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Home > CRM News, Industry News Analysis > Poor Customer Service Costs Billions

Poor Customer Service Costs Billions


A new study, “The Cost of Poor Customer Service: The Economic Impact of the Customer Experience and Engagement,” may finally put the damage bad service can create into a language executive boards understand : Dollars and Cents. According to the survey of 8,880 consumers across 16 countries, poor customer service cost an aggregate of $338.5 billion per year, the average value of each lost relationship across all countries surveyed costing $243.

According to study findings, companies in the financial services and telecommunications sectors should take special notice. Statistics reveal that financial services firms lost more than $44 billion, while cable and satellite television providers lost upwards of $37 billion. Wireless carriers and Internet service providers each lost $36 billion, with landline carriers posting $33 billion in lost revenues.

Financial services and otherwise, the most significant reasons for poor service according to the study are:

  • being trapped in automated self-service;
  • waiting too long for service;
  • callers having to repeat themselves; and
  • customer service representatives lacking the skills to answer inquiries.

Consequently, what then ended up at the top of many respondents’ wish lists for customer service improvements included better integration between self-service and assisted service, including voice and Web.

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