Customer Dis-service: Only 32% Report Positive Experiences
Results from our recent Huffington Post survey indicate a serious problem with customer service: low levels of satisfaction and feeling that customers are treated poorly because companies think of them as “Hostages, unable to go elsewhere.”
I will present survey results in two blog postings. In this post, I will present key findings.
In the next post, I will share important findings regarding Customer Service Outsourcing and 9 Tips for improving your Customer Service Call Center.
Only 32% report that their Customer Service Call Center experience was positive. The “customer is king” mentality sure doesn’t seem prevalent for the other 68% of survey participants: 47% had a negative experience and 21% were neutral.
These 3 research quotes say it all:
“I daydream about suing them. From the product to the reps, they just don’t care about their customers.” “If possible, I take my business elsewhere when I have negative experiences.” “Customer service was rude, suggested I had done something wrong when I followed their manual. I showed them the relevant text in the manual. They said, ‘manuals are always wrong.’”
The following 6 quotes illustrate people’s feelings that companies treat them as “hostages” because these customers either have no other choices or can switch only with difficulty:
“If I wasn’t on a fixed income, I would pay the fees and break my package contract with Comcast … horrible.” “I still give them my business, but only out of necessity.” “I’m stuck with their service.” “AT&T is the only game in town; I just have to deal with them.” “If I had a choice other than Comcast, I would take it.” “I would be done with most of these companies if I had any choice in the matter.”
Let’s look at the impact of these negative experiences on 3 critical business metrics. Decreased likelihood to buy from the company: 64%. Creates a negative perception of the company: 85%. Decreased likelihood to recommend the company: 77%.
Based on the quotes above, it appears that more than 64% would report a decreased likelihood to purchase from the company if they were not “hostages” with few or no alternatives.
There were astounding benefits to providing a positive Customer Service Call Center experience. An increased likelihood to buy from that company: 94%. A positive perception of that company: 94%. Increased likelihood to recommend that company to others: 86%.
Given the significant impact of a positive experience, it is incomprehensible that companies are not investing in appropriate training and resources for their Customer Service Call Centers.
All of our experience in improving the performance of Customer Service Call Centers indicates significant improvements in revenue (for case studies, click here).
Given that it’s 7 to 10 times more expensive to acquire new customers versus selling existing customers, companies should view customer service centers as profit centers. As long as they continue to view them as cost centers, they will look for ways to cut costs.
In a blinding glimpse of the obvious (BGO), companies should realize that this is the most expensive and self-defeating way to “save money.”
In my next blog post, I will share people’s views regarding the impact of outsourcing – both overseas and in the U.S. I will also provide 9 tips for improving customer service call centers.
Please share your comments and experiences regarding these findings and your experiences with Customer Service Call Centers.
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Thanks for all your feedback regarding your customer service experiences.
What do you think should be done to get companies to improve their customer service? I would love to hear your recommendations.
What is baffling about the poor customer service is that it costs companies money! Since it is 7 to 10 times more expensive to acquire a new customer versus selling an existing customer, it is in their financial self-interest to keep current customers happy and buying!
Please share your thoughts.
Two things that I learned as a little kid, in a business family (not in the car biz), seem to have been forgotten today.
1. Sales sells the first car, service sells the rest.
2. The customer is always right.
I think if they remembered those 2 things in customer service, we'd all be in much better shape. There will always be bad customer service reps, and there will always be bad customers, but companies have forgotten those 2 basic tenets - and their sales will eventually suffer for it.
The biggest problem I have getting customer service on the phone is the automated phone systems. Often times common questions can be answered with these, but to to talk to a person you have to jump through so many menus it can take 5 minutes, and then you get to a wrong person.
I've worked in Customer Service for years, both on the selling floor and on the phone. What I have learned is that the nicer you are the better the service. I have been yelled and cussed at without cause many times. I have seen a customer spit and throw a shoe at one of my co-workers. We are humans who think, feel and react. We cannot always be "on" when someone is attacking you personally for something you had no hand in. We have to hold our tongues all the time because no matter what you say - anything we say would be worse. But when we come across that customer who smiles or speaks to you with respect, we give them more than they ask for. I've experienced this as a customer myself. Yes, there are some service people that are truly bad. My advice is to take your business elsewhere or complain to a manager. Don't ask the offending party for the manager, you will probably get misdirected. Don't yell at ANYONE because the person you are talking may be the decision maker. Don't piss them off or they may not help you out of spite. Don't assume we are all alike. I've met customers who are ready to fight before I even open my mouth or as they open the door. Be honest about who you are and how you treat people. Some customers are nasty- period.
I agree with the above comment by allonfla, same experience here. I have noticed though a
huge difference between European and American Customers. In Europe the "return department"
is almost not visible or so small one could miss it. So many customers here buy and then due to
shortage of money bring the item back to the store, especially after XMAS. I have heard customers
say that it is the thought that counts and then bring back purchased items. Also, when one buys
very cheap things yet they want maximum benefit, that just does not work. Use common sense,
that if you weigh 300 lbs you don't buy pressed wood chairs or I have always said, mattresses
need to come with a weight limit. It all goes back to education.
