Tuesday, September 12, 2006

Company Policies and Customer Focus

Lately I have been noticing how little companies that I do business with, both personally and professionally, appear to care about their customers. OH! They say they care about their customers but when push comes to shove or there is a problem it takes an act of congress to get anything accomplished.

For example: My XM2GO radio needed the replacement battery because of a recall. They told me they were sending one for EIGHT MONTHS but every time I called they told me that I would have it in 10 weeks (Every 10 weeks, I called them). Finally I called the presidents line at XM and they couldn't even help me. I finally called back in to their main number and had to talk to a guy in their product department to get them to send me a battery! Why did it take me calling every 10 weeks? Why couldn't their presidents line help me? Why did it take so long to get my replacement battery?

The bottom line is that business has become so complex and so competitive (which by the way is supposed to be good for the customer) that margins are very thin and in order to compete companies have to cut costs. Companies have stretched themselves so thin and developed processes that work for the 80%--then they ignore the other 20% or don't create a "bucket" to catch those people when they fall through the process. What companies do not understand is that by provided better customer service and just taking care of the customer that many people will pay a premium just to know they don't have to deal with the issues.

This has created much frustration in industry and people mostly have a very poor perception of companies that have historically had a very good reputation. It's a very sad state of affairs and I am not sure what to do to fix it other than to tell companies to empower their employees to help their customers. If they don't they will lose their customers.

-Paul

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