TABLE OF CONTENT

3 5 7 9 11

Introduction

Reason 1:Company Prioritizing

Sales Too Much

Reason 2:MisunderstandingAbout Technology

Reason 3:They Refuse to Invest in

Improving Customer Service

Reason 4: Companies Are Not Willing

to Change The Work Culture

Everyone has their experience of dealing with bad customer service, whether when you received a damaged order or dealt with rude employees. While technical and human error are unavoidable, many companies don’t try to improve their customer service.

Well, what will happen if your company stick with bad customer service?

• Customer won’t buy your products or use your service anymore

• Customer won’t recommend your brand to anyone

• Customer will give bad review about you on social media

• Your company will get bad reputation

INTR

OD

UCT

ION

We go deep in this research and come down to 4 key reasons on why bad customer service still

exist today

i

Company Prioritizing Sales Too Much

Many companies don’t realise that great customer experience is an investment, while they’re focusing on sales too much. Great customer experience lasts forever and will build long-term sustainability. So yes, it’s a misconception that having more sales will equate to more profit.

For example:

Kodak is a company who becomes too big and engrossed in making profit. Their complacency resulted in a huge loss of revenue and nearly jeopardized the pension scheme of its retirees. Kodak continues to earn a negative rating in its customer service as they fail to respond to complaints made towards their products.

1

Misunderstanding About TechnologyMany companies still fail at delivering customer satisfaction, even though we live in a world that is interconnected by technology -- as they are too indifferent in spending the time to research or respond appropriately to what people are saying about them. This is also common when companies fail to monitor its social media channels. For example:Back in 2013, an activist took to Twitter to discuss about his experience of being chased away from the Bank of America by the police. It turned out that the company’s Twitter feed was controlled by a bot that would generate an automatic reply towards any tweet that mentions the bank. This incident drew a lot of criticism, which made the bank appear incompetent in maintaining its brand in social media channels.

2

They Refuse to Invest In Improving Customer Service

Executive Vice President of World Service, Jim Bush, has pretty strong quotes on investing for better customer service.

“Service is the most powerful competitive advantage we have. Service is not a cost, it is an investment. It’s a growth engine for our company.”

But hey, where’s the cost? Or I mean investment?The cost of service comes in a number of areas including, hiring right, soft skill/relationship training, better customer friendly policies, strong, customer focused guarantees and more

3

Comcast has become one of the most hated companies in America and the worst customer satisfaction in the cable industry.

When tech journalist, Ryan Block attempted to cancel his Comcast service over the phone, the representative was aggressive in demanding to know his reason. Despite the mayhem, Block was able to disconnect his service, but he still had to go to the store to make sure that his request was granted. This is not the only incident where customers face a nightmare in dealing with incompetent customer support agents. In other cases, some of them were met with rude employees when they tried to dispute the excess charges in their bills.

While Comcast is still the biggest cable company in the industry, it has already lost about 280,000 to 360,000 customers as more people are transitioning from cable TV to cheaper online streaming services like Hulu, Netflix or Amazon Video.

4 Companies Are Not Willing to ChangeThe Work Culture

When companies grow too quickly, the quality of hiring also becomes another issue. Many employees that work in customer service earn a minimum wage, with no benefits, and are expected to work for odd hours. With pressure mounting from handling customer complaints as well as unrealistic expectations on work performance, many of these employees become burned out and lose their motivation after several months.

In a letter published on Gawker, a longtime Wal-Mart store employee revealed the ill practices of the company over twenty years, in order to maintain its profits. As Wal-Mart places cap limits on the number of work hours on each employee, the stores become understaffed and barely have enough workers to restock their inventory or attend to customers.

In 2015, Walmart announced that it would raise the minimum wage of its employees to $10 per hour, by February 2016. While the wage increase signifies a change in the retail industry, we have yet to know if this will improve the performance of its customer service.

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