Good customer service is a huge differentiator in the market for your brand. Customers expect to be treated well, and they’re quick to take their business elsewhere if they’re not. In fact, bad customer service costs businesses billions of dollars each year. We’ve collected and curated these relevant statistics that show just how important good customer service is.
Negative Impacts of Poor Customer Service
It’s not enough to just provide a good service or a great product, but you also need to make sure that customers are happy with the service they receive. What many businesses don’t realize is that bad customer service can actually costs a lot more than just the occasional angry phone call.
Delivering poor customer service can lead to bad reviews, lost customers, and even cause damage to your brand reputation. In other words, it can be costly both in the short and long run. That’s why it’s so important to make sure that your customer service is up to par.
- 31% of customers say having to repeat information is the most frustrating part of a poor customer service experience.
- 79% of customers are willing to switch brands if another company gives them a better customer experience.
- 78% of customers will forgive a mistake, if they receive excellent customer service.
- 13% of unsatisfied customers will tell 15 or more people when they’re disappointed with your brand.
- 83% of angry customers will switch brands after a negative experience with a brand.
- 91% of customers who are unhappy with a brand leave for a competitor without even registering a complaint.
- Customers will tell 9 people about a positive customer service experience, but 16 people about a negative one.
- 53% of US adult customers are likely to abandon their online shopping if they’re unable to find an instant answer to their question.
- 42% customers refuse to buy from a company that they don’t believe is empathetic.
- 40% of customers recommend others not to buy from a business if they’ve had poor customer service with them.
Benefits of Providing Excellent Customer Service
There are many benefits of good customer service. For businesses, it can lead to more sales and repeat customers. For customers, it can lead to a better overall experience and satisfaction with a product or service. Good customer service can also lead to greater loyalty and referrals. In today’s competitive marketplace, providing excellent customer service is more important than ever.
By taking the time to understand the needs of your customers and going the extra mile to meet their expectations, you can create a brand following that will continue to do business with you for years to come.
- 90% of customer service leaders report that customer expectations have reached an all-time high.
- 84% of customers would prefer a straightforward solution to their problem rather than a broad array of self-service channels.
- 65% of customers consider a great experience to be more influential than advertising.
- 70% of customers whose issues were resolved in their favor said they would be willing to give repeat business.
- Customers who get their complaints handled in less than five minutes spend more on future purchases.
- 80% of customers say the experience a company provides is just as important as its products or services.
- 89% of consumers are more likely to make another purchase after a positive customer experience.
- 1 in 3 customers says talking to a knowledgeable agent is key to good customer support.
- 73% of consumers say that valuing their time is the most important thing a company can do to provide them with good service.
- 72% of customers expect agents to know who they are and their customers service history.
- 47% of customers said a speedy response is one of the most important features after quality of service.
- 79% of consumers say it’s very important to be immediately routed to the agent most knowledgeable about their issue.
Better Training & Tools for the Agents Lead to Higher Customer Satisfaction
Customers want to be helped by knowledgeable agents and receive quick solutions. But here’s the thing: agents need the right tools to deliver exceptional customer service. When they’re not wasting time in mundane tasks, they can focus on providing the best possible experience for customers. This leads to happier customers and better job satisfaction for agents. It’s a win-win for both sides!
When agents are able to confidently answer questions and solve problems, customers will be more satisfied with the interactions. If agents feel good about their job and are working efficiently, they will be better able to handle tough customer service situations. By investing in your contact center agents, you can create a lasting impact on customer satisfaction. Here’s are some data points that prove just that:
- 78% of millennials expect customer support agents to know their purchase and communication history.
- 62% customers feel that dealing with a knowledgeable agent strongly links to a positive interaction.
- Only 26% of customer support agents feel they have the tools and resources they need to succeed.
- 80% of customer service leaders agree that 20% or more of the tickets are repetitive and simple to resolve.
- 91% of customer service agents agree that using a help desk system increases their productivity.
- Technical service and support industry see an average agent turnover of nearly 40% per year.
- Employees who feel burned out are 2.6 times more likely to be actively seeking another job.
- Teams that track support metrics reduce resolution times by 16%.
- The average response time to handle a customer service request is 12 hours and 10 minutes.
- Companies expect 40% of employees will use a remote working model in the future.
- 46% of customers say that they will abandon a brand whose employees show a lack of knowledge.
- Consolidating an internal function in the contact center, which reduced call transfers and generated efficiency, led to an 11% improvement in frontline staff engagement.
- 25% of customer service leaders state that their agents use 5-8 different systems to resolve inbound customer questions.
