Customer Service Expert: “The SILENT KILLER of Business Is Just-Okay Service”

Updated: 2 days ago

Mediocre service is not just frustrating—it is the "silent killer of business," according to customer experience strategist Stephen Merrill. While outright service failure might grab headlines, the slow erosion caused by "just-okay service" quietly destroys your reputation, revenue, and retention.

In this powerful episode of The Leadership Crucible Podcast, Retired Fire Chief Randy Bruegman sits down with Stephen Merrill, the bestselling author of The Customer Service Cookbook, to dissect this critical issue. They explore why leaders must stop chasing the next big lead and start obsessing over the people they already have: their employees and their existing customers.

Here is a breakdown of the actionable leadership and customer experience insights from Stephen Merrill.

1. Why "Just-Okay Service" Is The Silent Killer of Business

The greatest danger to your company isn't the occasional viral customer complaint; it's the customer who simply leaves without a word.

As Merrill explains, a customer who receives a "basic" experience—one notch below their minimum expectation—will not complain to the manager. Instead, they will pay their bill and never return.

"They don't write a review, they don't say anything to the manager. And that's why it's the silent killer. Because if you leave having a bad experience, that team still thinks they're providing good or great experiences, but they're actually not."

Leaders must recognize that complacency is an internal crisis. By being unaware of their service shortcomings, they unknowingly bleed revenue and loyalty, making the case for service a life-or-death scenario for their business.

2. The Core Metrics of Loyalty: LPC & EPC

Forget chasing vanity metrics. Merrill challenges leaders to focus on two core internal metrics to drive sustainable growth:

LPC: Loyalty Per Customer: The long-term relationship you build.
EPC: Experiences Per Customer: The number of exceptional interactions you provide.

Focusing on EPC naturally drives LPC. As Merrill notes, if you can simply give a customer more than they asked for—even in a small way—that loyalty increases. These small hinges swing the biggest doors.

3. Culture is Not Slogans—It's Daily Action

The conversation stresses that customer service breakdowns are almost always leadership breakdowns. Stephen Merrill and Chief Bruegman agree that a positive customer experience is an inevitable byproduct of a positive employee experience.

People Before Paperwork: The discussion highlights how a simple act of genuine care from a manager—such as asking an employee to pronounce their name correctly—can dramatically increase productivity and loyalty, turning an employee into a top performer.
Leadership Sets the Standard: As Chief Bruegman emphasizes, leadership must "walk the talk." When employees see managers making time to connect with customers (like the restaurant owner visiting a table three times), they will naturally emulate that behavior.

"Culture is not what you say you do or who you say are. It's just lived out by your daily actions."

4. The 5 Levels of Customer Experience (And Where You Rank)

To fix "just-okay" service, you must first define what "great" service means to your organization. Merrill provides a framework of the five levels of customer experience, which can be applied to any company:

Basic (Going Out of Business): One notch below customer expectations. Customers leave quietly and never return.
Expected (Status Quo): Customers get exactly what they paid for. No excitement, no memory, no advocacy.
Desired (Starting to Charge More): The company has taken the time to know the customer and proactively anticipates their needs.
Memorable (The Disney Level): The experience is so valued that customers are willing to pay a premium. The goal is to help people create lasting memories with loved ones.
Exceptional (5% of Companies): Proactive, five steps ahead, delivering an experience better than the customer could have ever imagined. These companies build customers for life.