The Importance of Customer Service

As technology puts business reviews at consumers’ fingertips, so does customer service become a greater priority for business owners. Yet, while an American Express Survey showed seven in ten Americans are willing to spend more for businesses with greater customer service, many business owners are making the mistake of using automated systems rather than call center services to manage inbound calls. This distances consumers from business representatives, creating a chokepoint of service and leaving consumers frustrated. But companies who earn a reputation for excellent service do not go unrewarded. A report by the White House Office of Consumer Affairs says happy customers tell about 4 to 6 people about their experience, meaning that simple human to human service can bring in business that frustrating automated systems cannot. Most importantly, knowledgeable customer service representatives, whether in-store or at a call center services provider, maintains customer commitment; allows business to proceed smoothly; and ensures upsell opportunities are prioritized. In the following infographic you will learn the good, the bad, and ugly about American customer service and how much money businesses are losing due to poor customer experiences.
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THE IMPORTANT OF CUSTOMER SERVICE THE COST OF POOR CUSTOMER SERVICE A total loss of $338.5 Billion per year It takes 12 positive service experiences to make up for one negative experience One average U.S. consumers are willing to spend 13% more at a business that provides good customer service A loyal customer is worth up to 10x as much as their first purchase 78% of consumers have bailed on an intended purchase because of poor customer service WHAT CONSUMERS WANT Biggest Influence on Company Loyalty 43% Product Quality 38% Customer Service 15% Price 4% Brand Name Why Consumers Commit to a Brand 33% Reputation 36% Personalized Experiences 55% Information Accessibility 73% Friendly Customer Service AUTOMATED MESSAGES THAT DRIVE AMERICANS CRAZY: "We're unable to answer your question. Please call xxx-xxx-xxxx to speak to a representative from xxx team." -"What? Another automated system!!" 27% "We're sorry, but we're experiencing unusually heavy call volumes. You can hold or try back at another time." - "Hello...? Hello...? Hello...?" 27% "Your call is important to us. Please continue to hold." - "A three hour wait time?!!" 26% 75% say they would do business with a company based on positive call center experiences 89% say they don't mind being transferred to someone who can answer their query more quickly or efficiently WHAT DRIVES CONSUMERS CRAZY? 52% are frustrated by having to repeat information they've already provided 40% say they want human service 76% feel companies are pushing them to use self-service systems 50% say they want a new communication channel 67% are frustrated by long hold times 2013 CUSTOMER SERVICE HALL OF SHAME 1. Bank of America 2. AOL 3. Comcast 4. Time Warner Cable 5. Dish Network 6. Sprint 7. Wells Fargo 8. JPMorgan Chase 9. Citigroup 10. Capitol One A SIMPLE RESPONSE When an organization responded to a customer's negative comment: 46% of consumers were pleased 22% posted a positive comment about the organization Why did the Consumer Leave? 60% of Americans believe businesses haven't made an effort to improve customer service 43% of Americans say companies are helpful but do not do anything extra to keep their business 22% of American's think companies take their business for granted
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