The true cost of customer response

The true cost of customer response

Seth Godin

“Your call is very important to us.”

If you hear that, it means someone is not just lying, but also isn’t good at arithmetic.

Your company spends $6 on digital ads to get a click, and one in a hundred clicks leads to an inquiry. Which means that every inquiry sitting in the queue cost you $600. Inquiries are a bit like cronuts, in that they go stale quickly. Waiting an extra day to get back to just one person probably costs you more than the entire day’s salary of a customer service salesperson.

Your company spends $2,000 a day on rent for its showroom. And you paid that rent (along with all of those ads) for a month before John walks into the store. The uninterested, undertrained, under-compensated salesperson is finishing up a personal call, John gets bored and leaves. That (non) interaction cost you $20,000.

Jon, the reservationist, is overwhelmed by incoming calls, and he’s snippy when a regular calls for a table this Saturday night. So the patron, rebuffed and feeling disrespected, goes to a different restaurant, loves it, and never returns. Let’s see–10 business dinners a year at $200 including tip and wine–you can do the math.

“You can do the math,” while true, is rarely followed up by, “I did the math.”