http://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html

If you ask people to give an example of a time when they experienced bad customer service then they can probably tell you of one immediately, closely followed by examples two, three four and so on. Ask someone to give a positive example then this is met with a little more time consideration before an example is given. This is one of the main reasons why bad customer service can kill a business before it even starts.

When people engage in a positive transaction, they tell their friends, family and colleagues. Word of mouth referral is one of the most effective forms of promotion as it costs nothing but carries a huge amount of credibility as it is based on the customer’s personal experience. Evidence shows that a bad customer service experience is shared between 10 people, who are likely to tell another 10. From this one negative customer service experience a negative multiplier effect is created.

Bad customer service can really hit the finances of businesses and whilst a 99% approval rating may sound great, that 1% can still be pretty damaging. A 1% cut in customer service problems could generate an extra £10m in profits for any medium sized company over 5 years. Customer loyalty is being tested at every avenue but it is a massive 68% of people that quit using a company because of the attitude of staff toward the customer as opposed to 9% because of competitive reasons. From these negative experiences, it will take a company a lot of leg work to get a customer back on board. This leg work shows itself in the loss column on a company’s accounts.

It’s not all bad news though as a company is more likely to retain a customer whose complaint has been listened to and resolved satisfactorily with a whopping 95% sticking around according to Lee Resource Inc.

A final important factor to consider when deciding upon which customer service strategy to follow is review sites. A customer may only leave a few words but their ripple effect can be felt on site after site. Whenever I am shopping for something online, I always seek out the negative reviews of a company or product first. Positive reviews are 10 a penny but negative ones can cost a packet.

#1 Buy your own domain

This is THE single most important thing for you to do. If you have your own domain you will always be in control of your website. It is very simple and low cost. Try www.123-reg.co.uk

#2 Never release access to your domain

You will need to point your domain to your supplier’s hosting accounts – do this yourself. If you are struggling then ask them to talk you through it.

#3 Try CMS before you buy

Try a demonstration version of the Content Management System (CMS) and ensure it does everything you need it too.

#4 Make sure you own the IP

You need to own the Intellectual Property Rights to the final design. It is common to use Open Source Software for the CMS engine but you need rights to the design.

#5 Check their references

Make sure that the websites you can see on your potential suppliers website were actually created by them – call the numbers on those sites and ask about their experiences. Don’t rely on testimonials and if you are given references DO follow them up.

#6 Avoid hidden charges

It is all to common for suppliers to quote a low price to win your account then jack up the price. Whilst it seems obvious get the quote to include everything and to state any additional charges and in what circumstances they will arise.

#7 Preparation Preparation Preparation

Do not underestimate the amount of time you need to set aside to create the content for your website. Some suppliers will do this all for you. If is not stated in their quote then assume that you will have to provide everything.

#8 Test yourself

Before your website goes live test it for yourself. Once you are happy send your supplier an approval in writing. Don’t settle any outstanding balance until you are 100% happy.

#9 Check the small print

All to often sales people will explain a high level version of what you are getting. We are all to familiar with the phrase “terms and conditions apply” from TV adverts. Do check the legals that accompany the quote. If there are none – make sure you read the ones that come with every invoice because once you have paid then you are deemed to have accepted them and there’s no going back.

#10 Backup

Ask for a CD backup of your website on completion – before you agree to the quote. If they refuse then it will tell you what kind of company they are!

All common sense but they will help you avoid future problems should you fall out with your supplier.