People Talk
There has been a lot of discussion on how Social Media has changed customer service. People have always talked about good and bad experiences they had when dealing with customers. While in the past, the conversations were within a close network of friends and neighbors, today social media has changed the way people communication. The average Facebook user has 130 friends. That fact alone has changed the way people discuss their experiences with a company. My In-Laws, Bob and Babs are not Facebook users but they are big into networking the old-fashioned way – They talk to their neighbors, friends, and family.
Here is a story that shows how poor service can potentially affect a company’s bottom line. During a recent visit to my in-laws, Bob relayed a story about a neighbor of his. Mr. and Mrs. Williams live up the street from my in-laws, and like Bob and Babs, are very long-time residents of this neighborhood. Recently, one of their toilets was experiencing “phantom flushes” (flushing without anyone using the toilet). They called the same plumbing company that they have been using for almost 40 years. When they plumber arrived, he said they needed a new toilet and that the estimated cost would be $500 to purchase and install a new toilet. Mr. Williams was shocked and relayed the situation to Bob during one of their neighborly chats. Bob volunteered to look at the toilet and discovered that the flapper was not sealing correctly. He ran up to the local hardware store, purchased a new flapper for $5.00, and installed it for the Williams.
Bob explained that he probably would not use the plumbing company even though he personally had not had bad experiences because of the Williams’ experience. Moreover, he will more than likely mention it to others when he meets them on his daily walk. Rational – probably not but word-of-mouth is not a rational system. That plumber lost two very long-term customers that day and more than likely it will not working that neighborhood again. It did not take social media to ruin the plumber’s, it simply took people being friendly and having normal conversations.
People trust their friends more than they do reviews and they will ignore significant discounts if a friend or three has relayed information about bad customer service. While comments on Facebook page about a restaurant has a greater reach than traditional word-of-mouth networking, it is still word-of-mouth networking. And, like traditional networking, companies that treat customers well will reap benefits from that network, those that offer poor or forgettable service will suffer the consequences.
Once call center that I once worked with was having difficulty achieving their up-sell and cross-sell quotas. I asked what their C-SAT rating was and it was not good. They were surprised when I said they needed to improve their C-SAT score significantly and maintain that level for a while before they see a substantial rise in sales. “Why?” they asked and I answered them with this question:
Do you buy things from people you do not trust?
They got the point.
Good customer service is essential for continuing and increased sales. People do not buy things from companies they do not trust more than once or twice. What’s more, people are more likely to tell their friends about a bad experience than shop in a store where they received poor or neutral service. Bob and Babs, even without using social media, can still affect a company’s bottom line simply by being neighborly.
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