Poor Customer Service Can Be Costly, Very Costly – It Could Cost Comcast $45 Billion

Posted on February 18, 2015 by

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Many are aware of the bad reputations cable companies have in regards to customer service. The costs associated with poor customer service have been discussed frequently on #SMChat. Although we have addressed many pieces of the cost conversation, i.e. identified the costs associated with issues, the financial benefits of resolving issues and reducing time to resolution, we have never identified that cost to be anywhere near $45 Billion. Let me say that again, $45 Billion, that’s what poor customer service could cost Comcast and unfortunately it could cost the cable industry more than that in the future. Is it too late for them to swing the ship around? Is there anything that they can do?

We discussed the “4 Keys to Killer Customer Service” more than 6 months ago, but revisiting in light of current events seemed to be a good idea, here are the keys according to Time:

  • Quality Product or Service
  • Stellar Service
  • Time is Not on Your Side
  • Be Prepared for Things to Go Wrong

There is a 5th Key missing from the list. Do you know what it is? It is the only key that can make a difference to all of the other keys on the list and it seems to be the one Comcast continues to forget about…People. People who are empowered, compensated and connected. People who are hired for organizational fit, who are compensated for the work they do, who are appreciated in their role, who are considered in the decision-making process and connected to other areas of the organization are willing and able to contribute at much higher levels. The return on investment in building a service-centric organizational model could have had an ROI of $45 Billion for Comcast, there is significant uncertainty about how this will play out in the coming months. In the short-term, hopefully this will get the attention of other organizations that need to shift their customer service model.

Customer service can make or break an organization. We will focus on customer service impacts and outcomes during the February 18th Customer Service Feature on #SMChat. We hope that you will join us at 1pm ET to discuss the questions below.

Q1. Do you think it is too late for Comcast to turn things around? Why/why not?

Q2. What is the first step in shifting the customer service reputation of an organization?

Q3. How can customer service partner with other areas of the organization to generate better outcomes for customers?

Q4. How can Comcast, or other organizations with bad customer service reputations, change public perception?

Q5. What recommendations would you offer to organizations that need to switch their current customer service model?

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Posted in: Customer Service