Good customer service is important to help retain customers and ensure loyalty.
 
But a recent survey found that businesses in Australia, New Zealand and India experience significant losses every year because of poor customer service over the Internet, in the contact center, or through mobile devices.

  

Poor customer service totals more than $5.6 billion in Australia, New Zealand and India, as consumers abandon transactions or severe relationships when companies don’t meet their expectations, according to the survey. Roughly one-third of that amount leads to reduced consumer spending that is not given to any company.

 

Separately, in Australia, businesses lose more than $2.19 billion a year because of poor customer service, the survey found, whereas poor service accounts for more than $995.6 million in New Zealand. In India, the cost of poor customer service totals more than $2.46 billion.

 

Respondents said some of key annoyances include automated or difficult to navigate self service programs that don't let them reach a human agent. In addition, customers complained of working with agents who are not allowed to make decisions, and having to repeat information every time their call is forwarded to another department.

 

Greenfield Online conducted the 28-question survey of 500 consumers in each Australia, New Zealand and India. The survey was sponsored by Genesys Telecommunications Laboratories, an Alcatel-Lucent company with Datamonitor to define a method for accurately measuring the value of a customer experience across all communication channels and the cost of poor customer service.

 

According to the survey, 72 percent of customers in Australia said they ended a relationship because of to poor customer service, and 56 percent had an experience that made them more likely to do so in the past year. Similarly in New Zealand, 72 percent of consumers said poor customer service put an end to their relationship and 58 percent had an experience that made them more likely to do so in the past year. Meanwhile, in India, 56 percent of consumers said they ended a relationship due to poor service, and 50 percent had an experience that made them more likely to do so in the past year, the survey said.

 

In Australia, most transactions, 70 percent, abandoned due to poor customer service turn into business for a competitor, but 30 percent are lost to all companies, compared to New Zealand where 62 percent of customers turned to a competitor and 38 percent is lost to all companies. In India, poor service force 62 percent of respondents to go to another company and 38 percent to abandon their business to all companies.

 

Survey responds in all three countries said they prefer to deal with a company by phone. In Australia, the phone is still the preferred channel of interaction at 64 percent followed by e-mail at 22 percent and Web self-service at only 8 percent. Some 56 percent of New Zealand residents opt for customer service via phone, 28 percent like e-mail and 10 percent prefer Web self-service. In India, 60 percent of respondents said they prefer the phone, but only 17 percent said they like e-mail and 13 percent favor SMS via mobile phone, the survey said.

 

When it comes to automated self service, 39 percent of Australia consumers said it is the most challenging communication channel, followed by call centers at 22 percent and paper mail at 13 percent. A larger number of New Zealand consumers, 41 percent, said automated self-service or voice recognition service was the most frustrating. Call centers at 21 percent followed.

 

Meanwhile in India, 35 percent consumers said the most challenging communication channel is live contact center agents followed by e-mail at 14 percent and automated self-service or voice recognition at 12 percent.

 

Another study by RightNow Technologies (News - Alert) echoed some of these findings. It said 87 percent of consumers have stopped doing business with a company due to poor service – up from 68 percent in 2006, and half of all customers will “always” or “often” pay more for a better customer experience, even in a down economy.

 

 

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