How Much Money Is Bad Customer Service Costing Your Business?

How often do you let a customer complaint go unresolved? I can't tell you how many times I have had a bad experience and told a manager and/or employee and felt like no one cared. If you aren't resolving customer complaints within 24 hours you can guarantee the word is out. When I look at customer reviews online or hear about a customer problem from a family or friend I immediately look to see if they have responded. Many times there isn't a response.

I read a recent article that ?Shep Hyken posted that stated how much money bad customer experience is costing organizations throughout the world $3.7 trillion annually. Shep also listed some other statistics that are worth thinking about.

• In 2024, 88% of customers thought customer service was more important than ever. That’s up from 83% in 2022 and 2023. In 2010, major consulting firms started predicting that within 10 years, the customer experience would be as important—if not more so—than the product. Of course, the product has to work, but comparable products can usually be purchased from numerous retailers or vendors.
• In 2024, 64% of customers said no matter how much they enjoy the product, if the company doesn’t provide good customer service, they will find another company to do business with. While product quality will always be important, the majority of today’s customers (more than six out of 10) insist on an experience that meets their expectations.
• In 2024, 85% of customers are willing to go out of their way to do business with a company that has better service. That’s up from 76% from last year. Customers are willing to put forth more effort, spend more time, drive farther, spend more money, and put up with other inconveniences if they know the company or brand will provide a better experience than a company that may be more convenient.
• In 2024, 94% of customers felt convenience was important. Convenience is the highest-rated experience customers want. But as you can see in the other finding convenience with bad customer service still puts you at a high risk of losing customers.
• In 2024, the top three reasons customers come back to a company are helpful, knowledgeable, and friendly employees. Customer service isn't complicated. Is it that difficult to be friendly and helpful? Being knowledgeable should be a function of training and education. These three reasons are why we return to a company.

Are you the company that customers go out of their way to do business with?

If you aren't taking the time to respond to your customers you can almost guarantee they will go elsewhere. And if you think that when a customer returns you have a customer for life you are wrong. You and your team must be consistent every time a customer chooses to spend their money with you. We have seen this many times when we have returned to a restaurant because everything was great the first time and then the second time things were much different.

This is why it's so important that you have your business evaluated at least once or twice a month. This doesn't mean using a friend to give you detailed information, this means hiring a professional that will give you a customer's perspective good or bad. You can only fix mistakes that you know about.

Let us at The Hart Experience educate you and your team in the areas that need improvement. Our customized reports evaluate all areas of your business so you can start a training program for the employees who might need a refresher course.

Contact Debbie Hart at 602.717.3271 or [email protected]

PS. If you would like some great Customer Experience Tips check out my weekly article here on LinkedIn.