Chapter One The Cost of Bad Customer Service

DID YOU KNOW

More than half of Americans have scrapped a planned purchase or transaction because of bad service.

IN THE STATS

33% of Americans say they’ll consider switching companies after just a single instance of poor service.

FACT

Americans tell an average of 15 people about a poor service experience, versus the 11 people they’ll tell about a good experience.

THE DATA POINT

U.S. companies lose more than $62 billion annually due to poor customer service.

THE DATA POINT

74% of people are likely to switch brands if they find the purchasing process too difficult.

Takeaway: Not only do you miss out on short-term sales with a difficult buying experience, you miss out on long-term loyalty and higher LTVs.

IN THE STATS

After one negative experience, 51% of customers will never do business with that company again.

THE BOTTOM LINE

Any business with customers is in the “People” business.

Takeaway: Losing even a single customer can be very costly. It’s critical for companies to turn a complaint into a positive for the customer and for the company moving forward.

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