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7 Simplified Facts About the Cost of Bad Customer Service

It’s a fact! Customer service is very important. Seems pretty simple right? Well then why are there still so many instances of bad customer service being reported every day? Are people in customer service just that unhappy with their jobs? Have managers and supervisors become complacent? There could be about a million reasons why bad customer service still exists, but if we take a look at these numbers a few more people will likely pay attention, and start trying to make things right.

So seriously improving your customer experience can improve your sales by 78%? That is an incredible number right? Make you stand up and pay attention doesn’t it?

That’s a pretty nice number! So, if on the first round your client spends $150 then creating loyalty through an exceptional customer experience could mean $1500 in your pocket? Now what if we take a look at the lifetime value of that same client being with you for say, 10 years? Now that same client is worth $15,000. Makes sense to invest in what you have doesn’t it?

Making up for a customer service mistake is so much harder than never making the mistake in the first place. There are times when you can totally turn an ugly customer experience into a good one simply by handling it the right way. Well what is the right way you ask?

  • Listen
  • Empathize
  • Admit
  • Repair
  • Negotiate

Listen to the client, and find out what the root of the problem is.

Empathize with the problem, so that you can put yourself in their shoes.

Admit that a mistake was made.

Repair the problem.

Negotiate a happy outcome.

LEARN from your customer, and your mistakes.

Sometimes it is like pulling teeth to get people to say something nice. In other instances folks will be singing from the roof tops. When it comes to a negative experience, everyone will hear about it. People like to share their pain, especially when it comes to a business relationship. So you may have heard “don’t sweat the small stuff” once or twice? Well when it comes to customer service, the small stuff becomes utterly important.

We all want to make the best use of our marketing dollars, otherwise we may as well just set a torch to it all. So why wouldn’t you also invest in your customers, to ensure you are winning their loyalty and converting them to lifers? It just makes sense.

You really need to listen to your clients. All of them. Each and every complaint should be taken seriously and discussed among your team. If something got mucked up and a client raises their voice about it, then chances are it is not the first time that it has happened. Correcting the issue to make sure that it doesn’t happen in the future is a key element here. Using your clients feedback is like a goldmine, they give you the best insights into the overall health of your company.

So the takeaway here is that you need to do this for yourself and your company. Providing an exceptional customer experience will ensure that your business will thrive and grow. Not only that, but it really reduces stress when you don’t have to constantly worry about client complaints.