Bad customer service costing Australian businesses

As the Australian business market is very competitive, small mistakes during the customer service or billing process can be critical for your bottom line.

According to a new study by cloud vendor NewVoiceMedia, this is costing local organisations an estimated $8 billion a year. The study polled more than 2,000 Australian consumers and found some interesting insights into why customers don't use a business again.

More than nine in ten (92 per cent) of respondents have switched business at least once in the past year, with 58 per cent stating they take their custom elsewhere when faced with bad customer relations.

Main reasons for departure?

The most common reason that customers switched business was a lack of appreciation (46 per cent). This was followed by unhelpful contact centre staff (38 per cent) and a lack of responsibility (32 per cent).

Truelogic Mystery Shopping Account Manager Jackson Halstead told SmartCompany that local organisations should appreciate their customers and understand how to address their needs.

"It is important to engage with customers regularly and understand what is relevant to them because that is what is relevant to your business. Customers are time poor so swift contact resolution is essential," he said.

Is loyalty achievable? 

According to NewVoiceMedia, good customer service or prompt communications will have an effect on loyalty and repeat business.

Over three-quarters (77 per cent) said this would make a difference and 76 per cent would recommend based on a positive customer experience.

"Great customer service is the critical differentiator and investing in providing personalised and engaging customer experiences will help businesses succeed in retaining customers and securing new business," said NewVoiceMedia chief executive Jonathan Gale.

What solutions are available?

One solution is by investing in efficiency software. As billing and customer relations go hand-in-hand, all payments can be paid on time and correctly to ensure accounts receivables are not delayed and all parties are satisfied.