Skip to main content
Iconixx Insights BlogIncentive Compensation Management

Study shows importance of customer service

By September 5, 2013January 16th, 2023No Comments

In sales-based organizations, customer service is of the utmost importance. Quick and efficient communication, as well as high-quality responses to consumer complaints and comments are all the signs of a strong business. A new study has found less companies are as adept at customer service initiatives as they think they are.

According to a new report by Shankman Honig, 80 percent of businesses believe they are consistently delivering “superior” customer service, while only 8 percent of customers agreed. This large disparity poses problems for companies, as each year, U.S. companies lose a total of $83 billion due to poor customer service.

The study found negative customer experiences had lasting effects on a company, as 20 percent of consumers surveyed said they left a regular service provider due to poor customer service. During these poor service experiences, 35 percent of survey respondents said they lost their temper with an employee, and 24 percent of those respondents said they then turned to social media platforms to express their displeasure with a company.

It’s not too late for companies to turn things around, though. Executives and supervisors who feel their companies are coming up short with customer service can begin to shift operations by implementing incentive compensation plans.

Under a strong incentive compensation management program, rather than trudging through their days and dreading negative client interactions, employees will be motivated to ensure positive experiences for customers. Supervisors can link client retention to bonuses, merit increases or other rewards such as gift cards or tickets to sporting events. When presented with a financial motivations, employees are more likely to approach customer service interactions with a positive attitude and point of view.

Leave a Reply

Close Menu
Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

KBH Ventures

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.