Here’s why you can’t ignore customer service in your business strategy

- May 23, 2019 2 MIN READ
  • 90 per cent of customers said a bad buying experience would cause them to reconsider their buying behaviour
  • 42 per cent of customers would not go back to a store where they had received bad service
  • Customers are four times more likely to remember a bad service experience

Customers that fail to deliver quality customer service will see the impact in their bottom line according to research from Zendesk.

The Quantifying the Business Impact of Customer Service in Australia Report 2019, has shown just how big an impact bad customer service can have on a business. Nine out of ten customers surveyed said a bad experience would cause them to consider changing their buying behaviour. While 42 per cent said a negative experience would cause them to stop buying from a company altogether.

The report clearly shows businesses that fail to act on reports of poor customer service face declining customer loyalty.

Today’s customers rate a bad experience as anything from waiting too long, to not even having the issue resolved at all. Whereas, a good customer service experience was described as receiving fast, effective responses or not having to explain issues multiple times.

Amy Foo, Managing Director, Zendesk ANZ said businesses are always competing to offer the latest and greatest products or services, yet the quality of customer service is not always a consideration.

Foo suggests great customer service cornerstone of any successful business.

“What can separate competing businesses is how they engage with their customers. Providing positive experiences can mean the difference between poor, short-term and positive, long-standing customer relationships. This inevitably has a significant impact on sales and revenue in the long-term,” says Foo.

The impact of bad customer experience goes far beyond short-term sales. Bad experiences can also have a long-term impact on a customers’ perception and relationship with a business.

Foo says research has shown customers are more than four times as likely to remember unfavourable experiences from years ago than favourable experiences. Poor customer service can lead to reputational damage.

Providing timely and effective customer service will ensure companies avoid leaving an indelible mark that is harmful to their reputation.

“What this data suggests is that businesses can no longer afford to overlook the importance of delivering consistent excellence in customer service,” Foo said.

While customers do have high expectations, they are very clear about what it is that makes a customer service experience positive.

“Addressing the challenge to provide a flawless customer experience is achievable, however businesses need to look closely at the service they are delivering to their customers. Practical ways to meet and exceed customer expectations are easier than you think. This could involve streamlining your internal processes for easier communication, offering more self-service options, or simply increasing your channels to make sure your business is across all digital and traditional communication platforms,” said Foo.


Popular in the network