Saturday, May 25, 2024

[Latest] 46 Customer Service Statistics You Should Know in 2024

Customer service experience has taken a central stage in today’s digital marketplace. It has become the main differentiator between you and your competitors. Besides that, it is directly linked to customer satisfaction, retention, and sales.

Therefore, businesses today are looking to provide the exact customer service experience customers want. This guide presents 46 valuable customer service statistics to consider in 2024 for strategic planning. So, let’s get right to it!

  1. Growing Importance of Customer Service Excellence
  2. Customer Service & ROI
  3. Bad Customer Service & Its Consequences
  4. Customers’ Expectations for Customer Service
  5. Customer Service & The Influence of Personal Touch
  6. Customer Service & the Influence of Word-of-Mouth Marketing
  7. Omnichannel Customer Service
  8. Wrapping Up

Growing Importance of Customer Service Excellence

Business success is now considered directly linked with excellent customer service, as it leads to retention/loyalty, more sales, and word-of-mouth marketing.

1. 80% of companies are planning to lift up their CX investment. (Zendesk)

2. B2C customer-first businesses are witnessing double revenue growth than non-customer-first businesses. (Forrester)

3. Simplified customer service is one of the top priorities of business leaders for the coming year. (McKinsey & Company)

4. Customer experience management market is projected to grow at a CAGR of 15.4% during 2023-2030. (Grand View Research)

5. 60% of customer care leaders agreed on the growth of the total number of calls, which is likely to continue growing. (McKinsey & Company)

6. 80% of organizations consider CX as the factor of competition between them. (Gartner)

7. The focus on enhancing customer experience has grown 19% for customer care leaders since 2019. (McKinsey & Company)

Customer Service & ROI

Customer service has become a key driver of ROI in today’s digital landscape. Excellent customer service can have the same level of impact as an excellent marketing strategy or sales funnel.

8. 89% of customers are very likely to make another purchase with a brand after a positive CX experience. (Salesforce)

9. 68% of customers are willing to pay a bit for products/services from a brand that is reputed for excellent customer service experience. (HubSpot)

10. 93% of customers are very likely to make repeat purchases with brands that offer excellent customer service. (HubSpot)

11. Good customer service turns 86% of one-time customers into long-term brand champions. (Khoros)

12. A 5% increase in customer retention rates can increase profits by 25%-95%. (Bain and Company)

13. 78% of consumers will do business with the company again after a mistake if the company offers excellent customer service. (Salesforce)

14. 3 out of 5 consumers report good customer service as crucial to have loyalty to the brand. (Zendesk)

15. Investing in new customers is 5 to 25 times more expensive than retaining existing ones. (Invesp)

16. Consumers rating the brand’s service as “good” are 38% more likely to recommend it to others. (Qualtrics XM Institute)

17. 83% of customers acknowledge that they are more loyal to businesses that respond and resolve complaints. (Khoros)

18. A revenue growth between 4% and 8% above market is possible when a business prioritizes better customer service experience. (Bain & Company)

Bad Customer Service & Its Consequences

Just like good customer service leads to fruitful outcomes for the business, bad customer service can have its consequences.

19. A poor customer service experience has made 65% of customers change to a different brand. (Khoros)

20. 80% of consumers say they would do business with the competitor after just one bad experience. (Zendesk)

21. One negative experience is equal to 12 positive customer experiences. (Ruby Newell-Legner’s “Understanding Customers“)

22. 78% of customers backed out from the purchase due to poor customer experience. (Glance)

23. 1 in 5 consumers will forgive a company’s bad experience whose customer service they rated as “very poor”. (Around 80% of consumers will forgive a company’s bad experience whose customer service they rated as “very good”. (Qualtrics XM Institute)

24. 3 in 4 consumers believe that a bad interaction with a company can ruin their day. (Zendesk)

25. 90% of customers would switch to a different band if it can offer better CX. (Hyken)

Customers’ Expectations for Customer Service

Business era has become competitive. Now customers have many options when it comes to getting the same set of products/services. That’s why customers now have expectations when it comes to customer service.

26. 90% of customers consider an “immediate” response to be very important or essential when they have a customer service question. And by “immediate” response, 60% of customers refer to it as 10 minutes or less. (HubSpot)

27. 70% of a customer’s journey is linked to how the customer feels they are getting treated. (McKinsey)

28. 71% of 16 to 24 year-old consumers believe that a quick customer service response can drastically improve the customer experience. (Comm100)

29. If a customer is dealing with a service-based problem, the customer is four times more likely to switch to the competitor. (Bain and Company)

30. 90% of consumers trust a company to handle their needs whose service they have rated as “very good”. (Qualtrics XM Institute)

Customer Service & The Influence of Personal Touch

Customers now expect to get personalized services at every point of their interaction with customers. If you are making customers feel heard, seen, and cared for, it can lead to fruitful outcomes.

31. 70% of customers believe that service agents’ awareness of sales interactions is essential to keeping their business. (Salesforce)

32. 76% of B2B and 63% of consumers expect companies to know their unique needs/expectations. (Salesforce)

33. Incorporating personalized consumer experiences can improve the online conversion rate by around 8%. (Trust Pilot)

34. 56% of customers aren’t hesitant to share personal information in exchange for getting better service. (Salesforce)

35. 79% of customers are willing to provide relevant information for contextualized interactions exchange in which they are known and understood immediately. (Salesforce)

One emerging way to give customers a personalized customer service experience is with an AI chatbot. For example, VOC AI Agent is a customer support AI chatbot that can answer customers’ queries autonomously. It can get trained with your company’s data and then provide 24/7 live chat support to customers with human-like conversations. This personalized support helps resolve customer queries and also gives them the personal touch they are expecting today.

Customer Service & the Influence of Word-of-Mouth Marketing

Word-of-mouth marketing has a great influence on customers’ decisions to make a purchase or not.

36. 72% of customers will share their good experiences with others. (Salesforce)

37. 36% of consumers will share their good or bad customer service experience. (CFI Group)

38. 72% of customers will tell 6 or more people about their satisfying experience. (Esteban Kolsky)

39. 13% of customers tell 15 or more people if they encounter a negative experience. (Esteban Kolsky)

40. Only 17% of consumers will recommend a brand offering an effective but slow solution. (Nielsen-McKinsey)

Omnichannel Customer Service

Customers have various ways to interact with businesses today, but there is mostly a lack of connection over all support channels. With omnichannel customer service, a business can offer a seamless customer experience to customers across different channels by integrating all those channels into a unified system.

41. Omnichannel shoppers spend more compared to customers using only one channel. (McKinsey & Company)

42. 40% of consumers have the opinion that “multiple options for communicating” is one of the crucial features of a company’s customer service department. (Business Wire)

43. 72% of leaders believe they can elevate operational efficiencies by merging teams and responsibilities around the customer experience. (Zendesk)

44. 62% of customers believe their experiences should flow naturally among both digital and physical spaces. (Zendesk)

45. Customers using multiple channels shop almost twice as much as shoppers using a single channel. (McKinsey & Company)

46. Digital care ecosystems are one of the top priorities of business leaders for the coming year. (McKinsey & Company)

Wrapping Up

Customer service is now as crucial as delivering high-quality products/services to customers. A good customer service experience improves customer loyalty, retention, sales, and word-of-mouth marketing. Similarly, bad customer service makes it quicker for customers to rethink other brands. The above statistics about customer service are proof of its cruciality in today’s era. Therefore, we will wrap up this article by recommending you lift up your customer service game and offer the best experience to customers to grow your business.