Tags: Raul | Pupo | Business | Profits | Trump Customer | Service

Raul Pupo: Business Profits Always Trump Customer Service

By    |   Friday, 30 Jul 2010 12:21 PM

U.S. companies have lost their focus on customer service, and the results could be disastrous for our economy, says Raul Pupo, CEO of Technology Infrastructure Solutions.

“Corporate America has lost its bearings when it comes to serving the customer,” he told Newsmax.TV Money.

Pupo recently wrote a book titled, “America's Service Meltdown: Restoring Service Excellence in the Age of the Customer.”

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The service sector represents the foundation of our economy now, but we’re in danger of losing our advantage in services, just as we have in manufacturing, he says.

“We stand to lose service again to the Asians, who don’t confuse service with servility, as we do here in the west, who are willing to work extra hours and to go the extra mile,” Pupo said.

Editor's Note: Get "America's Service Meltdown" at a Great Price from Amazon -- Click Here Now.

“This is a national issue. If we lose service, I don’t know what we’re left with in this country.”

Pupo says the axiom that the customer is always right was never truly followed. “What is axiomatic is that profits are always right. Profits always trump service, unfortunately.”

Companies don’t understand that service is a key factor of production, Pupo says. “The classical factors are land, labor, capital,” he said.

“In the Internet age, service is the fourth factor. It actually overtakes the other three, but sadly that’s a lesson that just hasn’t been heeded by Corporate America.”

What companies need to realize is that strong customer service can make them more profitable, Pupo says.

There are four prerequisites for excellent customer service, he says:

• Customer-focused leadership;

• A business planning regimen that places the customer at center stage;

• An ethic of public service – this is probably the one that has most failed Corporate America;

• A corporate organization driven by a front line staff that’s empowered, competent and supported with tools and information.

In almost every industry, there are corporations who cut corners on customer service to boost profits, Pupo says.

“When you have an investment community saying you need to put more dollars in the bottom line, the pressure is such that unless you are an extremely courageous leader who says I’m going to balance service with profits, you’re going to kowtow to the investment community and do what it takes to have bottom line results.”

Editor's Note: Get "America's Service Meltdown" at a Great Price from Amazon -- Click Here Now.

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U.S. companies have lost their focus on customer service, and the results could be disastrous for our economy, says Raul Pupo, CEO of Technology Infrastructure Solutions. Corporate America has lost its bearings when it comes to serving the customer, he told Newsmax.TV...
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2010-21-30
Friday, 30 Jul 2010 12:21 PM
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