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The Cost of Customer Service A Customer can fire everyone from the chairman on down simply by spending his money somewhere else Sam Walton Service effectiveness should always be considered when cutting cost The one area that often suffers the most when the cost cutting axe falls is customer service The irony is that customer service is the one place where more resources should be devoted If for nothing else to compete with other companies in the process of cost-cutting Customer service involves an array of activities to keep existing customers satisfied An example is computer software manufacturers who allow consumers to telephone them to discuss problems they are encountering with the software Servicing equipment in the field and training new users are other examples of customer service The term user-friendly is sometimes applied the firm wants to develop a reputation as being easy to do business with Firms continually monitor the levels of customer service they--and their competitors--offer No-one can put a price on good Customer Service but they can put a price on bad Customer Service Bad Customer Service comes at a high price A customer that has been doing business with your company can start working with another company because of one bad experience with a representative of your company No new or extended service or product is going to bring a dissatisfied customer back For instance the hassle free return policy at Kragen Auto Parts stores I will always go back to Kragen for my Auto Supplies I have had my share of returns to Kragen because of faulty or incorrect part numbers but because they are willing to work with me when I need help on something that they are not responsible for I will be a loyal customer for years to come They make my unpleasant reason for having to shop there in to a pleasant visit in their store That is very
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