Positioning Customer Service as a Profit Generator

It can be difficult for executives to consider the impact on customer service when making strategic decisions about their companies. They often lack direct contact with customers, and the limited customer service data they have is not as comprehensive, easy to understand, or reliable as the financial reports they are so comfortable using. However, leaders must understand that outstanding customer service is not a  cost to be minimised; it's an investment in future profitability.

Below is a summary of the solutions:

• Executives must capture and analyse customer satisfaction data to ensure strategic decisions are not based solely on financial metrics.
• Customer service leaders should dig deeper into their financial statements to understand the true cost of poor customer service.
• The long-term benefit of customer service investments should be carefully understood before implementing cost-cutting measures that might drive customers away.
• Investing in the right number of qualified, well-trained employees pays off when the employees are able to drive sales and customer satisfaction.
• Self-service technology can be tempting because of the promised cost savings, but the expense of lost customers and lost revenue can be high if the technology doesn't function properly or customers find it irritating or difficult to use.
• Executives should carefully consider the impact of any price or fee increase on customer retention, revenue per customer, an referrals before making a final decision.