When customers go through what they consider to be major customer service failures, the company providing the poor experience pays a heavy price. According to a recent study by SDL:
- 64% of customers stop recommending the company, start looking for alternative brands, or actively disparage the company via word of mouth, social or other means.
- Only 10% spend more with the company the following year, saying they have no choice due to being locked into a contract or having no alternative.
- The company has only a 20% chance of winning back customers who defect. Those they manage to retain are 59% less loyal.
- In the year following the customer experience failure, the company will lose an average 65% of the revenue previously contributed to those customers.
Eeesh. So what are the top reasons cited for customer experience failures?
- Long waits
- Agents not empowered to help
- Agents who are not sufficiently knowledgeable
- Inaccurate or conflicting information
Of course, sound management avoids all of these problems. And mitigates the consequences. (For more on the study, see SDL.)