The Effects of Poor Management in Customer Relations
By Karen LoBello, eHow Contributor updated: November 2, 2010
The Effects of Poor Management in Customer Relations | eHow.com
Businesses use technology and outsourcing to operate more profitably, but companies that also deliver positive customer experiences will prosper, according to Scott Zornig, vice-president of sales for iQuote Xpress. Customer relations are paramount to successful business. Matt Eventoff, owner of Princeton Public Speaking, says, "Poor management in customer relations is a business killer, period." Inferior managing has devastating effects on a company's bottom line.
Inept Employees
Managers need to make sure their hiring process results in the best candidates for the expectations of the position. Introduce team members to the culture, goals and vision of the company. Employees cannot become part of a client's experience without this knowledge, according to Stephen Harvill of Creative Ventures. Staff members should receive ongoing training to provide customers with an "only here" experience.
Bad Press
Given today's technology and 24/7 communication loop, it's very easy to spread the word about a poor customer experience. Managers must train staff to be efficient. However, when efficiency comes at the expense of customer relations, business suffers, according to Eventoff. Great service five times in a row and a mediocre experience doesn't cut it. Eventoff has witnessed bad press resulting in company chaos and millions of wasted dollars.
Costly Referrals
Customers refer clients to other potential customers, especially in the business to business market. It is typically 30 to 40 percent of customers who are referring, according to Lynn Daniel, president of The Daniel Group. Customers in the business to business market tend to have more complaints, and they are typically more costly to correct. Failure to focus on improved customer service means the loss of an inherent marketing source.
Unhappy Customers
There is an old saying that people buy relationships, not companies. If customers feel they are not being treated appropriately, are put on hold too long, are subjected to irritating phone menus or do not receive timely responses, they will switch services, products or companies. Supervisors need to give front line employees the authority to solve problems quickly, rather than referring customers up the chain of command.
Rumors
If management is not communicating openly, honestly and frequently, people will fill in the gaps with misinformation, rumor and innuendo mistaken for fact, according to Karen Friedman, president of Karen Friedman Enterprises. That creates distrust and morale problems, frequently sensed by the customer. Management is only as good as the team behind it.
Negative Communication
Friedman believes that good managers set examples, as do poor ones. A manager needs to walk the walk and talk the talk. If employees or internal customers don't feel valued or appreciated, their disapproving attitudes will be communicated--verbally or nonverbally--to customers. Customers are driven by what they feel. If they sense a business is not well managed and the top brass doesn't care, it really won't matter how great the product or service is.
Decreased Profits
Management needs to ensure that the latest technologies are being utilized in order to maintain old customers and attract new ones. A large share of the market is at stake. Ongoing staff training and innovative techniques must be incorporated.
