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BizReport : Ecommerce archives : February 16, 2016

Survey: Consumers turning to competitors after bad CSE

Poor customer service may be more costly than many retailers believe. According to one new study nearly half (47%) of consumers turn to competitor stores within a day after a bad customer service experience.

by Kristina Knight

When it comes to customer service, consumers are willing to try multiple channels to get results, but if those results aren't positive, i.e. the issue isn't solved, they will simply move on to a competitor. That's the takeaway from new [24]7 data which indicates about half of consumers turn to competitors within a day of poor customer service. The data also shows nearly all (95%) use a minimum of three customer service channels/devices to solve a single issue.

"The way customers engage with brands has dramatically shifted, yet many enterprises' approach to customer service and sales is stuck in yesterday's paradigm. Our study shows that nearly one-third of customers pick up the phone after their first channel fails to solve their customer service issue, so it's clear that the phone still matters" said PV Kannan, founder and CEO of [24]7. "For this reason, it's more important than ever for brands to be where their customers are, and allow them to engage on their own terms. Companies that fail to prioritize the customer experience risk falling behind."

Other interesting findings from the report include:

• 37% of those who end a business relationship do so because of poor IVR (interactive voice response)
• 1 in 5 end business relationship because the 'wait was too long' to speak to a human
• 35% of Millennials say 'optimal self service' is the best option for customer service
• 86% of all surveyed say 'great customer service' means optimal self service and the business anticipating their needs

Image via Shutterstock

Tags: advertising, customer service, customer service trends, ecommerce, [24]7

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