What is Good Customer Service? Common Misconceptions of Good Versus Bad Customer Service

On an average day, most people will deal with a customer service representative anywhere from one to five times. Some customer service experiences are classified as "good" while other are disdainfully referred to as "bad". If someone experiences what they would consider good customer service, they typically just about their day as if nothing out of the ordinary happened. If this same person experiences bad customer service, they will not hesitate to tell everyone who will listen. Typically I ignore the latter of the two for one very important reason: does anyone really know what good customer service is?

Having worked close to ten years as a customer service representative and manager in multiple industries, I have experienced my fair share of customers who were not happy with me. And to be completely honest, very few of them really had any cause to be upset. They called me ready to fight.

Past Experience Can Lower Expectations

In some cases, previous instances of truly poor customer service can leave one with a bad taste in their mouth regarding customer service representatives, and cause them to go on the offensive from the moment they get someone on the phone. I'll give you an example: years ago I joined a gym and signed up for some personal training sessions. After a while, I found that the sessions were too expensive and I really didn't have much time to attend them, so I decided to cancel the service. It took me at least an hour of dealing with the original salesman, his manager, and the general manager to finally get it resolved, and even then I had to pay a cancellation fee. They tried to convince me to sign up for a cheaper plan, postpone my sessions instead of cancelling, and even take time off from work to make more time for the sessions. Absurd.

A few months ago I found myself in a similar situation with a different gym. The trainer sessions were not going to be worth the money and were ultimately going to conflict with other things that I had going on. I called the gym, already in a foul mood because I was expecting a fight with whomever I had to speak with. Much to my surprise, the first person I spoke to simply cancelled the sessions, no questions asked. Here I had gotten myself pumped up, ready to lay into the first person who gave me a hard time about my cancellation, and it turned out to be one of my most enjoyable customer service experiences.

Customer Service Is About Perception

However, often times what a customer considers "bad customer service" really is not bad at all, it is simply their perception of the situation. The furniture industry is a classic example where a customer's misconception of what customer service really is can lead to them deciding that they have received "bad customer service".

When I worked in the furniture industry I often found myself dealing with people who would, scream, yell, and even insult me because of a clearly written policy in place. For instance, furniture deliveries are typically given a four hour time window in which the drivers will arrive. This is an industry standard simply because everyone's house is different, so there is no telling how long each delivery will take until the drivers get there. Deliveries are arranged geographically to enable the drivers to complete as many stops as possible, so a specific time of day is not guaranteed. The concept of delivery time frames and how they are scheduled was explained to every customer as they bought their furniture and again when their delivery was scheduled. Of course, for some customers, this simply was not good enough. Despite being told twice before, and having the written delivery policy attached to their sales receipt, they somehow had it in their heads that they were different from every other customer, and could pick their time of delivery. While we were open to the idea of trying to accommodate them, often times it was impossible when the trucks were already loaded. Those phone calls typically ended with "this is bad customer service", "I will never shop with you people again," "this is NOT how you run a business," or my favorite, "I'm going to tell all of my friends to not shop here."

Common Misconceptions

There are two common misconceptions about what customer service really is. The first is that a customer service representative's job is to do everything the customer says, no questions asked. This is absolutely not true. A customer service representative's job is to provide service to the customer and assist them in any way they can, but like any other organization, company's have guidelines that their employees must abide by and specific rules that apply to customers. An employee's inability or refusal to break these rules should never be viewed as poor customer service. In many cases, rules are put in place to protect the customer. In the case of a medical supplies retailer, a large portion of their items tend to be non-returnable due to hygiene reasons. When it comes to products such as toilet seats, shower chairs, and bathing aids, this policy makes perfect sense. However, despite this policy being clearly posted for customers to see before purchasing the item, it does not stop an alarming percentage from attempting to return the items anyways. Even though they know the product is non-returnable, and they would never consider purchasing an item of that nature that is used, they still believe that the retailer should take the item back if they decide they do not want it anymore. And if the retailer refuses, the consumer perceives the situation as "bad customer service".

The other misconception is that a customer service representative's job is to take verbal abuse from the customer. This behavior is completely unwarranted, and to be completely honest, immature. Problems are never solved by yelling, screaming, or insulting the person on the other end of the phone. 99 percent of the time, the person the customer is speaking to is not at fault for the reason they are calling in the first place. Whether a customer has had a bad day or previous bad experiences with a company, it does not excuse them to take out their frustrations on the first person who picks up the phone. Countless times I found myself hanging up on someone because they have crossed the line and resorted to personally insulting me because they were not happy with the company.

Customer Service Tips

So what is good customer service? Good customer service consists of several things that combine to make the ideal customer service experience.


