Will Bad Customer Service
Kill Your Business?

Collection agencies serve a purpose, though many people don't think of that purpose with many positive feelings. In essence, a collection agency's purpose is to try to collect on outstanding debt for their clients. They do what employers don't have the resources to do, and overall it's a very legitimate business.

However, we've all heard of times when they go over the line. We've heard tales of some representatives threatening, lying or calling you a liar, yelling, trying to trap people into payment arrangements they know can't be made. Most people don't know their rights, but there are laws governing collection agencies and how they treat people.

The truth is that there are many collection agencies that are pretty good, follow the rules, use good customer service skills, and will work with their client's customers. They understand that alienating the customer usually means they'll collect less money, because most people who are delinquent on their bills are willing to pay something, even if they can't match the minimum payments they were required to pay before. And, many collection agencies take the blame for companies that have internal collection departments, who are supposed to be under the same rules as true collection agencies, but sometimes take liberties because, as members of the community, they feel they're entitled; of course they're wrong, but the damage is done anyway.

So, in essence, collection agencies get a bad rap because some people have had a bad experience with them, and the word of mouth on something like this spreads like wildfire, and condemns an entire industry. The lucky thing for collection agencies, however, is that they don't have to market themselves to the populace; they have to market themselves to other businesses, and most businesses only want to know what their collection rate is, and nothing else.

What happens when the business has to cater to the general public? I was at a luncheon a couple of weeks ago, where the speaker was Craig McFarlane, a renowned international blind speaker whom one Howard Cosell once referred to as the greatest athlete this country has ever produced; now that's saying something. He also happens to be a certified financial advisor. He was telling a story of being on a plane one time where he just wanted to rest, but the woman next to him, realizing he was blind, started talking to him, and pretty much rambled along for about ten minutes. Then she finally paused, and asked him what he did, and he said he was an insurance salesman. He said the woman said "oh", and didn't talk to him the rest of the flight.

Most of us have life insurance, which means many of us purchased that insurance through an insurance salesperson of some sort, yet if we're truthful to ourselves we know that we often cringe when we encounter someone who tells us that's what they do for a living, because we immediately believe they're going to start trying to sell to us. And, unfortunately, it's often true, because, like most salespeople, they're taught that every person they encounter is a potential client, and they should always be prepared to market their services to anyone.

That sounds fine from the salesperson perspective, but what about the customer service aspect of it all? As an independent consultant, it's something I have to deal with when it comes to making phone calls, yet it's somewhat different because, in essence, I'm a business to business marketer, whereas insurance salespeople market directly to the customer. I'm sure the sales model that insurance companies teach earns them great profits, but I'm not really sure that it does much for the sanity of those who market their product.

Last year, in one of my newsletters, I wrote about this problem I had with the hard drive in my laptop, and how I'd gone to this major computer chain to buy a new one, only to learn, once I installed it, that it not only wasn't what I thought I was buying, but was used because someone else's information was still on it. Since that time, because of many customer service issues as well as a host of other things, the chain has closed all its stores in New York state, and, as recently as February, announced that it was shutting down more than half of its remaining stores across the United States in an effort to focus on their top performing locations. Far from people bemoaning its loss, the internet is replete with joy over the closings, and many stories of mistreatment of their customers.

Customer service issues in all industries, especially solo entrepreneurs, will not only hurt business, but it could shut one down, even if a specific product is needed. I remember a story from another consultant about a gentleman in Utica who provided a specialty product and was the only marketer of that product in central New York. Yet, in only two years he had to shut down his business. He supposedly was a rude man, thinking that he could talk to people any way he wanted to because he was the only local provider, but his potential clients decided that they'd rather spend more money to have that particular product shipped to them from afar than deal with him. Somewhat to his credit, he wondered why he was having problems with the business, so he brought in a survey company to do a test, and of course the results indicated that the problem was him. He promptly fired the survey company, continued doing things his own way, and that was that for his business.

Good customer service really can't be that hard, can it? Responding to people in positive ways, greeting them in a friendly manner, not being obtrusive, returning phone calls and email, being honest, paying them some attention,... what's so difficult about that? Isn't that what all of us want when we go somewhere to purchase our products or services? Is it really all that hokie to have someone greet you when you go to Walmart? Who else remembers the days when many department and grocery stores had greeters?

Good customer service skills are essential to any business that wishes to have business. Making sure every person who's employed by your organization has the proper skills could be the difference between big sales or your very existence. Don't skimp on the cost of training; you'll earn it back and more. The alternative is much less pleasant.