[Infographic] 12 Ways Customer Service Affects Your Bottom Line

Today, a business’ bottom line is directly tied to its ability to satisfy consumers’ rising expectations for accessible, high-quality, and immediate service. Half-baked efforts to improve customer service will put your company on a fast track to failure.

The customer experience is directly tied to loyalty

In the age of digital connectedness, “word of mouth” is exponentially more powerful than ever before. Consumers are privy to share their experiences — especially bad ones — with their large networks of friends and colleagues on social and professional networks.

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The effect of consumers’ experiences on customer retention and brand image is greater than ever before. In a competitive landscape, customers won’t think twice about abandoning your service or product in favor of another company vying for their business.

Here are 12 sets of statistics on the customer experience

1. Companies throw away billions of dollars per year due to poor customer service.

2. Companies that fail to satisfy their customers will face higher rates of customer churn.

3. Interpersonal interactions have a significant effect on the customer experience.

4. Most companies are unable to consistently achieve high customer satisfaction.  

5. Customers want their experience to be simple and fast. 

6. A frustrating experience on the phone can detract substantially from customer satisfaction.

7. Customer service improvement efforts should focus on improving communication and efficacy.

8. News of a bad experience with a company will travel.

9. Many people share stories about negative experiences on the internet.

10. Excellent service leads to better customer retention and lower churn.

11. The majority of executives understand the importance of providing excellent customer service.

12. But companies continue to confront challenges on the road to improvement.

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There are many factors that prevent companies from dedicating adequate time and energy to improving customer service. They could be undergoing rapid growth. Perhaps their customer service representatives lack training. Or maybe the customer experience has never been a significant priority.

Now, it’s impossible to ignore the power of the customer. The numbers are in — without excellent customer service, churn rates rise and revenue falls. As companies set strategies for the near- and long-term, it’s imperative that enhancing the customer experience is one of them.

Sources:

• 2014 Global Customer Service Barometer, American Express
• Serial Switchers Strike Again: How the Billion Dollar Customer Service Problem Prevails, New Voice Media
• Creating a Seamless Customer Experience, The Economist Intelligence Unit