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BLOGS Social Business Customer Service: Not Saving Transaction, but Keeping Company Promise

Customer Service: Not Saving Transaction, but Keeping Company Promise

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In a discussion that (as far as I know) started during the #custserv chat (every Tuesday, 9PM ET) and then moved to Google+, my friend Alan Berkson (@berkson0) posed the following (paraphrased) question:

Should Customer Service spend the same energy with every customer, or should it spend more time with customers who made larger purchases?

I adapted my answer to that question into this post.

As with any good question, the answer is "it depends". There are at least two different angles to answer.

Rational 1: Spend as much time as necessary to solve the problem

 The mission of Customer Service is to complete/ensure the delivery of value to customers. It can only be successful if it is fully committed to that goal.

If solving post-transaction problems is routinely taking time that makes the business non-viable, the root of the problem is elsewhere (badly designed product/service, unrealistic expectations).

Of course, everything has a limit. There are situations where Customer Service better "fire the customer" (as discussed in a recent #custserv chat).

Rational 2: Optimize resources to maximize returns

 Generally, businesses try to allocate resources so that it maximizes return. So it is natural that a company will spend more resources to address issues affecting a large portion of the business.

Spend more resources on bigger deals.

A new variable is that it is becoming difficult to measure the "lifetime value" of a customer relationship. As Social Media enables more peer-influence,  that "small" customer might be the person who brings you or kill the deal of your life in the future.

My Point-of-View

In the most common scenario where Customer Service interventions are exceptions and not the rule (i.e. post-sale issues are relatively rare), I would advocate rationale 1: Focus on making the customer happy without looking at the meter.

Looking at customer service time based on size of the deal makes more sense in cases where post-transaction interventions are common, part of the usual transaction workflow in the business model.

Customer Service: You are not trying to save a transaction, you are keeping the company promise to its customers.

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  • My Private Parts
  • Symbols, Storytelling and Corporate Culture
  • 8 Checkpoints for Customer Engagement
  • Business Decisions, Analysis and Social Media
  • Customer Service: Not Saving Transaction, but Keeping Company Promise
  • Sales Presentations: Are You Hot or What?
  • The Boundaryless Corporation
  • Was it as good for you as it was for me?
  • Business and Relationships
  • Klout: Like.
  • Social Media and B2B Sales - Change is coming
  • Customer Service through Twitter - Sustainable?
  • The Social Media Protocol
  • Social Marketing Funnel [graphic]
  • Customer Service and Free Lunches
  • The latest E20 wonder: Inter-Dimensional Gate
  • How does Social Media Scale Personal Engagement?
  • Social Media Campaigns - Market Segmentation
  • "Consumerization" - What is new with that?
  • Is Crowdsourcing Just The New Stone Soup?
  • Professional Services - What is your product?
  • Managing the Social Marketing Funnel
  • Organic Leadership: Business from the bottom-up
  • Social Marketing Campaigns for B2B Marketers
  • Not My Fault
  • Analyzing is more than just Counting
  • Can Old Dogs Learn New Social Business Tricks?
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  • Social SMB - Be more Open in 2011
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  • Social LeadGen for Real-World SMB Marketers
  • Why Sales People Dislike CRM Software
  • Social Business is as Old as Business
  • Electric Cars are Cars
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  • Corporate Social Networks and Communities
  • The Power of Collaboration
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  • Social CRM Use Cases for SMB [Expanded]
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  • Customers Want to Spread the Good News
  • The Twitterfeed is Dead
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  • Engaging with the Social Customer (Social Business Series V)
  • Business Lessons from the Free Software Community
  • My Personal Notes from CRM Evolution 2010
  • Men are from CustomerLand, Women are from VendorLand
  • Leadership in the Social Business Era (Social Business Series IV)
  • Where Social Leads Come From (Social Business Series III)

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