I spent the day yesterday hanging out at my parents’ house, waiting around for Telus to show up to replace their modem. I waited patiently until 4:30, then I got on the phone to ask Telus if someone was actually going to show up. I was assured that someone was. It’s close to midnight as I type this, and my parents are still waiting for someone to show up. It’s the easiest fix ever, all they need is a new modem. (I took my modem over so my Dad could check his email.)

I’m sure just about every one of you has some sort of horror story when it comes to dealing with the phone company, or the cable company, or whichever. Feel free to share your most horrific of those stories in the comments section. I give bonus points for cuss words.

I’m much more curious about why these companies are so bad at customer service. I like to chat with the repair guy once he comes around, partially to be a nice guy and partially so the repairman remembers me as a nice customer. Whenever I talk to these guys, they all agree the company sucks at providing good customer service. They overwork their repair guys. There isn’t enough guys in an area, so work gets backed up. The company over-promises and under-delivers. When you call into the call center, the person on the other end clearly doesn’t give two craps about you, at least most of the time.

So why are companies so bad at customer service? Here are some ideas I have as to why:

Useless Procedures

I don’t have any first hand examples, but just about every big company has policies and procedures that are only marginally useful. Usually these procedures are thought up by middle management types that are years removed from front line service, with no thought about how the customer will react. Middle management has to come up with this stuff, mostly so upper management can see they’re doing something. Hey, you’d want to justify your existence too, especially if the alternative is being laid off.

They Still Think They’re A Monopoly

I remember when the Alberta government owned the phone company, (AGT- which stood for Alberta Government Telephone) along with all the liquor stores, as well as all sorts of other stuff. Alberta ended up selling all that stuff off, letting the private sector run what the government used to, with the notable exception of ATB Financial.

These former crown corporations were bought by other former crown corporations, or companies that were dominant in their field. Since Canada has such little competition in industries like wireless or television, these companies can continue to treat their customers like trash, content in knowing their competitors are doing the exact same thing. They’ll lose subscribers because of bad service, but so their competitors. It’s a perpetual motion machine of crap.

Even if more companies enter the space, well established companies will just buy them out. The field gets consolidated to a handful of players once again, and we’re back in the same boat as before.

No One Cares

I don’t want to paint everyone who works at these places as an apathetic moron. I’m sure there are some great employees out there. But, for the most part, the employees don’t care.

And why would they? An entry level employee in a call center is probably making all of $12 an hour. A company isn’t exactly attracting the best and brightest paying that much. Plus, the culture at these companies doesn’t exactly award going above and beyond the call of duty. Doing something innovative to retain a customer would be punished, not rewarded. Besides, the entry level employee isn’t given the authority to do anything anyway.

Short Sightedness

The reason things are like they are is because the company thinks of only one thing: profits. They figure if they keep costs down, the savings will go straight to the bottom line, making investors happy at the expense of customers.

As a consumer, this attitude translates to a pretty crappy customer service experience. Giving some sort of compensation for a bad customer service experience can help the company maintain a good relationship with a customer. If a company does nothing because it’s good for the bottom line, they can lose a customer who might have paid for decades. Which is the better long term decision?

The Company Has Intentionally Bad Customer Service

I’m convinced that companies have intentionally horrible customer service. They use confusing automated systems when you call. They give customer service reps instructions to give callers the run around. They randomly hang up on people who call in. I used to think all this stuff was just a result of crappy systems, but I’m now convinced some of it is on purpose.

For what reason? It’s simple really. If nobody calls in, then costs to run a call center go down dramatically.

Other Reasons?

Readers, can you think of other reasons why big companies are really bad at customer service?

  • http://www.moneybeagle.com Money Beagle

    It’s the bottom line. Companies focus on ways they can save money (less people, less training, less pay meaning less employee engagement, etc.) and that of course translates to a poor customer service experience.

    • http://www.myownadvisor.ca/ My Own Advisor

      Well said and agreed.  For some big companies, there is no driver to do so – that simple.  

      • Dlackmond

        at one time I was a manger for the MCI customer service we started life realy good , held meetigs weekly wtth reps to discusss how to be better and instituted many good reforms . After a few years the upper mgt sent down directives, not to take agents off phones ,cut traing,no agent pat on back and more, all in the name of efficiecy, how dumb.. I attribute it to the way we bring up our children ,with no morals,no esteme, the world owes me,and money it due me in great quantities, etc.— good luck future America !!!ie

  • Brandy

    I feel its because a) places dont hire enough people to ahndle the job so the employees get worn down and apathetic and b) companies are no longer loyal
    to employees so employees arent loayl to the company and could care less.

  • Anonymous

    Large companies do have intentionally bad customer service, especially insurance brokerages. In the Ontario Insurance World it is not unheard of for insurance brokers to “fire” clients based on their claims history or high maintenance needs. Especially, if the brokerage is having it’s portfolio being looked at by another brokerage for a buy out or if a brokerage is applying to an insurance company so they will have another market for their clients policies.
    You will know if you have been fired if your phone call is not returned within 24 hours, being put on hold for more then 10 minutes or at renewal time you receive a polite “We are unable to renew your policy as we no longer have a market for your business.”. Bottom line is if you cost them money you are out.
    .

  • http://twitter.com/AffordAnything Afford Anything

    What’s sad is that companies spend so much on marketing and advertising, but refuse to grant customers a $20 credit when it’s truly deserved. If they simply provided good service, they could get good word-of-mouth. That’s worth its weight in ad-budget gold.

  • http://www.youngandthrifty.ca Youngandthrifty

    I think Telus is notorious for their bad customer service.  I was deciding who to go for when we got cable (yup! cable! I join the ranks now)… and I called up telus to ask about their offers.  The guy I spoke to sounded like an ass.  He was rude and sounded very ambivalent about my interest in BUNDLING (saying that word should have made him quiver with excitement but it didn’t.).  He said they don’t care if I was a telus mobility customer, because they are two separate companies with different CEO’s or whatnot.

    I then called Shaw and they were much nicer, and patient and interested.  So I took my business there.

    I’m even a Telus shareholder and I’m not helping Telus toot their horn.  Their CSR’s need to wake up and stop being cranky.

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  • http://twitter.com/OutlierModel Outlier Model

    I am having the same problem with Questrade.  6 times I have called in 2 weeks.  Hung up on me once.  Told me my concerns would be forwarded to a manager. Nothing happened.  Told me that my request would be put therough in 3-5 days.  Nothing happened.  I call again and oh, they’ll put a request through, no problem.  Which will take another 3-5 days.  What the hell happened the first request?!  :/  And each time, there was absolutely zero willingness to let me talk to anyone else.

    Anyways, for me, I am packing up and leaving.  BMO might charge me up the ass but they’ve always given me amazing service, from when I was 14 years old until now.  $29.99 per trade is a bargain if I don’t have to fight with a company over 6 phone calls to fix a mistake on THEIR end.

    • Anonymous

      Hey, too bad you’re having that problem. I’ve heard Questrade is good to deal with, but obviously not.

      Stay with BMO. I’m a shareholder. :)

  • Ganhar Dinheiro

     Excellent article, I loved the information.
    Congratulations!

   
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