Why I'm cautious about customer service. (satisfying customer demands while maintaining the company's profitability) (Operations): An article from: Chief Executive (U.S.)

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From the supplier: Offering superior customer service only makes business sense if it can be achieved without sacrificing the firm's profitability. Although pursuing quality customer service can enhance profits, it can also drain a company's resources because of the costs it entails. For example, it cost American Airlines more than $250,000 to come up with tool for measuring customer service quality. Small companies, such as Monitor Products Company Inc, just cannot adopt this 'never-mind-the-costs' approach to quality. Customer expections continue to rise partly because of technological innovations, and companies with limited resources cannot hope to match its larger and wealthier competitors in meeting these expectations. The best strategy that these companies can use to balance quality and profit is to concentrate on keeping their present customers satisfied and to take on only the new businesses that they can serve profitably.

Citation Details
Title: Why I'm cautious about customer service. (satisfying customer demands while maintaining the company's profitability) (Operations)
Author: John Blasier
Publication:Chief Executive (U.S.) (Magazine/Journal)
Date: June 1, 1992
Publisher: Chief Executive Publishing
Issue: n77 Page: p36(4)

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