Customer Service Reputation

Assessment of the company’s customer service reputation is an assessment of the aggregate of the company’s funds, which give consumers incentives to purchase a particular product that makes company profits. Rating customer service reputation of the enterprise means that it is needed to determine the set of those elements of the business or personal qualities that encourage customers to contact with this company and bring profit in excess of the firm to obtain a reasonable return on all other assets.

Today for any kind of businesses it is rather important to be competitive and this competitiveness is determined not only by the product quality, but also by the reputation that company has among its customers. Hunting after the decrease of cost expenditures, companies forgot that they should struggle for is consumers. According to the number of researches that were made during last year, was found that more than 60% of people agree tom pay more if the company has excellent customer service. Therefore, what is more effective to continue the highly expensive struggle with company’s expenditures or to concentrate on the full satisfaction of the customers by the company’s services.

The best example to answer this question is Starbucks Corporation. Starbucks is the largest coffee producer in the world with a network of more than 19 thousand stores in 60 countries including 12,781 in the U.S., 1241 in Canada, 1062 in Japan, 976 in the UK and 60 in Russia. Starbucks sells espresso and other hot and cold drinks, coffee, hot and cold sandwiches, snacks, etc. This company has created so strong reputation of excellent customer service provider that most people started to associate coffee drink with Starbucks Company.

The company has set the goal that every client of the company should be fully satisfied with the services and products he/she has received. This was rather ambitious and hard to implement objectively, however company’s managers knew what they are struggling for. It is well-known that the person that liked company’s services will tell about his/her experience to two people, however if the service or product was poor ten people will be told about this. Therefore, it is rather effective strategy for the company to create such customer service reputation that would become the best marketing campaign and advert. 

The best example of the excellent customer service at Starbucks is remunerations that clients receive because of any mistake or delay that he/she has faced in store. In such situations employees smile, apologize, thank for the passion, correct the mistake or delay and give the free beverage voucher (Starak, 2008). The client that has faced any little problems is fully satisfied with the problem’s solution. Moreover, the customer loyalty to the company is increased in many times. This is a very important to stress on that; the free beverage voucher is very smart solution of problems, because this voucher guarantees that this person will be the client of the company one more time and this is enough to become the adherent of the company.

The high quality of Starbucks’ products and its excellent customer service reputation assure that any time the one visits company’s store, he/she will be fully satisfied by the made purchase. It have resulted on the profits of the company and made it the largest coffee producer in the world.

In another case, asking a lot of people about the company with poor customer service reputation, most answers are Wal-Mart. It is US-based retailer, which manages the world's largest stores retailer network. Despite the fact that Wal-Mart as Starbucks is the leader in its market, the first one is being famous for the bad customer services and high rates of personnel turnover. Such bad reputation the company has gained because of its desire to obtain quick profits. The company has made rather dangerous decision that has been ruining the business for many years.

Wal-Mart has gained such reputation because of its poor personnel management. Company does not care about is employees’ health, living wage, discrimination, sustainability, etc. (Goldschmidt, 2008). The company is being working on this issue improvement. However, it is very hard to change the reputation that was confirming long years. The poor customer services and the low quality of its products have made Wal-Mart to be in the list of the worst companies. The main mistake that the company’s management forgets about is the fact that employees are those who are perturbing for the customers’ satisfaction from which the profits of the company depend. These have resulted in the list of the employees’ strikes, increase of personnel turnover, decrease of already low customer service reputation and affected profits of the Wal-Mart company.

In conclusion, it is necessary to note that today the differences between the levels of customer service are equal to the differences between success and failure. For both companies their reputation is a key to the successful performance in the market. Having excellent reputation among company’s customers shows that company cares about its clients, and people will always be the clients of those companies who show them this care.

Reputation depends on the quality of customer service that companies provide. If the customers are satisfied, they will continue to spend their money at the store and will obviously bring more clients. Wal-Mart should understand that the unsatisfied customers mean the disaster to the company. Therefore, company should concentrate on the improvement of customer service through the improvement of employees’ policy of the company. They should improve the feedback, develop customer friendly processes, decrease the personnel turnover rates, etc. Starbucks should be concentrated on the decrease of errors in terms of customer service. Excellent reputation is what makes simple clients to be strong adherent of the company.

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