INSIGHT #5: Sticker Shock: The High Cost of Poor Customer Service

I’m sure you’ve all heard this story before…it goes something like, “Happy customers are repeat customers, and repeat customers bring in new customers, and happy customers start with great customer service.” The idea seems straightforward enough—whether selling software or t-shirts, hotel rooms or legal services, or…—making sure that the consumer is happy and pleased with their experience is what turns that business into more business. Yet many fall short, and their customers, their experience, and their subsequent revenue pay the price.

 

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Much like the sticker shock one sees when buying that new car, the results above are hard to swallow. In recent studies conducted by Strategy and Consulting firm Accenture, results showed that over half of consumers switched providers due to poor customer service. What’s more, 81% admit high levels of frustration when dealing with a company that makes service tricky, and a staggering 83% said that if businesses provided better live or in-person support, it would have impacted their decision to switch. The nail in the coffin? Nearly three-fourths of those consumers say they won’t go back, leading to an estimated cost of customer-loss at $1.6 trillion.

 

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Thankfully this story can have a very happy ending. If you’re rocking customer service, keep it up, as 83% of consumers will buy from a business that family or friends recommend, and are four times more likely to do so than those that aren’t recommended. (Nielsen). And if you’re struggling, give us a call, as we’re in the business of answering that phone call, text, email, or chat to help businesses like yours deliver a better customer experience and, subsequently, deliver you a better bottom line.