Customer service, it’s arguably the most important element for your business to get right. If a customer has a bad experience it can hugely damage the overall perception and value of your brand. This is due to the ability for customers to post reviews online, generate viral negative feedback and spread word-of-mouth.

Good Customer Service Vs. Bad Customer Service

Good customer service is creating an experience for your customer that leaves them feeling valued. The brand should make them feel like they are special, that they have been listened to and that their expectations are met and exceeded. Conversely, a bad customer experience can mean they are not getting enough attention or they are overwhelmed with the brand being too pushy. If a customer’s wants and desires are not being attended to, it is likely they will have a bad customer service experience.

Ultimately, it is more important than ever to focus on customer service and creating positive customer service experiences. This is because if things go wrong and someone has a negative experience, the word will get out about your brand. In fact, brands lose 70% of potential customers from bad reviews left on Google. You don’t want to let a couple of bad experiences finish your brand.

During the customer’s buying journey, it is normal for customers to encounter small mistakes however this does not constitute a bad customer service experience. Here are three terrible effects of bad customer service and how they can cost your business.

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  1. Leads Don’t Convert

 A bad customer service experience kills total conversion rates. The experience a customer has with your brand can directly effect whether or not a customer will make a purchase. Up to 78% of consumers have bailed on a purchase that they intended to make because of a poor customer service experience. This means that there are areas of the business that are not informative enough, the brand is not helpful or there is something lacking for the customer. The more your customer’s bail on a purchase, the fewer conversions you have. The fewer conversions, the less profit and the likelihood your business will begin to fail.

 

  1. A Damaged Reputation

Your brand’s reputation is one of the most valuable aspects of your business – something you continually want to maintain control of. Unfortunately, in this digital age, the reputation of your business can be one of the first things to take a hit when your customers have a bad customer service experience. When a bad customer service experience occurs, customer’s are very quick to write negative reviews online. They also vent their frustrations on social media and via word-of-mouth. A huge 88% of people are influenced by an online review when making a buying decision meaning that the more negative reviews you have, the more you are damaging your brand’s reputation. When you add this all up, it can have a huge impact on your overall sales and the level of enquiry or leads you receive.

 

  1. Reduced Profits

Bad customer service has a very negative impact on overall business profits. First, your leads start to not convert, then your reputation gets damaged and your new and loyal customers start to leave. In fact, Australian companies lose an estimated $8 billion dollars annually as a result of poor customer service according to a study undertaken by NewVoiceMedia. However, if you get customer service right, it can significantly increase profits. Over 77% of people indicate that good customer service is a major influence on loyalty and 76% would recommend a company to others after a positive experience.

With a huge $8 billion of revenue passing between companies, research strongly reinforces just how much influence customers have on a businesses overall profits.

Providing a great customer service experience is a critical differentiator between a brand succeeding and failing. If your brand invests in providing an engaging and personalised customer experience, it will help your brand succeed in retaining and securing customers for your business.

In order to provide the best possible customer service experience, you need to know your customers. This can be learnt from collecting feedback through the Jago software. Jago is a quick and easy way to get instant feedback from your customers allowing you to understand areas for improvement and growth. Book a demo today.