When it comes to customer retention ... two strikes and you’re out

As far as retaining customers that is.  Consumers say they will now tolerate a maximum of two negative customer service experiences before taking their business elsewhere, according to a US customer service survey commissioned by billing and CRM products and services provider, Amdocs.

The survey, which examined the opinions of 1,000 consumers about recent experiences in the banking, cable, retail, and telecommunications industries, showed that consumers are increasingly holding companies accountable for poor customer service, telling their service providers that they “will not take it any more” and that they will change providers if they are given anything but good service.

Rather be in a jam

According to the survey, the majority of consumers (over 75%) would hang up on a call placed to customer service after waiting on hold for longer than five minutes, and 80% of consumers polled would rather visit the dentist, pay their tax bill, or sit in a traffic jam than deal with an unhelpful customer service representative!

But the real worry for businesses providing less-than-satisfactory customer service is that fully 75% of respondents said that they tell friends and family about negative experiences. This is compounded by the fact that 85% said that negative customer service experiences drives them to switch providers. Consumers generally believe – whether rightly or wrongly – that the loss of their business is the biggest motivator for companies to improve their customer service.

The Wise Marketer