Picture this: You walk into the store excited about the latest gadget. You find a very welcoming salesperson who tells you everything about the gadget, and you’re convinced this is the right product. You make the purchase, only to discover later that the servicing charges are unreasonably high and were never mentioned upfront. Frustrated, you vow to never shop there again.

This scenario is all too common. According to an online survey by Kapture CX, 51% of buyers are frustrated by poor customer service. As a brand, you cannot afford to overlook this critical aspect because if you do, you are bound to pay a hefty price. Here’s what it looks like.

Customer and Customer Service

So, what do you know about customer service? If your answer was similar to the textbook definition of “what is customer service”—assistance and advice offered by a company to its customers—your answer is half right.

Customer service is more than just effectively handling complaints. It’s about creating a positive experience that encourages your customers to return and recommend your business to others. The keywords are ‘return’ and ‘recommend.’

Unfortunately, the mistakes you make keep pushing your customers away.

Why Are Buyers Frustrated?

While there can be a hundred reasons why your buyers are frustrated, most of the time, they fall into the TRUST framework. While there can be a hundred reasons why your buyers are frustrated, most of the time, they fall into the TRUST framework.

PS: We have created the TRUST framework to help you remember the key components of good customer service.

Transparency

Transparency is about clearly communicating all costs, policies, and procedures upfront. Lack of transparency from your end is only going to create more problems for you when the customer gets back to you for servicing or other queries.

Response Time

Slow response time is a real killer. In fact, 33% of customers find having to wait on hold one of the most frustrating aspects of customer service.

You need to make sure your customer service representatives are not playing a game of Chinese whispers. Implementing a robust CRM system and using AI-powered chatbots can help improve response times.

Understanding

You know what’s more frustrating than not getting help? Having to explain ‘what you need help for’ repeatedly. Most often, the customer will tell you the solution they’re looking out for when they are explaining their concern.

Staff Training

Everyone can have a bad day. Unfortunately, this does not change the fact that a customer should always be treated with respect. And that’s what you need to train your staff for. Here are a few essential skills for customer service:

• Active listening
• Negotiation
• Problem-solving
• Effective communication

The Price You Pay For Poor Customer Service

The price your brand pays for poor customer service is far more than what it needs to invest for quality service. Let’s have a look.

Lost Revenue

60% of customers will stop buying from a brand if they receive unfriendly services. Moreover, customers report that they will switch to a brand’s competitors in case of poor service.

What does it mean for your brand? Bad customer service can lead to lost sales. You are not only losing money but also your target audience to your competitors. No chance of redemption from here on.

Damaged Reputation

Think of all the times customers have taken their grievances to social media, tagging the brand and opening a conversation. Very recently, Target customers took to X (Twitter), following long lines, order pickups, and understaffing.

Mind you, Target isn’t alone. There’s also Walmart, which is facing quite some criticism for its Walmart+ subscription, restricting self-checkout, and under-hiring staff. In contrast, there are brands like Apple, Taj Hotels, Kia, and Boat that have secured a spot for themselves as some of the best Indian brands for customer service.

Lost Customer Loyalty

Customer loyalty is hard to gain and easy to lose. It is built on positive experiences. And if you are not able to create these experiences for your customers, you will see a high churn rate in no time.

Turning Things Around

The good thing about customer service is that you can always structure it for your customer service executives to build on. Here are a few quick tips on how to turn things around:

• Outline a process to help an agent understand what needs to be done when receiving a query.
• Allow your customers to reach out to you in multiple ways. Besides clearly and boldly displaying your customer care number, make use of emails and chat.
• Integrate automation and technology to take care of repetitive tasks.
• Train your teams to double-check the problem with the customer. Some customers may not be able to correctly articulate their concerns due to a lack of technical knowledge. Double-checking clears all the confusion.
• If you need to transfer the customer to another department, explain why and then transfer the line. Don’t leave your customer guessing.
• Make sure your team undergoes training for soft skills.

The best way to make sure that your customer service is on point is by listening to your customers. They best know their issues and, most often, the solution they are looking for. If you can give them the same, follow through. If not, suggest the next best solution. Your goal should be to move swiftly from the problem to the solution. That’s all! Thank you!