ATandT- in all its forms- gets my vote for the WORST and most incompetent service in America. I recently moved from san francisco to LA and wanted a cell phone number with a LA- area code. You would swear I was the first person in America to make such a request. I spent hours on-line, on the phone and eventually in line at a store (one sunday alone 6 hours!) before they got it right. Each person was more incompetent than the next and with a matching tone of patronization to go with it- except the last person who solved the problem who texted me the next day to say he was sorry for the drama and that he was quiting his job because the culture was impossible to work in. And each time on the phone i asked where the call center was and I am sad to report that each time the call center was in America so no lou-dobbs-fodder-cheap- off- shore labor problem here! this is genuine made in america arrogance and incompetence. they try and get you to use their website but it is useless as it cant deal with any problems and their staff are completely lacking any basic problem solving skills or authority.
Yup the new ATT- if this is your world delivered and america commerce in action, then we are in for a very sad future.
The last time I had a service request, because both of my phone lines had quit, it took them 5 days to get here. I tried to put in an online service request, but I had to get an online code first. So... I tried to get the online code. Wanna guess how they were going to deliver this online code to me? So I could request service online? They were going to phone it to me... --sigh--
Retail is the worst. I feel like a cranky old lady, and I'm not that old. I guess if you are paid minimum wage, and your supervisor is in his/her twenties, and neither of you have had any customer service training, I guess this is the result. What I hate most is the dull stare. When you question something, or something goes wrong, you just get the dull stare. I don't think I've heard the words "sorry" in years. I guess its always my fault. So many times I have not purchased something because the person standing before me is a complete idiot. And don't think to ask to talk to the supervisor, because they are little better. Anyone with half a brain could run these establishments better and make more money. What I don't understand is why companies don't follow the bottom line and understand that their profits are leaking out of these peoples' hands. If they paid them a decent wage and gave them some decent training, maybe providing benefits, maybe there wouldn't be such turnover and huge loss of sales. OK, let me say it again, why would they rather lose their business than treat customers better? I am confused -- and irritated (cranky).
I don't think "training" would help most folks much in customer service. I think a persons ability to be good at customer service has mostly to do with their individual personality. Like a waiter, for example, one person could have been a waiter for years and still be terrible at it, while another person could be great at it on the first or second day. I just think the people who would make the best customer service workers end up getting much better jobs because of their superior social skills. Some folks, in contrast, are much better at it because their personalities are naturally subservient.
Picture this - you are the only one on the selling floor because Cindy calls out - again. And she will get away with it - again. You had your review yesterday and all you got was a 25 cent raise - (yes it's true-in Retail your raise is 10 cent - $1.00. the $1.00 is reserved for those who got promoted or opened a lot of credit card accounts). A 25-cent raise after coming in on time, everyday and not calling out. While you are stocking the shelves - by yourself- a customer requests to be rung up. Her card gets declined and all of a sudden it's your fault. You swiped it wrong or the machine is broken. While you are trying to fix her problem, customers behind her are getting mad-sucking their teeth, rolling their eyes- and will eventually take it out on you. You call your manager for help but she is not answering and no other employee is due to come in for another hour. All this while you have your own problems at home - AND NO, there are some problems too big to be left at home. Day in and Day out, these service people have to deal with these things and while they shoul learn to hide their frustration it is completely impossible for them to ALWAYS be as nice as a character at Disney World.
Trying to get good customer service in America today is not going to happen. It stems from companies treating thier employees badly. The resentment then trickles over into how the employee treats the customer.
Customer service is almost non-existent. Most retail gets their manhours dictated by the customer's spending (dollars). The more you sell the more manhours one gets. And due to being
always short, a long training period is not possible. Have you not heard the word "PRODUCTIVITY?" I always foresaw that one of these days we just unlock the front doors
and expect people to throw in their money, now that would be a 100% productivity standard, would it not? It will come down to this. I already see department stores with only one employee for the
whole floor. Profits, so the CEOs can get big bonuses and the stock holders are satisfied.
It took me five years to get Verizon to stop printing my unlisted home phone number under a business's name in the Paper Yellow Pages. No one in the house had ever been affiliated with the business. It just appeared under the business's name in the phone book a year after we got the number. Even Verizon's ad sales people started calling me.
Their customer service people were a complete nightmare. One of them even told me that there was no such phone book for my area. I was called stupid, accused of being the business owner and trying to get out of paying Verizon to put it in the Yellow Pages, way too many things to put in a post here.
It went on forfive years and finally I wrote to the Verizon CEO. Four months after that, they finally removed it from the Yellow Pages. The funniest part of the story is that the business was listed correctly in the online yellow pages the entire time. It was in a completely different city.
I will never buy a Verizon product of any kind. I always let people know of the trouble I had with them. They couldn't pay me enough money to deal with them ever again.
We need more competition; more small business who put customer care number one. That has been gone for many years and poor treatment of customers is short sighted for business owners. I pay more but go to where the service is excellent, and there's not that many businesses that give that service. I think people are ready for personal customer service; they will be lifelong customers or clients if they are handled with respect and dignity.
I am a prisoner of Comcast. If I wasn't on a fixed income, I would walk away from the contract. That being said, all of products/services that I use and buy, are reviewed by me up front before I purchase anything anymore. If the products or services are bad, if I have other options I will go elsewhere. I always share when I am asked or there is an opening in a conversation with friends,rels,etc; my scathing review of whatever it is and keep doing it. Letters and calls may work butI think word of mouth is absolutely the strongest weapon. I don't get bitter I get even. You don't give me great service, I don't give you my business!
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