A great product at a fair price isn’t enough to succeed. The abundance of choice in today’s saturated marketplace means that…
People expect remarkable service, support, and experiences across all stages of the buyer’s journey.
Of course, it’s one thing to acknowledge that reality. It’s another thing entirely to make service an engine of growth in your day-to-day business.
Customer service statistics gathered from a host shows how common customer service approaches have drastically changed over the years and will continue to change in the future.
Overall, good service earns customer loyalty and is critical to your company’s success. Understanding how people conceptualize customer service and what the current and future trends makes support an engine of growth.
How do customers conceptualize customer service, what support means to them, and how it impacts business?
More than two-thirds of marketers say their companies compete mostly on the basis of customer service.
87% of customers think brands need to put more effort into providing a consistent experience.
70% of customers say understanding how they use products and services is very important to winning their business.
74% of people are likely to switch brands if they find the purchasing process too difficult.
While 72% of businesses say improving customer experience is their top priority, only 63% of marketers prioritize implementing technology investments that will help them reach this goal.
75% of brands report that they are measuring customer engagement, but cannot define what it is
How many support channels should a company have and which channels are the most valued by customers?
81% of retail businesses say they depend on email for customer acquisition, while 80% rely on it for customer retention.
85% of small and medium business Twitter users say it’s important for businesses to provide customer service using the network.
A third of internet users find voice/phone support the most annoying customer support channel.
On average, customers stay on hold for 11 minutes before hanging up a support call.
More than six in ten U.S. consumers say that their go-to channel for simple inquiries is a digital self-serve tool such as a website (24%), mobile app (14%), voice response system (13%) or online chat (12%).
45 seconds is how long on average customers are willing to wait for a response via a live chat.
55% of customer requests for service on social media are not acknowledged.
84% of social media service interactions are escalated to other channels.
Companies with the strongest omnichannel customer engagement strategies retain an average of 89% of their customers, compared with 33% for companies with weak omnichannel strategies.
Aberdeen Group Inc
61% of customers have not been able to easily switch from one channel to another when interacting with customer service.
What qualities and skills should you look for in an agent, and what do support agents need in order to do their job as best as they can?
42% of service agents are unable to efficiently resolve customer issues due to disconnected systems, archaic user interfaces, and multiple applications.
65% of companies provide effective tools and training to their agents to gain trust with their customers.
Peppers and Rogers Group
Over 35% of customers expect to be able to contact the same customer service representative on any channel.
42% of customers are put off by rude or unhelpful customer service staff.
72% of customers blame their bad customer service interaction on having to explain their problem to multiple people.
Speed of response (89%), speed of resolution (89%), and friendliness of representative (82%) are seen as the most important aspects of the customer service experience, regardless of channel.
More than 80% of customer chat sessions can be resolved by a chatbot.
The Average Annual Turnover Rate for a customer service representative (CSR) was 29% in 2016.
75% of customers believe it takes too long to reach a live agent.
About one in three people (30%) say the most important aspect of customer service is speaking with a knowledgeable and friendly agent.
How does good customer experience impact customers’ behavior? How does customer engagement help drive business growth? Are people satisfied with the service they receive?
After a positive customer experience, 69% would recommend the company to others, and 50% would use the business more frequently.
Customers who had the best past experiences spend 140% more compared to those who had the poorest past experience.
Harvard Business Review
8 in 10 Americans (81%) report that businesses are meeting or exceeding their expectations for service, compared to 67% in 2014.
Highly engaged customers buy 90% more frequently, spend 60% more per transaction, and have 3 times the annual value compared to other customers.
Highly engaged customers are 6x more likely to say they would try a new product or service from the brand as soon as it comes out.
24% of consumers continue to seek out vendors two or more years after a good experience.
55% of customers become a customer of a company because of their reputation for great customer service.
73% of customers say that valuing their time is the most important thing a company can do to provide them with good online customer service.
75% of people would return to a company with excellent service and 56% would recommend it to family and friends.
