The Cost of Poor Engagement.

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There are several things in life which immediately make me lose the will to live:

  • Finding a car park
  • Sitting near a loud eater
  • Poor service and engagement

When it comes to poor service, I’m one of those customers who pulls out the words we feared most as children – “I’m disappointed.”  My husband has a 6th sense to predict when it’s coming and slowly backs away, leveraging the newly created gap between us, to remove any association with me.

When I have an exceptionally bad (or good) customer experience, I usually let the organisation know quietly.  I don’t make a scene.  I don’t rant (much!).   I try to be balanced and offer helpful feedback. However I’m not the norm.

A typical business will hear from around 4% of its disgruntled customers only.  The remaining 96% of ‘disappointed’ human beings will be busy sharing their frustrations at your Company with their friends, family, colleagues, a wide reaching network on Social Media and inevitably strangers.

Not only will they talk about what happened, but more often than not, embellish the situation to great lengths so there’s no fear of someone thinking they over reacted.

If we believe the research that says advocate recommendations (“friend” endorsement) is the number one influencing factor in purchasing decisions, then stop and ask yourself:  What is the cost of negative endorsement, because of poor service and engagement to your Organisation?

Weigh this up against the investment you make in your people and all the resource and energy that goes into making the wheel of your organisation turn.  All of the initiatives designed to set you apart from your competitors maybe in vain.  Because the scary reality is whatever you throw at your business it will never be better than what your customers’ experience.

The accurate calculation to consider now is this:

Poor customer service costs more to an organisation, than strategic people focused customer engagement.

  • A Rosetta study shows that engaged customers buy 90% more frequently, spend 60% more per transaction and are 5 times more likely to indicate it is the only brand they would purchase in the future. Reversely;
  • *89% of consumers began doing business with a competitor following a poor customer engagement experience (*Right Now)

Can your business afford the cost of poor service and engagement?

(Imagine this scenario happening in my world:  I’m running late for a lunch, due to the lack of car parks for what seems like a 50 km radius.  I finally arrive to a full, busy café and am greeted by the munch, munch, spit, crunch of a loud eater…sitting…right…behind…me.  The waiter forgets my order!)