Any company's success, regardless of industry or size, thrives when its customer satisfaction rate is high. Satisfied customers lead to high sales, happy employees and a successful business. Is customer service your number one priority? Maybe it should be. Bad customer service costs your business in a variety of ways that impact the overall profitability and satisfaction not only of customers, but also prospects and employees.
Cost in Dollars
First and foremost, bad customer service obviously impacts your customers. Customers are on the receiving end of any bad habits your customer service or support team develops. A Forbes article sites a survey reporting that $62 billion dollars are lost annually in the United States due to bad customer service. Other sources report even higher amounts and the total worldwide amount at $300 billion.
What’s more, an American Express survey reports that 60% of disgruntled customers share their bad experiences. With today’s multitude of social media outlets, that sharing can affect your chances to close new business and adversely affect overall sales revenue. Prospective customers reviewing negative customer service information about your product or services are likely to opt out of even giving you a chance for their business.
Revenue loss can be dramatic. An Ovum Consulting survey reported that 76% of customers stopped doing business following a bad experience. On top of that, most customers do not report the problems. Fifty percent of customers with problems remain silent according to a CX Solutions report.
Cost beyond Dollars
Bad customer service impacts your employees, too. If your team constantly deals with unhappy customers, or if it lacks the training to appropriately provide quality customer service, morale can be low. Employees are the backbone of your company, so it’s important to recognize if bad customer service negatively impacts them. Of note, is the Ovum Consulting survey response reporting that 46% of contact center managers say technology frequently or occasionally is to blame for customer service issues. Employees are handicapped by high expectations for exceptional service while sabotaged by technology limitations.
A study reported in the Journal of Service Research indicated that customer satisfaction indirectly affects employee satisfaction through the perceived appreciation the employee receives from the customer. The article relates client satisfaction might pay off doubly—enhancing revenues and profits as well as employee satisfaction and retention rates.
Customer Satisfaction Success
Customer service can make or break a company. The success of your team’s ability to effectively communicate with and assist customers is key to a thriving business. We’ll explore the gains of great customer service in our upcoming companion post.
Meanwhile, you can explore customer satisfaction tools using a cloud-based phone system or virtual contact center solution. There are a variety of features that can help you effectively communicate with and service your customers. We’ll talk more about those in the companion article and discuss how the tools relate to customer satisfaction and employee productivity.