The Customer is King or Queen

Ask successful entrepreneurs to share their business secrets, and it’s likely things like focus, determination and financial discipline will be mentioned.

However, I would wager a bet that providing optimal customer service should top the list.

Enterprises can do little to stop customers from turning their backs on businesses when service delivery is inadequate. This is despite millions being spent on marketing, advertising and sales promotions.

People anticipate that substandard product quality and suboptimal service rendering complaints will be taken seriously.

Manufacturers of motor vehicles, electronic and computer equipment, clothing, household furniture and domestic appliances have learnt this the hard way.

Service does not cease when a sale is initiated, but this is actually when it starts.

The same applies to the service industry.
That is why it is often the case that one restaurant is consistently full of diners, while a competitor across the street or around the corner struggles to survive.

Mobile firms, hotels, tour operators and airlines, among others, are subjected to similar treatment by dissatisfied customers.

And by failing to take remedial action promptly, patronage is lost for a long period, if not forever.

When it comes to service excellence, regularly training staff to cope in cases of crisis and having a plan that guides the processes to be followed when problems arise, is the most effective approach.

Service level concerns are not exclusive to the private sector but are prevalent in government entities as well, this includes public enterprises (PEs).

It is difficult to locate a person who has not been blatantly ignored or kept waiting to be served for ages, or shunted from one office to another when attempting to be served at public sector institutions.

Although it is their job and what they are paid to do, many civil servants do not consider that taxpayers are the ones indirectly paying their salaries. That is, members of the public, the very same people they often neglect to serve effectively.

Unlike at an enterprise where poor performance can result in the loss of a job, or failure to improve service delivery results in bankruptcy for the firm, at a public sector entity, the lack of service never results in job losses. And, thanks to taxpayers, the entity will likely never face bankruptcy.

There are two PEs that have and continue to learn the hard way that substandard service is the most effective way to lose customers, that will never return.

They are our telecommunications and rail operator service providers. And both are struggling.

Due to lacklustre service provision for decades and a poor service delivery record, despite spirited efforts, the PE providing telecommunication services has not managed to expand its mobile service.

To enhance delivery service in the public sector, a trend is to create stand-alone entities that are often semi-commercialised where the management and key personnel are employed under performance-related and time-specific contracts.

In this geographical region of the continent, the outsourcing of rail transportation services to the private sector is gaining popularity.

In the private sector, there is no doubt that the customer remains the king or queen of a business, and as such, should always be treated royally.

The bottom line for any enterprise, even PEs, is that providing customer service is a smart approach to attract repeat customers and a path to success.

• Danny Meyer is reachable at danny@smecompete.com