1. Clear, precise explanations: An upset customer is typically an uninformed customer. In the case of the furniture company, a customer should get a thorough explanation of how the delivery process works. Never assume that the customer already knows. If you cannot do something for a customer because a rule is in place, clearly explain to them why it cannot be done. In the case of the credit card company, the representative should explain to the customer that regulations regarding account changes are in place to protect the cardholder and the credit card company from fraud.

2. Calm, polite demeanor: If a customer service rep does not sound polite on the phone, or simply is not nice to people, they need to find another job. The way a representative sounds when speaking to a customer will directly affect the way the customer speaks to them in return. A good customer service representative addresses the customer respectfully, only using their first name if given permission, and NEVER raises their voice. A customer service rep should never try to talk over a customer, nor should they raise their voice if the customer begins to get louder. No matter who seems to win a shouting match between a customer and a representative, the customer service rep has lost by being drawn into it.

3. Pay close attention (write it down if needed!): The worst thing a customer service representative can do is not pay close attention to the customer they have on the phone. It is important they put away all distractions and listen to the customer carefully, writing down notes if needed. A good customer service rep does not need to ask the same question more than once.

4. Under-promise, over-deliver: This is an old saying but will always ring true in the world of customer service. A large part of how a customer views their overall experience will be based on the expectations that were set. If a situation requires the customer service rep to call the customer back, it is important to allow enough time for the call back. A good representative will never exceed the time in which they promised to call the customer back, and will always give themselves more than enough time. The same goes for when products are being shipped to a customer; if the time in transit is typically 3-4 days, quote the customer 4-6 days. If the product arrives sooner, the customer will be even happier, and perceive their experience as "good customer service."

5. Clearly posted policies: This is especially important for internet-based retailers. If a product is non-returnable, it is the responsibility of the retailer to post that in a place that customer can and will see it before the item is purchased.

The customer-client relationship is a tricky one, especially when it comes to determining what good customer service is and what bad customer service is. The key is for both sides to remain patient with each other and keep in mind that they need each other equally in order to achieve their overall goal: a good customer service experience.

Richard Chandler is a product researcher writer for an online business by day and a freelance writer by night. For questions or comments, Richard can be reached by Email or at his blog page, http://computarded.wordpress.com

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Popular Business Misconceptions Cost You Money!

Faulty information costs you money! Which of these

popular business misconceptions do you believe?

Popular Misconception #1:

"We Only Need Our Books Done Once A Year For Tax Purposes."

Are Your Accounting Records Adequate To Run Your Business?

Although it is important to keep records for tax purposes,

it is not the only reason (or even the primary reason) good

accounting records should be kept. Another frequent reason

clients request financial statement preparation is to obtain

bank financing. Although important, this also is not the

primary purpose of keeping good records for your business.

Good recordkeeping will enable you to extract meaningful

financial information for your business that will help you

to manage it properly. If you can`t access this information,

you will not be able to manage your business properly. Bad

management leads to business failure.

Yes, the primary reason good accounting records should be

kept is to produce periodic (at least on a monthly basis)

financial statements for management information purposes.

Only with this current financial information can you properly

manage your business. This information can alert you to

declining sales, excessive expenses, tax opportunities,

cashflow problems, and many other vital concerns for your

business.

To be of value, this accounting system should be set up

with meaningful account categories and departments. It may

be cost-effective to have an outside accounting service do

the monthly bookkeeping. However, with accounting software

that is readily available, you don`t have to be an expert

bookkeeper to do your own books and extract meaningful

financial information.

If you do your monthly statements yourself, it would still

be prudent to have your accountant or business advisor help

you set up your system and, as well review such information

with you to discuss problems and opportunities.

Popular Misconception #2:

"Writing My Hobby Off As A Business Loss

Saves Me A Lot Of Income Tax!"

Is Your Hobby A Tax Write-Off?

If your business has no reasonable expectation of profit, if it is a

hobby and not really a business, you will ultimately fail in your tax

objective. Since your losses are being incurred for a hobby and not a

true profit generating business, the tax authorities will take the

position that you aren`t entitled to any deductions. This is a double

blow. First, you`re losing money. Second, you`re denied tax deductions.

It is true, however, that if you enjoy what you`re doing, you`ll do

better at it. You`ll be willing to work longer hours and you`ll be

willing to put up with more hardships in order to make your business a

success.

Rather than attempting to have the tax system subsidize your hobby,

why not turn that favorite pasttime into a real, profit generating

business? This is a doubly rewarding. First, you make money at

something you love doing. Secondly, the tax authorities legally have to

allow your reasonable expenses to earn your now substantial business

income.

