The Real Cost of Poor Customer Service Broken Piggy Bank Hammer Image

Sometimes, price is the kicker for companies looking at CRM. They say, “we just can’t afford to get a CRM right now,” and if you really can’t, that’s fine. Kinda.

Let me tell you something you really can’t afford: poor customer service.

If you’re providing a bad, sub-bar, or even par experience, you’re not doing enough for your customers and you should prepare yourself right now to face the consequences.

The Cost of a Bad Customer Experience

When you provide poor customer service or give your customers a bad experience, you’re setting yourself up for a few things.

First, an apology. According to a the Global Customer Service Barometer from American Express, 70% of American consumers demand an apology or reimbursement of some kind following a poor customer service experience.

And if you think you’re safe, almost 1 in 3 customers are reported having a bad experience with companies from which they’ve purchased products and services.

That probably means you’ve got some room for improvement, especially because of what it can cost you.

Not only are those 70% of customers looking for a refund, but often providing that customer support and refund will cost you even more in down time and team involvement.

Even then, resolving the concern is just a small part of the cost that will hang you over your head if you provide a bad customer experience.

Negative Evangelism

Social media, review sites, forums… these have become the defacto method of communication of this customer generation.

When you do something great, your customers can evangelize you and earn you new business.

But if you do something wrong, you can incur the wrath of a customer on a soapbox and, depending on their followers and level of influence, you could be in a world of hurt.

Loss of existing and potential customers is just the start. Try rolling back a bad company image. Indeed, in our hyper-connected age, not all press is good press anymore.

Nurturing Customer Relationships

The only way to combat these consequences is to strive to provide a consistently good customer experience.

One of the best tools to help you do that is CRM software.

Again, you might be thinking, “I just can’t afford it.” But as your company grows and gains new customers, that price will begin to outweigh the thought of what it would cost if you provide a poor customer service experience and all the consequences that come along for the ride.

By now, CRM software is starting to look pretty cheap, especially if it comes at just $25 per user per month.

Just think, if you could effectively nurture more customers, plus enhance new customer relationships, plus assure that no lead or customer falls through the cracks, then your CRM will pay for itself several times over.

Not only will it save you money, but it will save you face, too.

According toAmerican Express’ Global Customer Service Barometer, 70% of American consumers want an apology or some form of reimbursement after a poor customer service experience. – See more at: http://loyalty360.org/loyalty-today/article/the-cost-of-poor-customer-experience#sthash.Q1mVdv93.dpuf
According toAmerican Express’ Global Customer Service Barometer, 70% of American consumers want an apology or some form of reimbursement after a poor customer service experience. – See more at: http://loyalty360.org/loyalty-today/article/the-cost-of-poor-customer-experience#sthash.Q1mVdv93.dpuf

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