How Important is On-Demand Customer Service to Your Small Business

I am constantly amazed by the fact that someis no general trend. Every business has to assess the
companies don't bother to respond to websitecosts and benefits of various levels of service to its
information requests...acknowledge voice mails...reply toown customers, and find a level that drives profitability."
emails, etc. It's safe to say that being totally ignoredService On-Demand
represents the extreme end of the (bad) serviceDeb Kolaras thinks it is critical for small business to
spectrum and very few will argue that "indifference" isprovide on the spot customer service. "Nothing makes
not a good customer service strategy. But whata consumer more angry and apt to move on than
constitutes reasonable or excellent service in today'sfeeling as though their issue is either ignored or
marketplace? When I research a product/serviceunimportant." In Kolaras' opinion, there needs to be
online, I find myself getting agitated if I don't get a replysome immediacy when it comes to serving customer
acknowledging my interest within the same businessneeds, with issues being handled in as timely a manner
day. Are consumers more demanding today than inas possible. Otherwise, she feels that consumers will
the past?quickly begin the search to replace you as their solution
Consumer Expectationsprovider. She says that "until businesses grasp this,
Deb Kolaras, Owner at Signet Consulting Inc. in Denver,they are powerless to hold onto customers."
Colorado, doesn't think that consumer expectationsService on-demand seems like a good solution when it
have changed. In her opinion, overall service deliverycomes to addressing the demands and expectations
has declined and is failing in many cases. "Consumersof the modern consumer. Rémi Chadel brings
expect that they should receive good service, but areup an interesting point to consider before jumping to
actually surprised when it happens. They WANT greatany conclusions with respect to the power of instant
service, but instead of demanding it, they simply moveservice. "My experience in marketing strategy projects
on - most (consumers) are just too busy so they justshows that speed and instant service are a
go elsewhere."component of differentiation only when they trigger an
Based on his experience, Rémi Chadel, aemotional cue with the customer."
Professor of Marketing at Ecole HôtelièreJohn Eichenlaub, a Sales Representative at Allied Tube
de Lausanne and a Managing Partner at Chadel& Conduit in Columbus, Ohio, wonders whether it
& Cie Strategy & Execution in Geneva,is possible or practical for many businesses to resolve
Switzerland, feels there are good reasons to believeall customer concerns instantaneously. He feels it's far
that customers are more demanding today. Chadelmore important to "serve every customer quickly and
lists the following as factors that have had a greatprofessionally" and offers up the following advice
influence on consumer behaviour and have contributedwhen it comes to customer service:
to making customers "more demanding than ever":- Make it a point to take or return every call as soon
- Globalization - Broadened consumers choice ofas possible. While you may not be able to resolve all
goods and servicesconcerns immediately, you should be able to: ensure
- Internet - Infinite choice and unparalleled ability toyou understand the concern; summarize what you
compare products and servicesmust accomplish internally to respond; give your best
- Media - Virtually unlimited access has created anpossible estimate for resolution
information-intensive society- Follow through on service promises
- Deregulation - More choice for staple services in- Make all customers feel they have your undivided
various markets (Automotive, Insurance, Banking andattention
Finance)"Without question, customer service has allowed our
- Progression of the economic value - Throughbrand to remain dominate in the presence of stiff
branding, some companies are replacing servicecompetition from sub-prime and foreign competition,"
offerings with brand experiences, elevating consumersays Eichenlaub. "Markets rise and fall based on many
expectationsfactors. As long as I'm in the ball park, I believe my
Michael Blakley, a Technical Support Manager atcustomers will pick up the phone and dial the team
Ipswitch Inc., an innovative IT software developmentthey trust."
company in Augusta, Georgia, has a different view. HeCommitment to Service
suggests that "customer expectations have beenThink about how close your small business can/wants
spreading in all directions, higher and lower, dependingto get to delivering "on demand" service and weigh the
on the stake the customer has in the product; howcosts vs. incremental benefits. The most important
much they've paid and how important it is to them."thing about service is understanding the impact it will
Blakley has a more pragmatic approach whenhave on your small business in today's business
assessing the value of customer service to anenvironment. Consumer expectations may or may not
organization. He states that customers will complain,have changed in recent decades, but one thing has -
but questions how much those complaints really affectproliferation of choice. If your small business does not
an organization. "If the complainers represent a goodmeet whatever the service expectation is for your
portion of your business, then they matter a lot. If theysector, product or service, consumers will be quick to
represent a tiny portion, then they don't matter. It allseek out an alternative. Make the best commitment
depends," says Blakely, "Good customer serviceyou can to customer service and use it as a platform
doesn't necessarily pay for itself or drive profit andto build your competitive advantage.
changing expectations don't necessarily matter. There