ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Bad Customer Service: The Single Most Important Reason Why Customers Leave

Updated on July 10, 2014
jpcmc profile image

I'm a dad, husband, and Christian first. The rest are just life's add-ons: an educator, administrator, learner, & development professional.

Source

Roster of Best and worst companies when it comes to customer service

Did you contribute to the top reason why customers leave? Or are you one of those unfortunate souls that had to contend with repulsive service? Or are you both? Don’t worry nobody’s judging – we all wish!

The truth is the customer-employee relationship is wrought with a plethora of encounters both good and bad. But everyone always hopes for the best. Unfortunately, this is not the case. Recent studies show that customers leave for a myriad of reasons. But the single most important reason why customers leave is poor customer experience.

By now, everybody has been bombarded with words like customer satisfaction, excellent customer service and some other permutation and synonyms. But it all boils down to one thing: Are the customers happy? So ask yourself, when was the last time you were dumbfounded for a service well done? Yes, it’s been a while, I know.

Startling Stats

Harris Interactive said that as much as 86% of customers leave due to pathetic customer service. Of course it was not stated in those words, but it fairly captures the essence. RightNow Technologies puts the number at 73% while the Rockefeller Corporation pegged it at 68%. OK, it’s obvious that the numbers differ and a variance of more than 10 is big. But all these studies point to one important fact: CUSTOMER SERVICE IS IMPORTANT TO RETAIN CLIENTS. As a corollary to this, if clients leave, business fumbles.

With all the hype on customer service one would think companies – big or small, would actually take heed. In 2009 Peppers and Rogers Group said that 81% of companies providing excellent customer service outperformed their competitors. That’s how important customer service is in the industry. However, it’s so sad to even contemplate that a huge chunk of one’s business leave because of how they treat their clients. The impact of this is without question grave!

Apart from the lost business, dissatisfied clients are the most reliable source to dissuade others from patronizing a product or service. I’m not talking about huge groups and non-profit organizations rallying against a product or process. But rather, these are the average consumers on the street willing to spread the word of their disdain. Just to put this in perspective, the White House Consumer Affairs said that 13% of unhappy customers will usually tell 20 other people about their dismal experience. Imagine, 20 more people learning about your customer service fail. That’s bad for business, just wait until it gets online. You’ll surely be in deep sshhhh…shattered trouble.

Breaking it down

RightNow Technologies even went further by breaking down why customers leave. Out of the consumers who packed their bags, 73% stop doing business due to rude staff, 51% due to incompetent staff and 55% said their issues were not resolved in a timely manner. Looking at these statistics, one can’t help notice that the reasons for leaving can be remedied with trainings and some tweaks on the customer service process.

In fact the study also showed that 92% are willing to go back if they simply received an apology from the company, given a discount and if they see improvements in customer service. Come on, consumers are giving companies a chance to redeem themselves! So what do they do? They get automated response systems in the guise of better customer service (and cutting down costs). Here’s the reality of things nobody wants to talk to a pre-recorded response when dong business. USA Today even said that 90% of financial service consumers did not like Interactive Voice Response systems.

Just ask yourself when was the last time you were prompted to press a particular number just to reach a department. After which you press another series of numbers to get to the person you want to talk to. After all the effort you’re put on hold only to get someone else telling you the person is “unavailable at the moment”. Let’s face it the effort is not worth it! It irritates me just writing about it.

Furthermore, Penn-Olsen said that on the average people are put on hold for 57 seconds. Lucky for these people! Some wait for as long as 30 minutes where I come from. Yes, we do wait. What’s incongruent is that companies spend more than 90% of their marketing budget to get people to call but spend only 6% to train their people to handle these calls. People will stay on the line if they hear something relevant to them. 68% of callers will do this! However, 34% of customers who hanged up will NEVER CALL AGAIN. That’s the scary truth of it.

From hated selling strategies to actual pathetic customer service processes, consumers always find faults in the system. More than just a ploy to put down a company, it must be seen as an opportunity to improve. The company may not put customer service as a priority, but you can start building excellent customer relationships yourself. It may go unnoticed in your organization but the rewards will truly be profound.

Comments

    0 of 8192 characters used
    Post Comment

    • jpcmc profile imageAUTHOR

      JP Carlos 

      5 years ago from Quezon CIty, Phlippines

      Hello sweetie1,

      Many companies are like that sweetie1. It is sad that customers are not given proper customer service. Infractions can still be reported. I hope there are consumer groups in your country that can help clients.

