MONEY INTO YOUR SHOP:
Customer service, when done well, has just as much impact as a strong sales funnel or excellent marketing efforts. Not only that, but if your customer service team does a fantastic job, it may help boost your other teams’ effectiveness.

It’s easier to make a sale when your customers feel supported, and word-of-mouth marketing after an extraordinary experience is one of the best pitches on the market.

Not convinced? Here are a few customer service statistics that serve to emphasize just how paramount excellent customer service can be for your bottom line:

1. 68% of consumers say they are willing to pay more for products and services from a brand known to offer good customer service experiences. (HubSpot)
2. For 86%, good customer service turns one-time clients into long-term brand champions. (Khoros)
3. An NPS Promoter score has a customer lifetime value that's 600%-1,400% higher than a Detractor. (Bain & Company)
4. 89% of consumers are more likely to make another purchase after a positive customer service experience. (Salesforce Research)
5. If the company’s customer service is excellent, 78% of consumers will do business with them again after a mistake. (Salesforce Research)
6. Increasing customer retention rates by just 5% can increase profits by between 25% and 95%. (Bain and Company)
7. Nearly three out of five consumers report that good customer service is vital for them to feel loyalty toward a brand. (Zendesk)
8. A good customer service experience heavily impacts recommendations. Consumers who rate a company’s service as “good” are 38% more likely to recommend that company. (Qualtrics XM Institute)
9. Investing in new customers is between 5 and 25 times more expensive than retaining existing ones. (Invesp)
10. 83% of customers agree that they feel more loyal to brands that respond to and resolve their complaints. (Khoros)
11. Businesses can grow revenues between 4% and 8% above their market when prioritizing better customer service experiences. (Bain & Company)
12. 72% of companies believe they can use analytics reports to improve the customer experience. (Deloitte)
    
    

MONEY LOST TO YOUR SHOP:
Everyone knows that poor customer service is terrible for business. However, just how bad is poor customer service for your company? You may consider today’s breed of customers impatient and demanding. However, customers drive your business, and making their experiences with your company as great as possible should be your focus. Learn more about how bad customer service can affect your company by reading the stats below.

Now that we know how important good customer service can be for your business, it’s time to get a handle on the impact it can have when things go badly.

1. 1/3 of consumers would consider switching companies after a single instance of bad customer service. (American Express, 2017)
2. 58% of US customers have left a brand because of poor service. (Microsoft, 2019)
3. 84% of consumers consider customer service to be a key factor when deciding whether to make a purchase or not. (Zendesk, 2019)
4. 63% of American consumers have switched brands due to bad customer service. (Microsoft, 2019)
5. It takes 12 positive customer experiences to make up for one negative experience. (Ruby Newell-Legner’s "Understanding Customers")
6. 65% of customers said they have changed to a different brand because of a poor experience. (Khoros)
7. After more than one bad experience, around 80% of consumers say they would rather do business with a competitor. (Zendesk)
8. Only one in five consumers will forgive a bad experience at a company whose customer service they rate as “very poor.” (Nearly 80% will forgive a bad experience if they rate the service team as “very good.”) (Qualtrics XM Institute)
9. 78% of customers have backed out of a purchase due to a poor customer experience. (Glance)

Look at that last one! More than three-quarters of customers surveyed have backed out of a purchase because the customer service wasn’t as good as expected. If you showed that metric to your sales team, they would advocate for your customer service team to get as many resources as they need.

If you have questions or would like to chat about measuring customer satisfaction or the ASK LISTEN RETAIN program?  Book a meeting here!