Businesses losing $8 billion a year through dodgy customer service

Aussie businesses are losing a massive $8 billion a year due to bad customer service, according to new research from NewVoiceMedia.

 

Aussie businesses are losing a massive $8 billion a year due to bad customer service, according to new research from NewVoiceMedia.

 

NewVoiceMedia surveyed more than 2,000 adult consumers from across the country and found that 58 per cent are taking their business elsewhere as a result of inadequate customer service – and of those, 92 per cent have switched at least once or twice in the last year. According to the study, 55 per cent 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. According to NewVoiceMedia, the top frustrationscausing consumers to walk away from a business 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, 58 per cent of customers would never use that company again and would tell friends and colleagues to avoid said business.

 

As further evidence that complaints can’t be kept quiet in the digital age, 16 per cent of consumers admit they would take out their revenge online by posting a review or complaining via social media. Among the 16-34 year-olds, this figure soared to 53 per cent. The research also indicated that 16-24 year-olds are the most tolerant when it comes to bad interactions, while 35-44 year-olds are the least tolerant.

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