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Poor customer service?

percentage of customers lost through bad customer service


Cost of losing a customer?

customers are important. If one is lost because he or she received bad service or hat a terrible experience this person will relkate that story to friends and those persons may never want to use the particular company.


Can short term profitable decisions cause firms to lose customers in the long run?

Yes. For example, a business could add a new line of products. Customers could at first buy them, but later find out they are inferior products. Unless the company is willing to back up their product, customers are likely to be lost. Another example is a service business that hires a new employee to work on repairs. At first, the employee increases the number and speed at which repairs are made and more profits are made. Later, the owner leaves the employee alone to do the repairs and he damages customers items, does not finish repairs, etc. Depending on how the owner handles the issues (satisfying the customer and taking a loss, trying to cover up his employee's mistakes, etc.), the owner could lose customers due to hiring that employee.


What are the disadvantages of dynamic and fixed pricing?

Dynamic pricing can lead to customer dissatisfaction as prices fluctuate, potentially causing frustration and perceptions of unfairness. It may also result in lost sales if customers delay purchases, waiting for lower prices. On the other hand, fixed pricing can limit revenue opportunities, especially in high-demand situations, as it doesn't capitalize on customers' willingness to pay more. Additionally, it can lead to inventory challenges, as prices may not reflect real-time market conditions.


Why many people talk about customer service?

Many people discuss customer service because it directly impacts their experiences with businesses and influences their loyalty and satisfaction. Positive interactions can lead to repeat business and referrals, while negative experiences can result in complaints and lost customers. Additionally, with the rise of social media, customers feel empowered to share their experiences, amplifying the importance of effective customer service. Ultimately, businesses that prioritize customer service often see improved reputations and financial success.