Top 10 Customer Service Statistics for 2022 [New Data] — SimplyTrends
After putting in a lot of time and effort to find the ideal dropshipping item to sell and to set up your business, your online marketing strategy is now in place, and the first orders are beginning to flow in.
In this article, we’ll present to you ten customer service statistics all entrepreneurs must be aware of when setting up their company’s customer service. But before you sit back and relax, there’s one important area of your business that you still need to address: customer service.
It is important to first define customer service before delving into the statistics.
Customer service can be summed up as giving support and assistance to customers both before and after they make a purchase, which means it applies to both current and potential customers who have already made a purchase from you.
Why is Customer Service Important?
As the following customer service statistics will demonstrate, providing excellent customer service is crucial to the success of your dropshipping business.
Everything is interconnected, so one bad customer service encounter could lead to a loss of brand loyalty, clients, and ultimately sales.
SimplyTrends collected ten customer service statistics you need to be aware of in 2022, so if you’re ready, buckle up!
Top 10 Customer Service Statistics for 2022
1. The Global Customer Experience Management Market Size
Let’s first take a look at how big the market is for improving the customer experience.
The customer experience management market is estimated to be worth $11.34 billion globally in 2022 (Fortune Business Insights, 2022) up from $10.11 billion in 2021, and it is anticipated to reach $32.53 billion by 2029.
The market is expected to grow over the upcoming years at a compound annual growth rate (CAGR) of 16.2% from 2022 to 2029, which is not only set to continue, but also sustain this impressive growth rate.
Recognizing the value of providing excellent customer service for customer retention and brand presence, brands are beginning to invest more in the tools and technologies that can help them grow. This growth is driven by the rising number of businesses adopting artificial intelligence and augmented reality to improve the customer experience for their buyers.
2. Customer Service Influences Purchase Decisions
If you believe that customer service is only concerned with resolving issues for new customers, consider the fact that 81% of consumers say a positive customer service experience increases their likelihood of making another purchase (Zendesk, 2022).
This means that offering excellent customer service extends well beyond the point at which customers first decide to make a purchase, and is powerful enough to either discourage or encourage future purchases.
70 percent of consumers have chosen to buy from a brand based on the quality of their customer service, and up to 78 percent would switch to a competitor after several negative experiences. In fact, the majority of consumers today view customer service as one of the top factors that influence their purchasing decisions.
3. Brand Loyalty Depends on Customer Service
Remember this as you establish the customer service for your company: excellent customer service should last long after the transaction has been completed.
As this next statistic will demonstrate, offering excellent customer service is important for increasing your customer’s lifetime value as it contributes to the development of customer trust in your brand.
More than 60% of consumers report having abandoned a brand and switched to a rival company due to subpar customer service, indicating that a whopping 95% of consumers believe that good customer service is important for brand loyalty (Microsoft Dynamics 365, 2018).
You might want to think about developing excellent customer service to entice your current customer pool and keep them coming back since customer retention is typically less expensive than customer acquisition.
4. Importance of Human Touch
The majority of customers still prefer human interaction when dealing with customer service, despite the fact that we currently live in a digital age.
Even as the technology for automated solutions advances, a study found that 75% of consumers will still prefer to interact with a real person (PwC, 2018).
Therefore, even though businesses can use automation and technological advancements, there should still be a human on hand to handle customer service issues as they arise.
And as our next statistic demonstrates, there is a significant difference in preferences between interacting live and via a screen and doing so over the phone.
5. Cost of Poor Customer Service
If you are an e-commerce business owner who has ever wondered why customer service is important, you should pay close attention to the following customer service statistic.
Customer service is a little less forgiving than baseball, where the rule is “three strikes and you’re out”; more than six out of ten customers say they will stop doing business with a company and switch to a competitor after just one negative customer service experience (Zendesk, 2022).
This underlines the significance of customer service to the overall experience your brand offers to your customers, who have no qualms about severing allegiances after just one negative encounter.
