Survey: Countries show poor customer service costs billions in lost revenue

San Francisco The cost of poor customer service in 16 major industrialized economies causes businesses to lose a total of $338.5 billion each year when customers defect and abandon their purchases as a direct result of poor customer experiences, according to a new international survey of consumers called, “The Cost of Poor Customer Service: The Economic Impact of the Customer Experience and Engagement.”

The hardest hit industries across all countries surveyed are financial services, cable and satellite TV providers, and a variety of telecommunications companies. The average value of each lost relationship across all countries surveyed is $243 per year.

Losses were defined as transactions taken to a competitor (63% of the total) and transactions abandoned entirely (37% of the total). The survey asked consumers their priorities and the changes most needed to improve the quality of their customer service experiences. Among those that topped the list are Australia; Brazil; Canada; China; Germany; Mexico; Russia; United Kingdom; and United States.

Consumers across all countries cited key reasons that they leave. The survey found that self-service that is not intelligently integrated with assisted service is a key area of concern. Consumers feel the most significant root causes of poor service are being trapped in automated self-service, having to wait too long for service, repeating themselves, and representatives that lack the skills to answer their inquiry.