Wal-Mart Makes List Of 5 Worst Companies For Customer Service

“Underpaid, disempowered Wal-Mart employees have a tough time staying chipper these days — and they pass along their misery to the company’s customers.”

So begins the entry for Wal-Mart in Business Management Daily’s list of the five worst companies for customer service. In compiling its list BMD interviewed several sources, including Service Quality Institute president John Tschohl and David VanAmburg, managing director of the American Customer Satisfaction Index. The worst offenders, in order:

1. Bank of America; 2. Comcast; 3. ebay; 4. Wal-Mart; 5. U.S. Airways

So where exactly does Wal-mart come up short?

“Wal-Mart built its business on customer service, but they’re in the sink now,” Tschohl contends. “The stores are ugly, and they attract the people with the least amount of money who are willing to put up with bad service.” Adds David VanAmburg, managing director of the American Customer Satisfaction Index: “They are at the top of our list when it comes to value, but near the bottom when it comes to service.”

The key, of course, is that you would think this problem would have an easy solution. Treating your employees better through better wages, better/more affordable health benefits, consistent scheduling, ending discriminatory practices and pay theft...well, you get the picture...would all lead to a more content work staff. And what happens when you have happy employees? That’s right, happy customers.

“It’s a matter of treating your employees better than anybody else does and offering world-class customer service,” explains a manager of a Les Schwab Store in Concord, Calif. “That is what keeps your business growing.”

That will be something for Wal-Mart to keep in mind as the economy slowly rebounds. As more people return to their previous shopping habits - and more importantly, their previous shopping locals - Wal-Mart could see its sales figures returning to the flat numbers from pre-recession days. Is it really THAT hard to show your employees a little love??

Failing grades: The 5 worst companies for customer service [Business Management Daily]

The 5 worst companies for customer service

They are the all-too-frequent subjects of profanity-laced customer reviews splashed across the Internet for all the world to see: “Lame service at this bank has been a tradition for over 20 years.” “They are there to waste your time!” “They just don’t get it!” Day after day, these large companies make their customers’ lives unnecessarily difficult, whether through inflexible policies, egregious fees, long wait times, surly staff, inaccessible help, or a litany of other service sins.

Today, FuelNet presents its list of the five worst companies for customer service, as determined by a survey of Web forum users and interviews with a range of experts. We call out these companies because, for owners of growing businesses who are looking for an edge in a tough economy, they provide striking lessons in what not to do.

“There’s a real opportunity for small businesses to fill a niche for delivering great service,” asserts Emily Yellin, author of the new book Your Call Is (Not That) Important to Us: Customer Service and What It Reveals About Our World and Our Lives (Free Press). “There has to be a culture of customer service that permeates — it has to be baked into the organization. A lot of companies think they can sprinkle it on at the end, but it just doesn’t work.”

In other words, excellent customer service standards come not from scripts read off a page, or elaborate automated phone systems, but from a genuine sense of caring that starts at the top and filters throughout a company, influencing every customer interaction. It’s what happens when an organization’s leaders inspire and train employees at all levels to proactively listen and quickly respond to everything their customers ask of them.

“You can dramatically grow your business if you are awesome at customer service,” says John Tschohl, president of the Service Quality Institute in Minneapolis. “A small business doesn’t always have the money for marketing or inventory, so the only way to compete is by having much higher customer service standards.”

Here, in no particular order, are the five companies that have consistently failed to deliver quality customer service — along with examples of smaller businesses that do it right.

1. Bank of America

Greatest sins: Customers at bankofamericasucks.com and other sites rail against BoA’s myriad fees and a bureaucracy that makes even the simplest transactions difficult. Representative Maxine Waters of California, a member of the House Financial Services Committee, recently got put on hold for two hours while trying to resolve an issue with BoA for one of her constituents.

Sample opinion: “If a situation has arisen that you need their help to resolve, forget it — they do not help. They are all about making money, and they seem to forget that without the customers, there will be no money to make,” wrote “Unhappy” on MeasuredUp.com, a consumer feedback and review site.

The lesson: Making it difficult for customers to do business with you — and charging them money for the “pleasure” — is the opposite of great service. “Great service companies make it easy to do business with them,” Tschohl notes.

Role models: At Umpqua Bank, in Roseburg, Ore., employees are trained to be “universal associates,” so they never have to pass the buck when attending to customer needs. Many branches have Internet cafés that serve the bank’s own brand of coffee, and tellers hand out chocolate with every receipt. Moreover, bowls of water are set outside for customers’ pets. At TD Bank, in Philadelphia, customer calls are answered by an attentive, knowledgeable staff person after one ring. “You call most banks and it’s push two, push four, push seven, go to hell,” Tschohl notes.

2. Comcast

Greatest sins: Sluggish service and lame response to customers’ needs earned Comcast a score of 54 in 2008 — one of the lowest among all companies — on the American Customer Satisfaction Index, a standard developed by the National Quality Research Center at the University of Michigan Business School. A famous online video shows a Comcast technician who fell asleep on a customer’s couch while waiting on hold — with Comcast. “They have unlimited marketing budgets to get new customers because they get rid of their old ones so fast,” Tschohl says.

