Customer Service Statistics

All of us are very well aware of the fact that customer service is cardinal for businesses. But how much cardinal is it? Departments that concentrated exclusively on customer services were almost non-existent a few decades ago. But now customer service departments constitute a significant part of successful businesses.

Back then, high quality and low prices mattered the most to customers. Even now customers care about the quality and price of the products. The only thing that has changed is the importance given to customer services. Companies are on the urge to fight for their customers because of the availability of many choices within each industry and mass customization. It is substantial to know how beneficial an efficient customer service department is and also the consequences of a poor customer service interaction.

Tighten your seat belts as we are all set to take a ride on the latest customer service statistics in this article.

Key Customer Service Statistics

These are the top 10 stats from the article that follows below:

• In 2020, the customer experience management market was worth $7.6 billion globally. (Grand View Research)

• Customer service continues to improve according to 50% of Americans. (Microsoft)

• 84% of consumers say that customer service is a key factor when deciding to make a purchase or not. (Zendesk)

• Globally, the response rate of companies to customer service queries is 85% (Microsoft)

• Globally, a telephone was used to contact customer service by 71% of consumers. (Microsoft)

• Across all age groups, a phone was used to reach out to a service team by more than 50% of customers. (Zendesk)

• In 2020, 89% of customers have switched to brands that offer better customer engagement and experience. (Ameyo)

• Good customer service is the key to feel loyalty towards a brand for about 3 out of 5 consumers. (Zendesk)

• To engage with brands, 80% of consumers use social media. (Forrester)

• 54% of people use social media to research products. (GWI)

General Customer Service Statistics

Customer service plays a critical role in the growth of any business. This has increased the customer service market size. After realizing the importance of customer service, companies are forced to revisit and update their customer service strategies. Organizations must always focus on providing the best experience for their customers. Let us first look into some statistics that focus on general customer services.

• In 2020, the customer experience management market was worth $7.6 billion globally. (Grand View Research)

• Customer service continues to improve according to 50% of Americans. (Microsoft)

• Globally, 90% of consumers say that issue resolution is their most important customer service concern. (KPMG)

• In the U.S., 64% of consumers contacted customer service in 2017. (Statista)

• Due to the COVID-19 pandemic, 80% of consumers expect brands to provide more efficient customer support. (Hiver)

• The lifetime value that a customer experience promoter has in a company is 600-1400% that of a detractor. (Bain)

• Customer engagement can be measured by 75% of brands, but they cannot define it. (HuffPost)

• 63% of consumers say that businesses need to know their unique needs and expectations. (Salesforce)

• For the next 5 years, customer experience will remain the top priority for 45.9% of businesses. (SuperOffice)

• Customer experience is more important than product price for 64% of people. (Gartner)

Importance of Good Customer Service

Marketers need to be aware of how excellent customer services can elevate their business. Companies these days are investing in new technologies to give customers the best service possible. Businesses are mainly driven by customers. That is why it is important to ensure that the customer has a good experience with your company. Let us now look at statistics that will help you understand the importance of good customer service.

• 84% of consumers say that customer service is a key factor when deciding to make a purchase or not. (Zendesk)

• Globally, the response rate of companies to customer service queries is 85% (Microsoft)

• In the U.S., 35.2% of customers give 5-star ratings because of good customer service. (Netomi)

• After a positive customer service experience, 52% of consumers have made an additional purchase from a company. (Dimensional Research)

• Positive reviews influence 68% of American consumers to use a business. (Bright Local)

• The most important thing a company can do to provide a good online customer experience is to value their time according to 66% of adults. (Forrester)

• The online conversion rate of a business increases by 8% when personalized consumer experiences are included. (Trustpilot)

• Due to a poor customer experience, 78% of customers have backed out of a purchase. (Glance)

• After a single instance of bad customer service, about 34% of consumers would want to switch companies. (American Express)

• 67% of customer churn can be prevented when firms resolve issues the first time they occur. (Ameyo)

Communication of Customers with the Company

How consumers get in touch with companies also plays a vital role in customer service quality. To link up with customers, companies are increasingly using innovative and different communication channels. Meaningful communication will increase the company’s popularity and trustworthiness among the clients. This helps in resolving tricky situations easily. Now, let us look into some statistics that will help you fill in on how customers contact businesses.

