63 Incredible Customer Service Statistics [Infographic]

63 Incredible Customer Service Statistics Infographic Banner

1. The Big Picture in CS | 2. Expectations Are High | 3. The Channels Are Changing | 4. Increasing Popularity of Self Service |
5. Maximize the Positive | 6. Minimize the Negative | 7. It’s All About Retention | 8. Millennials Call it Wright 

The term customer service is a catch-all phrase that roughly equates to a customer’s experience with and perception of your brand. At the end of the day, are they left with a positive impression or a negative one?

Experts agree that customer service expectations are on the rise. Every year, businesses lose billions in potential revenue thanks to one thing: poor customer service. CS statistics point out that 1 out of every 26 customers complain about poor customer service, over 90% of those dissatisfied customers simply stop working with your business — and never come back.

Positive customer experiences, on the other hand, can help boost sales, retain customers and even bring in new ones. Your brand, in essence, is the personality you present to your customer, so creating an attractive and approachable personality works in your favor.

Understanding the variables that impact customer service means the difference between retaining and growing your customer base versus losing revenue due to lost customers. In this blog, we highlight 63 of the top customer service statistics you can leverage to ensure the former and prevent the latter.

Part 1 – Customer Service Statistics: The Big Picture

How important is creating a positive customer experience? These customer service facts say a lot! Proper CS doesn’t actually begin when a customer makes a purchase on your site or when they contact you with a question or complaint. Instead, it begins the very first moment that a consumer interacts with your website, follows you on social media, or sets foot in your store.

The most successful customer service strategies are those that work to anticipate the needs of a customer, instead of simply responding to them. You must anticipate when a customer is the most likely to need assistance, suggestions/recommendations, advice, or anything else. Engage your customers at the key points of their overall customer journeys. Find out more from the following statistics:

64% of Americans have contacted some form of customer service in 2017. Statista

64% of consumers consider customer experience more important than price when deciding to make a purchase with a brand. Gartner

A majority of customers prefer knowledge bases over all other self-service channels. Forrester

Most customers prefer knowledge bases over all other self-service channels

52% of people worldwide think that companies must take action based on feedback from their customers. Microsoft

75% of brands report that they are measuring customer engagement, but that they cannot give an exact definition of what it is. Kolsky

Companies with excellent customer experience drive revenues 4-8% higher than their competitors. Bain

It takes as many as 12 positive customer experiences with a company to compensate for a single negative experience. Glance

62% of customers prefer communicating with companies via email for customer service, while 48% of customers prefer phone calls, 42% opt for chat, and 42% fill out Contact US forms. HubSpot

62% of customers prefer communicating with companies via email, 48% prefer phone calls, 42% opt for chat, and 42% fill out Contact forms
Customer Service as a Whole
67% of people worldwide believe that customer service as a whole is improving

of people worldwide believe that customer service as a whole is improving. Microsoft

Part 2 – Customer Expectations Are High

Meeting consumer expectations is a challenge. Customers want answers quickly and expect businesses to offer multiple channels for contacting them. In today’s world — thanks especially to the meteoric rise of e-commerce and e-retail shops — customer service needs to be constant.

You need to find a way to make sure that you’re available to your customers on their schedules and terms, not on your own. You can do this by providing tracking numbers, clearly outlining your policies/shipping times on your website, improving website user experience, or even outsourcing some of your customer service representatives to those in different time zones.

The following customer service statistics point out that the majority of customers expect an immediate response to a sales, marketing, or other customer-service based query. This means you need to stress the importance of fast responses to your team, but also that you need software that will help you to manage all the requests you have coming in so that no one falls through the cracks.

70% of the entire customer journey is based on how customers feel they are being treated. McKinsey

44% of customers have left a brand after receiving poor service and as many as 89% have done so more than twice in a year’s time.
Smart Customer Service

When asking a customer service question, 90% of customers consider that an immediate response is important or very important. 60% of them define “immediate” as a 10-minute-or-less waiting time. HubSpot

Businesses hear back from only 4% of dissatisfied customers. The rest of the 96% abandon the brand and out of these, 91% never come back. “Understanding Customers” – Ruby Newell-Legner

72% of people expect customer service agents to “know who they are, what they have purchased and have insights into their previous engagements.” Microsoft

angry customer on hold

33% of customers feel most frustrated when they have to wait on hold. Another 33% are irritated if they have to repeat their questions to multiple support representatives. HubSpot

48% of consumers expect a response from brands within 24 hours when they ask a question on social media. Statista

