Can Poor Customer Service Get Your Business In Trouble?

Listening to compliments about your company’s customer service certainly feels nice. A pat on the back after a hard working day spent with the existing or new clients is always much appreciated. However, do not be fooled; good customer service doesn’t lead to just a couple of nice compliments that will make you feel good. There’s so much more to it than that. On the other hand, poor and underperforming customer service may significantly impair your business in many different ways. In this article, we’ll cover some of the most harmful effects of poor customer service and consequences it can produce.

Customer Retention

Underperforming customer support can lead to serious client retention issues. Poor service will most likely cost your business some existing clients, who will just cancel the service after not receiving the customer support they expected. In other words, a higher churn rate will lead your business to lower income, thus ultimately causing the shutdown of your company.

Prospect loss

A large percentage of prospects decides to just cancel their purchase or subscription to a product or service due to poor initial customer service. Even though they actually do need a service or a product offered, and they originally intended to buy it, any sort of poor customer service, or simply a lack of support may cause them to second-guess their intention to subscribe or purchase your goods.

Reputation damage and loss

There are proponents of the idea that sometimes even bad publicity can be better than none at all. Well, perhaps it’s time to re-consider that assertation if you are one of those people. A bad experience with customer support will lead to negative comments and bad word of mouth, which will not just cause you to lose some future clients you could have gained by providing good customer service, but it may also significantly affect your business’ reputation and negatively impact your company in terms of not getting more clients, not being able to hire good employees, and similar.

Higher employee turnover

Obviously, no one wants to be yelled at or deal with angry clients all the time. If the provided customer service is not up to par and causes a considerable number of clients to be unhappy, that trend may cause a higher employee turnover as well. In other words, it may become significantly harder to hire some of those great employees that you keep hearing about from your friends or colleagues managing other companies. The cost of hiring and training new employees may get your business into financial trouble.

Rectifying is sometimes hard

Making things right after a bad customer support experience is quite challenging. Your customer support team needs to make a dozen, if not more, positive impressions to make it up for one lousy impression they left on a client. And even if the manager gives the client a call to apologize or tries to rectify a bad experience, the bad taste will remain and make the client be extra careful in the future.

Loss of profit

Of course, it’s needless to say that all the previously listed things eventually lead to a loss of profit and may often times significantly hurt your business. It is because of that reason we suggest spending more time on recruiting a good customer support team and training them properly; otherwise, you might suffer some of these consequences later on. The fact that not all of the clients will immediately complain about the poor service they received is an extra reason to implement right policies regardless of the feedback you get on a daily basis. Being extra careful can’t hurt anyone.

Karin Jakovljevic

About the author

Karin Jakovljevic

Karin Jakovljevic is the head of marketing at Ximble, a powerful, cloud-based workforce management system, simplifying employee scheduling and time tracking for retailers, restaurants and small businesses.

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