The Steep Cost of Poor Customer Service
It’s no secret that poor customer service negatively affects a business’s revenue. Nonetheless, some companies still choose to ignore the negative reviews and refuse to invest in hiring better employees and implementing more thorough training regimens. Though training coaches, better equipment, and other necessary tools may seem expensive, you’ll realize their price tag is nothing compared to the cost of not having them. Consider these facts if you don’t agree.
Poor Customer Service Costs you Current and Future Customers
You can’t disrespect a loyal customer by rewarding their patronage with poor customer service. For even the most forgiving of customers, it takes only a few bad experiences for them to pack up and leave. As it turns out, loyal customers have a tendency to spend more than the average consumer on brands they favor – plus, they’re responsible for countless referrals. Is that something you’re willing to sacrifice just because your business’s phone systems are unreliable or you’re too afraid to fire that one long-time yet unruly employee?
Then, there are the potential customers that you’re alienating. When loyal customers leave, they take their referrals with them. On top of that, people who experience bad customer service are much more likely to write a review than people who experience good customer service. Therefore, when potential customers go researching your company, they’ll see the negative feedback and think again.
Poor Customer Service Costs you your Reputation
Disgruntled customers have the tendency to spread the word about their bad experiences, as we’ve mentioned above. You can read more here about customers that took public action aimed at hurting the companies they felt wronged by. As the old saying goes, “satisfied customers tell three friends, dissatisfied customers tell 3,000.” Thus, it’s important to remember that it takes a long time to build a good reputation but just a few seconds to tear it down. You don’t want your customers to immediately associate your business with rude representatives, unreturned e-mails, and not standing by your product.
Poor Customer Service Costs You Employees
Most employees don’t want to be associated with a business with a bad rap. Plus, if the overall environment of the workplace is a negative one, it’s going to rub off on them. An employee who’s good at customer service will not want to stay with a company that doesn’t value it, which is a vicious cycle.
Ultimately, Poor Customer Service Results in Loss of Profits
Bad customer experiences and a bad reputation are a recipe for fewer sales. The fewer sales you make, the less chance your business has of surviving. It’s important to invest in the training, improve your communication channels, track employee productivity through linking your hosted VoIP phone system with the provider’s monitoring software, reward good behavior, and stand by your product if you want happy customers, good reviews, brand loyalty, and more profit.