Customer Service in a shrinking economy

1. Steven Sin, Melissa Snelling, Craig Leibelt By Jena McGregor, AiliMcConnon and David Kiley Customer Service in a shrinking economy

2. Article Overview • Companies are finding it difficult to maintain customer service : sinking sales and declining employee morale • Companies may feel forced to trim costs, cutting too deeply can drive away customers • Customers are wanting more attention, better quality and greater value for their money • Companies are focusing more on loyal customers then one-time customers • Put customers first opposed to those that sacrifice loyalty for short term gain have performed better in this economy

3. Hertz • Richard M. Garber rented cars from Hertz 20-40 times a year for business trips • Nobody was waiting with a handheld check-in device • Drag his bags to the counter to return the car • Difficult to track down Hertz employees for help • "When you're rushing for an airplane, every minute counts," says Garber. "The less convenient they are, the more likely I am to try someone else."

4. Hotels • Hotel chains such as Four Seasons and Marriot are joining up to buy goods and services, instead of each hotel buying it on its own • Coffee • Valet parking • Cleaning Contracts • Landscaping Services • The Ritz Carlton have been doing their laundry at night to save on electricity costs as well as replacing fresh flowers with potted plants • First-time customers may not notice the small changes such as the fresh flowers, but the repeat customers probably will. • That has led to a renewed emphasis on "tiering"—routing elite-level customers to better agents, nicer surroundings, or faster service.

5. Zappos.com • In the past have offered free shipping on orders and returns, and have even shipped orders overnight for any customer • Recently they are focusing their spending on a new VIP service for their most loyal customers • Now the site can only be accessed by loyal customers who receive an invitation • Promises overnight shipping • Earlier access to sales and new merchandise • "We decided we wanted to invest more in repeat customers," says Hsieh. "We're shifting some of the costs that would have gone into new customers."

6. Cheap Technology • Some companies have been experimenting more with cheap technology • Responding to customer complaints via twitter • BMW offers free Wi-Fi to customers while waiting for their vehicles to be serviced, saves costs on giving out and maintaining free loaner cars • When companies come up with simple, low-cost ways to trim costs while improving life for customers, they're likely to win in good times and bad • "I have a saying: 'Fix the customer before you fix the car,' " says Harris. "If you focus on fixing the customer's problem first, the rest is easy."

7. Top 10 in Customer Service • LL Bean • Overstock.com • Zappos.com • Amazon.com • Newegg.com • QVC • JCPenny • Coldwater Creek • Nordstrom

8. Questions?

9. Sources • http://www.businessweek.com/magazine/content/09_09/b4121026559235.htm • http://seekingalpha.com/article/114831-overstock-amazon-near-top-of-best-customer-service-survey • http://images.businessweek.com/ss/09/02/0219_customer_service/2.htm