25 worst customer service mistakes and what they cost your business
TRANSCRIPT
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by Helprace
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25 Worst Customer Service Mistakes and What They Cost Your Business
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Bad service is the main reason people stop doingbusiness with companies
non-personal, automated service
wait times are way too long
staff aren’t trained properly
customers feel unappreciated
over 60% of customers will move to a competitor due to bad service
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Bad customer service experiences spread much quicker than great ones
95+5+t95%
of customers share their bad experience with others
1 angry customer
20 detractors
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Customer expectations are getting higher, yet many companies struggle to keep up
U.S. brands continute to lose $ 84 million / yeardue to poor customer service
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Customers don’t feel like they owe companies a second chance
of customers avoid businesses fora number of years after a bad experience40+60+V
58+42+V40%
refuse to deal with the company after one bad experience59%
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Gen X clients are next to leave you
High-paying customers leave first
Price-sensitive customers leave next
B2B customers are last to leave
Bad service puts your most valuable customers at risk of leaving
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91+9+XSaying the wrong thing in difficult situations can
alienate customers
service reps use the customer’s name only 20% of the time
70% of purchases are based on how the customer feels
25% of customers switch to a competitor due to rude staff
negative words like “can’t”, “won’t” or “don’t” reduces customer effort by 18.5%
Avoiding
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Customer expectations aren’t being exceeded on a regular basis
talk to competent service representatives
recieve personalized service
reach a service representative quickly
Customers want to:
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Not reducing the amount of work customers must do to get issue resolved
91+9+A91% of unhappy customers will not willingly purchase again
91+9+A70% will buy again if their issue is resolved to their liking
87+13+A 87%of customers share good experience s with others
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What the company believes is not what the customer percieves
yet only 1% feel that companies are consistently delivering great service
65% are frustrated by inconsistent experiences across channels
80% of companies believe they offer great service
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Customers don’t like it when you don’tfollow up with them
Over half of all customers that are disappointed will not complain (but quietly leave you)
70% of those that lost $1 to $5 will buy again
54% of those that lost over $100 will buy again
46% of those that lost $1 to $5 will buy again
19% of those that lost over $100 will buy again
If complaints are not resolved: If complaints are resolved:
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Constantly putting customers “on hold”drives them to switch
29 percent switch becayse they’re annoyed by incompetent staff
32 percent switch because they’re fed up with speaking to multiple agents
25 percent switch because they’re tired of being put on hold
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56+44+V
Inadequately training support agentsin communication skills
Employers don’t do enough to drive culture change and communication initiatives
Businesses see only 20% of culture change initiatives materialize
56% of customers have to re-explain or exert high effort to resolve an issue
20+80+V
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80+20+RKeeping promises isn’t high on the agenda
among many businesses
Over 80% of customers don’t feel like brands are keeping their promises ...and that’s enough to make them switch!
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50+50+RService reps aren’t being human or
empathetic enough
Of all improvements, 50% believe companies need to focus on “more human service”
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80+20+RBusinesses are ignoring recurring issues
or not addressing them
Over 80% say that companies don’t have the context of their last conversation
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91+9+RSocial media questions aren’t being answered
quickly enough
Over 91% of questions on social media aren’t answered on time or at all
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Companies aren’t tracking their conversation history
Over 80% say that companies don’t have the context of their last conversation
80+20+R
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Negative reviews drive away potential customers
News of bad customer service reaches twice as many people as news of good service
= =
24% of Americans post reviews or comments about products and customer service experiences
84% will not purchase from a business with bad reviews
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Unhappy customers would rather keep silent than reach out to you
24% of customers wait and see if the company would take action or show initiative to solve an issue
complaining isn’t worth their time or effort
25+75+t they believe complaining won’t do any good; no one will listen
they don’t know how or where to complain
Customers don’t complain because...
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Customers don’t like to repeat themselves(but they often have to)
66% of customers reportedly had to ask for the
same information twice
25% of customers are being transferred from agent to agent
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While human service is important, speed is also important in customer service
Valuing their timeis the most important thing a company can do to make customers happy
40%
of customers expect responses within six hours yet...
only 36% of vendors respond that quickly
How long it takes for vendors to respond:
36%
21%
18%
7%
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Frustrated customers don’t come back(they are frustrated!)
40% avoid the vendor for 3+ years after a bad experience
91% of frustrated customers will never come back
...when you resolve their complaints, they do come back!56+44+V 91+9+R
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Multichannel support still lags behind in many organizations
40% say a better mobile experience could have kept them from switching
65% are frustrated by inconsistent experiences across channels
62% have to repeatedly contact a company to resolve an issue
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Only 10% of merchants are able to offer stellar customer service!
75% of customers believe it takes too long to reach a live agent
63% of companies expect to spend more on the customer experience
75+25+R 63+37+R
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Listening to customer feedback helps you make the product they want
1 suggestion usually has 36+
silent supporters
Direct Feedback using email, feedback forms, brand communities
Indirect Feedbackleft on a review site,comments on a news blog
Inferred Feedbackcollected via analytics, interactions, heatmaps