3C Contact Services Comments on Study Showing Poor Customer Service Erodes Brand Loyalty

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3C Contact Services (3CContactServices.com), North America’s premier cost-effective provider of contact center solutions for small- and medium-sized businesses, is weighing in on a recent study that shows poor customer service erodes brand loyalty; sending potential customers to the competition.

According to a recent study, 30% of consumers have become less loyal to brands over the last five years, with a quarter saying poor customer service is to blame. Once-loyal customers get frustrated if they have to repeat their issues or complaints to different people, and nearly half of all respondents said they had to do this the last time they communicated with a brand. (Source: “Poor customer service ‘eroding’ retail brand loyalty, says report,” Business Reporter web site, August 20, 2014; http://business-reporter.co.uk/2014/08/poor-customer-service-eroding-retail-brand-loyalty-says-report/.)

The survey also found that complaints from customers under the age of 35 are not taken as seriously by brands. Less than a third of this age group (30%) had their complaints resolved after one interaction, while five percent had to repeat their complaint on at least five occasions. At the same time, 64% of customers over the age of 65 did not have to repeat their complaints; believing their issues were resolved after the first contact.

“Finding and attracting customers is essential for any business, but it’s more important to turn those clients into loyal customers,” says Rick Johnson, president of 3C Contact Services. “While there is no hard and fast number, conventional wisdom holds that it costs between 4 and 10 times more to acquire a customer than keep an existing one.”

Johnson explains that revenues and market share increase when loyal customers repeat purchases and recommend brands to others; in fact, a five percent increase in retention has been shown to yield profit increases of 25% to 95%. This suggests that there is an incredibly strong connection between the brand and customers that needs to be understood and managed effectively and efficiently. (Source: “Cost of customer acquisition vs customer retention,” Communications Advertising and Marketing Education Foundation web site, March 2010; www.camfoundation.com/PDF/Cost-of-customer-acquisition-vs-customer-retention.pdf.)

He adds that the fact of the matter is that satisfied customers improve retention and drive profitability. Brands that have a minimum 90% customer satisfaction rate achieved an annual 6.1% growth in service revenue, 3.7% growth in overall revenue, and an 89% level of customer retention. (Source: Timms, S., “What’s the Cost of Customer Service Frustration?,” ClickSoftware web site, July 15, 2014; http://blogs.clicksoftware.com/clickipedia/whats-the-cost-of-customer-service-frustration/?utm_source=PR_customer_survey.)

“3C Contact Services surpasses all industry standards with a customer satisfaction score of 97%,” Johnson concludes. “Businesses that use 3C Contact Services have also seen their client retention rates increase by 33% and their save rate improve by 43%.”

3C Contact Services provides its clients with top-quality, best-of-class outsourced contact center services. 3C Contact Services’ customizable solutions allow companies to increase profitability while increasing market share and business intelligence and maximizing customer relationships. Specializing in customer retention strategies, 3C Contact Services has a dedicated and well-trained team of customer support specialists who provide excellent service that is delivered consistently and in a timely and cost-effective manner. To learn more about 3C Contact Services, visit the company’s web site at www.3CContactServices.com or contact 3C Contact Services at 1-888-353-2335 or via e-mail at info@3CContactServices.com.

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