From Deseret News archives:

Don't try to scrimp on customer care — it will backfire

Published: Sunday, April 1, 2007 12:05 a.m. MDT
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The late comedian George Burns once said: "The most important thing is sincerity. If you can fake that you've got it made."

When it comes to caring for customers, too many businesses are trying to fake it, and their customers know it.

You know what I mean: companies that hide behind voice mail with no live operator option. Poorly trained, unempowered and uncaring employees. Web sites without live customer contact information. Inflexible policies that fail to allow for unusual-but-legitimate needs.

Even more aggravating are companies that provide poor customer care while spouting meaningless advertising and marketing mantras about how much they value their customers.

Entrepreneurs need to remember that most customers have their own policy: when a company doesn't deliver real customer care, they deliver their business to another company.

The pervasive environment of pretend customer care is a huge opportunity for every entrepreneur in every industry. Entrepreneurs whose businesses deliver real customer care will be recognized and rewarded by loyal customers who are tired of the posers and the fakers.

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Too often companies make the critical mistake of trading real service for perceived cost savings. They fire the frontline employees who build personal relationships with customers. They hire uncaring and unmotivated people nobody else wants because they don't have to pay them as much. They fail to train and really empower their employees to take care of customers. In short, they try to fake sincere caring but take no real action to ensure it.

Sure, the business world is competitive. Every successful businessperson has DNA programmed to cut costs. Customer relationship expenses can be meaningful and naturally become a high profile target for the cost-cutters. Businesses must balance benefit/expense questions in customer care like every other area.

But too often short-term cost savings in the way companies interact with their customers come at the expense of real relationships and real loyalty because the cutters somehow buy into the perverse logic that an unfeeling machine and inflexible policies can replace a genuinely caring and competent person.

I believe it is never a mistake to make real investments that build real customer loyalty. The competitive marketplace demands it and business logic supports it. No savings, large or small, can offset the complete loss of a customer who decides to buy from someone else.

The good news is that entrepreneurs have a golden opportunity to differentiate their businesses from the competition in this area. Following are some ideas for building real customer loyalty in your organization:

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