23% of consumers seek out a face to face interaction when they have a complicated customer service issue.
American Express

67% of customers around the world believe that customer engagement levels have improved in the last 2 years. Ameyo

48% of consumers expect to receive special treatment for being a good customer. Accenture

66% of customers are willing to provide personal information to a company, but only if they believe that it has a certain value.  Accenture

Last year, 33% of customers have left businesses because they did not offer personalized services. Accenture

77% of customers view brands more favorably if they accept and proactively encourage feedback from customers.
Microsoft

After receiving poor customer service from a business, 89% of consumers have switched to a competitor. Harris Interactive

After receiving poor customer service from a business, 89% of consumers have switched to a competitor

Part 3 – Communication Channels Are Changing

Welcome to the modern Digital Age, in which technology and the Internet reign supreme. It seems as though we’re all connected to our smartphones on a regular basis. Businesses in many industries have learned to take advantage of this online marketplace.

You also need to make sure your customer service representatives focus on omnichannel engagement to make sure that questions aren’t just answered in a timely manner, but they’re answered on the medium that the customer is most likely to engage with. For example, younger customers may prefer communicating over email or social media, while those from older generations may wish to receive a letter or a phone call. Learn more about how communication channels are changing from these customer service statistics:

In America, 35% of consumers reported reaching out to businesses via social media in 2017. American Express

18% of customers expect to receive a response from a company’s social media within one hour. Statista

43% of Millennials use their mobile devices to contact customer service. Microsoft

74% of Americans have used the landline to contact customer service. Microsoft

48% of consumers expect to receive a response to questions and complaints they have placed to companies over social media within 24 hours. Statista

84% of American customers who have sent customer service requests over social media report receiving a response from the company.  Microsoft

84% of Americans who have sent customer service requests on social media report receiving a response

55% of people aged 18-34 consider social media to be an effective customer service channel, while as many as 75% of people aged 55 and over do not. Microsoft

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For more complex interactions like payment disputes or contract modifications, 40% of customers prefer speaking to a real person over the phone. American Express

Customer service statistics - 40% of customers want to speak to a real person over the phone

Part 4 –The Increasing Popularity of Self Service

With such a high percentage of consumers reaching out for customer service, businesses need to offer a range of customer service approaches. The struggle is to balance the needs of “old school” consumers who might, for instance, prefer phone calls, but also implement modern CS technology that speak to the digital generation, such as chatbots. Self-service is on high demand and it is quickly becoming the staple in customer service.

Automating customer service communication and switching to self-service can be intimidating. It may seem like you’re undermining the value of human interaction. Still, it’s important to consider that interactions with customers are opportunity. It’s a chance for you to show you care about them. Don’t treat customer service software as a replacement for human connectivity. Instead, go about it a different way.

Remember that you can personalize those customer interactions and use analytical data to be proactive about generating specific experiences for different customers. Learn more about how customers feel about automation and self-service from these CS statistics:

By 2020, 85% of customer service interactions will be automated. Ameyo

77% of consumers report having used a self-service support portal. Microsoft

30% of consumers say not being able to reach a human when reaching out to customer service is the most frustrating part of a bad CS experience. Microsoft

30% of consumers say not being able to reach a human in customer service is frustrating
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Only 12% of American customers have reported that they couldn’t find the information they were seeking in self-service portals. Microsoft

30% of customers have rated their interactions with chatbots as “very effective” in dealing with customer service issues. Microsoft

Part 5 – Maximize the positive

According to customer service statistics, most buying experiences are based on how customers feel they are being treated. Each positive customer experience is a step forward for your business. Don’t underestimate the value of every single customer interaction. Those interactions have a direct correlation to your business’s profit margins.

Whether they’re buying from you or reaching out with a question, consider it an opportunity to enhance your reputation. Don’t cut corners when you’re developing a positive customer experience for your business. Customers want to feel valued and appreciated. By enabling customer experience software, you’re optimizing your business’s transactions.

Satisfied American customers share their positive experiences with 11 people, while dissatisfied customers share their negative experiences with 15 people. American Express

73% of customers consider their experience memorable if they interact with friendly employees or customer service representative.  Harris Interactive

More people read positive customer service reviews than negative ones by 6%. Dimensional Research

77% of customers recommend a brand to a friend after a positive experience

77% of customers will recommend a brand to a friend after a single positive experience. Temkin Group

30% of customers believe that the most important aspect of customer service is speaking to a knowledgeable and friendly representative. Microsoft

90% of customers are influenced by positive reviews when making a purchase
of customers are influenced by positive reviews when making a purchase.  Dimensional Research
happy customer

Part 6 – Minimize the negative

Your marketing team spent a lot of time and energy developing your company brand. Now, why would you throw all of that hard work away with negative customer experiences? This key factor is the most significant reason to provide the best possible customer service. If you want to keep up with your competitors, you have to streamline these processes on a consistent basis.

