Businesses often struggle with customer relationship management strategies because of widely held customer service myths. Soffront Software examines three of the biggest customer service myths that can negatively affect business strategy and performance.
Myth 1: Price trumps quality
Earlier this month in Business Insider, business writer Shep Hyken referenced two studies that showed that regardless of the industry, customers are willing to pay more for what they believe to be a better customer service experience. Similar trends consistently put brand name products in shopping carts and in homes despite lower prices on generic labels.
Quality of service is not the only factor customers and businesses use in making purchasing decisions, but it cannot be ignored. Providing a valuable experience is one of the keys to customer retention. If you offer inferior service at a lower price, the negative impact on customer satisfaction will outlast the temporary boost in sales.
Myth 2: No complaints means happy customers
The “no news is good news” myth is rampant and rarely true. No news more often means that a business isn’t in tune with what is happening. Rather than complaining, customers may find it easier to go to the competition, and the more competitive your environment, the more likely this is to be true.
To really know what is happening with your customers and provide valued customer service, you need feedback. The best CRM software makes it easy for multiple departments to keep a finger on the pulse of clients. Don’t take it for granted that clients are satisfied because they haven’t complained. A proactive approach will remind them that their satisfaction is important.
Myth 3: Customer service is a “one size fits all” proposition
Customer service means different things to different industries and businesses. There is no magic formula for defining customer service and managing the expectations of every client. However, the bottom line in customer service is the same as the bottom line in sales: the best companies find a need and fill it. The best customer service fulfills clients’ needs quickly and consistently, but no one customer relationship management strategy works across the board in every scenario. Customer service succeeds when a business knows its customers.
The customer service truth
The service you provide to your customers can make or break your business. That much is no myth. A good customer relationship management strategy understands that quality comes first, maintaining contact is key, and customer service must be designed to fit the business, not the other way around.




Sorry to break this to you, but the “studies” Hyken mentions don’t look at consumer behavior, and as with most customer service research they are based on survey data, and that includes the “research” coming out of Temkin Grp, Forrester an similar “reputable” firms.
What they don’t warn you about is that we know in social science research that survey respondents often SAY one thing and DO something very different. As a result we have an industry driven but flawed research that perpetuates a lot of myths. So, on your myth about price, customers SAY they will spend more for quality service. Some of those that say that will, and many won’t. That’s a major reason why companies that provide poor customer service not only remain in business, but rake in large profits.
I’m oversimplifying here, but that’s the gist about the research and the “accepted knowledge” about consumer behavior out her on the populist Internet.
Excellent point, Robert. We can’t rely solely on survey data because it doesn’t always predict how people will react, only how they will respond.
Thanks for your comment!
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