Do You Budget for Customer Service?
Posted on August 5, 2011 10:39 am CDT
By Mike Green
One of my favorite quotes from a prospective client years ago went something like this. He called us to help improve the level of service his customers were receiving. When I asked how much his company budgets for customer service and training, he replied, “Zero – our employee turnover is so high we do not waste money on training.”
While this may sound crazy, it is not at all unusual. Customer service has never been more important to the success of businesses, yet if you ask most companies if they have a line item for training or customer service, 90% of the time, the answer will be NO. They have line items for cleaning services, paper supplies and everything in between, but zero for customer service.
Most successful operators will tell you that their keys to success are having a great location, having a great product and offering great customer service to their clients. If customer service is so critical to the success and profitability of companies, why is it so rare to see a company actually dedicate funds?
When your next budget cycle comes around, do not forget about service. Even if it is just $100 per month per location, budget something. One thing we have seen is that if it is budgeted, the locations will typically spend it, and spending money on customer service can never be a bad thing.
1 Response to "Do You Budget for Customer Service?"
RE: Do You Budget for Customer Service?
wrote,
Wow! If your company turnover is that high you must be doing something wrong. In my opinion, improved customer service starts with employee engagement.
According to a Businessweek.com article on July 29, nationwide job satisfaction is currently at the lowest ever recorded, down 26 percent since 1987. In addition, only 45 percent of US employees are satisfied with their jobs, and less than one-third are engaged at work.
Let’s consider what else falls through the crack. For starters, workplace morale lowers, productivity decreases, employees are unhappy and retention goals fail.
One solution is creating a strategic recognition program and yes, they can be free! Create a recognition program that is constantly changing and keeps employees excited.
Another idea is to incorporate social media as a part of the employee engagement strategy with blogs, Twitter and content-sharing tools on the intranet.
When workplace morale is high, employee attitudes change for the better. Not only will customer service improve, but your business will enjoy long-term stability and higher profit margins.