Prove that you`re running a business by running a business. Prepare and

follow a proper business plan. Keep good accounting records with at

least monthly financial statements to give you the information you need

to manage your business. Above all, make money from what you do.

Popular Misconception #3:

"I Don`t Make Enough Money to Incorporate!"

Will Incorporating Really Benefit You?

Some persons resist the idea of incorporating themselves because

the tax savings may not justify the added costs of incorporation,

annual minutes, and extra tax returns. However, incorporation gives

advantages that go far beyond tax savings.

Insurance may give you some protection against loss. However, you

may suffer business losses and lawsuits that may not be covered. For

extra protection, consider incorporating yourself. The limited

liability of your own corporation alone may justify the additional cost

and complexity.

Corporations may also be used for income-splitting with your family,

as well as estate planning and retirement planning objectives.

Additionally, corporations lend some credibility to smaller businesses

and may enhance your image and prestige in the eyes of clients or

suppliers.

Lower corporate tax rates will generally apply on small business income.

Even in loss years, wages can be paid by the corporation to you so that

you may utilize personal tax credits available. If unincorporated, these

credits might be lost forever. The now larger corporate losses can be

carried forward to future (hopefully more profitable) years.

A full analysis of the advantages and disadvantages of incorporation is

beyond the scope of this report. However, being incorporated may give

you more flexibility and advantages than you originally anticipated.

Certainly, it is not prudent to reject it as an option simply because it

is more complicated and costly. In fact, it may be one of the best

investments you ever made.

Popular Misconception #4:

"I really need an office out.

Being home-based makes me look amateur!"

Is A Home Office REALLY Professional?

Many times small business persons make the mistake of generating

unnecessary overhead in order to impress clients and prospects. Often

this attitude leads to escalating debt and business failure. One such

example is getting an impressive, but expensive, commercial office

space.

Customers aren`t stupid. They can see when such outside space is

necessary or advantageous for them. They can also see when it is a

waste of money and designed to fuel your ego. What matters most to

clients is whether they are getting cost-effective results or not. If

your product or service delivers such excellent value, your customers

will be impressed and come back. In contrast, if one allows his ego to

get in the way of satisfying the customers` needs, they will go

elsewhere.

With the move to telecommuting, downsizing, networked communications,

and home-based businesses, operating from your home office is actually

smart and trendy. Can you think of a more appropriate location for a

consulting firm specializing in home-based businesses? They of all

businesses should set the example in cutting unnecessary expenses and

operating efficiently.

This is not to say that there aren`t any disadvantages to being

home-based. One certainly must be well organized, disciplined, and

willing to follow good time management principles. This alone could

mark you as more professional than other businesses, home-based or not.

Expensive office space is not the answer to reflecting a professional

image. If you are truly concerned about your image, offer quality

service. Make sure that all your corporate communications (telephone,

websites, printed materials, et cetera) reflect the professional nature

of your business.

Popular Misconception #5:

"Since we`re not seeking financing,

we don`t need a business plan."

Do You REALLY Need a Business Plan?

To obtain financing, many persons will prepare a business plan.

Although entrepreneurs will go to great lengths to get their loan or

capital, these same business persons will not bother to plan ahead very

far or analyse their business. Even if you required no additional

money, preparing a business plan can help you to succeed in your

business.

Running a business without a plan is like going on a trip without a

map,sufficient gas, money, or even a destination. Just as you wouldn`t

go on a vacation without some planning, no business can be successful

without it. Putting that plan in writing helps you to think out a

strategy for successfully operating and growing your business.

Where is your business today? Where will it be tomorrow? What is your

mission statement? What product lines are profitable? Which ones

aren`t? What business do you think you are in? What business do your

clients think you are in? Should you be in a different business? Is

your product or service less attractive to your clients? How are

competition, global commerce, technological and social changes affecting

your company? What is your competitive strength? What are your

weaknesses? Who are your biggest competitors? What are their

weaknesses and strengths? What is your marketing strategy?

What are your projected income and expenses and cashflow for the next

year? How about the next five years? Do you have a capital budget?

What determines whether you buy an asset or not? Do you have an exit

strategy? How will you manage growth? Do you have a financial plan? Do

you have an operations plan? What definite sales and net profit targets

have you set for this year and the next five years? What factors could

interfere with the attaining of these goals? What contingency plans have

you made to deal with such problems?

The purpose of these questions is to get you thinking and planning.

If you fail to plan, you plan to fail. Although your accountant or

business advisor can help you prepare your business plan, only you can

set the appropriate goals and follow through on them. Yes, you

definitely need a business plan, not just for obtaining capital, but as

a roadmap for your business.

