Skip to main content

Taking Care Of Customers - By Sanjay Anandaram

The CEO of a leading online bus reservations company arrived late for our early morning meeting. I was upset for having been made to wait for what was our weekly meeting. He apologized profusely upon arrival and I could see that he was upset. He looked tired as well. I asked him if all was well. His story took my breath away.

Apparently, a customer had booked tickets through the company’s web-site for the last bus that departed late at night for Mumbai from Bangalore. Upon reaching the departure point, the customer was shocked to learn that the bus had been cancelled (the bus industry is not unknown for springing such surprises periodically) and that there was no other bus available.

The desperate customer, who had to urgently reach Mumbai the following morning, called the CEO’s company. The call-centre was just about to close after the last buses for the day had departed and were not at their responsive best. He was naturally livid. The CEO and his head of bus operations were hurriedly informed about the plight of the hapless customer by the call-centre. The two of them rushed to the bus-stand on their bikes where the customer was waiting – anxious and furious. They then arranged for a taxi to take the customer to the airport, booked the customer on company expense on a 2 am international flight that touched Mumbai and finally saw him off. The customer reached Mumbai in time for his meeting the next day.

The CEO returned home and sent an mail to the customer apologizing for the experience, promising to put in place systems to prevent such incidents from occurring in future, and hoping that the customer would give the company a second chance. Needless to say, the customer he was delighted with the high-touch customer care that he had experienced and wrote a long mail full of praise to the company soon thereafter. What could have become an extremely unhappy customer was converted into a customer for life!

The company incurred a big loss on the transaction but earned the lifelong trust of a customer that would hopefully translate into more satisfied customers. The CEO then set about putting in place systems and processes as promised to the customer. These ranged from enhanced call-centre operations and training to better communication with bus operators, including sensitizing them to the importance of customer satisfaction as a win-win situation for all, to putting in place economic incentives for employees and operators. These were then communicated to employees so that every employee understood the importance of customer care. Customers were also informed about the kind of service they could experience. That every customer would be happy with their experience became the implicit operating mantra inside the company. This fanatical adherence to customer care has seen the company acquire a loyal following not just with direct customers but also with bus operators and partners who too are treated with the same kind of attention and care.

All too often, the focus is on sales and more sales. And all too often, there’s not enough focus on meeting let alone exceeding customer expectations. This is all the more true in countries such as ours where customer service is more often experienced by its absence. There’s a belief that the customer really has nowhere to go once sales are achieved. The knowledge that one unhappy customer usually spreads the bad experience more diligently than a happy one is little understood. That catering to a returning customer is more profitable than trying to acquire a new customer. That in the long run, the life-time value of a customer through repeat purchases is what matters rather than a narrow focus on short-term profits. That apologizing for mistakes and working to rectify these mistakes is a sign of strength and honesty.

Treating people with respect and acknowledging one’s shortcomings are what this kind of behaviour therefore naturally abstracts into.

And who wouldn’t like to deal with another if this is the basis of a contract? What do you think?

Sanjay Anandaram is a passionate advocate of entrepreneurship in India; He brings close to two decades of experience as an entrepreneur, corporate executive, venture investor, faculty member, advisor and mentor. He’s involved with Nasscom, TiE, IIM-Bangalore, and INSEAD business school in driving entrepreneurship. He can be reached at sanjay@jumpstartup.net. The views expressed here are his own.

Popular posts from this blog

Startup Funding: The Luck Factor – By Sanjay Anandaram

We hear all the time about the amount of money that's available to fund startups. For example, that private equity funds invested over $ 3.3 billion in just the first 3 calendar months of the current year. That VCs are always looking out for good deals as most of the plans they see merit little or no attention. That they invest in about 5-10 a year out of the 500-1000 business plans they get. And so on…But the truth is that a majority of deals that get funded are those that come through a referral or because the VC knows (of) the entrepreneurs; its natural because VCs don’t have the time to look at all the plans that they get to pick out the Rediff, Naukri, or Tejas Networks. Deals that come through some trusted source or through a trusted filtering process are therefore valued higher and rise to the top of the pile of business plans. It is therefore easy to see how many plans don’t get funded. And also how competitive the race to secure funding really is. Given this situation, wh

How I Raised Funding - Priyanka Agarwal, Wishberry

You have to be confident and shameless while crowdfunding. Priyanka Agarwal, Wishberry shares on how to succeed in crowd funding with Venture Intelligence in this  interview. Priyanka also candidly shares how the team built Wishberry, raised funding from top angel investors like Rajan Anandan, on pivoting, and difficulties in raising capital for entrepreneurs operating in niche spaces not chased by VCs. Q: What does Wishberry do? Priyanka Agarwal : In its latest avatar, Wishberry has pivoted into crowd financing of low budget films (INR 1-5 Cr). We are essentially trying to create an internet platform for investment opportunities for HNIs in films including Marathi, Tamil, Kannada, or films targeting the global diaspora. L-R: Co-founders Anshulika Dubey & Priyanka Agarwal, Wishberry Given that you are building a marketplace, how did Wishberry solve the Chicken and Egg problem? Beyond the “all or nothing” model what did Wishberry do to pull in more artistes and inves

Profile of Career Forum founder

The Starship Enterprise column in The Economic Times (not available online), featured Sujata Khanna of entrance exam training institute, Career Forum. The company, which started with just seven students in Pune, now covers over 39 cities reaching over 15,000 students. ...The most important milestone I think was in 1995 when we decided to incorporate Career Forum into a Company. This brought in a lot of professionalism and we also went for expansion. ...Strong technical network is our unique selling proposition. We have a strong ERP system running across all centres in all areas of business from distribution to logistics... Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the Private Equity and Venture Capital ecosystem in India. View sample issues of Venture Intelligence India newsletters and reports.