Fox Point Programs, a trading name for Rockwood Programs, Inc.

Fox Point Programs, a trading name for Rockwood Programs, Inc.

The consequences of poor customer service

41808473_SWe all know that customer service is an important part of any business and plays a large role in creating loyal customers. A company with great customer service is more likely to have repeat customers. And 70% of Americans in a recent survey said that they are willing to spend more money with companies that they feel provide excellent customer service.

Likewise, the effects of bad customer service can be significant. Consider:

78% of consumers have cancelled a transaction or did not make an intended purchase because of a poor customer service experience. It’s bad enough that you’ve lost a sale, but the residual effects of one poor experience can add up to a much greater loss.

91% of unhappy customers will not willingly do business with you again. All it takes is one bad experience to ruin a relationship with even the most loyal customers, and it’s not very easy to win them back.

It takes 12 positive experiences to make up for one unresolved negative experience. It is possible to regain favor with an unhappy customer, but that initial experience can never truly be erased.

News of bad customer experiences reach more than twice as many people than that of positive experiences. On average, Americans will tell nine people about a good experience with a business and tell 16 people about a poor one. However, if they voice their criticism on social media, that audience can grow exponentially.

Every week, more than 1 million people view tweets about customer service. 80% of those tweets are negative or express criticism. And that’s just one social media platform. Imagine how much larger that audience becomes if a customer posts about a bad experience on multiple social media sites.


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