Now more than ever, customers are demanding top-notch service. In an age when there are options upon options for any service they could require, customers are taking full advantage of that fact: when they aren’t satisfied with the service they receive at a company, they simply bring their business to another. After a poor service experience, 71% end their relationship with that company, and most of them—61%—choose a competitor to go to.
Customer service is a key component of the customer experience, having a disproportionate impact on a customer’s loyalty. A company that offers differentiated service will retain loyal customers. But what does differentiated service entail? According to a study by Bain, 80% of companies feel that they offer superior customer service—but only eight percent of customers agree.
Common customer service practices, such as service calls, can seem to exemplify quality customer service to the company that provides it. In fact, service calls are nearly four times as likely to decrease loyalty as to increase loyalty, and as this shows, companies are often in the dark when it comes to what customers themselves want from their customer service.
How to Combat This?
When it comes to loyalty, it’s been shown that reducing customer effort and offering a seamless experience works best. Designs and options that are intuitive for a customer to navigate encourage customers to return to the companies that provide the kind of service they can understand and connect to.
BT’s research found that their customers who rated their service experience as “easy” showed a 40% reduction in their propensity to churn. Improving your customer service can show dramatic increases in growth. Increasing customer loyalty by just five percent leads to a profitability growth of 25-90% making superior customer service but important to a company’s growth and profitability.
So, how can you make it easier for your customers? I’ll address this in an upcoming webinar. I’ll be joining Talkdesk on Wednesday, August 19 for a webinar that will dive into these questions. You can register here.