Customer service stories often surface in a negative light—a service wasn’t cancelled, no one responded to a problem, or a company didn’t deliver on its promise. In fact, nearly one-third of consumers think that businesses are paying less attention to providing great customer service.
And unfortunately, the customer is always right about this. While over 80% of companies boast that they provide “superior” customer service, only 8% of customers actually agree with them.
What’s a company to do?
Invest in and provide a good service experience, for the good of your customers (and your company).
At OneReach, we think great customer service isn’t just about the channels you use–it’s about making service on any channel effortless, intuitive and available any time. Companies that invest in great customer service, be it through their contact centers, help pages, or self-service initiatives, can increase customer satisfaction, customer loyalty, and even save money.
Check out these customer service statistics to see the power of a positive customer service experience (and what happens when companies aren’t providing it).
- By the year 2020 (coming up fast!), customer service will beat out price and product as the key brand differentiator. (Walker Info)
- It’s 6-7 times more expensive to attract a new customer than to keep an existing one. (White House Office of Consumer Affairs)
- A 10% increase in customer retention can result in 30% increase in company value. (Bain & Co.)
- If customers have a “very good” or “excellent” service experience, 97% of them are “very” or “extremely” likely to tell friends and family about it. (Survey Monkey)
- 89% of customers will start doing business with a competitor after a negative service experience. (VPI Corp)
- 82% of customers stopped doing business with a company after a bad customer service experience. (RightNow)
- Over 65% of customers say that valuing their time is the most important thing a company can do to provide good online service. (NICE)
- Three out of five customers would try a new brand or company in order to get better service. (American Express)
- Over 90% of customers who have an effortless service experience with companies will buy from that company again. (CEB)
- Only a paltry 1% of customers feel that their expectations of good customer service are always met. (RightNow)
- 90% of customer service decision makers believe that delivering good customer service is essential to their companies’ success. (Forrester)
- 58% of customers are willing to spend more with companies that provide a great customer service experience. (American Express)
- 87% of customers share good service experiences with others. (Zendesk)
- Nearly 50% of customers who had a negative service experience have told over 10 people about it. (Harvard Business Review)
- 73% of consumers say that a friendly customer service rep can make them fall in love with a brand. (RightNow)
- 74% of customers find a poor customer service experience annoying. (Synthetix)
- 85% of organizations support multichannel customer service interactions. (Deloitte)
- Over 60% of companies think mobile customer service is a competitive differentiator. (ICMI)
- 90% of customers expect to receive a consistent customer experience across channels. (Synthetix)
- 74% of customers have spent more in response to good customer service. (American Express)
- 68% of customers say they’ve switched brands because of bad customer service. (Accenture)
- U.S. companies lose approximately $41 billion annually due to bad customer service. (SmartCustomerService)
- 78% of consumers have bailed on a transaction because of bad customer service. (American Express)
- 81% of customers are likely to repeat business with a company after a good service experience. (Kissmetrics)
- A 5% increase in customer retention can increase profits by up to 125%. (Bain & Co.)
What do you think companies can do to create a powerfully positive customer experience? Is there one obvious thing they’re missing, or are there some big changes they could make? Let us know in the comments, and don’t forget to download our ebook on the seamless customer experience!
Though I’ve previously seen almost all of these stats, it’s good to have them nicely listed. Demonstrates that the whole, i.e. prospective influence of service on customer behavior, is more than the sum of its parts. Also, it’s well to remember that, though service is often important, customer experience is considerably more than service. Any direct or indirect interaction with the vendor can shape customer emotion, subconscious response, memory, perception, and downstream action.
Hi Michael,
Thanks for your feedback! I agree with what you said–all these stats make a compelling case about the importance of good customer service (financially, satisfactorily, etc.) And you’re right–customer service is just one (very) important part of the customer experience. A company needs to make sure they’ve thought out not just their customer service, but also their entire customer experience, from beginning to end, as well.