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How much does poor Customer Service really cost businesses?

A recent article by Which? has revealed that the cost of poor customer service could be far more than businesses have previously imagined. Research by First Direct shows that customers switching to alternative suppliers as a result of bad service costs in the region of £7.7 billion in lost business.

Banks in particular are losing out on £2.3 billion alone, due to customers switching to rival firms.

Of course, this is not new news. When I first launched Please Press 1 back in 2013, thousands of you responded to my survey, and a whopping 75% stated that you would take your business elsewhere as a direct result of bad service.

It is also not surprising that "the  top customer service gripe was automated telephone systems". A look at all the comments received when I launched Please Press 1 will tell you that. 

Some companies are hopefully starting to realise the value of providing effective customer service and a good customer experience. Rather than focus on sales, the real value to the business comes through the long term relationship with the customer - and to enable that requires effective customer service - otherwise, consumers will vote with their feet and take their business elsewhere.

What do you think?  Pleaes let me know below or contact me. I welcome your views.


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