Good customer service costs too much?
November 07, 2006 at 11:11 AM | categories: Marketing, General | View CommentsI just finished reading The Wal-Mart Effect by Charles Fishman. It talks about the effect that Wal-Mart’s continual drive to lower prices is also lowering the quality of goods - to be cheaper, metal is replaced by plastic. Repairable items are replaced by disposable. And the quality of life for employees - of Wal-Mart or its suppliers - is simultaneously lowered, too.
As somebody who’s spent his fair share of time putting together desks and bookcases and children’s toys, one of the most powerful quotes was (paraphrased) “that things should be cheaper - we’re making them ourselves”.
In a post on “Is it tech rage or customer service rage?”, Techcrunch talks about how many stories at “tech rage” are but asks whether they’re really caused by awful customer service. I certainly think that’s the case. When I see a guarantee from companies like Qwest or Comcast, I immediately discount it down to 0. I’m sure that whatever the guarantee is, there’s something in the fine print that will prevent me from collecting. Assuming, of course, that I have the patience to persist in reaching a person.
I don’t shop at Wal-Mart. I have 3 small children and my wife and I need diapers and paper towels and formula and string cheese and lots and lots of other bulk items. We pay money to belong to Costco for two reasons: #1, they pay their employees a decent wage and provide them good benefits. And #2, they stand behind what they sell. I’ve never had a problem returning something to Costco. Costco is tiny compared to Wal-Mart but perhaps that’s why they can provide decent service.