I was talking with a friend who runs a small online boutique business. She works with personalized textile products, and provides free shipping. The free shipping is built into each product with an expectation that delivery will be made via UPS (United Parcel Service).
She had an order and was completing the packaging. Checking the address, she saw that the destination was to a PO box, and UPS doesn't deliver to a US Postal Service box. Naturally enough.
One option would have been to mail the package USPS First Class with delivery confirmation and insurance. Cost would be around $4USD, rather than the budgeted $12.50 for UPS. She chose not to do so.
Instead, she telephoned the customer, leaving a message regarding the problem and asking if perhaps they had a street address they could provide. She then emailed the customer with the same request. The jist of the message was that if she didn't hear back in two days, she'd ship to the original PO Box. But that US mail isn't nearly as reliable as is UPS.
How easy it would've been to pocket a fast profit in the mailing costs, with the customer never knowing the difference. Why spend the time, aggravation, and so forth to get ahold of the customer for something like this? Was it just a wonderful, fuzzy-feeling wish for a better world?
No, of course not! This is a business, after all. There were clear profit motives at work, none of which had to do with customer satisfaction, all of which were entirely business oriented. Oh, well...fine, the customer DID benefit, and the perception of exceptional customer service was a byproduct, but that wasn't the underlying foundation.
These products are difficult to make. Aside from the personalization and the specifics of the items, they require high-precision hand sewing. It takes time, and strong focus of concentration. It also happened that this particular customer's order turned out particularly well done.
What if the item had been shipped via USPS and lost in the mail? It's true that with it being insured, my friend would recoup the cost...in at least a month. In the meantime, actual customer service would propose re-making the product, shipping it again, and going through all the work twice.
UPS, on the other hand, offers point-by-point tracking, delivery guarantees, notification all along the way, and an email that the item has been delivered to a particular location and person. The incidents of lost items are far less than the United States mail, despite the USPS only losing a single-digit percentage of packages.
Rather than having the worry and wonder, mystery and grand adventure of sending off a package into the Great Beyond, my friend wanted the assurances the item would arrive. She had no intention of or desire to make the item again. Nor did she want to waste the particularly high quality work in the completed item.
For totally selfish reasons, she wanted to send the package via UPS. To do that, it was worth her while to track down the customer and see if they had that street address.
So now consider your own customer service policies and procedures. Are they in place because you want to look good, feel good, and market a publicity image? Is that all you want? What about the costs of complaints-management, problem-solving, and tracking down missing items? How about the time involved, back and forth between your business and a disgruntled customer?
Which is cheaper, and which is better? Taking the time to get it right the first time, or rushing through an order fulfillment process, only to have to do it again when it doesn't work?
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