Customer service should be a priority for every business.
Regardless of size, industry, or market share, every company must work to keep their customers satisfied to stay in business.
Prioritizing customer service starts at the top, and good leaders will put strong systems in place to ensure service levels remain high. Delivering quality service starts with building a culture of customer service. Creating this culture means:
- Listening to and valuing customer feedback.
- Admitting mistakes when they happen and working tirelessly to fix them.
- Showing empathy for customers and demonstrating you care.
- Placing long-term customer happiness above short-term profit.
In fact, there are many data-driven tips to follow to improve customer service.
However, many companies don’t value customer service as they should or have leaders who are more concerned with revenue and growth. These businesses are often chasing short-term gains at the expense of delivering quality service to their customers.
Companies who chase profits often find themselves in bad situations which can gain widespread publicity and tarnish their brand. These situations demonstrate how important customer service truly is by impacting the company’s bottom line.
Here are ten examples where poor leadership and service led to costly mishaps for well-known brands.
These are somewhat extreme examples of how not valuing customers can go horribly wrong. But there are still lessons to be learned from these mishaps.
Many of these situations could have been improved or even avoided altogether by simply emphasizing customer service and respecting the customer. These brands felt the effects of poor service in their stock prices - damaging their reputation and value.
Rather than always focusing on short-term gains or growth, brands should focus on keeping the customers they already have. After all, customer retention is much less expensive than new customer acquisition and retained customers are worth more over time.
Delivering excellent customer service will help your business grow by keeping the customers you already have and attracting new ones with improved brand reputation.