How can poor customer service affect a business?

Today, potential customers have more options than ever to make a purchase. It’s easier to compare services. With visible online reviews and customer engagement across a variety of channels, your company’s performance is under scrutiny. Customers and prospects have no problem switching to a competitor if they see fit.

It is more expensive to get a new customer than to keep an existing one, so customer retention is critical to business success. And customer service has a drastic impact on customer retention. 89% of customers have stopped doing business with a company after a bad experience and 58% will never deal with that company again.

Loss of business and recurring customers

No matter how good your products are, if you don’t meet the service expectations of your customers, they will never be happy with what you are offering them. Not listening to your customers and ignoring their needs will not only annoy them, it will also cause them to leave your company. If your customer service is poor, you will have low customer retention rates and will never achieve your business goals.

Bad reviews online

If you don’t take customer complaints seriously and resolve those issues promptly and honestly, you will lose customers and this will affect your business reputation. Most customers will reveal the truth about their poor customer service on social media platforms like Facebook, Instagram, and Twitter. Negative comments and bad reviews spread quickly through social media and this will affect your reputation and your business goals.

New customers stay away

New customers search for businesses based on recommendations from people they know, and they will avoid a business when they hear first-hand accounts of poor customer service. People place more importance on negative reports than positive ones and believe more in the first-hand experience of their friends and family than they do in impersonal sources such as advertising.

So if your customer service is poor, potential customers may find your business, but they will choose what your competitors offer.

Employee license

Employees know when things are not going well at the company they work for. If they see frequent instances of poor customer service, they will start looking for opportunities with other companies. This is because dealing with dissatisfied customers makes your job difficult and makes the work environment toxic.

Management that does not treat its customers well probably does not care about the well-being of its employees either. High staff turnover tarnishes the name of a company. It creates more costs due to the increased need to recruit, hire and train new employees.

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