Why Pay Attention To Your Customer Service? Because It Will Impact Your Revenue

Enterprises must pay attention to the quality of customer service they offer because:

  • Good customer experiences boost repurchase probability and long-term loyalty. Customer loyalty has quantifiable economic benefits as measured over three dimensions: willingness to consider another purchase, likelihood to switch business to a competitor, and likelihood to recommend to a friend or colleague.
  • Poor customer service experiences lead to increased service costs. The cost of failing to meet these expectations is high: 75% of consumers move to another channel when online customer service fails, incurring costs.
  • Poor customer service experiences risk customer defection and revenue losses. Customers who have poor service experiences – estimated at 30% – are at risk of defecting, even if they do not complain – and the revenue impact of churn can be easily quantified.  
  • Poor customer experiences can quickly damage the reputation of your brand. Customers who are disappointed at the service they receive are quick to voice their disappointment, which is amplified over the social channels and can erode brand value. Forrester’s Social Technographics® ladder shows 68% of B2C consumers and 80% of B2B customers fall into the “spectator” category, which consists of people who read negative comments posted on social media sites.
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Dreamforce Musings (A Month Late)

I go to many industry events in my job, and as the fall event season passes its peak, there is one event that has stayed with me a month after it was hosted. It's Dreamforce – salesforce.com’s annual event, which was held on Sept 18-21 in San Francisco and which attracted more than 90,000 users (per salesforce.com's count). It wasn’t the size that made this event noteworthy, even though it was the biggest event that salesforce.com had ever hosted. It wasn’t the energy that permeated the venue, the numerous DJs, the MC Hammer performance before Marc Benioff's keynote, or even the theatre that surrounded every product keynote. It was the “positive-ness” that customers, both big and small, voiced at the event – positive-ness that made you believe in the “social enterprise” vision of the company, and that the company could deliver its ability to connect customers, partners, employees, and even products together.

Instead of focusing on features, functions, and product road maps, salesforce.com kept most messaging at the high level, hitting on the notes of “what do these applications do for me” and “why should I be interested?” Salesforce.com used customers and customer videos from the likes of Activision, Rossignol, GE, and Burberry, to name a few, to describe the real impact that salesforce.com has had on these companies. Some stories were down to earth – like Activision’s use of social channels to provide customer service to its customers. Some were more extreme – like GE’s using Chatter communities to monitor the health and performance of jet engines (engineers and products collaborating??).

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