The Price of Poor Customer Service

July 20, 2017 John Alarcon

Almost Half of Consumers Won’t Hesitate to Jump Ship if Brands Don’t Deliver an Excellent Customer Service Experience

Nearly one in two customers won’t hesitate to abandon a brand if a company can’t provide them with assistance in critical customer service channels, according to a new report from the Chief Marketing Officer (CMO) Council.

Forty seven percent of North American and European consumers surveyed said they would stop doing business with a brand if they reached a certain level of frustration when reaching out to a company for help.

The CMO Council study revealed consumers’ low tolerance for poor customer service and several other insights relevant to today’s omnichannel approach to engaging and supporting customers.

The researchers found that customers aren’t expecting perfection in every communication channel (phone, email, social media, web chat, forums, etc.), but do count on excellence in a narrow range of channels, including web sites, email, and the availability of a phone number that will reach a knowledgeable agent immediately.

What frustrates customers? The study found that the most common frustrations are price increases on products that don’t seem to result in added values or improvements. The next most frustration (36 percent of respondents) is sensing that the company does not value them as a customer.

And not only will nearly half of customers walk away from a brand after a poor customer service experience, 32 percent said they would email the company to complain, and 29 percent would tell all family and friends.

“Every customer takes a different path to their purchase, and our responsibility as brand leaders is to ensure that we are ready to greet them, not as strangers, but with empathy, value and context they have earned as our customer,” said Jamie Anderson, Chief Marketing Officer of SAP Hybris, which partnered with the CMO Council to conduct the study. “What this research proves is that we risk our own business success if we continue to leave our customer’s voice out of our experience strategies. If we fail to deliver value, we fail to close that deal because our customer has left to do business with a competitor that has taken the time to respond, react and deliver relevance regardless of channel or location.”

The study uncovered other key points regarding attitudes of today’s consumers:

  • 70 percent are willing to share some personal data with brands; 22 percent said they would only share information if it is used to deliver better and more relevant offers.
  • Customers are willing to share data if it delivers value. Value for consumers is defined as: something that saves money (77 percent), saves time (49 percent) or makes life easier (47 percent).
  • One in four consumers say they feel brands are doing a good job of delivering personalized and relevant customer service across critical channels. 38 percent say brands are “almost there” when it comes to good customer service across critical channels, and 22 percent say brands are delivering a good experience, but only across digital channels.

Are you seeking an outsourced contact center services partner that can meet your needs for excellent customer service across all channels? Reach out to one of our contact center experts today.

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