HOW POOR SERVICE CAN BE YOUR BRAND’S EXTINCTION LEVEL EVENT

When building a strong brand there are many important factors. The quality and appearance of the product or service. The ability to resonate. Ingenuity. Competitive advantages. Core competencies. The list goes on. However, one of the most critical elements is the strength of the brand’s representatives and the level of service they deliver.

Should quality ever wane, an extraordinarily crafted or positioned new product can recapture fascination. Should a brand temporarily fall out of favor, they may be but a campaign or product launch away from their return to glory. Should the ingenuity, competitive advantages, or core competencies once held fade, the legacy of the brand or the strength of its marquee product can, at the very least, provide a bit of life support. When the quality of service is compromised and the reputation turns unfavorable, however, the empire often falls—and in many cases, is wiped from existence.

QUALITY OF SERVICE MAY BE THE UNIQUE IDENTIFIER

Why does the caliber of service have such a significant impact? Simply put, unlike the other factors which define a brand, the recipient often internalizes the level of service. Particularly when the experience is less than favorable, the consumer takes the interaction as not just a reflection of a poor process but as a personal slight. Depending on the magnitude of the “slight” or frequency of occurrence, the resulting resentment can be everlasting.

Unless the brand is the only offering in the space—which is quite rare today, and even when so, typically does not last long—consumers have options. With that being the case, why would they patronize a brand that has caused offense, especially if repeatedly? There is no shortage of upscale or luxury hotels from which to choose. No lack of options when it comes to luxury sedans, timepieces, fashion, etc.

In most cases, the one element that truly separates one brand from the next is the level of service. It is one of the primary reasons (smart) brands invest so heavily in education and training. Those who master the art of remarkable service develop reputations just as equally built on this ever-important quality as the product itself. And because the service experience is often internalized by consumers, a brand that excels in this area often realizes stronger and unyielding loyalty from its base, increased sales, and greater trust. Case in point, “91% of customers say a positive customer service experience makes them more likely to make another purchase”, according to the 2020 State of the Connected Customer report, as cited in Forbes. Forbes also claims that “Companies with a customer experience mindset drive revenue 4-8% higher than the rest of their industries.” Further, Qualtrics XM Institute, as cited in SUCCESS, affirmed “that 76% of customers will trust a company with strong customer service. Compare that with only 40% of customers trusting a company with poor service.”

POOR SERVICE CAN CAUSE IRREPARABLE HARM

Everyone has had an unpleasant service experience, and many—at least 47% according to Salesforce—have vowed to never patronize that business or brand again. With so many likely options—particularly with the prevalence of the Internet and other technologies, along with globalization—the threat of the damage being irreparable and losing future business to competition is quite real. The previously cited Salesforce article also states that “76% of customers now say it’s easier than ever to take their business elsewhere.”

A single failed engagement is bad enough. However, what if the issue is compounded by either a broken process, inadequate training, poor talent selection, or some other widespread detrimental factor? With a reported 13% of unhappy customers telling 15 or more people of their unpleasant experience, bad word of mouth can spread like wildfire. As a result, not only is the brand possibly losing its immediate base, but it is also most likely stifling its ability to attract new customers (growth) as well.

Before long, negative guest experiences have defined the brand and quite possibly brought about its ultimate demise. Even with a complete overhaul of the customer service process and significant PR and marketing efforts, depending on the brand’s solvency, the degree of competition, the remaining level of demand, core competencies and competitive advantages, and other factors, there may not be time to reverse the tide. The only absolute way to ensure a brand’s longevity—or at least increase its odds of survival—is by investing (financially, timewise, etc.) in robust and effective customer engagement measures.

The cruel truth is, whatever that brand is offering is either a dime a dozen or can—and will—most likely be replicated. There may be subtle differences, such as cosmetic changes or prices, but, to a degree, those are largely inconsequential. Even if a brand’s competitive advantage is cost of goods, which they have elected to translate to lower consumer prices, “86% of buyers are willing to pay more for a great customer experience.” For premium brands, the reality is a bit more biting. According to PwC, “customers are willing to pay a price premium of up to 13% (and as high as 18%) for luxury and indulgence services, simply by receiving a great customer experience.”

In the end, it is the quality of the experience that is the defining factor in consumer loyalty. This is not to suggest that all else can fall by the wayside; but all else being equal (or even thereabouts), the level of excellence with which a customer is treated will win the day and cause the brand to prevail.

HOW TO AVOID DOOMSDAY

There are several best practices to avoid a service-related doomsday scenario. A few of which are presented here.

The first step, believe it or not, is not to hire the right people. Hiring the right talent is certainly an important and necessary step, but it is not the first. To attract top talent, the brand must first have an incredibly sound and effective customer service process. The strength of said process, in short, is based on a thorough understanding of the consumer, the team member, product or service, among other factors. Actively requesting and truly valuing customer and team member feedback is the best way to truly understand the tenets of successful engagement and mitigate—if not avoid—any friction or dissatisfaction.

Next is to develop a robust education and training program, with regular updates and certifications. Not only does training and development lead to greater efficiency and effectiveness, but it also leads to increased job satisfaction and retention. According to a recent survey, “94% of employees would stay at an organization longer if their employer invested in their career development. They also found that retention rates are 34% higher at organizations with career development opportunities.” Admittedly, education and training are but two components of professional development, but there are clear correlations between education and training, job performance, and career development.

With a stellar reputation for outstanding service to both customers and team members alike, the last major step—at least that will be covered here—is attracting and nurturing the right talent. The use of technology such as recruiting tools that remove bias and focus on skill sets necessary for success in the role, insights gleaned from customer feedback and best practices, and ensuring there is a cultural fit, among other tactics, can help companies both attract and hire top talent. Interestingly, some of the main points of candidate attraction—reputation, professional development, etc.—will also be key factors in team member performance and retention.

CONCLUSION: EXCEPTIONAL SERVICE IS A BRAND’S BEST CHANCE FOR EVERLASTING VIABILITY

Again, not to discount the importance of the actual product or service, or that of effective marketing and PR, but guest/customer service is arguably the strongest factor in determining brand loyalty due to its highly personalized impact. And because it is internalized, once one feels slighted, it can be difficult—if not impossible—to mend fences. The most effective way to avoid such misfortune is to invest in providing unparalleled service, from the processes themselves to training & development to building the most effective team.