News : Poor Customer Service Costs Over $100 Billion/Year
Toronto, Canada, July 29, 2014 -- 3C Contact Services, a North American provider of contact center solutions for small- and medium-sized businesses, is weighing in on a recent study that shows that customer service inefficiencies cost Americans more than $100 billion annually.
According to a recent study, customer service inefficiencies could be costing Americans $108 billion annually, with individuals losing more than $750 each. Businesses stand to suffer the most; dealing with inefficient customer service translates into a year productivity loss of $900 per employee. In total, this costs American businesses approximately $130 billion per year.
"The survey found that employed Americans lose 30.8 potential work hours per year waiting for service industry responses. And U.S. businesses take an even bigger hit; human capital costs a company 20% more than an employee’s base salary," says Rick Johnson, president of 3C Contact Services. "Poor customer service is costing Americans billions, and brands that equip and empower their workforce with the proper tools to handle customer needs will have a strong competitive advantage."
Johnson explains that the survey findings show customers demand first-rate service; they do not want to pay extra for it and more than a third say they will stop dealing with a business if they don’t get it. Customer service is often the first impression a client gets about a brand, so a bad customer service experience can ruin a company’s reputation and negatively impact its bottom line.
The study also found that satisfied customers help improve retention and drive profitability. In fact, brands that reached at least a 90% customer satisfaction rate achieved annual 6.1% growth in service revenue, 3.7% growth in overall revenue, and an 89% level of customer retention.
Posted by Veronica Silva Cusi, news correspondent
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We provide BPO Call Center services.
Published: Wednesday, July 30, 2014
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