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Why companies cannot afford to have bad customer service

In this day and age, companies cannot afford to have bad customer service. Today, customers are informed and know their rights. We are living in the era of consumerism whereby, the ‘Customer is King’. Every organisation therefore should be working towards giving the best service possible to their customers. Knowing this, there is no reason to let your organisation lag behind and give bad customer service. Here are reasons why your company cannot afford to have bad customer service:

The word spreads quickly

In this era of social media, word of bad service gets around very quickly. A rude comment to a customer or unpleasant behaviour towards a customer will end up in a video or a screenshot. Within no time, thousands of people will have seen this and campaigns could be started on how to boycott your products or services. Though social media has numerous benefits to an organisation’s customer service, it has the ability to ruin the day of any business. The choice is yours; will you use social media to serve your customers well, or will social media be used to talk about your terrible customer service?

Customers have options

Thanks to the Internet, your competitor is only a click away and it barely costs a customer anything to switch to your competitor. Today, customers are well informed and they have variety of options on where to get their products and services easily. This means that no customer will feel the need to stick with your bad customer service when they know they will be treated better elsewhere. On the brighter side, your company can be the preferred option by offering a level of service that will make customers want to come back.

Unhappy customers are very expensive

An unhappy customer can be very expensive. Beside social media, word of mouth is another way that customer will spread information about ill treatment by a customer service agent. Unhappy customers are likely to talk to their friends about their experiences than happy customers are. Further, this means your organisation loses a repeat customer and we all know loyal customers are worth a lot. A survey by American Express showed that 78% of customers have abandoned their transactions due to poor customer service. Every customer lost translates to loss of revenue and it takes much more financial investment to acquire a new customer, then to keep an existing one.

It is therefore very important that every organisation trains its employees on handling customer complaints. Creating a training manual and regular training of customer service personnel gives them confidence to handle customers and prevent negative customer care incidences from occurring. One may perceive training as expensive, but bad customer service will cost you much more in terms of customers, money and reputation.

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