From the course: Managing a Customer Service Team

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Exploring the escalating costs of service failure

Exploring the escalating costs of service failure

From the course: Managing a Customer Service Team

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Exploring the escalating costs of service failure

- Service failures can be expensive to a company. But it's not always easy to see their impact. Sometimes they're hidden in multiple places within the customer service budget. Other times, these costs surface in other parts of the company. Let me give you an example. I called my cable company to upgrade to their phone, internet, and cable bundle. Unfortunately, it took three appointments before they could get everything working correctly. The first technician thought he had it right, but I discovered a problem a few days later. The second technician couldn't figure out how to fix it. It wasn't until the third technician came out that the installation was completed. We're going to take a closer look to see how this service failure cost the company money. The cost of service failures falls into three general categories. Servicing costs, goodwill costs, and lost revenue. Servicing costs are the costs required to provide…

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