6 Customer Service Case Studies Demonstrating Good — and Bad — Merchant Responses
It’s not uncommon for stories about customer experiences to go viral. While bad experiences are often the ones that spread like wildfire, positive stories highlighting excellent customer service experiences sometimes make the news, too.
Check out the stories spotlighted in this roundup of viral customer service moments. From calling EMTs to helping an elderly veteran change a tire, these stories prove that going above and beyond can really impact how the public views your brand.
Customer service impressions have a direct impact on your bottom line… both for good and bad. Examining customer service case studies can offer some valuable insight on this topic. It can help you drill down into daily practices and reveal hidden problems you might otherwise have missed. It can even help you prevent loss and retain revenue. Case in point: consider the risk posed by chargebacks.
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The Link Between Bad Customer Service & Chargebacks
There are literally hundreds of potential issues that could trigger a chargeback. That said, all disputes boil down to one of three basic sources: criminal fraud, friendly fraud, or merchant error.
The vast majority of chargebacks result from merchant error and friendly fraud. Excellent customer service skills play a very important part in preventing both of these.
Oftentimes, customers do not understand the damage they do to merchants when they request a chargeback. Consumers simply think that dealing with the bank is easier than requesting a refund from the business. In fact, 81% of consumers say they’ve filed a chargeback out of convenience.
If a customer has a question or complaint, you need to make it very clear that dealing with you will be the easiest and most productive solution. Otherwise, the buyer will simply go to the bank and request a chargeback.
To that end, we’ve rounded up a few examples of good — and bad — customer service to examine. Let’s take a look, keeping in mind some of the priorities your customers might have, and how you can consistently exceed them and provide an amazing experience.
6 Real-World Customer Service Case Studies (and What to Take From Them)
To put it bluntly, the purpose of a customer case study is to open a dialogue between your business and the customers it depends on to thrive. This dialogue may not cast every aspect of one’s business in a positive light. But, getting past that discomfort could greatly benefit your consumer relationships.
For each topic, we’ve pulled an example of one company succeeding at the customer service game, and one of a company falling short of that mark. The purpose of this isn’t to call anyone out; it’s simply to help merchants learn from others’ mistakes and, hopefully, avoid the same issues.
Fearing No Feedback
Feedback is one of the most crucial customer service mechanisms available to you. It’s free, it’s targeted, and it’s effective. Giving your customers the opportunity to weigh in on the products they love is invaluable information for merchants who aim to provide the best products and services possible.
United Airlines
In 2017, United Airlines forcibly removed paying customer David Dao from flight 3411 to make room for four employees on an overbooked flight. The airline offered passengers $800 each to give up their seats on the flight, but no one seemed interested.
The United employees (following established protocol, keep in mind) started selecting passengers at random to be bumped from the flight. Dao was selected but refused to leave. The employees then had security come and collect Dao, who was injured and bleeding as they dragged him from the plane.
Protocol or not, this was a terribly poor decision from a customer service standpoint, and the entire situation was recorded by fellow passengers who took issue with Dao’s mistreatment over social media. In the following days, the hashtag #boycottunited was shared 3.5 million times on Twitter. Then, in the weeks after the incident, thousands of the airline’s customers cut up their United credit cards, ultimately causing the company’s market value to drop by $1 billion.
Could this situation have been avoided? Absolutely. No doubt you can see why disregarding customer impressions was a poor move on United’s part.
PuppyPy
Innovative pet protection company PuppyPy (formerly Huan) creates digital smart tags for pet owners. These smart tags make it super easy for pet owners to locate their missing pets if they run off or go missing. It’s an extremely useful bit of tech for people with aging or overactive pets.
Once upon a time, the company mainly promoted its tech features on its homepage and in its marketing copy. They wanted everyone to know that the tags don’t emit harmful radiation or stress-inducing sounds. They also promoted the tags’ water-resistance and replaceable batteries. These were the key talking points.
Over time, though, the company noted in customer feedback surveys that most buyers purchased the product because of what it did, rather than what it didn’t do. Customers loved their product because it kept their pets safe at home. It offered peace of mind that their pets could be found if they got lost.
This feedback led the company to refocus their branding to promote their core purpose (keeping pets safe) on their homepage and in advertisements. The messaging on the homepage changed to “Keep your pet safe and prevent heartbreak. Huan Smart Tags help you find your missing pet automatically.”
