Curb The Cost of Poor Customer Service with These 5 Practices!

Providing a great customer experience has much impact on having excellent marketing and a strong sales funnel. Around 68% of customers say that they are happy to pay more for services and products from a company that is well-known to deliver good customer service experiences.

It is easier to reduce the cost of poor customer service when they feel heard and supported. Moreover, if a customer service representative does an excellent job, it may aid boost your other service reps’ effectiveness. An extraordinary experience induces users to do word-of-mouth marketing and that serves you as one of the best pitches.

Let’s find out more about the costs and best measures to curb the expense of bad customer service.

What Are the Actual Costs of Bad Customer Service?

Effect of Poor Customer Service

In many situations, businesses are not tackling a single issue, but quite a few internal errors coupled with fluctuating consumer expectations and behaviors. With the problem compounding, below are some of the prominent costs of poor customer service:

  1. Bad Consumer Experience Become Viral

    People are not just more prone to recollect bad experiences than the good ones but are also more likely to transmit them through online reviews. Whether customers are making a purchasing decision for their personal life or business, they rely greatly on third-party assessments and reviews.

    In many cases, such feedback offers a level of transparency and honesty that buyers do not always feel they get from marketing and sales communications. As per the 2020 Local Consumer Review Survey from BrightLocal, 87% of users are reading online reviews for regional businesses. Considering the prevalent situation of global pandemics, it is not surprising at all. 

  2. Negative Consumer Experience Leave a Lasting Impact

    Regrettably, human beings can recall a bad experience more quickly than a good one. This is so because negative incitements have a more considerable impact on the individual brain than positive ones.

    In the context of a company’s customer service, this means that customers who have a negative encounter with your company may relate your brand with that unpleasant reminiscence forever and shift their business elsewhere.

  3. Loss of Prospective Businesses

    As you can observe, individuals like sharing their views, and low ratings and negative reviews push present customers away. Not only a low-quality customer service makes customers shift to your competitor, but it can also impede prospective prospects from connecting with you. To put it another way, the ripple impacts of one negative experience can block myriad new relationships from emerging.

  4. Easy to Switch

    Today, it is easier than ever to search for other competitor brands to substitute the current provider. If a consumer keeps on getting relocated between various customer service representatives or being on hold for an unreasonable amount of time while the rep looks for the answer or resolution to handle their complaints, then such a consumer may decide it will be less frustrating and faster to take their business somewhere else.

    Customers can hop from a company to another in favor of better support and more convenience. Around 67% of users report a poor customer experience as the motive for switching their business to another brand.


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How to Avoid Losing Customers Due to Poor Customer Service?

After analyzing which customer service patterns are most problematic, you can work towards rectifying them. By making a few modifications to your existing customer support methods, you can beat the soaring cost of poor customer service. Below mentioned are some of the best practices that you can implement right away.

  1. Enrich Your Organizational Culture

    Organizations must ensure their customer reps feel empowered and for this, you must create a positive company culture. Moreover, you must include your employees while making significant decisions that may affect them. Every employee must be appreciated and rewarded for their contribution to the business operations.

  2. Understand What Your Customers Want

    On facing substantial customer turnover, it becomes crucial for you to detect the prominent causes. For this, you can scan reviews to look for trends, engage in direct conversations with individuals leaving for other providers, and conduct customer surveys. It is challenging to fix your procedure until you understand accurately why these angry customers are making the shift.

  3. Set-up a Knowledge Sharing Platform

    One of the finest techniques to streamline customer conversations, ensure all reps are providing the most up-to-date information, and empower employees, is by setting a searchable and centralized knowledge sharing platform like CloudTutorial.

    If customer service reps have easy access to all the data they require to assist consumers, they will be more confident and productive. This, in turn, will make them offer quicker resolutions.

  4. h3>Give Reply to Negative Feedbacks

    Any negative review can be a stain on your company’s reputation and can possibly scare away interested and highly qualified prospects. But replying to a negative customer experience in a manner that exhibits respect, understanding, and patience can aid you to overcome such ill effects.

    Not only can a well-written answer turn an unsatisfactory customer happy, but it also shows the potential customers that you are devoted to imparting the best services to each customer.

  5. Conduct Empathy Training

    Empathy is needed to avail better consumer experiences. But if any service professional is overwhelmed and busy, they may not seem to be as considerate as they sense. By conducting empathy training for new reps and refresher assemblies for present reps, you can ensure that these service agents are showing empathy in certain ways that make your customers feel respected and acknowledged.


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Some Customer Service Stats You Need to See Now!

Loosing Business due to Poor Customer Service

Crucial customer insights like NPS and customer satisfaction score help your customer service team enhance and grow their productivity. With such stats and figures, they can help your other customer-facing departments understand where they could make necessary adjustments to fill the gaps.

Some useful insights:

This shows customers are becoming more and more customer service-oriented and are expecting more from their brands.

Consider this:

  • A terrific customer service experience greatly impacts suggestions and recommendations. Users who rate a brand’s service as “good” are 38% more prone to endorse it. (Qualtrics XM Institute)
  • 74% of millennials say they are more impressed by a brand that has active social media responsiveness. (State of Global Customer Service Report, 2017)
    If brands reply quickly on social media, millennials are more likely to engage with sales and buy the product, as this throws poor service experience out of the window.

Think about this:

  • 80% of enterprises utilize customer satisfaction scores to evaluate customer experience and enhance it. (Harvard Business Review)
  • Approximately 95% of consumers believe that customer service is crucial for maintaining brand loyalty, and 60% of users report having left a brand and moving to a rival because of bad customer service. (State of Global Customer Service Report, 2018)
  • 78% of consumers have withdrawn their purchases due to a bad customer experience. (Glance)

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Generally, poor customer service results in fewer customers, which means lower sales and revenues for your company. This can instigate a vicious sequence in which the organization attempts to save money on customer service training or recruiting the right candidate. As a result, this makes its service level fall downward straightaway.
Companies lose a massive $75 billion customers yearly because of poor customer service. Brands that fail to produce positive and emotional experiences impact customer loyalty. 67% of customers have become ‘the switchers’ – the customers who are inclined to switch companies owing to a bad customer experience.
Customers switching a brand means a situation where the company loses a formerly loyal consumer to its competitor. It requires 12 positive encounters to make up for an unsettled negative encounter. (Ruby Newell-Legner, ‘Understanding Customers’)


By implementing these above-mentioned best practices, you can build a brand that is loved by your customers and avoid paying the cost of poor customer service. Democratizing knowledge with CloudTutorial knowledge base platform aids everybody excel. Enhancing customer service experiences can eliminate a significant chunk of your revenue loss, boost profits by increasing customer retention, and boost your reputation.

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