Margo Chevers
Northeast Leadership

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How to get UP On a down day

Stop The B.S.

What Do You Want To Be When You Grow Up?

The Chevers Report November 27 , 2006 

Volume # 1 Edition # 17

Does customer service training payoff?

The simple answer is, Yes, customer service training does pay off.

Almost everyone has heard the statistic that “It costs about 5 times more to attract a new customer as it costs to keep an old one.” When you add up all the time involved with pursuing a potential customer, the travel to and from the customer, cost of marketing and the sales effort involved in attracting a new customer, you are better off keeping your old customer by providing exceptional service.

This means that everyone in your company that the customer comes in contact with gives the same level of service, with the same attitude of service – every time.

How do you do that? You do that by providing customer service training to all employees. There should be a consistent way of providing service that all employees adhere to. Whether that person comes into direct contact with the customer or supports the people who have direct contact with the customer.

According to Joan Koob Cannie, author of Customers For Life, "Companies that have initiated a Customer-Driven Service Process have found that the return on investment is, on average, ten-to-one."  The only way to get all employees to provide the same quality of service is through providing quality customer service training.

When service training is implemented, the return on your investment can be huge. According to the Strategic Planning Institute in Cambridge, MA," Companies rated above-average in service, grow twice as fast, charge about 10% more, and make 1,100% more in return on sales." So you can see how through customer service training being properly administered, there are tremendous pay offs for the company.

One of the biggest requested areas of customer service training is how to handle complaints. The reason is that most people are uncomfortable with a customer who has a problem. The employee is afraid they won’t handle it properly, thus, causing a bigger problem than already exists. But the pay off for handling complaints are enormous. The U.S. Office of Consumer Affairs found that "Industries as diverse as banking, utilities, consumer durable goods, retail, and automotive service are actually earning up to 400% Return On Investment by seeking and handling complaints."

Therefore a big component of any customer service training must be how to seek and handle customer complaints. The implications go further than just handling the immediate situation, but also influences the customer on their decision to pay invoices. According to the Resource Evaluation, Inc. "53% of the largest U.S. Companies say the level of customer service they receive from a vendor or supplier has an effect on their decisions to pay an invoice on time."
These are just a few of the reason why when the question , “does customer service training pay off?” my answer is always, Yes.


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© 2005 Margo Chevers


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