Sunday Letter

The Enemy of My Customer is My Friend

Dear reader, While many companies today pay lip service to the idea of “customer service”, their actions speak louder than words. We have all had the pleasure of enjoying the various hold musics employed today by different companies. Apple, I will say, has exceptional hold music (and actually good customer service). I personally recommend Kygo.

Too often companies these days view their customers as “the enemy”. Someone to be defeated, or “conquered”. Customers have a litany of problems, and many companies act as if they would prefer not to have to deal with their customers at all.

Uber has recently been plagued by customer service scandals: from sexual harassment allegations, to obtaining the medical records of a woman who was raped by an Uber driver in India, to tracking users’ locations for five minutes after they leave the car.

From the beginning of 2014, Uber has gone from a 91% share of the US ride-sharing market, down to 74.3% today. It’s primary rival, Lyft, has been the main benefactor.

Banks, once seen as unimpeachable paragons of trustworthiness, have undergone a similar destruction of reputation. I don’t even need to name the countless scandals that seem to hit banks weekly.

Customers’ affinity and reported “liking” towards Bank brands and other financial institutions has hit rock bottom, and their brand value has likewise plummeted: tumbling down the list of the world’s most valuable brands.

At the end of the day, if you make an enemy of your customer, your business model is broken. Serving customers, adding value to their lives, and solving their problems in unique and efficient ways is the fundamental reason for a business’ existence. Customers should be delighted in their interactions with a business. If, instead, customers actively hate a business, and wish for its demise, such a business cannot last long.

Yours Sincerely,
Henry Chong

“You know your business model is broken when you’re suing your customers.”
– Paul Graham, Co-Founder of Y-Combinator