How often have you taken to the Internet or texted a friend to tell them about a great customer service experience? Most people don’t often recall those unless prompted – but a single negative experience can have a devastating effect on a business.

Check out the social media pages from most large companies and you’ll find plenty of company horror stories. Make sure your company isn’t the next to be blasted on the Internet by learning how to avoid the most cringe-worthy phrases in customer service, as found in a 2011 American Express Survey. “We’re unable to answer your question. Please call xxx-xxx-xxxx to speak with a representative from xxx team.”

A company typically only hears from about 4 percent of its dissatisfied customers – meaning these customers are willing to open a dialog with the company, despite their displeasure. While you have them on the line, address their concerns or research the situation and call them back. Don’t redirect them to disconnect and call a different number. Not only will they probably not call, but they may also join the 91 percent of dissatisfied customers who never go back to the business. “We’re sorry, but we’re experiencing unusually heavy call volumes. You can hold or try back at another time.”

When this has happened to you on another call, have you waited on the line? Most customers hang up after a certain amount of time – one study found that 15 percent of callers hang up after about 40 seconds on holding, with a little over two minutes being the longest most callers waited before hanging up. Considering that the American Express survey found that 78 percent of customers bailed on a transaction or didn’t make an intended purchase because of poor customer service, your business could be losing quite a few sales by keeping potential customers on hold.

Should your system automatically redirect them to a voicemail system if their hold time reaches a maximum limit, ensure that staff call them back promptly. “Your call is important to us. Please continue to hold.” The same American Express survey found that in one year, 67 percent of customers hung up the phone out of frustration that they couldn’t talk to a real person. These customers did not feel as if their call was important if they were continually on hold, and a statement that seems insincere is enough to keep a customer from returning.

Keeping customers on hold is keeping them from finding solutions to their problems – the opposite of what most businesses seek to do. Ensuring they are talking to a real person rather than hearing a dial tone can be as simple as hiring a courteous virtual receptionist to keep your customers – and their calls – positive and professional.

Have you experienced another person noticing something unique about you? Perhaps someone you do not even know made a comment, however brief, about a color you wore or your smile. In an insanely busy day of hassles and stumbles, did someone pick up something you unknowingly left trailing behind stating, “I think you dropped this.” Personal. Considerate. Service.

Think back to the feelings created in those unexpected moments. Can you recall feelings of being cared for, special, even a bit de-stressed or lighter in mood and step? Small, human gestures create positive emotions, connect us to others, and demonstrate the power of personal touch.

The worth of customer service

In the realm of customer service, personal touch factors reap benefits for consumers and businesses alike. According to Harris Interactive in 2010, nearly nine out of ten U.S. consumers report that they would pay more to ensure a superior customer experience. This statistic speaks boldly to the value customers place on service.

The cry for customer service

Genesys Global Survey reported in 2009 that the most requested improvement from customers was “Better Human Service.” Human? Other studies indicate the cry for live agents, efficient problem resolutions and customers feeling as if they are being treated well. Live person-to-person interaction which addresses the customer by name providing the relationship-building, powerful, personal touch fills a need in the marketplace.

The cost of customer service

In 2011, the Harris Report found that 86 percent of consumers quit doing business with a company because of a bad customer experience – just one bad experience. In “Understanding Customers,” Ruby Newell-Legner states that 12 positive experiences are required to overcome one unresolved negative experience. Generating these experiences requires resources and manpower. Also, 59 percent of Americans would try a new brand or company for a better service experience, even a promised one, according to the American Express Survey in 2011.

Be on guard. Eighty percent of companies say they deliver “superior” customer service. Unfortunately, eight percent of customers believe the same about the same companies (according to Lee Resources). Brutally assessing a company’s personal touch and making improvements reaps benefits. According to the Genesys Global Survey, competent service representatives and personalization create happy customer experiences. Knowledgeable. Personal. Service. Kate Zabriskie sums it up well saying, “Although your customers won’t love you if you give bad service, your competitors will.”

Customer service isn’t a nice-to-have in today’s competitive market. It’s a necessity that directly impacts a brand, customer loyalty, and sales growth. We’ve all been in the situation where we’ve had to call a business for a technical issue, account question, or other matter requiring some resolution.

Even if you begin the call in a frustrated manner, the representative’s tone, willingness to help and empathy can instantly change your view and create a positive experience. The bottom line of customer service is simple; your clients won’t be doing business with you for long if you do not provide the support they need.

