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5 Customer Service Myths

WOULD EVERYONE JUST START CUSTOMER 5 SERVICE COMPLAINING ALREADY? When it comes to receiving complaints from customers, many companies are under the assumption that less complaining is better for business. But, if you MYTHS look at the research, the reverse is true. In today's competitive market, SECHET TOP CONFIDENTIAL a smart company would do well to encourage its customers to complain whenever they have an issue. Otherwise they are operating in the dark. Here are 5 popularly held myths about customer service when it comes to complaints, debunked: SECR ΜΥΤΗ 1: MOST CUSTOMERS COMPLAIN WHEN THEY ENCOUNTER A PROBLEM Reality: Less than 25% of customers complain when they have an issue 4-30% of those who complain only complain 1x 70-90% of customers don't even complain Only 1-4% of those complaints reach Why is it important to seek out complaints? Instead of complaining, customers will tell an average of 3 people bad things about your business. TIP: managers ΜΥΤΗ 2: IF WE RECEIVE MORE COMPLAINTS, WE HAVE TO SPEND MORE MONEY TO KEEP OUR CUSTOMERS HAPPY Reality: 80% of customer service calls are no-brainers to solve and are resolved within minutes A clear, believable explanation often works better to retain loyalty than offering a cash refund or compensation TIP: For any customer worth more than $20 a year, it's always cheaper to answer their needs and keep them happy, than to lose their business. MΥΤΗ 3: FEWER CALLS MEANS WEʼRE GIVING BETTER SERVICE AND BETTER EXPERIENCE TO OUR CUSTOMERS Reality: Fewer complaints can mean a large pool of silent unhappy customers Fewer calls can mean lower revenue and profits Unless you interact more often with customers to find out the real numbers of problems, you aren't able to respond and make improvements to your products and services. TIP: MΥΤΗ 4: MORE CALLS MEANS LOWER PROFITS Reality: The ROl for every additional complaint handled and resolved is at least 100% or more 75% 120% - If people don't call and complain, there's a 75% chance of losing A 5% 90% - their revenue increase in customer retention 60% - 50% increases profits up 30% - to 125% When people do call and complain, there's a 50% average chance of retaining their loyalty 0% - MΥΤΗ 5: IT'S BETTER TO INVEST IN MARKETING AND ADVERTISING THAN CUSTOMER SERVICE Reality: It costs at least 5x as much to win a new customer as it does to keep an old one 80% of your company's future revenue will come from just 20% of your existing customers NEW EXISTING %24 $$$ TIP: The best way to grow your business is to keep the customers you already have, by embracing what they have to say. TO LEARN MORE ABOUT HOW TO HANDLE COMPLAINTS TO GROW YOUR BUSINESS AND PROFITS READ HOW TO CREATE A CUSTOMER SERVICE PROCESS THAT ENHANCES YOUR BOTTOM LINE EBOOK AT www.SALESFORCE.COM/FORM/PDF/CUSTOMER-SERVICE-PROCESS-BOTTOM-LINE.JSP salesförce PROFITS CALLS %24 PROFITS (USTOMER SERVICE MYTHS

5 Customer Service Myths

shared by Lemonly on Aug 23
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Our latest infographic with our friends at Salesforce illustrates five customer service myths and their realities in visual form. Who knew?

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