I was reading an article on redtape.msnbc.com about how CEO's have an inflated sense of their customer support. A recent survey showed that 75% thought that their customer service was “above average.”   Apparently they’ve never had to call it themselves!

A recent study by Accenture and support.com said:

• 6 in 10 were upset with their most recent customer service experience
• The average consumer wastes 12 hours every month on computer problems
• 74% of people rely on family or friend for help, instead of calling customer service tech support
• 1 in 2 friends and family surveyed said they’d rather help a friend move than offer computer help
• 81% of consumers who feel they’ve been treated badly say they'll purchase from a competitor next time
• 27% of people who received “average” treatment say they’ll buy again from the same company

The problem is that companies try to cut costs by shaving their customer service budget down. For example, they will have customers navigate touch-tone voice systems to eliminate the time they spend on person-to-person customer service.

With the cost of acquiring new customers, why not pay a little more to keep them? Great customer service creates loyal customers.  It's just common sense.