You need to think about interactions with customers as a reflection of your company’s overall brand. That branding strategy needs all the positivity you can muster if you want to stay ahead of the game in the long run. Another important focus point is avoiding negative customer service experience that reflect poorly on your brand and ultimately deter potential customers. How much damage can negative customer experiences do? Find out from these customer service statistics:

The number one frustration with customer service for 12% of Americans is “lack of speed.” Statista

After a negative experience with a brand’s customer service, 40% of consumers will recommend their friends not frequent that brand. Dimensional Research

After a negative customer service experience, 39% of customers will avoid a company for as long as 2 years. Dimensional Research

As many as 91% of dissatisfied customers will just leave the brand without issuing a complaint. Only 1 in 26 customers will actually complain. Kolsky

72% of consumers regard having to explain their problem to multiple representatives as poor customer service. Dimensional Research

56% of people around the world have stopped doing business with a company because of a poor customer service experience. Microsoft

After a poor customer service experience, the majority of Americans have decided to not complete a purchase. American Express

After a poor customer service experience, most Americans will not complete a purchase

Part 7 – It’s All About Retention

Your most important customers are those you already have. Not only do they buy and buy again, but they also tell their friends how much they loved your brand. Customer service statistics show that retention is extremely valuable for any business because it can significantly boost revenue. Not only does it inspire more purchases, but it generates trustworthy advertising for your company that is entirely free of charge. Your satisfied customers are your brand’s advocates and they can do wonders for you.

This is yet another reason why you should go the extra mile to keep them satisfied. To do this, you have to understand what they need from you. Mapping the customer journey allows you to increase engagement with your customers before they even make a sale. You’ll know immediately when, where, and how to communicate with them. You’ll identify key touchpoints and make sure the customer finds exactly what they need — and completes their purchase.

93% of customers are likely to make repeat purchases with companies that offer excellent customer service. HubSpot

93% of customers make repeat purchases with companies that offer excellent customer service

87% of customers who have had a positive experience with a brand will make another purchase from the company, while only 18% of customers who had a negative experience will consider making a second purchase. Forbes

Investing in new customers is 5-25% more expensive than retaining existing ones. Harvard Business Review

38% will stop doing business with a company if they consider their personalization efforts to be “creepy.” Gartner

Consumers are willing to spend 17% more on a company that offers outstanding customer service. American Express

As many as 44% of customers worry that they’ve missed a better option (product, service, or offer) every time they make a purchase. Gartner

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Increasing customer retention rates by just 5% can increase profits by 25-95%. Bain

Customer service statistics - Increasing customer retention rates can increase profits

Part 8 – Millennials Call it Wright

Always connected to the internet, and constantly on the run, tech-savvy Millennials are now the biggest consumer demographic in North America and are expected to make up to 30% of US retail sales this year.  Due to these numbers, they wield considerable influence in how consumers interact with brands, and Customer Service plays a vital role in managing their growing expectations. 

Millennials are much more likely to Google a business, to text rather than call, to interact on Social Media or post online reviews and recommendations than their predecessors. They expect personalized service and higher engagement level from companies. Also called the DIY generation, Millennials often prefer to find information and solve things on their own rather than through direct service. Be sure to reach out and listen to this influential generation on all these digital channels; they like their opinions to be heard. 

Millennials are the only demographic in America who will tell more people about a positive customer service experience rather than a bad one. American Express

As many as 50% of millennials have complained about a brand on social media. Microsoft

31% of millennials report contacting a company on Twitter. Forrester

63% of millennials begin their interaction with customer service online. Microsoft

84% of millennials believe that companies are meeting or even exceeding their service expectations. American Express

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74% of millennials have reported that their perception of a brand has improved when they found out that the company responds to their customers’ social media inquiries. Microsoft

Customer service statistics - 74% of millennials prefer brands that respond to social media inquiries

Up Your Game with customer service statistics 

Though defining what counts as customer service can be daunting, these customer service statistics create a clear picture of what organizations can do to improve their bottom lines. Whether it’s investing in new channels of communication or training call center agents, there are tangible ways to enhance customer service.

If you’d like guidance in improving your customer service game, contact Ecrion today! We’d love to help!

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