02 Opportunity

Chapter 2

Unlock the benefits of customer service-led growth

Customer service isn’t just about finding a quick solution to any one customer problem. It’s about building a long-term relationship, one where each customer interaction offers opportunities for deeper, more valuable engagement.

With more people buying online than ever before, customer service is now a key differentiator in the eyes of customers and companies alike. Customers expect service to be quick, easy, and effective, and they're willing to look elsewhere if they don’t get it. In fact, more than 60 percent report that they now have higher customer service standards after the past year’s crisis. It’s a trend likely to continue, with 73 percent of business leaders reporting a direct link between their customer service and business performance.

+14%
Customer engagement is up 14% compared to last year, which means more work, but also more opportunities to upsell or cross-sell in ways that better serve customers.

In this new business reality, customer service agents play an increasingly important role. And whether a company exceeds or falls short of customer expectations is often directly tied to business success.

It’s a high-stakes game—61 percent of customers would now defect to a competitor after just one bad experience. That’s a 22-percent jump from the previous year. Make it two negative experiences, and 76 percent of customers are out the door.

As the saying goes: no risk, no reward. For companies that succeed at wowing customers, the opportunities for growth are immense. Not only will they lay claim to the growing number of customers that shop with a service-first mindset, but they will also have a real shot at expanding, retaining, and deepening their customer base:

64% of business leaders say that customer service has a positive impact on their company’s growth
60% say it improves customer retention
Almost half report an increase in their ability to cross-sell

Quality customer service can drive sales

93% 91% 86% 98% 95%
will spend more with companies that offer their preferred option to reach customer service (ex: chat)
92% 88% 85% 96% 95%
will spend more with companies that ensure they won’t need to repeat information
90% 86% 83% 97% 94%
will spend more with companies that personalize the customer service they offer them
89% 83% 82% 96% 93%
will spend more with companies that allow them to find answers online without having to contact anyone

There are real consequences of inaction. Companies only have a short window of time to get it right.

Chapter 2 wedgite arch 60
More than 60% of customers say they now have higher customer service standards.

And while many have already placed customer service at the top of their wish lists for 2022, not everyone is primed to realize their growth ambitions. We identified five customer service traps that may ultimately impede a company’s chances of success, as well as insights and strategies to overcome these challenges.

Businesses priorities for the next 12 months are service-related

Personalize chart

56%
Drive better customer experiences
37%
Improve efficiency
31%
Drive stronger customer relationships
23%
Increase customer satisfaction
21%
Increase sustainability
48%
Drive better customer experiences
37%
Improve efficiency
33%
Drive stronger customer relationships
22%
Increase customer satisfaction
28%
Increase sustainability
68%
Drive better customer experiences
46%
Improve efficiency
26%
Drive stronger customer relationships
28%
Increase customer satisfaction
21%
Increase sustainability
47%
Drive better customer experiences
34%
Improve efficiency
36%
Drive stronger customer relationships
20%
Increase customer satisfaction
15%
Increase sustainability
51%
Drive better customer experiences
42%
Improve efficiency
36%
Drive stronger customer relationships
19%
Increase customer satisfaction
20%
Increase sustainability
44%
Drive better customer experiences
38%
Improve efficiency
22%
Drive stronger customer relationships
23%
Increase customer satisfaction
19%
Increase sustainability
65%
Drive better customer experiences
34%
Improve efficiency
26%
Drive stronger customer relationships
20%
Increase customer satisfaction
22%
Increase sustainability
Next Chapter
Five customer service traps that could derail growth