The True Cost of Bad Customer Service

Customer service is a never-ending battle for retailers, and in today’s digital age it has become even more important. Whereas customers used to perhaps tell one or two people about a bad customer service experience, most nowadays don’t hesitate to share their opinions with the world via social media. This means that providing excellent customer service has become even more important.

What is this bad customer service costing retailers? Bad customer service costs businesses $338 billion in revenue every year, globally. Even if only a minute portion of that applies to you – it is still a loss, and often one that is avoidable.

In Canada specifically, according to research done by Accenture, almost half (49%) of Canadian consumers have switched providers in the past year due to poor customer service. Of those who switched, 80% said that they could have been retained had the retailer provided better customer service. However, once the switch has firmly been made, 68% said it was made for good and that they would not return.

Impact to your reputation. If your reputation includes not-so-stellar customer service, that can have a major impact. Research has shown that those businesses with mostly 1 and 2 star reviews online fail to convert 90% of potential customers. However, Canadians are even more likely to just switch silently, not saying anything and thereby not giving you the chance to win them back.

What are the most common complaints when it comes to customer services?

  • Long line ups
  • Not being able to find the products they want
  • The inability to find a customer service representative to answer their questions

These are all things that can be solved with the right people support. If your employees are over-worked, this will be reflected in the level of service they provide. If the motivation to succeed is not there, often as a result of being given too many other jobs to do, your customers are the ones that will be impacted, and that means the ultimate loser is your bottom line.

Is your in-store staff taxed with merchandising and filling the shelves instead of assisting customers? Is customer service just not up to the level you’d like? We can help with that. Get your employees out there helping customers – those customers want great customer service – and let Marketsupport take care of the rest. Call us today at 1-877-421-5081 or visit

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