- 80% of workers use collaboration tools in 2021, which a 44% rise since before the pandemic in 2019.
- 68% of customers said that a pleasant representative was key to their recent positive service experience.
So if you’re looking to provide amazing service to your customers, make sure that you invest in the right tools and job training for your support agents. It’ll make all the difference in the world.
Customers want faster resolutions & they expect you to deliver
When it comes to customer service, speed is next most important thing after quality. Customers want their problems resolved instantly, and they want you to value and respect their time. That’s why it’s so important to have a customer service team that can handle issues quickly and efficiently.
Additionally, it’s important to set realistic expectations with your customers so they know what to expect in terms of turnaround time.
- 56% of customers say that long holds and wait times are the most furstrating aspect of bad customer service.
- 88% of customers expect a response from your business within 60 minutes.
- 75% of online customers expect support to provide help within 5 minutes.
- 55.3% of consumers stay loyal to a brand because they love the product.
- 90% of customers say when they interact with a brand online, they want a convenient experience.
- 83% of customers say the most important part of a good digital experience is being able to quickly accomplish what they came to do.
- 71% of those who receive quick and effective brand response are likely to recommend that brand to others.
- 12% of American customers say that lack of speed is their top reason for customer service frustration.
- 90% of consumers consider an immediate response as an important or very important factor.
- 75% of customers believe that it takes too long to reach a live agent.
- 46% of customer service teams have a Service Level Agreement (SLA) policy to resolve queries in under 6 hours.
Self-help Options like Knowledge Base Can Provide Instant Resolutions
Many customers prefer to help themselves when they encounter an issue, rather than reaching out to an agent. By providing well-documented articles on your website, you can help them solve their issues on their own. Not only does this leave your team more time to deal with more tricky problems, but it also saves the customer the frustration from having to wait.
Self-help allows the customer to resolve the issue at their own pace, without feeling pressure to hurry. Providing clear and concise instructions in your articles is the best way to ensure that customers are able to do this successfully.
- 81% of customers across different industries try to resolve the matter by themselves prior to reach out to an agent.
- Self help options can reduce request volumes by as much as 42%.
- 91% of customers say they would use an online knowledge base if it was tailored to their needs.
- 70% customers expect the company website to include self-service option.
- 60% of customers say that they have used an online knowledge base within the past year.
- 40% of customers prefer a knowledge base over any other kind of support.
- 90% of customers expect companies to provide self-service through an online portal.
- 46% of global customers say that they use an FAQ page as a customer service channel.
- Companies that use knowledge management tools such as knowledge bases have higher average first-level resolution rates than those that don’t.
Faster Service via Live Chat Is worth the Extra Cost
Customers these days are used to getting their questions answered quickly and easily. They don’t want to have to wait on the phone for someone to pick up, or shoot off an email and hope for a timely response. That’s where live chat comes in. It’s the fastest way for customers to get the answers they need, and it’s becoming more and more popular as a result.
Bear in mind that providing a live chat service can be expensive in terms of resources. But if you’re able to provide good customer service and answer questions quickly, it’s definitely something worth considering.
- 73% of customers who used live chat were satisfied with their experience, compared to half (61%) of those who used email and 44% using phone support.
- 44% of consumers say that getting their questions answered by a live person while making an online purchase is the most important feature a website can offer.
- A staggering 21% of live chat requests end up going unanswered.
- Customers who use live chat can have upto 3.5 times more conversion rate than those who didn’t.
- Average cost of a live service transaction is more than $7 for a B2C company and more than $13 for a B2B company.
- 42% of customers prefer chat as a channel of communication over others like email and social media.
- 53% of customers would prefer to use online chat before calling a company for support.
- 47% of customers haven’t had a positive live chat experience in the last month.
- 79% of customers say they prefer live chat because they can get their questions answered quickly.
- 52% of consumers are more likely to remain loyal to a company that offers live chat support.
- 45% of customers say thay have used online chat to talk to a live agent in the past 12 months.
Combining Automation with Human Touch Can Be Rewarding
While vast majority of customers (74%) desire more human interaction from customer support agents, automating parts of the interaction can be benefitial to both your customers and your team.
Chatbots can be available 24/7, meaning customers can get help at any time of the day or night. The bots can even be programmed to give personalized answers to common questions and direct customers to the right resources. Chat bots can also assist the agents by collecting relevant details from the customer beforehand.
- 74% of customers expressed that they desire more human interaction from customer support representatives.
- 64% of customers agree that 24/7 service is one of the benefit of chat bots.
- 55% of customers say they appreciate chat bots because they can give instant responses.
- More than half of customers don’t care if support is offered by a human or a bot so long as it’s fast.
