Nine Costs of Poor Customer Service.

Bad customer service is about the fastest way an organization can lose their customers. Bad service is the long wait time, inexperienced agents, uncultured attendants etc. Here are 9 costs associated to poor customer service.

  1. As satisfaction level drops, loyalty to the organization drops even faster.
  2. Along with customer loyalty reduction is also a decline in employee loyalty.
  3. Unhappy customers tell someone who tells someone else. An unhappy client tells twice as many people about a bad experience than they do about a good one.
  4. Majority of customers will withdraw from an organization following a bad service.
  5. Diminishes your potential for attracting future customers
  6. Can cause a ripple effect on social media. Customers are becoming more creative in airing their displeasure. Such as when there is a report on this damages a company’s reputation. A reputation that took years to build might take even longer to repair.
  7. Gathered data suggests that 89% of consumers who experience poor service will switch to another brand. Of course, if you lose current and potential customers, sales will decline and profit affected.
  8. Cash flow problems will arise if a company needs to constantly spend an amount of operating budget attracting new customers.
  9. Eventually, the organization will experience a loss in market share as their competitors will take over the disgruntled customers.

So next time you are dealing with a customer service issue – be sure to consider the actual potential costs.


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