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Leslie Budd on... customer services

Updated Thursday, 7th October 2010

Dr Leslie Budd explores the importance of customer services

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Leslie Budd

Customer service is a bit like the scarlet pimpernel.  They seek it here, they seek it there, they seek it everywhere.  Many businesses tend to relegate customer services to a secondary role, when in fact it is central to the front of house function.  If we look at airlines, we find that the legacy ones tend to compete on quality whilst the budget ones compete on price, but what connects them is the volume of customer complaints about quality.  If you outsource your customer service operations using online or telephone media, you often find the transaction costs of managing the increased volume of complaints rises significantly and defeats the purpose of outsourcing in the first place.  The bottom line is that if you relegate customer service to a secondary role and do not make it core to your business, your reputation may suffer and your existence put in doubt.  That’s my view, you can join the debate with the Open University.

(1’35”)

 

 

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