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Effects of Poor Customer Service

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If a company provides poor customer service, it will have many disgruntled customers. Many companies have gone out of business because of poor customer service. More than ever, customers want to be treated with respect.

Lost Market Share

When you provide poor customer service, you will lose market share. Your competitors will begin to take over your customers. A disgruntled customer will quickly spread the word about the poor service he received from your company.

Decreased Profits

Bad customer service can lead to a decrease in company profits. When profits tumble, stock value can decrease as well. This will adversely affect the shareholders.

Low Morale

Your customer service department will become inefficient and ineffective. They will spend the majority of their time on the phone arguing with customers. This can lead to low morale and high turnover. No one wants to work for a company that is not top-notch.

Change in Management

Poor customer service can lead to a change in management. Sometimes a new leader can exercise a certain amount of discipline, which will turn things around.

Increased Training Expenses

If a company provides poor customer service, it will incur expenses to train employees on new techniques and procedures for customer service. The company will also have to train new employees as a result of the turnover. Expenses will increase, and sales will decrease.


Melvin J. Richardson has been a freelance writer for two years with Associated Content, and writes about topics such as banking, credit and collections, goal setting, financial services, management, health and fitness. Richardson has worked for several banks and financial institutions and gained invaluable experience and knowledge. Richardson holds a Master of Business Administration in Executive Management from Ashland University in Ashland Ohio.

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