Because they listened to their customers and viewed feedback as an instructive tool, PuppyPy was able to rebrand and reach their target market more effectively. The result: a 53% increase in revenue following the change, according to founder Gilad Rom.
Ultimately, considering customer impressions and perspectives can help you root out issues hidden within your business practices. As uncomfortable as it may feel to accept and process criticism of something you value, it’s very important to give customers the opportunity to tell you how they feel. Doing so will allow you to separate unpopular products and services from unpopular ones, and productive policies from potentially disastrous ones. You can then hone your customer service skills to match.
Prioritizing Personalization
We live in an increasingly personalized world. Nowadays, if a company fails to provide targeted buyer interactions, it will likely find itself struggling to connect with its customer base. Think about it like this: would you identify more with a hyper-stylized ad for something you wouldn’t normally buy? Or, are you more likely to respond to an ad for products that are similar to those you already like?
The answer is that most consumers prefer personalized marketing. This lets you pitch products to likely buyers based on their preferences. It cuts out the clutter in your customers’ feed, shows them what they want to see, and enables them to tailor the shopping experiences as they see fit.
Let’s take a look at some examples of this principle in action.
Jack in the Box
A very common mistake in marketing is the old {NAME} placeholder game. In January 2018, fast-food giant Jack in the Box flubbed fairly hard with a personalized email that soon became a viral tweet by a disgruntled recipient. Turns out, even though you’re offering your loyal customers free tacos for their birthdays, it isn’t a great idea to misspell their names or forget to add them at all in your email.
Lol thanks for the sweet personalized email jack in the box #Fname pic.twitter.com/H2bgmWBJnN
— Jen (@Jenleahhhh) January 25, 2018
This is just one of several marketing flubs that Jack in the Box has weathered. We wanted to spotlight this one, though, as it highlights the idea that personalized marketing does indeed work… work against you, that is, if executed poorly.
It’s hard to quantify the exact impact of mistakes like this. However, your name is central to your identity, and there’s solid research to suggest that messing up your customer’s name is one of clearest turnoffs for potential buyers.
Amazon
Innovative pet protection company PuppyPy (formerly Huan) creates digital smart tags for pet owners. These smart tags make it super easy for pet owners to locate their missing pets if they run off or go missing. It’s an extremely useful bit of tech for people with aging or overactive pets.
They’re so good at it, in fact, that the company has dedicated an entire division of their operations to personalized marketing.
Amazon Personalization is a machine learning platform created by the company. It makes it easy for developers to include personalized recommendations to customers who use their applications. This service reflects Amazon’s extensive experience in building personalized systems.
Of course, Amazon also leverages this technology for their own retail operations. This gives them the ability to connect with consumers on a personal level. They are also able to predict what consumers like and dislike, what they might be interested in, and even what they need, rather than just what they want.
Personalization between all channels is absolutely critical to your brand. Learning about your customer's habits, needs, likes, and dislikes can not only help increase brand loyalty but also help you save revenue you might otherwise have spent on ineffective ads and marketing campaigns.
That said, always test your marketing emails thoroughly before each campaign and send periodic customer feedback surveys to pinpoint what your customers like and dislike about your efforts.
Crafting Effective Customer Service Tools
According to a recent report, businesses that focus on delivering round the clock, real-time support can increase customer satisfaction, drive revenue, and build loyalty.
Of course, no one really needed a study to tell them that. It’s pretty self-evident that better customer service leads to more satisfied customers. Regardless, many merchants still fall short of this mark.
Frankly, in our increasingly digitized world, consumers have come to expect instant gratification at all times… especially when they need help. Not having the necessary tools in place can cost a business big time.
Live chat can mean the difference between a happy customer and a chargeback. Not realistic for your business on a 24-hour basis? Not to worry: chatbots could provide the solution to delivering real-time support.
Your approach to customer service will mean the difference between general customer satisfaction on one hand, and revenue loss and reputational damage on the other.
Frontier Airlines
It might seem like we’re picking on airlines in this article. Unfortunately, the fact of the matter is that airlines are somewhat notorious for lacking customer support and service. Take Frontier Airlines, for instance.
