In New Media‘s 2018 “Serial Switcher” report, it reveals that poor customer service is costing businesses more than $78 billion annually. That is an increase of over $12 billion from their last report in 2016.
The report states that “The number of U.S. consumers who reported leaving a business due to an inadequate customer experience increased from 49 to 67 percent” between 2016 and 2018.
The key reasons for people leaving are:
- Customers not being able to speak to a person that can provide them with a solution to their problem
- Customers experience unhelpful/rude customer service personnel
- Customers not feeling appreciated
- Customers being passed around from person to person
- Customers are being put on hold for an extended period of time
When the customer experienced poor customer service, 39% said they would not use the company again and 28% said they would post an online review. These numbers will likely continue to increase as our economy becomes more service-based.
Brenda Dunn Kinney, Trillium Solutions Group’s Senior Vice President of Customer Experience believes that “If you are building a great brand and desire to have a value exchange with your customer. The organizations listening mechanisms need to be able to act immediately to your customer needs.” The NewVoiceMedia survey was focused on end consumers (B2C) as opposed to B2B businesses, but Brenda also believes that “B2B business are behaving in a similar way and are more frequently re-evaluating supplier and service contracts based on the service they are receiving.”
There are positive implications on a company that focuses on their customer’s experience. The NewVoiceMedia survey has some very positive things to say about companies that focus on their customer’s experience. If a company provided good customer service, “65 percent of customers would recommend the company to others” and “48 percent of customers would spend more money”.
In the age of digital transformation, the customer experience your company provides will make the difference between the success or failure of your business.