You would think that as economic conditions harden that customer service might improve. Certainly it should if businesses want to remain competitive, but the problem is exacerbated because all too often the first thing most companies cut back on is training. Front-line employees need regular training to ensure they deliver good customer service. This is a significant commitment, especially in industries where staff turnover is high, and can be costly. However the cost of poor customer service could be much higher.

We've often seen from the sort of research regularly conducted at Quocirca how businesses make choices with their mobile telecoms investments and the impact of customer service, but a recent conversation with my 11-year-old godson provides a sobering lesson in the realities of how to lose customers and influence no one—at least not positively.

Like most in their teens or pre-teens he is desperate for the latest new mobile phone and he knows what he wants. He is not led or swayed simply by big brand names or image; it is the range of attractive devices that appeals to him. When comparing different high street shops their plus points are rated on having the right set of options, as in: "They're good because they have the XYZ and the ABC which I really like". From his perspective, all the high street mobile-related shops have equal value whether they are handset suppliers such as Nokia, operators such as Orange, O2, Vodafone, T-Mobile and 3 or independent distributors such as Carphone Warehouse and Phones4U. So much for all that licensed spectrum and hardware investment, eh?

However he has a discerning dark side, based on direct experience and that of his phone-owning peers. Some store groups he refuses to go in because "they're not nice when you go in the shop", "they were rude to my friend's mum" and even "they look scruffy in that shop". All this from an 11-year-old. He might have forgotten the date of the Battle of Hastings, but he will never forget the stores he wants to avoid, and like most of his age has no qualms about telling everyone he knows his opinion—face to face, via instant messaging, email and social networking sites.

It's often said that reputations are won over years and lost in minutes, but this message applies across all demographics and age groups within a vendor's target market, and not just to the clearly premier consumer buyers they would all like to focus on. Good reputations have to be grown and nurtured in all those involved in the purchasing decision making process—for those with families that will often include the views of the younger members, especially if the purchase is for them.

As markets conditions tighten, the feeds and speeds of the technology being sold are no longer the competitive differentiators they once were. How should suppliers react—by cutting corners on employee training, treating customer-facing staff as easily-replaceable, low-cost, minimum wage fodder?

Well it's one way to save money, but in tougher times it's not the way to save the company—just check with an 11-year-old to see how quickly reputations stand or fall and how fast they can spread the word to their peers—whereas delivering friendly, helpful and informative customer service just might pay dividends.