White Glove Customer Service is the Great Equalizer, Part 1

Millennials and Zellennials are all in search of the next billion-dollar idea.  Entrepreneurs want to build the next ‘better mousetrap.’  With the rise of AI, the search is on for the next “Big Idea.”  The next Unicorn. The next App.  There is a race to make a product or deliver a service faster, easier, smarter, cheaper, etc. But what if the next “Big Thing” is just the same old thing but with much better service?  Here is the truth that no one wants to talk about… there is a customer service leak and it has spread to all industries.  Hospitality.  Aviation.  Insurance.  Healthcare.  Property Management.  Banking.  Law.  Accounting.  No industry is exempt.

American consumers are frustrated.  Hold times are longer.  Conversations are robotic.  Resolutions are elusive. One way to describe it is that there is a “customer service leak” – a nationwide dip in the quality of interactions with businesses, leaving consumers, customers, and clients alike feeling unheard and undervalued. Why is that?  Is it a post-pandemic hangover, or was the leak already dripping before 2020?

The Erosion of Service

While the pandemic undoubtedly exacerbated the issue, the seeds of discontent were sown before long before the lockdowns.  For decades, automation, cost-cutting measures, and a focus on metrics over human connection had been chipping away at the quality of service. Customers felt like cogs in a machine, their individual needs sacrificed at the altar of efficiency.

Then, the pandemic exacerbated the situation exponentially.  Labor shortages.  Remote work challenges. Increased customer demand.  Consumer Advocacy Forums.  Complaint Boards.  This created a perfect storm, impacting not just the quality of service but also quantity of service.  Overwhelmed employees, often juggling personal anxieties alongside professional demands, struggled to deliver the personalized service customers craved.  It resulted in an erosion of trust and a sharp rise in frustration.  But don’t just believe that customer service is declining.  Anecdotal evidence and personal experiences are important, but data and studies drive home the point. 

Customer Studies before Covid

• The American Customer Satisfaction Index (ACSI) index, published by the University of Michigan, has been tracking customer satisfaction across various industries in the US since 1994. While ACSI scores fluctuate, there has been a downward trend since 2017, particularly in industries like retail and services.
• Forrester Customer Experience Index (CX Index), which is similar to ACSI, measures customer sentiment across different touchpoints. Forrester’s CX Index research showed that customer loyalty in the US fell to 66% in 2019, down from 68% in 2018.
• The 2019 PwC Consumer Insights Survey found that 60% of American consumers felt that companies were more focused on cost-cutting than providing good customer service.
• And the Harvard Business Review study in 2018 found that 80% of customers believed that companies were putting less effort into customer service than in the past.

So what did Customer Service Studies show after Covid?

Customer Service Studies after Covid

• The Microsoft Customer Experience Survey in 2022 found that 80% of customers believed the pandemic had made it harder to get good customer service. Additionally, 60% of customers reported having a negative customer service experience in the past year.  The same study in 2023 found that 71% of American consumers had had a negative customer service experience during the pandemic. Additionally, 82% said that a bad experience made them less likely to do business with that company again.
• The 2023 Zendesk Benchmark Report revealed that average wait times for customer service increased by 37% after the pandemic. There was also a 20% decrease in customer satisfaction scores compared to pre-pandemic levels.
• The 2020 Aspect Consumer Survey found that 64% of American consumers believed customer service quality had declined since the start of the pandemic. Automation and impersonal interactions were cited as major concerns.
• In 2023, the American Express Customer Service Barometer found that 73% of Americans believed customer service had gotten worse in the past year.

Customer Service: The Great Equalizer in a Crowded Market

These studies provide strong evidence for a decline in customer service in the US, both before and after the pandemic.  While bad news for the average customer, this service leak might actually be a hidden treasure for savvy businesses.  For companies that pay attention, lousy service by some businesses allows others to benefit from the power of delivering exceptional customer experience. In a world dominated by faceless corporations and indistinguishable products, personalized service becomes the ultimate differentiator. It’s the secret weapon that allows even the smallest companies to compete with giants.  After all, customer service is certainly the most over-discussed yet under-delivered part of the interaction between a client and a business.

