Losing Customers? Here’s Why—And What To Do About It

Even if your business flourished throughout the COVID-19 pandemic (think grocery stores, online retail, automotive, etc.), most are happy to put 2020 in the rearview mirror. As we’ve crept into 2021, we continue to be in the thick of the pandemic, but there is light at the end of the tunnel. We also have learned to adapt to the situation. As we adapt, we must understand our customers’ mindsets. Our friends at Stella Connect by Medallia have released a report that gives us some insights into what customers are thinking today and how their expectations are changing.

There was a major jump in customer inquiries, complaints and support calls. Companies adapted with digital support—some better than others. At first, customers were a bit more understanding about long wait or response times, but quickly lost patience as they realized the companies and brands weren’t making an effort to adapt to their changing needs, which were based on the rapidly changing times.

Stella Connect’s survey of more than 1,100 consumers found that 50% have prioritized customer service as a deciding factor about whether or not to do business with a brand. If you’re a company that focuses on customer service and CX, you could have a competitive advantage.

One third (33%) of the consumers surveyed claimed they had switched brands due to poor customer service since the beginning of COVID-19. If you break the numbers down by generation, 42% of Millennials are significantly more likely than other generations to make the move. How bad does it have to get? Sixty-four percent would switch after just two or three bad interactions. Furthermore, 67% report having the same or less patience for bad service since COVID-19 began.

The point is that your organization must prioritize customer service and experience. How to go about it? First, you have to know where you are. If you haven’t surveyed your customers in the past, you won’t have a baseline to work from, but there is no time like the present to start. Net Promoter Score (NPS) can give you an idea of the overall customer sentiment, but get specific. Stella Connect recommends looking at metrics like First Contact Resolution or Customer Effort Score. I’ve covered this in past, but it is worth reminding everyone.

Resolving an issue or answering a problem on the first call makes sense. Nobody wants to keep calling back regarding the same issue a second or third (or fourth or fifth) time. Nobody wants to wait on hold wondering when they are going to get to someone who can help them. That’s customer effort.

The Stella Connect report came back with some insights related to how consumers prefer to get help and support. Self-service digital channels are still relevant, but more and more customers are leaning toward wanting to connect with a person. The breakdown of “human options” is that 43% prefer the phone, 28% prefer email and 23% prefer live chat.

And there is some good news about properly managing customer service, especially regarding human options. Eighty percent of customers say that when their problems and complaints are managed well, they feel more emotionally connected to the company. Note: You can’t have customer loyalty without an emotional connection.

So, how do you lose customers? Even more important than price or product quality, just give them a bad customer service experience. Make them work hard to get to someone who can help. Waste their time with long hold times, not giving them an option to have a callback. Connect them with people who haven’t been properly trained or don’t have the knowledge to answer questions. If you’re guilty of any of these (or other related customer service blunders), it’s time to change course. In these times of heightened customer expectations and demands, you have to be good enough for them to say, “Even when there is a problem, I can count on them. I’ll be back.” Otherwise, say, “Goodbye.”