Poor Customer Service Affecting Businesses

A new national survey from cloud communications provider Corvisa proves that consumers are getting fed up with poor customer service and as a result, businesses’ livelihoods are at stake.

In the third annual Customer Service Report of over 1,200 U.S. consumers, 48% of respondents say they have stopped doing business with a company due to negative customer service experiences in the past year. Additionally, nearly a quarter of millennials would stop doing business after just one negative interaction.

Some frustrated customers reported going so far as yelling at the call center agent (18%) or hanging up the phone (40%), signaling that businesses need to pay closer attention to consumers’ cries or run the risk of losing the customers they worked so hard to get. So what pain points are these consumers facing? According to the survey, long hold times, scripted-sounding agents and lack of being proactive, to name a few.

Hold Times Hurt the Bottom Line

Although the Internet has become a major avenue for communication, 41% of customers still rank phone calls as the top method of communication with customer service; this number increases to 56% when customers are frustrated.

But despite being such a crucial form of communication, customers believe companies have plenty to work on when it comes to phone calls. Seventy-eight percent of respondents would hang up if they had to wait more than 15 minutes, and a quarter would be lost at just five minutes or less. In fact, lowering hold times is an area that the majority of respondents (57%) believe businesses can improve on—up 16% from the 2014 Customer Service Report.

Data shows that a change would not only benefit consumers; customer service wait times cost U.S. businesses $130 billion annually, according to a recent study by ClickSoftware.

Robotic Agents Are Undermining ROI

The importance of phone calls also means that customer service agents need to have a personal touch on their calls. According to the study, 99% of consumers think customer service agents sound scripted at times, and 25% believe training agents to sound more natural should be a top customer service priority for businesses. 

“It’s hard for agents to convey empathy with the customer when every word is pre-planned, so most companies are actually more successful when they move away from the ‘stick-to the-scripts’ mentality,” said Brandon Knight, vice president contact center optimization for Corvisa. “A more effective approach is to instill general conversation guidelines and workflows so that agents can collect specific information and then communicate in a more authentic way.”

Proactivity Should be a Priority

Being proactive is key to excellent customer service experiences, but up to 43% of companies rarely or never proactively reach out to customers, even though 80% of consumers say they would be impressed if a company did. But it’s important to be helpful and not just promotional.

“If customers aren’t calling in, it doesn’t mean they wouldn’t benefit from some proactive outreach that could help them down the line,” said Corvisa CEO Matt Lautz. “Proactive care is looking at the behavior of your customers, how they are using your product, how they are interacting with you and calling them when you see something could be better.”

Prepare for a Text Message Takeover

Furthermore, data indicates that companies may be able to capitalize on this demand for proactive communication with text messaging. In fact, 77% of consumers are open to getting text messages from companies, particularly when it comes to fraud alerts (56%), reminders for payment, appointments, reservations, travel status, etc. (54%) and notification of sales, discounts or special promos (49%).

Not surprisingly, up to 88% of millennials surveyed were open to receiving texts from businesses. As millennials will surpass the baby boomers this year as the nation’s largest living generation, it’s important for companies to note this trend in communication preferences and adjust accordingly.

Fraud Fears Impact Communication, Increase Demand for Inbound Info

However, consumers are hesitant when it comes to providing information to companies. In fact, 78% of consumers report hesitating to share personal information with companies in light of recent major data breaches. However, with fraud alerts topping the list of reasons consumers are willing to receive texts from companies, there is still a window of opportunity for businesses to use proactive outreach to mitigate consumer concerns and improve customer relationships.

To see a more detail on the 2015 Customer Service Report findings, visit here.

Methodology

Through November 4 and November 6, 2015, Corvisa surveyed 1,248 U.S. consumers via Instant.ly. The margin of error is +/- 5 percentage points.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.