Poor customer service leads to loss of customers
Professor Tor W. Andreassen and associate professor Line Lervik Olsen of BI Norwegian School of Management have carried out a broad-ranging study of 899 bank customers to see how good and bad customer service affects the customer’s opinion of his/her bank.
Their findings were published in a research article in the international scientific journal Managing Service Quality. This article earned Andreassen and Olsen the research award â€MSQ 2008 Highly Commended Paper Awardâ€.
http://www.alphagalileo.org/ViewItem.aspx?ItemId=56467&CultureCode=en
They got an award for stating the blindingly obvious?
do they work for a governing body?
If we were stating the blindingly obvious why is it that service managers in pressing times are cutting customer serivce ? Is it because they know, think, hope, or pray that reduced cs does not impact key customer variables?
Our study also documented customer service to be a sustainable competitive advantage – something Business Week also concluded in their resent top story.
Poor customer care = lost customers is obvious.
A much more interesting study would be to find the tipping point where the cost of good customer care is greater than the revenues it generates – or to put it another way, when the savings from cutting customer care are less than the loss of income from lost customers.