I knew this receipt would come in handy!
In last Saturday’s Irish Times, Conor Pope wrote about the Eir Customer Service Court case and how the judge branded the company a “disgrace” for how it treated its customers and staff. COMREG LTD, which instigated the case against Eir after a deluge of customer complaints, was equally scathing about the company’s poor attitude toward customer service.
The Price of a Pint of Stout in Temple Bar
The article references that Eir’s terrible customer service is no more of a secret than that a pint of stout in Temple Bar is not always considered good value for money.
Having found myself in a Temple Bar pub recently, I agree that it is hard to defend the eye-watering price of a pint of stout. However, in their defence, the pub we visited provides their customers with an enjoyable experience.
The pub was clean, the bar staff were friendly and efficient, and there was live music with an excellent traditional band. The place was hopping, and all the visitors were having a great time. I don’t believe they will write letters of complaint about the prices to ComReg or Failte Ireland when they return home.
Most customers perceive value based on more than price, and this is where small businesses can gain an advantage over larger entities. They can be more agile and cultivate a better understanding of their customers’ needs, leading to a more personalised service. This creates loyalty and longer-lasting relationships.
Customer Acquisition over Customer Loyalty
The Eir case highlighted the difference in mindset between these large companies and most SMEs. They value customer acquisition over loyalty because it delivers better results for shareholders. The greatest offenders concerning complaints tend to be airlines, telecommunications, and utility companies. Most of us have experienced the frustration of seeking redress for a cancelled flight. However, making it difficult to claim compensation deters customers from persisting,
🟰 more profits for shareholders!
Customer retention and acquisition statistics show that acquiring a new customer can cost five times more than retaining an existing customer. SMEs focusing on a quality customer experience can expect to retain a high proportion of their customers.
ComReg’s retail and consumer director, Barbara Delaney, stressed that “part of doing business is to ensure that you can address consumer complaints promptly; that has to be part of doing business. It isn’t a luxury, an add-on, or something that comes after.”
Businesses that adopt a customer-centric approach and prioritise excellence over short-term profits create the potential for sustainable growth and customer loyalty.
Tips that help businesses maintain high levels of customer service:
- Set customer service standards so employees maintain consistent, high-quality service, e.g., response times and greeting styles.
- Provide regular training to embed the skills required to handle enquiries and complaints and ensure satisfactory outcomes.
- Encourage customer feedback and reviews and use them to tweak your customer service processes.
- Benchmark your performance with customer surveys, mystery shopping, and KPIs.
- Facilitate employees to make suggestions for improving customer service.
- Celebrate success and reward exceptional service from team members.
Maintaining a high level of customer service is an ongoing process, and companies must aim for continuous improvement to meet customer expectations consistently.
Check out our Leaky Bucket blog, where we examine this theory, discuss customer churn, and how to avoid it.