The Impact of Poor Customer Service

Great customer experiences are critical in retaining and growing your customer base.  

The right tools and resources enable you to consistently exceed customer expectations. Your customers’ experience with your support contributes to your business’s positioning in their minds. 

Conversely, some problems in customer experience can badly damage customer perceptions and have knock on effects: 

Reputational impact 

Bad customer experiences damage how your customers perceive your company. If a customer’s primary interaction is with your support team, those interactions will drive their perceptions of the whole company. 

Beyond your product or service, your support team is the face of your business. They represent your company. Your customer retention in significant part depends on the experiences those customers have with support. 

It is physiological that people experience negative emotions more strongly than positive emotions. It is part of our ‘fight or flight’ response. That means that people remember bad customer experiences for longer and feel the negative sentiments more deeply than positive ones. Positive experiences often need to be reinforced to be memorable – if a customer has a series of great experiences with your support team, they will feel more positive about your company for longer. 

Future purchasing intent 

When customer support is a significant part of how your customers perceive your company, it has a direct impact on their future purchasing intent. Will they choose to continue to buy from you or look elsewhere? Will they continue a subscription or end it? Will they continue to use an application on a regular basis or fall away from active use? 

Cost to manage vs cost to acquire 

Fact: it is cheaper to retain an existing customer than it is to acquire a new one. That is, the cost to manage a customer is less than the cost to acquire one. 

Research shows that 9 out of 10 customers would pay more if they receive good customer experience. And most would choose to stay with a company that effectively and quickly resolves issues for them. 

Poor customer service that results in attrition forces you to spend more money to attract new customers. Great customer service helps maintain profitable relationships with existing customers. 

Lifetime customer value 

Great customer experiences help retain customers and reduce attrition. The longer a customer stays with your company, the greater revenue you will accrue. There is a direct relationship between the quality of customer services and the lifetime customer value that a company can achieve. 

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