Reasons for Customer Service Fluctuations

Providing quality customer service influences a company's ability to increase profits and retain customers, according to research done by the Harvard Business Review. Understanding the reasons behind fluctuations in customer service levels can help companies adjust hiring initiatives and scheduling needs to better service customers.

  1. External Reasons

    • External forces and pressures can have an impact on customer service levels and fluctuations. While some fluctuations can be attributed to easily identifiable and regular circumstances, others might be the result of economic forces, including supply, demand and competition. Businesses that provide seasonal services or products often notice a surge in customer service contacts immediately preceding and during the busy season, as customers begin to place orders and ask questions about the various offerings. Companies plan for this type of fluctuation by examining and comparing statistics from previous years. Economic factors, including a recession, can reduce the amount of disposable income available to consumers to purchase non-essential services and products. This can lead to a reduced volume of customer contacts.

    Internal Reasons

    • Internal decisions and developments often provide management an opportunity to prepare for possible fluctuations in customer service demand. New product releases might provide an initial surge in calls related to questions and concerns about the new product. A change in service standards, pricing and availability also can lead to an increase in customer service contacts. For consumer product companies, changes in packaging, such as size and shape, might warrant additional preparation to get ahead of customer questions and comments. Other reasons for customer service fluctuations influenced by internal forces include product shortages and the inability to properly forecast demand and competitive pricing.

    Employment Factors

    • Employment levels also result in fluctuations in customer service levels. Normal attrition, terminations and an overall reduction in staff can lead to a decreased ability to answer calls or questions in a productive and timely manner. It takes time to replace these workers, leading to a lag in improving customer service levels. Proper hiring and selection techniques, such as providing a detailed and accurate overview of customer service responsibilities, can reduce turnover. The training of new hires can lead to longer customer service wait times as new employees get comfortable with operational systems and product or service information.

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