Bad Customer Service Loses US Companies Billions

  • June 23, 2016
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  • Blog

We all love computers, well, most of us, but we know computers will never replace a human.  Humans will always value human interaction.  Customer service now defines brands and their value, and greatly affects buyer decision-making, even more so than cost. Bad customer service costs US companies $41 billion a year (Source).

  • By 2020, customer experience will overtake price and product as the key brand differentiator.
  • After a positive customer experience, 69% of Americans would recommend that company to others
  • 60% of consumers favor a balance of price and service and will not accept low service levels in exchange for a cheap deal.
  • A 1% improvement in first Call Response = $276,000 in annual operational savings for the average call center
  • Companies focused on providing a superior experience across customer journeys realized a 10-15% increase in revenue and a 20% increase in customer satisfaction. – Source

Customer service on a one-to-one basis is being reduced.  With the rise of social media, customers are now supported by organizations via public conversations on Twitter and Facebook.  Social media must be a tool in your customer service toolkit.

  • Customers who encounter positive social customer care experiences are nearly 3 times more likely to recommend a brand.
  • Additionally, 42% of people will tell their friends about a good customer experience on social, while 53% will talk about a bad one.
  • And major brands aren’t just adopting social customer service: they’re making it a major priority. – Source