In any industry, two facts remain true. First, you’re sure to bring in more customers – and retain existing ones – if you provide a consistently exceptional customer experience. And, second, the more you know about your customers, the better you’ll be able to exceed their expectations. In other words, if you’re up to date on the latest customer service stats and facts, you have a better chance of outshining your competitors.
With that in mind, the following guide is all about data. You may be asking, “What do customers look for most when choosing a company to support?” or “Where do customers most often look for support when they need it?” You may also be wondering, “How important is customer service, really?” And, in all honesty, these are all worthwhile questions to be asking!
Below, through customer service stats, quotes, and facts from the last five years, you’ll find answers to each of these questions. That way, you can make data-driven decisions as you improve your customer experience strategy. Plus, by extension, you can bring in more customers and turn your existing customers into superfans of you, your products or services, and your brand. 👌
The Advantages of Amazing Customer Service
- Businesses with exceptional customer experiences make 4% to 8% more revenue than their competitors. (Bain & Company)
- On average, 70% of customers that reach out for service will purchase from a company again if that service is positive. (Glance)
- Companies can increase profits anywhere from 25% to 95% by increasing customer retention rates by only 5%. (Bain & Company)
- 70% of consumers in the U.S. have spent more to do business with companies that serve them exceptionally well. (American Express)
- 77% of customers are willing to recommend a company to a friend after having a single positive experience with it. (Temkin Group)
- Employee engagement rates increase by 20%, on average, in companies that focus on improving their customer experience. (McKinsey)
- 6% more people read positive online reviews of customer service than negative ones. (Dimensional Research)
- 90% of customers consider positive reviews when making a purchase. (Dimensional Research)
- 73% of customers remain loyal to brands because of exceptional customer service and friendly customer service representatives. (RightNow)
The Costs of Bad Customer Service
- 67% of customers say a bad customer experience was the reason they switched businesses. (Esteban Kolsky)
- 82% of customers stopped doing business with a company solely because of a poor customer experience. (Zendesk)
- Companies in the United States lose over $62 billion each year as a result of poor customer service. (New Voice Media)
- 51% of customers will never do business with a company again after a single bad experience. (New Voice Media)
- In the U.S., when a customer has a bad customer service experience, they tell 15 people, on average . (American Express)
- On average, men share bad customer service experiences the most (usually telling around 21 people). (American Express)
- Conversely, women tell around 10 people when they’ve had a bad customer service experience. (American Express)
- The lowest rated business customers will interact with is, on average, 3.3 stars. (Podium)
- Businesses with less than a 2-star rating are only considered by about 13% of people. (Search Engine Land)
- When just one negative article appears about a business, that business risks losing up to 22% of their customers. The risk increases to 59% when three articles are visible to customers. (MOZ)
Where Customers Look for Service
- 54% of customers use email to reach out for customer service, making it the most commonly-used service channel. (Forrester)
- In the U.S. more than 60% of consumers prefer digital self-serve tools (website, mobile app, voice response system, online chat, etc.) when in need of service. (American Express)
- Of all digital self-serve tools, customers most prefer knowledge bases, such as a website’s FAQ section or article support center. (Forrester)
- The average wait time for online customer support chat is 45 seconds. This makes customer expectations for chat much higher than when they use email to contact support. (Live Chat Benchmark Report)
- The percentage of customers that reach out on social media for service is steadily increasing year over year. Between 2012 and 2017, for instance, it jumped from 17 to 35%. (American Express)
- 31% of customers say they have used Twitter to reach out to a company for customer service. (Forrester)
- 57% of customers say they would rather use digital channels (email, social media, etc.) than voice-based customer support. (Ameyo)
Where Customers Share Their Experiences
- 53% of U.S. consumers will post on social media about a good customer experience. By contrast, only 35% will post about a bad experience. (American Express)
- Less than 4% of customers will tell a business about a bad experience. The vast majority of customers simply leave. (Esteban Kolsky)
- In the U.S, of the people between age 18-34, 55% have used social media to praise a brand or its customer service. (Microsoft)
Additional Insights to Boost Your Customer Service
- 56% of customers are willing to share personal information if, by doing so, they’ll be ensured better service. (Salesforce)
- 75% of customers say they expect a consistent experience regardless of how they engage a company (through social media, via email or phone, or in-person). (Salesforce)
- 70% of the average customer journey depends on how the customer feels they are being treated. (McKinsey)
- 52% of customers worldwide say that companies need to take greater action on customer feedback. (Microsoft)
- Customer service is the top ranking factor to affect customers’ trust in a company. (Dimensional Research)
- If a company proactively reaches out to customers for feedback, they’re viewed more favorably by up to 77% of customers. (Microsoft)
- 44% of consumers report having received the wrong answer from a customer service representative. (Kolsky)
- 49% of customers consider influencer reviews and recommendations when making a purchase. (Adam Enfroy)
