The Shocking Cost of Poor Customer Service [Infographic]

According to statistics found on Fivestars, 80% of business owners believe their business offers superior customer service. Surprisingly, though, only 8% of customers believe they receive excellent service.

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So, just how much are businesses losing to poor customer service, anyway?

In 2014, researchers revealed that an estimated $41 billion is lost by U.S. companies each year as a result of poor customer experience. That number is now up to $62 billion.

The NewVoiceMedia study linked to the infographic below found that 93% of customers will take action after having a bad experience, with 44% of U.S. consumers taking their business elsewhere as a result of poor service. So, what kind of behavior makes a customer switch to another brand? Take a look at the top 5 reasons customers take their business elsewhere:

1. They feel unappreciated (53%)
2. They’re put off by rude of unhelpful staff (42%)
3. They’re sick and tired of speaking with multiple agents or employees (32%)
4. They’re annoyed by the staff’s lack of knowledge (29%)
5. They’re tired of being left on hold (25%)

While these statistics came to light in 2014, they are no less relevant today. And just as the amount of monies lost due to poor customer service has increased by more than $20 billion since then, we must also assume that the percentages associated with customer reasons for switching brands have gone up as well.

There is some good news, though. The infographic also reveals that after a positive customer experience, 69% of consumers would recommend the company to others and 50% of customers would use the business more frequently.

The Take Away

70% of Americans are willing to spend an average of 13% more with companies they believe provide excellent customer service. When you genuinely focus on improving the customer experience, you’ll improve relationships and increase revenue, too.

Embedded from Blog | NewVoiceMedia

Originally published at Modern Retailing Hub by Rain Retail Software.