The age of uSwitch took many companies by surprise. The fact that customers can simply ‘up-sticks’ and buy services from a competitor virtually instantaneously, still confounds many companies. An industry hit badly by this customer-led revolution is the utilities sector. Some providers have begun to offer increasingly attractive deals, hoping to tie customers in for long profitable contracts. The mobile phone industry, by its nature saturated, has responded to the switching culture with instant ‘gifts’ for taking out seemingly never ending contracts. Orange, for example, has recently introduced the 36 month contract tying customers to £10 a month for three whole years. Yet amid the price wars and contract battles, companies are in danger of neglecting a key component of the equation – keeping customers happy.
As the UK approaches the end (possibly!) of the recession, it would do well to consider this point. A widely reported survey from market research firm One Poll, released this year, found that six out of ten people had switched companies because of a poor level of customer service. Also, in a 16-country survey, Genesys Lab found that poor customer service costs $338.5 billion per year in lost business. It is clear that short-term promotions and long-term contracts are not the solution.
At the centre of all customer relationships is the ability of an organisation to communicate promptly, rapidly and usefully with customers. The ability to please a customer in the first instance, placate where things have gone wrong and provide support for technical problems are all part of a company’s commitment to each new customer. The recession has caused companies to lose focus as they go for the quick new business wins, and attempt to gain business at any cost. For example, can you ever remember there being so many sales and reductions on the highstreet before Christmas?
Of course there are other factors at play, for example, the continued move to internet retailing. These factors serve to confuse the most important issue - if companies want to properly adapt to the age of uSwitch and online shopping, they need to reassess how they look after their customers. Only by providing a consistent and outstanding customer service from end to end, can companies ever provide the added-value necessary to stop customers ending up ‘down the road. And this means polishing everything from the shop floor to the call centre.
