Customer service is one of the most important aspects of any business. It’s no secret that customers are more demanding than ever before, and if companies want to maintain customer loyalty, they will need to be responsive and dedicated. Let’s explore some statistics about how customer service has changed over time, as well as what you can do to exceed your customers’ expectations for a truly remarkable experience.
What Is The Future Of Customer Service?
As expectations increase for better customer service, businesses are starting to focus on the customer experience. In a recent study, it was found that 90% of companies believe they need to improve their customer experience to remain competitive. Furthermore, Simplr has found that 70% of companies have started to track customer service interactions.
This means they can better understand how their customers feel about them and what can be improved upon to provide the best possible experience for every individual who interacts with the company.
This isn’t surprising when you consider that customers are now more vocal than ever before about their bad experiences. According to American Express, 37% of customers tell their friends and family if they have a terrible experience. In comparison, 53% of customers are more likely to purchase from brands that provide good customer service.
• Demonstrating Value for Good Service
It’s not just about keeping customers happy, though – it’s also about demonstrating the value of good customer service. In a study by Bain & Company, it was found that increasing customer retention rates by just five percent can increase profits by 25 to 95 percent.
This is because loyal customers are more likely to spend more money and refer others to your business. A study by Harvard Business Review found that customers referred by friends or family spend 23% more money on average than those not guided.
• Showing The Impact of A Poor Customer Service Experience
On the other hand, a poor customer service experience can devastatingly impact your business. Businesses lose an average of $62 billion each year due to poor customer service. This is mainly because customers are less likely to return or recommend your company if they had a negative experience.
• Service Expectations
To provide the best customer service, it is essential that you can understand what your customers want and need. You should also be responsive to their inquiries promptly. Additionally, make sure you provide excellent support so that your customers feel taken care of.
• Automation and AI Implementations
While technology, AI, and automation cannot completely replace human interaction, they can certainly help to improve customer service. Automation and AI can be used to provide customers with information about their account or order, answer common questions, and even resolve simple issues without the need for a human representative.
This frees up your customer service staff to focus on more complex inquiries and allows your customers to receive the information they need on time.
• Personalize Customer Service
It’s important to remember that every customer is an individual, and each interaction you have with them should be personalized. In a study by MaritzCX, they found that companies who personalize their interactions can increase customer satisfaction by up to 40%. This means taking into account the different factors of your business to provide information that is unique to each customer.
In the long term, this will help you retain your customers and provide them with a better experience of doing business with you in general. Finding out what makes your customers tick can be a great way to build rapport and improve their overall opinion of your company – something that could pay dividends for years to come.
• Shorter Wait Time And Speedier Resolution
Shorter wait times and speedier resolutions can keep customers happy at the moment. In a study by American Express, it was found that 56% of customers would tell their friends about how quickly they were able to resolve an issue with customer service. In comparison, 88% said they sometimes decide not to do business again based on their service quality.
• Agent And Representative Satisfaction
It’s also essential to make sure that your customer service agents and representatives are happy. Happy employees often result in more satisfied customers. A study by Gallup found that companies with high employee engagement scores decrease 12% in customer complaints.
Additionally, it was found that those companies saw an increase of 20% in customer retention rates and an increase of 29% in sales. When employees are engaged and happy, they are more likely to provide excellent customer service.
• Security and Personal Data Statistics
Security has been a hot topic lately, and you’re going to need a way to guarantee that your customers’ data is safe. According to the Privacy Rights Clearinghouse (PRC), 347 reported security breaches in 2017 alone, with over 22 million consumers affected by these breaches.
What Percentage Of Customers Use Customer Service?
About 60% of customers use customer service, according to research. Of those who don’t use customer service, the majority said it’s because they either didn’t know the number or had a bad experience in the past.
Generally speaking, consumers believe that customer service should be the same level of quality as other forms of customer interaction. Social media, for example, has set a high bar when it comes to friendly and efficient interactions with companies.
Of course, this doesn’t mean that social media will replace in-person or online customer service anytime soon. Instead, customer service will likely continue to evolve to meet the high standards set by social media and other digital platforms.
How Do Consumers Feel About Customer Service?
Most consumers expect convenience when it comes to customer service. They want to be able to access help in a way that’s most convenient for them, whether that means talking on the phone, chatting online, or sending an email.
Furthermore, customers appreciate it when companies provide multiple channels for customer service. This allows them to choose the method of communication that works best for them.
Finally, customers want customer service to be helpful and efficient. They don’t want to wait on hold for a long time or deal with unhelpful or uninformed agents. To meet the expectations of modern consumers, companies need to focus on providing excellent customer service across all channels.
About 75% of consumers would spend more with a company that provides excellent customer service. In addition, they’re more likely to share positive experiences on social media and recommend the business to others.
However, only about 38% of customers have received what could be considered excellent customer service from businesses in recent months. This means there’s room for improvement in providing quality help to customers.
As customer service evolves, businesses need to make sure they’re keeping up with the latest trends and meeting the expectations of their customers. By providing excellent customer service in all channels, companies can increase loyalty and sales among consumers.
While there are various trends in customer service, one thing is for sure: customers still rely on it to solve their issues. This year, we can expect more innovative and efficient customer service tools and technologies. For your business to stay competitive, it’s essential to understand the customer service landscape. Customer feedback is one area you should not ignore or try to avoid.