How Poor Customer Service Affects Your Bottom Line and How to Fix It

Written by Jeff Cole on November 9, 2016

We’ve all been there in a long line, in front of an inattentive salesperson, or on the phone with an unavailable representative. We’ve all experienced bad customer service. And, usually, reactions to no longer work with that business or give them a bad review has been more justified.

Long wait times, inattentiveness, and unavailability are the last things you want your business to be known for.

Here are some stats we’ve found that really emphasize the importance of good customer service. We’ve also included some tips to help you implement better customer service.

The Bad News

The saying “First impressions matter,” is a saying for a reason. ZenDesk found that 39% of consumers will avoid businesses that give them bad service  for 2 years or more. 45% of these consumers are women and 79% are from high income households.

Mediapost has found that businesses aren’t just losing customers, they are also losing money over bad customer service. U.S. businesses lose $83 billion each year as a direct result of bad customer service.

As you can tell bad customer service can seriously affect your bottom line and, worse, improve your competitor’s. In fact, 9/10 customers will move their business to a competitor over bad service.

Now that we’ve started with the bad news, we can move on to the good– that is bad service can be made good and good service can be made better.

The Good News

Have you ever been pleasantly surprised and left wanting to do business with a company again and again? What was it that attracted you to them? Well, they were probably prompt, convenient, personal, and accessible. These are the hallmarks of good customer service.

If you read our post about Customer Self-Service, you’ll know that today’s consumers are very tech savvy and expect their favorite companies to interact with them technologically.

Here are a few things that you can do to up the ante and couple good customer service with technology:

Update your website

Having an aesthetically pleasing and user friendly website is key to getting prospects to stay longer. Your goal is to reduce any frustration as they do their research.

Include a knowledge base

A knowledge base like an FAQ Display allows your customers to easily navigate your services and get answers to commonly asked questions. This eliminates having to pick up the phone, wait on the line, and talk to a representative.

Enable your website with real-time online booking

70% of consumers expect a company’s website to have a self-service application. They want to book an appointment quickly and with ease.

Implement a Chat Room

A chat room gives customers a genuine level of human interaction from the company.

Stay on top of inquiries and follow up

As the evidence shows, it’s easy for leads to get lost in the rough and tumble of everyday operations. Stay on top of your leads and automate text notifications to your phone for when a lead comes in.

A thoughtful and well-developed customer service strategy converts leads to clients. Putting yourself in your customer’s shoes gives you insight and sets you in the right direction of growth.