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Industry Research : The Multi-Billion Dollar Cost of Poor Customer Service in Australia

New research from cloud contact centre vendor NewVoiceMedia reveals that Australian companies deemed to have poor customer service are losing a staggering AUD$8 billion a year.

The survey of 2,004 adults from Australia revealed that 58 percent are taking their business elsewhere as a result of inadequate customer service – and of those, 92 percent have switched at least once or twice in the last year. 55 percent are so put off from calling a business for fear of being kept on hold, that they will switch to a competitor without even attempting to resolve a problem.

Top frustrations causing consumers to switch are lack of appreciation from a business (46%), unhelpful/rude contact centre staff (38%) and being passed around multiple agents (32%).

With respondents spending an average of $807 before leaving, it is estimated that $8 billion is lost by businesses in Australia each year – not including the significant cost of replacing lost customers and the impact of negative word of mouth. Faced with a poor experience, more than half of customers (58%) would never use that company again and 58 percent would tell friends and colleagues not to use the business.

As further evidence that complaints can’t be kept quiet in the digital age, 16 percent of consumers admit they would take their revenge online by posting a review or complaining via social media. Among the 16-34 year-olds, this figure soared to 53 percent.

The research indicated that 16-24 year-olds are the most tolerant when it comes to bad interactions, with 8 percent taking no action at all following a poor experience, compared with 2 percent of 35-44 year-olds. But those that do are the most likely to turn to social media – arguably the most detrimental means of complaint. Acknowledging this, one respondent commented, "One hashtag and the entire world can see it."

Both genders remain fairly tolerant of hold times, but women more so than men – with 85 percent prepared to wait for more than five minutes, compared to 77 percent of men. Even so, women object more than men to being kept on hold.

Voice is still the channel of choice for customers, with 59 percent preferring to contact a business by phone and 32 percent choosing to address an issue via email. While the majority of those surveyed prefer such traditional forms of communication, 27 percent of Generation Y chose social media as the most effective way to get a response – five times that of the over 55s.

The significance consumers place on excellent service presents opportunities as well as threats, as organisations can boost their business by getting it right. The research found that 77 percent of respondents said that good service had a considerable influence on their loyalty and 76 percent would recommend the company to others. Half (51%) would use the business more frequently and 35 percent are prepared to spend more money with them.

"With $8 billion of revenue being transferred between companies, this research reinforces just how much influence customers have on a business’s success – it’s surprising how many organisations still aren’t getting it right", comments Jonathan Gale, CEO of NewVoiceMedia.

"Great customer service is the critical differentiator and investing in providing personalised and engaging customer experiences will help businesses succeed in retaining customers and securing new business."


About Vonage:
Company LogoVonage (NYSE: VG) is a provider of communications services connecting individuals through broadband devices worldwide. Our technology serves approximately 2.4 million subscribers. We provide communication solutions that offer flexibility, portability and ease-of-use. Our Vonage World plan offers unlimited calling to more than 60 countries with popular features like call waiting, call forwarding and voicemail - for one low monthly rate. Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.
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Today's Tip of the Day - “Niceness” Alone Doesn’t Create Customer Loyalty

Read today's tip or listen to it on podcast.

Published: Tuesday, December 30, 2014

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2021 Buyers Guide Training

 
1.) 
CTCOMM

Call Centers
Contact Centers
Admin Training
Supervisor Training

2.) 
Davis-Mayo Associates

"Service Excellence" Customer Service Training
Live onsite training for your teams. Experienced by more than 450,000 people in 48 US states and 18 countries. No-nonsense approach by our experts with field-test content customized to your situation and using your scenarios.

3.) 
Happitu

Happitu
Happitu is your customer support team’s personal coach. It guides your team through every interaction with custom workflows, responsive scripting, and dynamic help topics. As a result, Happitu slashes training time, delivers higher resolution rates, and reduces handle times.

Documentation in Happitu is automated, detailed, and consistent. Go beyond handle times and service levels with the rich insights of Happitu – from granular interaction data to aggregate data and trends – you get the complete CX journey!

