The Profitability of Making Customer Service Bad: Fact or Fiction

August 9, 2019 / GuidesFor Team

 It is common knowledge that a customer will contact customer service whenever he needs to have his complaints redressed. Companies always care for their reputation and they make sure that all issues are addressed. However, based on this article by Harvard Business Review, there might be profitability when it comes to having bad customer service. The reasons often involve markets where there are less competition. Even if they have to make a few payments to sweep things under the rug, it would be more beneficial for them not to fully address the complaints of customers, even if it risks damaging their reputation.  It is quite interesting to note that the tiered structure of call centers is aimed to not fully redress the issues and complaints of clients. The article says, “This structure, we argue, keeps a lid on the amount of redress customers are willing to seek. In other words, by forcing customers to jump through hoops, the organization helps curb its redress payouts.”  It is serious food for thought, both for customers and business owners.~~ Lornajane Altura





Read the source article at Harvard Business Review

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