There is an undeniable link between a customer’s brand loyalty and the level of customer service being delivered. Although this link is extremely difficult to quantify, there are clear business gains from providing a superior customer experience. Simply put, bad customer service isn’t cheap. Continue reading to learn more about the hard-to-track, but gargantuan cost of bad customer service.
How much is bad customer service costing you?
Unfortunately, the cost of bad customer service is much more expensive than you or anyone else could effectively estimate because businesses only hear from 4% of dissatisfied customers. Because of this, calculating the cost of bad customer service can be difficult. However, many studies have estimated bad customer service costs U.S. corporations a staggering $84 billion each year.
Your customers are why you do what you do and the most vital aspect of your business. As a result, it’s imperative to provide a superior customer experience every time they come in contact with your brand. Considering that acquiring new customers costs anywhere from six to 10 times more than keeping your current customers, it simply makes dollars and sense to provide superior customer service.
Good customer service leads to profits
Providing good customer service isn’t just the hip way of doing business, it leads to profits. According to the American Express 2012 Customer Service Barometer Study, 66% of consumers in the United States are willing to spend more money with a brand when they perceive superior customer service. It’s a fact of doing business, when a customer feels appreciated, they will be more likely to continue shopping with the brand. The same study reported that 75% of customers have already increased their spending with a company because of superior service.
The benefit of solving problems
According to the Accenture 2012 Global Consumer Pulse Research report, approximately 50% of the customers they surveyed in a customer service survey stated they left a brand because of bad customer service. Over half of those customers stated they would have remained loyal if their loyalty was rewarded. A staggering 70% of those customers said they would have stayed with the brand if their problem was addressed in one phone call, instead of having to go through several interactions. In any case, providing good customer service hinges on your ability to quickly address a customer’s problems.
Simply put, it’s important for your organization to provide a superior customer service experience with every customer interaction. Whether it’s through email, over the phone, on social media, or in-person, good customer service is an integral component to every successful brand. On the other hand, companies that fail to meet this inherent consumer demand will have to face inevitable demise due to the overwhelming cost of bad customer service.
Keep your customer service team sharp here.
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