Home Client Relations How Bad Customer Service Impacts a Business

How Bad Customer Service Impacts a Business


How Customer Service Impacts Loyalty

The Impact of Customer Service, The Good, The Bad, and the Ugly

A survey was conducted by dimensional research in a bid to ascertain the value of a good customer service and the impact of a bad one in a business. The results of this survey revealed the facts behind the Good, bad and ugly sides of customer service and the effect it had on the behavior of customers.

Importance of First Impression
It is commonly said that the first impression lasts for ever. This was emphasized when survey results revealed that clients are more likely to recall a bad experience and those experiences influenced their future behavior as 24% of the sampled population looked for a vendor even after 2 years of a pleasant experience while 39% continued to avoid the vendor even after 2 years of a bad experience.

For women, 45% are more likely to avoid a vendor for two more years after a bad service. For B2B, 51% are more likely to do same, for generation X, 54% are more likely to act same while for the high income household, 79% will follow the same trends.

When Sharing is More Prominent
It was also discovered that respondents are more likely to share a bad experience more quickly as compared to good ones. This is in line with the common saying that bad news travels faster than good news.

For good experiences, 87% of the sampled population shared their experiences with others while 33% shared their good experiences with just over five people. For bad experiences, 95% shared with others while 54% shared their bad experiences with just over 5 people.

Through the use of social media, customers can share their experiences with others. 38% of the sampled population shared their positive experiences on social media while 45% shared their negative experiences on social media also.

The survey also revealed that 69% of the sampled population read the positive review of customers online while 63% read the negative review of customers online. Through reading customers reviews, 88% have been influenced to make purchases on line.

In summary, it was discovered that when customers have great positive experiences, they are more likely to make purchases while for those with negative experiences, more than half of them are likely to make purchases from other companies. The following were observed.

• It was discovered that about 52% of the sampled population said that an excellent customer experience makes them repeat customers with respect to a particular company.

• 55% of the sampled population said they changed companies after having a bad customer service experience.

• About 50% recommended to others not to make purchases from a particular company after they’ve had a negative experience with them.

As compared to 5 years ago, 58% of respondents said they were more likely to share their customer experience with others especially online. For businesses, it means that taking advantage of this trend by providing excellent customer service is the best way to remain in business as compared to previous times.