Study: 87 Percent of Customers Leave Due to Poor Service

By David Sims

TMCnet Contributing Editor

 

According to a new study from RightNow Technologies (News - Alert) and Harris Interactive, the 2008 “Customer Experience Impact Report,” customer service matters more than ever.

 

“A few years ago customers wanted good service, today they demand it,” the study’s authors say. ”They are telling others about bad experiences more each year, and despite the economy, good service still tops product quality and low prices.”   

 

Among the study’s findings are that 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.

 

When recommending a company, the study found, customer service is more important (58 percent) than low prices (44 percent) and top quality products/services (43 percent).

 

And people are hearing about bad customer service: “Blogging about a negative customer experience is on the rise: 22 percent of consumers have posted negative feedback about a company, up from 13 percent last year.”

 

This the third annual survey looked at “how more than 2,000 U.S. adults engage with companies, both online and via phone, what they find frustrating and how that affects them, and also what they would change about current customer service practices, including free-text responses,” study officials said.

 

In September, RightNow Technologies announced the publication of a book, “Eight to Great: Eight Steps to Delivering an Exceptional Customer Experience,” authored by RightNow Chief Executive Officer and founder Greg Gianforte.

 

Company officials said the book outlines “how companies can deliver a better customer experience while simultaneously reducing operating costs.”

 

Eight to Great “details eight straightforward steps any organization can take to create and deliver world-class customer experiences.  Based on best practices of industry leaders across a range of markets, the book includes examples from organizations that have mastered the Eight to Great approach and transformed the customer experiences they offer,” company officials say.

 

“Providing an excellent customer experience can be the single best way for a company to set itself apart from competitors, it can be a critical, strategic advantage,” Gianforte said.  “My hope and reason for writing ‘Eight to Great’ is that other organizations can use

the same methods to improve the experiences they provide to customers.”