As per the Small Business Administration, poor customer service is the number one reason that people put an end to doing business with a company. And since several customers never let you know they are unhappy, it is often too late for you to right the situation. Thus, effective customer service must be a critical component in your business’s method of operation. Joseph Stone Capital says that customers may not tell you that they have had a bad experience with your business but they will tell their family, friends, and co-workers. Many will even spread the word with a poor rating on several review services for others to see. The effects of poor customer service wave far beyond the revenue lost with that one person.
Customers are the foundation of success for any business, and if clients are not treated right, the business can lose its reason for existence. If you are not taking care of your clients, and your business becomes known for poor customer service, you can expect several things to happen and none of them is good news for your business.
Joseph Stone Capital talks about how customer complaints can influence a business:
When your customer has a complaint, you lose not only that revenue, but also you potentially lose the word-of-mouth of advertising that only a satisfied customer can provide. It takes more effort to attract new customers than it does to keep hold of a valued one, so shedding customers is something no business can afford.
It begins when dissatisfied customers talk to people they know about the poor service they got, and it rises when they express these feelings online. Not only can tweets, Facebook posts, and bad Yelp reviews go viral, but these statements can also last everlastingly, potentially becoming only a Google search away from tarnishing your business reputation.
Once a business is known for poor customer service, it is hard if not impossible to repair the image. The results go beyond the loss of customers because other businesses do not want to partner or associate with a business that is sliding downward in customer retention. If you cannot trust a business to take care of its customers, it is even harder to trust that business’ agreements with its partners.
A Customer complaint is bad for your bottom line. The dwindling customer base results in fewer sales, which results indirect loss of revenue. Add to that the amplified costs from employee turnover. A business that tries to salvage its repute by boosting advertising and public relations efforts will have additional costs added to the mix. If no effort is made to perk up service to get those lost customers back, the result will be a descending spiral that can eventually lead to you losing your business.
Company Name: Joseph Stone Capital LLC
Contact Person: Media Relations
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State: NY 11501
Country: United States