Indeed, if there’s one thing most people are willing to overpay for it’s customer service.  Studies have found that most people would rather go to a restaurant where the food is rated a “7” but the customer service is a “10” than go to one where food is a “10” yet the customer service is a “7”.  It is, in fact, one of the fastest ways a business owner can quickly increase revenue/income for their business.  If they take the existing top 20% of their customers and find ways to treat them royally – truly above and beyond White-Glove service, the likes of which they’ve never experienced before – they will tell the world about that company… whether the business asks for referrals or not. 

That is, for example, how a new Realtor – who enters a market that is saturated with Realtors – is still able to quickly dominate the competition.  White-Glove service.  Real estate is not a new industry, but someone who brings a new level of customer service to the market that customers haven’t experienced will quickly gain a following.  Customer service, then, is the great equalizer.  It is evergreen and industry blind.  

White Glove Service: Beyond the Buzzword

White glove service, the epitome of exceptional customer care, goes beyond mere politeness and smiles. It’s about anticipating needs, exceeding expectations, and building genuine relationships. It really is about personalizing the customer’s journey, ensuring every touchpoint is seamless and delightful. It’s about making the customer feel like the most important person in the room, not just another number in the system.  So does that kind of service even exist for those that are not part of the 2% richest people?  What does White-Glove service look like in the real world?  Let’s consider industries that are NOT known for their White-Glove service.

Case in point.  Whataburger:  From Fast Food to Five-Star

Since its first roadside burger stand opened about 90 miles from Victoria, in Corpus Christi, Texas in 1950, Whataburger had grown to over 900 locations across 14 states and more than $3 billion in annual sales.  They had always focused on providing fresh, made-to-order burgers and exceptional customer service.  In 2020, Whataburger was even voted number three in customer service in a nationwide survey by Newsweek, behind In-N-Out and Chick -Fil- A.  Their Chief Restaurant Officer credited their “family members” – which is what they call their employees – for the recognition and said they were what made the difference.  Employees were treated like family and, in turn, they made Whataburger customers feel at home and feel like family.   Then, in 2021, they ranked number two in the same survey by Newsweek.  While they were already doing customer service right, they empowered employees to go the extra mile, fostering a culture of genuine care that resonated with customers. The result? A 30% increase in sales during the pandemic and a surge in brand loyalty.

Making White Glove Service THE Focus

By prioritizing personalized interactions, empowering employees, and embracing a culture of care, smart businesses can capitalize on the customer service drought.  For every business, White-Glove service looks different and it is up to corporate leaders to figure out what that means.  But it is worth figuring out.  After all, a satisfied customer is not just a customer; they’re an advocate, a walking billboard, and a loyal source of recurring revenue for shrewd companies.  Those companies understand that any business that doesn’t take care of their customers will lose them to ones that do.  The future of business belongs to those who understand the power of exceptional customer service.

According to Tony Hsieh, the late CEO of Zappos, “excellent customer service shouldn’t be siloed, but ingrained in every aspect of a company’s culture and operations. This ensures a consistent and positive experience for customers at every touchpoint.”  White-Glove service is not a cost, it’s an investment. It’s not a luxury, it’s a necessity. It’s not a department, it’s a philosophy. In a world where everything is seemingly commoditized, exceptional service is the ultimate competitive advantage.  And, best of all, it gives business owners 100% confidence knowing that their business will grow because they treat their customers royally, and that is something that is fully in their control. 

Next week, we’ll look at how consumer advocacy groups and complaint forums impact customer satisfaction and how they view customer service.  Stay tuned.

Quote of the Week

“If you make a sale, you can make a living. If you make an investment of time and good service in a customer, you can make a fortune.” Jim Rohn

© 2024, Keren Peters-Atkinson. All rights reserved.

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