The journey towards finding an ideal service solution is like walking through a maze with multiple routes that can make or break you. While most people throughout the world think they know what customer service is, many myths still abound. According to reports published by Salesforce, trak.in, and theglobeandmail, these are the five most commonly found myths on customer service that can become roadblocks in your journey.
The complaint myth: Most customers complain when they encounter a problem.
Myth Busted: Less than 25% of customers complain when they have an issue.
Companies pour millions of dollars into making sure their customers have a chance to complain. The fact is 70-90% customers don’t even bother to use any of these avenues to complain. Instead of complaining, they often tell an average of three other people bad things about the business, and that’s why it is very important to address this issue.
The quantity myth: If we get more complaints, we have to spend more money to keep our customers happy.
Myth Busted: 80% of service calls are no-brainers to solve and are resolved within minutes. A clear believable explanation often works better to retain loyalty than offering a cash refund or compensation. In the long run it is always better to have an open environment with more customers calling in and getting their answers, than to lose their business.
The “no news is good news” myth: Fewer calls mean we’re giving better service and better experience to our customers.
Myth Busted: Fewer complaints can mean a large pool of silent unhappy customers. A customer gives you an opportunity to put things right. Handling a customer complaint well can cement a greater loyalty. Unless you interact more often with customers to find out the real numbers of problems, you will not be able to make improvements. Fewer calls can eventually lead to lower revenue and profits.
The profit myth: More calls mean lower profits.
Myth Busted: The ROI for every additional complaint handled and resolved is at least 100% more. Well-managed companies see customer complaints as a way to learn. Companies need to pay attention to these complaints and dedicate efforts to preventing whatever caused the complaints in the first place. A mere 5% increase in customer retention increases profits up to 125%. When people call and complain, there is a chance of retaining their loyalty.
The investment myth: It is better to invest in marketing and advertising than customer service.
Myth Busted: It costs at least 5x as much to win a new customer as it does to keep an old one. Whilst companies should explore ways to improve their offerings, it is important to retain good customer service. Without superior customer service, efforts to improve product quality will be wasted. The best way to grow your business is to keep the customers you already have, by embracing what they have to say.
It’s an exciting time for companies and customers alike. People are willing to spend a lot more on good customer service. By avoiding these five common myths, here’s a golden chance for organizations to hit the bulls eye in their maze!