83% of consumers report that if companies could provide customers with better live or in-person customer service, it would have impacted their decision to switch provider.
A 10% increase in a company's customer satisfaction score leads to a 12% increase in trust from customers. Institute of Customer Service
Institute of Customer Service
Measuring satisfaction on customer journeys is 30% more predictive of overall customer satisfaction than measuring happiness for each individual interaction.
McKinsey & Company
What makes customers tick and what can you do to avoid them taking their business elsewhere?
89% of consumers begin doing business with a competitor following a poor customer experience.
79% of consumers who shared complaints about poor customer experience online had their complaints ignored.
59% of 25-34-year-olds share poor customer experiences online.
41% of consumers who had a very bad experience start spending less with the company.
67% of customer churn is preventable if the customer issue was resolved at the first engagement.
5% of customers say they would go as far as informing the media of a bad customer experience.
80% of companies say they deliver “superior” customer service. When the same question is asked from customers, only 8% of people think these same companies are really delivering.
Bain & Company
Once a provider loses a customer, 68% of consumers will not go back.
Only 1 out of 26 unhappy customers complain. The rest churn.
49% of consumers say that feeling unappreciated is their number one reason for switching to a different solution.
67% of consumers list bad customer experience as one of the primary reasons for churning.
The average American tells 15 people when they’ve had a poor customer service experience.
30% of consumers say not being able to reach a real human is the most frustrating part of a bad customer service experience.
Is customer service a good predictor of brand loyalty, and how much of an impact does customer support really have in terms of revenue?
86% of consumers are willing to pay up to 25% more for a better customer experience.
An estimated $41 billion is lost by US companies each year following a bad customer experience.
A 5% increase in customer retention can increase a company's profitability by 75%.
Bain & Company
Three out of four (74%) consumers say they have spent more with a company because of a history of positive customer service experiences.
As a group, millennials are willing to spend the most for great care (21% additional).
65% of companies are able to successfully upsell or cross-sell to existing customers.
Acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.
Harvard Business Review
84% of organizations working to improve customer service report an increase in revenue.
86% of consumers are willing to pay more for an upgraded experience.
A moderate increase in Customer Experience generates an average revenue increase of $823 million over three years for a company with $1 billion in annual revenues.
Do customers prefer being supported by agents directly or finding answers to their questions on their own?
86% of B2B executives prefer using self-service tools for reordering, over talking to a sales representative.
Close to half (48%) of CRM managers and professionals say they have web or mobile-based self-service capabilities.
About half (45%) of executives with web or mobile self-service capabilities report measurable reductions in phone inquiries and 39% report less email traffic.
73% of customers want the ability to solve product/service issues on their own.
More than half (53%) of consumers think it is important for them to resolve their own product/service problems rather than rely on customer service representatives.
55% of consumers fall in love with a brand when that brand offers "easy access to information and support".
By adding self-service, a typical utility could see $1-3 million in annual savings.
90% of consumers have used self-service systems to find answers to their questions.
51% of customers prefer technical support through a knowledge base.
91% of customers would use an online knowledge base if it were available and tailored to their needs.
Social Media Today
What does the future of customer service look like, and what should companies be prepared for?
By 2020, 85% of the customer-company relationship will be managed with no human interaction.
By 2020, customer experience will overtake price and product as the key brand differentiator.
63% of marketers say that social media will become the top customer support channel by 2020.
69% will use online communities as a support channel by 2020.
25% of Customer Service Operations will use virtual customer assistants or chatbot technology by 2020.
It’s predicted that by 2020, the average person will have more conversations with bots than with their spouse.
By 2020, chief marketing officers will own the entire, end-to-end customer experience.
91% of retailers plan to offer order visibility across channels within the next three years.
Boston Retail Platforms
By the end of 2020, 81% of retailers will deploy unified commerce platforms, to support commerce across the enterprise’s stores, mobile users and the web.
Boston Retail Platforms
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