Customer service is the most important aspect of your business as it directly affects the revenue growth. Exceptional customer service can compensate for poor marketing skills, but it’s very difficult to replace a bad customer service with effective marketing.
Bad customer service usually consists of the following factors:
- Long wait times and response times
- Poor attention to detail
- Company representatives with lack of experience and knowledge
- Unprofessional interactions
Companies who are guilty of these bad customer service traits often face negative consequences. Many of such consequences are often difficult to overcome and can lead to the company’s failure. Let’s take a look at what a bad customer service can do to a business.
Company’s reputation is damaged:
In today’s era, with the internet, your reputation is the first thing to take a hit when you provide a bad customer service. Customers today are quick to leave critical reviews online when they have a bad experience with any company. They also tend to vent their frustrations on social media for their friends, family, colleagues, and the entire world to see. According to a research, 95% of respondents said they usually tell at least one other person about a bad customer experience with some company, while 54% said they let 5 other people know about it. Moreover, 88% of respondents considered an online review while making a buying decision. Such instances often lead to a major decrease in WOM marketing further leading to a decline in sales.
It causes frustration in leads:
A bad customer service causes frustration in leads. Instances where leads have to wait for replies for too long, are kept on hold for a long time or are not provided the desired resolution to their queries because of lack of knowledge on customer reps part, literally piss them off. On the other hand, a great customer service leaves a remarkable first impression. It further convinces the leads and gets them excited about doing business with your company.
Customer lifetime value declines:
As per a survey report, 9 out of 10 customers say they would willingly pay more to ensure a good customer experience and as much as 70% would carry on a business with you if you resolve a query! Therefore, a bad customer service can destroy your average customer lifetime value.
There is a risk of losing the exceptional employees:
When your company is guilty of a bad customer service, your employees are the first ones to suffer. All your best employees are forced to pick up the slack for bad employees. This leads to burnout and discontentment from those people.
A bad customer service creates a downward spiral of profits:
A bad customer service causes loss of new sales. If you cut costs to make up for the lack of revenue, you still have to improve your customer service. This requires training or recruitment, which calls for the use of more resources, worsening the situation further.
All these consequences are no less than a nightmare for a business but they may turn out to be real if the customer service is not taken crucial care of!