This article first appeared in December 2007 but its content is timeless.
People talk about customer service almost as much as they do about the weather. In both cases you might feel that not enough is being done about it.
The cartoon below is perhaps typical of how some companies feel about customer service.
Old-Style Marketing
Old-style Marketing was very different from what marketing means now. Old-style marketing was covered in books such as Marketing Basics: The Four P’s Are As Relevant Today As Ever. There you will find: To the uninitiated, the 4 P’sare:- Product: Quality, branding and packaging play a part.
- Price: Includes discounts and credit terms.
- Place: Where the product is sold and how distribution channels work.
- Promotion: Covers sales, ads, marketing and public relations.
Customer-centric Marketing
The old view might be called a product-driven view. A company strived to make the best possible product it could for its potential market, based on its perception of market needs. The new view is what is called a customer-centric view. This accepts that the customer is in control. One can only develop and sell what the customer really wants. Everything should be viewed from the customer’s perspective. That can be difficult to do in practice given old habits, even if a company accepts that it’s the right point of view in theory.What Is Customer Service?
Customer service can be costly and that is why some companies try to do the minimum. However the underlying principles have been clear for over a hundred years. The following quotations provide a good round up of how different people have seen it:- A customer is the most important visitor on our premises. He is not dependent on us: we are dependent on him. (Unknown)
- If we do not take care of our customers, someone else will. (Unknown)
- There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. (Sam Walton, Wal-Mart)
- Here is a simple but powerful rule: always give people more than what they expect to get. (Nelson Boswell)
- Be everywhere, do everything, and never fail to astonish the customer. (Macy’s Motto)
- Quality in a service or product is not what you put into it. It is what the client or customer gets out of it. (Peter Drucker)
- If the shopper feels like it was poor service, then it was poor service. We are in the customer perception business. (Mark Perrault, Rally Stores)
- Every great business is built on friendship. (JC Penney)
- Your most unhappy customers are your greatest source of learning.(Bill Gates)
- In the world of Internet Customer Service, it’s important to remember your competitor is only one mouse click away. (Doug Warner)
Why Do Some Companies Do The Minimum?
There are some very strong reasons why companies should do more Customer Service. However many seem to regard it only as a cost item. It is true that making products and supplying services are very different in nature. Here are some of the reasons:| Making Products | Supplying Services |
| Manufacturer designs | Customer demands |
| Mass produced | Customized |
| Costs can be reduced | Sometimes costly |
| Can make and store | Usually done when required |
| Production People planning is easier | Service People planning is harder |
| Must have features | Nice to have benefits |
| Product driven | Customer centric |
| Manufacturer is in control | Customer is in control |
When Is Customer Service Satisfactory?
What then is the right level of customer service? Who should determine that? If Customer Service is only seen as a relief valve that irate customers can use, then the manager will decide how much he can live with. If customer service means what it says, then clearly only customers can say whether the level is satisfactory. It needs to be said that this does not mean that every last customer will agree that customer service is to their liking. However the majority of customers are reasonable people and certainly the majority should speak favourably about the company’s customer service.Why Is Customer Service So Powerful?
Customer service should not be seen as some kind of charity activity done for the benefit of customers. There are a number of reasons why customer service is now a powerful lever on sales. The new factor is the emergence of the Internet. As the previous newsletter described, it is important to have an Internet mindsetand realize that the world has changed dramatically. With respect to customer service this has a number of important outcomes:- The customer is now much more in control and has ready access to product information and to other competitors.
- A customer expects more respect and information from a supplier.
- Contact with others is now very much easier via the Internet so information from justifiably dissatisfied customers spreads rapidly and they can easily form action groups, if they so wish.
- The company will be more aware when customers are looking for new products or product benefits.
- The company is constantly knowledgeable on customers’ likes and dislikes.
- Customers can be contacted to sell related products to them (cross selling).
- Customers can be informed about upgrades or new versions of the products (up selling).
- If a customer is dissatisfied, more information can be obtained on what caused that.
Do You Sell A Product Or A Product/Services Package?
- Exploration before purchase
- Purchase
- Use
- Product Life (maintenance and repair)
- Product Death (recycling)
What Happens When Customer Service Isn’t
If a company does not see the benefits in company service, then perhaps a look at the damage that poor customer service can create will do some convincing. Just do a Google search on poor customer service and you’ll find many examples of companies that seem to be known for this. Some of them are listed in a companion blog post, Customers Speak Out In The Internet Age. If you wish to let others know of some frustrating customer service situation and haven’t done so yet, then why not go there and add your comment. The climate of opinion that this creates can have unfortunate consequences for the companies involved. The three major cell phones suppliers in Canada, Bell, Rogers and Telus, provide a clear illustration. Their high prices and complex rate plans do alienate customers and unfortunately their customer service functions receive a good deal of criticism. Not surprisingly the politicians, wishing to take popular decisions, are most happy to open up the Canadian cell phone market to more competition.Conclusion
- Previous: Do You Have An Internet Mindset?
- Next: SEO Those Meta Descriptions For More Google Visitors

Good write up. Brands in the current Twitter age have the best opportunity to be closer to their customers than ever before, it is extremely easy now to interact with a brand through Twitter, especially retail brands and even easier to generate negative feelings in the community if the brand does not interact. Twitter is the perfect customer service channel, and it is a surprise that many brands still don’t embrace it yet.