Outcomes of Bad Customer Service
⏱ Reading Time: 11 minutes
Customer service is undoubtedly one of the most important things in every business. And one of the toughest, but most valuable things for your company is to provide excellent customer service.
Even if you have an exceptional product, your brand voice and business numbers will be drowned by the negative effect of poor customer service. Replacing bad marketing with excellent customer service is simple, but doing the contrary is not so simple. It is imperative for a business to listen to the voice of the customer.
Customer experience will surpass price and product as the main brand differentiator by 2020, according to a report released by WalkerInfo. It only means that for many customers, customer experience will be a crucial factor.
Remembering this, it is significant for businesses to understand how a poor service experience would affect the company.
What is Bad Customer Service?
Bad customer service is simply when customer face with negative service, or with the service that is not respectful. Plus when customers have to explain their concerns to multiple agents because the company doesn’t have a well trained and organized team.
And when customers face with bad experience, they will get angry. Latest ClickFoc study looked closely at the impacts of bad customer service experience.
While 52 percent of unhappy clients do not suggest a brand to family and friends, 32 percent will completely stop doing business with the company that offered a bad customer experience.
The purpose of customer service
The purpose of customer service is to satisfy the needs of your customers to the point they become loyal and want to continue doing business with your company. By mixing a great product with superior service, you win a customer’s heart. Any they not only remain loyal but also recommend your product or service to their colleagues and friends, which can be a huge benefit for the company.
How Bad Customer Service Impacts Customer Experience?
Picture 1. CX Pyramid: A framework for powerful experience by Gartner
5 Worst Side Effects of Poor Customer Service
Let’s see what the outcomes of poor customer care practices are and how it can affect your brand reputation.
1. The bad news is spreading fast
When customers have a terrible experience, they are most likely telling their friends, family, and colleagues about it. Research has shown that 50% of angry customers spread the bad word about their dissatisfaction. Other research shows that 32% of customer are not going to do a business with a company where they have had a 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 say to their friends, but that was about it.
Nowadays, if a customer has a bad experience, they will post about it online, and if they do, their creative expression of anger can go viral and seriously damage your brand’s overall value.
2. Leads stop converting
You should be aware that conversions are killed by lousy customer service. How many times have you reached out to a business and never heard back? How frustrated have you been?
A negative stigma is already associated with customer service departments, so why not surprise people with a positive experience? Excellent customer service upfront leaves a remarkable first impression and gets excited about doing business with your company.
Picture 2. Bad customer service outcome
3. Your customer lifetime value drops
Researches have shown that it is more expensive to acquire new customers than to keep the current ones. That is one of the main reason why it is so essential to provide great customer care.
9 out of 10 customers say they’re willing to pay more to ensure an excellent customer experience. Yes, poor customer service can demolish your average customer lifetime value. But, by putting focus on marketing plans to attract more customers, the connections you made can be saved by a great customer service.
4. Your best employees are leaving
In every aspect of a company, bad customer care has adverse side effects. You risk losing your staff as well as losing customers.
When your company is going through a bad phase, your most fabulous employees have no choice but picking 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.
5. You enter a profit-sucking cycle
Poor customer care can also generate a downward spiral for profits.
First, your reputation gets harmed and you begin to lose new customers and then even your faithful customers begin to quit. 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 side, trying to outsource your bad customer service may attract new customers, but the problem only gets worse with scale.
Examples of Bad Customer Service
Picture 3. Social media customer feedback on service
Putting customers on hold too long
No one likes to be on hold, and for customer with time-sensitive issues that can be a very frustrating situation.
Some studies show that after being on hold for just 40 seconds, 15 percent of customers are hanging up.
Providing helpless chat support
It is essential for online chat agents to sound more like a human while having a conversation with the customer. Every client can easily misunderstand messages in the chat, so agents need to work hard to provide clear and comprehensible responses. Agents should be able to define all the steps made on their side and use multimedia such as images and video to explain confusing problems.
Delay customer needs
The brands are very focused on customer needs, but sometimes, they are not responding to them promptly from different reasons. Reasons can be various, from the lack of customer service reps to business plans that are outstanding from customer needs.
Having in mind that customer is using your service or product and that he had addressed his needs or feedback through various channels is a great opportunity to listen to them and try to improve your brand loyalty.
How to Fix Bad Customer Service?
The best way to prevent negative buyer experiences is to build employee training programs to educate them with the proper way to interact with new customers and retaining them.
An essential rule in customer service is, “The customer is always right.” When a client is offended, the best thing to do is an immediate sincere apology and an offer to make amends. By offering a discount, substitute product, or a rain check for products out of inventory satisfies the customer and provides them a positive brand image.
Managers should notice employees who are rude, indifferent, or somehow offensive to customers. Depending on the level of resentment, corrective action might include a strict warning, being moved to another office, a pay decrease, or ultimately release.
Of important significance is a well-trained customer service agent who understands that any communication is a chance to impact a potential customer. The distinction between excellent and bad customer service can be a positive talk, smile, and a warm welcome.
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 your business made a mistake that was small, you still need to accept responsibility and resolve mistake quickly. 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. Any complaint or problem that the customer has should always be solved instantly.
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.
Most importantly, put your resources into training your customer support and you’re going to get successful outcomes.
Picture 4. Customer service research
What Can You Learn From Bad Customer Service?
The outcomes that we have included in this article are great examples of what not to do, so try not to follow their footsteps. Instead, 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 excellent customer service creates loyal customers for life – customers who are willing to refer your business to family, friends, and colleagues. As a consequence, service advertising will improve and the business will achieve better outcomes.
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