How much money do customers lose when you make them wait

How much money do customers lose when you make them wait

OABPO Blog Team Published on August 5, 2014

customer-losing-money-while-being-on-the-phone-with-a-customer-service-agent--Open-Access-BPO
Slow customer service is a business killer. How many times have this been emphasized to customer service representatives—whether in-house or outsourced to a call center in the Philippines—to make sure that they attend to people with promptness? This is because your company can incur financial losses if you waste or devalue your customers’ time.

While the impact of sluggish service on businesses is often highlighted, many are not aware of its damage on the customers’ end. Making customers wait has always been said to be financially costly, but just how much do customers really lose because of slow service? ClickSoftware, a workforce management solutions provider, aimed to find out through an online survey they conducted on American consumers on May 2014. Here are some of their findings:

Americans lose $108 billion annually due to slow customer service

female-customer-losing-money-while-being-on-the-phone-with-a-customer-service-agent--Open-Access-BPO-

How did the survey come up with this astounding amount? Out of the 2,051 respondents, 1,197 are employed and reportedly wasted an average of 30.8 work hours a year waiting to be served or get answers from service providing brand. Multiplying the wasted hours with the average hourly wage of $24.45, you’d get $753.06—that’s how much a working American loses in a year by waiting instead of working.

Since there are 144 million employed individuals in the US, multiplying the total number of workers and the yearly amount lost per person gives you $108 billion.

Explaining that the shortcomings from the service industry have massive implications, ClickSoftware President for North America, Steve Timms said, “Organizations that are taking measures to equip their workforce with tools and analytics to adeptly handle customer needs [have] a strong advantage.”

The following industries, in particular, should work on speeding up their service delivery. This is because of the time they consume from paying customers that people could ve spent on more productive activities at work.

• Banking (average of 6.0 hours spent dealing with a customer issue)

• Repair/Home services (5.3)

• Insurance (4.7)

• Automotive (3.7)

• Healthcare (3.1)

• Communication service providers (2.5)

• Public Sector (2.2)

• Retail (1.8)

• Utilities (1.5)

“The findings show people want first rate service, they won’t pay extra for it, and more than a third will sever ties if they don’t get it. Businesses need to realize the actual toll poor service quality takes and put a specific focus on optimizing their existing resources in order to more effectively serve their customers and improve their bottom line,” Timms added.

What can you do to improve efficiency?

customer-losing-money-while-being-on-the-phone-with-a-customer-service-agent--Open-Access-BPO_-

Thankfully, slow service is not a hopeless case. The survey respondents shared solutions that they want to see a business apply in order to lessen the amount of time they spend waiting to get service, answers, and solutions. Here are their suggestions, listed according to the number of votes:

• Provide more frequent and exact estimate arrival times through the customers’ preferred method of contact (52%)

• Show that they understand customers (49%)

• Give proactive updates on the progress of solving a problem (43%)

• Explain the full extent of the fixing process and the tools needed to fix the issue (39%)

• Provide more channels and opportunities to talk with service representatives (27%)

• Schedule appointments via phone (23%) and other methods (23%)

Which of these measures work for you? Do you have other practices that effectively speed up customer service delivery without sacrificing quality and results? Do share your tips or start a discussion about our topic.

JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO6 hours ago
China is the second-largest consumer market in the world. However, its strict business protocols make it difficult for many foreign brands to establish a local presence in the region. Open Access BPO 𝗫𝗶𝗮𝗺𝗲𝗻 enables businesses to penetrate and thrive in the billion-strong Chinese global market.

Open Access BPO's expanding campus in Xiamen offers #CustomerSupport in Chinese dialects including Mandarin, Hokkien, and Cantonese.

𝗣𝗲𝗻𝗲𝘁𝗿𝗮𝘁𝗲 𝘁𝗵𝗲 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗮𝗻𝗱 𝗲𝗻𝗵𝗮𝗻𝗰𝗲 𝗰𝗹𝗶𝗲𝗻𝘁-𝗰𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀: https://buff.ly/3WVldvs

----------
𝗘𝘅𝗽𝗹𝗼𝗿𝗲 𝗢𝗽𝗲𝗻 𝗔𝗰𝗰𝗲𝘀𝘀 𝗕𝗣𝗢
• Our Solutions: https://buff.ly/3XOmOEt
• Our Other Locations: https://buff.ly/3XRmtRt

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO9 hours ago
Open Access BPO's standard recruitment is a seamless process, from job announcement to contract signing.

Here are some of our recruitment best practices: https://buff.ly/3HkhKRs

---------
We hyper-customizable solutions that fit your needs—from staff to its everyday ops: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO1 day ago
Compared to most industries, #CallCenters are known for providing a fun and positive workplace for their employees.

But more than just making daily ops light and dynamic, the agents, the contact center, and the clients benefit from this: https://buff.ly/3kIaKWM

----------
Let's hyper-customize a program for your brand's goals, needs, budget, and customer demands: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerService #EmployeeEngagement
Open Access BPO
Open Access BPO1 day ago
Keeping your customers' data secure is one of the best ways to earn their trust.
Here's an in-depth look on how it can be achieved: https://buff.ly/3HjQYIK

----------
Only trust an #outsourcing firm with a robust #DataSecurity strategies and solutions to ensure #InformationSecurity: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#cybersecurity #infosec
Open Access BPO
Open Access BPO5 days ago
#𝗗𝗮𝘁𝗮𝗣𝗿𝗶𝘃𝗮𝗰𝘆𝗪𝗲𝗲𝗸 aims to raise awareness about #DataSecurity and privacy and how we all must be mindful of what we share online. Let's stay vigilant against malicious activities that may exploit our information.

#WeSpeakYourLanguage
#InfoSec #DataPrivacy
Open Access BPO
Open Access BPO7 days ago
#CustomerService providers have the responsibility to protect their partners against data intrusions that may interrupt operations and steal sensitive information. If your

Check out these best practices for protecting your data: https://buff.ly/3Jj7cEV

----------
Ensure utmost #InformationSecurity for your customers with our #DataSecurity strategies: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#InfoSec #DataManagement
#DataPrivacyWeek
Open Access BPO