There is nothing more costly to a company than bad customer service. Each year, it is estimated that US businesses lose $83 billion as a result of poor customer experiences. And this lost revenue doesn’t just disappear because of abandoned purchases “ it also results in customer defections to companies they believe will give them better customer service.
There’s no question that providence the best customer experience possible will help a business thrive, but what are the numbers behind good and bad positive customer service experiences?
These eight statistics, figures, and facts give significant insights in the mind of a consumer ” from what will win their business, and what will lose it forever.
- To begin, the buying experience for a customer is based not by fact but feeling. To be more precise, 70% of the buying experience is influenced from how a customer feels treated. With almost three-fourths of the buying experience focused on treatment, it is imperative to keep the customer happy and feeling important. (McKinsey)
- Alternatively, a negative experience during the buying phase could cause the customer to give up on the purchase altogether. 78% of consumers have said that they didn’t make a purchase due to bad customer service. So, while good customer service will win business 70% of the time, bad customer service will lose business 8% more frequently. (American Express Survey)
- If a customer does elect to do business with an organization, they expect quality customer service afterwards. A customer will repeat business with a company 70% of the time if they have a complaint that is resolved. This means hearing the customer’s issue, understanding it, and making sure the issue is solved quickly and easily. (Lee Resources)
- Transversely, a consumer who contacts a company with an issue and has a poor customer experience is far more likely to stop giving that company business. Negative customer experiences resulted in 86% of customers ceasing to do business with that company again, and 89% choosing to do business with a competitor. If you don’t treat your customers well, they won’t be your customers for long – and your competitors will love you for it. (Harris Interactive/RightNow)
- The loss of a customer is just the beginning however. When a customer has a bad service experience they’re going to make sure their voice is heard ” if not to the company then to anyone who will listen. Americans will tell an average of 16 people about bad customer service experiences, compared to just nine for positive ones. The rise of social media, from Twitter to Yelp, will likely ensure that number increases as time goes on. (American Express Survey)
- Negative feedback from a customer can be detrimental, even if it’s just one individual. On average, one negative customer experience holds the same weight as 12 positive ones. That means for every dozen people that feel a company did a good job handling their customer service, one person complaining about the customer service of said company will have the same impact. (Ruby Newell-Legner, “Understanding Customers”)
- Once an unhappy customer is gone, they tend to stay gone, with 91% of dissatisfied consumers refusing to do any business with a company they feel has given them a negative experience. Those 91% aren’t ceasing a service or product either ” they’re merely giving the competitors their business instead. (Lee Resources)
- Of course, of all the unhappy customers out there, only about 4% actually voice their concerns and issues with the company ” 96% don’t say anything, and 91% just bring their business elsewhere. Keeping a pulse on what customers are feeling can go a long way, and the importance of ensuring to fully meet the needs of the ones that do come to a company with a complaint can’t be overstated enough. (Ruby Newell-Legner, “Understanding Customers”)
Customer service opportunities can help bring new business and retain loyal customers, or they can quickly send customers to competition. To learn more about what positive customer experiences can do for a business, and how your call center agents can drive a quality experience that keeps customers coming back, chat with us today.