Did you know that 91 percent of unhappy customers will not willingly do business with you again 70 percent of the time? That is a huge negative impact on your sales. Further, customers are more likely to complain about a situation to their family and friends than share a positive experience. So you’re not only losing the business of your existing customers, you’re losing potential business from people in their network. Customer service is the only way your customers will interact directly with your business, so keeping them happy will keep your business profitable and your reputation positive.

Resolve a complaint in the customer’s favor and they will do business with you again 70 percent of the time. It costs more for a company to acquire new customers than it does to retain existing customers because of advertising costs, sales calls, and marketing activities. When a client has a positive experience with a company, the consumer feels that their business is important to the company and that he or she is not just another sale. The consumer knows that if he or she encounters another issue in the future that the company will work to resolve the issue professionally and efficiently in a positive manner.

Customers overwhelmingly show appreciation for great service with their wallets. Measuring customer service over time helps an organization deliver better service as the company grows and evolves.  An example of measuring customer service includes surveying your clients after an issue was resolved over the phone. Customer service is a leading indicator of repeat business and differentiates your organization from your competitors. If you’re selling similar products or services, your service will make you stand out and ensure your customers choose your business every time. Your customer service not only allows you to maintain your client base but is essential to attracting new business.

The drive of business is profit and community betterment. To accomplish this goal, efficiency must be pursued. Automated customer service attracts business owners with the hope of streamlined processes and magnified manpower. But, does this promise bear out actual results in customer service? Research indicates live customer service reaps benefits over automated voices.

Customer frustrations

According to a poll by Harris Interactive, 75 percent of customers believe it takes too long to reach a live agent. Frustration with options that do not meet needs or address problems causes issues for consumers and, therefore, businesses. An American Express Survey (2011) reported that 67 percent of customers hung up the phone in frustration when not reaching a live voice. Living in a “Please listen carefully as our options have changed” world does not fit the fast pace of the society in which companies conduct business. Consumers want issues handled efficiently and to know their voice has been heard. Live customer service addresses these needs. Competent service representatives and personalization create a happy customer according to the Genesis Global Survey in 2009.

Customer experience

Customer service is the heart of a company’s business. An excellent product grabs the attention of a potential investor, but service holds that attention and leads to loyalty. According to McKinsey, 70 percent of product purchases are based on how customers feel they are treated. A difficult task for the automated voice is to sense and respond to a customer’s feelings. The inability to perceive and react in positive ways hinders profits. In fact, 78 percent of consumers have opted out of an intended purchase because of a poor service experience and 59 percent of Americans switch to a new brand or company for better service, according to the American Express Survey.

Superior customer service

While 80 percent of companies say they deliver “superior” customer service, only 8 percent of consumers of those same companies agree, according to Lee Resources. Talking to the customer is vital in assessing a business’ track record. Connecting with the consumer and identifying areas for improvement fit the role of the live customer service representative in ways automated systems cannot. This role becomes even more valuable considering data from Ruby Newell-Legner. Only four percent of dissatisfied customers voice complaints, and yet, many of the dissatisfied will not return. Businesses desiring positive outcomes must create natural opportunities for customers to offer feedback. Also, a live voice on the phone can gauge customer reaction and resolve issues in the best interest of both company and customer.

Every business knows that customer service is crucial to its survival. Without satisfied customers, companies will find themselves slowly losing business until there is no one left to sell to; as a result, maintaining a steady base of happy, loyal customers is the best way to ensure your long-term success. However, despite this knowledge, many businesses continue to make customer service mistakes that end up costing them in the long run. Here are four facts about customer service and what you can learn from them:

1. Customer service affects purchasing.

78 percent of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience, according to a 2011 American Express Survey. So, even if you have a superior product, don’t neglect your customer service department if you want your business to thrive; in the long term, the way that your business treats your customers matters. You can’t count on the quality of your product or service to see you through interactions with multiple dissatisfied customers.

2. Negative experiences are more long-lasting.

A business needs 12 positive experiences to make up for one negative experience, according to “Understanding Customers” by Ruby Newell-Legner. That’s why putting in time and money to build your company’s customer service skills is worth the investment – in the future, you won’t have to attempt to repair damaged relationships, and can instead build on a stable base of happy customers.

