The Alabama Moderate

Painting the Red State Purple.

From the “Duh” Files

Posted by ALmod on May 23, 2007

CEO’s have no realistic views as to how their low tier employees are performing.  Worse than that.  They’re completely clueless.  But outsourcing your customer service to a foreign country, where you have no real way of controlling what happens, is o-tay!

Here’s something I’ve been saying for years, and MSNBC is finally picking up on:

“Budget conscious companies in the ultra-competitive consumer electronic industry are always looking to cut corners, and customer service always seems like a good target. Companies save on employee costs by forcing people to work their way through voice mail systems or by skimping on warrantees. But that’s a penny-wise, pound-foolish strategy, Sprague said. The actual cost of providing good customer service — having a human being answer the phone, for example — only costs between $10 and $30 per customer. Acquiring new customers is much more expensive. Direct broadcast satellite system firms like DirecTV spend on average about $600 to acquire customers, he said.”

Ya think?  I’ve had that very conversation with more than one corporate suit.  One of them was the CEO of an outsourcing company.  Do you know what they told me?  “Way to think outside the box!”  Is it just me or would my reasoning be mere common sense more than thinking outside the box?  Of course, none of them took my advice because it would “devastate the bottom line.”  Enjoy the bottom line you have nowadays, guys.  You’ve earned it.

What is it about climbing the corporate ladder that slowly deteriorates your ability to think outside the short-term?

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One Response to “From the “Duh” Files”

  1. Jo said

    When I have to deal with customer service, and I get someone in another country, I demand an English Speaking American be put on the phone. I don’t care if it hurts their feelings — too bad. Customer Comes First

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