SERVICE FAILURE AND ITS REASON

A service failure, simply defined, is service performance that fails to meet a customer's expectations.
Typically, when a service failure occurs, a customer will expect to be compensated for the inconvenience
in the form of any combination of refunds, credits, discounts, or apologies.

➢ Disruption of service does not meet a consumer’s expectations.

➢ A gap exists between customer expectations and service performance.
➢ Service failure occurs when the perceptions of the customer fall below their expectations in the
delivery of service.
➢ When a firm or service supplier fails to meet customer anticipations resulting in displeasure
during service delivery.
➢ Potential problems resulting from variability of services while they are performed.

Every business faces the challenge of customer service failure – almost daily. This would happen despite
a company’s best efforts to keep its customers happy by ensuring that they receive the kind of service
they expect.

However, research results indicate otherwise – a report shows that about 89% of customers move to a
company’s competitors because they received shabby treatment and bad customer service. This means
that any company that has customer service lapses could potentially be losing a very large chunk of its
customers – not a great way to conduct business. Customers are saying it loud and clear that high-quality
service is one of their top priorities and demands, and they would leave irrespective of prices and product
quality if companies were unable to provide service excellence.

Businesses become unsuccessful or remain in the lower rungs not because their products are too highly
priced or of low quality – customer service failure is the cause. While great products priced competitively
may attract customers, it is superior customer service that would retain customers and make them loyal
and profitable. There is no doubt that customers are the lifeblood of a company and the only way that
businesses can survive today is by reducing customer service failure and elevating the standards by which
they conduct themselves with customers. Despite the fact that service is of prime importance in retaining
customers and making the company profitable, several companies and their representatives fail at this
crucial aspect. Customer service failure occurs when companies believe that problem solving is all that
matters, and hence are always in reactive mode. This approach most often ends up irritating customers
and causing them to leave.
One of the top things that would feature in the list of customer service failure is a company’s inability to
deliver on what it promises / overpromising and under-delivering. In daily interactions, for example, a
customer service representative might promise a customer that he or she would receive a call/resolution
within say 3 hours. However, the customer might not receive a call the same day or would hear back from
the company way beyond the ‘promised time’. It is extremely annoying and irritating for customers to
receive this kind of shoddy service, and they would find it easier to look around for a different company
to take their business. Committing deadlines and then not meeting them is a sure customer service failure
and a sign that the company is unable to keep pace with their customer’s needs. Market experts and
authority figures vociferously say that it would be better for companies to under promise and over deliver,
as receiving more than they bargained for always makes customers happy.

Providing ambiguous responses and fuzzy timelines is another customer service failure. Customers hate
having to guess or wonder when a company would respond, what is happening on their issue, how much
time they would need to wait, and other such concerns. A company that is truly customer-focused would
provide achievable deadlines, and clear timelines with dates and times to customers, and would ensure
that every effort goes into achieving the timelines. We know that in today’s overcrowded market and
similar offerings, it is becoming increasingly tough for companies to stand out. Great customer service
and experiences would ensure that customers remember and recommend a company. Research shows that
at least 71% of those customers who received great service would recommend a company and its products
to others – and there is no marketing tool more potent than positive recommendations from a happy
customer.

Another top customer service failure would be assuming the customer knows a lot about your company
and its offerings. This is a failure because customers perceive products, service, and brands from their
own perspective that would depend on their beliefs, experiences, needs, expectations, and current
situation.
Similarly, believing that your company already knows a customer’s problem because your company may
have dealt with several similar problems is a mistake. As mentioned, each customer is unique and hence
would expect that a company listened patiently to their issues and approached each problem as new and
unique – receiving customized solutions and responses is what customers want, and companies that
provide
‘umbrella responses’ would soon find customers leaving them for a company that would treat them as
special.
With the surge in technology, several channels are now available for customers to interact with each other
and with companies. Customers expect that companies would not only respond to them via the channel of
their choice, but would also provide consistent and great service across all channels. Customer service
failure occurs when companies set up service on all channels, but are unable to provide consistent service
across each one, or fail to use the preferred channel of customers to respond and interact. Most often,
companies do not have adequate or skilled staff managing the service channels. The knowledge and skills
required to provide high quality service varies across channels, and unless a company is able to build
teams proficient enough to deal with customers across varied channels, it would continue to fail at
providing top class service. Companies must understand that every channel of communication must link
seamlessly with each other, and would need to invest time and resources in integrating all the channels
such that customers see ‘one face’ of the company.

Customer service failure happens when companies ignore communication from customers. This
communication could be in any form – an email, a comment on social media, or any other type of
communication – customers expect a response from the company. It is extremely vexing for customers
when companies seem to ignore them by not responding – customers would much rather leave for a
company that would treat their words as important. Even a company’s most loyal customers are sure to
leave if the company ignores them or does not give their communication the importance it deserves. It is
imperative for a company to answer every communiqué received from customers in a timely and efficient
manner.

Customer service failure occurs often because of lack of knowledge and training of the customer service
and sales personnel. Lack of knowledge leads the representatives to provide incorrect product / service
information, and tall claims regarding the offerings and company. This may lead to sales, but as
customers discover the offerings are nowhere close to the claims dissatisfaction and annoyance sets in,
leading to returns and customer churn. Feeling cheated and betrayed obviously destroys trust in a
company, and customers not only leave, but also spread their experiences to others, and post negative
comments online. It is imperative for a company to ensure that its representatives behave responsibly,
provide accurate information, do not make false claims, and have updated knowledge of the company and
its offerings. Ensuring all this would build and sustain trust in customers, which is extremely imperative if
a company is to remain successful and profitable.

Customer service failure is the shortest and surest route for a company to lose its most loyal and profitable
customers, as also prospective ones. Customers now buy more for emotional reasons and if these reasons
are not met, customers would most likely leave. Providing top-class service is the surest way to build
robust relationships with customers, ensuring that they become loyal and raving brand ambassadors.