Here are several excerpts from an article by Barney Beal, News Director with SearchCRM.com, Poor Customer Service, Not Price, is Driving Customer Churn:

The notion that customer service is imperative in a recession got a major boost from a recent study by Accenture.

The New York-based consulting and services firm surveyed more than 4,100 consumers over the summer and found that service — more than price — is a clear differentiator.

According to the online survey, 67% of respondents reported switching companies because of poor customer service, compared with 59% last year. U.S. respondents were even more service sensitive, with 73% reporting that they switched companies owing to poor customer service, compared with 47% switching over lower prices. All indications are that the importance of customer service is only growing. Four years ago, when Accenture first began conducting the annual study, only 48% of respondents said they were switching businesses because of customer service.

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Here are several excerpts from a press release about the findings from a recent study on customer service satisfaction, Customer Service, Not Price, Remains Top Cause of Customer Churn:

Service again ranked above price as a global driver of customer churn, according to Accenture’s fourth annual study on customer service satisfaction, titled “High Performance in the Age of Customer Centricity.”

In total, two-thirds (67 percent) of respondents reported moving their business to other companies as a result of poor service in a variety of industry sectors, up from 59 percent of respondents in last year’s survey. Underscoring the sharp increase in consumers switching business providers is an overall erosion of customer loyalty.

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Here is such a relevant article by Brendan B. Read, Senior Contributing Editor with TMCnet, that I’ve posted it in it’s entirety, Be Prepared For Gen-Y Customer Service:

Generation Y: those born between 1980 and 2000 are here, as customers and as contact center agents, and that has major impacts and implications for customer service.

The Gen-Yers, numbering 70 million in the U.S., are the replacements for the now-retiring and fading Baby Boom generation, from whom they are descended. They are also known as the ‘Baby Boom Echo. Their ranks are nearly twice as large as Gen-X, which are those individuals born between 1964 and 1980.

Bill Durr, Principal, Global Market Consultant, Verint Witness Actionable Solutions, points to several key characteristics of Gen-Y that will affect contact center customer service and CRM strategies…

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Here are several excerpts from an article by Christopher Musico about one of the keynote speeches at RightNows’s Summit ‘08 Conference, The Never-Ending Customer Service Journey:

Customer service may seem like a never-ending process — but that’s not necessarily a bad thing. In the morning keynote at the RightNow Summit 2008 here yesterday, one speaker explained that, for consumers, a superior experience is never intended to be the ultimate destination, but rather like an ongoing journey.

Jim Ferron knows a thing or two about sending consumers on journeys. As senior director of customer operations for Expedia, the Bellevue, Wash.–based provider of travel products and services, Ferron had some real-world stories to share about the importance of creating a multichannel strategy.

“Interactions are not a series of disconnected events. They are part of the overall journey in moving from one place to the next.”

To Ferron, this means being cognizant of the entire customer lifecycle, which includes need, browse, shop, buy, and consume.

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Here are several excerpts from an excellent article by Drew Stevens, Cures for the Customer Service Puzzle:”

Organizations believe that they provide exactly what customers desire. Ask any firm and the Paretto Principle prevails. 80 percent of most organizations believe they deliver exemplary customer service. Ironically, less then 20 percent do. According to research by consultancy Bain and Company, only 8 percent of companies really deliver on customer service.

Our present environment exists with a gap in delivering service. There are numerous reasons for the gap, however, we believe two issues contribute to this gap, a) greed and b) the inability of customer relationships.

Greed

Prior to heightened fees, customer remain for two purposes 1) either first mover advantage in the case of Starbuck’s or 2) value such as American Airlines. Yet when fees increase, customers tend to jump ship for cheaper and more appealing alternatives.

The solution for any firm is to thoroughly conduct an impact analysis to determine potential market losses. New revenue means nothing when you lose a core customer base. Customer dissonance cannot be taken for granted.

Customer Relationships

Customer connections are very difficult to build- that is to say unless you are focused on your core asset. First, as mentioned earlier, an organizations entire strategy must exist for the client. Strategic questions to ask are, “Who is the customer? Why does the customer buy? What is the value that our firm provides? How do reach disseminate product, service and announcements to our customers? These questions all told focus all beliefs, all values and all attitudes for the company asset. Further, it is imperative to treat the client as such- an asset. Nothing happens, no one gets paid and the electricity does not provide power to the plants unless a customer is involved.

Herein are several techniques to align with your clients-

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