Customer service statistics reveal that a good customer experience can make or break a business. Businesses lose $75 billion annually due to poor customer service. Bad customer service leads to consumers switching vendors and nearly half will do so after only one negative experience. Your consumers will be more likely to choose your brand if you have a friendly and helpful customer service rep.
Millennials are a top customer base
According to customer service statistics, Millennials are willing to pay 21% more for a brand that provides excellent service. These customers have very different expectations than the rest of us, so it is important that customer service evolves to meet these needs. 63% of millennials contact customer service online. 43% prefer to reach out to companies via their smartphones. It is essential to tailor your customer service strategy to meet their needs.
Millennials are more concerned about customer service than any other generation. According to customer service statistics, millennials are willing to pay more for excellent customer service than the Gen X and Baby Boomers. They like to feel that businesses care about them. It's important to remember that only 4 percent of millennials have complaints about customer service. 96% are content to ignore it. However, those who are unhappy about a service experience will tell at least nine people about it, and 13% will even tell more than 20 people.
Poor customer service costs businesses $75 billion a year
A recent NewVoiceMedia report found that poor customer service costs businesses $75Billion annually. This is an increase of $13 billion from the previous year, and it is time for organizations to take action. Research suggests that poor customer service is caused by internal problems, changing consumer expectations and other issues. Whatever the reason, every year organizations lose money due to substandard service.
Research shows that customers recall bad experiences much more than positive ones. A single bad experience can turn off a customer. Even if the customer doesn't complain directly to a company, they can tell up to 16 people about their dissatisfaction, which could lead to them switching to other companies. In addition, 51 percent of customers will not do business with a company again after a negative interaction. As a result, organizations need to invest in prevention strategies to avoid this costly mistake.
Second most used communication channel is social media
Social media can be used to provide customer service. It allows businesses reach customers instantly, answer quick questions, and share interesting news first. Additionally, it allows businesses to reach a global audience. It is essential to be able to use social media effectively to make sure your customers are satisfied.
Telephone calls were traditionally the fastest way to resolve customer concerns. It also beat the postal services. However, social media has shifted customer service to a more personal level. Using real-time communication can make a difference in gaining customers and increasing sales. Companies that are able to respond quickly to social media users can enjoy a 3 to 20% increase in sales per interaction.
Millennials are most sensitive to poor customer service
According to a recent study, millennials are more forgiving of bad customer service than older generations. 39% would return to a business for bad customer service, according to a recent study. However, only 23% older consumers would want to go through the same experience again. If millennials are to keep their businesses, they must improve customer service.
While the millennial generation is a huge target market, it has its flaws. The millennial generation is well-known for their sensitive reactions to poor customer service. Many companies are working to reach this generation.