What does providing customer service cost?


Hello to all. I hope everyone is well.

I was sitting in my car (taking a much needed nap. You do know naps are a good way to recharge. I like to call it pre-sleep). Anyway, sorry for the digression.  I was in my car thinking about customer service and all the things I have been seeing and  learning about customer service (#custserv).  I learn a great deal from seeing tweets from customer service great Shep Hyken (I like to call him the customer service whisperer) as well as many other customer service advocates. I began thinking, “What does customer service cost to provide?” Here are my thoughts and you let me know what you think.

Here are just a few things that I discovered in my research.

Businesses are losing $62 billion per year through poor customer service. That’s up $20 billion since 2013, just three years ago! – https://www.forbes.com/sites/shephyken/2016/08/27/bad-customer-service-costs-businesses-billions-of-dollars/#162fb7715152

78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience.Source: American Express Survey, 2011

A typical business hears from 4% of it’s dissatisfied customers.

On average, loyal customers are worth up to 10 times as much as their first purchase.Source: White House Office of Consumer Affairs

It takes 12 positive experiences to make up for one unresolved negative experience.
Source: “Understanding Customers” by Ruby Newell-Legner

It is 6-7 times more expensive to acquire a new customer than it is to keep a current one. Source: White House Office of Consumer Affairs

When customers share their story, they’re not just sharing pain points. They’re actually teaching you how to make your product, service, and business better. Your customer service organization should be designed to efficiently communicate those issues.” – Kristin Smaby, “Being Human is Good Business”

In the last year, 67% of customers have hung up the phone out of frustration they could not talk to a real person.

The list goes on. There is a lot of information out about how to deliver customer customer and what can happen if you don’t.  This particular blog post was inspired from a song that came into my head and it’s just the title – Don’t Cost You Nothing by Ashford & Simpson  While the lyrics of the song does not necessary relate to customer service. The title is says a lot when you think about what customer service costs.  Let’s see if I can illustrate and also make a few points.

Customer service don’t cost you nothing if you greet with a smile at every customer encounter.

Customer service don’t cost you nothing if you put yourself in the customers shoes when addressing their concerns.

Customer service don’t cost you nothing if make the customer feeling like the priority and not the problem.

Customer service don’t cost you nothing if your respect the customers time and resolve problems in a timely effective way.

Customer service don’t cost you nothing if you are proactive and not reactive to a customer’s needs.

Customer service don’t cost you nothing if treat your internal customers how you do when you are trying to win your external customers.

I think you see what I am saying. The art of customer service does not cost a thing if you relate to the people in a kind, caring, honest and personable way. We as customers are emotional feeling folks and at any point in time The provider of customer service has to have a way to relate to those customer feeling. This can be done in a negative or positive way. If customer service is what you are into. Then it doesn’t cost you anything to smile and show that customer that you really do care that they are receiving an exceptional experience.

If you like what you have read and you think someone else would benefit from reading too. Please share. #customerserviceisreal

Author: dbeaumont16

Known for delivering outstanding customer support to clients, David Beaumont is a knowledge seeker and results driven visionary who builds relationships with clients and peers by aiding the end-user through training and development tasks. David is a qualified support professional, HDI Certified and holds a Bachelor of Science in Business Administration, Finance from The Ohio State University. He has more than 15 years of experience in customer service, EDI and client support. You can follow him on Twitter @dbeaumont266 or feel free to comment on his blog: https://customerserviceisreal.wordpress.com. You can also connect with him via LinkedIn: https://www.linkedin.com/in/david-beaumont-9299b46/

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