When customers have an issue or question, they prefer to talk to a person instead of a computer. Automated messages annoy customers; the process can be tedious to listen carefully and then enter the correct numbers when prompted, plus users can easily make errors.
Most clients won’t think twice about switching to a different merchant because of a poor customer service experience. Consider how poor customer service can also lead to fraud, chargebacks, a negative reputation on social media, and more.
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One poor experience can result in a lost customer forever and a damaged business reputation. According to an Accenture global customer satisfaction report, poor customer service is the main reason for customer churn, not price. Studies suggest that people are willing to pay more for products and services if they know that quality customer service will be available.
However, customer churn isn’t the worst result of poor customer service. When customers can’t easily get their issues resolved, they turn to other means, such as chargebacks. Chargebacks are particularly challenging to a business with a high-risk merchant account because the cost of chargebacks is higher than the chargeback costs that other merchants would pay. As such, chargebacks take a significant cut out of a business’s revenue, but good customer service can often resolve potential chargeback issues.
Employing customer service representatives cost more money than using automated messages, but do you want to risk having more chargebacks? This risk could jeopardize your status with your merchant account provider. If you lose your account, you won’t be able to accept credit cards for your products and services.
Poor customer service can also invite fraud upon your business. For example, PropertyCausalty360.com reports that 55 percent of U.S. consumers say that when insurance companies have poor customer service, customers are more likely to commit fraud against that company. The same sentiment is true for other types of businesses.
Businesses with high-risk merchant accounts are already more vulnerable to fraud than other businesses because of security breaches, stolen credit cards, and more. Poor customer service only complicates the matter further. Your top goal as a business should be to engage continually in positive relations with your customers.
Customers with questions and complaints about your products and services often turn to social media. This factor is particularly the case if the customer purchased something from your business online. Make sure you have live representatives managing your social media accounts, too, to prevent customer crunch, chargebacks, and fraud.
Quality customer service is one of the most important aspects of running a successful business. Remember, you can use a third-party service to handle your customer service and social media needs. This decision is less expensive than hiring dedicated employees for this purpose, but it does cost more than automated messaging. Choose the option that makes the most sense for your business financially. With the best customer service experience possible in place, you can feel more comfortable maintaining positive relations with your customers.