We intentionally built the Happitu Workflow Designer with your customer support team in mind. Using our intuitive tools that provide quick and safe iteration, you eliminate the...
(read more)
PH: 833-427-7488

4.) 
Lieber & Associates

Training Executives, Managers, Supervisors, and Reps
Lieber & Associates provides training for all levels of the contact center team. The firm customizes its off-the-shelf trainings to meet your specific company needs,

Executive and manager sessions address topics such as customer experience, metrics, technology, AI, and video calls. Supervisor sessions train your leaders to better coach and motivate reps. Phone staff modules include sessions on customer service, order-taking, cross-selling, handling difficult calls, phone "soft skills," and more.
PH: +1-773-325-0608

5.) 
Manitoba Customer Contact Association

Making Training and Development Part of Your Corporate Landscape

Organizations are always on the look out to save money and make more profit. Usually when it comes to crunch time some leaders will scrap training in order to tighten the belt. The downside of this is the cycle it creates.

Because some employers see training as a flexible benefit, employee development is often taken off the table. When employees don’t feel valued it becomes easy to see a revolving door. The constant need to hire goes up which ultimately means costs go up; we know that hiring costs more than retaining the right people.

Start the conversation: Explore our Training Page http://www.mcca.mb.ca/train...
(read more)
PH: 204-975-6468

6.) 
Navedas

CSAT.AI
CSAT.AI Scores Better Customer Service with Gamified Guidance!

CSAT.AI lets agents know when they’re on the right track by predicting CSAT scores in real time (when they’re fixable!) - because most customers don’t leave feedback, they just leave.

Agents have the immediate positive feedback that reinforces good behaviors for self training.
PH: 323-380-8555

7.) 
OMNI HR Consulting (Pty) Ltd

Human Capital & Organisational Development
Omni HR Consulting provides business and people development solutions through Training and Consulting services.

We work across a number of sectors to provide solutions from both a Skills Development / Business perspective.

Skills Development: accredited & non-accredited learning solutions including Learnerships, RPL solutions and Skills Programmes, including a curriculum for developing future skills.

Business Solutions: are designed to be customisable, relevant and industry-related to support businesses to achieve their strategic objectives and needs.
PH: +27 21 685 9160

8.) 
Orion Learning Services Inc.

Learning & Development
Learning & Development for Agents, Supervisors, Managers and Administration/Support Staff

Orion Learning is a global leader in providing accredited learning and development solutions for organizations globally. We offer call/contact center certification programs for Agents, Supervisors and Managers, business certifications and examinations for wide range of topics including project management, change management and service management, leadership soft skills and a full suite of assessment tools which can be used for recruitment, talent management, succession planning and coaching/mentoring. We deliver our solutions to global community and all of our solutions are delivered digitally.
PH: 1-416-992-5158

9.) 
Vads

VADS Training Center
PT VADS Indonesia as a Learning Center provides trainers, modules, development programs for individuals and teams. VADS Indonesia owns a vast curriculum for training provided by local trainers with flexible training locations that can be arranged at the client's place or PT VADS Learning Center. VADS Provide knowledge process, transformation consultancy, customer service training, leadership training, interpersonal development, and training for trainers.

Benefit :
- Customizable training by experienced trainers
- Increase motivation and engagement
- Improves customer service skills and knowledge
PH: 0217991445

10.) 
The Forum

Get connected to raise standards. Established in 2000, we are celebrating 20 years of best practice, our community of professionals is recognised as the ‘go-to place’ for innovation in customer operations, from contact centre and digital to field, back office, branch & retail services, working across all industry sectors.

We offer an independent and trusted space for learning and sharing, proud to welcome members are into a thriving and active community to network with other like-minded professionals. Benchmark against the best in class and learn from innovators and pioneers. Our team of independent experts can also offer bespoke advice, consultancy and training. We have helped many organisations develop the capability of their vital support functions.
PH: +44 (0)3331235960
 

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