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Is Poor Customer Service Quietly Eating Into Your Profits?

Many businesses focus considerable attention on winning new customers, increasing sales and managing costs.

 

However, one area that can have a significant impact on profitability is often overlooked: the unnecessary effort customers experience when dealing with your business.

 

This is known as service friction, and it can occur at almost any stage of the customer journey.

 

It might involve customers repeating information, being transferred between departments, chasing updates or waiting for someone to take responsibility for resolving a problem.

 

Individually, these situations may seem relatively insignificant. Collectively, they can damage relationships, increase operational costs and reduce profitability.

 

The Hidden Cost of Making Things Difficult

 

Think about the last time you had to contact a company several times to resolve what should have been a straightforward issue. How did it make you feel? More importantly, how did it influence your willingness to continue doing business with them?

 

Research published in the Harvard Business Review, Stop Trying to Delight Your Customers, highlighted the importance of reducing customer effort when building loyalty. The principle is straightforward. Customers value businesses that make their lives easier.

 

Every unnecessary telephone call, repeated explanation or avoidable complaint also creates additional work for employees. This takes time away from activities that could improve customer relationships, generate revenue or contribute to business growth.

 

 

Are Your Processes Creating Unnecessary Problems?

 

One thing I encourage business owners and leaders to consider is whether their existing processes genuinely support customers or simply make life easier internally. For example, a customer contacts your business with a delivery enquiry.

 

They speak to one person, who passes the question to another department. Nobody takes responsibility for providing an update, so the customer calls again. The issue may eventually be resolved, but how much unnecessary time has been spent by both the customer and your employees?

 

This is where reviewing the customer journey and identifying key moments of truth becomes particularly valuable. A moment of truth is any interaction where a customer forms or changes their impression of your business. These interactions can strengthen trust or gradually undermine it.

 

 

Better Communication Creates Better Commercial Outcomes

 

Removing service friction isn’t simply about introducing new systems or procedures. It’s also about developing people. Emotional Intelligence plays an important role in helping employees recognise customer frustrations, listen to understand and respond appropriately. When people take ownership, communicate proactively and demonstrate genuine empathy, customers are less likely to feel they need to chase for answers.

 

However, employees also need the confidence and authority to resolve appropriate issues without constantly escalating decisions to their managers. This combination of clear processes, accountability and effective communication can reduce unnecessary work while improving the overall customer experience.

 

 

Final Thoughts

Improving profitability doesn’t always require winning more customers or increasing prices. Sometimes, it starts by removing the obstacles that make your business unnecessarily difficult to deal with. Consider your own customer journey. Where are customers experiencing delays, repeating information or having to chase your team for updates? Addressing these frustrations can help reduce costs, strengthen relationships and create opportunities for repeat business.

 

If you would like to explore how Customer Service Training and Coaching can help your team reduce service friction, improve customer experiences and protect profitability, I’d be happy to have a conversation.

 

Call me on 020 8337 5937 or email gary@garymorgan.coach.

Website: www.garymorgan.coach

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