Customer service is a thing that keeps evolving, so do customer expectations.
Traditional ways of serving customers that have been in use for the past decade, may not be able to satisfy today’s modern customers.
In this modern era, customer service has become an important factor that consumers consider while or before doing business with a company or brand. That’s why brands are also striving to provide a great customer experience to their customers. It has become the new basis of competition between brands.
In simple words, consumers have become used to a great customer service experience and don’t compromise with it in any case, making it crucial for brands to stay updated, keep innovating and set new standards of customer service.
In this post, we have mentioned 50+ fascinating customer service stats based on our researches and some other studies done by authentic researchers in the industry.
Table of Contents:
- Key Statistics
- Customer Service, Experience, and Loyalty
- Customer Service Outsourcing
- Customer Service is the New Age of Marketing
- The Cost of Poor Customer Service
- Customer Service Channels
- Self-service and Automation
Customer Service, Experience, and Loyalty
1. 87% of consumers want brands to innovate and set new standards of customer service.
2. 89% of consumers consider buying from brands that show they care about consumer needs.
3. 86% of consumers feel more loyal to brands that show a deep understanding of their priorities and preferences.
4. 83% of consumers said that they feel more loyal to the brand that shares its values and beliefs with them.
5. 85% of consumers want brands to exceed their expectations throughout their customer journey.
6. Over half (54%) of customers have higher expectations for customer service today compared to one year ago.
A larger proportion – 66% of customers aged 18-34 expect the same.
7. Granter predicts that more than 50% of organizations will redirect their consumer product investments to consumer experience innovations.
8. In 2017, 64% of Americans contacted some sort of customer service.
9. 52% of people around the globe want companies to take action on feedback provided by the customers.
10. 96% of consumers say customer service plays a key role in their choice of and loyalty to a brand.
11. Around 70% of consumers say they have already made a choice to support a company that delivers great customer service.
12. 87% of organizations admit that traditional experiences no longer satisfy customers.
13. For 73% of consumers, friendly employees or customer support representatives are what makes a memorable experience and cause consumers to stay loyal to the brand.
Customer Service Outsourcing
14. “Cost reduction” is the primary objective of outsourcing for 70% of the companies.
15. 54% of all companies use third-party support teams to connect with customers.
16. 24% of small businesses choose outsourcing customer service to increase efficiency.
17. 40% of companies said outsourcing provided the organizational flexibility to deal with the changes felt by the pandemic.
Customer Service is the New Age of Marketing
18. 67% of consumers and 74% of industrial buyers say they’ll pay more for a great customer service experience.
19. 52% of consumers reported that they have made an additional purchase from a company after a positive customer service experience.
20. While buying a product, 90% of customers are influenced by positive reviews.
21. 5% of Increase in customer retention rate increases profits by 25% to 95%.
22. Customers who had a great customer experience are 3x more likely to make a repeat purchase and 5x more likely to recommend the company to friends and relatives than if they had a poor customer experience.
23. 89% of companies expect to compete mostly based on customer experience, versus 36% four years ago.
The Cost of Poor Customer Service
24. 89% of consumers took their business from a company to its competitors on experiencing poor customer service.
25. 68% of the customers ended the business relationship with a company due to a “poor automated self-service IVR system.”
26. Half of the consumers (50%) stopped doing business with a company because of “unskilled customer representatives” who were unable to resolve customer issues.
27. While 95% of consumers share bad customer experiences with others, 87% also share good experiences.
28. The average American tells 15 people when they’ve had a poor customer service experience.
29. 13% of unsatisfied customers tell 15 or more people about their bad experience with a company. On the other hand, 72% of satisfied customers tell 6 or more about their good experience.
30. 67% of customers cite bad customer experience as a cause of churn, but only 1 out of 26 customers complain about the bad experience.
31. 79% of consumers who complained about a poor customer experience online had their complaints ignored.
32. 12% of customers chose “lack of speed” as their number one frustration with customer service.
33. 60% of customers stopped doing business with a company on experiencing “long wait times on the phone.”
34. If customer issues are not resolved within a day, 45% of customers take their business to the competitors.
This percentage increases to 76% if issues are not resolved within a week.
35. 56% of customers have ended their business relationship with a company following a poor customer service experience.
36. 39% of consumers will avoid a company for two years on experience a poor customer service experience.
37. 91% of unhappy customers choose to leave without complaining.
38. 87% of customer churn is avoidable if a company resolves the issue in the first place.
Customer Service Channels
39. The scope of e-commerce customer service seems to increase as studies indicate that:
By 2040, e-commerce will facilitate as much as 95% of shopping, which seems to be good news for e-commerce owners who will be in high demand. But on the other side, competition will also be more fierce than ever.
40. 63% of customers choose online channels to start their customer service interactions.
41. 57% of consumers prefer digital channels such as social or email over the phone to contact a company’s customer support.
42. 68% of the millennials and 75% of teens have a clear preference for email as a communication channel, even if businesses add other channels to the mix.
43. 60% of consumers have the experience of using Twitter for customer service. Out of these people who use Twitter for customer service, 70% also expect the company (they complained about) to read their tweets.
44. A large majority – 82% of consumers like or love it when companies address their complaints on Twitter.
45. Customers reach out to brands across an average of eleven social media channels.
46. 90% of consumers want companies to provide an online portal for customer service.
47. 9 in 10 consumers demand a unified omnichannel experience. In simple words, they want a seamless experience while moving from one channel to another, such as phone to text, chat to the phone, or social media.
48. 65% of consumers say they broke the business relationship with a company due to the “need to re-explain the issue” whenever they contact customer support.
Self-service and Automation
49. 55% of consumers say they’re more likely to use “visual IVR” if given the option.
50. 50% of the consumers recognize the importance of resolving product or service issues on their own.
51. 70% of consumers expect a company’s website to include a self-service application.
52. For performing simple customer service tasks, over 60% of consumers prefer an automated self-service, such as a mobile app or website.
53. 30% of consumers rate chatbot interactions as “effective” when it comes to resolving customer service issues.
54. By 2021, 15% of total customer service interactions will be handled by AI, an 400% increase from 2017.