The Hidden Costs of Bad Service

Posted on Jun 26th 2015 under Customer Loyalty

Of course, you hate bad service. Everyone does, including individuals who are willing to get a better deal with a company even if customer service is not up to par. In the ground transportation services industry, the hidden costs of bad service could wind up driving you out of business. 

One of the problems with complaints is that you can expect that they are just the tip of the iceberg. Studies show that for each customer that registers a complaint with an organization, approximately 25 others will not bother speaking up, noted a recent post at Help Scout that cited statistics from the White House Office of Consumer Affairs.

That ratio of vocal to silent complainers is understandable. If you were displeased with a company to the point that you no longer felt good about doing business with it, why would you waste your time to tell them about it and help improve their processes? 

Bear in mind that some complaints may be occurring without your awareness. A corporate transportation manager who is fed up with poor service from your limo firm may express her true feelings to her colleagues at other companies, which is like getting the opposite of a referral. 

High school students who selected you to give them a night to remember at prom may not be the most discerning of customers of luxurious vehicles, but if you gave them bad service, it's possible they will tell their friends to stay away from you.

If someone complains online and you don't notice it (you should, though, by having someone always monitoring websites and social media for mentions of your limo company's name), it's possible that a potential affiliate will see it first. This could lead to you losing out on a potentially lucrative partnership.

Bad service is not confined to the behavior of your employees. If your company's website fails to deliver (it has broken links, awkward navigation or is set up so it's hard to find the sales page or what vehicles you have in the fleet), that's a form of bad service too. It pays to keep an eye on all aspects of your business where customers interact with your team, from customer service to dispatch to the demeanor of your friendly chauffeurs.

When you consider the fact that loyal customers typically will be worth as much as 10 times what they spent on you during the first encounter (according to the White House Office of Consumer Affairs), you can see that it would be folly to allow bad service to get in the way of delivering them the experience they expect.



Each of the senior marketing professionals at DriveProfit has more than 20 years in the industry helping limousine firm owners and operators with all aspects of limo marketing. If you've been having problems with complaints from bad service, you know that it's time to turn things around by firing up your staff to do their level best. They should know that their jobs are on the line if they don't make a better effort to cater to each of your customers as VIPs. For more information on tackling the issues of branding and marketing in the face of bad service, please contact the experts at DriveProfit today.

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