One trillion dollars. Well, $1.6 trillion to be exact. That’s the estimated loss from customers switching to another company due to poor service, according to research from Accenture. Keeping customers happy -- and loyal! – isn’t just the right thing to do, it’s essential in protecting your bottom line.
When it comes to your customer mitigation process, options not only keep your customers happy (which we saw in our previous blog on the power of choice, but they also can keep your senior leadership happy by reducing costs. Here are four cost-saving measures that reinforce the power, and economics, of choice.
Less out of pocket
Connexions Loyalty customer data shows that 82 percent of travelers chose gift card compensation over a travel voucher, even if the gift card is worth less than the travel voucher. By giving customers an option, a company may be able to compensate with a lower monetary value, but have greater impact because of the offer’s relevancy to the consumer.
Empowering customer service agents to quickly resolve a complaint limits the exposure of a negative experience from being shared or communicated beyond the environment of the issue. This may be hard to attribute a fixed number to, but it’s safe to say the less damage done by word of mouth (think social platforms), the more brand equity you retain and the more customer lifetime value you grow.
Less revenue lost
NewVoiceMedia found that companies in the U.S. lose $62 billion a year due to poor customer service. The more time that passes, the more likely your customer will get aggravated and take their business somewhere else. If an agent can resolve a customer service issue right then and there – without it escalating – you can potentially avoid a ripple effect through your organization’s bottom line.
You may be saying, this is great, but what do I do next? Try it out. Conduct a small pilot test, giving internal credits or vouchers in addition to a selection of gift cards and see what your results are. After a period of time, analyze your findings. How many customers have stayed? Have any grown their business with you? What were your usage rates – and what was the value of those interactions?
We live in a competitive, fast-paced world, one where consumers have options in almost every facet of their lives. They have the ultimate power – choice. How they spend their money is important to them, so demonstrate how important they are by apologizing quickly and rectifying a negative interaction in a sincere way.
In the end, your customers – and your bottom line – will thank you.