7 Alarming Customer Service Stats on Customer Retention

7 Alarming Customer Service Stats on Customer Retention

When operating in a customer service environment, knowing your customer and how to retain them is key. With so many different options available to your competitors, having a blueprint on what NOT to do can make a tremendous difference in the services you offer and the way customers are handled. Today’s customer wants the experience, with a “what’s in it for me?” mindset. Companies must rise to the challenge and provide that service beyond customer expectations.

If you want to know how bad it can get, here are a few customer service statistics on customer retention that should get your attention:

  1. Bad customer experiences are the cause of 67% of customer churn. This means when a customer is unhappy, they leave and go to your competitor. No one wants to feel as if they have been mistreated or misinformed. It is up to your call center team to get it right the very first time.
  2. $83 billion dollars are lost every year by U.S. companies due to poor customer service. When your customers complain, it costs time and money. When they fail to continue patronizing your establishment, it also costs money. Poor customer service can quickly send a company into the red. Training your employees to properly provide a great customer experience is gold.
  3. The White House Office of Consumer Affairs says that news of bad customer service reaches more than twice as many ears as praise for a good service. With social media and online reviews dominating the customer service space, your contact center agents must be trained to immediately address and resolve any outstanding issues to avoid negative exposure through word-of-mouth, or online.
  4. 76% of customers view customer service quality as the true test of how a business values them. It’s no secret that customer service has become front and center in the consumer journey. Customers are very vocal about what they want, need, and will not stand for. The way your customer service department handles customer interactions is a direct reflection on the culture of an organization, which will also be reflected in the bottom line.
  5. Only 1 in 26 unhappy customers complain about their negative customer service experiences. Although these customers are not complaining, they are taking their money elsewhere. Your competition will quickly reap the benefits of unhappy customer service interactions.
  6. Acquiring a new customer is 5 to 25 times more expensive than keeping an existing one. Acquiring a new customer takes time and money. Manpower, marketing, incentives and a host of other factors go into the acquisition of just one customer. With existing customers, the goal is to provide great service that will retain them, which is lower in cost.
  7. Loyal customers are 5 times more likely to repurchase from you, and 4 times more likely to refer you to a friend or family member. Word-of-mouth is one of the best marketing techniques around that you cannot pay for. Good customer service helps develop brand and customer loyalty. When customers are satisfied with your services and have good experiences, they quickly tell others, whether in person or through social media.

It’s important that customer service representatives know and understand that they are the first step in providing a happy customer experience. And it’s important for business owners to remember:

Customer Service is More Important Than Ever for Staying Profitable

Customers can quickly turn the tables on your business when they are unhappy. With technology being a centralized option for most, bad news can spread in just a few seconds. Maintaining your reputation through stellar customer service is the only way to remain competitive and profitable today.

You May Not Have the Resources to Handle This Alone

In an ideal world everyone would be available to provide top-notch customer service 24/7. Unfortunately, that is not always as easy as it might seem. Investing in hiring and training additional staff might be necessary, but it can also be quite costly when you take into consideration recruitment and training costs, salary, benefits, technology, and much more. However, if you have employees doing too many tasks at once, something is bound to get missed. Focusing on high quality customer support and handling their everyday responsibilities can cause time constraints that might end up severely affecting your bottom line. Also, it will be very difficult for your employees to provide the best customer service experience your consumers expect when they have too many things going on at once. Not to mention, if they are unable to communicate effectively in English and Spanish, they may give a less than desired experience to some consumers.

Also see: The Benefits of Bilingual Call Centers

Although these customer service stats are alarming, there are ways to avoid a customer service crisis. Utilizing the services of a call center or answering service can help increase your bottom line and provide a customer service experience that your customers will enjoy. Customer retention is one of the most important aspects of your business that cannot be ignored. At AnswerNow, we may just be the answer you have been looking for. AnswerNow can provide you with the necessary solutions and assist you in getting the help you need for your company without incurring the burden of added hiring/training costs. We are designed to provide bilingual customer support around the clock to keep your employees focused on their specified duties, while your customer service support responsibilities are entrusted to us.

Contact us to learn more about our customized solutions today!