The Evolution of Customer Service: From Satisfaction to Decline

The Changing Landscape of Customer Service

For many years, customer service was on a positive trajectory, driven by the belief that sales and profits were closely linked to how well customers were served. In the early 1970s, I entered the customer-service and research sector, just as a movement began to place customer satisfaction at the forefront of business strategies.

The Rise of Customer Satisfaction

Customer satisfaction surveys gained popularity across various sectors, including B2B, consumer companies, government, and nonprofits. The 1990s saw a shift from merely satisfying customers to fostering customer loyalty, with the idea that satisfied customers would remain loyal.

Steps to Optimize Customer Service

To enhance customer service, organizations should follow these essential steps:

1. Identify what matters to customers.
2. Measure how well their needs are met.
3. Investigate areas of dissatisfaction and strengths.
4. Develop actionable plans based on findings.
5. Allocate resources effectively.
6. Monitor the effectiveness of implemented strategies.

The Decline in Effective Customer Service

With the rise of advanced technology, many organizations began to adopt low-cost methods to gather customer feedback, leading to a decline in effective customer service. Email blasts and research panels became common, but these methods often fail to capture a representative sample of the customer base.

The Impact of COVID-19

The COVID-19 pandemic exacerbated customer service issues, resulting in labor shortages and delays across industries. Many customers now face a lack of support when issues arise, as seen in personal travel experiences and home remodeling projects.

The Importance of Clear Communication

To improve customer service, businesses must clearly communicate:

• What services/products they offer
• Operating hours
• How customers can contact a real person for assistance

The Path Forward

Organizations should return to comprehensive customer research methods, focusing on understanding customer behavior through in-depth conversations and continuous measurement. By prioritizing customer needs, businesses can enhance their service and satisfaction levels.

Doug R. Berdie is a retired marketing and social research professional.