Providing great, responsive customer service can be the deciding factor in whether potential customers choose your store over your competitors and if they'll become repeat shoppers. While most customers may prefer traditional channels of communication like phone and email, social media is becoming more and more popular as a form of contact.
Nancee Halpin summarizes the findings from this report for Business Insider in the excerpt below.
Here are some key takeaways from the report:
— Nancee Halpin, Business Insider
- Even a single negative customer service experience can deter potential customers from spending money with a company. 60% of US consumers have not completed an intended purchase based on a poor customer service experience. That translates into an estimated $83 billion in lost sales for US retailers.
- Negative customer service experiences loom larger than positive ones. It takes 12 positive customer experiences to negate the poor impression left behind from one unresolved, bad experience .
- Lack of effective customer service on social media seems to be spilling over into users' willingness to interact with brands at all on the channel. Just over half of consumers plan on either not contacting or reducing their contact with brands through social media this year.
- Providing the best-quality customer service is especially important to luxury retailers, whose customers expect a personalized experience to enhance the exclusivity that comes with luxury retail. Nearly half of all luxury consumers demand an apology, refund, or incentives following a poor customer service experience. Traditional channels like phone and email are still preferred by consumers, but new technologies — like messaging apps and live chat — are beginning to take off.
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