The Price of Poor Customer Service

Many companies spend far too little on customer service. An infographic from ClickSoftware shows why this is dangerous. Companies in the USA lose approximately 83 billion US dollars annually, because customers change providers or cancel their purchase. The reasons:

• For 63 percent of customers, the service experienced is more important than the price when they are deciding for, or against, repurchase.
• 88 percent would definitely change if they were dissatisfied with the service
• 55 percent would pay more for better service

Social media plays a central role here – it brings retailers new challenges because customers expect faster and more competent feedback, especially on Twitter.

Interestingly, websites are felt to be a more comfortable service-channel than on-site service or chat.