Outcomes of Bad Customer Service
Customer service is without a doubt, one of the most important things in business. To provide excellent customer service is one of the hardest, but most valuable things for your company.
Even if you have an exceptional product, your brand voice and business numbers will be drowned by the negative effect of poor customer service. It is easy to replace poor marketing with excellent customer service, but it is not easy (almost impossible) to do the opposite – replace poor customer service with excellent marketing.
Mistakes happen, every business comes across small mistakes. But some are considered universally unacceptable like unprofessional and impersonal interactions. Companies who deliver poor customer service traits will face with negative outcomes and consequences, which will slowly affect brand integrity.
According to a report published by WalkerInfo, customer experience will surpass price and product as the key brand differentiator by 2020. It just implies that customer experience will be a decisive factor for many customers. Remembering this, it is significant for businesses to understand how a poor service experience would affect the company.
The Purpose of Customer Service
Simply put, the purpose is to satisfy the needs of your customers to the point they become loyal and want to continue doing business with your company. By combining a great product with superior service you will win the heart of a customer who will not only remain loyal but also recommend your product or service to others.
5 Outcomes of Bad Customer Service
Let’s see what are the outcomes of bad customer care practices and how it can affect your brand reputation.
Bad News is spreading fast
When customers are having a bad experience, they are most likely telling their friends, family, and colleagues about it. Researches proved that half of the angry customers will spread the bad word about their discontent, while others prove that 32% of customers will simply not do business with a company where they have experienced bad customer service.
We live in a time when brands are being held more accountable for their actions than ever before. Twenty years ago, if you paid for a product you weren’t satisfied with, the best you could hope for was that you would eventually receive a refund if you sent a complaint letter. You could tell a few friends about it, and perhaps they’d tell their friends, but that was about it.
Picture 1. Bad customer service outcome
Leads Stop Converting
You should be aware that conversions are killed by bad customer service. How many times have you reached out to a business and never heard back? How frustrated have you been?
Customer service departments are already associated with a negative stigma, so why not surprise people with a positive experience? Great customer service upfront leaves an awesome first impression and gets leads excited about doing business with your company.
Your Customer Lifetime Value Drops
Researches have shown that it is more expensive to acquire new customers than to keep your current. That is one of the main reasons why it is so important to provide great customer care. 9 out of 10 customers say they’re willing to pay more to ensure a good customer experience. While bad customer service can demolish your average customer lifetime value, putting more strain on your marketing plans to attract more customers, good customer service can actually save these relationships.
Your Best Employees Are Leaving
Bad customer care has negative side effects in every aspect of a business. Besides losing customers, you are also risking to lose your employees.
When your company is going through a bad phase, your greatest employees have no choice, but to pick the mess done by bad customer care agents which leads to more stress. Dealing with numerous angry customers pushes the stress level and pressure to a point where companies lose the best employees.
Also, do not forget that losing employees create more costs due to the increased need for new employees to be recruited, hired and trained.
You Enter a Profit-Sucking Cycle
Bad customer care can also create a downward spiral for profits. First, your reputation gets damaged and you start losing new sales, then even your loyal customers start to leave. You’re forced to decide at this point, are you cutting costs and trying to get rid of it, or are you doubling on marketing to attract new customers? If you reduce costs to compensate for lack of income, you still need to improve your customer service by training or recruitment, which requires more resources.
On the other hand, attempting to outsource your poor marketing customer service may attract new customers, but the problem only gets worse with scale.
The 3R Rule: Responsibility, Resolution, Respect
If you don’t want your business to continue losing customers, and if you have a will to raise your brand’s reputation, then you should follow the 3R Rule of Customer Service.
Whether a mistake was your company made was small, you still need to take responsibility and provide a fast resolution. Don’t argue with your customers and try to prove them they are wrong for something it is not true, but rather offer efficient customer service and win customer’s loyalty. Little things such as discounts, some presents or even a small sorry note will still keep your customers of turning back to another company.
To leave a customer’s complaint unresolved – easiest way to lose them. You should always offer an instant resolution to any complaint or issue that the customer has. If you aren’t sure how to fix a problem at this moment, it’s okay to let the customer know you will get in touch with them after collecting all the information needed to fix the problem. By keeping in touch with them and informing them, you will earn your customers’ respect and commitment.
“Treat your customer, as you want to be treated as a customer.” – Catherine Pulsifer
75% of respondents said that they were not likely to do business with the organization again if they felt disrespected by an employee or the organization. And you do not want that for your business. By showing empathy and understanding you show your customers you care, and that’s what is important. And more importantly, put your resources into training your customer support and you will have positive results.
Picture 2. Customer service research
The outcomes that we have included in this article are great examples of what not to do, so try not to follow their footsteps. Rather, go out of your way to surprise customers so that you become known as the best people to do business with. And don’t forget that great customer service creates loyal customers for life – customers who are willing to refer your business to family, friends, and colleagues. As a result, service advertising is increased, and better results are achieved by the company.
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