Each year MSN Money produces two lists:  the Customer Service Hall of Fame and the Customer Service Hall of Shame.  These lists are widely read, and are accompanied by explanations of what each company did over the past year to earn their spot on each list according to the opinions of their customers.  The information is always instructive, full of practical suggestions that small business can do – or NOT do – to help keep customer buzz positive. 

But reading between the lines of the report can be even more enlightening.  What I find most interesting about the Hall of Shame stories is that some of these customer gripes go back 10 years or more.  Often the companies in question have spent large amounts of time and money to address the problems.  But customer confidence is very slow to turn around.  People do not quickly forget how angry they felt about bad customer service.  Even when these companies do see improvement in their standings, it is better position on the Shame list.  Not, as would be hoped, off of the Shame list altogether.

The lesson here is obvious:  it is far easier to provide good customer service from the outset than it is to recover from negative impressions.  That does not mean you have to give away the store – customers are NOT always right.  But it does mean that how you handle that inevitable “no” is even more important than how you handle the “yes.”

Tags: great customer service, Marketing, positive buzz, small business