Popular Misconception #6:

"I like bartering with clients

because it saves paperwork and taxes."

Are You Reporting Barter Transactions?

Bartering is an excellent way of doing business. However, contrary to

popular belief, some barter transactions are taxable, both for income

and sales tax purposes.

Legally, you must maintain adequate financial records for your business.

Barter transactions made by your business must be reported to the

appropriate taxation authorities and taxes paid. However, transactions

between friends not engaging in business with each other may not be

taxable.

If you are an auto mechanic and I am an accountant and I swap accounting

services for your car repair services, the transaction in this case is

most likely taxable, even if we are friends. However, your accounting

fees should be deductible as a business expense and so should the

business portion of my car expenses. Note also that sales and similar

taxes may apply on this transaction.

On the other hand, if I trade accounting services for a vacation for my

family, I should really declare the value of such services as income.

The firm supplying the vacation would be able to deduct that value as

accounting fees. Any sales or similar taxes would have to be paid on

such transaction.

Many persons don`t record such transactions. For some, it may be a

matter of wanting to believe that you don`t need to be bothered with the

extra paperwork or taxes. Remember, though, that ignorance of the law

is no excuse. Legally, you must keep proper records and pay all taxes

due.

Popular Misconception #7:

"All My Workers Are Self-Employed, So I Don`t Need

To Bother With Payroll Or Workers` Compensation."

Do You Need To Pay Payroll Taxes?

To save on payroll taxes and workers` compensation premiums, many

employers arrange their affairs in such a way that those working for

them are self-employed, independent contractors. This is good tax

planning.

On the other hand, some employers take the position that all those

working for them are self-employed, whether they are or not. Although

it is tempting to eliminate payroll taxes and workers` compensation

premiums, care should be taken to do so legally.

Whether those working for you are employed or self-employed is a

question of fact (which can be determined by the Courts). Do you supply

the tools and vehicles? Do you determine the working hours? Do you

have the right to control how the job will be done? Do you pay a

flat-rate or by-the-hour or a salary? Does your worker have other

clients?

By asking several such questions, a pattern will emerge as to whether

your worker is employed or self-employed. If it turns out that your

worker fits all the criteria of an employee, don`t say he`s

self-employed. On audit, you would still be responsible for the payroll

taxes (and penalties and interest as well).

Even if your workers are considered independent contractors by the

Income Tax Department, it is still possible that they will be considered

to be "workers" for purposes of Workers` Compensation legislation.

Thus, it is the responsibility of the employer to determine whether such

coverage is necessary or not. Failure to obtain proper coverage could

subject you to substantial (and unnecessary) costs.

In review, calling someone self-employed, doesn`t necessarily make them

self-employed. If you have a dog, call it a dog. Your position that

your dog is really a cat will not be successful. Likewise, make sure

that your position regarding your workers is legally correct.

Popular Misconception #8:

"My Accountant Charges Too Much.

I Can`t Afford It Anymore."

Is Your Accountant Worth His Fee?

Many business persons view bookkeeping, accounting, and tax preparation

as necessary evils. In their view, accounting fees are an expense to be

reduced, deferred or even completely eliminated.

A good accountant, however, can give you benefits far in excess of the

fees charged. Well-designed accounting systems will enable you to

extract meaningful financial information for your business that will

help you to manage it properly, avoid business failure, and alert you to

declining sales, excessive expenses, tax opportunities, cashflow

problems, and many other vital concerns for your business.

Your accountant can save you lots of money with the advice you receive

on tax and other business matters. As well, a competent accountant can

be a valuable resource in discussing business problems and opportunities

with you.

Popular Misconception #9:

"Nobody Makes Money On The Internet."

Can You REALLY Profit From The Internet?

Many people feel that the Internet is all hype. Many others feel that

it is overrated. Still others are of the opinion that it may be good

for some types of business, but not theirs.

Typical comments heard include: "I`ve lost money on the Internet...Major

corporations have lost millions...Do you personally know anyone who has

made money from the Internet?"

However, if you check out the list of recent billionaires, a high

proportion of these are Internet-related, and many of them under

forty years of age. As well as the very rich, you can find many cases

of more modest financial prosperity resulting from Internet commerce.

It is true that many are losing money on the Internet. It is also true

that many don`t know what they`re doing. However, with the proper

assistance, you, too, could profit from the net.

J. Stephen Pope, President of Pope Consulting Inc., http://www.popeconsultinginc.com/ has been helping clients to earn maximum business profits for over twenty-five years.

For valuable Work at Home Small Business Ideas, visit http://www.yenommarketinginc.com/

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.