3. Dissatisfied customers turn to competitors.

59 percent of Americans  would try a new brand or company if it meant getting a better service experience, according to a 2011 American Express Survey. As a result, failing to provide a positive experience for your customers not only leads them to terminate their business with you, but to take their purchasing power to bolster your competitors.

4. Technology can impede customer service.

75 percent of customers believe it takes too long to reach a live agent, according to Harris Interactive. This means that the majority of customers have deal with Interactive Voice Response (IVR) systems, which experts recognize as contributing to poor customer service. That’s not just because they often malfunction and are unable to recognize accented voices the way live agents can; overall, customers want to talk to real people, and see automated phone conversations as impersonal and unwelcoming.

The fastest way to upset a consumer who calls in requesting customer assistance is to place them on a quick hold where they’ll repeatedly hear an automated message reminding them of how important their call is, and then leave them on hold for 30 minutes or more. Just add a transfer to another department once or twice after that and you’re sure to get one infuriated individual. Why stop there, though? Why not ask them to verify their account information multiple times.

Time and time again, consumer study results exhibit the dichotomy that exists between how a company proclaims they treat their customers and how they actually treat them. In fact, being placed on long holds is the primary foundation of customer frustration when dealing with contact centers.

The naked truth is that there is a massive dichotomy in the area of customer service. Those workers that ring you up at the cash register or who answer the telephone at a call center are often the lowest paid, the least trained, highest turnover workers at the company, and yet they are still expected to be the most serviceable and knowledgeable out of everyone in the entire business. Even though we all intuitively know what decent customer service feels like when we’re on the receiving end, everyone doesn’t instinctively know how to deliver good customer service simply because they were told, “You have to.”

Managers are accountable for ensuring that their staff is empowered with the needed tools to provide excellent customer service which can be accomplished through vigorous training and providing efficient support when needed. We can’t expect our teams to deliver excellent customer service if they’ve been set up to fail with poor training and lack of support.

With customer service being available on multiple channels today, it is so important to train staff to deliver quality service and know who the customer is as well as their recent account history to avoid forcing your customer to repeat themselves time and time again. Inconsistency across data systems can also cause dissatisfaction in a client.

Budget cuts are a reality to many companies, and with that comes staff layoffs. Reducing staff as the number of customer inquiries continues to grow, may also cause a strain on the quality of service many contact centers can offer. In other words, maintaining a good call center will become a challenge. Alhough, it is not impossible. So long as companies are willing to learn from their mistakes, they have the ability to improve service and grow together as a united force.

The groan and impatient facial expression give away an inkling that the man on his cell phone has just hit the first series of automated options, “Please press one to …,” or maybe the seventh series. The generic and complicated automated message tries the most patient of souls. Talking to a live person is becoming an anomaly. Businesses are choosing automated phone menus to offer efficiency and cost savings.

Though automated systems may save money, the real hit comes to a company’s customer satisfaction. Customer irritation arises with the wait times of automated systems averaging one minute and 51 seconds, while live voice wait times average 51 seconds, according to Stella Services. Add the mere annoyance of wading through endless options which “may have changed” and not reaching the information or department sought after, and irritation is magnified.

Live human customer service can begin a sales relationship that benefits a company. The voice, automated or live, which picks up the other end of the call is a company’s first impression. A live attendant reinforces that customers are valuable – a powerful message in an increasingly impersonal world, and something the automated voice cannot accomplish.

How do the options of one, two or three solve problems? Not very well. While the menu may direct a customer to areas of information, it is less likely that the options presented can answer the complexities of customer service questions or solve problems. Also, with automated phone menus, the caller is likely to be further agitated when the call reaches a live agent (if it ever does).

Agitations of wait time, feeling unimportant and not getting answers or solutions can lead customers to hang up. In a society pressed for time, the call likely will not be repeated. Perseverance may just equate to calling another company. This solution, nor the result, are things a company wants to hear. The bottom line: lost sales.

While many of the top Internet retailers use automated phone menus, calling 21 percent of the top 100 will take you to a live voice. Amazingly, substantial business is being done on both accounts. However, the question remains, does good business equate to good customer service? The typical customer service line does not employ a live attendant. To be seen as atypical, to make their mark in an impersonal, automated world, it stands to reason that a company benefits from a live voice at the other end of the customer service line.

If you are interested in hiring a virtual receptionist, adding a live voice to the other end of the customer’s phone call, contact GabbyVille today.