“Hate” may be a strong word, but for customers who feel wronged, it’s only a justifiable emotion. Before companies start rolling their eyes, a new report suggests there are indeed industries people despise.
The Businesses Americans Love to Hate
The Q2 2018 American Customer Satisfaction Index report highlighted some of the industries favored by consumers—and those that weren’t.
The industry with the highest weighted average in customer satisfaction was manufacturing or durable goods. Among the sectors, meanwhile, televisions and video players received the most impressive score of 83. It, therefore, surpassed the overall weighted rating of 76.9.
The government was at the opposite end of the spectrum with a score of only 70.5. But the local government segment fared better than the Internet service and subscription service providers. Both received a mark of 62.
Many factors can affect a customer’s opinion on customer service. These can include the nature of the brand, the consumer preference, and the complexity of the service. The report didn’t mention the bases for the rating.
One thing is clear, though: Poor customer service is hurtful to the business.
The Costs of Bad Customer Service
Companies such as Cask, LLC have been in the business of elevating the customer service around the country. They do so due to one reason: A bad service can be very costly. Reports suggest it can be as much as $300 billion globally.
The losses may come from:
- Higher rates of product returns,
- Loss of customer trust and business credibility,
- Possible class-action lawsuits that can cost millions,
- Penalties from the government, or
- Lower profit margin to increase customer acquisition and enhance competitiveness in the market.
The common causes of bad customer service are not new. These can include long waiting times, inability to reach customer support, and the lack of customer service to provide a workable solution. The popularity of the Internet, though, adds more to the list. These are inaccessibility of the website, poor checkout design, and lack of protection to privacy and security.
The effects of such customer service can be so devastating that it can cause a business to shut down. But it doesn’t have to reach that point. Designing a system that seamlessly bridges the company and the consumers is one of the strategies to improve the buyer’s journey.