• Globally, a telephone was used to contact customer service by 71% of consumers. (Microsoft)

• Across all age groups, a phone was used to reach out to a service team by more than 50% of customers. (Zendesk)

• Compared to other support channels, customer satisfaction ratings for live chat are often higher because of the speed and conversational nature. (Customer Think)

• In 2017, 54% of customers used email customer service channels. (Forrester)

• A dedicated community of core customers can handle 67% of customer service interactions. (HuffPost)

• Globally, 47% of consumers want companies to act on customer feedback. (Microsoft)

• For local businesses, 87% of consumers read online reviews in 2020. (Bright Local)

• The most frustrating customer service aspect is waiting on hold or having to explain the same things to several representatives for about 67% of consumers. (HubSpot)

• The difficulty to reach a live agent is among their top frustrations with bad customer service for 27% of U.S. consumers. (Microsoft)

• During the onset of the COVID-19 pandemic, the number of calls rated as difficult has increased from 10%-20% (Harvard Business Review)

Brand Building and Brand Loyalty Statistics

Building your brand is an extremely critical process. Once you build your brand perfectly, customers will come swarming in. Apart from brand building, establishing brand loyalty also matters. This is achieved by having a deep understanding of your customers’ priorities. Moreover, loyal customers bring in more income than new customers. Let us now look into some statistics that throw light on how brand building and brand loyalty have been impacting organizations.

• In 2020, 89% of customers have switched to brands that offer better customer engagement and experience. (Ameyo)

• Good customer service is the key to feel loyalty towards a brand for about 3 out of 5 consumers. (Zendesk)

• Agents need to know who their consumers are, what they have purchased, and have insights on their previous engagements according to 75% of consumers. (Microsoft)

• The number of invasive ads is increasing, says 50% of customers who switched to another brand due to poor personalization. (Accenture)

• If the purchasing process is too difficult, 74% of people are likely to switch brands. (Salesforce)

• For being a good customer, 48% of consumers expect specialized treatment. (Accenture)

• A significant 81% improvement in customer satisfaction is seen when companies use customer journey maps. (MYcustomer)

• Friendly customer service agents are the reason why 73% of customers stay loyal to brands. (HubSpot)

• A 5% increase in customer retention will equate to an increase in profit of 25% (Bain)

• In exchange for a more customer-centric experience, 66% of consumers are willing to disclose more of their personal data. (Accenture)

Usage of Social Media in Customer Services

Social media platforms have cemented their worth when it comes to customer service. An essential element for a brand’s success is how healthy relations are built with customers via social media platforms and how effectively these platforms are managed. These platforms positively influence sales, brand loyalty, and connection. Let us now look at some statistics that emphasize the usage of social media in customer services.

• To engage with brands, 80% of consumers use social media. (Forrester)

• 54% of people use social media to research products. (GWI)

• Social media is an effective customer service channel for 80% of consumers aged 18-34. (Microsoft)

• Compared to resolving an issue through a call center interaction, solving an issue on social media is 83% cheaper. (Social Media Today)

• Within 24 hours, 48% of consumers expect a response to social media questions and complaints. (Statista)

• About 34% of complaints made on social media are not answered. (Convince & Convert)

• Answering a social media complaint increases customer advocacy by 25% (Provide Support)

• 50% of customers don’t use social media to share their bad or good service experiences. (CFI Group)

• Customer service interactions on Twitter have increased by 250% in the last 2 years. (Social Media Today)

• 71% of customer service complaints aren’t answered on Twitter. (Provide Support)

Conclusion

Now that we have come to the end of this article, you would have understood the importance of customer service in your business. As customer services continue to evolve, businesses are also on the urge to keep up with the evolving times.

Treating your customers with respect and loyalty is as important as it is to fix their problems. Using modern technologies such as social media for customer service, self-service portals and customer journey mapping will enable firms to deliver the best customer experience possible.

Make it a point that you find a balance between efficiency and politeness to achieve customer retention.