The Customer Service Survey
VocaLabs' weblog providing news and commentary on the challenges of providing good customer service.
Screwing up The Fix
Thursday - July 13, 2006 04:19 PM in
As I've mentioned in the past, consumers can end up being more loyal to a company if when making an error, the company apologizes and promptly fixes whatever it was wrong. But the company that tries to weasel out of responsibility, or worse, promises a fix, but doesn't follow through has done a worse job of customer satisfaction/retention than if they'd never admitted a problem to begin with.
So it is with the air carrier AirTran. I reported several weeks ago they were offering a $100 ticket voucher for those inconvenienced by the failure of their new reservation system. I was one of those folks. Want to take any bets on whether or not I received my promised voucher? Want to know how I feel about choosing AirTran for my next flight?
I'm having the same issue this week with my homeowner's insurance company. A name brand company, I have been a customer for nearly 40 years and am in the process of filing my first claim. Its for water damage due to a pipe break a few days ago. Co-incidentally, a similar fate befell my daughter in her Chicago condo on the same day. Her insurance company sent the water damage repair company right away with machines etc. That insurance company allows the damage repair company to handle all the issues, from new plumbing through carpeting, drywall and such. It makes a lousy day seem better because the fix is being handled by experts. My insurance company? The same water damage company is NOT allowed to do anything but clean up. I have to call the plumber who has to knock holes in walls and floor to affect the repair before the insurance company will decide whether they will pay for the fix. The plumber is not allowed to then replace the drywall and flooring. I have to call another contractor. The water damage company has to remove the carpeting and padding, but is not authorized to replace it; only put the old stuff back and my insurance adjuster will decide if replacement is warranted. If so, they hire still another company to put the new stuff in…which of course can't be done until the plumber finishes, the carpenters and dry wall guys finish and the insurance co. approves their work. (Some of which I apparently have to pay for and then hope the Insurance co. will pay back.) Allowing for a much more severe water problem, my daughter will have new flooring, new carpets, paint and problem fixed in about 5 days. I will have to take more time off work to coordinate repair visits, and it looks as though my "fix" will take weeks. This annoyance will lower my satisfaction with my insurance carrier considerably. And if as I suspect will happen, I get a rate increase, any loyalty I have to continuing with this insurance company will have evaporated. What I ask, is the advantage of perhaps a slight repair cost savings by my carrier if it means losing a loyal (and profitable) customer? Beats me.
Posted by Rick Rappe
I'm having the same issue this week with my homeowner's insurance company. A name brand company, I have been a customer for nearly 40 years and am in the process of filing my first claim. Its for water damage due to a pipe break a few days ago. Co-incidentally, a similar fate befell my daughter in her Chicago condo on the same day. Her insurance company sent the water damage repair company right away with machines etc. That insurance company allows the damage repair company to handle all the issues, from new plumbing through carpeting, drywall and such. It makes a lousy day seem better because the fix is being handled by experts. My insurance company? The same water damage company is NOT allowed to do anything but clean up. I have to call the plumber who has to knock holes in walls and floor to affect the repair before the insurance company will decide whether they will pay for the fix. The plumber is not allowed to then replace the drywall and flooring. I have to call another contractor. The water damage company has to remove the carpeting and padding, but is not authorized to replace it; only put the old stuff back and my insurance adjuster will decide if replacement is warranted. If so, they hire still another company to put the new stuff in…which of course can't be done until the plumber finishes, the carpenters and dry wall guys finish and the insurance co. approves their work. (Some of which I apparently have to pay for and then hope the Insurance co. will pay back.) Allowing for a much more severe water problem, my daughter will have new flooring, new carpets, paint and problem fixed in about 5 days. I will have to take more time off work to coordinate repair visits, and it looks as though my "fix" will take weeks. This annoyance will lower my satisfaction with my insurance carrier considerably. And if as I suspect will happen, I get a rate increase, any loyalty I have to continuing with this insurance company will have evaporated. What I ask, is the advantage of perhaps a slight repair cost savings by my carrier if it means losing a loyal (and profitable) customer? Beats me.
Posted by Rick Rappe
Posted at 04:19 PM by | | | |