- 40% of customers aren’t concerned if they get support from a human agent or an AI tool, provided their question is answered.
- 30% of US consumers rate chatbot interactions as “very effective” in dealing with customer service issues.
- 53% of customers think artificial intelligence (AI) makes interacting with brands a better experience.
- 62% of customers would try using a chat bot instead of waiting for an agent to take their call.
- 30% of customers say not being able to reach a real human is the most frustrating aspect of a bad customer service experience.
- 37% of customers have used an online virtual agent or a chat bot from a website in the past 12 months.
At the end of the day, customers are more than happy to receive help from chat bots as long as their problems are solved quickly and efficiently.
Providing Convenient & Flexible Options Makes a Positive Impression
Businesses must recognize that today’s customers come from all walks of life, and each have their own unique needs. From a customer’s point of view, what they want is convenience and flexible options when they reach out to customer support. It’s important to create a tailored customer experience that will meet the needs of all your customers.
Many customers prefer to have multiple channels to reach out to customer support. This includes email, social media, web chat, and even phone calls. Offering multiple channels allows customers to pick the one that works best for them. The more choices customers have and the more tailored their experience is, the more likely they are to remain loyal to the brand.
- 84% of online shoppers would stop doing business with a brand after a negative return experience.
- 79% among millennials are more inclined to buy from brands that have a mobile-responsive customer support portal.
- 69% of online customers shop more with retailers that offer consistent customer service both online and offline.
- 64% of customers say that customer experience is more important than price when making a purchase.
- 68% of customers have a more favourable view of brands that offer or contact them with proactive customer service notifications.
- 79% of millennial respondents have a more favourable view of brands that offer a mobile-responsive customer support portal.
- 66% of customers say they actively use use 3 or more channels to reach customer service.
- 33% of customers have contacted a company through Facebook or similar social channels in the past 12 months.
- 46% of customer service teams say that phone is the busiest channel for their team.
- 32% of customers have used screen sharing or online video chat with an agent.
- 76% of customer service teams offer support outside of business hours.
- 31% of customers have sent an mobile text message (SMS) to a company requesting assistance.
Benefits of Collecting Customer Feedback & Online Reviews
It might seem like your customers are completely satisfied with your business — they come in, shop around, and leave without any complaints. But did you know that asking for feedback is an important way to ensure they’re really happy? Obtaining feedback is a great way to understand how well your customers are doing, and it shows them that you value their opinion and experiences.
What’s more, potential customers take notice when they see that other people have had positive experiences with you. So by gathering customer feedback, you can not only better serve existing customers but also reel in new ones!
- 77% of customers have a more favorable view of brands that ask for and accept customer feedback.
- Only 1 in 26 unhappy customers will reach out to you with a complaint - the rest will just vanish without a trace.
- Only 42% of customers believe that companies listen to online feedback.
- 67% of customers saying they would consider leaving a review for a positive experience.
- 89% of consumers are highly likely to use a business that responds to all of its online reviews.
- 70% of companies delivering best-in-class customer experience use customer feedback.
- 90% of customers are influenced by positive reviews of a brand when buying a product.
- 52% of customers believe that most brands take actions based on their feedback.
- 88% of customers have been influenced by an online customer service review when making a buying decision.
Most Efficient Ways of Collecting Customer Feedback
The best way to collect customer feedback is to make it as simple and convenient as possible for them. That means keeping your surveys short, sweet and to-the-point so they don’t get overwhelmed while answering questions. Not only that, but you should also send the survey via channels the customers are already using - like text messaging or email - so their experience isn’t interrupted by your request.
Making it easier for customers to give you valuable feedback will lead to higher response rates. This means you’ll get high quality responses to give you a comprehensive picture of what your customers really think.
- 38% of customer service teams use satisfactions surveys to collect customer feedback.
- The more questions in a survey, the less time your customers spend on each question.
- Using responsive email templates can bring about a 15% increase in clicks.
- Increasing the length of a customer survey from 3 to 4 questions can drop the completion rates by 18%.
- 74% of customers are only willing to answer 5 or less questions in a survey.
- 73% of surveys are completed by the customers when sent as an embedded survey in an email.
- Transactional email are more than 80% likely to be opened by the customers who receive them. So, it’s a great place to inject your surveys.
- 41% of customer support professionals say that CSAT is their team’s most important KPI.
- 51% of customer service teams analyze their support queries to gather customer feedback.
It’s important to make sure that you’re providing the best possible experience for your customers. By creating a strong customer service strategy, you can help to ensure that your customers are happy and that your business is able to prosper.