6. The Worst Aspect of Poor Customer Service
More than half (56 percent) of consumers say automated telephone systems are the most frustrating aspect of any poor customer service experience, so if you’re adopting the automated options on the market, this may be one of the most crucial customer service statistics to be aware of when doing so. (Zendesk, 2019) Automated telephone systems are the bane of all customer service experiences.
Their inability to contact a human agent, which, as we saw from a previous point, continues to rank highly in the eyes of customers, is a major source of their frustration with these automated systems.
A HubSpot survey reveals that consumers detest repeating the same information so much that 62 percent of them would prefer to “hand out parking tickets” as an alternative to automated telephone systems as the least liked aspects of customer service.
7. The Best Aspect of Good Customer Service
The following customer service statistic demonstrates that efficiency is crucial when resolving issues.
Being able to resolve their issue in a single sitting, regardless of how long it takes, is regarded by one-third of all consumers as the most crucial component of good customer service experiences (Statista, 2019).
This shows that customers prefer immediate resolution of their problems to having to contact a company later.
And it even surpasses dealing with knowledgeable customer service agents, which relatively fewer global consumers (31 percent) say is the most crucial component of a positive customer service experience.
And you’ll want to put in a lot of effort to prevent even one instance of bad customer service, lest it be amplified and harm your brand.
Word-of-mouth advertising is a double-edged sword because it not only has the potential to increase marketing and drive sales, but it also has the potential to do the exact opposite, particularly if it comes as a result of subpar customer service; a study found that six out of ten customers share negative experiences with others (Salesforce, 2018).
Do your customer service well and you’ll be getting a good reputation boost simply by word of mouth, according to the same report, which also shows that 72 percent of customers say they share positive experiences with others.
8. Poor Customer Service Experiences Are Shared
And you’ll want to put in a lot of effort to prevent even one instance of bad customer service, lest it be amplified and harm your brand.
Word-of-mouth advertising is a double-edged sword because it not only has the potential to increase marketing and drive sales, but it also has the potential to do the exact opposite, particularly if it comes as a result of subpar customer service; a study found that six out of ten customers share negative experiences with others (Salesforce, 2018).
Do your customer service well and you’ll be getting a good reputation boost simply by word of mouth, according to the same report, which also shows that 72 percent of customers say they share positive experiences with others.
9. Phones As Medium of Choice For Customer Support
When it comes to communicating with family and friends today, most people prefer to send texts, emails, or engage on social media, but if there’s one area where this trend hasn’t yet taken hold, it’s customer service.
According to a study, more than 75% of consumers (or 76% of all consumers) prefer to call customer service representatives directly rather than using digital channels like emails, online contact forms, or social media to get assistance (CFI Group, 2019).
One might assume that such preferences are age-dependent, with younger consumers preferring automated and digital solutions given that they are also the more tech-savvy generations, but the most recent customer service statistics actually suggest the opposite.
Phones are actually the preferred method of contact across all age groups, despite the fact that more baby boomers call customer service than Generation X, Millennials, or Generation Z. On the other hand, social media, despite its pervasiveness in modern society, continues to be the least preferred option for all customers.
10. Consumers Will Pay More for Good Customer Service
Here’s a statistic to prove it: 68 percent of consumers say they’re willing to pay more for products and services from a brand that’s known to offer positive customer service experiences (HubSpot, 2019). If you provide good customer service, there’s more margin for profit as you can afford to raise your prices a little.
This needs to be taken into account along with consumers’ rising expectations, which include quicker and more effective problem resolutions, not having to repeat themselves, and a fluid process regardless of the contact channel, according to a survey of consumers.
Keep in mind typical complaints like being treated like cases rather than people and receiving inconsistent answers when dealing with various representatives if you want to truly meet the needs of your customers.
Conclusion
These customer service statistics should have helped you understand its significance and how to create the best customer service experience possible for your clients.
Your company must excel at this given the importance that consumers today place on providing excellent customer service.
Take a look at some of these fantastic customer service suggestions if you already offer excellent customer service but feel motivated to go above and beyond.
Summary: Customer Service Statistics
Here is a list of the key customer service statistics for 2022:
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