Good or Bad Service

In: Other Topics

Submitted By xjun
Words 3215
Pages 13
For the article, “why service stinks”, please answer the following questions:

Does service really stink? What are the negative effects of reducing service to some customer? Please provide an example.

Service really stinks. Nowadays company just emphasizes on potential customer and valued customer. If you fall below on these two categories, companies rather lose you than take time to serve you. Company are smart on checking customer background based on existing information and pass transaction history. Based on the pass history can determine customer value. Companies believe that serve a value customer is easier than looking for a new customer to buying the product. Meanwhile, based on checking customer background, company easy to define who will be potential customer. Potential customer need to emphasize because their willingness on buying new product is higher than a new customer. Potential customer know the company very well, they tend to invest more on trying new product. Serving valued and potential customer is easier than looking for a new customer which needs to start from the beginning. It costs 5 times more to obtain a new customer than retain an existing one.

There are some negative effects will reduce service to some customer. Tom Unger called the bank’s toll free number to clarify his mysterious service charges showing up on his bank account, he reach a bored representative who try to brush him off. Tom Unger wrote two letter to make a complaint, a First Union spokeswomen call back him and just simply answer Tom Unger question and make him feel that the staff wouldn’t give him a courtesy on listening him problem. At that moment, Tom Unger knows that he was not priority customer of the heap and chooses to leave this bank. Customer who feel that organization not cares about them, slowly they will quite the organization and look for a better one.…...

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