Spare no expense!

August 28, 2009 by +Marj Wyatt  
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Costutility The problem with customer service is not a new one. It’s about balancing between serving a lot of people a little, or dropping everything to serve a few people a lot.

Getting a lot of benefit for a lot of people for not so much money isn’t particularly difficult. In the chart on the right, for example, (a) represents the cost of good signage at the airport, or clearly written directions on the prescription bottle or a bit of training for your staff. It pays off. Pay a little bit and you help a lot of people to avoid hassles. The utility per person isn’t huge, but you can help a lot of people at once.

(b) is the higher cost of a bit of direct intervention. This is the cost of a call center or a toll free number or an information desk. You’re paying more, you’re helping fewer people, but you’re helping them a lot.

(c) is where it gets nuts. (c) is where we are expected to spare no expense, where the CEO has to get involved because it’s a journalist who’s upset, or where we’re busy airlifting a new unit out to a super angry customer. The cost is very high, the systems fall apart and only one person benefits.

Of course, if you’re that one person, you think it’s not only fair, but appropriate and right.

This “spare no expense” mantra is extremely difficult to avoid, because in any given situation, when the resources are available, your inclination is to say, “make the problem go away, spend the money!”

Read the rest of the article here.

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