Poor customer service costing UK companies £12bn

22 May 2013

Posted by Satvir Bhullar

UK businesses are losing £12 billion a year because of poor customer service practices.

This is according to research carried out by NewVoiceMedia, which found that half of consumers are taking their trade elsewhere after being left underwhelmed by the service they have received.

If companies do not leave their current customer base feeling valued and appreciated, they will struggle to reach a wider target audience. Indeed, this is even more important in today's digital age, as negative comments can spread like wildfire on the internet.

Of those people who have switched on the basis of poor customer service, 92 per cent have done so once or twice in the last year, while 49 per cent do not even bother calling a business in case they are put on hold.

Jonathan Gale, Chief Executive Officer at NewVoiceMedia, pointed out how customers have more power than ever before as they have a strong influence on how successful a business is going to be.

"Customer experience is a key differentiator. By doing it well, organizations can drive the customer acquisition, retention and efficiency that make leading companies successful," he added.

The key to business is loyalty. If companies can encourage people to keep coming back with their trade, they are more likely to be successful in the long-term. In terms of a positive customer experience, 74 per cent of respondents said it would make them be more loyal, while 71 per cent would recommend a company to others.

One way firms can engage with their target audience is through social media. Channels such as Facebook and Twitter offer real-time interaction, while the medium is also great for reaching a wider audience.

Consumers are increasingly comfortable interacting with brands over the internet and so businesses should not be afraid to respond to queries through emails or social media. Positive experiences of this nature could also boost brand awareness and this can only be a positive thing.

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