Is Your Customer Service Killing Your Business?

According to the 2023 CCW Market Study, customer service satisfaction has experienced a 57% decline, yet most companies are failing to correct course. One study showed that the average company's investment into customer service had declined by as much as 28%. The order of importance for most organizations was R&D, Marketing, Sales, Customer Service, and Operations. Losing sight of the people is dangerous for a few reasons. Take a look the impact of poor customer service and see if your organization is struggling in these areas.

1. Poor customer service leads to a loss of customers which equals revenue.
   Have you ever had a customer complain? We are tempted to dismiss them as if they are the problem. We have to pay close attention to the complaints of our customers because statistics show that only 1 in 26 complain. The others just walk away. This means we better lean into the complaints and value their feedback. Those who aren’t complaining are taking their business somewhere else.
   
   
2. This increases the cost of business because you have to replace those customers.
   It costs more to acquire the customer than to keep the customer. On average, depending on the industry that you are in, acquiring a new customer costs about 5-7 times more than retaining an old one.
   
   
3. This puts more pressure on other departments like sales and marketing because they have to work harder to reach and acquire new customers.
   
   
4. Bad news travels fast. Just take a look at the customer freakout TikToks and you’ll see what I’m talking about. In the social media world we live in today there are plenty of places for bad news to spread.

Now you can choose to ignore the death of customer service, or you can work to resurrect it in your organization. After all, 86% of people say they will pay more for a good experience. So what can you do? Take a look at this post to see how your organization can take next steps.

You can also contact me below for a free personal consultation to see how I can add value to your organization.

Brandon