Consequences of inadequate customer service – and how to fix it!

Inadequate customer service is arguably the most detrimental to any business. A damaged reputation is hard to work around, even with the most exceptional marketing strategy. What constitutes good service is however up for interpretation. It’s normal to encounter customers that are just impossible to deal with, but it doesn’t necessarily constitute bad service. But there are a few actions that do go under the term “bad service”; long wait times, poor attention to detail, lack of experience, and insincere interactions.

Customer service that prove guilty of the above face a lot of negative consequences, with many of which can lead to a company’s failure. But let’s flip the page and focus on how these service habits can be corrected to take action quickly. In this blogpost we are going to discuss 5 side effects of inadequate customer service and what you can do to reverse the damage.

1. An impaired reputation

Your reputation is of utmost value, especially with the ever-so brutally honest internet climate today. If your customer service is bad, you can be sure to hear when you’ve hit a bad streak. Customers are quick and used to writing reviews, and don’t fall short when writing a negative one. In addition to lengthy and critical responses, they also tend to ventilate to friends and family on social media, which only leaves you with more damage to clean up. If you think people don’t read reviews, think again, respondents are either partially or completely influenced by online reviews before buying something. Not only does this decrease overall sales, but it is extremely harmful to the word-of-mouth marketing, which is arguably the most valuable outlet a brand can have.

How to repair it

While it may seem easiest to ride it out, it’s important to take responsibility and step up. Respond publicly to negative reviews and accept responsibility while making it known that you’re doing everything possible to amend the wrongdoing. This can truly do wonders in terms of repair. Another tip is to always make sure you take the discussion privately to avoid a back and forth war where risk of more damage only increases. It doesn’t just stop here though, after you’ve answered, address the problems internally. Set a higher standard and make it a priority to never land in the same position again. This can help you improve your reputation in the future but also help you win a few customers back that had poor experiences.

2. Landing leads

Although the term customer service applies to current customers, it also applies to future ones. Ever reached out to a business and just never heard back? We’re many in the same boat and it’s detrimental in creating the leads your business needs. Bad customer service kills conversation as well as conversion and the customer journey tends to end right then and there if they don’t feel wanted or appreciated. On the other hand, great customer service from the beginning can leave an awesome first impression and get people excited about your company.

How to repair it

If you’re not already using a CRM, the time is now! A Customer Relationship Management (CRM) can help you manage customer data and keep track of interactions. It supports sales management and delivers actionable insights and can often be integrated with social media and communication for your team. A good CRM can help sales reps respond quickly with all the information they need to help track engagement and in turn create leads. It’s essentially designed to improve customer relationships and also customer lifetime value.

At Soluno we can integrate your company telephony with a range of CRM systems including Freshdesk and Hubspot. By integrating your corporate telephony with your CRM systems, you can help your customers in a seamless way. An integration between your CRM system and our powerful cloud PBX allows you to increase the level of service while simplifying the work your employees do.

3. Lower lifetime value

By now we probably agree that it takes some good customer service initiatives to keep potential customers interested. But the same applies to keeping your current customers. Customers are usually willing to pay more if the customer service is up to par with their needs and can solve their complaints. Meanwhile, bad customer service can destroy your average customer lifetime value and in turn negatively affect your marketing budget to attract more customers.

How to repair it

Develop a consistent and creative retention strategy by providing for example webinars, how to video, FAQ pages, special deals, or newsletters. All of the above can be used to catch up on customer needs and do that little extra when resolving a complaint or question. Make it known that you’re consistently trying to amend wrongdoing as well as prevent future. Try to always be on top of complaints by providing answers to the most frequently asked questions, in various creative outlets.

4. Losing your most trusted employees

Bad customer service has negative effects in all areas, and this even applies to your employees. When staff is forced to pick up the pieces from inadequate company efforts or customers service, it only leads to stress and dissatisfaction from the people you rely on the most. If your company develops a bad reputation, you can be sure that your top performers are the next to leave.

How to repair it

Reward and recognise your employees and their efforts on a regular basis. Great customer service starts with great company culture and motivated employees. Average employees will perform to the level considered normal, and when bad customer service is normal, they naturally don’t feel incentivised to improve. But if you have a culture that embraces quick, friendly and professional manners – it’s expected to set the bar for others, including customer service. There are only positive side effects of a great company culture. And a few include; attracting more likeminded employees and a reason to stick around.

5. Profit crossroad

If you’ve had bad customer service for a while, you might soon start to experience a negative turn in your profits. Your reputation causes you to lose overall sales, and when your loyal customers leave – you’re left at the crossroad empty handed without customers or money to do anything about it. You have to either decide to cut costs and ride it out, or double down on marketing for new customers. But if you cut costs to make up for lack of revenue you still have to improve your customer service through recruitment. On the other hand, outspending poor service might attract some new customers, but your inadequate support still remain just waiting to provide the same bad service to the new customer base.

How to repair

Address your customer service early and often. Send our regular surveys to both your customers and your employees. Stay on top of your service, whether it be from an employee’s or customer’s standpoint. The cases should never be considered a one-time problem to fix but should be carefully analysed and shared across all departments.

The traditional saying “the customer is always right” rings true til this day. With the right balance of quick action, sincere support and experience, you can truly satisfy and retain your customers even in the stickiest situations. But maybe you need a little help on the way, maybe you don’t even have a customer service strategy, or you don’t have a CRM system to track leads. We are experts in the field and can help you create a solution to fit all your needs.

How we can help you elevate your customer service

We focus on corporate customers with telephony solutions that are suitable for both large and small companies. Our solutions are designed to help you meet your customers as professionally as possible with the latest technology in telecom. We believe that in order to retain great customer service, you need to make informative actions with the right tools. We have therefore created a complete bundle to provide your coworkers with the prerequisites needed to take your service to the next level. Easier and more effective customer management doesn’t just produce more completed tickets, but also more satisfied customers and employees.

Our customer service includes three features;

Who’s calling integrates your CRM systems with the PBX in order to raise your level of service. It ensures that you have all the information you need with customer cards directly displayed when a customers calls.

Virtual Phone Q facilitates work during large call volumes. Callers will have the option of a bot taking their place in the Q.  Due to the fact that the caller is able to leave their phone number, the caller will not be stuck in a telephone queue until one of your agents are available. Your agents also get a calmer work environment as Virtual Phone Q minimizes calling phones in the background.

Web Callback, helps existing and new customers to get in touch with you in a convenient way. They do not have to wait in any phone queues as they can instead get a callback via a simple form on your website. The customer can choose whether the callback should be made immediately or at a specific time.

Interested in how we can help you improve your customer service? Contact us and we will gladly help you out!

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