Exploring the cost of bad customer experiences

NewVoiceMedia recently uncovered new research findings that US businesses are losing $41 billion of revenue each year as customers switch due to poor service. And with a third of consumers leveraging their online presence following an inadequate experience, the true cost could be far greater, since this doesn’t account for the significant impact of negative word of mouth.

Consumers are heading online more than ever to read about others’ experiences before choosing a product or supplier, and such public complaints can result in lost business and considerable damage to a company’s reputation. Consumers are very aware of this, and a number of respondents explained that they turn to social media because the scale of people seeing the complaint will make the company take notice.

Customer complaints certainly can’t be kept quiet in the digital age. The study showed that 25-34 year-olds are the quickest to take advantage of social media (60%), and a significant number even consider it to be the most effective means of speedy issue resolution. These figures will only increase as the younger generation matures.

However, the significance consumers place on excellent service presents opportunities as well as threats, as organizations can boost their business by getting it right, even turning complainants into advocates. The research showed that following a positive experience, 70% would be more loyal and 69% would recommend a company to others. Offering quick responses to complaints and taking steps to ensure all customers receive personalized and engaging experiences every time, through every channel, will help this transformation.

The vendor’s technology enables businesses to route callers to the most appropriate agents first time, where they are presented with detailed information about the caller, including social media data, and can prioritize calls from influential customers. This could include those who are prominent on social media.

NewVoiceMedia and Shep Hyken are hosting a webinar today to review the critical findings from the research, explore why over $41 billion of revenue is lost each year due to poor customer experiences, and how this can be prevented.

Hyken is a customer service expert, presenter, coach and author, who has helped organisations of all sizes develop a customer service culture and loyalty mind-set. His articles have been read in hundreds of publications and he is the New York Times and Wall Street Journal bestselling author of Amaze Every Customer Every Time, The Amazement Revolution, The Cult of the Customer, Moments of Magic, and The Loyal Customer.

Register for the webinar

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