The Consequences of Poor Customer Service
You may think customers have become numb to mediocrity in customer service. However, a study by the British customer relations organization Consumer Forum found that customers were three times more likely to tell their friends about bad service than about good service. And the global research group Emerald has concluded that the quality of a company's customer service directly affects repeat business.
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Loss of Business
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Nearly every respondent to the Consumer Forum survey said poor customer service "would compel them to take their business elsewhere." That translates into a loss of sales opportunities from poor customer service. That loss is multiplied, because the survey found that 80 percent of respondents share their customer service experiences--good or bad--with their "friends, family and associates."
Less Room for Error
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According to Emerald, when bank customers experienced poor customer service, they were more likely to evaluate the bank's services more closely and critically than people who received good customer service. No matter how good your product or service is, if it's delivered with poor customer service, your customer is less likely to be impressed with it.
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More Work
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Appeasing angry customers is a lot of work. A study by the Research Institute of America found that customers needed to have 12 positive experiences with a business to make up for one negative experience. Efforts to lure those customers back with special treatment can be costly and time-consuming.
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References
- Photo Credit emotional businessman image by Slyadnyev Oleksandr from Fotolia.com
