In sales-based organizations, customer service is of the utmost importance. Quick and efficient communication, as well as high-quality responses to consumer complaints and comments are all the signs of a strong business. A new study has found less companies are as adept at customer service initiatives as they think they are.
According to a new report by Shankman Honig, 80 percent of businesses believe they are consistently delivering “superior” customer service, while only 8 percent of customers agreed. This large disparity poses problems for companies, as each year, U.S. companies lose a total of $83 billion due to poor customer service.
The study found negative customer experiences had lasting effects on a company, as 20 percent of consumers surveyed said they left a regular service provider due to poor customer service. During these poor service experiences, 35 percent of survey respondents said they lost their temper with an employee, and 24 percent of those respondents said they then turned to social media platforms to express their displeasure with a company.
It’s not too late for companies to turn things around, though. Executives and supervisors who feel their companies are coming up short with customer service can begin to shift operations by implementing incentive compensation plans.
Under a strong incentive compensation management program, rather than trudging through their days and dreading negative client interactions, employees will be motivated to ensure positive experiences for customers. Supervisors can link client retention to bonuses, merit increases or other rewards such as gift cards or tickets to sporting events. When presented with a financial motivations, employees are more likely to approach customer service interactions with a positive attitude and point of view.