Ouch! How Competitors Get Your Customer Within 24 Hours

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Every e-commerce retailer, service provider and information publisher is replaceable by the competition and consumers are acting upon their options quickly if they receive a poor customer service experience.

In a survey of 1,200 U.S. consumers, [24]7, a provider of customer engagement solutions, found that 47 percent of customers will leave for a competitor within one day if they experience poor customer service (see chart below). What constitutes as poor customer service? A variety of situations, of course, but one common frustration across generations and industries lies in automated phone service. Sixty-four percent of consumers begin their customer service journey on a website, and when issues are not resolved, 32 percent pick up the phone.

Over a third (37 percent) of consumers who ended a business relationship from poor customer service did so because they were frustrated with the interactive voice response (IVR) - using voice or keypad commands.

It's not just the phone where customer service is lacking. Ninety-five percent of customers use three or more channels or devices to resolve a single customer service issue, but as well reported most brands are unable to track those interactions across channels causing frustration for the consumer. Today this isn't good enough, as consumers should be able to start and finish a conversation with a company anyway and anywhere they want and know that their information won't be lost as they go from channel to channel.

Similarly, many consumers are willing to share location and device awareness information with companies if it means a better customer experience, but baby boomers are the biggest exception. Baby boomers are the most cautious of all generations surveyed in that 37 percent of them do not want to share any information with companies, even if it means the service will not be as good.


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2 comments

LaureanV 02-19-2016 11:08 AM

If I give up my location in order to received better customer service... don't auto-route me to Tier 1 support in a non-english speaking country!!!!

Gainesville Apartments 04-12-2016 7:06 PM

Totally agree about the value of good customer service. We lease upscale student apartments and own 25 apartment complexes. As part of the move out process last year, we started providing outgoing tenants with a move out questionnaire, so that we could find out why we lose clients to our competitors. Customer service was the #2 reason that tenants moved out of one apartment complex in Gainesville and into a different one just down the road. The #1 reason was graduating and moving out of the city.

Just goes to show-- you're kidding yourself if you aren't continually working on improving your customer service!

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