The True Cost Of Bad Customer Service [Infographic]

What is Bad Customer Service Costing Your Business?

Many companies make the mistake to only focus on the obvious, is the phone ringing? are we closing sales?

But there are many other, less obvious (I don’t want to say “hidden”) aspects of business, that directly affect the bottom line. Customer service is one of them.

In a way, social media has helped bring customer service to the very front end of business. Customer services is no longer a “behind-the-scenes” thing. We’ve always known that is easier to keep an existing customer than finding a new one but, in the era of “everything is public”, it also plays a big role on the marketing of the company.

The customer service department today is capable of making your company a success story or simply destroy it.

This is why I love the phrase used by HelpScout in the Infographic below.

“Customer service is the new marketing” [Tweet this]

If you’re not convinced yet that your company, startup or even freelance business needs to put more focus in providing stellar support, here are some important stats you should consider:

  • 86% will stop doing business with your company because of bad service experiences
  • 51% will only give you one chance
  • And the scariest problem in all this is that companies only hear from 4% of unhappy customers

See the opportunity?

There is one more number I want to point out to leave you on a positive note. While it is scary to see that only 10% of online merchants made the cut for “stellar” service, you should see this as an opportunity to enforce your customer satisfaction, this could very well translate into grabbing a bigger piece of the pie in your niche.

The true cost of bad customer service

Infographic courtesy of HelpScout.

  • One aspect of the social media/customer service area that many merchants forget about is that many social interactions are visible to the public. With traditional channels if a customer has a bad customer experience via phone or email, it is an isolated form of communication. However if a barrage of angry tweets go unnoticed, it shows all of your other followers that you aren’t connecting with your customers and addressing their comments or concerns in a timely fashion.

  • Monica Carter Tagore

    This infographic does an excellent job of illustrating the power of relationship. If you don’t want to build a relationship with customers because it’s the right and smart thing to do, then consider this one line from the infographic: A loyal customer is worth up to ten times as much as the first purchase. That is amazing. Treating your customers well and taking the time to build a relationship really is money in the bank.

  • Hey Nick, I agree… fixing an issue on the phone is easy, doing in public is another story.

  • Hey Monica, I guess it all goes back to relationships, right?

  • This is especially true in a social media world! One instance of bad service can ruin a company’s reputation for hundreds of people

  • I think there is so much competition out there these days compounded by the fact that with social media transparency has become the norm that it’s tougher and tougher for companies to get by with sub standard service. People expect more and if they don’t get it are less likely to come back.

  • Thank you so much for posting this. It is very true about the cost of bad customer service and it is nice to see it in actual metrics. Hopefully, companies will realize the benefit of putting that extra effort toward positive customer service.

  • I like infographics so much! and this one is cool!

  • Lovelen Pyles

    Lovelen Pyles thinks they do a good job.

  • It seems crazy how much one bad interaction can change a consumers mind for life. I know from personal experience that this is true, especially at restaurants. Whats more mind blowing is how only 4% of people complain to the company, but you can be sure that 100% of those people will complain to their friends. When people do actually complain, companies should do everything they can to correct their mistakes. Maybe this way consumers will correct themselves and spread the good news, instead of the bad.

    Elizabeth Staub

    Tulane University

  • adit

    Hi sir,

    I would like to know how big a role would customer service play in a CSR consultancy?

    would love to hear from you

  • Abbie Touchton

    Love the infographic. Customer service is HUGE this day and age! Without it, a company can definitely fail. Maintaining a high standard for employees and service both in the store and online are critical for profitability. Not only is it a necessity, but it is fun to have loyal customers! Seeing familiar faces (or talking to familiar voices) allows both the employees and the customers to feel more comfortable in the work environment and ensures a better experience for all.

  • The thing with customer service today is that you have to deal with the inquiries immediately (or better to say in a timely manner), otherwise your business/brand will be cheapen and bespattered because of your “bad service” and since these inquiries are starting to be dealt with in social, they are visible to anyone, so the reach of these inquiries is really high and that’s the thing business/brand owners should watch out for.

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