The cost of poor customer service...

in #inleo2 days ago

The latest report by the Institute of Customer Service finds that satisfaction with big UK businesses is at its lowest for 15 years.

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And maybe this should be no surprise when the standards we are routinely forced to endure are a national disgrace.

A lot of this has been driven by firms increasingly relying on online web-forms and chat bots which direct customers away from human-led customer service. This puts the onus on the customer to sort out their own problems and sends out the message that these firms don't really care all that much.

Yet at the same time more and more money is invested in those smiley chat-bot images and help-pages full of smiling 30 something women which gives us the impression they are here to help, when in reality they don't give a toss about our problems.

The cost of poor customer service...

There is a huge individual and social cost to poor customer service... if you add up all that collective time lost chatting to a bot that couldn't answer your question, not to mention time on hold, I dread to think how many person-hours that is over the course of a year and what the economic cost would be.

DALL·E 2025-01-16 19.24.18 - A clean and professional design of a generic customer service webpage. The page features a prominent header with the company's logo and a navigation b.webp

And there's a cost to business too..

According to this Guardian Article from 2023 poor customer service costs British business an astronomical £130 billion a year, with poor customer service initially resulting in staff on average having to waste 1 whole day a week dealing with dissatisfied customers.

Easy to sort...?

To my mind the evidence is pretty strongly pointing to the importance of good customer service.... it's worth investing in more staff being around to assist with problems and questions customers have because if you don't nip these things in the bud soon, then customers just become narked and the problems become more unpleasant and take longer to deal with.

Given the extreme costs of poor customer service I can't see it eating into profits at all if companies were to do better! They'd probably see more return business that way too!

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I can be a pretty shitty customer when the customer service is bad. I'm that mf'er that will drop a deuce in the middle of aisle 6..

The kind of thing they just didn't know they needed!

Truly it is not good to have an experince with any establishment that has poor customer service.

People want to pay less for stuff, but that tends to mean worse service as they won't hire humans to do it. With many companies there is no phone number these days. They may have a chat thing, but I bet that goes to some place with cheap labour. You can waste a lot of time sorting things out. Welcome to the future!

I suppose nowadays you just have to find the best deal and then hope you have enough time to work everything out yourself.

Good customer service is part of reputable business. Big companies don't really care atimes when they have huge customer base. Companies are looking for ways to cut cost and are relying on chatbots.It seems to be the future idea of solving online queries.
Looking at that amount loss, there is a need to fast forward its effeciency

It wld seem rational to make improvements for sure!

hahaha.. yup. I hate the robot, automated phone systems. I was on hold for 5.5 hours with SS the other day. 😉😎🤙

Poor customer service loses customers and reduces profits. Total Cost of Quality = Cost of Prevention + Cost of Correction + Lost Opportunities (customer leaves). Correction costs 10x as much as prevention.

I read a number of articles about self-checkouts recently. Shoplifting, both intentional and unintentional, has skyrocketed almost everywhere that uses self-checkouts. Yet the amount of money lost is still less than the amount saved by not hiring enough human cashiers to run lanes so therefore, the self checkouts win.

I wonder if this outsourced to India or the Philippines piss poor human customer service or the redirects to voice robots or online chat bots, as terrible as it is, is not still saving them money. If so, I imagine it's not going anywhere, despite how much people hate it.

I'm sure they've done their maths although based on this research it doesn't quite add up!