Poor customer service offsets marketing costs

Posts: 63

I'm taking a marketing class and we just got over a whole section talking about how important it is to have customer service and back office ops running smoothly for customer service, otherwise, all the money spent on front-end marketing is completely wasted when the customer has a bad customer experience.

This is Vonage's problem to a "T". They are such a great case of an overhyped, overmarketed company that grew way too quickly and was more concerned with growing as quickly as possible rather than growing as quickly as their capabilities allowed.

CEO is sketchy and I think this company folds within two years.

PS: I do love the service I get from Vonage. Obviously, I have not had to call customer service.

Posts: 1424 · Posted: Tue Aug 01, 2006 5:11 pm Post subject:

Marketing costs are not 'completely wasted' by poor customer service. Many customers live with poor customer service, others never experience it. Only a small percentage leave, or discourage friends/family from signing up.

I don't think overhyped is correct. Vonage has not made, as far as I can tell, exaggerated claims.

Have you read my previous post on Metcalfe's Law? It attempts to address some of the issues behind aggressively marketing to attract customers. For the record, Vonage's customer acquisition costs are on par with wireless carriers.

Posts: 66 · Full Forum Member Joined: May 25, 2006 Posts: 66

Quote:

Have you read my previous post on Metcalfe's Law?

I'd like to read that - can you link to it? I can't seem to find it.

Thanks.

Posts: 1424 · Posted: Wed Aug 02, 2006 9:11 am Post subject:

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