Posts Tagged customer service
Customer Service Is Crucial To Repeat Business and Profitability
According to the American Express Global Customer Service Barometer, 61% of Americans report that quality customer service is more important to them in today’s economic environment, and will spend an average of 9% more when they believe a company provides excellent service.
However, only 37% of Americans believe that companies have increased their focus on providing quality service:
* 27% feel businesses have not changed their attitude toward customer service.
* 28% say that companies are now paying less attention to good service.
Posted by eBrand Media Research Department in Customer Centric, Guerrilla Marketing on October 7th, 2010
Its more profitable to keep a customer happy! (Poor customer service costs $83 billion annually)
Genesys, with research firm Greenfield Online and Datamonitor/Ovum analysts, measuring the cost of poor customer service in the U.S., found that enterprises in the U.S. lose an estimated $83 billion each year due to defections and abandoned purchases as a direct result of a poor experience. Nearly two-thirds of consumers said they had ended a relationship due to customer service alone. The survey participants said that when they end a relationship, 61% of the time they take their business to a competitor.
The $83 billion overall cost of poor customer service in the us came from:
* Business abandoned and lost to entire industry, $32.4 billion
* Customer churn and defections within industry, $50.6 billion
Furthermore, the problem has become more complicated as customer interactions move beyond the contact center. According to numerous industry researchers, more than 90% of all transactions initiated over the Web are abandoned before any transaction is completed. And virtually no researchers have accurately measured the value of customer service across communication channels, says the report.
Across 16 key economies (countries), the total loss for poor customer service in US dollars is $338 billion annually or the average value of each customer relationship lost to a competitor or abandoned of $243. In addition, 86.4% of consumers would welcome extended offers or help during self-service transactions.
The biggest losers at the industry level are in cable & satellite TV, financial services, and consumer products. Nearly one quarter of consumers in the US said they abandoned a cable/satellite company in the past year, resulting in over $12 billion in lost revenue. And financial services companies suffered more than $10 billion of losses alone. Industries that were previously safe from competition, such as utilities in deregulated regions, are also feeling the pain, with $1.75 billion in lost revenue.
Posted by eBrand Media Research Department in Customer Centric on February 18th, 2010