    • sweetie1 profile image

      sweetie1 

      5 years ago from India

      In our country, customer relationship is last thing in mind of sellers and they are all like how to rob the customer. Once a thing is sold then they don't care and many a time small traders deliberately pack a defective piece. of course simply because consumer courts takes years to punish them.. Best way is to not visit that shop or store again.

    • jpcmc profile imageAUTHOR

      JP Carlos 

      6 years ago from Quezon CIty, Phlippines

      Hello Dennis,

      Customer service is a big hit when it comes to businesses today. But what is surprising is that many companies continue to give dismal customer service. Thanks for the vote up and share.

    • Dennis AuBuchon profile image

      Dennis AuBuchon 

      6 years ago

      great hub. This is an important aspect of customer service. I voted up, tweeted and pinned it.

    • jpcmc profile imageAUTHOR

      JP Carlos 

      6 years ago from Quezon CIty, Phlippines

      Hello again H.Agosto,

      Every business must look into their clients stats. From demographics to those who choose the competition. The more you know about your customers the better you can provide service to them. Good luck in this endeavor. it's no easy task, but it has to be done.

    • profile image

      H.Agosto 

      6 years ago

      Interesting stats. My company needs to look into why our clients leave. We need to stop theit or at least control it.

    • jpcmc profile imageAUTHOR

      JP Carlos 

      6 years ago from Quezon CIty, Phlippines

      Hello Lisas-thoughts101,

      Without excellent customer service clients will find other companies to give them what they want. Unfortunately, many companies fail to see this. During my customer service trainings, I always tell my participants that if they do not provide excellent customer service someone else will. Thanks for dropping by and sharing your insights. I do hope you company realize your efforts and make the needed changes. A pay raise or promotion would be nice. :)

    • Lisas-thoughts101 profile image

      Lisas-thoughts101 

      6 years ago from Northeast Texas

      I work for a company that does not value good customer service. I still do my best to provide great service and you can just tell how much the customers appreciate it. It completely changes their attitudes. The company has shrunk rather than grown, however. I believe that is directly related to the lack of good cs.

      Lisa

    • jpcmc profile imageAUTHOR

      JP Carlos 

      6 years ago from Quezon CIty, Phlippines

      Greeting customers is a key factor in keeping clients. A mere good morning can change the buying mood of a client. There are numerous strategies on how to greet properly but it boils down to one thing - greet them properly and promptly.

    • ThriftyBoomer profile image

      ThriftyBoomer 

      6 years ago

      Great hub. Customers should be greeted within 30 seconds of entering the store or a department within the store. Even if the salesperson is busy, simply acknowledging the customer's presence is more likely to encourage her to wait for you.

    • the girls profile image

      Theresa Ventu 

      6 years ago from Los Angeles, California

      As the saying goes, it takes many hours to win a single customer and it will only take you a second to lose one. The business thrives because of profits you derive from your customers. Nice work and hubs kabayan. Voted up!

    • jpcmc profile imageAUTHOR

      JP Carlos 

      7 years ago from Quezon CIty, Phlippines

      Hi Arthur, good to see you here. Thanks for the compliment

      Hello vocalcoach, Many companies fall short in terms of providing excellent client experience. Smiling at customers isn't enough to be called customer service. :) Thanks for the rate up.

    • vocalcoach profile image

      Audrey Hunt 

      7 years ago from Idyllwild Ca.

      This is good! Customer service is #1 as far as I'm concerned. It seems like this is not a priority with most businesses anymore and that is really sad. Rated up!

    • profile image

      Arthur King 

      7 years ago

      Great stats. You've got numbers to back your points.

    • jpcmc profile imageAUTHOR

      JP Carlos 

      7 years ago from Quezon CIty, Phlippines

      I understand what you mean annaw, Consumers pay and we want to get what is rightfully ours. Moreover, why spend on something that is not worth your time, money and effort? Companies should realize this. Here's a rule I share in my seminars: If you don't provide excellent customer service someone else will. Thanks for reading the hub and for your comment.

    • annaw profile image

      annaw 

      7 years ago from North Texas

      Keeping customers is about building relationships with them. I do not hestitate to take my dollars elswhere when I am not getting the type customer service/care I deserve. Companies and their managers need to realize they do not hold all the cards, and there are others out there who do have it right and will give me what I need. Great Hub

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)