In the world of technology we live in today, businesses cannot afford the true cost of bad customer service. But then what does it take?

Let’s start off with a number – $26 billion.

Accenture’s research discovered that bad customer service has cost a $26 billion loss for businesses in Singapore as those customers switched to other brands.

To quote Jeff Bezos, CEO of Amazon,

If a customer is unhappy in the physical world, they will tell six friends. If you displease a customer on the Internet, each of them can tell 6,000.”

The Fifth Quadrant conducted an online survey across Southeast Asia in 2015 to find out how customer service impacts brand loyalty. It seems that at least 7 out of 10  customers would abandon a business after encountering bad customer service experience. That’s a 70% loss of potential revenue!

What Constitutes Bad Customer Service?

1. Slow Responses

Fifth Quadrant pointed out that 37% of consumers agreed that customer service satisfaction is linked to the company’s ability to redirect them to a representative capable of solving their problems. A majority of these respondents also expect a response via phone call or live chat within ten minutes. Time is everything for today’s customers.

2. Inaccurate Responses And A Lack Of Knowledge

One pain point is the inconsistency of answers by different representatives in a company, or the incapability of an agent to provide an answer to a specific question. This is where staff training is crucial for a company.

3. Cold Interactions

Customers want to know that you care. When it comes to customer service, showing sincerity and having the right tone is key to creating happier customers. Simple terms such as “I understand how you must feel, and we are sorry for the inconvenience,” will let your customers know that you care.

Costs Of Bad Customer Service And Solutions

1. Damaged Brand Reputation

complaint written by client on social media bad customer service

People talk. Bad customer service has a cost. Someone who encountered terrible customer service may leverage on social media to rant about their experiences. In a report by PwC, most consumers in Asia rely heavily on the opinions of others before making a purchase. 52% of the respondents from China and 58% from Indonesia and Malaysia find that social networks have the greatest influence on their purchasing decisions.

With consumers of today becoming more tech-savvy, bad customer service experiences can spread like wildfire. This may ultimately drive away potential customers.

The Fix: Offer personalized customer experience

Let’s see it from a customer’s perspective: Time. It is time-consuming, as well as frustrating for customers to even attempt to get support via phone call or email. Not to mention the agonizing wait until a customer support agent finally tends to them!

Having face-to-face interaction in customer service makes the experience both personal and pleasant. The customer gets to see your expression and this eliminates the issue of cold interactions (if done right).

More enterprise players are taking up Video Interaction to provide personalized experiences for their customers and you should too! This option allows your customers to leverage on real-time video interaction call anytime, anywhere they are, on any devices. As this technology can be easily integrated into any platform, it definitely provides your business with the end-to-end personalised customer experience you are looking for.

2. Leads Do Not Get Converted

data on what customers look for in e-commerce with good customer service

Customers spell out “sales and revenue” for your business. And you get potential customers by successfully converting leads! In a customer’s buying process, having the information they need about your brand’s products or services is crucial before making a purchase. If they come across your website but don’t find the information that they’re looking for, they can switch to another brand who does. Why risk it?

By boosting the customer engagement between your brand and the consumer using real-time communications, more leads will convert to customers, and this mitigates the potential loss of revenue.

The Fix: Address Concerns And Queries Quickly

It becomes a particularly disappointing experience when a customer realizes that the only way to get a product’s detailed description is via email – which could take 1-3 working days for them to hear from customer support.

Businesses of today should step it up a notch by offering instant customer consultation through video interaction. This decreases the response time in solving issues and concerns, and hence increases your customer satisfaction! Customer support agents can also assess issues on a real-time basis and follow-up with the next course of action.

Increased Resource Costs For Service Recovery

feedback on social media for good customer service

Bad customer service costs businesses billions, including customer service recovery costs. However, let’s think about it. How much would it cost to salvage the relationship after several negative customer experiences?

The most common way is to offer discounts or special promotions to soothe the consumer, and these perhaps can coax him into buying your products or services again. But with more and more service recovery efforts, your business will not only be accumulating the losses in sales due to a loss of customers, but you will also be factoring in an increase in expenditure to repair customer relationships.

The Fix: Build Better Relationships With Better Engagement

No matter how good your recovery strategies are, providing good customer service is always the better choice when it comes to saving costs. Not only do you convert prospects into customers, but with good customer service experience, your customers will keep coming back because they trust your brand.

Businesses in Asia especially are utilizing Video Interaction to engage their consumers. Build a trusted relationship by providing support to your customer using the screen-sharing feature, live annotation engagements and more.

Good customer service is about putting your customers first. Personalized solutions and instant responses can indeed go a long way for them and your business. Video Interaction can make that impact on your customer service, therefore increasing customer satisfaction and ultimately, your sales!

Learn More About Improving Customer Service

Talk to us at to learn more about how Video Interaction can help improve customer experience, or sign up for a free demo today and enjoy first-class connectivity that is bound to increase your customer satisfaction.

Posted by Wavecell

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