Why Service Stinks: A Critical View and Interpretation

1035 WordsFeb 24, 20045 Pages
Why Service Stinks: A Critical View and Interpretation Diane Brady proclaims in BusinessWeek magazine that service stinks. Through a series of examples presented from the consumers' view, she illustrates how customer service has become a privilege of the elite group of an organization's most profitable customers, leaving the average Joe at the back of the line, bottom of the heap, and last on the waiting list. Let's get one thing straight first, in terms of Brady's article, service does, in fact, stink; however, service stinks for good business reasons and only stinks where organizations can afford it to stink. Brady's words have a strong air of discontent around them. She seems discontent with customer service from firms involved in…show more content…
Customer Relationship Management involves using software to gather, sort, store, and analyze customer information to better target service delivery (Survey: Always on People). Even a business with a customer base that can be segmented using Customer Relationship Management (CRM), may be losing ground by trying to segment its customer-base. Brady has a point in criticizing some CRM practices from the customers' viewpoint considering "one sobering study recently published by Gartner suggested that customers considered more than half of all CRM implementations a failure." (Survey: Always on People) Businesses may also be losing customers of more value than they realize with a lackadaisical approach to customer service for the apparently low-value customers. One cannot forget that a small time customer today may be a big time customer tomorrow. On the issue of financial services, Terrence Levesque and Gordon McDougall write, "A key to profitability in retail banking is to leverage the current customer base and increase business from current customers." (Customer Dissatisfaction) Indeed, attempting to turn customers who contribute minimal profitability into high rollers may, in some cases, be a wiser strategy than skimping on their service in favor of investing more in the current highly-profitable customers. So Brady is on track, although generalizing, in saying service stinks, and her negative tone

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