Dont cut customer service along with the budgets

Rob Bamforth, Principal Analyst

Quocirca Comment
Many of the online forum comments following the surprise departure from Apple of former Dixons chief John Browett indicate that while clicks might be replacing bricks, customer service is still a significant demand. The comments might read as a little damming to anyone from Dixons, but they clearly show that having too few, dis-interested shop assistants lacking product knowledge, but still wanting to pump up add-on sales is not the way to sell technology. Some of Apples followers may be a little too fervent to care whether its good or bad, but Apples in-store support and customer service seems to be appreciated those with no fanatical allegiances. In Apple stores no one seems to be ushered off having a play with the stock, staff are plentiful and knowledgeable, after sales support is generally pretty good. No wonder that there were concerns that someone from Dixons might change things to a more traditionally pile-emhigh, cut the costs accountant-driven high street model. A penny pinching supplier can also be a real turn off in B2B transactions, especially for smaller customers to larger suppliers. The mantra for many suppliers, when times were good, oriented around avoiding not leaving money on the table, i.e. making sure that they took a larger share of the customers wallet by up-selling, cross-selling and leaving less room for 3rd parties. Dress this up as benefits for the customer fewer suppliers to deal with, fully integrated, complete solution and it all looks fine. In these tighter economic times however, many companies are looking for better value. This means that sometimes customers will split up their buying, shop around to try to get better deals while suppliers will try harder to increase revenues and preserve margins. The temptation for larger companies in the supply chain is to exert even more financial pressure. This is especially the case when senior management has taken cost-cutting measure to far (usually led financial director and their accountants) stance. There are several symptoms of this: taking much longer to pay suppliers, especially smaller ones with less legal clout or ability to chase. incrementally charging customers for things that might have once been free or at least delivered as part of a bigger project, but now being broken out and separately charged for. Viewing customer service simply as an unnecessary cost that can be cut or trimmed to the bone.

None of these elevate the perception of a company in the eyes of its suppliers or its customers. Large companies may appear to get away with such behavior for a while, but it will increase pent-up resentment in both customers and suppliers, who will at some point switch. Smaller companies will take action faster as word of mouth is an even more important influencer of new business for them. The increasing use of online and social media for sharing experiences only exacerbates the risk of any switching point being sudden and unexpected, especially for changes that adversely affect customer service. Good reputations take a long time and a lot of effort to build up, but news of bad experiences travels fast and brands and reputations can be destroyed while marketing folk sleep.

Dont cut customer service along with the budgets

http://www.quocirca.com

2012 Quocirca Ltd

It might have been that the former Dixons mans face didnt fit, rather than a reaction to any changes he was trying to usher in, but the latest news of the other UK consumer retail giant, Comet, entering administration underlines this is a very difficult market. It might also indicate that cut price doesnt cut the mustard if service standards are cut too.

This article first appeared http://www.computing.co.uk

on

Dont cut customer service along with the budgets

http://www.quocirca.com

2012 Quocirca Ltd

About Quocirca
Quocirca is a primary research and analysis company specialising in the business impact of information technology and communications (ITC). With world-wide, native language reach, Quocirca provides in-depth insights into the views of buyers and influencers in large, mid-sized and small organisations. Its analyst team is made up of realworld practitioners with first-hand experience of ITC delivery who continuously research and track the industry and its real usage in the markets. Through researching perceptions, Quocirca uncovers the real hurdles to technology adoption the personal and political aspects of an organisations environment and the pressures of the need for demonstrable business value in any implementation. This capability to uncover and report back on the end-user perceptions in the market enables Quocirca to advise on the realities of technology adoption, not the promises. Quocirca research is always pragmatic, business orientated and conducted in the context of the bigger picture. ITC has the ability to transform businesses and the processes that drive them, but often fails to do so. Quocircas mission is to help organisations improve their success rate in process enablement through better levels of understanding and the adoption of the correct technologies at the correct time. Quocirca has a pro-active primary research programme, regularly surveying users, purchasers and resellers of ITC products and services on emerging, evolving and maturing technologies. Over time, Quocirca has built a picture of long term investment trends, providing invaluable information for the whole of the ITC community. Quocirca works with global and local providers of ITC products and services to help them deliver on the promise that ITC holds for business. Quocircas clients include Oracle, Microsoft, IBM, O2, T-Mobile, HP, Xerox, EMC, Symantec and Cisco, along with other large and medium sized vendors, service providers and more specialist firms.

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Dont cut customer service along with the budgets

http://www.quocirca.com

2012 Quocirca Ltd