Sample opinion: “I have never received such horribly incompetent, could-care-less service as I have with Comcast,” wrote “Shabo L” on Yelp.com, an online review site.

The lesson: Don’t keep your customers waiting, ever. “Every employee should be empowered to make a decision on the spot in favor of the customer — not a day later, not an hour later, but in seconds,” Tschohl says.

Role model: Northeast Delta Dental, based in Concord, N.H., reimbursed customers more than $80,000 in self-imposed penalties in 2008 for not meeting its own service guarantee. It’s no coincidence the company has a whopping 60 percent market share in New Hampshire, Maine, and Vermont — and a 98 percent retention rate. “We turn ourselves in, and we tell our customers what we’re going to do, process-wise, so that failure doesn’t happen again,” says Northeast Delta Dental CEO Tom Raffio. “It costs us in the short run, but in the long run, it builds trust — and we get customers for life.”

3. eBay

Greatest sins: What really irks customers of the online auction site are the fees it charges and the total inaccessibility of human staff. “They don’t allow you to talk to a human,” Tschohl points out. “There’s no way to communicate with them. eBay thinks they’re in the technology business, while companies like Amazon.com understand they’re in the service business.”

Sample opinion: “It took me three days to find a phone number [for eBay customer service],” wrote one customer on the company’s own forum. “Don’t expect results. It’s worse than trying to get an honest answer out of a politician.”

The lesson: Be there for your customers. Great service is about supporting your customers every step of the way.

Role model: Les Schwab, a chain of tire stores in the western U.S., has a “Sudden Service” philosophy that states, “You come in, we come running.” Employees run out to customers’ cars as they pull in to the store, then spring into action to install new tires in half the time it takes the competition.

4. Wal-Mart

Greatest sins: Underpaid, disempowered Wal-Mart employees have a tough time staying chipper these days — and they pass along their misery to the company’s customers. “Wal-Mart built its business on customer service, but they’re in the sink now,” Tschohl contends. “The stores are ugly, and they attract the people with the least amount of money who are willing to put up with bad service.” Adds David VanAmburg, managing director of the American Customer Satisfaction Index: “They are at the top of our list when it comes to value, but near the bottom when it comes to service.”

Sample opinion: “The employees are rude most of the time, and none of them help when you ask them something,” wrote “Amber” at ConsumerAffairs.com. “I spend $300 a week in that store. Now they have lost my business.”

The lesson: Creating a culture of great service starts with treating employees well. “Take care of your workers, and your workers take care of your customers,” Yellin explains.

Role models: Northeast Delta Dental and Umpqua Bank frequently appear on lists of best workplaces thanks to their outstanding employee benefits, and Les Schwab shares half its profits with its employees. “It’s a matter of treating your employees better than anybody else does and offering world-class customer service,” explains a manager of a Les Schwab Store in Concord, Calif. “That is what keeps your business growing.”
5.

US Airways

Greatest sins: Long delays, surly service, and a lack of personality have helped send this airline to the bottom of the list of companies tracked by the American Customer Satisfaction Index — though the extra fees don’t help, either. “This industry has the lowest scores on our list, and US Airways is at the bottom,” VanAmburg says.

Sample opinion: “Figure out a way to communicate with customers that doesn’t involve hold times approaching geological epochs, and make your damn computers work correctly,” opined blogger Christopher S. Penn after he was told it would take 45 to 60 days for US Airways to respond to his email request for a refund.

The lesson: The best service companies are fast, reliable, friendly, and don’t skimp on the little details.

Role model: Insight Studios, a tattoo and piercing parlor in Chicago, averages five stars from reviewers on Yelp.com, who praise the store for being pleasant and clean, and for offering customers horchata and chocolate when they walk in the door (and a lollipop for their bravery after their treatment is done). You’d never know these folks were paying to get poked. As one happy customer gushed, “I can’t wait to come back in a few months for my next piercing!”

The Road to Customer Satisfaction

Because bad reviews on the Internet can be so damaging, companies are starting to get savvy. In response to its poor reputation, for example, Comcast has installed a team dedicated to scouring the Web for complaints and reaching out to the “influencers” in its customer ranks. And Bank of America now has a team of support employees who can be reached via Twitter. “The Internet is making everybody more accountable,” author Emily Yellin points out. “Companies can’t get away with what they used to.” Growing businesses are wise to stay abreast of their reputation on sites like Yelp, and they can also get customer feedback through such sites as MeasuredUp.com and GetSatisfaction.com. Those two sites not only host online forums for customers to make suggestions or register complaints, they also allow companies to respond to commonly asked questions and create a knowledge base for future customers.

“We have discussions around more than 10,000 companies, ranging from single proprietors to companies like Microsoft, and 8,000 of those companies are using our site as a primary customer service channel,” says Thor Muller, chief executive officer at Get Satisfaction. “It helps companies to provide better products and services. And by responding publicly in a way that fosters engagement, they can increase customer retention.”

Posted by Corey Himrod on Wednesday, May 27, 2009