In America, a recent survey conducted revealed that clients are of the opinion that companies pay lip service to customer service delivery. About 60% of Americans believe that companies have not looked for ways to improve their customer service delivery over the years. This is causing significant loss on both sides.
Things to Avoid
Customers are forced to feel that their phone call is not important to the company as the survey revealed that almost 80% of consumers have had to quit in the middle of a transaction as a result of a poor customer service while 60%, when speaking with a customer service representative lost their temper.
Benefits of Quality Customer Service
When customer service is good, business is good also as there will be an increased demand for services. This can be seen from the fact that about 70% of Americans will spend up to 13% more with companies that provide excellent customer service care.
This is an increase from 2010 when 58% said they will spend 9% more. It was also discovered that for every 5 American, 2 believe that although companies are helpful, not much is put into retaining their customers while for every 5 American, one believe that companies take their businesses for granted.
The survey revealed that most Americans prefer communicating with customer service representatives the old fashioned way. Here is the break down.
• 90% prefer a telephone conversation.
• 75% prefer face to face conversation.
• 67% prefer the company website.
• 47% prefer help chat online.
• 22% prefer text messages.
• 22% prefer social networking sites.
Although customers may not have a full knowledge of what they are looking for, they know what they want. Here is a breakdown of their preferences.
• 73% of customers want customer service agents who are friendly.
• 55% want to find help conveniently.
• 36% are in need of a personalized service.
• 33% want to do business with companies that have good reputation.
What the Statistics Show
From a recent study by Forrester, about 37% of companies were able to score “good” or “excellent” ratings from customers while the rest brands were rated “Ok”, “Poor”, or “Very Poor”. In spite of all these, only 26% of companies do have a solid strategy for an improved customer service
When a company loses a client to a competitor, it costs an average of $289 on an annual basis. The most grieved consumers are those within the age bracket of 30-49 years. This should give course for concern as American businesses are losing an estimated $83 billion in revenue as a result of loss due to lost orders.
Industries That Can Benefit
There is room for change irrespective of a long history of a bad customer service. The following sectors could boost revenue if they improve their customer services.
• Airlines: +$8.94 Billion
• Financial Service Providers: +$10 Billion
• Cable & Satellite Companies: +$12 Billion
• Wireless Carriers: +14.65 Billion
Effects of Poor Service
Up to 89% of clients said when they received a bad customer service, they moved over to the competitor as clients give companies about 1 week to respond to their complaint. Most of the customers take to social media to make complains about the services rendered to clients, nevertheless, more than 70% of complaints were completely ignored.
By not having an effective social media presence, 16% of clients regard companies as anti-social as clients who related with companies through social media are more likely to spend about 20-40 percent more as compared to other customers. More clients interact with service providers through RSS Feeds and LinkedIn while others relate via twitter and Facebook.
In summary, what makes an excellent customer service is not just about retaining customers, it is also a way to attract more customers.