top-rated companies recognize that much of their success is due to word of mouth, explains Marc Karasu, a former executive at Yahoo. "American Express seems to do a good job. So does Nike. They recognize the value of their customers referring them to friends. Those are the companies that tend to win over time."
But why do so many companies not get it?
A combination of factors, from the increasing reliance on automated phone systems to companies slashing budgets for their customer service divisions to disgruntled employees passing on their frustration, has provoked customers into voicing their complaints about the way companies treat them.
The latest target is Sprint, which made headlines Tuesday for booting 1,000 customers who habitually complained about their service.
Other recent examples include AOL, which attracted notoriety after a recording of a customer's inability to close his account became an Internet sensation, and Best Buy, which refused requests to redirect calls to stores.
The worst offenders invariably tend to be cell phone companies, cable TV companies, airlines and banks. These companies are among those that turned up in surveys by consumer and customer service consultants: AOL, Albertson's, Bank of America, Best Buy, Dell, Day's Inn, Home Depot, Sprint, Wells Fargo.
"I probably speak to 25,000 people a year, and every time I speak, I'll ask whether anyone thinks customer service is improving. Nobody raises their hand," says Horrell.
Horrell believes that companies have disconnected from what their customers really want because they don't train their customer service reps properly and they outsource those services to other countries. "What I found is that customers don't expect perfection, but a reasonable attempt to show that someone cares as opposed to the general attitude of indifference," he said.