How Much Can Poor Customer Service Cost Your Business??

Customer service is important. If you run a business, you already know that. But you might not realize just how great an impact poor customer service can have on your company’s bottom line. The data collected by ClickSoftware explains:

“Poor customer experiences result in an estimated $83 billion loss by U.S. enterprises each year because of defections and abandoned purchases.”

When dealing with customer service issues, it can be easy to focus more on the cost that might be associated with correcting issues. But the cost of not making your customers happy can be much greater. In many cases, just one misstep can cost you a customer that could have made future purchases with your business. In fact, the data suggests that 89% of consumers who experience poor service will switch to another brand.

It’s not just bad customer service that can impact your bottom line. The data also states that 63.9% of consumers consider customer service to be more important than price when deciding whether or not to do business with a company. And 55% would actually pay more to guarantee better service.

So even though providing good service can cost your company in some cases, customers appreciate it. And a strong reputation for customer service can actually help you balance out the costs sometimes associated with keeping your customers happy.

In order to maintain a strong reputation for customer service, using social media is almost a necessity. Customers who once had to call, write, or otherwise reach out to a company privately now turn to social media to express concerns or comments. Even though 70% of complaints on Twitter go unanswered, customers expect you to respond to them.

This more public means of airing grievances means that not only do businesses have a responsibility to address the concerns of their customers, but also the concerns of the rest of their social connections as well. Thanks to social media, one poor service experience can do more than just lose you a customer. It can damage your brand with all your followers.

So next time you’re dealing with a customer service issue – be sure to consider the real potential cost.