The cost of bad customer service in Australia

The cost of bad customer service in Australia

The true cost of bad customer service in Australia

There is an estimated cost of bad customer service in Australia of $122B per year.

An EY report suggested that Australian businesses lose $720 for every negative customer experience*.

That’s $122 Billion dollars walking out of one business and into the next because the customer didn’t like the way they were treated.

Sure, there are some customers that are difficult, maybe they are having a bad day and they take it out on you.

The reality is that when a customer has a problem, they are coming to you.

Maybe their problem is the TV stopped working and they need a new one, maybe they are hungry and need food or they can’t get their computer to work and they need help.

Whatever their problem is, it’s your job to fix it and if you don’t, it will cost you.

The numbers are staggering when it comes to customers talking with their feet.

  • 86% of customers in a recent survey said they will pay more than a competitor if they can provide better service.
  • 89% of customers will go elsewhere after only one bad experience.

So if you’re a leader or a customer service professional, how do you change the way your customers are served?



Two tips to improve your customer experience

1. Ask your Customers

Companies like Coke spend millions on research to find out that information from their customers.

The good news is you don’t have to!

You can simply ask your clients.

We have used simple (and free) tools like Survey Monkey, calling customers and asking about their experience and even standing out the front and asking them directly.

Or you can use automated after call surveys (search industry suppliers) or there is a range of Customer Satisfaction/Voice of the Customer tools and measures.

The great news is, when asked properly and at the right time, most people will tell you!

According to the surveys we conduct, staff and customers’ number one area of concern when it comes to internal or external customer service is lack of communication.

2. Smile!

The best thing you can do to change that is to get your team doing this… SMILE!!

Smiling releases endorphins.

It is an internationally recognised signal that says ‘I’m nice’.

There has been so much research done on the impact of a smile.

smile being held open with pegs
Start off smiling, even if it’s over the phone, people know!

The easiest, most affordable customer service training you can do is help your staff smile.

Try it for one week, just smile and say hello to everyone, even people you don’t know and see what happens!

Recommended links:

*One of the biggest challenges in our industry is the lack of data – the latest survey data we could find was based on a 2014 report.

About Justin O'Hehir 2 Articles
Justin O'Hehir is a Human Synergistics facilitator and Director of Performance with People, a Human Resources Consultancy that assist organisations in success through people.

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