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Why bad customer service is expensive

Why bad customer service is expensive

Companies in Europe are giving away revenues amounting to nearly 13 billion euros each year to their competitors. Of course, they are not sacrificing these revenues voluntarily. And yet it would be relatively easy for them to remedy the cause of this “revenue shift.”

Lack of appreciation, long waiting times, impolite or incompetent service staff – there are different reasons why customers feel poorly supported. But their response is usually the same: every year, nearly 70 percent of consumers in Germany are turning to new service providers. These are the findings of the current study “Emotional Aspects in Customer Service,” commissioned by the British cloud service company New Voice Media. The survey included a total of 2,047 adults in Germany .

Above all, customers expect a brand to provide expertise and availability. According to the respondents, the most important factors for an emotional connection to a brand is that a knowledgeable advisor addresses their concern, that the company is reachable through their preferred communication channel, and that the brand offers a fulfilling shopping experience.

The right information through the right channel

Phone and email contact are the most important communication channels for the surveyed individuals, who still prefer personal contact when addressing problems. This means that self-service solutions should be set up in a way that allows for the seamless integration of a customer advisor.

A 360-degree view of the customer is also important. It prevents customers from having to repeat their concern over and over – even if they are using multiple channels for their inquiries.

Another point concerning contact channels: 11 percent of those surveyed also use social media when looking for a solution to their problem. And 17 percent would post a complaint on social media if they experienced poor customer service. The expectation here is that a company will respond out of fear of having its reputation damaged.

Added value with service

But consumers’ high demands are just one side of the coin. In reality, consumers reward good customer service. Good service boosts customer loyalty (72 percent of respondents), leads to recommendations (62 percent) and increases revenues (18 percent). That’s an investment that clearly pays off.


Author: Editorial team Future. Customer.
Image: © Torbz – AdobeStock

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