Americans aren’t very tolerant of poor customer service, according to a new study from St. George’s TCN Inc., a cloud-based call center platform for enterprises, contact centers, business process outsource companies and collection agencies. TCN’s “Consumer Insights about Customer Service” survey, conducted by OnePoll, reveals that Americans are very likely to abandon a brand after just one poor customer experience but are just as likely to become repeat customers after a positive experience. Additionally, for the third year in a row, consumers’ No. 1 preference for communicating with a company’s customer service department is speaking with a live agent.
With nearly half (44 percent) of the survey respondents stating that they have posted an online review about a poor customer service experience, 75 percent of Gen Z (18-26) have posted an online review after a negative experience, while only 24 percent of baby boomers (59-77) have done the same. Over half of millennials (27-42) and Gen X (43-58) have also posted about a negative experience.
According to the survey, 73 percent of Americans are likely to abandon a brand after just one poor customer service experience. This is the second year in a row this number has increased as only 42 percent of respondents stated this in 2021, which jumped to 66 percent in 2022. With nearly three-quarters of consumers now willing to abandon a brand when customer service is poor, patience for poor customer service by consumers is running perilously thin.
Marketing departments develop various campaigns to increase brand loyalty and encourage repeat purchases, but customer service also plays a significant role here, TCN said. When asked how likely or unlikely they were to make a repeat purchase with a brand after a positive customer service experience, 81 percent said they were either very likely or somewhat likely to do so.
Speaking to a live agent comes out on top yet again when asked to choose their top three methods of communicating with a company’s customer service department. Talking to a live agent by phone was the No. 1 choice for the third year in a row, with 53 percent of people choosing this option — up from 49 percent in 2022. In fact, the top three options have remained the same all three years, with email coming in at No.2 (52 percent) and online chat with a live agent at No. 3 (45 percent). The preference for dealing with a live agent remains consistent. When asked what is most important when contacting a company’s customer service department, 52 percent of Americans said the ease of getting through to a live agent.
Sixty-nine percent of respondents said they are willing to pay more for brands with good customer service. This is especially true for the younger generations, where 87 percent of Gen Z and 86 percent of millennials said so.
Expectations for customer service departments are increasing, especially regarding hold times. When asked how long they would be willing to wait on hold, 35 percent of respondents said 2-4 minutes; however, in 2022, 35 percent said 5-7 minutes, so consumers are increasingly less willing to wait on hold.
“More than ever, this year’s survey highlights the importance of providing top-notch customer service within contact centers when it comes to brand loyalty and referrals. It is clear that one single interaction with a customer can make or break a relationship with a brand,” said McKay Bird, marketing director at TCN. “Technology within the contact center can go a long way in supporting understaffed workforces, but there is also no full replacement for the human touch, as we see for the third year in a row. We are also encouraged to see big industries like healthcare and finance continuing to improve year after year regarding customer service. This is a trend we hope to see continue.”