Downplaying the Importance of Customer Service and The Customer Experience Is No Longer An Option

I am amazed at how much US companies talk about customer service. I have been interviewing with companies of various sizes and each company touts their commitment and the importance of customer service to their long-term growth. 

 When you look at the numbers, it seems that most companies fail miserably at providing minimal customer service. A single poor customer experience can easily break a customer relationship and have a negative impact on the company’s reputation. 

 Surveys show 50% of people are disappointed with their buying experience and 61% feel they’re still treated like case numbers (not people) by the companies they buy from.

 Consider the following:

• For every customer complaint there are 26 other unhappy customers who have remained silent.
• A dissatisfied customer will tell between 9-15 people of their disappointing experience and 13% of dissatisfied customers tell more than 20 people.
• It takes 12 positive experienced to make up for one unresolved negative experience.
• 70% of buying experiences are based on how the customer feel they are being treated.
• 45% of US customers will abandon an online transaction if their questions or concerns are not quickly addressed.
• 55% of consumers would pay more for better customer experience.

 Consider the following facts:

• The probability of selling an existing customer is over 60%. The probability of selling a new prospect is 5%
• On average, a loyal customer is worth up to 10 times as much as their first purchase.
•  It cost 6-7 times more to acquire a new customer than to retain an existing one.
• A 5% increase in customer retention can increase a company’s profitability by 75%.
• 80 % of your company’s future revenue will come from just 20% of your existing customers.

 With social media becoming a huge part of everyday life, consider the following:

• Only 23% of companies provide customer service on Facebook.
• 46% of online customers expect brand to provide customer service on Facebook.
• 70% of companies ignore customer complaints on Twitter.
• 83% of complainants that receive a reply on social media liked or loved the facts that the company responded.
• 88% of consumers are less likely to buy from companies that leave complaints on social media unanswered. 

With competition at its greatest and the fight for customers most fierce, business can no longer take their customers for granted. Each customer is important and their perceptions will determine the fate of every company. History is littered with remains of companies that have died and are no longer around: Sears, Sports Authority, Kmart, Radio Shack, Circuit City, Payless Shoe Store, Toys-R-Us and Linens-n-Things

On the other hand, companies that provide outstanding customers service are dominating the market: Walmart, Amazon, Apple, McDonald’s, Aldi, Home Depot, Walgreens, Kroger Grocery, Whole Foods, L.L. Bean and Chick-fil-A.

To compete, businesses must incorporate outstanding customer service as a cornerstone of the company’s structure. Companies must implement a well-defined and communicated customer service philosophy. Because of the importance of customer service, everyone in the organization must be accountable for providing outstanding customer service.

Winning the customers service battle will pave a straight line to success.

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