In fact, in October 2022, Frontier was ordered to pay $222 million in refunds to passengers whose flights were canceled during the Covid-19 pandemic. The Denver-based carrier was also hit with a $2.2 million fine. The decision was part of a broader governmental crackdown on airlines and ticketing after the US Department of Transportation said it received substantial complaints from air travelers who felt cheated by carriers.
What happened? Well, the airline reportedly canceled thousands of domestic and international flights. Understandable enough, in the context of a global pandemic. The problem is that they failed to refund those tickets after pandemic-related restrictions passed. Then, calls and emails requesting customer support or services frequently went unreturned. Even those that did manage to get through were put on hold for hours at a time or ignored altogether.
This is perhaps an extreme case, but it’s instructive in a sense. All of these complaints should have been intercepted and resolved before the DoT got involved; it’s never acceptable for customer inquiries to go unanswered. In that sense, several seemingly-minor customer service failures built into Frontier’s practices ultimately led to millions of dollars in fines and extreme damage to the company’s reputation.
Frontier, like hundreds of companies during Covid-19, was swiftly overwhelmed by support tickets, and they simply lacked the resources or adaptability to answer them. In the end, it cost them dearly… and should serve as a reminder to other merchants that support services are only effective if the company prioritizes them.
Santa Cruz Bicycles
Outdoor sporting company Santa Cruz Bicycles manufactures and sells high-quality off-road bicycles. Their products are known for high quality and performance, and the brand targets customers that have a profound passion for the sport.
Prestige and performance aren’t the sole features that make SCB popular, though. The company’s outstanding customer service and support teams echo the caliber of its products. Any problem that a customer has with a bike is sure to be solved swiftly and with exemplary service.
When the company started experiencing significant quarterly growth, its CEO swiftly realized that it could no longer keep up with a one-on-one customer service approach. After several customer case studies and a lot of management homework, the company switched to a CRM service. The new tool enabled 24/7 support bots that could be uploaded directly to their site.
The importance of 24/7 support cannot be overstated. Sometimes the difference between a lifelong, loyal customer and a bevy of terrible online reviews can be boiled down to the speed with which you respond when there’s a problem.
Having 24/7 support might feel cost-prohibitive or difficult to manage. However, there are many widely available, cost-effective options out there to help you get started.
Need Help?
Ensuring an exemplary customer experience isn’t an easy task. You have to work to make sure you’re providing the highest quality experience at every point of brand interaction.
Learn more about improving customer serviceNot sure where to start? No worries: we’ve got you covered.
Our merchant compliance review process was specially designed to uncover all internal errors, mistakes, and oversights that could potentially cause chargebacks. We examine and optimize more than 100 business elements that often add friction to the customer experience and lead to chargeback.
It’s hard to objectively critique your own business. Our expertise and first-hand experience enable us to identify issues most merchants wouldn’t even think to look for.
As these customer service case studies show, individual perception is reality. Chargebacks are an indicator of faulty customer service principles. Chargebacks911 can help your business manage these transaction disputes to improve customer relationships and recover more revenue. Contact Chargebacks911 today to learn more.
FAQs
Can customer service case studies help my business?
Yes.
Let’s face it: great customer service can make or break any business. While conducting customer service case studies with your customers, you might learn some less-than-favorable things about your business that can sting. However, this allows you to pinpoint those problems and develop workable solutions.
Effective communication with your customers is intended to highlight customer service practices that work for or against your business. This empowers you to prioritize methods that are working and mitigate the methods that could be losing you revenue.
Why is customer feedback so important?
Feedback is one of the most crucial customer service mechanisms available to you. It’s free, it’s targeted, and it’s effective. Giving your customers the opportunity to weigh in on the products they love or don’t is invaluable information for merchants who aim to provide the best products and services possible.
Is personalization really that popular?
Personalization between all channels is absolutely critical to your brand. Learning about your customer's habits, needs, likes, and dislikes can help increase brand loyalty. It also helps you save revenue you might otherwise have spent on ineffective ads and marketing campaigns.
Always test your marketing emails thoroughly before each campaign. Send periodic customer feedback surveys to pinpoint what your customers like and dislike about your efforts.
How can customer service tools improve customer relations?
The importance of 24/7 support cannot be overstated. Sometimes the difference between a lifelong, loyal customer and a bevy of terrible online reviews can be boiled down to the speed with which you respond when there’s a problem.